Transcript Moral Responsibility - Santa Clara University

*0
*
The Expanding Circle
of Moral
Responsibility
Manuel Velasquez, Santa Clara University
Katie Buck, Affymetrix
*0
*
Moral Responsibility
• Two Meanings:
– Obligation or Duty
– Culpability: Being to blame for an injury
• Culpability: Agent is morally responsible for
an injury when:
– Agent caused it
– Agent knew it
– Agent could have
prevented it
*0
*
Traditional Extent of Corporate
Moral Responsibility
• Traditionally:
– Company is morally responsible for injuries it
inflicts on other parties
– Provided:
• it caused the injuries itself,
• it knew it was causing
those injuries, and
• it could have prevented
the injuries
*0
*
Expansion of Downstream Moral
Responsibility
• During Second half of 20th Century
– Company is held responsible for injuries
users of its products inflict on themselves
while using the company's product
(product liability)
• Provided: company knew about it, and
could have prevented it.
– Company is also held responsible for
injuries users inflict on themselves using
defective product
• Even if: company did not know about
it, and could not have prevented it (strict
liability)
*0
*
Expansion of Upstream Moral
Responsibility
• Last 20 years:
– Companies also held responsible for injuries its
suppliers inflict on third parties (e.g., employees).
• Most famous: Nike "sweatshops"
– Here: Nike perceived to be an indirect cause,
knew or should have known what was going on,
and could have prevented it.
*0
*
Expansion of Downstream Moral
Responsibility
• And, Last 20 years:
– Companies increasingly held responsible for
injuries their customers inflict on third parties using
the companies’ products.
– Examples:
• Gun manufacturers
• Taverns, Bars
serving alcohol
• Manufacturers
of computers
*0
*
Two Main Issues
-To what extent is a company morally
responsible for how customers use products,
i.e., for injuries customers might inflict on third
parties using its products?
-How can company minimize its exposure to
this kind of moral responsibility?
– After the fact: publicists, lawyers
– Before the fact: monitor customer sales, refuse to
sell if needed.
• Gun sales laws
• Limiting alcoholic beverage sales
*0
*
Biotech Industry
• Affymetrix is dealing with these
• Products can be used to perform genetic
analyses. Information gained by analyses
can be used in various ways, some of which
have high potential for injury.
• Company uses an “Ethics Advisory Board”
to help evaluate and monitor customer uses
of its products.
*0
*
Affymetrix
• A spin-off of Affymax
– Affymax (founded 1988 by Alejandro
Zaffaroni, sold to Glaxo, sold to private investors
in 2001) tested compounds for their potential
use as drugs on miniature chips.
• Affymetrix, the spin-off, was founded by
Steve Fodor & A. Zaffaroni
– Made miniature chips containing thousands of
samples of DNA that allow users to analyze
thousands of pieces of genetic information
simultaneously
*0
*
Affymetrix
History
• 1989: Affymax Research Institute
created as startup inside Affymax,
research team led by Steve Fodor
• 1991: In February S. Fodor &
research team publish report in
Science on using photolithography
to embed biochemical compounds
on silicia-based chips.
• 1992: Affymetrix becomes an
independent company to pursue this
new technology
*0
*
Affymetrix
• 1993-1995: Raises $21 million
from private investors in first
round funding, $39 million in
second round, and $31 million in
government research grants to
partner with academic research
institutions
• 1996: sells first products, (total
of 9 systems by end of the year);
in June Affymetrix goes public
on Nasdaq, raises $90 million.
*0
*
Affymetrix
• 2000: Company had secured over 100
patents, sold over 100,000 of its “GeneChip”
microarrays
• 2001: Affymetrix was leading supplier of
genetic diagnosing systems for research
*0
*
Affymetrix
(data in thousands)
2000
2001
2002
2003
2004
2005
Revenues
$200,830
$224,874
$289,874
$300,796
$345,962
$367,602
Net Income (loss)
($53,990)
($33,121)
($1,630)
$14,285
$47,608
$57,516
*0
*
Affymetrix
• 1997: Member of Board of Directors raises
question of company's moral responsibility for
how its products are/will be used.
• Affymetrix forms Ethics Advisory Board to
provide company with advice on its moral
responsibilities.
• EAB meets periodically, discusses ethical
issues related to customer use of company's
products, makes (advisory) recommendations