Maximizing profit theory
Maximizing profit is a theory of social responsibility, which states that firms should put up factories in places where they will achieve maximum profit. The company should consider the characteristics of the location including transportation cost, labor cost, population and marketing among others. The company is not accountable to the public since its only interest is in maximizing on profit (Gregory-Williams et al, 2004).
The company’s actions appear to be consistent with this theory because the company used a fundamental component of marketing approach through positioning the drug in perceptual space. They came up with the weight loss drug that is in high demand. The marketing strategy is also effectual. The company promotes the drug to the public using influential expressions such as the advantages that people have when they are slim (Gregory-Williams et al, 2004).
However, the company’s actions may be inconsistent with this theory because the company put in considerations the effect of the drug, which is conflicting with the maximizing profit theory. This is because they should only be interested in the profit they get and not on the effect, the drug has on an individual (Gregory-Williams et al, 2004).
The company’s actions will be more consistent with this theory if it manufactures the drug and avoids mentioning the adverse effect of the drug. The drug should be for any person who is overweight and not specifically for severely overweight people. They should make the drug readily available and not on doctor’s prescription since their aim is to earn a profit (Gregory-Williams et al, 2004).
Moral minimum theory
Moral minimum is a social responsibility theory, which states that a company should make a profit but avoid causing damage to others. A company fulfils its duty of social responsibility by avoiding and correcting the harm, it has caused (Jeurissen & Rijst, 2007).
The company’s actions appear to be consistent with this theory because it placed the drug under the prescription of the doctor to prevent people from abusing it. It specified the effects of the drug and only recommended it for severely overweight individuals (Jeurissen & Rijst, 2007).
However, the company’s actions may be inconsistent with this theory because it was more interested in making a profit than the individual’s feelings. It used words to intimidate the overweight people by emphasizing on the beauty that result when one is slender. The company does not inform people on the side effects of the drug through its advertisement but instead uses only appealing words (Jeurissen & Rijst, 2007).
The company’s actions will be more consistent with this theory if it comes up with a drug that has less or no side effect. The advertisement should include the dangers involved when one uses the drugs. It should also bring to the public’s knowledge the quantity of the drug that one should use to prevent doctors giving large doses (Jeurissen & Rijst, 2007).
Stakeholder Interest theory
Stakeholder Interest is a theory of social responsibility, which states that the moral and ethical value in business management should the fundamental concern of any company. In order to be successful, the manager should maintain the interests of employees, shareholders, suppliers, customers and the community (Phillips, 2003).
The company’s actions appear to be in consistent with this theory because the company has put the interest of its customers into consideration through manufacturing a drug that will benefit them. It has also put the drugs under the doctor’s prescription for ethical value (Phillips, 2003).
However, the company’s actions may be inconsistent with this theory because it has failed to sustain the moral values through coming up with a drug that might make the overweight people develop a low self-esteem (Phillips, 2003).
The company’s actions will be more consistent with this theory if it comes up with a better way of advertising its drug such as the health effects of being overweight. It should come up with measures to ensure that doctors give the quantity of the drug (Phillips, 2003).
References
Gregory-Williams, J., Williams, B., & Williams, B. (2004). Trading chaos: Maximize profits with proven technical techniques. Hoboken, N. J: J. Wiley.
Jeurissen, R., & Rijst, M. W. (2007). Ethics in business. Assen, The Netherlands: Van Gorcum.
Phillips, R. (2003). Stakeholder theory and organizational ethics. San Francisco, Calif: Berrett-Koehler.
