Business Ethics
Business Ethics
Business Ethics
Submitted by:
Bansil, Arvel
Cobankiat, Cleo
Nicolas, Paolo
Tabora, Antoninio
Submitted to:
Submitted on:
December 14, 2018
Table of Contents
Abstract 3
Introduction 4
Problem Statement 5
Hypotheses 5
Objectives 6
Significance of the Study 7
Conclusion 40
Acknowledgements 43
References 45
Appendix 51
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Abstract
United Laboratories, Incorporated, or more popularly known as Unilab, is one of the most established names in
the Philippines’ pharmaceutical industry. From a small drug retail store to aid the war-torn country, it has grown to
becoming the largest pharmaceutical company in the Philippines with about 6,000 employees, including 3,500 in overseas
operations. Unilab develops, manufactures, and markets prescription, over-the-counter, and personal health care brands
(Abella-Zata, 2016). Although the company is in a very competitive business envirhonment, it has remained strong
throughout the years through the different organizational and management practices observed by the company.
This study aims to discover and investigate the ethical practices observed in the pharmaceutical industry,
specifically those of United Laboratories, Inc. As a key player in the Philippine pharmaceutical industry, it is important to
know about the ethical obligations that Unilab is fulfilling. The purpose of the researchers for conducting a such research
is because they felt that the Filipino citizens, the majority of people who consume the products of United Laboratories,
Archival research and an interview were done for data gathering, which are the primary sources of data for this
study. Through the investigation of the company’s practices, the legal, economic, and ethical responsibilities of Unilab as
After the gathering, analyzing and summarizing of data, the researchers have found valuable practices that Unilab
infuses in its organizational culture for continuous growth, observed within the company and external environment. As a
leading company in its industry, Unilab has indeed proven itself to be worthy of the public’s trust in providing quality
healthcare without compromising their high regard for ethics in the company’s operations. The study will be beneficial for
students, future incorporators and business leaders, as well as those interested in the pharmaceutical industry.
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I. Introduction
United Laboratories, Inc. (Unilab) was founded in 1945 by Jose Yao Campos as a small drugstore in a street
corner in the war-torn downtown Manila. The company started by offering quality medicines at affordable prices. Today,
Unilab develops, manufactures, and markets a wide range of prescription and consumer health products covering all major
therapeutic categories. Many of these products are leading brands in the Philippines, Indonesia, Thailand, Malaysia,
Singapore, Hong Kong, Vietnam, and Myanmar. Unilab has facilities throughout Southeast Asia. Its major manufacturing
complex is in Manila, Philippines. Unilab is the biggest pharmaceutical company in the Philippines and is dominating the
Numerous agencies and organizations have advocated for improving and implementing ethical practices in the
pharmaceutical industry. For instance, the Pharmaceutical and Healthcare Association of the Philippines (PHAP) ensures
that its member companies conduct and adhere to the highest ethical standards. From their research and development to
marketing of pharmaceutical products, members must adhere to the ethical standards of the said association (PHAP, n.d.).
The PHAP is the first pharmaceutical organization that has adopted the codes of practices aligned with international
codes.
Furthermore, pharmaceutical companies based in the Philippines have been encouraged by numerous health
advocates and professionals to voluntarily partake in an international code of business ethics in the biopharmaceutical
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industry (Mateo, 2014). The international code seeks to ensure the best interest of the patients in the industry. Through
The Medicines Transparency Alliance (MeTA) Philippines, development partners, and drug companies, an increase in the
transparency of the supply chain and improvement in the ethical practices of the pharmaceutical industry of the
Philippines are to be practiced by members of the said alliance. Members must adhere to “The Mexico City Principles for
Voluntary Code of Business Ethics in the Biopharmaceutical Sector.” Compared to other countries who are members of
MeTA, according to Doctor Tim Reed, executive director of the Health Action International headquarters in The
Netherlands, the uniqueness of MeTA Philippines is that it particularly “includes the civil society in the country in its
Unilab, as one of Philippines’ leaders in the pharmaceutical industry, is expected to practice ethical codes of the
highest standards. Unilab, as a company highly trusted by consumers to provide quality healthcare and pharmaceutical
products without the expense of unethical means to attain its relatively affordable price, has the duty of upholding its
United Laboratories is one of the leading pharmaceutical companies in the Philippines. Companies within this
industry, the ones concerning the health and welfare of people, are prone to ethical questioning. This paper aims to
A. How does Unilab prove their ethicality in their beliefs, cultures, and practices?
B. How can these beliefs and practices affect its stakeholders and the general public either negatively or
positively?
III. Hypotheses
With regards to the ethical practices raised and questioned within the company, the researchers expect Unilab to:
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A. ensure that each of their products are driven from ethically proper experiments and have gone through the
B. provide a safe environment, have fair compensation and treatment for their employees;
C. and make sure that they practice proper waste management in their procedures.
IV. Objectives
To determine their responsibilities and corporate social responsibilities to the different shareholders
A. Employees
1. To identify the culture, vision, mission, and values and principles within the company
2. To determine if the working hours of their employees are flexible/environment in the workplace
b) To determine the possible effects of hazardous chemicals and waste to people and to the
environment
a) To determine the effects of the most common chemical wastes they produce to the people
and environment
4. To determine how Unilab disposes of their waste, specifically chemical and hazardous wastes
C. End Users
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1. To determine how they conduct tests
a) To identify their practices in terms of experimenting and testing their products and
b) To determine whether or not they are in compliance with the policies and the standards
(4) Are they in compliance with the policies and the standards set
3. To identify their programs that are meant for the users and the community of the consumers
(3) Who and what is it for, and why did they create such programs
Conducting a study on the ethical practices of Unilab would help in identifying the good ethical behavior
as well as the malpractices of the company. From this, the organization will know which practices to continue and
which to stop. Furthermore, the study will also be able of help to present and future pharmaceutical companies in
determining which actions or procedures would be most ethical in the industry they are in.
The research will only cover and be limited to the following topics:
1. The research will only cover the practices of United Laboratories, and no other pharmaceutical
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2. The study will not cover ethical practices of Pharmaceutical companies of countries outside the
Philippines.
3. The study will be limited to the sources available for public use.
4. The study will be limited to the knowledge of an employee of United Laboratories Inc. .
5. The study only limits its inside source to the position and department of Lab Specialist or
VII. Methodology
Most of the information attained in this research paper came from a connection of one of the researchers
to an insider within the company. The informant’s position within the company is a lab specialist and supervisor
within the Quality Control Laboratory and has been in service for 26 years. Holding the position of supervisor,
she commands over a group of employees. Having experiences from both the main laboratories of Unilab based in
Mandaluyong and later on being transferred to their secondary laboratory in Laguna, she has an extensive
A set of questions were given to the interviewee in a word document file and was later on sent back to us
already containing the answers (Refer to Figure 1 in Appendix). In addition to the questionnaire, follow-up
questions were asked during an interview conducted by one of the researchers with the said employee. Along with
the information obtained from the interview and questionnaire given to the interviewee, the interviewee also
showed some disclosable information from their company books given exclusively to employees which contains
information about their practices and company history. However, for confidential purposes, the company book is
To add to that, one of the researchers also had a tour within the facility held on the 1st of December 2018.
