Sparrow Pharmaceuticals is the maker of several popular drugs used to treat high blood pressure and arthritis. Over time, the company has developed a positive relationship with many of the patients who use its medications through a quarterly newsletter that offers the latest information on new medical research findings and general health and fitness articles. The company just has been acquired by a group of investors who also own Soothing Waters Hot Tubs and Spas. The marketing director for Soothing Waters would like to use Sparrow’s mailing list for a direct-mail promotion.

Ethics Questions:

What should Sparrow Pharmaceuticals do?
Do you think it is ethical to use customer information across multiple divisions of the same company? Explain.
To which marketing management philosophy do you think the marketing director for Soothing Waters subscribes? Explain.
Does the AMA Statement of Ethics address the use of the customer information by multiple divisions of the same company? Go to http://www.marketingpower.com and review the statement. Then write a brief paragraph on how the AMA Statement of Ethics relates to Sparrow Pharmaceuticals’ dilemma.

(To locate the Statement of Ethics students would go to http://www.marketingpower.com and in the top right corner they would select, “About AMA,” and underneath “About AMA,” there are several Gray tabs to choose from, select “Statement of Ethics,” and begin to review the Statement of Ethics.)

preview of the answer…

In light of the fact that Sparrow Pharmaceuticals has just been acquired by Soothing Waters, it is a safe conclusion that any possible acceptable use policy that Sparrow may have does not extend to information sharing. As a consequence, Sparrow Pharmaceuticals must not share the mailing list with Soothing Waters because it would be unethical to do so without first seeking consent from the involved clients. It necessarily follows that I deem it unethical to use customer information across multiple divisions of the same company without an appropriate accepted use policy in place that the customers have agreed to, or without informing them of the same and obtaining their approval before sharing. This stand is premised…

APA 471 words