write a research paper on Elizabeth holmes – Theranos Scandal
The paper should discuss the ethical dilemma, the effect and consequences of the ethical act and the outcome of the case. You must use at least two of the ethical theories discussed in class to explain the reason and circumstances the individuals involved were able to commit the unethical acts that took place.
Sample Answer
Sample Answer
Elizabeth Holmes and the Theranos Scandal: An Ethical Dilemma Unveiled
Introduction
The Theranos scandal, involving the rise and fall of Elizabeth Holmes, shook the world of healthcare technology. Holmes, once hailed as a visionary and a Silicon Valley success story, faced serious allegations of deceiving investors, regulators, and patients about the capabilities of her blood-testing company, Theranos. This research paper will explore the ethical dilemma surrounding the Theranos scandal, analyze the consequences of the unethical acts committed, and discuss the outcome of the case. Furthermore, we will apply two ethical theories discussed in class to shed light on the reasons and circumstances that allowed individuals involved to engage in these unethical acts.
The Ethical Dilemma
At the heart of the Theranos scandal lay a fundamental ethical dilemma – the deceitful misrepresentation of a medical product that potentially endangered patients’ lives. Holmes claimed that Theranos had developed a revolutionary blood-testing technology capable of conducting numerous tests using just a few drops of blood. However, internal whistleblowers and investigations revealed that the technology was flawed and inaccurate. The ethical dilemma emerged when Holmes and her team decided to mislead investors, regulators, and patients about the capabilities and reliability of their product for financial gain and personal ambition.
Consequences of the Unethical Acts
The consequences of the unethical acts committed by Holmes and her team were far-reaching. Firstly, patients who relied on Theranos’ blood tests received inaccurate results, which could have led to misdiagnoses and improper medical treatments. This put their health and well-being at risk. Secondly, investors who poured millions of dollars into Theranos based on false claims suffered significant financial losses. Additionally, the credibility of the healthcare industry was undermined, eroding public trust in innovative technologies and start-ups.
Outcome of the Case
Elizabeth Holmes and former Theranos president Ramesh “Sunny” Balwani faced legal repercussions as a result of their actions. In 2018, the U.S. Securities and Exchange Commission (SEC) charged Holmes with fraud, leading to a settlement requiring her to pay a fine, return shares, and relinquish her control over Theranos. In 2021, Holmes stood trial on criminal charges of conspiracy and fraud. The trial is ongoing at the time of this research paper.
Applying Ethical Theories
To understand the reasons and circumstances that allowed individuals involved in the Theranos scandal to commit unethical acts, we can analyze their behavior through two ethical theories: utilitarianism and ethical egoism.
Utilitarianism suggests that actions should be evaluated based on their overall consequences and whether they maximize happiness or well-being for the greatest number of people. In the case of Holmes and Theranos, it appears that they prioritized their own ambitions, financial gains, and reputation over the well-being of patients and the truth. They may have believed that if they could succeed in revolutionizing blood testing, it would bring significant benefits to society. However, their actions resulted in harm to patients, loss of investor funds, and damage to public trust.
Ethical egoism posits that individuals should act in their own best interest, regardless of how it affects others. This theory could explain why Holmes and her team engaged in fraudulent practices. Their self-interests drove them to deceive investors by inflating the capabilities of their product and misrepresenting their company’s value. They may have believed that personal success outweighed any negative consequences that others might suffer as a result.
Conclusion
The Theranos scandal involving Elizabeth Holmes raises important ethical questions regarding deception, accountability, and the potential consequences of unethical acts. By misrepresenting the capabilities of Theranos’ blood-testing technology, Holmes endangered patients’ lives and deceived investors. The consequences included compromised patient health, financial losses for investors, and a loss of trust in healthcare innovation. By applying ethical theories such as utilitarianism and ethical egoism, we can gain insights into why individuals involved in the scandal may have acted unethically. Ultimately, this case serves as a reminder of the importance of ethical decision-making in business and healthcare, emphasizing the need for transparency, integrity, and accountability to protect public welfare.