During the tour, information on how Unilab handles their waste, how they process the medicine, and their safety
practices and precautions were discussed and shown to the researcher. Moreover, we also did our own research on
the proper ethical practices to be followed by pharmaceutical companies in which Unilab is categorized with.
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Online journals, publications, and articles about Unilab and its practices were used as a basis for the determining
Timetable
Tasks
Gathering of Data
Profile
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VIII. Literature Review
○ Vision: Unilab has the vision of “Providing the best healthcare in Asia by: Converting opportunities into
sustainable growth; Nurturing a culture of innovation; Delivering a better value into our partners and
○ Mission: The company has the mission to “... provide quality and affordable healthcare products and
services that promote and enrich life for all communities that we serve by working together as one united
“We believe that we are UNITED IN THOUGHT AND ACTION, and from this we derive our strength
We believe in the NOBILITY OF OUR PURPOSE— in the service of medicine, for the welfare of our
people.
We believe that INTEGRITY IS LIFE TO US, and to preserve it we must maintain ethical standards of
We believe that TRUTH IS OUR CHALLENGE, and our search for truth is our contribution to the
We believe in EQUALITY AND JUSTICE FOR ALL, that our greatest asset is our human asset, whose
We believe in the DIVINE PROVIDENCE, whose love has sustained us, whose blessings give fulfillment
to our lives.”
B. Organizational Chart
The organizational chart of Unilab is not complete as the entire organizational structure is beyond the
knowledge of the interviewee. As a result, there are still some divisions that are not stated in the organizational
chart and under each division would contain even more different leadership positions such as directors, managers,
assistant managers. What is found in the organizational chart would only be the highest divisions of Unilab and its
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current highest leader position in each division. However, names of the leading managers in each division were
not stated by the interviewee as a precaution for the possible risk of data leak.
Based from what was shown from the organizational chart which can be found in the appendix section
(Figure 5), Jocelyn Campos-Hess, the chairman of the board, is positioned at the topmost part. Then respectively
comes John Mariano Tan, the vice chairman of the board, Clinton Campos-Hess, the president and chief executive
officer (CEO) and son of the chairman of the board, and Benjamin Yap, the executive vice president (EVP) and
chief operating office (COO). Under them are the 23 Unilab divisions that were given by the interviewee. Under
these various divisions are respective managers, supervisors, middle and lower level employees.
There are steps involving the manufacturing process of pharmaceutical drugs. The first step is to prepare
the chemical ingredients for the making of the medicine. The next step is to convert the ingredients involved in
making the medicine or also known as the processing of the medicine (Schwitz Biotech, n.d.). The process also
involves the purification of the final product. The last step is to package the pharmaceutical products which
involves processes such as tablet pressing, coating, filling and the likes (World Bank Group, 1998) . This showing
of the medicine making process is for the purpose of the better understanding of how the ethical issue came to be
There are methods utilized in doing animal testing but only two of these will be mentioned since there are
numerous other methods of animal testing used. The two methods that will be mentioned here are the LD50 test
method and the Draize test method. Both of these methods are chosen not only because of numerous other
methods are involved, but also because those two methods are frequently involved in doing the other test methods.
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The LD50 test method is one of the methods utilized in animal testing; it involves the ingestion or the
injection of the chemical into the animals without the use of anesthesia or pain reliefs. This process is used to test
how toxic a certain substance is and its reason for not using anesthesia or pain reliefs is because of the fear that
they will alter the results. Another method would be the Draize test wherein a certain chemical substance is
dropped onto the eye of the animal. The animal here also does not use pain relievers for 14 days for the purpose of
studying and evaluating the results. The purpose of this test method is to know how toxic the substance is to the
eyes, which results to some levels of inaccuracy due to certain physiological differences between animals and
humans (Neavs, n.d.). This connects to the medicine-making process since it is previously stated that the
medicines are made out of chemicals used in the first step as to which the animals are subjects to the
As a result, the industry already came up with an alternative to reduce the amount of animals used for
experimentation. This alternative involves the testing of only the tissue cells of the animals where the animal in
itself does not experience the consequences of the result of the created medicine. This therefore reduces the deaths
The ethical issue encountered by the pharmaceutical industry would be the fact that their role to maximize
profit may give them the tendency to abandon their goal of promoting the welfare of their shareholders (Thomas,
2017). This meant the dilemma of either them increasing their profit from increasing the price of the medicines to
fulfill their role as entrepreneurs, or decrease their price to fulfill their other goal of promoting their stakeholders’
welfare. The situation implies the imbalance between the two goals of the pharmaceutical industry to profit and to
care about the people’s welfare. Another study implies almost the same kind of ethical issues with regards to
imbalance of the two goals of the pharmaceutical companies. According to Haque & Freitas et al. (2013),
pharmaceutical industries encounter an ethical issue of using certain advertising techniques to avert people’s
attention to the side effects medicines could take. Although it is stated to be possibly ethical as long as it’s within
the bounds of the law the fact that the techniques are misleading is what makes it unethical. This goes to show that
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both sources present the common denominator which is the pharmaceutical industry’s two conflicting goals
whereas one would be not ethical or efficient without considering the other.
The solution was created for the given ethical issue through patent laws. Patent laws and subsidiaries are
made for the purpose of promoting the creation of new medicines. Those mentioned are basically what makes up
for the large amount of money the pharmaceutical industry had to pay for the research operations done for the
creation of the new drug. The patent laws and subsidiaries are what makes up the huge sum of money in a way the
company is free to profit greatly from the drug they created where others are prohibited to copy the invention due
to the mentioned laws, also decreasing competition. It is not only used as means of compensation but also used for
the purpose of reducing competition. With the reduction of competition, one can maximize one’s profit through
the patent laws and subsidiaries (Thomas, 2017). Basically they earn with the patent laws which in a way helped
them with one responsibility of maximizing profits and therefore help them at the same time promote the welfare
of their stakeholders. Another solution of the pharmaceutical industry would be where it employs advertising
techniques where it masks the drugs’ side effects such as a rapid voice over of the side effects and such (Haque &
The pharmaceutical sciences represent an evolving and highly dynamic field, and trends show an
increased effort to develop biologic-based drugs and creating more specific or targeted drug delivery techniques.
Although, there is indeed a growing inefficiency and cost of research and development has spawned research in
other predictive sciences, such as quantitative risk analysis and risk management (Wu-Pong S, Gobburu J, O'Barr
S, et al, 2013). This new field has been increasingly used as a statistical tool involving probability theory to model
outcomes, and to estimate risk and benefit for decision making in drug development.
