1. What drove Merck to develop, release, and recall Vioxx? Did this coincide with their core values? Why or why not? Did their business definition change? Explain.
2. What suggestions can you provide for Merck in future drug releases to enhance its social responsibility reputation?
3. What ethical judgment did Merck use in its decision making?
This case illustrates Merck's role in the once highest selling painkiller, Vioxx, recall. The main focus of the case is on how Merck's reputation and core values, their intensity, drive, and arrogance were instrumental in their actions regarding Vioxx. Once pharmaceutical giant and ranking fourth in pharmaceutical sales among heavy competition, Merck enjoyed a reputation as one of the most ethical and socially responsible drug companies. With a commitment to research and development, giving away drugs to underdeveloped countries, and values of recognizing that medicine is for people not for profit, Merck was recognized as a miracle and admired company. Merck's development of the blockbuster drug, Vioxx, and Merck's subsequent recall have been called into question on many accounts-The Justice Department, the SEC, and individuals. While the FDA approved the drug, they felt subjected and pressured to bring drugs to the market and required Merck to add warning labels for Vioxx. The pharmaceutical industry of which Merck is member has also been questioned for its financial support role in promoting political agendas regarding drug related issues. Merck spent millions in marketing Vioxx and knew about cardiovascular risks in its development stage. Litigation costs continue to rise concerning the impact of Vioxx on the market.