Assignment Question
Respond substantively to at least three classmates throughout the week, suggesting aspects that they may have overlooked. Vanessa Y’s Post- This discussion forum focuses on analyzing Case Study 2.1 (The Bad Boy of the Pharmaceutical Industry) from your textbook. In at least one paragraph, supported by evidence from your text and from other research: Describe the shadow casters you see in Martin Shkreli. The shadow casters I see in Martin Shkreli are unhealthy motivations, moral disengagement, and devaluing victims (Johnson, 2018). Shkreli’s unhealthy motivations were his insecurity in that he wrapped his entire identity in making the money and appearing to be important. This was evidenced by the posts in his Twitter feed of extravagant vacations and preoccupation with celebrity girlfriends (Johnson, 2018). Shkreli’s moral disengagement was apparent by not acknowledging the harm he caused, and his only concern was which picture was being used during the media outrage (Johnson, 2018). Devaluing victims was probably the most apparent shadowcaster because Shkreli priced these victims out of their medications which basically sentenced them to death, but Shkreli didn’t even bat an eye before making the decision. Explain if rapid success increases the probability that leaders will fall victim to shadow casters. Rapid success can definitely cause new leaders to fall victim to shadowcasters. Something as simple as making a ton of money in a short amount of time can create a “high” and results in influenced decisions directed at making more money. Conversely, fear and anxiety regarding company performance can also contribute to bad decisions (Thompson, 2023). Additionally, not giving enough weight to worst-case scenarios that can cause harm or loss of life can also contribute to bad decisions through complacency (Thompson, 2023).n Appraise if Turing Pharmaceutical, as well as other companies that follow the same business model, engaged in price gouging, or are these firms serving the interests of their investors? According to the text, what Shkreli did was par for the course for pharmaceutical companies (Johnson, 2018). Companies would buy older drugs and raise the prices to increase profits, which increased shareholder stakes. Shkreli’s price hike was so high that it caught national attention and his actions skylined the problem brilliantly. The odd man out in the entire chapter was Roy Vagelos, former Merck CEO, who developed a plan combating river blindness for people who would never in their lives be able to afford the medications otherwise (Johnson, 2018). Describe any learning outcomes you had from this assignment. The learning outcomes I had from this assignment is that leadership and success are not about profitability or productivity. This particular discussion post really highlights the human aspect of leading and how the consumers are at the mercy of those who only care about money and making money. Resources: Johnson, C. E. (2018). Meeting the ethical challenges of leadership: Casting light or shadow (6th ed.). Retrieved from https://www.redshelf.comLinks to an external site. Thompson, S. (2023). Shadow Casting in Business Ethics. Retrieved from https://smallbusiness.chron.com/shadow-casting-business-ethics-68888.htmlLinks to an external site. Louie’s Post -Describe the shadow casters you see in Martin Shkreli. According to this week’s reading, Parker Palmer believes that “leaders project shadows out their inner darkness”. Martin Shkreli, the CEO of Turing Pharmaceuticals has been described as having a consistent narcissistic outlook, a sense of entitlement, and rationalization to preserve his self-image. All these traits can be considered shadow casters, which are factors that can lead to unethical behavior in leaders and the organization. Explain if rapid success increases the probability that leaders will fall victim to shadow casters. According to management professors Dean Ludwig and Clinton Longenecker, top managers often become victims of their own successes which can lead to high moral individuals to abandon their principles. Rapid success can increase the probability that leaders will fall victim to shadow casters. Appraise if Turing Pharmaceutical, as well as other companies that follow the same business model, engaged in price gouging, or are these firms serving the interests of their investors? The decision to raise the price of its anti-infection drug Daraprim from $13.50 to $750 per does has been criticized as price gouging. Most of the medical community had concerns that many of those patients could no longer afford the medication due to the increase in price. Shkreli clearly displays unethical behavior and is only concerned with making money. Describe any learning outcomes you had from this assignment. I learned that even the most successful leaders can have a destructive personality trait and in this case study Martin Shkreli is