Current trends within the industry as of the present is there is a decline in productivity of research and
development due to clinical breakthroughs are hard to come by. Another trend is that there is decreasing revenue
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due to generic drugs increasing in popularity and that expiring patents are not being replaced by more recent and
more innovative drugs in the market. The future of the pharmaceutical industry is not looking to see some vast
The Philippines enacted its first National Drug Policy during the year of 1987, shortly after, the Republic
Act No. 6675, also called the Generics Act of 1988, was then signed on September 18, 1988 by former President
Corazon Aquino. The Generics Act aims to promote, encourage and require the use of generic terminology in the
importation, manufacture, distribution, marketing, advertising and promotion, prescription and dispensing of
drugs, ensure the adequate supply of drugs with generic names at the lowest possible cost and endeavor to make
It all starts with the Biopharmaceutical research and development (R&D), where drug discovery,
preclinical, Food and Drug Administration (FDA) review, clinical trials, manufacturing, and post-marketing
monitoring and research takes place. During the drug discovery and preclinical trials part, researchers seek to
narrow the field of compounds to one lead compound which is a promising molecule that could influence the
The Bureau of Food and Drugs (BFAD) is responsible for the quality assurance and drug analysis. By
August 18, 2009, the BFAD was renamed into Food and Drug Administration (FDA) under the Republic Act No.
9711, an act to strengthen and rationalize the regulatory capacity of BFAD, which was approved by former
President Gloria Macapagal-Arroyo. The act aims to protect and promote the right to health of the Filipino
people, and help establish and maintain an effective health products regulatory system and undertake appropriate
health manpower development and research, responsive to the country's health needs and problems (WIPO, n.d.).
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J. Waste Management
The following terms and information are based on the policies and guidelines on effective and proper
handling, collection, transport, treatment, storage and disposal of health care wastes of the Department of Health
(DOH) and Department of Environment and Natural Resources (DENR) (2005) of the Philippines.
Wastes generated as a result of activities including, research, diagnosis, treatment, management and
immunization of humans and animals, and the production or testing of biological products among others.
Chemical Waste
A type of hazardous waste which include chemical byproducts of large manufacturing facilities and
laboratories. Includes waste from small-scale solvents and other chemical waste of households. It is considered
hazardous if it has at least one of the following properties: toxic, corrosive, flammable, reactive, and genotoxic.
Generators include facilities and institutions involved in the healthcare industry. These institutions include
health care facilities, such as hospitals, clinics, laboratories and research centers, manufacturers, drug testing
These are facilities where hazardous wastes are stored, treated, recycled, and/or disposed of as prescribed
b. Permit to Operate,
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c. Hazardous Waste Generator’s Registration
a. Licenses
b. Certificate of Accreditation (for Overseas Filipino Workers medical facilities, laboratories, and
training centers)
The use of disposal facilities should be limited only to health care wastes which have undergone the
necessary treatment under the prescribed standard in the DOH Health Care Waste Management Manual.
There are various methods of disposing health care and medical waste. Listed below are the following
retrieved from the guidelines of the World Health Organization (WHO) (1999).
1. Landfill
To landfill is the oldest and most widely practiced method of solid waste. The practice of
landfilling is to directly place solid wastes into the land disposal site. There are three types of landfill.
First, the open uncontrolled non-engineered dump. A non-engineered dump is the most common in
developing countries , and this method does not protect the environment that surrounds it. Untreated
Wastes are disposed in and uncontrolled open dump, which is why this method should not be practiced.
Second is the engineered landfill. This method has features that protect the environment from
contamination due to the chemical waste. Lastly is the method of highly engineered sanitary landfill. This
method is considered as a safe disposal route for pharmaceutical wastes. The feature of this method is the
protection of the aquifier. The solid wastes are compacted and covered with soil daily to maintain sanitary
conditions. The World Health Organization (WHO) prescribes this particular method of waste disposal.
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Encapsulation involves placing pharmaceuticals in solid blocks within plastic or steel drums. The
drums used must have been properly cleaned before the placement of pharmaceutical waste within them.
Drums must only be filled to 75% capacity before it is topped of with a mixture of lime, cement, and
water in definite proportions of 15:15:5 (by weight). Once the drums are properly sealed, they must be
placed at the base of landfills and are covered with fresh solid municipal waste.
This method is a subcategory of the encapsulation method. The differences lies with the removal
of packaging materials from the pharmaceuticals before they are disposed. Pills removed from the
containers will then be formed into a paste that is transported in the liquid state to be disposed in a
landfill.
4. Sewer
Pharmaceuticals that come in liquid forms are diluted with water and are flushed into the sewer.
This is done in small quantities that cover a period of time. By doing this method in small quantities and
over a long period of time prevents it from having any public health and environmental concerns.
The method of burning pharmaceuticals in open container and at low temperatures are
discouraged due to the toxic pollutants that may be release to the air. Nonetheless, the packaging the
pharmaceuticals come in may be disposed in this way. It is highly recommended that only small quantities
6. Incineration
This method may be divided into two categories, medium temperature and high temperature
incineration. Medium temperature incineration may be used as emergency method to treat expired solid
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forms of pharmaceuticals. The method of novel high temperature incineration are expensive which is why
many countries do not have this technology to dispose their pharmaceutical waste.
7. Chemical Decomposition
In the case that appropriate incinerators are not available, this option can be used; however it must
be followed with by the method of landfill. This method is not recommended especially if the company
does not have chemical expertise that are readily available. Furthermore, this method is very tedious and
time consuming.
An individual being exposed to hazardous health care waste is at risk of acquiring diseases or injuries.
The hazardous health care waste maybe caused by one or more of the following characteristics:
- Genotoxic;
All individuals exposed to hazardous waste are potentially at risk. With this, the specific groups of people
who are most inclined to be exposed to such wastes are people in healthcare establishments, personnels and
workers who provide the service of handling, collecting, and disposing of hazardous waste.
The exposure to chemical and pharmaceutical waste are hazardous, may it be in small or large quantities.
These forms of waste may cause intoxication and burns. The effects of being intoxicated of such waste may result
from the absorption of chemical or pharmaceutical substance through the skin or inhalation and ingestion. The
most common injuries are burns, and the biggest contributor to this are the use of large quantities of disinfectants
such as chlorine and sodium hypochloride. Furthermore, reactive chemicals could possibly form highly toxic
secondary compounds.
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Waste Segregation and Storage
Segregation is the process of separating different types of waste and more notably isolating them from
each other. Different and appropriate recycling methods are applied to different types of waste. Various types of
hazardous waste must be properly segregated in containers with proper labels. This efficiently segregates as well
The table below summarizes the types of waste for each color of a health care waste container.
Aside from the color-coding system for the segregation of health care waste other practices must also be
observed. Sharp objects must be collected together, regardless of these being contaminated or not. This avoids the
puncture of containers, thus, such objects must be contained in puncture proof containers.
Large quantities of chemical waste should be packed in chemical resistant containers and sent to special
treatment facilities. The chemicals within containers must be properly marked and labeled. Different types of
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K. Marketing in the Pharmaceutical Industry
Companies in the pharmaceutical industry offer products which must meet standards of regulatory bodies.
