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*0 * The Expanding Circle of Moral Responsibility Manuel Velasquez, Santa Clara University Katie Buck, Affymetrix *0 * Moral Responsibility • Two Meanings: – Obligation or Duty – Culpability: Being to blame for an injury • Culpability: Agent is morally responsible for an injury when: – Agent caused it – Agent knew it – Agent could have prevented it *0 * Traditional Extent of Corporate Moral Responsibility • Traditionally: – Company is morally responsible for injuries it inflicts on other parties – Provided: • it caused the injuries itself, • it knew it was causing those injuries, and • it could have prevented the injuries *0 * Expansion of Downstream Moral Responsibility • During Second half of 20th Century – Company is held responsible for injuries users of its products inflict on themselves while using the company's product (product liability) • Provided: company knew about it, and could have prevented it. – Company is also held responsible for injuries users inflict on themselves using defective product • Even if: company did not know about it, and could not have prevented it (strict liability) *0 * Expansion of Upstream Moral Responsibility • Last 20 years: – Companies also held responsible for injuries its suppliers inflict on third parties (e.g., employees). • Most famous: Nike "sweatshops" – Here: Nike perceived to be an indirect cause, knew or should have known what was going on, and could have prevented it. *0 * Expansion of Downstream Moral Responsibility • And, Last 20 years: – Companies increasingly held responsible for injuries their customers inflict on third parties using the companies’ products. – Examples: • Gun manufacturers • Taverns, Bars serving alcohol • Manufacturers of computers *0 * Two Main Issues -To what extent is a company morally responsible for how customers use products, i.e., for injuries customers might inflict on third parties using its products? -How can company minimize its exposure to this kind of moral responsibility? – After the fact: publicists, lawyers – Before the fact: monitor customer sales, refuse to sell if needed. • Gun sales laws • Limiting alcoholic beverage sales *0 * Biotech Industry • Affymetrix is dealing with these • Products can be used to perform genetic analyses. Information gained by analyses can be used in various ways, some of which have high potential for injury. • Company uses an “Ethics Advisory Board” to help evaluate and monitor customer uses of its products. *0 * Affymetrix • A spin-off of Affymax – Affymax (founded 1988 by Alejandro Zaffaroni, sold to Glaxo, sold to private investors in 2001) tested compounds for their potential use as drugs on miniature chips. • Affymetrix, the spin-off, was founded by Steve Fodor & A. Zaffaroni – Made miniature chips containing thousands of samples of DNA that allow users to analyze thousands of pieces of genetic information simultaneously *0 * Affymetrix History • 1989: Affymax Research Institute created as startup inside Affymax, research team led by Steve Fodor • 1991: In February S. Fodor & research team publish report in Science on using photolithography to embed biochemical compounds on silicia-based chips. • 1992: Affymetrix becomes an independent company to pursue this new technology *0 * Affymetrix • 1993-1995: Raises $21 million from private investors in first round funding, $39 million in second round, and $31 million in government research grants to partner with academic research institutions • 1996: sells first products, (total of 9 systems by end of the year); in June Affymetrix goes public on Nasdaq, raises $90 million. *0 * Affymetrix • 2000: Company had secured over 100 patents, sold over 100,000 of its “GeneChip” microarrays • 2001: Affymetrix was leading supplier of genetic diagnosing systems for research *0 * Affymetrix (data in thousands) 2000 2001 2002 2003 2004 2005 Revenues $200,830 $224,874 $289,874 $300,796 $345,962 $367,602 Net Income (loss) ($53,990) ($33,121) ($1,630) $14,285 $47,608 $57,516 *0 * Affymetrix • 1997: Member of Board of Directors raises question of company's moral responsibility for how its products are/will be used. • Affymetrix forms Ethics Advisory Board to provide company with advice on its moral responsibilities. • EAB meets periodically, discusses ethical issues related to customer use of company's products, makes (advisory) recommendations