The Vioxx recall case and comments

Abstract

PurposeThis paper aims to offer a succinct description of the Vioxx recall in 2004 and discuss the fundamental reasons why Merck got into this trouble.Design/methodology/approachA review of literature has been conducted to provide key facts about the Vioxx disaster and to shed light on the operations of its maker Merck. The Vioxx recall case is analyzed from a perspective including both company profits and public interest.FindingsMerck aggressively marketed an unsafe drug, under the brand name Vioxx, without properly disclosing its serious side effects to consumers. After the facts were revealed, the company faced costly lawsuits, angry investors and falling profits. This case clearly shows how a disaster can occur when a company becomes greedy and seeks undeserved profits at the expense of ethics and social responsibility.Practical implicationsBuilding a successful and competitive business requires managers to make decisions that balance profit and social responsibility. When business managers run their business solely for profit, problems will almost certainly occur. Such problems can cause severe damage not only to the company's customers but also to the company itself.Originality/valueVioxx is one of the biggest marketing mistakes in recent business history. This paper provides valuable learning insights and should be useful to corporate executives, government regulators and business scholars.