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 supporting the position of thecompany.

Answer & Explanation Solved by verified expert
4.3 Ratings (1077 Votes)
This condition in South Africa is critical and implementation of a a strong structure of drugs is required As the company operating in the respective environment and producing these drugs providing subsidy or any other specific benefit to the the specific location is very hard Argument supporting the position of the company are as follows    See Answer
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