GS4 · UPSC Mains

A major pharmaceutical company headquartered in Mumbai had worldwide operations. It was a big producer and exporter of generic drugs. It has production facilities spread around the country. After the pandemic, the company saw an exponential growth in demand for its generic drugs, and to meet the demand, the company contracted out production to small manufacturers. The deal was that the contracted supplier would supply a specified quantity of drugs within the prearranged schedule, and on delivery, the payments were released. The company didn't bother about the supplier's facilities, policies, or safety standards. It was a simple business deal of keeping the supply chain running without liabilities. Some suppliers saw this as an opportunity to make some quick money. They started stretching the limits of their production facility and didn't mind compromising with safety and labor laws. Unfortunately, a supplier's storage facility caught fire, and 22 workers died in the tragedy. The production facility was closed, and the dead workers' families sued the supplier and pharmaceutical company for damages. The supplier agreed to pay the damages, but the company denied any liabilities as they were not directly involved. Meanwhile, the lawyers representing the family claimed that the company was morally responsible for the tragedy because they didn't inspect the production facility for safety and were indifferent to everything. The families considered the company to be outright consequentialists worried about keeping their supply lines running, whatever the cost. (a) What are the ethical issues involved in the above case? (50 words) 5 marks (b) Ethically analyze the company's position on paying damages and justify why/ why not the company should be liable for damages. (120 words) 10 marks. (c) What do you understand by the term moral responsibility? When do you think a person or an entity becomes morally responsible for actions committed or omitted? (80 words) 5 marks

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