Executive Summary
The case study about controversies surrounding refecoxib (Vioxx) reveals a number of unethical practices on the part of the firm’s leadership. The first mistake of the top managers of the firm was the decision to release a drug into the market without thoroughly checking its side effects. The management then tried to deny the fact that their drug was harmful despite the evidence of numerous deaths and sufferings among is users. It forced the chief executive officer of the firm to resign after the drug was recalled from the market.
Facts Associated With the Case
Refecoxib, a medical product manufactured by Merck & Co., was approved for use as a prescription painkiller by Food and Drug Administration (FDA) on May 20, 1999 (Nesi, 2011, p. 63). It was considered more effective than other drugs in fighting acute pain and in treatment of osteoarthritis. The product was aggressively marketed both in the United States of America and in overseas markets. A research conducted by Bombardier was the first to raise alarm about a possibility of the drug increasing cases of heart attacks among its users (Topol, 2004, p. 22). However, the top leaders, especially its chief executive, explained to the relevant authorities that their drug was safe for its users (Rioux, Basser, & Jones, 2011, p. 73). In fact, the top management issued an advertisement stating that patients who used Vioxx were 4-5 times less likely to develop myocardial problems (Humphrey, 2012, p. 41). The reverse of this statement was actually true. FDA was forced to warn Merck against misleading advertisement about their product.
At the time when this warning was issued in April 2002, many other studies- including those that were sponsored by this firm- had confirmed that this drug increased myocardial problems among its users (Laureate Education, 2012, p. 85). A research by Topol (2004) specifically warned against the use of drug because of its negative effect on heart muscles. Instead of addressing the problem, the primary leaders of this firm introduced a label warning its customers that continued use of this product may increase chances of one developing cardiovascular problems (Genat & Robinson, 2010, p. 78). Some scholars have accused some of the primary leaders of the firm, specifically the chief executive officer, Mr. Raymond Gilmartin and the marketing director Mr. James Smith, of using dubious means to ensure that this drug remained in the market. When the drug was finally recalled, over 38,000 death cases arising directly from the use of the drug had been reported (Murray, 2011, p. 48). Hundreds of thousands other had reported cases of serious heart problems. The chief executive officer and other primary leaders had to resign.
Skills and Traits of the Primary Leaders in This Case
The case study reveals that primary top managers of this firm failed to demonstrate leadership skills when the problem arose. One of their prominent traits is denial (Mumford, Zaccaro, Harding, Jacobs, & Fleishman, 2000, p. 31). Even after sponsoring their own research and confirming the side-effects of the drug, these leaders still denied that the drug was dangerous (Nahavandi, 2014, p. 19). These leaders are also reactive instead of being proactive. Rather than looking for lasting solution, these leaders opted to look for ways of manipulating the relevant regulatory authorities as a way of defeating justice. They were corrupt and unconcerned about the well-being of the public. Their interest was only to get as much profit as possible (Murphy, 2015, p. 73).
Conclusion
The case study about refecoxib demonstrates that unethical business practices are harmful to the image of a firm. Leaders who fail to adhere to the set principles and code of conduct may pay dearly for their action. The top officers at this firm had to resign.
References
Genat, B., & Robinson, P. (2010). New competencies for public health graduates: A useful tool for course design. Australian and New Zealand Journal of Public Health, 34(5), 513–516.
Humphrey, R. (2012). Effective Leadership: Theory, Cases, and Applications: Theory, Cases, and Practice. Oxford: Oxford University Press.
Laureate Education. (2012). Leadership theory: Skills approach. Baltimore: Wiley & Sons.
Mumford, M., Zaccaro, S., Harding, F., Jacobs, O., & Fleishman, E. (2000). Leadership skills for a changing world: Solving complex social problems. The Leadership Quarterly, 11(1), 11–35.
Murphy, M. (2015). Leadership IQ. Test Your Leadership: Are You a 100% Leader? Web.
Murray, A. (2011). Leadership styles. Wall Street Journal’s Guide to Management. Web.
Nahavandi, A. (2014). The art and science of leadership. Upper Saddle River: Pearson.
Nesi, T. (2011). Poison Pills: The Untold Story of the Vioxx Drug Scandal. New York: McMillan.
Rioux, M., Basser, A., & Jones, M. (2011). Critical perspectives on human rights and disability law. Leiden: Martinus Nijhoff Publishers.
Topol, E. (2004). Failing the public health-Rofecoxib, Merck, and the FDA. The New England Journal of Medicine, 351(17), 1707–1709.