An ethical issue is one with an identifiable problem, situation or opportunity requiring an individual or...

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General Management

An ethical issue is one with an identifiable problem, situationor opportunity requiring an individual or organization to choosefrom among several actions that must be evaluated in terms of rightand wrong. Ethics is therefore the study of right and wrong. Youare asked therefore to consider the following scenario.

South Africa has one the highest AIDS population in the worldand the great majority of the South African population is unable topay for the viral drugs to combat the AIDS virus and the Governmentresources are stretched to the limit and they are unable to pay fordrugs to make it available to the poor people of South Africa wherethe highest percent of the AIDS population exist.

In South Africa there is a company that manufactures the drugsto combat the AIDS virus. This company is a public company andraises its funds from shareholders who invest their money and isseeking a return on their investment. The company has had theexperience in the past on one occasion where it did not performwell and their shareholders did not get a good return on investmentcausing many investors threatening to pull their investments, whichwould in turn cause the company to experience heavy financiallosses and perhaps threaten its very existence.

The South African government has approached the South Africancompany that manufacturers the drugs requesting that they sell thedrugs below cost as well as donate some of the drugs to those whocannot afford the viral drugs because they are poor (which is byfar the greater portion of the AIDS population). Without thesedrugs those people are almost guaranteed death.

The company has turned down the request of the South Africangovernment.

you are to present arguments that disagree with the position ofthe company.

Answer & Explanation Solved by verified expert
3.7 Ratings (674 Votes)
We cannot accept this request as our company is already facing extensive loss us in the market and adding subsidy for providing the medicine at the lower cost then the manufacture would increase the level of of burden on our    See Answer
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