DERMA

Derma is a global Dermaceutical company producing many of the worlds leading over-the- counter and prescription drugs. Many of these brands are household names sold through major retail chains in over 100 countries or direct to governments for use through public sector health services. Recently, the company has funded a research project into the effectiveness of one of its new products designed to combat a particular childhood disease. The project is designed to evaluate effectiveness in comparison with a competitor brand as a foundation for a future marketing campaign. The drug was released into markets around the world two years ago.

All trials of the new drug have been carried out by Professor Zac Jacobs at the Welwitschia State University who receive a multi-million dollar support grant for their assistance in projects of this nature. The contract with Derma insists on no publicity being given to projects and that all findings are kept strictly confidential.

Professor Jacobs has just returned from a meeting with Chief Executive and Chief Finance Officer (CFO) of Derma. He has told them that, in his view, although the new product is effective, its side effects can be damaging to children in some cases and possibly even fatal. Although the probability of loss of life is small he is recommending removing the product from the shelves immediately. Professor Jacobs also states that he is ethically bound to publish his findings so that governments and health services around the world may take appropriate action.

The CFO has reminded him of the considerable revenue loss involved in such a move and of the size of the grant given to the University. He insists the findings remain confidential, pointing out a clause in the contract between Derma and the University that forbids the disclosure of trade secrets to third parties. Professor Jacobs is appalled and has openly questioned the CFOs integrity as a member of an esteemed profession.

Professor Jacobs has approached you, an external consultant, for advice on what to do in this situation. In particular he is anxious over some of the CFOs comments; whether being part of an esteemed profession should influence the CFOs behaviour, whether publishing his concerns would be a breach of the Professors confidentiality, and how best to act ethically in this case. The professor recognises that some of these issues are not clear cut, so wants you to discuss different perspectives rather than simply telling him what to do.

Required:

Draft a letter to Professor Jacobs addressing his concerns.