Document Type
Article
Publication Date
Spring 3-3-2025
Abstract
Pharmaceutical price gouging presents a significant ethical dilemma in Appalachia where economic hardship and high rates of chronic illness amplify its consequences. Those utilizing the utilitarian framework deem this issue as unethical due to the contradictory behavior of benefiting a small margin of individuals, shareholders, rather than the greater good. However, when taking this issue under a mindset like Milton Friedman's, price gouging follows all ethical codes by supporting a company's profit margins and shareholder's returns. Ultimately, this ethical dilemma is seen as unacceptable amongst many facets of ethical principles and can be argued as inexcusable in nature. For this paper, we study the frameworks of utilitarianism and Milton Friedman capitalist’s morality mindset. Utilitarianism is a strong advocate for negating the use of price gouging. While it presents the ideology of delivering the greatest good to the greatest amount of people, it will be seen through many case studies and research on how pharmaceutical companies are veiling themselves from this ethical framework. Rather, these companies are enforcing the capitalistic approach by utilizing Friedman's mindset of the company's only social responsibility being to make as much profit as possible. We conclude that utilitarianism is the lens pharmaceutical companies should be judged. Instead of allowing price gouging to be socially acceptable amongst these mega pharmaceutical companies, we argue that the lack of an ethical foundation is the root of the problem. As many Appalachian communities continue to be financially exploited, we propose that all pharmaceutical companies should develop a utilitarian complex and leave the capitalistic approach behind.
Course Level
BUMG 6100: Regulations & Ethics in Business
Advisor
Claudia Hanrahan, PhD
Recommended Citation
urban, lexy; Ramirez-Vazquez, Elkin; and Parker, Derrick, "The Ethical Implications of Pharmaceutical Price Gouging in Appalachia" (2025). Business Ethics. 18.
https://digitalcommons.shawnee.edu/business_ethics_3100/18