This blog is going to be a bit shorter than usual, but it will definitely make you think.
There’s a dark side to business in today’s world. Despite heavy regulatory pressure imposed by governments worldwide, there are many instances where companies with enough monopoly power indulge in unethical behavior, with aims to seize much larger profits.
Their typical excuse is that they have to stay in business, but is it really worth ripping off the consumer that much?For instance, a CEO of a pharmaceutical company called Martin Shkreli raised the price of its effective HIV drug by 5,500%. On top of this, there are other companies that buy out older drugs and then just raise the price. Cycloserine in an example; it is a drug used to treat tuberculosis.
This really makes us question the moral and ethical foundations of such firms, and of the business world in general. Aren’t we supposed to evolve from corporate social responsibility (CSR) to creating shared values (CSV)? And how can we even make that evolution if we can’t achieve the minimum level corporate social responsibility? We have reached a point where businesses in today’s time exploit the power they gain from creating unique cures to fatal diseases and allergies. They intentionally hold back the supply of these drugs to force their prices to skyrocket, enabling much greater returns. While these companies enjoy their glamorous profits, the consumers who suffer from these deadly sicknesses are forced to pay a price that they usually can’t afford, and have to make even more sacrifices than they already are making.
Another example of such behaviour was mentioned on Celine Liu’s Blog, where the author spoke about the sharp increase in the price of the EpiPen, which is a product used to treat severe allergies. Their prices shot up to $640 in 2016 form $100 in 2007, which is a 540% jump. I completely agree with the author’s opinion that “companies cannot take advantage of a condition that other people cannot control”. These firms need to be think less about monetary gains, and instead pursue sustainable and community-friendly growth.
Ultimately, it all begins with us, because in the end, businesses are just people. And it we can’t stop being selfish and money-minded, we will eventually fall down a very deep and dark hole that won’t be easy to get out of.
Word count: 394
References:
New York Times – Drug goes from $13.50 a tablet to $750, overnight.