Org Behavior : Submission Preview

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Sofie Micklisch

Organizational behavior discussion

Florida SouthWestern State College

Drugs are not the cheapest item on the market to produce, but they are certainly not the most expensive item to produce (Koons, 2015). I have bought medication that was completely overpriced before, even with insurance. It cost less than half of what I paid in other countries with insurance. Drug companies make big money on their medications, and when one company decided to increase prices the other follows the lead (Koons, 2015). If the prices of drugs are increased it could lead to more crimes being committed because the people who need them simply will not have the money to afford them (Caulkins, Dworak, Feichtinger, & Tragler, 2000). They are in constant competition with one another over who has the higher prices or who earn more revenue.

Three concepts of organizational behavior that seem to come forth in this article are ethics, corporate and social responsibility, and social capital (Kinicki & Fugate, 2012). Ethics is a huge question in this article. People could argue if what they are doing is really ethical when it comes down to the consumer (Kinicki & Fugate, 2012). How much would a customer be willing to pay, and is it right to charge them that amount? Social capital plays a role in this article because the drug companies have to have some sort of relationship or trust with one another (Kinicki & Fugate, 2012). If one company wants to raise prices, the other company should follow because it is the trusting thing to do. Corporate and social responsibility can be described as, “corporations have obligations to others, beyond shareholders and beyond the bounds of law or contract (Kinicki & Fugate, 2012, p. 19).” If a company raises the prices in this article it could mean that they had another obligations to someone else. They could have expectations that they need to meet.

References

Koons, C. (2015). Pfizer raises prices on 133 drugs this year, and it’s not alone. Bloomberg Business. Retrieved from http://www.bloomberg.com/news/articles/2015-11-04/vw-sinks-deeper-into-crisis-as-scandal-spreads-to-more-cars

Caulkins, J., Dworak, M., Feichtinger, G., & Tragler, G. (2000). Price-raising drug enforcement and property crime: a dynamic model. Journal of Economics, 71(3). Retrieved from http://db07.linccweb.org/login?url=http://search.proquest.com.db07.linccweb.org/docview/1012218342?accountid=10674

Kinicki, A. & Fugate, M. (2012). Chapter 1: Needed: People-centered managers and workplaces. Organizational behavior: Key concepts, skills, and best practices. New York, NY: McGraw-Hill Companies, Inc.

Sofie Micklisch
Organizational behavior discussion
Florida SouthWestern State College
          Drugs are not the cheapest item on the market to produce, but they are certainly not the most expensive item to produce (Koons, 2015). I have bought medication that was completely overpriced before, even with insurance. It cost less than half of what I paid in other countries with insurance. Drug companies make big money on their medications, and when one company decided to increase prices the other follows the lead (Koons, 2015). If the prices of drugs are increased it could lead to more crimes being committed because the people who need them simply will not have the money to afford them (Caulkins, Dworak, Feichtinger, &amp; Tragler, 2000). They are in constant competition with one another over who has the higher prices or who earn more revenue.
            Three concepts of organizational behavior that seem to come forth in this article are ethics, corporate and social responsibility, and social capital (Kinicki &amp; Fugate, 2012). Ethics is a huge question in this article. People could argue if what they are doing is really ethical when it comes down to the consumer (Kinicki &amp; Fugate, 2012). How much would a customer be willing to pay, and is it right to charge them that amount? Social capital plays a role in this article because the drug companies have to have some sort of relationship or trust with one another (Kinicki &amp; Fugate, 2012). If one company wants to raise prices, the other company should follow because it is the trusting thing to do. Corporate and social responsibility can be described as, “corporations have obligations to others, beyond shareholders and beyond the bounds of law or contract (Kinicki &amp; Fugate, 2012, p. 19).” If a company raises the prices in this article it could mean that they had another obligations to someone else. They could have expectations that they need to meet. 
References
Koons, C. (2015). Pfizer raises prices on 133 drugs this year, and it’s not alone. Bloomberg Business. Retrieved from <a href="http://www.bloomberg.com/news/articles/2015-11-04/vw-sinks-deeper-into-crisis-as-scandal-spreads-to-more-cars">http://www.bloomberg.com/news/articles/2015-11-04/vw-sinks-deeper-into-crisis-as-scandal-spreads-to-more-cars</a>
Caulkins, J., Dworak, M., Feichtinger, G., &amp; Tragler, G. (2000). Price-raising drug enforcement and property crime: a dynamic model. Journal of Economics, 71(3). Retrieved from <a href="http://db07.linccweb.org/login?url=http://search.proquest.com.db07.linccweb.org/docview/1012218342?accountid=10674">http://db07.linccweb.org/login?url=http://search.proquest.com.db07.linccweb.org/docview/1012218342?accountid=10674</a>
Kinicki, A. &amp; Fugate, M. (2012). Chapter 1: Needed: People-centered managers and workplaces. Organizational behavior: Key concepts, skills, and best practices. New York, NY: McGraw-Hill Companies, Inc.