Plasma International

I enjoyed the readings for this week. I would like to focus this week's blog on the case study entitled: "Plasma International." My argument is that Corporate Social Responsibility is not tied to a company's conscientiousness, but rather comes as an outhgrowth of wealth-building and, when caught, serves as a bi-product and convenient tool to legitimize unscrupulous behavior.

All of the case studies and the philosophical perspectives we have read about recently have had a profound thought-provoking impact on me. However, none was more unnerving then this case study where a business buys and sells the blood of West African tribes like they are operating a prostitution ring. I've often been amused at how we as individuals and as corporate leaders process our thoughts in such a way that the outcomes are clear to us, if not to anyone else. These are especially lethal practices when used as an attempt to justify our actions by legitimizing our behavior.

Plasma International, like all corporations that we have studied or will study, went into business to make a profit. Period. It appears that this company had no scruples, no conscience or common sense when they began this operation. By using the blood of street people and derelicts to supply unknowing recipients, their costs were low and their profits were high. There were no other basis for operating a business such as this. But the questions are these:

• Were they thinking of corporate responsibility during their start up phase?
• Did they attempt to select donors based on any kind of criteria (safety, fragile, etc.,) other than their donors were human?
• Did they care anything about the patients that would be receiving this blood?

The answer to these questions are obvious. But did their actions invoike CSR at this point. "No." However, even when they got caught selling tainted blood, it did'nt force them to stop the practice. Why? Because it would impact profits. So they chose to find another source.

Instead, they, like many other companies (H. B. Fuller, Resistol, etc.,) that pounce on the poor and disenfranchised to line the profits of their industries, found new sources of blood in underdeveloped countries, purchasing it for 90 cents a pint and reselling blood to hospitals in the United States or South America at $150 a pint (Thomas Donaldson & Patricia Werhane 156).

The article ended with Smith refusing to open up about his business practice, leaving the reader wondering if he infact, practiced any CSR aftwerwards. Of course, many of the businesses studied, after becoming large enough (through profits, government subsidies, etc.,) jump onto the conscience-train as they then attempt to legitimize their activities by invoking corporate social responsibility.

Take any of the companies that we have studied so far. H. B. Fuller could have taken several actions to curtail the effect of glue-sniffing amongst the street people of Honduras:

1. They could have removed the glue from that market
2. They could have added a water-based substance to the product that would make it less
attractive to the street children.
3. They could have helped the government start programs that would get the street children off
the street and get them into clinics for treatment (more jobs) and later, help them by offering
employment opportunities(more jobs).

Instead, they chose to attempt to put a law on the books that would allow them to add oil of mustard to their product, thereby continuing to increase profits.

Resistol was unbelievable. They take a product that cannot be patented and patent aspects of their business in order to secure huge profits on the drug. They continue to raise profits as they pleased. Yes, they spend billions of dollars on R&D but the case basically mentioned one new product that has a potential for this company, and they intend to price that product higher still. The question here is: "Where is their social conscience?" They give the drug away free in some underdeveloped countries, as European countries are selling the same produce for $2.60.

Back to Plasma International. The article mentioned that Jack Smith went into the blood and blood plasma business after recognizing the world's need for safe, uncontaminated blood. So he turns around and sells tainted and unsafe blood through storefronts and spends his company's resources to fund a highly-qualified team of medical consultants to find new sources. When questioned about his activities, his response is: "I just don't understand it. We run a business just like any other buseness: we pay taxes and we try to make an honest profit (157)."

Honest? No. Profit? Like any other business, Smith is right.