Read the case study Halyard Health above and answer the following questions:

1. Describe the ethical dilemma/concern/issue to be solved

2. What organizational policies and professional guidelines should be considered? What is the best way for Halyard to approach this dilemma/concern/issue?

3. What kind of responsibility does Halyard have to its different stakeholders?

4. What alternatives are available to Halyard for a solution? What are the advantages and disadvantages of each alternative (if chosen)?

5. Discuss the decision that Halyard should make. What are the short - and long-term consequences of the decision chosen?

Halyard Health, part of the Kimberly-Clark Corporation until November 2014, manufactures MICROCOOL surgical gowns. The gowns are advertised as being impermeable so blood containing viruses like hepatitis, HIV, and Ebola can't seep through. The company has been-accused of knowinglv selling about 13 million defective surcical gowns vearlv to US hospitals and to the US Strategic National Stockpile (maintained by the Centers for Disease Control and Prevention). During the Ebola cutbreak in West Africa in 2014, it became evident that some kind of better protective equipment was needed for protection. The company went into high gear to drive sales of their MICROCOOL, gowns. This eventually became a problem for Bernard Vezeau, the global strategic marketing director for MICROCOOL and other Halyard products. This became difficult for Vezeau because he knew the gowns were not consistently meeting standards set by the industry, and there were no warnings about gown failure provided to the hospital5, physicians, or FDA. Some reports indicated that 77 percent of the gowns failed in Cardinal Health high-pressure tests. Instead of stopping production, Halyard allegedly kept selling the gowns and making millions of dollars a month on those sales. According to Vezeau, the gowns were being Mggressively recommended for use by physicians working with Ebola. Halyard had hired Vezeau from Pfizer, Inc., where he had worked as Senior Product Manager on the Vfend Marketing Team from 1989 to 1992 and then was rehired in 2003. His Pfizer colleague was Catherine Brown, Senior Marketing Manager, 1996 to 2005. Both resigned in 2005. Their resignations came after they blew the whistle to the US government that Pfizer's off-label marketing Vfend, an antifungal cream for all purposes instead of the purposes for which it was creared, resulted in much tigher sales than were recorded and this is fraudulent action against Medicare and Medicaid. In May 2016, Halyard Health was the subject of an Anderson Cooper 60 Mimutes investigation. Michael Avenatti, a California attorncy, was the representative for a group of hospitals suing both Halyard and Kimberly-Clark for faulty performance of the gowns - sleeves falling off, strike-throughs, and ties falling off. Vezeau said that he had been at all the meetings of senior management when they were? informed of the failures of the gowns to pars the tests. In one test, 85 gowns were shipped out for resting: six of the gowns weren't rested because the sleeves were already so bad when they were taken from the package, they only tested 79 gowns. Avenatti stated that not including those six as failures with the other failures wasn't just fuzzy math; it was fraud, a criminal conduct. On the other side, Chris Lowery, COO, Halyard Health, told Cooper the test by Cardinal Health was an "extreme outlier "' and not consistent with Halyard's own laboratory tests. He said the allegations weren't based on facts. He also stated that the company had never received a report from-ahealth care profersional that they were infected because of a flaw in their products