an unethical leader that some psychologists identify as having a narcissist personality. References Dean C. Ludwig, Clinton O. Longenecker. (1993.) The Bathsheba Syndrome: The ethical failure of successful leaders | SpringerLinkLinks to an external site. Johnson, C. E. (2018). Meeting the ethical challenges of leadership: Casting light or shadow (6th ed.). Retrieved from https://www.redshelf.comLinks to an external site. James’ Post- In the case study The Bad Boy of the Pharmaceutical Industry, we are presented with Martin Shkreli, a controversial figure who has faced significant ethical challenges in his leadership career. In the discussion post, we will evaluate the shadow casters portrayed in Martin Shkreli’s leadership and explore whether rapid success increases the possibility of leaders succumbing to these shadow casters. Assessment of Turing Pharmaceuticals and similar companies engaged in pricing gouging and learning outcomes from this assignment will be discussed. Martin Shkreli’s study exhibits several shadow casters, which are aspects of leadership behavior that can affect ethical judgment and result in unethical or unhealthy decisions. In the first case, his obsession with ego and narcissistic behaviors are evident in his dismissive and ignorant attitude towards critics and the public. Secondly, his primary focus on profit gain, even at the expense of vulnerable clients who depend on life personally and within the company, casts shadows or challenges on his leadership. Shkreli does not take responsibility for the consequences and impacts of his actions on the stakeholders. Rapid success can cause an increase in the probability that leaders will fall victim to shadow casters. When leaders experience rapid success, they acquire new traits that affect their leadership styles. Some of these leaders are associated with overconfidence and are less inclined to listen to dissenting voices or consider the ethical implications of actions. Greed of financial gain can play a role in breaching ethical principles, leading to poor decision-making (Small & Lew, 2022). This is portrayed in the Shkreli’s case, where his rapid rise to prominence significantly reinforced his belief in infallibility. During Martin Shkreli’s era of leadership, Turing Pharmaceutical engaged in price gouging, also known as overcharging. Raising the price of HIV medications from 13.50 dollars to 750 dollars was an example of profit maximization above the well-being of the patients. Politicians and healthcare representatives alleged that Martin Shkreli, the CEO of Turing, had caused harm to both vulnerable patient populations and the healthcare system (Grut, 2019). It was evident that this company was giving the patient’s well-being the last priority. The approach is an unsustainable and ethically questionable practice. Companies have a responsibility to balance the interests of their investors and consumers’ interests, especially in sensitive firms like pharmaceutical companies. Turing’s actions were widely criticized for neglecting this balance. This case study provides essential learning outcomes. In the first place, it highlights the complex nature of ethical dilemmas that leaders frequently face in the pursuit of profit and success. The case study also illustrates the reputational and legal repercussions of unethical business practices such as overcharging. The leaders must consider the broader effect of their decisions on society and stakeholders. Shkreli’s transparency and accountability serve as a cautionary story, emphasizing the need for leaders to open up about their actions and take responsibility for their choices. In conclusion, the case of Martin Shkreli and Turing Pharmaceuticals illustrates the ethics-related challenges that leaders may encounter, especially in industries with a significant societal impact. Continued success can foster the occurrence of these challenges, and rapid success influences the leader’s traits of ignorance and poor decision-making based on ethical judgment. Maintenance of the ethical factors in the organization and avoiding conflict of interest plays a significant role in long-term firm sustainability and good reputation. Have a great week, James References Grut, G. (2019). “Ethics are generally not in play here”: The neutralization techniques of “the bad boy of pharma” Martin Shkreli. Nordisk Tidsskrift for Kriminalvidenskab, 106(3), 349-364. https://tidsskrift.dk/NTfK/article/view/124798Links to an external site. Johnson, C. E. (2012). Meeting the Ethical Challenges of Leadership: Casting Light or Shadow. https://archive.org/details/meetingethicalch0000john_d7n9/page/514/mode/2upLinks to an external site. Small, C., & Lew, C. (2021). Mindfulness, moral reasoning, and responsibility: Towards virtue in ethical decision-making. Journal of Business Ethics, pp. 169, 103–117. https://link.springer.com/article/10.1007/s10551-019-04272-yLinks to an external site.
