Question

In: Operations Management

Sandoz Nutrition Corporation is a subsidiary of the Swiss pharmaceutical giant, Sandoz Ltd. Sandoz, based in...

Sandoz Nutrition Corporation is a subsidiary of the Swiss pharmaceutical giant, Sandoz Ltd. Sandoz, based in Minneapolis, Minnesota, began manufacturing Optifast 70, a liquid meal-replacement weight loss program in 1976. The six month program is designed for people who are at least 30 percent or 50 pounds over their ideal weight. Health problems often accompany excessive weight. Optifast provides an opportunity to get rid of the weight fast.

The Optifast program is only available through doctors, hospitals, and medical clinics; a prescription is required to purchase the products. The Optifast program typically begins with the patient being placed on 420 to 800 calorie diet per day of liquid protein for 12 to 16 weeks. Calorie intake is then increased to 1000 or 1200 calories per day for the remainder of the program. The total cost is between $1400 and $2800. Optifast sales grew slowly following its introduction as the medical community and consumers became aware of the program. Sales continued to build slowly until mid November1988. Then Oprah Winfrey announced on her TV talk show that she had lost 67 pounds using Optifast. She appeared on the program in size 10 jeans to prove her point. Here was a celebrity endorsing Optifast without being asked for or paid! Within hours Sandoz received more than 200,000 phone inquires about the Optifast diet program.

The firm does not publish sales figures, but they forecasted a sales increase of from 25 to 30 percent during the six weeks following Oprah’s announcement. In 1989 Sandoz launched a print advertisement program, mostly in professional journals. Its promotional brochure and ad claims included: (1) “ The one that’s clinically proven safe and effective” and (2) “You can call the Optifast program today, and have all you need to control your weight for the rest of your life.” Unfortunately for Oprah, she regained 17 pounds during the first year after she completed the Optifast program. Studies at the University of Pennsylvania suggested that people who undertake quick weight loss programs such as liquid diets are likely to experience weight rebounds. Studies at the University of Michigan indicated that as many as 90 percent of dieters regain weight within five years after losing it. Liquid diets have also been linked with dizziness, headaches, nausea, gallbladder problems, and irregular heartbeat. Thus, there appears to be some difference between claims and use experience.

Questions:

  1. Were any ethical norms or principles violated by Sandoz?
  2. Are liquid diet products ethical products? Justify your answer
  3. What moral responsibility might Sandoz have considered when developing its promotion messages for the customers?

Solutions

Expert Solution

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a. Were any ethical norms or principles violated by Sandoz?

Yes, Sandoz has broken ethical standards or values by implementing a nature-exaggerating advertisement campaign. Commercial brochures confuse consumers and giving a misleading image of the drug by implying that the substance is scientifically tested and healthy to use when evidence has related the use of liquid diets to different problems such as dizziness, vomiting, and na. Thus the drug is not safe to use in actual, which is why it falsifies the argument. In fact, advertising campaigns also say that consumers can monitor the weight of Oprah Winfrey's incase for the remainder of their lives that has not proven true. Sandoz has also used bluff tactics to draw consumers by advertising the usage experience of a drug which is not real because Oprah has gained 17 pounds in the first year since finishing the Optifast project.

b. Are liquid diet products ethical products? Justify your answer.

No, liquid diet foods are not ethical items because liquid diet foods do not support the body's general production and growth and do not have the rur quantity of nutrition that solid diets offer. Liquid diets do not have all the necessary criteria of the body's healthy diet for its j-nutrition. The repeated or heavy use may cause problems with heath. Moreover, since liquid diets are often associated with dizziness, vomiting, nausea, trouble with the gallbladder and irregular heartbeat, this can be considered an immoral drug.

c. What moral responsibility might Sandoz have considered when developing its promotion messages for the customers?

In his advertising strategy or ads, Sandoz owes the social duty of focusing on the actual reality by giving clear perception and emphasizing all the possible or future issues associated with using Optifast system and adopting a liquid diet; Instead of exaggerating the statements in its brochure, it should have been frank with consumers about its short-lived impact and the possibility of a gradual recovery of weight during the diet plan. Sandoz should have made no false statements given his personal obligation to the candidates' welfare. His sales video was meant to have simply listed real reality and given consumers the possible chance of regaining weight.


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