Deviance in the Corporate World

There is much deviant behavior in the corporate world that is both harmful to the individual and the public at large. Examples of such behavior includes cutting corners to make an extra dollar, ignoring worker’s safety and benefits, or advertising products to be ideal when they can be harmful in various ways. This essay will outline four major industries in the corporate world that have either engaged in deviant behavior in the past, or continue such activities today.

One such deviant industry in the United States is the 77 billion dollar pharmaceutical industry that takes up roughly ten percent of all the medical costs in the United States. In 1992, this industry recorded 10 billion dollars in profits on 76 billion dollars in sales. This is a 13 percent profit margin. With the continued growth in population and the increasing age of the baby boomer generation, profits must continue to rise. These companies claim that it costs approximately 230 million dollars to bring a new drug to the market, however many remain skeptic and believe the real reason for such cost is strictly profit margins.

Drug companies differ from other buyer-seller relationships in the business world. As far as selling medication goes, the decision of purchase is not made by the buyer; but rather remains the prescribing doctor’s discretion. Many pharmaceutical firms pay thousands of dollars to doctors in order to convince them to prescribe their drugs. In the office, doctors only prescribe what they know best, therefore drug firms do all they can to familiarize doctors with their own expensive brand name medications. One of the problems with this trend is that some of the drugs these companies are pressing upon doctors actually contain the same chemicals as generic drugs. Yet many of these major pharmaceutical companies claim their higher price is justified.

In 1978, ABC’s 20/20 investigative news television program visited the Mylan Pharmaceutical Company. While touring the facility, they came across an Erythromycin tablet machine. While observing pills in the completion area of the machine, 20/20 journalists noticed many of the pills being were being dyed different colors; some pink, others yellow and a number orange. The pills were all the same and later investigation showed they were being charged at different prices. This is only one of many examples of deviant behavior present in today’s pharmaceutical companies.

Another major concern of many U.S. citizens is what to do if their insurance company ever tells them they can no longer receive the Medicare they require. People in the United States are continuously denied the medical insurance they need no apparent reason what so ever. Insurance companies can refuse taking on new clients if there is as much as one flaw in their medical histories. When an individual is insured and is unfortunate enough to undergo a surgery, insurance companies will conduct investigations in order to try and find something that person didn’t include upon signing up. Through any means necessary many of the health insurance companies of America try their hardest to deny people the care they need. The less they have to spend, the more money they get to make. Some Canadians don’t even want to go on a vacation to someplace in the United States without purchasing health insurance for the trip first. A single accident could ruin one’s financial standing for the rest of their life. Hundreds of people across the United States suffer and even die from not being able to afford the medication they need.

Misleading advertising is another major issue in the drug industry. In 1992, health professionals examined over 150 full page ads for drugs in various medical journals. Ninety percent of them violated the drug FDA standards in various ways. Companies wish to produce increasing amounts so that profits will inflate. Advertising is an excellent way to do this.

For most companies the goal is to sell the product, and if stretching the truth will do this, many companies will.

In the automobile industry, General Motors in 1929 did not want to include safety glass in Chevrolet trucks. Ford was already installing these newly discovered safety precautions and suggested General Motors do the same thing. However, GM declined that request by explaining that if the company plans to put money in to something new like that, they’ll find better things to invest in. Due to profit, a greater risk of death and serious injury was looked past.

The automobile industry has continuously refused to use newer types of safety devices due to the outcome of possible affected sales. The government insisted that safety could be improved simple by adding a passive restraint such as an airbag as standard equipment. A study done by Allstate insurance revealed that airbags would reduce occupant crash deaths