Page 81 - Case Lab Case Analysis

Case Rationale

This case study Phissons: An Ethical Dilemma is a teaching case based
upon a 1980’s British company which faced a similar dilemma.

The response by the CEO was to call an extraordinary special meeting,
before the launch, of the shareholders and to invite the press. The CEO
spoke for a short period and essentially said he was withdrawing the
drug. When questioned why he was withdrawing it he simply said that he
had children himself and would not be responsible for killing children.

The expected fallout should have been a share price collapse. However,
in the days that followed the meeting the companies’ share price rose –
it was seen as one of the first ethical companies and as a result
investors (institutional) wanted to be associated with it.

As an aside to the product withdrawal, the company had developed the
spin haler delivery system for the drug this development went on to
attain massive sales as it could be used for other drugs produced by
other companies.

Phissons is about Blackthorn and his ethical stance. His is a moral
dilemma and as CEO he is ultimately the one who must make the
decision on whether to launch or not.
Asking the board members for their opinions is laudable but this action
seems to indicate that there is no ethical policy in place to help guide
decisions.

Little to no information is given about the company and its performance
so some educated guesses need to be taken.