Today's health care system is difficult to understand. It has undergone dramatic changes over the years. There are many changes that shift the movement from "an indemnity plan to a managed care system. " Not only has the U.S. health care system undergone dramatic changes, but as well continues to evolve to a rapid pace (Conklin, 2002).
In 2012, 11 of the major drug companies in the United States each made a net profit of nearly 85 million dollars. Big pharmaceutical companies have gained too much power these past decades. These companies take it upon themselves to decide what drugs are going to be produced and what information is going to be presented or hidden from the American public. Publication bias and conflict of interests are two of the biggest problems in the pharmaceutical industry. Publication bias occurs when companies take the results from the clinical trials and hide the information that could potentially hurt their chances of getting the new drug passed.
Hospital Corporation of America (HCA) has a very firm mission and values statement: “Above all else, we are committed to the care and improvement of human life. In recognition of this commitment, we will strive to deliver high quality, cost-effective healthcare in the communities we serve.” Dr. Thomas Frist Sr. founded HCA in 1968. At one time, it included over 500 hospitals. As most companies that have been successful for a long period of time, they encountered situational setbacks.
I agree with you 100%. Stumpf’s managerial ethics filtrated down into the lower level of management, which caused them to place unreachable and unobtainable sale goals on the employees and its employee reacting unethically because of the pressure of losing their jobs. Poor management effects everyone involved. It is only right for Stumpf, the employees including the manager to be released from their job. The very thing that they feared manifesting.
Cardinal Health Inc. is an international health care services company that provides products and services to more than 100,000 locations including pharmacies, hospitals, ambulatory surgery centers, physician offices and other health care providers (SWOT Analysis). Cardinal Health is currently ranked 22nd on the Fortune 500 list and is one of the largest distributors of pharmaceuticals and medical supplies in the US and is increasing its reputation internationally. Leading this organization is the CEO, George Barrett, who believes that Cardinal Health is not just able to provide comprehensive health care and supply chain solutions, but one that will act more nimbly and with greater customer focus (Chain Drug Review). George Barrett shows an aggressive approach to his leadership style by instilling a business mentality to be streamline, lean and completely consumer driven company. Cardinal Health is currently operating facilities in the US and are located in 45 states including Puerto Rico.
The Justice Department (DOJ) was already in a year long investigation into pharmaceutical industry. This is very big because of the of the large number of clinical trials done overseas, and the percentage of drugs that are approved in the U.S. due to these clinical trials. Merck, a very big American pharmaceutical company, and one of the largest in the world, disclosed in its SEC filing that it was under investigation for the FCPA act. Many other major companies such as AstraZeneca, Baxter, Bristol-Myers Squibb, GlaxoSmithKline and Pfizer, receives at least an inquiry letter regarding their practices outside the U.S. (Andersen, 2010) (p.2). Below is a chart of known investigations against companies by industry and against individuals (Miller & Chevalier, 2015).The key FCPA legislation dictates any U.S. company that uses travel, gifts and entertainment to market its offerings to potential customers internationally must obey and understand the accounting and anti-bribery points of the act.
In today business world, it is about making a profit. Some companies have managerial staff whose focus is primarily on profit building. A profit is produce when there is an excess in income over operational and expenditures cost. In an essence, the ability to produce goods or services at a lower cost to maximize income output for a company. As businesses incur revenue, there are challenges and social responsibilities that come along with it.
Karim ElGuindi Professor Rachel Gambol Accounting 203 6th October 2016 Ethics Assignment 1. In this case out of the ethical standards; competence, confidentiality, integrity and credibility, the standard that is violated is credibility but there are violations to competence and integrity as well. McDale believes she must calculate operating income to be in excess of $200,000 in order for her and many other employees to receive their bonuses.
The fraud triangle is made up by three distinguished elements. These elements in the fraud triangle consist of pressure, opportunity, and rationalization. The overall representation of the fraud triangle can be seen as the specific model to spot any type of high-risk unethical and fraudulent performances being conducted by a company, in this case Cendant Corporation. Cedant Corporations actions can be analyzed by the fraud triangle by the way that their senior management/top management decisions fell into the three categories of pressure, rationalization, and opportunity. Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image.
Human lifespan has increased due to the latest advancements in technology over the past few decades. Health care has become very important in today’s world and involve activities like prevention, diagnosis and treatment for illnesses. A health care system mainly includes three critical components that work in tandem to deliver health services. (a) Healthcare consumers are the ones in need of healthcare services. (b) Health care providers are those who provide services like physicians, nurses, laboratory technicians among other staff.
Furthermore, the Oxley act also mandated strict guidelines and reforms to improve the financial sector as well as the disclosures that corporations provide to the securities board in which would help prevent them from committing accounting fraud (Fbi.gov, 2017). This particular act was created, after major companies with public scandals such as Enron Corporation, and WorldCom committed fraud on its investors’. Such act will require legitimate confidence with financial statements as well as crucial penalties for financial crimes committed by companies or
For instance, selective promotion, beguiling advertising, as well as market price war form the major factors that of the exercises that can negatively affect the company 's association with different partners. In light of this, PharmaCARE has a few moral issues. Notably, these factors can be classified into various categories. These include marketing, advertising, intellectual property rights, and lastly safety ethical considerations. It is important to note that in the marketing world and business in general, intellectual property rights form the rife in marketing in general.
INTRODUCTION At times we may wonder what is meant by ethics, why accountants need ethics in their business life or even how they are related. As we may know, definitions of ethics vary with time but in most cases it is defined” With these definitions we can understand that basically ethics is knowing what is right (Mitchell 2009). Ethics in accounting and finance a global concern today (Onyebuchi, 2011). However, the accounting and finance sector has over the past years developed a culture of ethical misconduct (Gianneti & Yue Wang, 2014).