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Ethics and Governance Jan 2018

ABD JABBAR MUKHLIS


1700230

Individual Assignment

Case of
The Contractual Quandary of Ethimo

By

[ABD JABBAR MUKHLIS BIN MOHD NOOR]

[1700230]

Ethics & Governance (IE5023/IE2001)

Date of Submission (28/02/2018)

Semester January 2017


Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230
Question 1

What do you understand by the relationship between ethics and the law?

Answer:

Generally, ethics is moral philosophy to determine and examine good and bad things. It is

a concept of moral principles that deals with what people think is good for individuals and

communities. Definition of law is a regulation or rules and guidelines which are enforced through

institutions like government to control actions and punishment mechanism.

There are relationship between ethics and law because laws are made based on ethics and

values in the communities. It can be different from places base on particular society. It is because

the basic behaviour of human beings also different. This means laws represent the standards of

human behaviours called ethical behaviour. Law and ethics provide individuals guidelines of what

may do or what may not do in certain condition. It is clear the relationship between ethics and law

exists. Ethics have an impact on what legal guidelines are set and this have an impact on is extra in

societies wherein the legal guidelines can comfortably be modified.

However, there are many different between ethics and laws but still have relationship for

each other. Firstly, ethics comes from people’s recognition of what is right and what is wrong even

as laws are written and permitted by means of governments. It way that ethics may additionally vary

from people to human beings due to the fact specific people may have exclusive critiques on a

certain problem, however laws describe genuinely what's unlawful regardless of how humans

arguing. Furthermore, sometime ethics is not well defined but laws are defined and specific. It can

also be distinguished by looking at whether people are being punished after they broke the rules.

Whoever violates laws is going to receive punishment carried out by relevant authorities but not for

ethics. Besides, a situation can be illegal, but morally not illegal. For example, rob properties belongs
Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230
to rich people and give it to poor people. It is considered to be morally right but be illegal. Similarly,

a situation that is legal can be morally wrong. For instance, spend thousands of dollars for luxury

foods while poor people have enough food. Lastly ethics emphasizes more on nice aspects whilst

legal guidelines are extra worried with bad actions.

Question 2

Describe the relevant ethical issues surrounding this case. (5 marks)?

Answer:

There are a few issues surrounding this case that need attention based on ethical and the

law. The public ought to know about the probable side effects of the drug and that patients ought to

be informed so that they can make informed consent before taking the drugs to avoid litigation

against the company and the university which signed the contract to develop the drug under the

leadership of Dr Ethimo.

Other issue is using law against the unethical behaviour. This situation when the legal officer

and the CEO of XYZ have reminded Dr Ethimo of his as well as the university’s obligation to stick to

the details of the contract especially the duty not to disclose any other information beyond what is

required for all similar products.

Besides, the ethical issues when the legal officer and the CEO of XYZ become greedy for

company survival and revenue more than risks and side effects people that can make life threating

and fatal side effects.


Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230
Question 3

Identify the stakeholders and describe their expectations in this case. (5 marks)?

Answer:

Stakeholders may be external or internal. Internal stakeholders are individual whose interest in a

company. They have direct relationship through ownership, funding or investment and also the

employee itself. People who do not directly work with a company is external stakeholders but they

are affected in the business. Suppliers, creditors, public agencies and clients are all considered

external stakeholders.

In this issue, internal stakeholder represents the CEO of XYZ and all management and

employee. They have expectation to fulfil shareholder goals. Shareholders expect the business in

good condition with highly profit and offer good returns. Shareholders expect to be keep nicely

knowledgeable of business activities. Shareholders always are expecting to greater protection on

their investment to gain greater returns.

For external stakeholder, the most important in this issue are Dr Ethimo and the customers.

Dr Ethimo and the university have expectation to maintain their values of integrity and truthfulness

in the cause of protecting life, avoiding harm and serving a good cause to humanity. He indicated to

the CEO of XYZ that the public ought to know about the probable side effects of the drug. For

customer expectation as a consumer important to know any consequent of the products. They

always expect all the products is safe without any harm to them.
Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230

Question 4

Elaborate on the dilemmas faced by Dr Ethimo and the CEO of XYZ. (5 marks)?

Answer:

As a researcher in a local university, Dr Ethimo and his team from the university have

responsibility to protect university reputation to ensure his values of integrity and truthfulness in the

cause of protecting life, avoiding harm and serving a good cause to humanity. The dilemmas in Dr

Ethima when he indicated to the CEO of XYZ that the public ought to know about the probable side

effects of the drug and that patients ought to be informed. However the legal officer and the CEO of

XYZ have reminded Dr Ethimo of his as well as the university’s obligation to stick to the details of the

contract. The CEO and the legal officer of XYZ will not hesitate to sue the university for breach of

contract should these information be made known to the public.

On the other hand, the CEO of XYZ represent the management in pharmaceutical company.

His responsibility to shareholder and employee in the company to sustain the company. Any

research about the products need fund from the shareholder that expect good return to them. The

dilemmas faced by CEO of XYZ regarding the issues s may lead to cause unnecessary alarm and panic

reactions, leading to large reduction in demand of the drug and prevent recoupment of the initial

investment in the drug. This would definitely affect the financial bottom line of the company.

Additionally, there may be negative reputational consequences against the company and the

university should such information become public. As a CEO of the company need to protect the

company against any factors even his action towards unethical behaviours.
Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230

Question 5

What solutions can you suggest that can satisfy the expectations of various parties including the

stakeholders? Provide arguments to support your answer. (5 marks)?

Answer:

Two main problems in this issues where the integrity and truthfulness and also for sake of

company to protect from any causes that can makes deduction on the revenue. I suggest a fast

mechanism need to implement to overcome this issues before the situation become worst. The

company and university can have litigation from the victims if anything happen that can threatening

life of consumer.

The company need stop the production of the drug is called Retro and replace it with new

formula without side effect where Dr Ethime and his team have fully responsibility to find the

solution about the new drug. The revenue of XYZ maybe leading to reduction in demand of the drug.

However there are a few method can be used to increase the sale through new campaign and

rebranding the products with a few attractions. This proper action needed to prevent the unethical

behaviors and the same time to ensure the interest of stakeholder.


Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230

Question 6

What actions can be taken by the University to prevent a recurrence of this problem? (5 marks)

Answer:

A lot of problems can actually be avoided easily by ensuring that contract is transparent

with using good ethics and governance.

To prevent a recurrence of this problem, the university need to do a few steps. Firstly before

sign any contract they need investigate any consequent of it. If needed they have to refer expertise

to make sure the contract in proper manner. Discussing the requirements in the contract clauses

allows the university to quote including the specific requirements. In this issue Dr Ethimo need add

disclaimer so that if happen the situations involving the value of integrity and truthfulness that need

to take action accordingly.

Other than that, during the testing of the drug on animals and human being. The university

ought to study new method of testing rather than old standard procedure. It’s recommended to use

verity of sample and method so that the result more accurate and prevent a recurrence of this

problem.