Free trade is built on the principle of competition, which forces most industries to develop new ways to attract buyers and generate profits. However, the pharmaceutical industry should be the exception to this rule as people always need medicines, and their costs can impede treatment. The pharmaceutical industry is difficult to perceive as ethical as its pricing policy, medication approval, and promotion methods can often harm consumers.
The pharmaceutical industry has a duty to protect consumers, but it traps them. First, the prices of most medicines, especially in the US, are too high for most people due to patent law, resulting in increased morbidity and mortality (Thomas, 2017). For example, insulin, which is necessary for people with diabetes, costs several times more in the US than in Canada. Second, companies often do not disclose information about drug testing results and may hide details, which in some cases can lead to dangerous health consequences (Thomas, 2017). Finally, pharmaceutical companies often use a gift-giving approach to stimulate healthcare professionals to offer patients particular medication and increase sales (Marmat et al., 2020). Thus, the buyers are practically powerless because they are forced to buy prescribed medication, the cost of which they cannot influence and which can potentially harm their health.
However, companies cannot cater to their interests and the interests of consumers. First, the operating costs make it unprofitable for companies to abandon the medicine, even if it has significant side effects as it would cause them losses. Second, government incentives provide them with a monopoly, which dictates high prices (Thomas, 2017). Third, market competition and high operational costs force companies to use unethical promotion methods to make a profit. Consequently, companies will be able to change their approach only after changing the government system affecting trade in the industry.
In conclusion, consumers’ bias towards the pharmaceutical industry is fair as companies virtually deprive them of their choice and the ability to influence products. At the same time, pharmaceutical companies are active in this way because of policies that create disadvantageous conditions to promote customers’ interests. Consequently, consumers have reasons to perceive pharmaceutical companies negatively, even if their actions are dependent mainly on external conditions.
References
Marmat, G., Jain, P., & Mishra, P.N. (2020). Understanding ethical/unethical behavior in pharmaceutical companies: A literature review. International Journal of Pharmaceutical and Healthcare Marketing, 14(3), 367-394. Web.
Thomas, R. (2017). Pharmaceutical industry ethics. Seven Pillars Institute. Web.