Pharmaceutical company Pfizer expects to earn up to US $ 26 billion from the sale of the Kovid-19 vaccine this year. This profit for the first quarter of 2021 is apparently 44% higher than a year ago. Likewise, Moderna is expected to earn US $ 18.4 billion. The company will publish its first profit this year. This naturally raises the question in the minds of some whether it is fair that these big pharmaceutical companies are making a profit in this time of pandemic and that too when their competitors Johnson & Johnson and AstraZeneca try to sell their vaccines for non-profit. lucrative. Has committed.
For moral reasons, it can be said that in this era of epidemic, with many industries facing recession due to foreclosure and social restrictions, then to what extent is it justified to make such a huge profit? . On the other hand, one could argue that drug makers have a business and social responsibility to use their profit model while making vaccines available to the world. In fact, corporate law also supports this point. There has long been a difference of opinion among people researching corporate law.
“The creation of profits is an essential objective of the company”
On the one hand, there are those who see the company as a profit machine for shareholders. On the other hand, there are those who believe that profit is an essential objective of the company, the company also has responsibilities towards its employees, the environment, its community and the society. Those of us who subscribe to the latter view do so in part because it has been supported by “common law” around the world since the 19th century. These include countries such as Great Britain, Ireland, the United States, Canada and Australia, where the decisions of the highest courts are the source of law and are binding on other courts. .
This idea recognizes the company as an entity separate from its shareholders. This approach to corporate responsibility is not only legally correct, it is also a socially responsible approach to business as it recognizes the broader consequences of the “profit at all costs” mentality. It takes into account the human aspect of the business, such as the impact on workers and local communities when factories close and production is outsourced to locations with lower (and often less regulated) labor costs. ).
This is why it is important to earn money with the corona vaccine
Fully recognizing the essential role of shareholders in providing enterprises with capital for the expensive research and development of necessary products, as well as the contribution of employees who put their talents and labor to the service of the provision of goods and services to the society. Considering that the company cannot properly fulfill its role without each of the stakeholders and taking into account the interests of all these stakeholders, a policy is drawn up. And it looks like Pfizer and Moderna have done the same.
Take a look, instead, it would have been more troubling if their management teams had chosen not to work on it due to the huge expense for the preparation of the Kovid-19 vaccine. Not only that, but the company also risked that if its efforts to manufacture the vaccine failed, the company’s reputation could be severely damaged.
Author-Michael James Boland, University College Cork