Roberta Is President of a Pharmaceutical Company Which Is Based

question 71

Essay

Roberta is president of a pharmaceutical company which is based in the U.S., but has a substantial amount of sales in other countries. Roberta's company manufactures drugs prescribed to those infected with HIV and other illnesses. She is informed by missionary workers that millions of people in Africa have HIV and many have died. She receives a request to provide medication to certain locations in Africa free of charge. In addition, Roberta has been asked by a group in the U.S. to provide medication free of charge to HIV positive individuals within the U.S. and to donate other drugs her company makes for the treatment of other illnesses. Roberta, in good faith and based on a good review of the company's financial position, believes that the company can afford to donate some supplies, but not in the quantities requested by both foreign and U.S. concerns. What do you believe is the ethical thing for Roberta to do under the circumstances?

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Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay at a later date.

Gross Profit

The difference between revenue and the cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products or services.

Sales Discounts

Reductions granted on the selling price of goods or services to encourage prompt payment by the customer.

Cash Collection

The process of gathering and managing payments received from customers.