ON TIME BUSINESS MANAGEMENT, A+ WORK, ON TIME, NO PLAGARIZING; ON TIME

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Peer Reply Guidance

· Reply to the main posts of two (2) different peers on different days throughout the week. Both responses should be original and substantive and encourage discussion and critical thought by proposing a different point of view or clearly elaborating on or asking an analytical  question about at least one (1) point of issue of your peer’s post, (Note: "what do you think?" "do you agree?" and the like, are not analytical questions.)

Respond to duval no more than 150 words

    I do not believe the public’s financial situation is solely X5RL’s problem, and the company should not be expected to abandon sound business principles simply because it developed a lifesaving treatment. Its past profits are likely part of what allowed it to fund research, absorb the financial risk, and develop the intellectual property behind this drug in the first place. If that model produced a major medical breakthrough, continued profitability may also help fund the next one.

            At the same time, X5RL has an ethical responsibility to consider access, especially when the treatment has such a significant impact on people’s lives. One way to balance those responsibilities would be through tiered pricing. The company could continue charging higher prices in markets that can support them while offering lower pricing in poorer regions where access would otherwise be limited.

            GSK provides a strong example of how a pharmaceutical company can incorporate access into its CSR strategy. The company identifies responsible pricing, strategic access programs, and partnerships as ways to make medicines and vaccines more widely available, particularly in lower-income countries (GSK, n.d.).

            What often gets missed in the broader discussion about healthcare costs is that there is not always one true price for a drug. Even in the United States, what is actually paid can vary depending on the insurance company, negotiated discounts, rebates, and whether the patient has coverage at all.

            If different pricing already exists within the current system, X5RL could use that same principle more intentionally as part of its CSR strategy to improve access for populations that cannot support the full price. The ethical goal should be to preserve the company’s ability to profit, innovate, and invest in future treatments while making sure pricing does not become an unnecessary barrier to essential care.

Respond to garrett no more than 150 words

Hi Class! Happy final week! 

This prompt comes down to whether it's ethical for a company to patent a lifesaving treatment and then use that patent to seek substantial profits. This practice basically bars lower-income individuals from accessing the treatment. From an ethical standpoint, I do not think this is acceptable. Legally, X5RL can do that and reap profits from the treatment. The public's financial struggles are not necessarily the company's responsibility, and because of the patent, X5RL may not experience financial consequences from setting prices above what many can afford, since there are no competitors and those who can afford would be forced to buy from X5RL. However, this is where corporate social responsibility (CSR) should be considered. CSR requires businesses to consider their impact on stakeholders beyond shareholders, including society as a whole. The principles of economic responsibility and legal compliance support X5RL's ability to earn profits and protect its intellectual property (IP). Ethical responsibility requires the company to consider whether its pricing practices could prevent patients from receiving lifesaving care. Philanthropic responsibility would encourage the company to participate in programs that make the treatment for accessible. X5RL should work with local governments and organizations to expand access and create a pricing structure that could better serve communities, while also allowing the company to recover L&D costs. This approach would allow the company to maintain its intellectual property rights while balancing profitability with social welfare. Insulin producers are an example of what can happen when affordability for the public is not considered. Insulin is essential for people with diabetes, but high prices and affordability issues have created lots of public criticism. Even when a company operates within the law, its decisions can still raise ethical concerns. As we've learned throughout the course, what is legal is not always ethical. When setting pricing for this kind of treatment, X5RL should think about what is fair, responsible, and sustainable. From a business standpoint, this might also fare well for the company as governments become more strict on healthcare costs.