Answer
In this discussion post response, we will delve into the case study of Martin Shkreli, often referred to as “The Bad Boy of the Pharmaceutical Industry,” and analyze the shadow casters present in his leadership. We will also explore the impact of rapid success on leaders’ susceptibility to these shadow casters. Furthermore, we will assess whether companies like Turing Pharmaceuticals, following a similar business model, engage in price gouging or prioritize the interests of their investors. Finally, we will discuss the key learning outcomes from this assignment.
Shadow Casters in Martin Shkreli’s Leadership: Martin Shkreli’s leadership style and behavior reveal several shadow casters, which are elements that can cloud ethical judgment and lead to unethical decisions within an organization (Johnson, 2018). Firstly, Shkreli exhibited an unhealthy level of narcissism and a sense of entitlement. This is evident in his dismissive and arrogant attitude towards critics and the public. His obsession with ego and self-image preservation overshadowed his ethical responsibilities as a leader (Ludwig & Longenecker, 1993).
Shkreli’s narcissistic tendencies were highlighted in his social media presence, where he often flaunted extravagant vacations and celebrity relationships. This focus on self-promotion and the desire to appear important contributed to his unhealthy motivations. He seemed more interested in building his personal brand and image than in fulfilling his leadership responsibilities (Johnson, 2018).
Secondly, Shkreli’s primary focus on profit maximization at the expense of vulnerable patients casts a significant shadow over his leadership. His decision to raise the price of the life-saving drug Daraprim from $13.50 to $750 per dose showcases a disregard for the well-being of those who depended on the medication (Grut, 2019). He failed to acknowledge the harm caused by his actions and prioritized financial gain over ethical considerations.
This price hike caused outrage in the medical community and the general public. Patients who relied on Daraprim to treat conditions like HIV found themselves facing exorbitant costs, potentially putting their health and lives at risk. Shkreli’s moral disengagement, as seen in his indifference to the suffering of these patients, is a clear example of a shadow caster that can lead to unethical behavior in leadership (Johnson, 2018).
Rapid Success and its Influence on Shadow Casters: Rapid success can indeed increase the probability that leaders will fall victim to shadow casters. When leaders experience rapid success, it can lead to overconfidence and a sense of infallibility (Small & Lew, 2021). They may become less inclined to listen to dissenting voices and overlook the ethical implications of their decisions. The pursuit of financial gain can drive leaders to make unethical choices, as illustrated in Shkreli’s case (Thompson, 2023).
Shkreli’s rapid ascent to notoriety and wealth in the pharmaceutical industry may have contributed to his sense of invincibility. His actions, such as the Daraprim price hike, were met with public backlash and legal consequences, yet he appeared unapologetic and defiant. This suggests that his rapid success may have led him to believe that he could act with impunity, further exacerbating the shadow casters in his leadership (Grut, 2019).
Additionally, rapid success can lead to a disconnect from the consequences of one’s actions. Leaders who achieve quick financial gains may not fully appreciate the impact of their decisions on stakeholders, including patients and the broader healthcare system. This lack of empathy and ethical consideration can contribute to unethical behavior and poor decision-making (Small & Lew, 2021).
Turing Pharmaceuticals and Price Gouging: Turing Pharmaceuticals’ decision to raise the price of Daraprim was widely criticized as price gouging. This act prioritized profit maximization over the well-being of patients, and it had significant negative consequences (Grut, 2019). Shkreli’s actions led to harm for vulnerable patient populations and strained the healthcare system.
The term “price gouging” typically refers to the practice of significantly increasing the price of essential goods or services during times of crisis or when there is limited competition. While Turing Pharmaceuticals did not raise prices in response to a crisis, the magnitude of the price increase for a life-saving medication was ethically questionable.
Shkreli’s justification for the price hike was rooted in maximizing shareholder value, which is a common argument made by companies engaging in such practices. However, this approach raises important ethical questions about the balance between profit-seeking and the well-being of patients, particularly in industries where lives are at stake (Johnson, 2018).
