PHI 2397 Lecture Notes - Lecture 11: Lifesaving, Distributive Justice, Justice As Fairness
12 Oct 2014
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Lecture 11: the medical business, business and the environment. The only social responsibility of business is to maximize profits. Failing to charge the market price is a breach of fiduciary duty. Corporate decisions often have very strong social impacts. Because of their size and power, their decisions have strong social and economic impact. Maintenance of neutrality on prices is impossible on account of the social impact. Abstaining from taking non-economic criteria into account when fixing prices is both a moral and social decision. Stresses a broader view of corporate obligations: attentive and responsible social agents. Corporations should treat those affected by their decisions as stakeholders. Exclusive trademark and patent rights: treating investments for patented drugs as a cost would raise prices, opening the door for all sorts of abuses. Regulated pricing of generic drugs would disadvantage inefficient firms with above average costs and push them out of the market. Regulations do not incentivise efficiency and cost controls.