This is to ensure that the drugs are effective for what it claims to treat, safe for the consumption of its users, and is
profitable to fulfill responsibilities to shareholders. However, the consideration of these factors will come into
play when the promotion and advertising of drugs are discussed. According to the Pan American Health
Organization (n.d.), promoting and advertising of medicinal products must be “based on verifiable scientific
Because companies have the economic right to produce profit for its shareholders, there might be cases
when information such as risks and hazards of a certain drug may not be given attention. A case study by Haque
et al. (2013) asserts that companies have an ethical duty to warn customers, including doctors and patients, of
potential risks. Thus, it is clearly unethical to compromise both the health of patients that use the products and the
doctors and sales agents that distribute the products. However, there are instances where this is not the case. In the
advertising of a certain drug, one might argue that as long as a company complies with existing regulations and
requirements, there is nothing wrong with diverting the attention from possible dangers of a certain drug.
According to Haque et al. (2013), the pharmaceutical company as a commercial entity may choose to
minimize the effects of publicized information that might affect its sales because it is in the best economic interest
of the company. This now raises questions of whether it is ethical to downsize the effect of a certain risk
information of a drug. Most companies in the industry tend to strike a balance between “the economic good of the
company and the safety of potential customers” (Haque et al., 2013), given that the company’s production and
The common practices that are used by pharmaceutical companies to remove a drug warning’s clarity is:
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M. Distribution Channels
The sales representatives of pharmaceutical companies serve as one of the key distribution channels of
many drug companies. Through these sales representatives, companies are able to sell directly to these physicians
which also serve as marketers of the product. The use of sales representatives of pharmaceutical companies is
widely used because they have direct relationships with physicians. These relationships are not limited to business
related transactions only. In most cases, the sales representatives develop a close relationship with physicians or
clinic staff. According to Tranquilino (n.d.), health professionals and the pharmaceutical industry have been
closely linked together which eventually led to efforts to protect boundaries between the two. It was also seen in a
study conducted by Steinman et al. (2001) that hospital doctors tend to be influenced by sales representatives
when prescribing drugs. When asked how much sales representatives influence their prescriptions, 61% said None
which is contrary to how much other doctors are influenced, 51% of which agreed that other doctors are
influenced “a lot”. Although it is not valid to claim that all doctors are influenced greatly enough to disregard their
duty of providing safe and effective drugs to patients, it is still one of the considerations that the Pharmaceutical
Healthcare Association of the Philippines (PHAP) should consider. This is true for most cases especially since
health professionals are found to be more exposed to talks by sales representatives of their respective brand
generics, associated to a lesser ability to discern inaccurate claims about medicines (Tranquilino, n.d.).
N. Conflict of Interest
As mentioned, commercial enterprises of drugs and physicians vary in their ethical duties. Because of
this, both parties might have competing interests or loyalties which is called conflict of interest (Murray, 2018).
The duties of a healthcare professional is to serve the patient with utmost care while commercial enterprises of
drugs are expected to generate profit. The World Health Organization Europe (1993) also asserts that there is
indeed an inherent conflict of interest in the industry between the business goals of manufacturers and the “social,
medical, and economic needs of providers” for the maximization of the use of drugs.
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O. Drug Research
Similar to the case of conflicts of interest between healthcare professionals and distributors, drug
researchers also face the same ethical responsibilities in regard of keeping the integrity in research. It is important
that the researchers are not influenced by interests such as financial gain. In addition, cognitive dissonance and
self justification must also be avoided as it can hinder accurate self-assessments and promote scientific
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IX. Results and Discussion
Employees
Their values are embedded in their United Creed. This creed states the values and principles of their
beliefs. Their beliefs include United in Thought and Action (Bayanihan), Nobility of Purpose, Integrity is Life,
Truth is their Challenge, Equality and Justice for All, and lastly Divine Providence. As stated in their United
Creed, one of their beliefs is Integrity is Life. This shows that Unilab believes in the importance of preserving
Throughout its history, the company embeds the culture of Bayanihan within their employees. During the
1950s, the Campos family organized a junior board composed of managers and employees called as Unilab
Employees Council. According to Grace Abella-Zata of IRC Institute (2015), It is tasked to ensure the welfare of
the employees as well as their families, which is inspired by the Filipino spirit of Bayanihan, which means
This value has been carried throughout the company’s growth. It is reflected deeply in its vision and
mission. The Campos recalled in an interview by IRC Institute that it was a challenge to instill the values from a
generation to a new generation of employees. With this, Unilab used a system of meritocracy while instilling the
Bayanihan culture. In this way, a meritocratic environment, which promotes a performance-driven environment,
will have a collaborative effect among employees, instead of having an individualistic culture (Abella-Zata,
2015). This culture is reflected in its internal and external tagline, “compassion and competence.”
Unilab also believes in equality and justice for all within their organization. For them, their greatest asset
is their human resource. In line with this, they believe that this valuable resource must be given meaning and
To determine the employee welfare of Unilab, we collected information from three distinguished
recruiting sites - Glassdoor, Payscale, and Indeed. Majority of the reviews stated an atmosphere of high
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productivity and unity in their workplace. However, most of the cons are about the long working hours and short
office breaks. One even mentioned that, “work-life balance is impossible”. Despite this shortcoming, Unilab is
said to compensate well through their salary and benefits. The benefits that Unilab offers to their employees
exceeds the benefits that the government mandates corporations to offer. According to Payscale.com, Unilab PH’s
popular benefits are life/disability insurance, paid holidays/vacation, paid sick leaves, and fitness memberships.
Aside from using online information, an employee who is currently working for Unilab told the researchers in an
interview that only a portion of employees gets to enjoy the advantage of flexi-time. Both employees who work in
the field and those who do not receive flexi-time except for those under the Research and Development
Department.
The ethical practices centered for Unilab employees mostly revolve around their safety and welfare.
According to an interview with a Unilab employee, the company ensures the health and safety of the employees in
First, the company provides an abundant amount of scrub suits that are strictly for one-time use only. No
one is allowed to go in the manufacturing area without a full scrub suit. Each scrub suit is also disposed
immediately upon exit; it may not be used again for second entry.
Second, the office cafeteria has a divider in the middle. It serves as the boundary to cut the area into two
halves. One half is for those who do office work, while the other is for those who work in manufacturing. This is
to contain possible contamination in a limited space as to avoid mass epidemics and the like.
