What does it mean to be both ethical and socially

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Reference no: EM133368056

Case Study: What does it mean to be both ethical and socially responsible as an entrepreneur? Read the short case study below and answer the questions that follow.

The CEO of a small cutting-edge pharmaceutical company decided to increase the price overnight of a lifesaving drug from $13.50 to $750 per pill. When he did this, the public immediately characterized his actions as unethical.

On the other hand, the CEO viewed his position as responsible behavior that served the best interests of his company and his shareholders. His decision to raise prices was within legal limits, but his actions were critically judged in the court of public opinion.

Questions:

As an entrepreneur, should the CEO be concerned with ensuring the sustainability of his business or with providing patients with a more affordable (less profitable) lifesaving drug? Please explain your point of view.
Was the decision to raise the price of the HIV drug by 5,000 percent in the best interest of the business? In doing so, was the CEO fulfilling his corporate responsibilities?
If you were on the company's advisory board, what advise would you have given the CEO as he made his decision?

Reference no: EM133368056

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