Question
The managers of taylors pharmaceuticals inc received a report that the corporation's latest weight loss drug biomiocin was having unpredicted side effects that caused problems
The managers of taylors pharmaceuticals inc received a report that the corporation's latest weight loss drug biomiocin was having unpredicted side effects that caused problems for several people. The management of taylor ordered the accounting department to determine how much it would,cost to recall the biomiocin now,on the market, suspend manufacturing and conduct more tests on tje drugs safety. The accountants reported that it would be more cost effective to,simply leave the drug on the market and pay off anyone who might be injured and who might bring a lawsuit against the company. Keeping the drug on the shelves would allow the corporation to continue to paybdividenda to the shareholders. In contrast if the drug were taken off of the market, the payment of dividends would be suspended pendinf the outcome of the new testing program. What should the company do? Is it ethical to leave the drug on the shelves? Imagine that you are on the Board of Directors, what is your position and what advisewould you give to the company? Why?
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