Case Study On Legal And Ethical Considerations In Marketing Term Paper

Length: 9 pages Sources: 5 Subject: Business - Advertising Type: Term Paper Paper: #54101625 Related Topics: Case Formulation, Shoplifting, Fda, Copyright Law
Excerpt from Term Paper :

¶ … Marketing, Product Safety, and Intellectual Property

Business ethics have become an increasingly essential requirement for firms, especially with the ongoing situation of globalization of the world economy. In the long run, corporate-to-corporate ethics of suitable behavior influence the achievement of businesses in a positive way, or have the power to greatly impact the behavior. As a consequence, the downfall of ethical disgrace has appeared both in Europe and in the United States of America. Important lessons can be learned from the corporate ethical downfall that vividly reveals the need and significance of business ethics (Perry-Green, 2013).

According to dictionaries, ethics relate to those issues associated with the common nature of morals, and of the particular moral preferences to be made by an individual. Simply put, ethics are obtained from an individual's moral values. Personal values and beliefs constitute a considerable segment of any debate concerning ethics. Ethics can be altered, shaped, and/or manipulated by an individual's family values, social education, educational framework, religious practices, personal necessities, and professional activities. In the case of pharmacists, the major motivation for ethical conduct should be professionalism. There might be no universal standard on the code of ethics of pharmacist, but every country possesses a collection of regulations on the code of ethics or conduct for its pharmacists. Every nation's pharmacy expert board or council has or will implement a code of ethics or conduct to protect the profession (Noordin, 2007).

Both ethical and legal considerations are feasible components in marketing, scholarly property, and product security. However, there continues to be one erratic and covert element that cannot be managed by every organization, the employee. Ethical or unethical conduct is not completely a subject of the worker's nature; it is influenced by several factors. Workers are manipulated by the forces that surround them, their colleagues, their bosses, the payment system, company values and policies, and group norms. In this particular assignment, we shall revisit the PharmaCARE organization and how both ethical and legal considerations influenced their decision making in marketing, intellectual property of AD23, and product security.

1. Ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety and examine whether PharmaCARE violated any of the issues in question.

There are several ethical matters associated with advertising and marketing, intellectual property, and management of product security / safety. We shall closely look at few of them and how these possess common feature which must be entailed for a company to possess a robust ethical and legal relationship.

Ethical issues in Marketing and Advertising

Each aspect of the marketing/advertising combination of a firm is subject to various laws and restrictions. Marketing directors routinely face challenges on how to deal with legal and ethical issues. As well, it is likely that each and every marketing director realizes that 'cut-and-dry' solutions to emerging ethical matters in the usual path of business are not easily found (Lamb, McDaniel, & Hair, 2010). A particular ethical issue related to marketing is how to be socially conscious. In the process of marketing and advertising an item to a certain group, there ought to be ethical considerations of the manner in which this will influence the individuals being targeted. Is our advertisement likely to be perceived as stereotyping? Is this actually insulting to a certain group? Is it culturally sensitive? A marketer or advertiser should answer these among other ethical issues (Lamb, McDaniel, & Hair, 2010), including: What are possible outcomes, and how wide-ranging might they extend? What is the chance of a harmful result? What is the overall nature of company responses to potential and/or ongoing ethical issues within the company? Each of these is a legal and perhaps logically expected question that should be considered in terms of social accountability in marketing and advertising (Perry-Green, 2013).

Ethical issues on intellectual property

A familiar type of intellectual...


To copy something and create some profit through the selling of this product is analogous to shoplifting. An individual can come up with an original work; this work inevitably has a copyright to the owner/originator. Copyright ownership refers to the specific work and definite right for the owner. Research has resulted in a list of data appropriate to retain copyright security: sound recordings and musical compositions, printed works (books, articles, musical compositions, and lecture notes), audiovisual works (movies, online videos, and television shows), computer software and videogames, dramatic works (musicals and plays), and visual works (advertisements, posters, and drawing) (Brown, 2014).

