There appears to be an interesting pattern of corporate behavior that seems to evolve over time and accelerates with the need for executive incentive compensation driven financial performance (sales growth). This behavior is especially noticeable in larger organizations and is government protected if your behavior is within a large corporation (too big to fail).
Whenever there is a need or demand for more robust financial returns, the evolution advances another step. Here is the progression of behavior that seems to transpire in the context of Pharmaceutical industry executives but it probably applies to other industries as well (think investment banking). So, here’s how it goes…
We have a great product that really can help people. We have the resources to make sure physicians and patients know about it, know how to use it appropriately and safely. We want to be credible in the market and trusted so let’s make sure we are ethical about our marketing and sales.
This evolves to…
There is a much bigger market for this product than we are currently capturing … we’ve probably been to conservative in our promotion so what do we need to do to grow this product even faster?
The plan sounds good, as long as we have the regulatory language to market it that way.
It looks like it should be ok from a regulatory perspective if we present it like this so we can argue it is our interpretation of the package insert language.
Still need more sales…
OK, it may be questionable from a regulatory perspective but is it legal? We can deal with a warning from the FDA if it comes and we’ll probably end up in lengthy but inconsequential litigation to determine if it really is illegal … so let’s go with it.
Wanting more sales…
Nobody has called us on our marketing and sales activities yet so what else can we do?
Ok, not sure if this is really illegal but even if it is … what are we facing here? We might have to pay a fine or something … but nobody’s going to jail.
Notice how fast “ethical” gets dismissed without much thought.
In the end, money and greed protected in the labyrinth of “Big Corporate” decision making drive this scenario. For those who want less regulation and less legislation, you can expect even more aggressive business practices. Without strict enforcement and personal (not corporate) accountability with behavior deterring consequences, regulation and the law are meaningless. firstname.lastname@example.org