Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property

Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property

1. Research three to five (3-5) ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety.

With the globalization in world economy, business ethics became indispensable necessity for companies. Business to business ethics of appropriate behaviors in the long-term success of businesses in a positive direction, otherwise it has been the power to adversely affect the behavior. As a result, the collapse of ethical scandals has emerged released in the United States of America and Europe. Business, which clearly indicates the necessity and importance of business ethics have valuable lessons from the collapse.

Ethical issues at Marketing

Nowadays, marketing ethics, an ethical issue comes up with sales-related studies and sensitivity in the community. This aspect of the business from a societal perspective should insist on the importance of ethical practices. As a result of marketing activities by the community due to the high impression, often come up with moral problems in the advertising, personal selling, market research and international marketing issues are seen to be available to unethical behavior. Especially in the 1970s and 1980s, various scandals in the international arena, large-scale corruption in the agenda for the international marketing have led to the examination of moral side. On ethics in international marketing done most of the work is said to be still in bribes. Various surveys conducted from 1990 with the most important ethical problems faced by businesses are to determine what are these problems. Armstrong (1990) in a study conducted by the Australian international business managers was asked to indicate the most serious ethical problems;

– Corruption (35%),

– Cultural differences (20%),

– Pricing practices (12%),

– Gift / sample be unreasonable commissions (10%),

– Nonconforming product / technology and involved in political events (4%),

– From the host country to tax evasion and unethical activity (2.5%) (Topcu, 2013)

Ethical issues in Advertisements

Advertisements undisputed impact on the community is increasing day by day. The advertisements aim to influence consumers to purchase products and to guide them. This routing when there are issues to be considered. These considerations can call as ‘Advertisement Ethics’. Ethics advertisement; away from the concept of honesty and integrity, without the morality of society, according to the comparison builder without resorting to unfair competition, consumers from deception, exaggeration in moderation and to target children from the product to market. Conscious people increasing day-by-day, but also outside of advertising ethics that much are neglected. Conscious consumers should become aware of advertising ethics and avoid consuming that product. But most people today together with cultural degeneration without seeing it is wrong, and sometimes these mistakes are followed approvingly. In Advertisements that are referenced in one of the biggest ethical wrong sometimes though they are not product-related ‘Sexy Women’ taking the figures in the foreground is the purpose of marketing the product.

Example 1: Magnum, an ice cream brand, product marketing videos always in the forefront of male and female figures actually using elements of sex and these elements are not related to product marketing, which is an ice cream. Gratification, there’s more…’ association of the product with slogans like just going in that pulling a little thought-provoking direction. Ice cream ads often see this kind of content has now becoming commonplace. Usually consumed by children ‘Max – Sticks’ even in such products should be the role of child figure now out of the use of sex started its come to the forefront in others, just like magnum ads, has becoming slowly unobtrusively. Other examples can show as an example the jeans ads. This feature in advertisements for Armani Jeans has come to the fore. Armani Jeans’ matter of fact sex feature very recently began to issue to the forefront. In my opinion, jeans are quite distance from the sex object. Maybe jeans into this category could be a method as well.

Unethical other issues in advertisements, which will lead to unfair competition. Companies to have a good advertisement should not disdain other opponents also should not use products of opponents in advertisements. As an example, Vodafone, a telecommunication firm in Europe, is violating this rule also quite possible to see the latest ads. Vodafone implicitly criticizes in an ironic way to other operators of in the market. According to some of those viewers come funny, but it is not ethical. As you remember, an old in Pepsi’s ads the little buy firstly Coca-Cola from the soda machine. Then he put it the Coca-Cola on the ground after that he steps on it to get the Pepsi from the soda machine again. And he starts to drink Pepsi while he is leaving the Coca-Cola on the ground. Amended and crafted a funny ads with fiction, though it is not ethically appropriate advertising. Burger King has prepared an advertising banner, in this banner McDonalds icon is buying something from Burger King. This opens the way to unfair competition is an unethical advertising banners.

Ethical issues on intellectual property

First of all, we can examine in this part as copyrights, which are copying books, movies and etc. To copy something and make a profit by selling this product is same as shoplifting. A person can create an original work fixed on a physical medium; the work automatically becomes the copyright owner. Copyright ownership, operation specific work in specific ways to the owner of an exclusive right to the use of data. Many studies, including the following types found eligible for copyright protection:

* Audiovisual works (TV shows, movies and online videos, etc.)

