question and answer on business ethics case study

 Question 1: What are the ethical considerations XYZ Pharmaceuticals should take into account when determining the price of the life-saving drug?

Answer 1:XYZ Pharmaceuticals must consider several ethical factors. First, they should prioritize patient well-being and access to the drug. Setting an exorbitant price would limit access and harm vulnerable patients. Second, they have a responsibility to shareholders and employees to generate profits, which can be in conflict with affordability. Balancing these interests is crucial. Additionally, transparency in pricing and justifying the high cost through R&D expenses is essential to maintain trust.

Question 2: Should XYZ Pharmaceuticals charge a high price for the drug to maximize profits, or should they price it lower to ensure wider access?

Answer 2:XYZ Pharmaceuticals should strike a balance. While profit generation is essential for innovation and sustainability, charging an excessively high price could be ethically problematic. They should consider tiered pricing, where those who can afford it pay more, while providing subsidies or discounts for those with limited means. This approach allows for profit while ensuring access to those in need. It aligns with a utilitarian ethical framework, where the greatest good is achieved for the greatest number.

Question 3: How can XYZ Pharmaceuticals communicate their pricing strategy to the public in an ethical manner?Answer 3:XYZ Pharmaceuticals should communicate their pricing strategy transparently. They should disclose the factors contributing to the drug's cost, such as research and development expenses. Additionally, they should explain their commitment to affordability and patient access, showcasing any programs or partnerships they have to assist those in financial need. By demonstrating a commitment to both profit and patient welfare, they can earn public trust and maintain their ethical standing.