On the other hand, Unilab promotes the welfare of its employees and their families by supporting them in
times of disasters and retirement. During the big typhoon Yolanda, its employees are said to have the initiative to
chip in and support their colleagues. Unilab is also known for being the company that sends its workers abroad for
medical treatment. It also hosts parenting workshops and summer camps for its employees’ families. Lastly,
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Unilab supports its retired employees through Unilab’s Retirement Foundation to provide hospitalization and
The main difference between a known brand prescription drug and a generic drug is its cost (Klinger,
n.d.). In this case, Unilab, which is known for its top-quality prescription drugs, had a difficult time in the
pharmaceutical market, since many other generic drugs have already penetrated the market. This led to Unilab
having numerous additional competitors in their market. As a result, Unilab built a new manufacturing subsidiary
known as Amherst Laboratories, Inc. (ALI); which has a Solids and Liquids Plant and started its operations on
March 2007. According to the Company Overview of Amherst Laboratories written by EMIS, this newly
established pharmaceutical plant has a state-of-the-art facility, and it is designed to produce a variety of
prescription medicines in major therapeutic categories. ALI is said to be Unilab’s response to a rapidly changing
landscape due to globalization and harmonization of regulatory standards in pharmaceuticals. Moreover, this
expansion is aimed to further strengthen both the leadership and Unilab’s presence in the Philippine
Amherst came to be as a means of help for them to remain in par with the competition of medicine despite
the rise of generic medicine in the market. Amherst was first created because of how Unilab was placed in a very
commercial area which made them later on move to the provincial areas where it is more industrious. Along with
that, with Amherst being placed in the provincial areas, there is much lower costs of employment and supplies.
With this, it helped them cut costs lower, thus, the lower need for profit maintenance in order to maintain the
quality of their medicine. Another factor that Unilab has successfully helped with starting Amherst is the fact that
this created many more job opportunities which somehow helped the problem of unemployment within the
Philippines. In clarification from the interviewee, Amherst still creates the same quality and products as of Unilab
and the only difference is the costs of the said difference in price of employment and supplies in rural and urban
areas.
25
Generic drugs have been a problem for Unilab and other pharmaceutical companies that produces
patented drugs. According to the Food and Drug Administration (FDA), generic drugs are cheaper than patented
drugs because these generic drugs will not have to repeat all the testings being done to patented drugs.
Furthermore, generic drugs have the same active ingredients with known brand prescription drugs. Once the
patent for a known brand prescription drug expires, generic drugs could then be available in the pharmaceutical
market (DBSA., 2007). In addition, the patent period may last up to twenty (20) years depending on the drug.
However, due to expiring patents not being replaced by a more recent and more innovative products, this caused
the entire pharmaceutical market to be affected as generic drugs are penetrating the market; hence, this led to
more competitors not just for Unilab, but also, for other pharmaceutical companies.
The researchers believe that Unilab stays true to their United Creed. Although there has been an issue
with regards to the situation that employees working under Amherst Laboratories, Inc. are receiving lesser
benefits, the researchers still think that Unilab still stays true to their creed. This is because Unilab offers their
employees benefits that exceeds what the government mandates the company to offer. The government mandated
benefits are mostly centered on financial benefits, namely, wages and compensation benefits, leave benefits, and
Pag-IBIG, SSS, and PhilHealth benefits. Aside from those mandated benefits, Unilab has been able to offer a lot
more than that - benefits like ensuring the welfare of both the employees and their families, being able to join
parenting workshops hosted by Unilab, and supporting retired employees through Unilab’s Retirement
Foundation. Even though employees working under Amherst Laboratories Inc. are receiving lesser than the usual
benefits received by those who work under Unilab, these employees would still receive benefits that adheres to
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Safety and Waste Management Practices
Waste management is an integral process, especially in pharmaceutical industries. They are handling
compounds reactive and hazardous to the public and environment health. If not segregated with care, these
chemicals may become a threat to the humans exposed to it and the environmental sustainability.
Unilab segregates their waste in accordance to the most abundant compound in the waste. For example,
Biogesic is mainly made up of paracetamol, thus the wastes in manufacturing this compound will be separated
into the paracetamol waste compartment. They do not exactly follow the methods used in other health care
establishments, such as hospitals, because they handle different types of substances and chemicals. Still, it is
Since Unilab is a manufacturer of pharmaceuticals, the wastes that are present in their system are not just
wastes from final products, but also raw materials. These wastes may be found in both solid and liquid form.
People involved in drug preparation, waste transport, and waste disposal are in danger of health hazards. The
primary risk of hazardous waste, specifically poisonous waste, if they are swallowed, inhaled, or have come in
contact with skin is death or serious injury to human health. The risk of toxic hazardous waste on the other hand
Processes undergoing in pharmaceutical industries until after their products have been distributed
continue to affect the environment negatively. Chemicals are released into surface waters, sewage systems, soils,
and air. These chemicals found in pharmaceutical compounds are intended to be highly reactive to receptors in
humans and animals, however this makes them toxic to other organisms, many of which are important in the cycle
of the ecosystem. These organisms are constantly exposed to the chemical hazards released by medicines and
there have been observed impacts thus far. Some of these include behavioral changes in insects, abnormal growth
in different aquatic plant species, influences on the fertility and development of fish, reptile, and aquatic
invertebrates, and development of antibacterial resistance in soil microbes (Boxall, 2004). These hazards are most
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commonly ecotoxic, carcinogenic, persistent, and bio-accumulative in the way that they are harmful to the
environment, can induce cancer, remain dangerous for long periods of time, and can infiltrate the food chain,
respectively.
According to the employee we interviewed from Unilab, the most common chemical waste that Unilab
produce are alcohol and hydrochloric acid. They often use it for chemical analyses and as a disinfectant.
Hydrochloric acids are used in pharmaceutical companies as catalysts for chemical synthesis, for control of
acidity levels, for the deionization of water, and as a reduction agent (ERCO Worldwide, n.d.). While alcohol is
used as a disinfectant during operations in the company and as a solvent and preservative during preparations of
We further researched the dangers of hydrochloric acid to the human health and in an article of an
interview with Doctor Dianne McCallister, a Chief Medical Officer at Porter Adventist Hospital in Denver,
United States; according to he the most often health concerns with hydrochloric acid is that it is highly corrosive
on contact. Furthermore, if the skin is exposed to such acid it can cause severe burns to the skin, or digestive
system or blindness if it comes in direct contact. If hydrochloric acid is vaporized it can cause spasm of the
larynx, and sores in the respiratory tract. A more severe effect of inhaling a concentrated amount of it may lead to
Precautionary Measures
Proper precautionary measures must be practiced to avoid injuries caused by the different chemicals
present in the laboratories and manufacturing plant of Unilab. In the plant tour of one of our members, he found
that the whole facility practiced necessary precautionary measures. Every individual must have proper protective
clothing upon entering the facility. Hair cap, face mask, lab gown, laboratory gloves, and shoe covers is
mandatory for everyone within the facilities. Upon exiting the facility, the lab gowns must be placed in the
laundry bins present in the exit area. The other protective clothing are then disposed.