* Sound recordings and musical compositions

* Written work (lecture notes, articles, books and musical compositions, etc.)

* Visual works (paintings, posters and ads, etc.)

* Video games and computer software

* Theatrical works (plays and musicals, etc.)

Thoughts, events, and processes are not covered by copyright. Copyright protection, according to a study to be both moving and creative elements must be fixed in a tangible medium. Names and titles singly are not subject to copyright protection.

Ethical issues on regulation of product safety

In this sense, will be the best example is drug companies. The best examples, which took place in 1938, 107 children have died as a result of giving incorrect information about the product. And after these events product safety has became mandatory duty for companies. However, there is not any success working on regulation of product safety. But in today’s world, it has become more effective to protect consumer rights on regulation of product safety (Eroglu, 1996, pg. 1).

2. Argue for or against Direct-to-Consumer (DTC) marketing by drug companies.

“Direct-to-consumer (DTC) advertising of prescription drugs has elicited various concerns. One concern is that DTC advertising may add to spending on drugs by consumers, insurers, and the federal government without providing enough benefits to justify that spending; specifically, some observers worry that DTC advertising encourages broader use of certain drugs than their health benefits warrant. Another concern is that DTC advertising for newly approved drugs may lead people to use drugs whose potential risks were not fully discovered during the drug approval process. Those concerns have spurred recent proposals for a moratorium on advertising brand-name prescription drugs to consumers during the first two years following a drug’s approval by the Food and Drug Administration (FDA)”(Elmendorf, 2011).

3.Determine who regulates compounding pharmacies under the current regulatory scheme, what the Food and Drug Administration (FDA) could / should have done in this scenario, and whether the FDA should be granted more power over compounding pharmacies.

Unfortunately, executives of companies they all direct to make a profit ignoring the ethical rules. What PharmaCARE has done in this scenario, not to care side effects of the drug they started formulate again to maximize the effect of the progression of Alzheimer’s disease. In order to avoid FDA scrutiny, PharmaCARE established a wholly owned subsidiary, CompCARE, to operate as a compounding pharmacy to sell the new formulation to individuals on a prescription basis. Regulation of the Food and Drug Administration (FDA) has holes to give an opportunity to find another way to companies. And just like PharmaCARE companies, they use these holes to make a profit. If even when FDA or other regulations prevent these holes, I bet the companies will be found other way overcome the regulation.

In this scenario, FDA might be preventing not to open business if a research related with another drug. Because the new product might be come with side effects, not to repeat again what I mentioned above which is caused 107 children died due to drug in 1938, FDA should not let to produce the product has any side effect.

4.Decide whether PharmaCARE’s use of Colberians intellectual property would be ethical in accordance with:

A. Utilitarianism

The concept of happiness in the highest happiness to be thought of so much pain should be considered. Actions are morally not good or bad due to actions are evaluated in terms of the results the actions. At this point, PharmaCARE had done these behaviors may seem like Colberians benefited but interests of enterprises is more important than Colberians’ benefits. So, it is not an ethical view from utilitarianism side.

B. Deontology

As far as Business ethics is concerned one of the questions to be asked; for the benefit of business ethics or business interests of the community is necessary or not? Is really appropriate in the interest of business ethics for business to comply with ethical behavior? To understand this we must look to moral theory.

Kant defended known also as deontological theory. Accordingly, certain things no matter what the consequences for humanity are morally binding, for example, kill, rape, torture, and genocide, no matter what the consequences to bad actions. According to the theory confirms there are certain universal rights, and they do not change according to time and circumstances. Ethical behavior in all circumstances and whatever the situation is a behavior that should be revealed.

C. Virtue of Ethics

As part of the character of the people, there is ethical consideration only other one that follows the movement because of people who do not have. Aristotle believes that virtue gives happiness to people. People are happy extent of good character virtues. In this scenario both side is happy but Colbarians has no idea what is going on. If we look the case from this point there is no any problem for ethic side.

D. Ethics of care

In this view, executives of PharmaCARE did not get any help the behavior is good or bad. They just decided make a business in Colberia and they did. So this behavior is not correct for ethics of care.

E. Your own moral / ethical compass

On my own perspective, making profit with using the people is not ethical. Every human should get what he or she deserved as tangible and intangible.

5.Analyze the way PharmaCARE uses U.S. law to protect its own intellectual property while co- opting intellectual property in Colberia.

