The Business Enterprise Trust

Case Study Assignment #2
Name
Institutional Affiliation
Course name & number
Professor
Due date
Q.1
Roy Vagelos should consider the problem from a business ethics perspective. According to Trevino & Nelson (2021, pp.14-16), business ethics is the study of moral rights and wrong that governs organizations, business entities, and activities as they produce and distribute goods and services. In this case, he would have to weigh the ethics of developing a drug that benefits over 100 million people, knowing it was less likely to make profits for the company.
To frame the problem, Vagelos could define River Blindness as a significant health problem affecting about 85 million people who are worth saving (The Business Trust, 1991, pp.87). Merck would have to use over 100 million dollars to develop the Ivermectin drug, saving millions of people. Also, the drug would benefit stakeholders by the company developing a good reputation for caring for a marginalized population worldwide.
Q.2.
Merck should do something. The company’s value position encouraged its scientists to consider their work as a quest to ease human suffering and diseases worldwide (The Business Trust, 1991, pp.90). Also, their corporate social responsibility mandates them to enhance various aspects of society, such as promoting human rights and offering discounts on their medical products to developing countries (Lindgreen & Swaen, 2010, pp.1-2). Its knowledge of the drug created an obligation to act as River Blindness condemned and would continue to condemn millions to intense suffering. Hence, ignoring the discovery would be inhumane and against their core values for profits. Additionally, their obligation to ease people’s suffering meant ensuring they created the drug at whatever cost, even as high as 200 million dollars.
Q.3
Vagelos should put the following into consideration before arriving at a decision. How much the research and development of the drug will cost, and its financing. The development timespan and what he can sustainably achieve and ensure effectiveness? He needs to consider how the drug will be disseminated to the affected populations, who will buy it, and how to avoid it ending up in the black market. Also, evaluate the overall benefit to the organization.Vagelos will also have to consider the vested interests of investors, shareholders, the corporate board, and management in participating in a non-profitable venture and how it will create value for them. He must consider how suppliers will be paid and ensure employees enjoy job security (Bosetti, 2019, pp.69-70). When it comes to him, he has to consider his job security if he chooses to develop the drug with millions of dollars that ...