Review post below and Identify the points of difference in your analysis and explain how your application of the relevant law to the facts of this situation led you to a different conclusion. You must support your assertions with at least 3 peer-reviewed resources published in the last 5 years. Each source must be properly cited in current APA format.
Post below is regarding the 3 questions below
• How should a for-profit corporation balance its business needs with the needs of its customers?
• Lives depend on products created by some companies. Do these companies have a greater responsibility to work to benefit the consumer more than themselves?
• Look at the issue from a Biblical worldview. How would you respond if you were running such a company?
Why does a business exist? In today’s world, to answer that question can be complex and ominous. A company can be focused its own interest and that of its shareholders or aspiring to do the best for its customers and society as a hold. Well you might reason that these two different scopes cannot coexist together, but in order to have a successful business; a company must “focus on both customer value and shareholder value at the same time.” (Light)
In this discussion board post, I will enlighten how for-profit companies should equalize its business needs with the needs of its customers, examine whether companies with a life-saving product should put their customers’ needs over themselves, and explain how I would run a company using a Biblical worldview perspective.
BALANCING BUSINESS and CONSUMER NEEDS
A for-profit corporation is in business to make money, period. The problem is that if you do not have customers, you will not be in business for long. Therefore, a company must ensure that they always take care of their customers when developing and promoting their goods and/or services. “Satisfied customers can lead to increased purchases, increasing revenues. Satisfied customers can become advocates for branded products and services helping to generate new customers at reduced acquisition costs.
Satisfied customers will positively perceive and purchase other products and services within a portfolio. Satisfying customers leads to customer preference, and that leads to loyalty.” (Light)
In the case of Apple versus Samsung: they are both major competitors in the smartphone and tablet industry. The case is about the infringement on each company, and their intellectual property patents. Apple said that Samsung had copies five of its patents Including “quick link, universal search, background syncing, slide-to-unlock, and automatic word correction” (Tibken) while Samsung said that Apple infringed on its “camera/folder organization functionality and video transmission functionality FaceTime.” (Tibken) If a company has breached another company’s patent, then that company has an obligation to defend their intellectual property. Unfortunately, in this case, “critics argue that these patents and trademarks are too broad and that stifles innovation and prevents smaller players from entering the market because they cannot withstand the cost of litigation associated with competing in the smartphone and tablet market.” (Kubasek, et al.) Some people contend that beneficial intellectual property that would help society should be released from patents and not held captive by companies. But then the question becomes what is beneficial to the public? The point is that public welfare is not a purpose in the foundation of a company’s existence. Society has been significantly being affected by capitalism and the forces of self-regulation in this free market economy, which has created a complex system. Many portions come together to shape, build, and protect society, but individual companies do not allocate all societal responsibilities.
COMPANY RESPONSIBILITY to CUSTOMERS
This brings us back to the very first line of his post: Why does a business exist? “Is a business in business solely for profits—or maximizing shareholder value through the reallocation of profits through dividends and share buybacks—or is it in business to serve all stakeholders? What is a stakeholder? “The stakeholders an organization serves ought to be its customers, employees, society, the environment as well as those who deserve a just or fair share of the profits (the shareholders). For a business to be in business to serve only shareholders or profit seekers runs counter to the needs of today’s very complex and fast-changing world.” (Should companies serve only their shareholders or their stakeholders more broadly? (Pontefract)
Legally, a for-profit company does not possess any duty to benefit their customers, but ethically they may. Due to the kind of the goods or services offered by these companies, they are innately exposed to more peril and public scrutiny. Pharmaceutical corporations are a major instance of a company that produces a product that can be life-saving. A specific example is an Epi-Pen “The pharmaceutical company Mylan bought Epi-Pen in 2007, when drugstores paid less than $100 for a two-pen set. In 2009, the price went up to $103.50 for a set, but it was up to $264.50 by July 2013. The price was jacked up to $461 by May 2015, and it spiked to $608.61 by May 2016. EpiPens contain epinephrine, a chemical that narrows blood vessels and opens a person’s airways in their lungs. They’re used via a stab to the thigh, so that the drugs can get to work ASAP (Miller). An EpiPen can reverse the effects of severe allergic reactions like extremely low blood pressure, wheezing, severe skin itching, and hives. They’re crucial for people who suffer from life-threatening allergies to bee stings, peanuts, and more. (Miller) There’s a large inequality concerning the cost of healthcare and the basic need for healthcare and it is particularly difficult when it involves children. Mylan was summoned to Capitol Hill to testify why they have increased their prices and created a situation of price gouging. The leading purpose for the making of an Epi-Pen is just not to make a return to shareholders, but it was furthermore produced to aid customers who are in need of this product in their lives. Issues such as pricing choices, and new product offerings should all be decided by the company. This may not be in the best interest of the consumer, but it mandatory to promote the market in competition, motivation, and creativity.
RUNNING a COMPANY with BIBLICAL WOLDVIEW PERSPECTIVE
In the Presentation attached to this weeks’ learning outline, Nancy Kippenhan stated “we also require the responsibility of stewardship – of what God has given us and what He has allowed us to possess for our time here on Earth. Ultimately, everything we have is God’s and its’ our responsibility to care for it, protect it, to use it wisely and creatively.” If I owned a business that had a product that saves lives, I would make it my responsibility that these customers were my number one priority. In the Bible, it says “Do not merely look out for your own personal interest, but also the interest of others” (Philippians 2:4, NIV). God is complying us to help people in need no matter what the circumstances or situation is. Proverbs 19:17 says “One who is gracious to a poor man lends to the Lord, and He will repay him for his good deeds” (Proverbs 19:17, NIV). All that we achieve should eternally honor God, and that takes into account on how we manage our business. The Golden Rule in the Bible says “So in everything, do to others what you would have them to do to you, for this sums up the Law and the Prophets” (Matthew 7:12, NIV). This verse is the foundation of goodness and mercy. Therefore, if I had a company and I was trying to run it with this Biblical perspective, I would attempt to uncover a way to bridge the gap between making a profit, i.e. making the shareholders happy and at the same time pursuing to do no harm to the consumer i.e. developing customer relationships and appreciating your customers. Once a relationship is established with your customers, you can reap the rewards with said loyal customer. In conclusion, treat others as you would want to be treated whether as an individual or as a business owner.