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Precautionary measures are not only practiced through the clothing required of the employees and
visitors. Throughout the whole facility, emergency chemical spill kits are designated in each station every few
meters; also all the doors are color coded. By placing the kits throughout the facility, the people at Unilab are able
to immediately respond to the unlikely events of accidents or emergencies. The accident can be cleaned up and
The doors at the facility are color coded as this indicates different the access and purpose of different
Green No restrictions
The use of color coded doors are very helpful to the employees of Unilab as this helps them maintain
safety. By using color coded doors, the employees can easily identify the purpose of each room. Furthermore, this
method prevents harm or injuries especially because certain areas have different purposes and may be more
Unilab has a third party that collects their segregated waste; however due to the limited knowledge of our
insider, he or she is not informed of the company or companies that collect their waste and disposes of it. As
mentioned earlier, chemical compounds used will be disposed according to their most prevalent element. The
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compounds will be thrown into the waste container of the most dominant element, or the element with the most
The third party in charge of handing these wastes may be specialized to handle waste segregation. If this
party is not present to collect the wastes of Unilab, then the company may risk mishandling their waste. Since the
company itself is not specialized for this task, they may be lacking proper equipment or knowledge on the said
task. Not having the proper safety measures and equipment for employees and irresponsibly throwing away
reactive chemicals in open environments are only some examples of the improper disposal of these wastes. This,
in turn, may cause health problems for the people handling these wastes or may risk environment degradation.
Following the emergence of these issues could be a violation of environmental laws and social reprimandations.
Policies and guidelines prescribed by the Department of Environment and Natural Resources and the
Department of Health must be followed by the third party waste collector. Furthermore, guidelines set by the
World Health Organization (WHO) must be adhered to. We are assuming that Unilab, as one of the biggest and
leading pharmaceutical company in the Philippines, has taken into consideration that their third party collector is
legally registered and is dutifully practicing the regulations on proper waste disposal.
From the further research we conducted, there are three possible methods of the disposal method
practiced by the third party collector. First, and the most common method of pharmaceutical waste disposal, is the
landfill. Specifically, the method of highly engineered sanitary landfill. This method is prescribed by the World
Health Organization (WHO) considered as a safe disposal method. Solid wastes are compacted and covered with
soil daily to maintain sanitary conditions. This method has the feature of not contaminating the environment,
importantly the aquifier, with chemicals present in the pharmaceutical wastes. We feel that this is the most
possible method because it is not only prescribed by the World Health Organization, but it is also the most
common. Furthermore, as leading company, Unilab is expected to not have intentional actions of harming the
environment. Through this method they can assure their stakeholders and consumers that they are ethically in
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Second is the encapsulation method. The encapsulation method is done by placing pharmaceutical solid
waste into drums that are filled and sealed with a mixture of lime, cement, and water. The drums are placed at the
base of landfills which are then covered with fresh solid municipal waste. This method contains the waste and
It is a known fact that Unilab manufactures pharmaceuticals that are both in solid and liquid forms. The
first two methods are more for the solid waste. On the contrary, liquid wastes from producing liquid
pharmaceuticals are disposed of through flushing them into sewers. The liquid wastes must be diluted with water
Unilab is a company making an effort to reduce the waste that they produce; specifically, water waste.
Technotest, Incorporated is an engineering company specializing on projects for water treatment and wastewater
recycling. They innovate systems that treat wastewater so that they can be efficiently reused. One of their projects
include Unilab. Unilab makes use of these technologies that allow water to be filtered out and reused. As soon as
the water is found to be safe and not contaminated, they reuse wastewater for their other operations. This process
is similar to biomimicry where the company wants to eliminate waste. Just like in biomimicry, they use the
Environmental Programs
Unilab supports and has partnered with two companies, Tahanang Walang Hagdan Inc. (TWHI) and
Gawad Kalinga in various programs geared towards the preservation of the environment and the cultivation of the
community. Unilab works together with Tahanang Walang Hagdan Inc. (TWHI) to repackage medicines sent to
Gawad Kalinga and Unilab have partnered to create the Unilab Positive Ideas. The program takes place in
the Gawad Kalinga farms. Unilab Positive Ideas enables Filipinos to improve their own communities’ health and
wellness where the winning team will have their ideas of health improvement be implemented to the selected
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community in the next six months. The said project addresses the problem of malnutrition, saving of the river
systems and water systems (PHILSTAR, 2012). Unilab also does the project inclusion that involves recruiting
people to train the PWDs (People with Disability) in a certain job for them to be able to find employment (Unilab
Foundation, n.d.). This would give the sense of saying that people like them can be useful to society given the
right tools and training, improving the PWDs reputation. The PWD’s gained abilities through training could allow
There are various laws in the country that focus on environmental sustainability. Such would be the
Philippine Environmental Policy; this policy aims to improve and maintain environmental conditions while at the
same time allowing Filipinos to perform their social and economic duties. Through their partnerships with TWHI
and Gawad Kalinga, and in line with their underlying mission, they are able to support these national policies and
For its environmentalism and United Laboratories Inc. (Unilab) regard for public health, the researchers
believe that the company has prepared and implemented enough procedures to ensure the safety of the public.
They follow through standard protocols in handling hazardous wastes to keep them from contaminating the
environment and provide the proper equipment to keep their employees away from harm. United Laboratories Inc.
has certifications from different departments and agencies of the government that warrants the safety of their
procedures and products. It delved into projects for sustainability and the benefit of the general public. Moreover,
with more than 70 years in the industry, Unilab has more knowledge and experience in their field; its reputation as
the leading company precedes itself. With this, the researchers trust that the company has plenty of positive
Unilab, being the leading pharmaceutical company in the Philippines, assures that their big prescription
and over-the-counter brands are produced with the highest quality. With their tagline, “Trusted Quality
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Healthcare”, it is important to note that the ethical responsibilities of Unilab does not stop within the boundaries
of its management, production, and environmental efforts. It reaches out to the essence of what the organization
aims to do which is to provide quality healthcare that promote and enrich life.
Compliance
According to Mateo (2014), Philippine pharmaceutical companies have been “urged by health
professionals to follow a voluntary international code of business ethics in the biopharmaceutical industry.” The
Pharmaceutical and Healthcare Association of the Philippines or PHAP was also established in 1946 whose
mission is to ensure that its members “conduct themselves according to the highest ethical standards” in its
operations, from research and development up to the marketing of pharmaceutical products. The organization was
first named as Drug Association of the Philippines (DAP) consisting of drug manufacturers only but was later
changed to the present name for a wider representation since healthcare professionals are one of the channels of
the drug products. PHAP is the main pharmaceutical association in the nation that has received the Code of
Practice that is compliant on worldwide codes like the Geneva-based International Federation of Pharmaceutical
Manufacturers and Associations (IFPMA) Pharmaceutical Marketing Practices and the Mexico City Principles for
In line with the guiding principles the PHAP has set for ethical conduct, specifically that pharmaceutical
companies are responsible for providing accurate, balanced, and scientifically valid data on products; Unilab as
expected of a leading pharmaceutical industry practices proper ethics as well as the capacity to meet the standards
needed to be observed.
According to the Revised Rules and Regulations on Registration of Pharmaceutical Products (A.O. no.67
s. 1989), establishments which are planning to release drug products must first register with the Bureau of Food
and Drugs. There must be a full disclosure of the drug components before it can be examined and approved or
unapproved by BFAD. The establishments must also have a valid license to operate. Aligned with this, Unilab
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cannot release products which are not BFAD-approved. The drugs have already been reviewed and tested to be
safe.
