Ethics in Organizational Communication Theranos Case Study Kylie Lambert Washington State University COM563, Spring 2019
What are Ethics?
Theranos Case Study • Elizabeth Holmes, founder of Theranos, has often been compared to Jeff Skilling, former CEO of Enron (Steinmetz, 2019) • Similar to the Enron scandal, the Theranos case study reminds us of the importance of ethical communication and accountability of actions
The Ethical Dilemma
• In need of additional financing, Theranos signed a deal with Walgreens and began performing tests on patients that often yielded inaccurate results (Winfrey, 2019). • To continue receiving support from investors, Holmes faked demonstrations. She communicated with shareholders, employees, investors, and the public that blood tests were done on the Edison device (Theranos’ own blood testing machine), when in reality they were done on competitor equipment in the Theranos lab. • The FDA uncovered a flawed blood-clotting test on over 80 patients, resulting in incorrect medical decisions • Regulators found problems with Theranos’ lab practices in 2016, saying they were putting patients in danger (CNBC, 2017).
Application of Ethical Principles
Utilitarianism
• Utilitarian theory focuses on the overall happiness through actions or decisions • Holmes frequently cited her uncle’s death from cancer as her motivation for trying to create “a world in which no one ever has to say goodbye too soon” (Winfrey, 2019).
• Two types of virtue: intellectual and moral
Virtue Ethics
• Responsibility of Theranos to be upfront about blood-testing, and provide detail regarding results. The decision to hide results and overall process of blood-testing creates a perception that the company lacks virtue.
Exploration of Choices
Discussion Prompts
1.
In an organization, it is the responsibility of company leaders to implement ethical actions and behaviors. Do you think any blame should be placed on Theranos employees?
2.
If you were a Theranos scientist, what ethical steps would you take knowing the results you were providing to patients were inaccurate?
3.
While her intentions may have been to help the greater good, Elizabeth Holmes’s actions were ultimately selfish. How did her actions shift from Utilitarianism to Egoism?
References • Bilton, N., & Bilton, N. (2016, September 07). Exclusive: How Elizabeth Holmes's House of Cards Came Tumbling Down. Retrieved March 20, 2019, from https://www.vanityfair.com/news/2016/09/elizabeth-holmes-theranos-exclusive
• Bowie, N. E. (1985). Making ethical decisions. • Phillips, M. J. (1997). Ethics and manipulation in advertising: Answering a flawed indictment. Westport, CT: Quorum. • Johannesen, R. L., Valde, K. S., & Whedbee K. E., (2008). Ethics in Human Communication (6th ed.). Illinois: Waveland Press, Inc. • Steinmetz, K. (2019, March 17). The Inventor: Inside HBO's Elizabeth Holmes Theranos Doc. Retrieved March 20, 2019, from http://time.com/5550930/elizabeth-holmes-theranos-documentary/ • Winfrey, G. (2019, March 18). New HBO Documentary Seeks to Explain How Theranos Founder Elizabeth Holmes Created a $9 Billion Scam. Retrieved March 20, 2019, from https://www.inc.com/graham-winfrey/the-inventor-elizabeth-holmes-theranos-alex-gibney-hbodocumentary.html Images:
• https://pixabay.com/photos/laboratory-medical-medicine-hand-3827745/ • https://commons.wikimedia.org/wiki/File:Nuclear_nonproliferation_discussion_130417-D-NI589-107.jpg • https://www.flickr.com/photos/fortuneglobalforum/22110651713/
