- May 19, 2020
The Turing Pharmaceutical Scandal/FIFA Scandal (Soccer)
TheTuring Pharmaceutical Scandal/FIFA Scandal (Soccer)
TheTuring Pharmaceutical Scandal (Soccer)
Pharmaceuticalcompanies suffer when they exploit patients to make supernormalprofits. An example of how exploitation occurs is the TuringPharmaceutical Scandal (Lee,2016).The scandal negatively affected the pharmaceutical companies’reputation and stakeholders. The government had to come in toestablish why the company overpriced Daraprim,a drug used to treat infections.Government intervention worried investor as most feared that theprobe into the scandal would lead to price regulations in the biotechindustry. The fear caused share prices for most companies in thebiotech industry to drop. Various organizations wrote open letters toTurning pharmaceutical company demanding that it drops the price ofDaraprim,which it had increased by almost 5000 percent (Lee,2016).Turing final bowed to pressure and reduced the price of Daraprim. TheTuringpharmaceutical scandal supports the argument that a business needs toconsider the impacts of its policies on stakeholders, the market, andregulators before implementing them. Also, a company suffers when itengages in exploitative practices to make supernormal profits.
Bribery,in soccer, affects all stakeholder including the football regulationbody FIFA. The officials of the soccer regulation body engaged incorruption. FIFA officials accepted bribes and unfairly awarded the2018 and 2022 World Cups to Russia and Qatar respectively (Owen,2015). The regulatory body, FIFA, terribly failed in its fightagainst corruption. The former vice president Jack Warner launderedover $10 million he received from the organizers of the 2010 SouthAfrican World Cup (Owen, 2015). To curb the corruption, and restorestakeholder confidence in FIFA, the corrupt officials in theregulatory body need to face prosecution. Loopholes also need to besealed to avoid countries bribing the body to host the World Cup. Thescandal support the argument that even regulatory bodies are notimmune to corruption.
Lee,J. 2016. THE VOLKSWAGEN AND TURING SCANDALS: LESSONS LEARNED. ACCAGlobal.(2016, March 9). Retrieved from http://www.accaglobal.com/gb/en/student/sa/features/vw-turing.html
Owen,G. 2015.Russiaand Qatar may lose World Cups if evidence of bribery is found(2015,June 7). TheGurdian, 610(1050).Retrievedfrom https://www.theguardian.com/football/2015/jun/07/russia-qatar-lose-world-cups-if-bribery-found-fifa