+ + Lateral Spikes = = Dalkon Shield Incon Ring

++ Lateral Spikes ==Dalkon Shield

Incon Ring

60%60%

A.H. Robins

A.H. Robins

306,931 pending lawsuits

4,000,000possible lawsuits

306,931 pending lawsuits

A.H. Robins

The Dalkon Shield Caseby

Ramdy ChauAnthony Chan

Sophia YungWendy TsuiClair Hsieh

Dawn Escobedo

SFU Business 303, Ethics

Spring 2011

AlternativeAlternativess

DecisionDecisionChangesChangesIssuesIssuesStakeholdeStakeholdersrs

[ˈsteɪkˌhəʊldə] (n.): a person, group, organization, or systemwho affects or can be affected by an organization's actions

Ethical issues identified in the case

Factors and changes which caused the ethical issues to occur

Possible solutions to rectify situation

Our choice of solution and justification

DecisionDecisionStakeholdeStakeholdersrs

IssuesIssues ChangesChanges AlternativeAlternativess

Owners/Shareholders

Women

Government (FDA)

Management of A.H. Robins

Physicians

Financial return Obedience to laws and

regulationsFair competition

High quality goods and services

Value

EfficiencyEffectiveness

Ensure health and safety of patientsProvide care & sound medical

advice



Population Control in Developing Countries

Too many people and not enough resources

Needs birth control which requires less effort

Reliance on women for contraceptives



Issues of the Intrauterine Devices (IUD)

Increases risks of infection

Poor regulation by the FDA



Corporate Bias

False marketing

Incomplete and inaccurate studies

Mass exportation



False marketing

Incomplete and inaccurate studies

Conflict of Interest

Dr. Hugh Davis has a financial interest in the Dalkon Shield

A.H. Robins Company knew it was harming people with the sale of their products but

still did it because it gave them profit. At the same time, the government also knew it was wrong, but did not prevent it from

happening.



GovernanceGovernanceSocietalSocietal EnvironmenEnvironmentaltal

TechnologicTechnologicalal

Late nineteenth century America was marked by a rising professional class. Many roles that had been filled by craftsmen or women trained in traditional methods for providing goods and services were increasingly filled by members of these new experts. In particular, women came to rely, not on traditional methods for contraception, but on the new technologies and methods made available by the medical profession (Grant, 9-10).

SocietalSocietal

There were negative side effects from oral contraceptives back then. (birth-control pills) Women had the desire to seek out better contraceptives that seemed to have no side effects and be effective as well.

TechnologicTechnologicalal

EnvironmenEnvironmentaltal

At this time, there were over 70 IUDs on the market. Davis wrote a book and several articles promoting his device over the others. IUDs were increasingly popular among physicians, because they were not associated with the demonstrated adverse effects of the Pill and had a high "use-effectiveness" ratio (Grant, pp. 44-46).

GovernanceGovernance

The study was performed with 640 women subjects and, on average, these women participated in the study for 5.5 months. There was a 60 percent discontinuation rate, and these data were not included in Davis' final assessment. Davis instructed participants to use sperimcidal foam for added protection against pregnancy; however, this was not disclosed in his published documents (Perry and Dawson, 33).

In 1976, a new Medical Devices amendment to the Food and Drugs Act required that companies demonstrate the safety of IUDs before they could be put on the market (Mintz, pp. 114-115).



June 1970December

1970Mid 1972

3Chances



June 1970

A. H. Robins contemplating the purchase of the Dalkon Shield

Delay the purchase of the Dalkon Shield

Purchase Dalkon Shield, wait for accurate results and implement changes

Purchase the Dalkon Shield and immediately sell it

More time for conclusive reports, divert funds to other operations

Risk losing the opportunity to purchase Dalkon Shield

Results in a good product - improve brand recognition

Time consumption, increased costs

Reduce costs

Potential risk for consumers



December 1970

Dr. Hugh Davis and his conflict of interest with A. H. Robins

Hire another investigator other than Davis

Remove Davis’ share within the company

Let Davis contribute

No conflict of interest

Increased cost, Davis will not contribute

No conflict of interest

Davis will not be motivated for development of the product

The most knowledgable person will be contributing

Conflict of interest



Mid 1972Sales decline of the Dalkon Shield within the US

Reevaluate their product

Ignore the issues in the Dalkon Shield, sell internationally

Maintain brand image

Increased time consumption and costs

Increase short-term sales

Spreads the problem internationally



Deontology:

Dalkon Shield had problems itselfComplete current studies and implement changes before placing it

onto the market

Long-term profits and increase brand image

Plausiblean approach to ethics that judges the morality of an action based on the action's adherence to a rule or rules.

ThankYou

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+ + Lateral Spikes = = Dalkon Shield Incon Ring