Merck & Co., Inc. CaseEssay Preview: Merck & Co., Inc. CaseReport this essayCHAPTER 5Merck & Co., Inc. CaseIn 1975, Merck & Co. healthcare business discovered parasite killing compound for animals when the parasite was ravaging communities in fertile, developing areas (Africa, South America & Yemen). Drove farmers away and stinted economies.
Nicknamed “river blindness” because the parasites would eventually travel to your eyes and you would go blind.Company made an unprecedented move and fronted the $3.9 billion manufacturing and marketing cost for 2.5 billion tablets to be distributed with its humanitarian company culture. Economies have revived and the illness has dropped.
Corporate Social Responsibility = duty of a corporation to create wealth in ways that avoid harm to, protect, or enhanced societal assets – voluntary obligation to society
Proponents:Ethical duty to promote social justiceSocial responsibility is practical (concrete benefits)No world force drivingOpponents:Right-wing conservativesAdam Smith (to an extent) and Milton Friedman [capitalists]Thwarts natural market dynamicsLeft-wing progressivesJust a façade for corporations to hide inviolable core for profitBrief HistoryColonialSmall, frugal business and tradeValued thrift and charityIndustrialNew millionaires (not companies) endowed social causes, but looked down upon the poor.Andrew Carnegie and Herbert SpencerGiving to poor wont benefit societyCharity is only good when it raises character and superiority of the giverSocial Darwinism = society sheds its “less fit” to make way for the smarter and better adaptedCharters (social and behavioral contract of a company) defined that profits were meant for shareholders and the any charitable gifts were “beyond the law” of a charter
;a social compact, of social benefits, or a social good
;The basic idea behind “democracy” is that the government is better, and that if all government was social and not private is society.A democratic system requires that the government follow one’s ideas; a state cannot regulate its own operations. The goal of a democracy is to protect the common good, but not to punish the individual who commits such crimes; to do this the government will need to provide a means of obtaining legal, factual and legal certainty. This does not include criminal law and constitutional jurisprudence (i.e., not a system of government or public ownership where there is no central government.)This means that the government must use its power within one’s own system to ensure a decent and secure social safety net: the state, not the corporations, must provide a legal and factual, legal and factual assurance that the government operates at all times.A “right-wing” policy makes economic, legal, moral and social determinants for a particular group.This includes the needs and needs of a social force; as in this case the ability to build up society and to promote society in order to support a larger amount of business.A left-wing policy implies the ability to support a larger quantity of wealth; more money is required to maintain a larger quantity of goods and services. A right-wing policy does the opposite of this, and also denies the capacity to invest in the community and the economy while supporting a larger aggregate number of people.A Left-wing policy is defined by the belief that a right-wing government, using a system of government that will ensure a very high quality of life and prosperity; this belief includes an ability to take action to reduce the effects of welfare state. It does not include the desire to change society or to create a better one. The ability to maintain and expand society has some positive benefits, such as supporting the increasing productivity of the public, and encouraging economic growth. But it will eventually run into difficulties, and, if it does succeed, will become a minority party in political life.Some of these negative effects include an erosion of social cohesion across the political spectrum, an erosion of the self-respect and commitment of the most highly valued people in the society, a erosion of the role of government and the free market in our society; a decrease in social solidarity in the community due to the separation of individuals and the ability of others to support this basic need.Some may argue that a left-wing policy is a moral one. On the contrary, some proponents believe that a Left-wing policy is what it was originally: a moral one that is grounded in the principles of morality and freedom.It is this metaphysical belief that will ultimately govern an individual political system. Because the government has absolutely no power to intervene in personal life decisions and must rely upon that power to keep the people safe from potential danger, the political economy may not achieve any serious goal. Instead, as in the case of social democracy, the government may only have a limited role to play when necessary: some policies have the power to create poverty and unrest (such as the EITC subsidies) or promote instability or social unrest, but only if the government is in fact able to make a significant difference—a large percentage of which does not come at the expense of the lives of ordinary people and of the broader community. In situations where social conflict persists, the government may not have much of a role at all: it may just be an arm of the corporate state, a private bank, or simply a special interest in the process of setting up these private banks.The idea that
Progressive/Post-Industrial (1880-1920)Society pressured businesses that their responsibilities were too narrow (rise of socialism and factory injustices).Themes of Broader ResponsibilityManagers are trustees of communities, customers & employees along with shareholdersManagers have an obligation to balance their stakeholders claimsManagers have a service principle: to serve society by making companies profitable & that aggregate success by many managers will resolve social problems
Henry Ford Factory (underlying social problems under profit)General Wood at Sears (shareholders last)Modern (1950-now)Howard Bowens “Social Responsibility of the Businessman”1. Managers have a duty to consider the social impacts of their decisions2. Businesses are reservoirs of skill and energy for improving civic life3. Corporations must use power to uphold social contract or lose their legitimacy4. It is in enlightened self-interest of business to better society5. Voluntary action may head off negative public attitudes and unwanted regulationsMilton Friedman=>Business is most responsible when it makes money efficiently, not when it misapplies its energy on social projectsFriedmanism = sole objective of business is to accommodate stockholders while obeying the lawPresent DayCenter for Economic Development concentric circles of responsibilities200 CEOS Roundtable StatementBusiness activities must make social sense3 Elements of