On Merck Corporation and Social Responsibility - Essay Example

On Merck Corporation and Social Responsibility People today can notice that global responsibility is becoming more and more promoted. Everywhere, we see forms of encouragement on sensitivity to issues like environmental and ethical issues. In the past two decades, the business world has also adapted this movement in the form of the corporate social responsibility awareness. As Solomon (2004) says people can no longer accept the unethical idea that "business is business". This belief Solomon adds, was no longer excusable and just a pretext to be "socially irresponsible and personally insensitive". With this concept, businesses are to function in a responsible manner and by that make an effort in putting the business's stakeholders in consideration when company goals are dealt with. One such company is the Merck Corporation. In a time where businesses normally went for profit, Merck Corporation changed its direction to make a difference. It was in the late 1970's when researchers of Merck Corporation first had an indication that Ivennectin (antiparasitic compound for animals) might have the ability to cure the disease called river blindness. River blindness was a disease that was predominant in third world countries like Africa and in some parts of Latin America and the Middle East. Clearly, the profit of such medicine for river blindness was already questionable. Dr. Vagelos, who was then Merck executive head for the research laboratories, was faced with the decision of approving further research that would cost a lot of money. Nevertheless, further research was done because of its potential to cure and not on its potential to profit. A considerable amount of money was already spent in developing the animal medicine ivermectin and developing another one fit for human consumption was premeditated to cost less than developing a new medicine. And so, Merck Corporation was able to produce a cure and named it Mectizan. When government agencies of the third world countries were unable to purchase the medicine for their people, Merck Corporation headed by Dr. Vagelos, who was then CEO of Merck Company, agreed to give Mectizan to countries that badly needed it for free. Through the years, it has become to be known as the MECTIZAN Donation Program, a fusion of partnerships between private and public agencies to aid developing countries in their fight against river blindness. We see a commendable company that takes risks for the betterment of those who they know badly need it. As one of the top pharmaceuticals company in the world, Merck Corporation is expected to profit from the drugs produced in their laboratories and not to give them away for free. On a HolmesReport (2002) article, Dr. Vargelos was quoted in saying that "many companies do not realize the benefits in better employee morale and favorable press coverage that comes from doing good deeds." It is a boost in the morale for people who work under a business that gives help for many people. Like Merck Company, who have always invested a lot of money in research, this move has no doubt fueled the minds of their researchers who are given freedom to explore possible cures to diseases that are known to have no cure. Especially since, those diseases that have no cures are dominant in poor countries. Every time the company is given an award or praise, the pride and prestige also goes down to the company employees especially the researchers who developed the much needed medicine. For any worker, the drive to succeed and work properly is much more invigorated with the knowledge that you are working in a way to help others. A good image also aids in the problems of human resources because applicants are more than willing to apply for an admirable company in comparison to typical companies. A lot of younger generations today say that they would prefer to work because it is worthwhile and not just for the compensation. Many applicants mean a wider choice of candidates where the suited employee will be chosen from. Not only does good morale and good image excellent for the company's people. This is undeniably good for business as well. If you were a consumer buying medicine, wouldn't you be more inclined to buy the medicine that you know is produced by a "helpful" company If you were the head of the company, planning to have a dealership with another company, wouldn't you be more at ease in partnering with a "moral" company Moreover, good image and publicity is good when you are in an industry that is full of competitors. When a company has a good image, an excellent history of goodwill and on top of the chain in the industry, it is seen to be trustworthy and that is as always good for business. The exceptional thing about a good deed is that it has the ability to cause a chain reaction. Merck Company for example had at first found difficulty in reaching the far places where people needed their offered free medicine. According to an article by the Global Giving Matters (2001), wealthy couple John and Rebecca Moores was inspired by William Baldwin who was a retired dean of optometristy when they read on an article on his efforts to raise funds so that he can help in distributing Ivermectin in Central America. The couple not only donated their money to the cause but also collaborated with others to form the River Blindness Foundation in Texas. Later on, the foundation became an international coalition that included hefty public and private organizations like the World Health Organization. For some of the wealthiest people on earth, philanthropy has become their mission. They are not only concentrating on making money but on giving it away to people who need it too. One of them is Bill Gates, who is by far the richest man on earth. Bower and Ripley(2005) of Time magazine writes that Microsoft's chairman together with his wife Melinda are on a mission to help eradicate global health problems and poverty using the business language to explain human experience. His donations have reached to nearly $32 billion dollars, the largest donation in the world so far. They are not only committed in giving support to global health problems but are also committed in gaining knowledge of what more can be done. This year, the Gates Foundation is still on a roll and has launched another program. This time it is focusing on the impending downfall of the education system in America. Together with Time Magazine, CNN, and the Oprah Winfrey Show, the Gates Foundation is disseminating information of the present conditions of the education in America from dismal school facilities, under qualified students and the high rate of kids dropping out of school. Through disseminating this information, their collaboration hopes to give way to innovative schools, and new teaching methods that will be a great help in making the education system back to stride. Here we see an alliance of the greatest in their industries, using their fields in a common goal of helping society at large. Environmental and social issues are amassing in the world today. Awareness of these issues is more pronounced because of technological innovations that enable media to disseminate information in the fastest and most effective ways. It is also apparent that the world is awakening from the indifference and animosity that has always plagued our societies. The business industry is a major perpetrator of these environmental and social issues because first and foremost businesses involves people working within an organizational system and businesses do their operations in the environment where the premises and the living community are definitely affected. It is only right that businesses should install in themselves the responsibility to act upon immediate concerns and assess how their industry can contribute in the worldwide movement of humanity especially if they have the capacity to do so. Decisions and approval of ideas are implemented at managerial positions. Management therefore holds a great deal of responsibility to be innovative and at the same time to be initiative. A manager with an open mind is always valuable because it holds a great capacity to receive and improve on ideas from feedbacks of customers, employees and alliances from other companies who are dealt with. Reference Bower A., Ripley A. (2005). From Riches to Rags. Time Magazine. Volume 166, No.26/27. Global Giving Matters (2001). Visions Fulfillef -How Indivifual Philanthropists Influenced Global Treatment of River Blindness. The Synergos Institute. Retrieved September 18, 2006 from http://www.synergos.org/globalgivingmatters/features/0112moores.htm HolmesReport (2001). Medicare VNRs Were "Propaganda" says GAO. Theholmesreport. Retrieved September 18, 2006 from http://www.holmesreport.com/holmestemp/story.cfmedit_id=2521&typeid=11. Solomon, R.C.(2004). Aristotle, Ethics and Business Organizations. SAGE Publications. Organization Studies, Vol. 25, No. 6, 1021-1043 (2004). Read More