ABSTRACT

Three industries appear to violate government regulations and laws more frequently than any others: they are the huge and powerful oil, auto, and pharmaceutical industries. This chapter presents a clear picture of serious ethical and legal breaches in three major US industries. Ethical issues in the oil industry involve the restriction of independent dealers, excessive profits, contrived shortages, pollution, misleading advertising, interlocking directorships, and inadequate research and development. The auto industry has been characterized by unnecessary style changes, deceptive advertising, unreliable and secret warranties, unfair dealer relations, and violations of safety standards. The pharmaceutical industry has been charged with encouraging drug use by subjecting physicians and the public to intensive advertising and promotional campaigns. Drug product research in some pharmaceutical companies, or by the drug research companies they use, may be biased, poor quality, and scant or even nonexistent.