Legal and Ethical Issues Memo 1
Running Head: INTERNATIONAL LEGAL AND ETHICAL ISSUES MEMO
International Legal and Ethical Issues Memo
International Legal and Ethical Issues Memo
The companies CadMex Pharma and Gentura have formed a joint venture to produce pharmaceuticals for world-wide distribution. Some positive points about the business relationship with Gentura were the attributes of good technology and the experience of 25 years of providing leading biotechnology to the industry. The involvement of the Candore government in business contracting ensures detailed scope and specifications, adding to the legal surety that the letter of the contract could be honored. Although Candore does not conduct international trade with regularity, they have formal diplomatic relations in 23 nations including the U.S. Team B addressed the decision-maker of CadMex Pharma by identifying potential conflicts between Cad Mex Pharma’s legal rights and ethical duties. Additionally, each member of Team B identifiedsimilar situations based on experiences where the law conflicted with cultural practices. Each team member’s experience or event includes an evaluation of the ethical implications along with any actual or proposed resolution(s).
Potential Conflicts: Legal Rights vs. Ethical Duties
The potential conflicts between legal rights and ethical duties came about in the portion of the simulation that dealt with the rare viral outbreak that threatened one percent of the population, then actually infected three percent of the population. The simulation provided precedence to the law which made CadMex Pharma’s position to sue, legally strong. However, the ethical duty to cooperate with the government and allow mass production of the vaccine despite the patent infringement was a strong inhibitor. The public outcry from deciding to pursue legal action caused more damage financially than the loss of patent on the vaccine.
Some of the potential conflicts around this situation are the difference of legal enforcement between the United States law and Candorean law. Using CISG vs. CRTIC is a potential conflict, while it is to Cad Mex’s benefit to use International law as opposed to local law the use of CRTIC fits the contract needs of both parties more effectively. CRTIC is also the more ethical choice because it requires full disclosure by Cad Mex.The United States enforces its laws separate from the government and politics. The political structure of Candore’s government has influence on the business conducted in their country. Candore does not regularly participate in international trade; therefore, it is likely that their legal system is not adequate to address every possible situation that could arise from international ventures.
During the simulation, Candore tries to join the World Trade Organization. Eventually they are accepted, but the government went through a regime change and the new democracy has changed the business environment. The instability of the government of Candore created conflict by changing the rules of business with little warning. Although the changes were more capitalistic and seemed to favor international trade, the change created potential lapses of authority that could make legal claims difficult or lengthy to pursue.
The ethical conflicts that have the potential to affect the business of CadMex Pharma areabuses of the power that Candore can impose when producing vaccine. There was a risk that the government would not honor the patent laws and produce as much of the vaccine as they want. CadMex Pharma worried that the patent would become worthless because generic versions of the vaccine couldbe produced by anyone that the government gave the patented formula to. CadMex Pharma considered the loss of reputability if an emergency producer of the vaccine created a variation that had consequences or failed to protect as the original product had. Candore did infringe on the patent law by using viroblax without a license to do so; however under TRIPS there are exceptions which allow compulsory licensing in emergency situations. Cad Mex could sue for damages but it would have an adverse effect on the relationship of the parties.
In the second situation of the simulation, the new research lab required all male technicians to be clean shaven at all times. Several employees refused to shave for a few days in July. The workers were suspended from work without pay. The company had the legal right to enforce the policy, but the religious observance of one group of people required them to refrain from shaving during a time period in July. The workers sued the company for discrimination. The solution for the situation was to return the workers to the lab and compensate them, and for the long term, to revisit the policy for possible revision. The shaving policy was purposeful and the right thing to do, but it could not be enforced without creating further legal problems.The legal right of GenMex is to establish work practices that do not infringe on a person’s cultural and personal rights. The ethical duty of GenMex is to provide responsible accommodations for the employees who are practicing a part of their religion by not shaving during the week.
Angela Bufano: Personal Example
In the military, diversity is everywhere, but diversity is not something everyone is used to. Some people come from big cities and some come from small towns. Some individuals have never met others of a different race prior to joining the military. However, the military has rules to ensure racial prejudices’ are not acted upon in any way, shape, or form. Individuals in the military are expected to respect one another no matter what ones race or background consists of. Military personnel caught showing signs of prejudice against ones race would face being discharge from the military. Military members found guilty of prejudice are not allowed to remain in the military under no circumstances. Military personnel must follow certain procedures to ensure proper steps are taken in a racial accusation or dispute, due to the seriousness of ending ones military career. If the procedure is not followed through correctly, ethical and legal issues are at stake.