Unilab is also compliant with the Generic Law which is the first National Drug Policy during the year of
1987. The Generics Act aims to promote, encourage and require the use of generic terminology in the importation,
manufacture, distribution, marketing, advertising and promotion, prescription and dispensing of drugs. This
ensures the adequate supply of drugs with generic names at the lowest possible cost to make them available for
free to indigent patients, encourage the extensive use of drugs with generic names through a rational system of
procurement and distribution, and emphasize the scientific basis for the use of drugs.
Pharmaceutical Marketing
In the advertising and promotion of both their prescription and over-the-counter drugs, Unilab continues
to observe it's ethical practices even until their products are at the hands of their consumers. In terms of their
advertisements, the risk information is properly indicated and mentioned. One pressing issue that the healthcare
industry faces is the prevalence of self diagnosis. Unilab campaigns against this by including a note that it is best
to consult a doctor before the consumption of any drug especially if symptoms persist. In 2011, Unilab together
with Watsons Pharmacy spearheaded a campaign that teaches consumers about the proper use of antibiotics
through special compliance packs. The company is the first to take this initiative in the country, educating against
According to Solante (n.d.), 66% of antibiotics sold in Manila were given without a prescription. This
further proves that this alarming situation in the Philippines promotes the emergence of antibiotic-resistant
bacteria which overall worsens that situation of ill patients. Through the compliance packs given by Unilab,
consumers are educated and encouraged to use antibiotics the right way.
In their packaging, standards set by the Pharmaceutical Healthcare Association of the Philippines are met.
Mateo (2014) asserts that Philippine pharmaceutical companies are compliant with international codes on business
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ethics making sure that the best interest of patients are served. A small paper is also included inside the boxes
which is the medicine instruction. This includes information about the formulation, use, and side effects of the
medicine.
Through the advertisements done by Unilab, one notable factor present within all the consumer goods are
the guaranteed quality and results proven through testing. Unilab on it's own is trusted by many, though they are
aware of this power Unilab does not take advantage of it. Instead they allow the public to test the products
themselves in order to prove them more correct than they already are. Through the use of this honest
advertisement, Unilab creates a type of buzz through the most traditional type of media which is word of mouth.
With the use of referrals, Unilab transforms its own market into their marketers and increasing the image and
For the doctors and researchers, Unilab has provided multiple opportunities for them to operate for the
massive pharmaceutical company. Through this company continues to innovate as well as providing multiple
opportunities for the newly appointed doctors.Though given the potential risk of a monopolistic industry with all
the advancements in research done by Unilab, this issue is acknowledged by the company. According to Thomas
(2017), a potential action that Unilab is in the process of taking is slashing their research. This way they give more
space for the smaller companies to profit and with the use of the patent laws, gain priority with their
breakthroughs. Though the power to do so is completely attainable by the company, Unilab continues to work for
the common good by giving more chances for other companies and doctors. Given that they achieve a
breakthrough, prices to purchase the new products are often at a bearable price where they do not take advantage
In the context of releasing products towards the public, each product produced by all companies face a
type of regulating body, a final test in a sense, that would determine the effectivity each drug has. Provided these
drugs achieve the expected criteria, companies may begin mass production and distribution to the majority.
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Though this process is towards the end, companies tend to find themselves at a form of conflict in interest with
these drug administrators. To properly face these conflicts, Unilab submits to the comments and judgements
made. If the product is turned down, it'll be returned and continued to be worked on. If the product is accepted,
mass production begins and the drug is distributed nationwide. It is visible with their actions for those around
them, Unilab practices ethical traits within their operations of all sizes.
Unilab, as a leading company in its industry must take into consideration more than just its competitors
when dealing with the production of its goods. Given that it has a large loyal market, the process of production
must also be properly established. Included in the process would be both the creation of new products and testing
of its effects. Unilab, being aware of the risks at hand if they were to choose humans as test subjects decided not
to take the chances but rather have animals as their replacements. Through this, they are still capable of
maintaining a sense of ethics in such a practice. Given that harm is kept at its minimum or even no harm at all, it
Maximizing profit is the main objective of every business, however with the social responsibility of
pharmaceutical companies to provide health and welfare for the public, the question of whether they should
Unilab realized that although they are the leading in the industry, comprising of almost 20% of the market
share (See Figure 3), there is still a large portion of the Filipino population who are not included in the market
because they belong to low socio-economic classes. With the commercial interest aside, Unilab saw the duty that
they have towards Filipinos who cannot afford the medicine. Thus, the brand RiteMed was created, which caters
to the lower classes by promising quality medicine for a cheaper price than that of the industry.
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Figure 1: Market Segmentation of the Pharmaceutical Market (Ganchero & Pavia, 2008)
Studies have shown that forty percent of Filipinos suffer from diseases which are preventable by
medication. The only problem was that they could not afford the high-priced medicines to treat themselves. In
response to this, last 2001, Unilab constructed the Afford-a-Med programme, where several other companies
joined in to reduce drug prices. In 2002, Unilab released RiteMed, a subdivision focusing on generic and
affordable drugs, in order to cater to the less fortunate. It reduced its prices by 20 to 75 percent, yet it was still
The inclusive program through lower end medicines utilized by Unilab is their subsidiary, RiteMed,
which originally was response to the Philippine health situation back when the government needed assistance
from private companies to reduce the prices of essential drugs under GMA50 program. In 2002, Unilab set up
RiteMed, in order to seize an opportunity to expand into the low-cost medicine market. RiteMed products offered
the same efficacy and safety of leading brands at a 20 to 75 percent lower price, resulting to more drugs priced
affordably for the poor and made accessible through Government hospitals and/or clinics and through commercial
distribution channels.
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One might argue that this tapping of a different market belonging to the socio-economic classes is
unethical as the healthcare needs of the poor are used as a means to an end which is to profit. However, it is more
likely that Unilab is actually doing this for a more meaningful societal impact. Most of the articles gathered about
this inclusive market discusses how RiteMed is aligned with the corporate social responsibility (CSR)
commitment of its parent company, Unilab. Below is an excerpt from RiteMed’s corporate strategy, stating its
According to Ganchero and Pavia (2008), these efforts of Unilab to reach the unmet needs of those who
cannot afford medicine would not only bring commercial success to Unilab but would also lead to the improved
health of the community. It would also bring about increased health awareness, access to affordable and quality
medicine, and public trust to generic brands. It would also lessen cost for the healthcare providers and drug
manufacturers.
Because of the decreased cost in the production, Unilab is able to offer medicine that caters to those who
cannot afford branded medicine. RiteMed achieved this by promoting directly to the drug specialists and used
compliance to the Generics Act for these pharmacists to advocate and present the option of generic brands to
patients. With the provisions of the Generics Act, pharmacists are expected to educate patients (at the counter) and
provide the choice of branded or generic drugs available. Thus, pharmacists are “ethically and professionally
bound to consider RiteMed’s products” as an option to the customer (Ganchero & Pavia, 2008).