Ideas, procedures, and events are not included in copyright law. For copyright protection to be considered, both the creative and moving components ought to be fixed in a physical medium. Title(s) and names only are not subject to copyright protection. In this view, ethical matters concerning management of product security may be the best example for drug organizations. The most significant illustration is one that happened in 1938, where 107 children passed away as a consequence of providing inaccurate data. After these happenings, product security is now a compulsory obligation for organizations. Nevertheless, there has not been any significant accomplishment addressing management of product safety. In the current world, however, it is now more efficient to safeguard customer rights via management of product security (Eroglu, 1996).

Ethical Issues in the regulation of product safety

The primary ethical practice of all businesses is to make sure that they provide quality products and services while practicing social responsibility to the customer. Product security engineers are supposed to establish the safety of products, obtain agency certifications for the products, and inspect and assess the products with reference to certain standards. This is the point where a person's, and/or company's ethics can be put to test. As was learned earlier in the CompCARE situation, safety engineers became conscious of the problems involving the product; however, management overlooked the potential risks in favor of the large monetary compensation and corporate gains of PharmaCARE. It has been realized that we should concentrate on greater standards of product safety, for instance, not permitting the product to be produced in nations where we cannot manage the facility conditions (Perry-Green, 2013).

2. Argue for or against Direct-to-Consumer (DTC) marketing by drug companies. Provide support for your response.

Direct-to-consumer (DTC) marketing by organizations should not be permitted. Several issues have emerged due to DTC advertisement of prescription medication. One reason for arguing against DTC is that this approach may impact the investment and/or support of certain drugs by the federal government, consumers, and insurers, without clear-cut data verifying sufficient advantages to justify the expenditures. Specifically, some observers are concerned that DTC advertisements encourage a broader use of particular drugs than their health benefit warrants. Another reason is that DTC advertisements for newly endorsed medications may result in use of these drugs in circumstances or by individuals whose possible risks were not totally known and/or considered in the drug approval process. Those worries have fueled present proposals to suspend advertisements of brand-name prescription medication to consumers during the initial two years following a drug's approval by the Food and Drug Administration (FDA)"(Elmendorf, 2011) (Brown, 2014).

3. Parties responsible for regulating compounding pharmacies under the current regulatory scheme 'Compounding pharmacies' are those pharmacies where a licensed physician or pharmacist (or in case of an outsourcing facility, an individual under the direction of a licensed pharmacist), mixes, combines, or changes a particular drug's ingredients with the goal of preparing a drug designed for the needs of a particular patient. Compounded medications are not FDA-authorized. This implies that FDA does not validate the security or efficiency of compounded medications. Both healthcare experts and consumers depend on the drug authorization procedure to guarantee that medications are efficient and created according to the Federal quality standards (The Food and Drug Administration).

Actions that either these parties or the FDA could / should have taken in this scenario

As previously learned in assignment two situations, PharmaCARE, so as to evade FDA inspection, created a completely-owned subsidiary, CompCARE, to function as a compounding pharmacy to provide the new formulation of AD23 to people on a prescription foundation. CompCARE put up a shop in a suburban office park close to the headquarters of its patients. So as to save both money and time, it carried out a rapid, low-price repair and chose Allen Jones to manage the operation's "clean room." Compounded drugs do not have an FDA finding of production quality prior to the marketing of such drugs. For instance, defilement of medications compounded under section 503A, or deceiving statements in the advertisement or branding of such medications, might lead to breach of the Federal law. Companies which register with FDA as outsourcing amenities under section 503B shall be controlled by FDA and scrutinized by it also in accordance to a risk-founded program. This illustration, given by the FDA is a case of how PharmaCARE escaped investigation. Even though technically the firm ought to have been scrutinized by…

Sources Used in Documents:


Brown, K.C. (2014). Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property. Morrisonville: Strayer University.

Elmendorf, D. (2011). Potential Effects of a Ban on Direct to-Consumer Advertising of New Prescription Drugs. Retrieved from prescription drug:

Eroglu, L. (1996). Drug research, ethic rules and regulations. Security period, pp. 1-6.

Federal bureau of Investigations. (2013, April 23). Branch Man Pleads Guilty to Theft of Intellectual Property. Retrieved from
Keeping Watch Over Direct-to-Consumer Ads. (2013). Retrieved from The Food and Drug Administration:

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