Question

An ethical issue is one with an identifiable problem, situation or opportunity requiring an individual or organization to choose from among several actions that must be evaluated in terms of right and wrong. Ethics is therefore the study of right and wrong. You are asked therefore to consider the following scenario.

South Africa has one the highest AIDS population in the world and the great majority of the South African population is unable to pay for the viral drugs to combat the AIDS virus and the Government resources are stretched to the limit and they are unable to pay for drugs to make it available to the poor people of South Africa where the highest percent of the AIDS population exist.

In South Africa there is a company that manufactures the drugs to combat the AIDS virus. This company is a public company and raises its funds from shareholders who invest their money and is seeking a return on their investment. The company has had the experience in the past on one occasion where it did not perform well and their shareholders did not get a good return on investment causing many investors threatening to pull their investments, which would in turn cause the company to experience heavy financial losses and perhaps threaten its very existence.

The South African government has approached the South African company that manufacturers the drugs requesting that they sell the drugs below cost as well as donate some of the drugs to those who cannot afford the viral drugs because they are poor (which is by far the greater portion of the AIDS population). Without these drugs those people are almost guaranteed death.

The company has turned down the request of the South African government.

you are to present arguments that disagree with the position of the company.

Answer 1

We cannot accept this request as our company is already facing extensive loss us in the market and adding subsidy for providing the medicine at the lower cost then the manufacture would increase the level of of burden on our company by a huge margin which is not feasible at the current state. Another reason for not being able to support this cause is limited availability of the market and a consistent pressure of stakeholders for return on investment.
If our organisation provides low cost or or donates large level of medicine directly to the people then our organisation would be bankrupt and there would be no possibility of making these drugs that are essential for the society. Open the option that we could impose is is that the product must be subsidized by the government rather than mean subsidised by the company itself. This would provide better structure of support to the the people living in Africa as well as also increase our adaptability towards maintaining a profit generation organisation rather than a bankrupt organisation with no processing capabilities.

P.S.- please leave a comment if an explanation is needed.