Executive Development Program
An Ounce of Ethical Prevention

As business leaders, it is essential to consider all possible ethical ramifications of every product introduction, new market entry, or strategic move, Caplan told a recent Executive Development Program class. "Early intervention is critical. Ethics isn't just about auditing the books. Having a strict ethical code of conduct is a way managers can build and cement trust and loyalty. When done right — not just as frosting on the cake — a corporate ethics policy can have an impact on productivity."

By taking a proactive stance toward ethics, Pfizer was able to navigate through a minefield of potential ethical problems to launch its blockbuster drug, Viagra. The company knew early on that they could not treat this product like other drugs in their pipeline.

"They had never had a drug in the sexual health category and were aware that it could very easily be seen to be promoting promiscuous lifestyles," Caplan said. "They wanted me to test their defenses and tell them everything that could go wrong." He calls this approach to ethics "hacking" — like the use of computer hackers to test the vulnerability of information systems — and he easily listed between 40 and 50 problems such a drug could create.

However, none of these problems materialized, perhaps thanks to the company's early and rigorous attention to ethical concerns. With Caplan's help, the company had written up policies and solutions to problems that it never had to implement. Viagra is now the most recognized brand name in the world, promoted by former Presidential candidate Bob Dole.

The Stages of an Ethical Analysis

The difference in how DuPont and Monsanto handled the debate over genetically modified organisms (GMOs) provides another illustration of the importance of proactive ethical analysis. In linking food-based GMOs to one of its pesticide products, Monsanto felt its research backed up the safety of GMOs and refused to consider objections. DuPont, on the other hand, conducted what Caplan calls an "ethical analysis" prior to introducing GMOs in its products. It was DuPont's proactive stance that helped it weather the public debate in a stronger position than Monsanto.

While not wholeheartedly embracing required labeling, DuPont instead is reframing the argument as one of availability of information, Caplan said.

Prior to deciding to use GMOs, DuPont conducted an ethical analysis — the first step of which involved gathering scientific facts to establish what Caplan calls a "value taxonomy." For instance, in the GMO labeling debate, some of the values that emerged from examining the facts included:

  • Use of GMOs can result in lessened dependence on pesticides that are harmful to the environment.

  • Labeling gives people the freedom to make informed choices about what they are eating.

  • Labeling would show consumers that a company is socially responsible.

From this fact-finding, DuPont determined that the most important value was giving people the freedom to make informed choices. Therefore, while not supporting widespread (and onerous) mandatory labeling of individual products, DuPont has reframed the labeling debate into one about information accessibility. This is the stage of the ethical analysis Caplan identifies as policy formation.

As a result of this analysis, DuPont is working on encouraging the food industry to create a central database where consumers can look up what chemicals or other products were used in the production of foods.

"DuPont will be able to get ahead of this debate because they've done an ethical analysis," Caplan said. "At Monsanto, no one treated GMOs as an ethical problem. It's inattention like this that is harmful."

The Neuroscience Revolution

In addition to anticipating potential ethical problems, managers also have to be aware of advances in science and the ways they change the ethical terrain. For example, despite all the publicity surrounding genomics, Caplan sees advances in neuroscience as the bigger ethical challenge in the near future. "There's a revolution occurring in neuroscience. We can now map the brain in real time. With genetics, it's actually a very long link between connecting a behavior to a certain gene someone has. But with today's brain mapping, we can instantly see areas of the brain literally light up when they become active."

Employees in the future may use their brain scans as a defense against being fired, Caplan said. "If they have a medical condition such as ADD, then the ethics of firing someone who is not performing up to par could become a situation where you are firing someone with a medical condition." The military now uses a drug that can keep its troops awake and alert for far longer than amphetamines and without the side effects, Caplan said. What happens if a junior executive begins taking such a drug to advance his or her career, he asked. "What will drugs like this do for a company's ‘drug-free' workplace policy?"

Make Ethics Part of the Culture

Caplan stressed that ethical analysis needs to be ingrained in the company's culture. "You need to make sure that your ethics become part of your corporate culture. The company's ethics need to be transmitted throughout the organization." Otherwise, pitfalls that were avoided once before may not be missed a second time. "None of the current marketing people at Pfizer were there when I was consulting on the Viagra introduction. Notice that the ads now show younger, more athletic types. It's starting to take on a lifestyle approach rather than a response to a medical problem."

    

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