Mark Heideman: Personal Example
In the mid-1980’s, one team member worked for a furniture factory that employed over 1800 employees. The employment breakdown was 100 skilled craftsmen, 100 equipment mechanics and technicians, and 100 full-time employees. The remaining 1,500 employees were temporary employees. The initial thought of this situation was that the company was abusing the labor laws by keeping a workforce without the added cost of benefits, retirement, and stability. The OregonState law required that temporary status of an employee could only be granted for a term of 90 days. After that time period, the company had to hire the employee or terminate the employment. The company practice was to hire temporary employees and allow them to work for 89 days, and then lay them off for a day. When they had reached their 89th day, they were evaluated for suitability to return for future employment. There were some employees who had worked for the company for years in this way.
This situation was not breaking the law, although it seemed to be an abuse of the intent of the law. The temporary employees were generally satisfied with the working arrangement. Full-time employees were required to take drug screening tests that many employees did not want to take. Additionally, every 90 days the worker could decide if they wanted to collect unemployment and not work.
The conflict of legal responsibility and ethical duty lies in the right for a company to operate their business in this way and the ethical duty to ensure fairness in labor practices. The practice violated the intent of the labor law and enabled employees to subsidize their income through government welfare programs. The company had a responsibility to discourage vagrancy in the workforce by providing education or outlining company policy that explains how it hurts the economy, is fraudulent against the government, and is an undesirable quality in an employee. Taking action to discourage the practice fulfills some of that responsibility to society. The ethics of conducting business in that way is purely profit driven.
Tammy Jeffcoat: Personal Example
Norican Group “employs 2200 people in over five continents including the USA, China, the United Kingdom, France, Canada, Germany, Switzerland, India, and Germany (Noricangroup.com, 2009)”. Norican operates their businesses in every location according the laws and regulations of each country. The organization formed by merging two large corporations Wheelabrator and Disa combined with over 100 hundred years in the surface preparation industry. The two companies service customers all over the world and realize that to be a leader it is necessary to understand and comply with cultural differences in every country. The leaders of Wheelabrator are focused on and understand the American way of doing business. The leaders have to comply with social beliefs and business practices that do not adhere to the United States Constitution.
Wheelabrator and Disa discovered the best way to resolve cultural conflicts was to hire educated individuals from every continent that understand contract law and risk management. Norican Group has established a code of ethics and bylaws (an employee handbook) for every individual location that pertains to that group of individuals. The international sales team has been educated to respect the national sovereignty of every country they conduct business such as Russia, Africa and the UAE. The inside sales teams for every location have been educated to respect the values, traditions, and social objectives that can be subject to sales and shipments from the United States. Every company doing business with other countries must understand the risks and be willing to write detailed contracts to protect both parties.
Raquel Rankin-Reindel: Personal Example
I live in a fairly new housing development and we do not have fences to divide our front yards. There is a space of grass that is roughly five feet wide that separates our neighbors front yard from our drive way. This five foot space is our property. Prior to us moving in our Neighbors built a flower planter in their front yard which comes onto our property about three feet. While we have the legal right to ask them to tear down the planter box, we decided that it was better to protect our relationship and come to consensus on how to handle the situation. We do not mid the flower planter, he is a landscaper and keeps it well kept, so we agreed to allow the planter box to stay with the understanding that if they moved they would remove it or if we moved we would notify the new homeowner so they could discuss the planter with our neighbors.
Conclusion
In summary, Team B was able to address the decision-maker by identifying potential conflicts between Cad Mex Pharma’s legal rights and ethical duties. Additionally, each team member of Team B identified similar situations based on experiences or events where the law conflicted with cultural practices. The first team member, Angela,mentioned racial issues within the military and how racial prejudices are not acceptable among military service men and women. When one is accused of committing a racially prejudice act a great deal of investigating must be conducted because finding one guilty of being racist may result in a less than honorable military discharge.Mark provided an example of conflict between legal and ethical issues through unfair labor practices in a furniture factory. Hisevaluation consisted of an employer’s responsibility to educate the labor force against fraudulent claims against the government.The credibility of the company relied upon the company’s ability to meet the intent of the state labor laws, and not just the legal items. Tammy provided the example ofUnited States Corporations doing business with many different countries and the evaluation consisted of completing contracts suitable to other countries social and cultural practices.The fourth team member, Raquel,mentioned property line disputes and the evaluation consisted of the merits of verbal agreements and promising to revisit the issue upon ownership changes.
References
Norican Group. (2009). The World's leading provider of technology and services to improve metallic parts. RetrievedOctober 2, 2009, from
Simulation was accessed through the University of Phoenix Resource page for BUS 415, located at the following URL: