SOCIAL RESPONSIBILITY

Individual and Organizational Ethics

1) In a short essay (no more than 400 words long) use the tools learnt in class to analyze
the dilemma faced by the CEO of GE Healthcare India. The analysis should be in-depth and
go beyond obvious points. You may undertake a small search on gender roles in India in
order to provide some socioeconomic context.

Ge Healthcare in India: An (Ultra)Sound Strategy? The ultrasound machines produced by

*Ultrasound provided an often intricate look into the human body. Used to examine the heart, for
example, ultrasound images could measure the heart chambers, detect valve abnormalities and
damage muscles, evaluate how efficiently the heart was pumping blood, and detect the
congenital or hereditary abnormalities.

GE Healthcare India’s CEO faces a decision that could have an important impact in the whole
Indian society (particularly women and rural communities), but also in their stockholders and
medicine professionals. In general, the two choices that the CEO has is to keep selling ultrasound
machines, or to stop selling them. There is an ethical dilemma since these two options are mutually
exclusive. On the one hand, the ultrasound machines are a high-quality product that can be used in
multiple medical. If their use is focused on rural communities, the impact on disadvantaged
populations is important. For this, the WHO (n.d.) states that keep selling them involves promoting
the “human right to health and health care”.

On the other hand, Indian society is based on patriarchy. According to a report from
Poverties (2017), it is proved that women are born to perform the role of wives, while men are born
to have a successful life. Also, the Indian families invest their money in education for boys and
marriage (dowry) for girls. These previous statements demonstrate the culture of discrimination
toward women and the social pressure they have. Therefore, it is understandable why families do
not prefer to find out that a girl is about to be born. Following with this, the ultrasound machines
can be used to determine the sex of a fetus. Consequently, families have seen an opportunity to
abort when the baby is going to be a girl.

This information allows to affirm that by keeping the selling of the machines, the CEO
assures the procurement of excellent medical care for Indians, but perpetuates the problems that
bring the prenatal sex determination (great number of abortions of baby girls); and that by stopping
the selling, there could be a reduction in the number of baby girl abortions, but the procurement of
medical care to other communities could be jeopardized.
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Besides these facts, problems of agentic shift and systemic errors are found. In this case,
the systemic error is seen in the whole Indian society. As it was implied before, the act of abort
when the baby is going to be a girl is a “established” practice, so neither the parents, nor the doctors,
or nor GE Healthcare India are held responsible, or take responsibility, for this practice: the
responsibility is diluted. The agentic shift is located within GE Healthcare’s employees, since they
have to follow the decision taken by the CEO, despite of their own internal moral judgement or
beliefs.

2) Read Chapter 2 of Adam Smith´s Wealth of the Nations (pages 25 – 30. Link available
in SICUA). Smith is considered by many as the founder of free market economics. Write a
short essay of no more than 300 words on the ethics of the market. In particular try to
answer the following question: Does Adam Smith, according to the text, envisions the
existence of an ethical dilemma in market exchange? Don´t panic! This is not as abstract
as it sounds! Please use your own words.
Adam Smith makes a clear statement regarding the natural tactic every human uses when
sees himself or herself in the need to obtain something from another person. In market exchange
there is always the need to obtain something through a contract, such contract implies “give me
that which I want, and you shall have this which you want” (Smith, 1979, p.26). The ethical dilemma
envisioned here is whether use the previous tactic with honesty or not. Certainly, these are mutually
exclusive. The second option can be beneficial since it would be easier to convince the other part
that it will obtain what it wants even if is not true. Each part is looking for its own advantage, thus
the personal interests will be over the other’s interests. The division of labour is born when humans
realize that they can obtain what they need and want when offering the others exactly what they
need and want. The decision makers are the parts involved in the market exchange. The set of
actions available are offer something and accomplish it or offer something and do not accomplish
it. If an ethical dilemma would not be possible in a market exchange the principle of caveat emptor
would not exist. The least informed part, that means the one who is being convinced of obtaining
what it wishes must be aware of a possible fraud. Taking advantage of the counterpart is always
possible. According to Adam Smith you never expect to get results based on the others good faith.
To conclude, since the very beginning of considering a market exchange the parties find themselves
in an ethical dilemma.

