Business Ethic Assignment HIV/AIDS case

KEVIN SUSANTO GOLY

3124012

Cipla
Utilitarianism : From this perspective the Cipla factory is done something that is ethical , they put
the price lower than the market price which is before conquered by the 3 big drug companies. With
the product is almost similar , even they claimed as the copy of the antiretrovival cocktail. They
put the price lower and it gives more hope for the AIDS patient itself. Even in some point they make
the 3 big drug companies whose conquered the market before get loss , but as long as the good for
the society is bigger than it lost so we can categorize it as ethical.
Right : From this perspective Cipla is doing ethical thing. As we know that Cipla is not offending the
TRIPS agreement. They made the drugs that is the copy from the existing drugs from the 3 big
companies in India which is the developing country. TRIPS agreement itself will be applied in India
and another developing countries starting from 2006 , and Cipla comes up in 2001. So in the end
they didnt offense the agreement that protect the big 3 companies right , because at all they also
make the drugs with the different process.
Justice : In justice perspective , Cipla company is doing ethical thing , it is because that the
distribution of the drugs is quite fair. The sub-saharan which is be our most concern in this case can
also import Cipla product. With this thing happens , the AIDS patient there will get more higher
chance to live even longer. But still theres a problem , which is when the drugs is already at sub-
saharan there are only 50.000 peoples who had the access to the drugs , and the rest which is
350.000 peoples dont have the access. This kind of thing will be very challenging for the
organization such WHO.
Caring : Yes the Cipla company does their business ethically from the caring perspective. They do
care about the environment , realsizing that the ability of the environment that not all of peoples
can afford the antiretrovival. So they come out by producing the same product as GSK but with loer
price. In some point maybe they seems like to be stealing the GSK product. But in the end the society
dont care about that , the society only looks whats the impact that the company bring to the
society , and Cipla has done well in it.






GlaxoSmithKline
Utilitarianism : In this perspective they are done something that is un-ethical. It is not because they
put the price so high and make the poor patients in poor countries cant afford their drugs to survive.
But it is because the facts that is being shown by the time , which as we know that are several drugs
companies from India such as Cipla who can produce the same exact product and sell it at the lower
prices , and also the fact about the cost for research it just not comparable to the profit they received
for the last years before any competitors comes up. With that kind of reason they are refused to give a
discount to their drugs when its marketed on developing or even poor countries. Overall their benefit
which only affects some of peoples who take a play on the companies only is less than the society
benefit which is way much when we compare each other.
Right : In this case GSK (GlaxiSmithKline) do their business ethically. They are the inventor of the
drugs so they instantly get e patent for their drugs , They are not copying others , so when we are
talking about pricing they are also done in ethical way. Because back in the time they are on of the 3
companies that can produce and sells the drugs. Which seems like that 3 companies agreed together
to set their price in some level.
Justice : In this perspective the GSK done their business ethically. Because they spread their product
widely without any limitation, means everyone who got infected by HIV and aids can buy the product
as long as they have the money.
Caring : In the caring perspective , GSK cant be said done their business ethically at all. It is
because at some points they still acts like they didnt care about the HIV patient , they still decide not
to discount their price too low, by having arguments that they need the money to done next research ,
and the prevention of the wrong usage that can cause intolerance body from the product itself. But in
some pont they can be said do care the society or the environment , they keep innovated by doing
research to find better cure or formula that can help the HIV and also AIDS patients.

Conclusion
In the end of the case itself. The Cipla company seems like to be the one who done the business with
the most ethical way. How they can give an impact that leads to the better patients live. By the Cipla
came to the industry , it opens the other company that can compete in the HIV/AIDS cure industry.
That in some point give advantages to both the industry and the society. Cipla itself done their
business seems like todevelop the society by giving lower price so that the unlucky patients can afford
them. Still , how Cipla produce and existence in the industry becomes something that is controversial.
How the competitiors perspective about them of becoming pirates in the industry is the one that
should be fixed in the future. Because in the end , the company goal itself should provide the society
drugs and even in the future can cure the patients itself.