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Dalkon Shield
+ Lateral Spikes
=
Incon Ring
A.H. Robins
A.H. Robins
4,000,000
possible lawsuits
306,931 pending lawsuits
A.H. Robins
Lawsuit Actions Total Possible Lawsuits
306,931 pending lawsuits
7%
93%
The Dalkon Shield Case
by
Anthony Chan
Ramdy Chau
Dawn Escobedo
Clair Hsieh
Wendy Tsui
Sophia Yung
SFU Business 303, Ethics
Spring 2011
[ˈsteɪkˌhəʊldə] (n.): a person, group, organization, or
system
who affects or can be affected by an organization's actions
Factors and changes which caused the ethical issues to Our choice of solution and
occur justification
Stakeholder
Issues Changes Alternatives Decision
s
Ethical issues identified in the Possible solutions to rectify
case situation
Owners/Shareholders Financial return
Government
Obedience to laws and regulations
(FDA)
Fair competition
High quality goods and
Women services
Value
Management of A.H. Efficiency
Robins Effectiveness
Physicians Ensure health and safety of
patients
Provide care & sound medical
advice
Stakeholder
Issues Changes Alternatives Decision
Too many people and not enough resources
Needs birth control which requires less effort
Population Control in Developing
Countries
Reliance on women for contraceptives
Stakeholder
Issues Changes Alternatives Decision
Increases risks of infection
Issues of the Intrauterine Devices (IUD)
Poor regulation by the FDA
Stakeholder
Issues Changes Alternatives Decision
Incomplete and inaccurate studies
Corporate Bias
False marketing
Mass exportation
Stakeholder
Issues Changes Alternatives Decision
A.H. Robins Company knew it was harming people with the sale of their
products but
still did it because it gave them profit. At the same time, the government also
knew it was wrong, but did not prevent it from happening.
Incomplete and inaccurate studies
Conflict of Interest
False marketing
Dr. Hugh Davis has a financial interest in the Dalkon Shield
Stakeholder
Issues Changes Alternatives Decision
Late nineteenth century America was marked by a rising professional class. Many roles that had been filled by
craftsmen or women trained in traditional methods for providing goods and services were increasingly filled by
members of these new experts. In particular, women came to rely, not on traditional methods for contraception,
but on the new technologies and methods made available by the medical profession (Grant, 9-10).
There were negative side effects from oral contraceptives back then. (birth-control pills) Women had the desire
to seek out better contraceptives that seemed to have no side effects and be effective as well.
At this time, there were over 70 IUDs on the market. Davis wrote a book and several articles promoting his
device over the others. IUDs were increasingly popular among physicians, because they were not associated
with the demonstrated adverse effects of the Pill and had a high "use-effectiveness" ratio (Grant, pp. 44-46).
The study was performed with 640 women subjects and, on average, these women participated in the study
for 5.5 months. There was a 60 percent discontinuation rate, and these data were not included in Davis' final
assessment. Davis instructed participants to use sperimcidal foam for added protection against pregnancy;
however, this was not disclosed in his published documents (Perry and Dawson, 33).
In 1976, a new Medical Devices amendment to the Food and Drugs Act required that companies demonstrate
the safety of IUDs before they could be put on the market (Mintz, pp. 114-115).
Environmenta
Societal Technological Governance
l
Stakeholder
Issues Changes Alternatives Decision
Chances
June
December
1970
1970 1972
Mid
Stakeholder
Issues Changes Alternatives Decision
June
1970contemplating the purchase of the Dalkon Shield
A. H. Robins
Delay the purchase of the Dalkon Shield
More time for conclusive reports, divert funds to other operations
Risk losing the opportunity to purchase Dalkon Shield
Purchase Dalkon Shield, wait for accurate results and implement changes
Results in a good product - improve brand recognition
Time consumption, increased costs
Purchase the Dalkon Shield and immediately sell it
Reduce costs
Potential risk for consumers
Stakeholder
Issues Changes Alternatives Decision
December
1970 his conflict of interest with A. H. Robins
Dr. Hugh Davis and
Hire another investigator other than Davis
No conflict of interest
Increased cost, Davis will not contribute
Remove Davis’ share within the company
No conflict of interest
Davis will not be motivated for development of the product
Let Davis contribute
The most knowledgable person will be contributing
Conflict of interest
Stakeholder
Issues Changes Alternatives Decision
Mid 1972
Sales decline of the Dalkon Shield within the US
Reevaluate their product
Maintain brand image
Increased time consumption and costs
Ignore the issues in the Dalkon Shield, sell internationally
Increase short-term sales
Spreads the problem internationally
Stakeholder
Issues Changes Alternatives Decision
Long-term profits and increase brand image
Dalkon Shield had problems itself
Complete current studies and implement changes before placing it onto the
market
Deontology: that judges the morality of an
an approach to ethics
action based on the action's adherence to a rule or
Plausible
rules.
Stakeholder
Issues Changes Alternatives Decision
Or maybe
comments
Do you have
questions
Thank
You
How about
concerns