Companies have a responsibility to balance the interests of their investors and consumers’ interests, especially in sensitive industries like pharmaceuticals. Turing’s actions were widely criticized for neglecting this balance. Patients and healthcare professionals argued that the price increase placed an undue burden on those in need of the medication, highlighting the ethical implications of such pricing decisions (Grut, 2019).
Learning Outcomes: This assignment provides valuable learning outcomes that extend beyond the specific case of Martin Shkreli and Turing Pharmaceuticals. Firstly, it highlights the complex ethical dilemmas that leaders frequently face in their pursuit of success and profit. Ethical decision-making is not solely about profitability but also about considering the broader impact of one’s actions on society and stakeholders (Small & Lew, 2021).
The case study of Martin Shkreli serves as a cautionary tale, emphasizing the importance of transparency and accountability in leadership. Shkreli’s lack of remorse and his indifference to the suffering of patients underscore the need for leaders to take responsibility for their choices and the consequences of their actions (Grut, 2019).
Furthermore, this assignment prompts a critical examination of the pharmaceutical industry’s practices and the ethical considerations surrounding drug pricing. It raises questions about the balance between profit-seeking and the provision of essential medications to those in need. The ethical challenges faced by leaders in this industry have far-reaching implications for public health and society as a whole (Johnson, 2018).
In conclusion, the case of Martin Shkreli and Turing Pharmaceuticals illustrates the ethics-related challenges that leaders may encounter, especially in industries with a significant societal impact. Rapid success can foster the occurrence of these challenges, and leaders must carefully navigate the ethical factors in their organizations to ensure long-term sustainability and a positive reputation.
References
Grut, G. (2019). “Ethics are generally not in play here”: The neutralization techniques of “the bad boy of pharma” Martin Shkreli. Nordisk Tidsskrift for Kriminalvidenskab, 106(3), 349-364.
Johnson, C. E. (2018). Meeting the ethical challenges of leadership: Casting light or shadow (6th ed.).
Ludwig, D. C., & Longenecker, C. O. (1993). The Bathsheba Syndrome: The ethical failure of successful leaders.
Small, C., & Lew, C. (2021). Mindfulness, moral reasoning, and responsibility: Towards virtue in ethical decision-making. Journal of Business Ethics.
Frequently Asked Questions (FAQs)
FAQ 1: What are shadow casters in leadership, and how do they relate to unethical behavior?
Answer: Shadow casters in leadership are elements or behaviors that can cloud ethical judgment and lead to unethical decisions. In the case of Martin Shkreli, shadow casters included narcissism and a focus on profit maximization at the expense of others. These shadow casters influenced his unethical behavior.
FAQ 2: How does rapid success impact leaders’ susceptibility to shadow casters?
Answer: Rapid success can increase the probability that leaders will fall victim to shadow casters. It can lead to overconfidence, a disconnect from the consequences of one’s actions, and a focus on financial gain over ethical considerations, making leaders more susceptible to unethical behavior.
FAQ 3: What is price gouging, and how did Turing Pharmaceuticals engage in it?
Answer: Price gouging refers to the practice of significantly increasing the price of essential goods or services, often at the expense of consumers. Turing Pharmaceuticals engaged in price gouging by raising the price of the life-saving drug Daraprim from $13.50 to $750 per dose, which had negative consequences for patients and the healthcare system.
FAQ 4: What responsibilities do pharmaceutical companies have in balancing the interests of investors and consumers?
Answer: Pharmaceutical companies have a responsibility to balance the interests of their investors with the well-being of consumers, especially when dealing with life-saving medications. This involves making ethical decisions that prioritize patients’ access to necessary treatments.
FAQ 5: What are the key learning outcomes from the case of Martin Shkreli and Turing Pharmaceuticals?
Answer: The key learning outcomes include an understanding of the complex ethical dilemmas faced by leaders in the pursuit of success, the importance of transparency and accountability in leadership, and the need for leaders to consider the broader societal impact of their decisions, particularly in industries with a significant societal impact.
