Most brand name drugs and are priced extremely high although its manufacturing costs are very low, making it inaccessible to the impoverished. Pharmaceutical firms have monopoly power as their products are protected by patent, hence allowing them to have a high profit margin.
Currently, developing countries cannot afford drugs with its expensive price. Ethically, it is a basic human right to have access to basic goods. They should be available to the general public and those that are impoverished.
According to Friedman’s theory, the only social responsibility business is to earn profits given that they follow the law and basic ethical customs. If not, the corporations would be taking the function of a government through indirectly imposing taxes. They might not have the best knowledge or information to decide on the degree of the regulations.
Looking into Stake holder’s theory, companies should take into consideration the needs of not only stockholders but also Employees and Managers, Customers, Suppliers and the Host community in order for the business to succeed. But in the case of pharmaceuticals, I have to say it really doesn’t matter since it has monopoly power and people have no choice but to purchase from them.
In this case, the argument is two fold the pharmaceutical industry is important because it is a major source of medical innovation. Research is extremely pricey and it is through the prices of these drugs that companies are willing to take the risk to fund such researches.