MGM101 – Lecture 4 – Corporate Social Responsibility
Milan CEO defends EpiPen cost to angry lawmaker
EpiPen ; steroid injection for people going through major shock, adrenaline for
people with severe allergies
Increased price of Epipen by over $600
o How does this affect you as a shareholder?
Make more money
Affects public = more consequences
20% of Milans profits making Epipen a significant product for the
o Will shareholders care about ethics if it doesn’t affect their share price?
Important to know what the shareholders want
If shareholders are personally affected by this
Epipen controls 90% of the market shares for medicine
o Governments regulating industry could affect everyone in terms of shares
How do people get away with this activity?
o Sure, its fine now but once it makes the news all shareholders will be put
o Affects demands for shares if you decide to act in an unethical manner;
other people might not want to invest in market due to the increased risks
Only a small % actually makes the market but when it does get sold, you take care
of all the pricing required to cover this drug?
o If one is a wealthy individual do they care? Will it affect them?
Governments are very involved in research, because they are focused on what will
create a revenue for them
Would you want your family to know about this if you the CEO? Think about
how this could affect your personal life as well
There are many examples of this happening all over the world
Corporate Social Responsibility
An important part of management
As a manager, you have to make decision. The criteria you chose to make decisions will
lead to responsible decision making
Companies operate in a dynamic environment