3) According to Card (2005) organization may avoid the erosion of individual agency by
creating an ethical code and/or an ethical compliance program. Evaluate Johnson &
Johnson´s Credo (https://www.jnj.com/credo/) as a potentially effective ethical code using
the criteria put forward by Card (2005) (pages 399-400). **
** The appendix in next page provides some background information on The Credo. You may also
want to watch this short exert https://www.youtube.com/watch?v=nlTijmelPCQ In your answer
you may relate the Credo to McCoy´s thoughts on group ethics as described in the Parabole of the
Sadhu.

Johnson & Johnson is a global company focused on providing healthcare for everyone,
everywhere. In order to achieve that, the company has a Credo, which states the values that guide
the different decisions that the firm takes. As stated by Card (2005) and Trevino et al. (1999), an
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effective ethical code/program must have a value-based orientation, since it is the most efficient
way of achieving the seven desired outcomes of an ethical program, and also for avoiding the
erosion of individual agency. In general, the credo has a value-based orientation as it states a set of
company values, but gives space to individuality. Also, the credo has an external stakeholder
approach, as their “first responsibility is to the patients, doctors and nurses, to mothers and fathers
and all others” who use their products (Johnson & Johnson, 1943). For this, it is possible to say that
the Credo is an effective ethical code.

In order to support the latter affirmation, some extracts of the Credo will be related with
the seven desirable outcomes of an effective ethics program:

● “We must be good citizens — support good works and charities, better health and
education, and bear our fair share of taxes”: This statement encourage the employees to
act in an good way, ethically and legally, lowering the incidence of illegal or unethical
behavior.
● “Employees must feel free to make suggestions and complaints.”: This enunciation
“increases employee's willingness to give management bad news” (Card, 2005, p.400)
● “We must provide highly capable leaders and their actions must be just and ethical.”:
Appealing directly to an ethical behaviour raises the ethics awareness of employees. Also
seeing in the leaders an ethical authority “makes it more likely that employees will ask for
help in ethical/legal issues” (Card, 2005, p.399), but also increases “the willingness to report
ethics/legal violations to management” (Card, 2005, p.400)
● “We must respect their diversity and dignity and recognize their merit. They must have a
sense of security, fulfillment and purpose in their jobs”: The credo also increases employee
commitment to the company, as it creates an environment where the employees are
recognized and have an important role in the organization.
● “The values that guide our decision-making are spelled out in Our Credo”: this is not an
statement of the Credo, but is an statement of the purpose of the Credo. This means that
the credo, or the ethical program, is the supreme guideline in order to take any kind of
decision.
● “...work environment where each person must be considered as an individual…”: This
implies that employees must have consciousness of themselves, their moral principles,
thoughts and actions. It minimizes the likely of an agentic shift.

When analyzing Johnson & Johnson’ credo under the light of McCoy (1997), it is possible to
say that Johnson & Johnson is a strong company, since its ethic program allows all the members of
the organization to share a preconceived notion of how to behave correctly. McCoy also states that
a company, or group, is ethic if it follows the business, but also follows the different goals of all its
stakeholders. In general, the Credo fulfills this two requirements, since it responds for the business
(expects a fair return for their stockholders, as well as assures investments and a correct operation),
but also responds for the necessities of its customers, employees and stockholders.

Bibliography

Card, R. (2005). Individual Responsibility within Organizational Contexts. New York: Journal of
Business Ethics.
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Human rights and health (n.d). World Health Organization. Retrieved from:
https://www.who.int/news-room/fact-sheets/detail/human-rights-and-health

Gender Roles & Status of Women in Indian Society (2017). Poverties. Retrieved from:
https://www.poverties.org/blog/status-of-women-in-india
Our Credo (1943). Johnson & Johnson. Retrieved from: https://www.jnj.com/credo/