An allergy-reaction device known as an EpiPen not only holds the power to save lives, but holds the power to exploit buyer’s essential needs. According to Fortune Insiders article “Mylan EpiPen Pricing Crossed Ethical Boundaries”, Mylan, an EpiPen company unethically increased its price of product from $100 to $608 within a timeframe of 2 years. From a business perspective, an increase in revenue like such is seen as impressive, however from a consumer’s point of view, it is seen as selfish as Mylan is profiting from exploiting the necessities of others.
~EpiPen’s packaging~ https://www.statnews.com/2016/07/06/epipen-prices-allergies/
Therefore, the rise in price of this life-saving tool supports Friedman’s theory that “The Social Responsibility of Business is to Increase its profit”. If Mylan’s root intentions were to save lives, a “six fold price increase” would not have occurred. By capitalizing on the fact that the demand of EpiPens would be constant due to its limited shelf life, Mylan abused its power by increasing its prices. It’s unethical pricing proves that the business’ true intention were to profit and not address health needs. Consequently, this damages the integrity of the company as consumers have a negative perspective of the company’s objective. As a result, marketing, a business specialization which will be discussed in Comm 101 can be utilized to rebuild the relationship between the consumers and sellers of Mylan.
Moreover, as a near monopolistic business, Mylan did not require the need to increase its price to benefit, however by doing so, its margins of profit have dramatically increased as people who require EpiPens will still buy them. Therefore, a substitute product could limit Mylan’s abuse of power of increasing price. If this product was in a competitive market, it is probable that the potential of Mylan losing its customers to cheaper retailers would increase.
~Epipen’s rise in price~ http://fortune.com/2016/08/24/mylan-ceo-epipen-heather-bresch/
Despite being deemed as unethical to society, Mylan’s increase in price for EpiPens does follow the basic laws and ethical customs discussed by Friedman. Mylan’s increase in price was transparent for consumers and was done in a legal way. However, it’s reason to increase price was unethical. Therefore, Mylan’s tactic to increase prices catered to the best interest of the seller and in turn negatively affected those of the buyer. Thus, the increase of price for EpiPens supports the premise that a business’ primary objective is to profit instead of upholding any social responsibilities.
In my opinion, the best solution to reduce the repercussions of a price increase would be to survey the group of consumers of the product and to find an equilibrium of accommodating the needs of the seller and those of the buyer. Ultimately, in order for a price increase to be ethical, it must benefit both the interests of the business and the consumer.
Word Count: 439