Page 553 - The Case Lab Book
P. 553
Ethics
Blackthorn is the decision maker and he has responsibility to both
Shareholders – for profits and dividends
Customers – provide good quality products
at reasonable prices. Safety, honesty,
decency and truthfulness
However, his decision is essentially a personal one. No matter how much
information he gathers his decision is unlikely to be based on the Spock
principal.
Business is about perception and Blackthorn will be aware that should his
decision say, to launch were to get out the perception of Phissons would be
that this was a company which put money above the lives of children.
On the other hand if he withdraws the drug the company will be seen as an
ethical one.
The Actual Answer
The company this case study was based on was Fissons plc, the agro
chemical company who in the 1980s developed proxychromil an asthmatic
drug and the spin-haler for its delivery.
The situation as portrayed was close to the actual one facing the then
CEO.
His solution to the problem was essentially to call an extraordinary general
meeting to announce the withdrawal of the drug. His rationale was that he
was himself a father and could not morally be party to the deaths of
children.
Expectation was that the share price would collapse jeopardising the future
of the company and the position of the CEO. However, two things
happened
