Dewey Cheatham is the new Vice President of Marketing for a

Dewey Cheatham is the new Vice President of Marketing for a large online search engine company, Pottstown Innovative Enterprises (AKA, PIE). Dewey has been doing some research into how he can increase the Company’s revenues and thereby really impress the Company brass. During his research he came across an article about Brazilian pharmacies looking for an advertising vehicle to tap into the U.S. consumer market. Further research reveals that this could be a billion dollar venture and if PIE plays its cards right, it could make a substantial amount of money given its extensive advertising network. Dewey is super ecstatic about the possibilities and is salivating over what this could mean for his career with PIE.

          Before Dewey pulls the trigger on this, he decides to consult with his legal department. The legal department tells Dewey the following:

1. The shipment of prescription drugs from pharmacies outside the United States to customers in the United States may violate the Federal Food, Drug and Cosmetic Act and in the case of controlled prescription drugs, the Controlled Substances Act.

2. The FDA cannot ensure the safety and effectiveness of foreign prescription drugs that are not FDA-approved.

3. Imported drugs typically do not meet FDA’s labeling requirements and may not have been manufactured, stored and distributed under proper conditions; and may not have been dispensed in accordance with a valid prescription.

4. The government has historically been very lax in enforcing the laws in this area and legally there are a few gray areas; therefore the risk of any prosecution may not be significant.

After the consultation with Legal, Dewey is confused as to what his decision should be.   If you were advising Dewey on the ethical implications presented by this case, what would you say to him? Specifically, what ethical problems and issues do you see?

Solution

If I were to be a legal advisor to Mr. Dewey is that though the deal does seem lucrative it will effect his trust with the PIE. The reason I would tell him to think it over is because he does not know how well the drugs have been tested and though they might be cheap they don\'t meet the bar of the FDA and it will put his post and the company in jeopardy. It would lead the company to face litigations and even ethically is not correct to see that he get a temporary approval by the top brass and then be questioned on moral grounds knowing the fact that the drugs would be unapproved by the FDA.