Document Type

Article

Publication Date

Spring 2-22-2025

Abstract

The opioid epidemic, particularly in the Appalachian region, has revealed significant ethical dilemmas in the pharmaceutical industry, notably the role of companies like Purdue Pharma in exacerbating the crisis. This paper examines the ethical responsibility of pharmaceutical companies within the context of the opioid crisis through the lens of Utilitarianism, which advocates for decisions that maximize the overall well-being of society. The analysis argues that pharmaceutical companies should prioritize public health and societal well-being over profit maximization, as guided by ethical frameworks like Utilitarianism and corporate social responsibility (CSR). Despite the economic argument for maximizing profits, past cases like Purdue Pharma's deceptive marketing of OxyContin illustrate the severe societal impacts of ignoring ethical obligations. The paper contrasts this with Milton Friedman’s shareholder theory, which emphasizes profit over social responsibility. Ultimately, the paper asserts that adopting a Utilitarian approach not only aligns with ethical business practices but also enhances long-term business success by fostering trust, sustainability, and building a good reputation. By prioritizing the greater good, pharmaceutical companies can both contribute to public welfare and achieve lasting financial success.

Keywords: Opioid crisis, Appalachian region, Utilitarianism, corporate social responsibility (CSR), Purdue Pharma, shareholder theory, profit maximization

Course Level

BUMG 6100: Regulations & Ethics in Business

Advisor

Claudia Hanrahan, PhD

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