Deviance In The Corporate World
Essay by 24 • April 8, 2011 • 2,203 Words (9 Pages) • 1,587 Views
There is much deviant behavior in the corporate world that is both harmful to the individual and the public at large. Examples of such behavior includes cutting corners to make an extra dollar, ignoring worker's safety and benefits, or advertising products to be ideal when they can be harmful in various ways. This essay will outline four major industries in the corporate world that have either engaged in deviant behavior in the past, or continue such activities today.
One such deviant industry in the United States is the 77 billion dollar pharmaceutical industry that takes up roughly ten percent of all the medical costs in the United States. In 1992, this industry recorded 10 billion dollars in profits on 76 billion dollars in sales. This is a 13 percent profit margin. With the continued growth in population and the increasing age of the baby boomer generation, profits must continue to rise. These companies claim that it costs approximately 230 million dollars to bring a new drug to the market, however many remain skeptic and believe the real reason for such cost is strictly profit margins.
Drug companies differ from other buyer-seller relationships in the business world. As far as selling medication goes, the decision of purchase is not made by the buyer; but rather remains the prescribing doctor's discretion. Many pharmaceutical firms pay thousands of dollars to doctors in order to convince them to prescribe their drugs. In the office, doctors only prescribe what they know best, therefore drug firms do all they can to familiarize doctors with their own expensive brand name medications. One of the problems with this trend is that some of the drugs these companies are pressing upon doctors actually contain the same chemicals as generic drugs. Yet many of these major pharmaceutical companies claim their higher price is justified.
In 1978, ABC's 20/20 investigative news television program visited the Mylan Pharmaceutical Company. While touring the facility, they came across an Erythromycin tablet machine. While observing pills in the completion area of the machine, 20/20 journalists noticed many of the pills being were being dyed different colors; some pink, others yellow and a number orange. The pills were all the same and later investigation showed they were being charged at different prices. This is only one of many examples of deviant behavior present in today's pharmaceutical companies.
Another major concern of many U.S. citizens is what to do if their insurance company ever tells them they can no longer receive the Medicare they require. People in the United States are continuously denied the medical insurance they need no apparent reason what so ever. Insurance companies can refuse taking on new clients if there is as much as one flaw in their medical histories. When an individual is insured and is unfortunate enough to undergo a surgery, insurance companies will conduct investigations in order to try and find something that person didn't include upon signing up. Through any means necessary many of the health insurance companies of America try their hardest to deny people the care they need. The less they have to spend, the more money they get to make. Some Canadians don't even want to go on a vacation to someplace in the United States without purchasing health insurance for the trip first. A single accident could ruin one's financial standing for the rest of their life. Hundreds of people across the United States suffer and even die from not being able to afford the medication they need.
Misleading advertising is another major issue in the drug industry. In 1992, health professionals examined over 150 full page ads for drugs in various medical journals. Ninety percent of them violated the drug FDA standards in various ways. Companies wish to produce increasing amounts so that profits will inflate. Advertising is an excellent way to do this.
For most companies the goal is to sell the product, and if stretching the truth will do this, many companies will.
In the automobile industry, General Motors in 1929 did not want to include safety glass in Chevrolet trucks. Ford was already installing these newly discovered safety precautions and suggested General Motors do the same thing. However, GM declined that request by explaining that if the company plans to put money in to something new like that, they'll find better things to invest in. Due to profit, a greater risk of death and serious injury was looked past.
The automobile industry has continuously refused to use newer types of safety devices due to the outcome of possible affected sales. The government insisted that safety could be improved simple by adding a passive restraint such as an airbag as standard equipment. A study done by Allstate insurance revealed that airbags would reduce occupant crash deaths by 65 percent. If all cars had been equipped with airbags in 1975, there would have been about 9,500 less deaths in car accidents that year. An extra 104,000 injuries could have been prevented each year.
In 2005, the Food and Drug Administration (FDA) announced plans to go forth with an independent monitoring board which would oversee the safety of prescription drugs. This was because the FDA was delaying issuing labels for antidepressant medication that through research proves users in the early ages and late teens were most likely to commit suicide using them. Also, the FDA went ahead and approved the medications Vioxx and Celebrex. The two medications have been shown to significantly increase the chance of heart attacks and strokes for their users. It is estimated that with these two drugs combined, they are responsible for more than 55,000 deaths. When there was high demand for anti-depressants, the company wasn't going to put a halt on the production, rather bring a new board of people forward to track down hazards even though the company is already well aware of the ones that exist. The company would most likely do anything at all to prolong the income of those high priced medications.
The food industry is also in constant search for greater profit and often throws all health regard to the side. The four main problems with the heavily advertised food of today's market are the sale of adulterated products, the extensive use of chemicals addictives, the increased use of sugar and fats, and finally the sale of already known harmful products.
In the meat industry, there are many adulterated products, for example, the hotdog. By law the hotdog may contain 69% water, salt, spices, corn syrup, cereal, and then 15% chicken. That leaves a bit of room for other things to fill it including things such as, pig's eyes, stomachs, snouts, bladders and esophagus. Technically these are okay by law, so
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