Pharmaceutical Company Case Study

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1. Pharmaceutical companies have a reputation for unfair trade practices. Offering commissions, gifts, sponsorships and similar incentives is a common practice to drive up their sales in this competitive industry. The key responsibility of a sales rep is “Responsibility for developing the maximum profitable sales of the company’s products in the assigned territory through full coverage of all contacts and by becoming a value-added partner to the health care professionals. ” So it is expected from a sales rep to use necessary measures to increase company’s sales, meet their target and maximise their commission. It can be debated that the measures adopted by sales rep are ethical or not, however in this case there is a clear breach of ethical principles to which a sales rep should abide by. Influencing the distribution channel executive to inflate cost to cover up the extra 2% commission needed to be paid to the dealer is not at all justified even if the company’s sales increased. What could have been done is, the sales rep could have convinced the…show more content…
As betting is ethical but betting with match fixing is unethical, in similar lines if it can be proved that the president of Cricket Control Board (CCB) did favours to the son-in-law or had any influence in making his son-in-law the prime sponsor for the team then, yes the president is guilty of unethical practices of misappropriate use of his power. In any organisation, if the family relation of the employee with a higher ranked official of the company bears no influence on the working of the employee, then the higher ranked official could / should not be held liable for the employee’s actions on family / relationship grounds. In this case if the past relationship between the president and son-in-law has been strictly professional, then there is no breach of ethics. However the president could be held liable on legal grounds of vicarious liability for the actions of his subordinates independent of the family
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