Question

Sparrow Pharmaceuticals is the maker of several popular drugs used to treat high blood pressure and arthritis. Over time, the company has developed a positive relationship with many of the patients who use its medications through a quarterly newsletter that offers the latest information on new medical research findings and general health and fitness articles. The company just has been acquired by a group of investors who also own Soothing Waters Hot Tubs and Spas. The marketing director for Soothing Waters would like to use Sparrow’s mailing list for a direct-mail promotion.
Can the answer please be provided in detail 400 words or more thank you so much

Ethics Questions:

What should Sparrow Pharmaceuticals do?

Do you think it is ethical to use customer information across multiple divisions of the same company? Explain.

To which marketing management philosophy do you think the marketing director for Soothing Waters subscribes? Explain.

Does the AMA Statement of Ethics address the use of the customer information by multiple divisions of the same company? Go to http://www.marketingpower.com and review the statement. Then write a brief paragraph on how the AMA Statement of Ethics relates to Sparrow Pharmaceuticals’ dilemma.

Answer 1

Sparrow Pharmaceuticals is a separate company from Soothing Waters and thus, Sparrow should not allow Soothing Waters to use the mailing list for promotion of its products. It would be unethical to allow another organization to take the patients information of Sparrow Pharmaceuticals for promotional purposes.

No, it is not ethical to use the personal information of customers of one division from another division. This is because the customer information is particular to a division should not be allowed to be used by another divisions without the permission of the customers. Thus, use of customer information of one division to another division without the permission of the customers is unethical.

The management of Soothing Waters do not subscribe to ethical aspect of management otherwise it would not have taken the customer information of Sparrow for the promotional purposes. The management subscribes to aggressive management philosophy which is only concerned about business aspect of an organization.

The AMA statement of the company does not mention that the customer information of a division of the company will be used by other multiple divisions without letting the customers know about that fact. It is important that AMA statement mentions all information about the fact that the multiple divisions of the company will used the customer information of Sparrow Pharmaceutical division for promotional purpose of Soothing Waters.

An organization is bound by ethical norms and must follow the ethical guidelines in its practices. Use of customer information of Pharmaceutical division for spa and bath is obviously not ethical from any stretch of imagination. It is important note disclose the confidential information of the patients to another divisions just for the sake of business. In case the management decides to use the customer information of Sparrow for the promotion of spa and bath facilities of Soothing Waters then prior permission of the customers must be taken and only if such permissions given by the customers that the organization should use the information of the customers.