Probably the reason the way PharmaCARE uses U.S. law to protect its own intellectual property while co-opting intellectual property in Colberia is that law protects the company’s rights on intellectual side. Although PharmaCARE is related U.S. Company that is not mean business running in the USA. So ethic side of business is not given an opportunity to look the case that way. In order to be protected by the U.S. Law, PharmaCARE established a subsidiary coopting company called CompCARE to begin formulating the new drug, so they could sell the drugs to individuals from prescriptions, after FDA’s researched and discovered PharmaCARE’s pharmacists were reformulating their diabetes drug called AD23 to maximize the effects. Since PharmaCARE was the parent company, CompCARE was able to patent the new drug, operate under the FDA and U.S. Patent and Trademark laws, and sell the drugs this way (Strayer, 2014).

6. Suggest at least three (3) ways the company could compensate the people and nation of Colberia for the use of its intellectual property and the damage to its environment.

* Firstly, instead of using them as slaves, Colberians, enterprises must provide appropriate legislative conditions to live for them.

* And the company should make payment to these people with appropriate way who is working for company.

* And environmental damage should be borne by the company.

7. Compare PharmaCARE’s actions with those of at least one (1) real-world company whose creativity in skirting legal technicalities led to ethical lapses and financial loss.

In this sense, which is the most established company, Apple Inc, they are producing their products in Chine to obtain low labor expenses. Apple had done in the rate of profit were appraised and that is not ethical neither. Actually due to capitalism all companies follow the same way that other companies do. However, the government of laws can edit all these improprieties.

8. Determine the success PharmaCARE and WellCo shareholders would have in suits against the companies.

What PharmaCARE did, sold CompCARE to WellCo, a large drugstore chain, just weeks before AD23 was publicly linked to over 200 cardiac deaths. PharmaCARE shareholders has protected by the company by selling the CompCARE. After WellCo purchased CompCARE from PharmaCARE, weeks later AD23 publicly announced over 200 cardiac deaths and both companies stock prices dropped, which made their stock prices plummet and their shareholders lose profits. The shareholders are able to sue the companies, and be compensated monetarily, but the biggest success would be to have the court order procedures to enhance the drug’s safety. Address any urgent drug-safety risks by appointing a committee, hire a medical officer to be an independent third party to serve as an Executive official who reports to the CEO, monitor the drugs ongoing, amend the company’s code of conduct, and change corporate governance procedures to be acceptable. These are some of the things shareholders could have in a legal suit, and this could be beneficial for them and the consumers (Staton, 2010 & Strayer, 2014).

9. Determine whether or not PharmaCARE lives up to its brand. Support the response.

PharmaCARE has done with some point of mistakes that damages the value of brand of company. PharmaCARE is not living up to its kind because it proclaims to be “one of the world’s most successful pharmaceutical companies, enjoying a reputation as a caring, clean and well-run company that produced high-quality products to keep millions of lives and enhanced the quality of life for millions of others” (Strayer, 2014). However, their rates dropped after their stock price changed. Their reputation as a caring company does not confirm how they produce dangerous drug that made people sick and died. They were wrong to cause dangerous drugs in an inefficient and non-environmental site while claiming to save millions of lives to improve the quality of life for themselves instead of for others. They manufactured drugs that killed people and the executives knew, and continued to produce drugs out of greed. This unconscionable decision made millions of people sick and destroyed the quality of life for others (Strayer, 2013)

10. Recommend at least three (3) changes PharmaCARE can make to be more ethical going forward.

* Efficiency in industrial and commercial operations of a company ethics policy should be achieved without exceeding the limits

* A company should not deceive the existing and potential customers, employees, be associated with other firms and institutions

* A company should be respectful rights of consumers, employees and stakeholders


Elmendorf, D. (2011). Potential Effects of a Ban on Direct to-Consumer Advertising of New Prescription Drugs Retrieved on June 7,2014 from

Staton, T. (2010, February 10). Merck Makes Deal With Vioxx Shareholders. FiercePharma. Retrieved on June 7, 2014 from

Strayer University. (2014, June 7). LEG 500 Student Version 1136 (1234 5-31-2014)

Eroglu, L. (1996). Security period. Drug research, ethic rules and regulations. Pg. (1-6)

Topcu, S. (2013). Ethics on Marketing. Retrieved on June 7,2014 from


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