BGMT Disc ***Zeek the Geek***

LEARNING ACTIVITY 2

Joshua: LA2

The American Healthcare industry to include insurance companies, hospitals, and pharmaceutical companies are failing in corporate social responsibility. Numerous examples in the news today put these healthcare sectors in the negative spotlight. Most recently, Heather Bresch, CEO of Mylan, an EpiPen manufacturer, announced that the life saving allergy injector rose in price over 600% since the patent was acquired in 2007 (Rose, 2016). After the company's only generic competitor was unexpectedly denied by the FDA, Mylan had a monopoly in the pharmaceutical market for the EpiPen (Rose, 2016). This dramatic price increase has even caught the attention of U.S. senators and congressmen who questioned Bresch at a public congressional committee (DiPietro, 2016). Also, Martin Shkreli, former CEO of Turing Pharmaceuticals, was questioned by congress about his company's 5,500% price hike on drugs to treat taxoplasmosis (Mangan, 2016). Both of these are examples of companies that try to put the blame of the price hikes on what "fair market value" actually is. When in reality, the real losers in this scenario are the same people that these drugs are made to help. But when the people who need these drugs can't afford them, everyone suffers because of the Affordable Health Care Act; those who can't afford this expensive healthcare, are supplemented by the rest of American taxpayers' insurance costs. 

The VA Healthcare system has also shown a lack of social responsibility numerous times in the last few years by falsifying waiting lists, mismanaging budgets, and denying patient care to the point of patients dying due to lack of care (Boyer, 2016). 

The lack of social responsibility in the American Healthcare system needs to be addressed immediately. U.S. lawmakers need to step in and force change that promotes people's needs first before anything else. It seems to me, that these examples unethical behavior all stem from greed. Greed to squeeze every last dollar out of people's pockets, or the pockets of the individual's insurance provider. Hospitals are worried about their bottom line and pharmaceutical companies want to squeeze every dollar they can while they still hold patents for their medications. Yet, nobody seems to be interested in the one thing that they are in business to do; and that is to help people get better.  

Boyer, D. (2016, April 3). VA still plagued by problems two years after scandal. Retrieved October 03, 2016, from http://www.washingtontimes.com/news/2016/apr/3/va-still-plagued-by-problems-two-years-after-scand/

DiPietro, B. (2016, September 06). Crisis of the Week: Mylan Battles EpiPen Price Hike Criticism. Retrieved October 03, 2016, from http://blogs.wsj.com/riskandcompliance/2016/09/06/crisis-of-the-week-mylan-battles-epipen-price-hike-criticism/

Mangan, D. (2016, June 03). Martin Shkreli hit with additional charge in fraud case. Retrieved October 03, 2016, from http://www.cnbc.com/2016/06/03/martin-shkreli-hit-with-additional-charge-in-fraud-case.html

Rose, J. (n.d.). How Much Did The EpiPen Price Increase? It's More Than Doubled In The Last 3 Years. Retrieved October 03, 2016, from https://www.romper.com/p/how-much-did-the-epipen-price-increase-its-more-than-doubled-in-the-last-3-years-17127

Golfam LA1:

The social responsibility of business is to increase its profits.” (Introduction to Strategic Management, 2014). More than a quarter of century ago, Milton Friedman argued this statement. Today, on the other hand, we believe that serving other stakeholders beyond the owners and shareholders can be a powerful, inspiring, and successful motivation for growing business. The sense of social responsibility will allow firms to grow while socially responsible. It’s a win win! The firm will earn the loyalty of more customers, at the same time will show respect to the society.

Life is good is apparel and accessories retailer that promotes optimism. The company is well aware of the fact that people have the option to purchase t-shirts, hats and other accessories from other retailers. Therefore, it is important for the company to be able to showcase themselves as a unique retailer compared to others in the industry. Life is good should be able to convince people that their items are unique compare to competitors as they promote optimism. “A focused differentiation strategy requires offerings unique features that fulfill the demands of a narrow market” (Introduction to Strategic Management, 2014). This indicates that the best strategy for Life is good, is a focused differentiation strategy. This company has a narrow market because not every single person cares spread optimism. Some people would rather save a few dollars at a competitor’s store than buy from this company and spread a message. It is important to narrow down the target market so that the company knows exactly whom to advertise to.

It is important for every company to be socially, ethically and financially responsible. This company is already ahead of the game when it comes to social responsibility. This company is based on spreading optimism and that makes them socially responsible. For example, one of the videos was about a woman who randomly inserts coins in parking tickets that are about to expire. A quarter would not make her poor or rich, but the gesture goes a long way.

This company is all about being optimistic and good deeds. Ethically responsible companies, treats their employees with fairness, treat customers with fairness and overall make ethically correct choices every day. A company like this can prove its ethics by being honest and making ethically correct choices. For example, instead of paying actors to create videos for promoting their business, they can use real footage from real people to inspire others.

Being financially responsible will not only benefit the stakeholders, but it will also benefit customers. When companies operate financially responsible, no penny is lost, therefore the cost decreases allowing the company to have a higher profit, lower cost and it can even give back to the community by donating money.

Reference

Unknown (2014).  Introduction to Strategic Management.  Washington, D.C.:  The Saylor Foundation.