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According to Castillo (2016), the following are the differences between generic and branded medicine:
Because of RiteMed’s successful launch, the societal goals that it aims to achieve can be realizable and
attained. By designing a business around the unmet needs of the poor, RiteMed will also be able to reap economic
benefits which are increased sales and market share, strengthened brand positioning, enhanced corporate image,
and increased ability to attract and motivate employees because of the company’s social mission (Ganchero &
Pavia, 2008).
Unilab has nine different programs with their own unique purposes and rationales that are still in
operation up to now displayed in their official website. Noteworthy programs that Unilab has set up in the past
few decades were the Lingap Diwa Advocacy Program, AgeWell Club, and UMED Online. Unilab’s launched
programs all serve a different purpose and are in essence serving a true greater purpose and are handled and
Lingap Diwa Advocacy Program is spearheaded by Medichem, the mental health division of Unilab, and
its aims to reduce stigma, prejudice, and discrimination to patients with mental disorders and empower the
community to be more aware of mental health. It is in line with their vision of being compassionate and enabling
those who are in need. The AgeWell Club is community program launched by Unilab for anyone above the age of
50 to engage themselves to be more active and to embrace aging by incorporating a holistic approach to aging
39
well. UMED Online is Unilab’s way to raise awareness on relevant health and medical issues by providing short
courses about them. These programs are some of Unilab’s numerous launched programs with each and every one
targeting a different set of audience also serving a different agenda and purpose.
Overall, Unilab’s practices are aligned to their mission in providing quality healthcare to the Filipinos. In
their practices, ethical codes of practice are observed as they also have an obligation to follow and comply with
the organizations that they are part of. This includes their membership to the Pharmaceutical and Healthcare
Association of the Philippines where all its members are expected to conduct themselves in the highest ethical
behavior. Although it can easily be concluded that Unilab is geared towards the generation of profit, it will be a
hasty conclusion to assume such, given that the company has a commitment in fulfilling their ethical obligations
and corporate social responsibility. Thus, Unilab’s ethical practices can be considered as its advantages that guide
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X. Conclusion
United Laboratories Inc., the Philippines leading pharmaceutical company and considered as one of
Asia’s most reliable and trusted healthcare provider, is expected to fully operating with actions that affirm with
proper business ethics and social responsibility. Data collected, synthesized, and presented in this study on the
ethical practices of Unilab are from reliable online sources and an interview of a person who is currently working
for Unilab for more than two decades. It is seen that with everything the company does, it is all align and
embedded deep within their vision-mission statement and their culture of “Bayanihan” or “teamwork with a
heart”. Throughout its existence the company has yet to deal with legal and ethical issues proving that they are an
exemplary company in producing top-notch quality affordable medicines without resorting to unethical means.
Unilab is also considered as one of the best, if not the best, employer in all of Asia. They treat their
employees as an asset to the company and it is seen with the compensation and benefits they are providing their
employees. By incorporating the culture of “Bayanihan” within their employees they are creating and promoting
a performance-driven environment where there is collaborative and holistic approach to sustainable growth.
Unilab’s value for their human resources are one the main driving factors for their growth to the top of the
pharmaceutical industry with the highest market share in Philippines pharmaceutical industry. Employees
consistently noted that there truly is a positive work environment promoting high levels of productivity and unity
among everyone. Unilab has been consistently known for its top-quality prescription drugs and to continue
staying on the top they resorted to setting up a new manufacturing subsidiary known as Amherst Laboratories,
Inc. (ALI). ALI is said to be to have state-of-the-art and modern facilities and equipment to truly provide
In terms of safety and waste management, Unilab is strictly adhering to waste management protocols and
has a specific segregation strategy. Safety of their employees is Unilab’s utmost priority and precautionary
measures are taken seriously since the company uses various types of chemicals that can be harmful to humans if
handled incorrectly. Protective clothing is required upon entry of their facilities and everyone must strictly adhere
to this rule and regulation stipulated by Unilab’s top management. Unilab utilizes a third-party in order to manage
41
their waste disposal procedures and this is to ensure that their would be no risk of mishandling toxic chemicals.
They also make it a priority to reduce wastes produced especially wastage of water. Unilab is also seen to be
engaged in partnerships with companies in order to jumpstart various programs geared towards the preservation of
In conclusion, United Laboratories Inc. is clearly and ultimately geared towards providing quality
healthcare by all means ethical as they are the leading pharmaceutical company in the Philippines and consumers
have already set a reputation that they are to be trusted. Unilab practices ethical means in everything that they do
from all operations and relationships with various stakeholders. The researchers’ personal view on Unilab has
remained to be extremely positive and has set a trusted reputation in their eyes. The researchers also conclude that
Unilab is operating under an economic-regulatory model of corporate social responsibility basing it all on the
findings and results obtained from the study. This is due to Unilab not entirely focusing on only making profit but
also decided to give back to the community with various programs and with their RiteMed initiative they tried to
appeal and cater to poorer families by introducing a lower price medicines without compromising quality. Unilab
is indeed a leader in pharmaceutical industry and operates ethically and responsibly in their ways of creating profit
and value for their stakeholders. Unilab can truly be an ideal company to follow its footsteps in regard with
business ethics and this is particularly important to the researchers, as future aspiring business leaders.
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XI. Acknowledgements
To begin, the researchers would like to express their gratitude towards their professor for this course,
Business Ethics and Social Responsibility, Sir Earl Escareal. The gratitude mainly focuses on the opportunity to
work on this paper, as well as the support he provided throughout consultations. Through this course, we have
managed to gain a better understanding of the importance of work ethics and a business’ corporate social
responsibility for its environment. Through the opportunity to work on this paper, we as Lasallian business
students have managed to apply the lessons learned in the course and properly evaluate the ethical practices done
Second, the researchers would also like to thank the representative of Unilab for being the bridge to
information that was needed for this paper. Their identity is to remain confidential for certain work reasons, and
we as researchers are to respect their decision. Because of his/her contribution, we have managed to go more
in-depth with the various practices within Unilab and overall gained a better understanding of the day-to-day
operations done within their facilities. In addition, we would like to thank Unilab themselves for allowing a “drug
tour” around their facilities in order for us to gain a deeper immersion on the types of work and setting of the
facilities, through this a clearer understanding is formed and the capacity for the researchers to evaluate on
Third would be the researchers themselves. The time and effort given to produce this output will remain
as a form of inspiration to constantly improve on all forms of work that we are to take on. Through this project, as
a team member, individually we have learned the value in a team and the value of divisions in labour. To our
group leader, we would like to thank you for your unending passion and commitment to the completion of this
project.
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Lastly, the researchers would like to thank the readers themselves for their interest and time in going
through this paper. We hope that through this they may gain more knowledge and a better understanding of the
ethical practices done within Unilab and would reference this paper for their future studies.
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XIII. Appendix
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Figure 4: Market Share of Top 10 Pharmaceutical Companies (Ganchero & Pavia, 2008)
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Figure 5: Organizational Chart
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