Merck, the Fda, and the Vioxx Recall

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Case Study: MERCK, the FDA, and the VIOXX RECALL To begin with, Merck was one of the world’s leading pharmaceutical companies which ranked1st on having the highest profit on the year 2005 (Lawrence & Weber, 2011). They were also named ‘The Miracle Company’ (Lawrence & Weber, 2011) and had a 7 succeeding years of status as one of the most ethical and socially responsible drug company. However, they faced problems which challenged them and was questioned about their recent launched drug which was called Vioxx. Due to the numerous analysis and trials the drug was then pulled out from the market on September 2004 (Lawrence & Weber, 2011). The Vioxx was believed to increased cardio vascular problems. Addition to that, Senator Charles Grassley quoted on the case study that ‘a blockbuster drug (had become) a blockbuster disaster’ (Lawrence & Weber, 2011). From this result, it is clearly shown that it is important for all companies to act ethically and should be socially responsible in all their actions for them not to have a negative image to the market and can also have a huge impact to their stakeholders. ‘Corporate Social Responsibility [CSR] is the idea that businesses interact with the organization’s stakeholders for social good while they pursue economic goals’ (Lawrence & Weber, 2011). This means that all stakeholders expect companies to always act responsibly and to consider the society in all their business operations. There are also 10 different components under CSR which are: labour security, human rights, environmental protections, business standards, community involvement, market place, human disaster relief, health promotion, education and leadership development, and enterprise and economic development. For Merck’s point of view, CSR is a potential where they relate their significant talent in all their actions as well as to operate environmentally and

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