Business Ethics Fortnight "More Fun than Decent People Think Should Be Legal"

United States Military Academy

Team Members: Christopher Gin, Nicholas Soroka, Rebecca Bort, Erin Morgan, James Powers

Advisor: Lieutenant Colonel Karen Christrup

Topic/Audience: Weight Loss Pills and Eating Disorders

Executive Summary

Americans’ rising obsession with the perfect body has led to an epidemic of eating disorders, including anorexia and bulimia, especially among teenage girls. Compounding the problem, predatory companies market weight loss pills that may have adverse affects on the long-term health of their patrons. One of the ways drug companies have capitalized on the growing interest in weight loss is by producing products that avoid FDA approval under the guise of nutritional supplements. However, many such drugs act merely as substitutes rather than supplements, thus depriving the person who consumes the pill of vital nutrition. The companies that manufacture and market these products are often disreputable and declare bankruptcy as a means of avoiding lawsuits. In 1992, the FDA banned dietary supplements containing 111 different ingredients to include guar gum which is still present in some weight loss pills, such as Eat-Less, as a composite ingredient.

Walgreens is the largest national retail pharmacy chain offering a variety of healthy supplements to its customers. Millions of Americans trust Walgreens for their prescription drugs, as well as over-the-counter medicines and supplements. Currently Walgreens, as well as other reputable pharmacies, sells weight loss pills, including Eat-Less. Pharmacies’ participation in merchandising potentially deadly weight loss pills in their stores raises significant issues for today’s society.

Our presentation will outline the ethical, legal, and financial aspects of this issue and propose recommendations to Walgreens. To uphold the Walgreens commitment to sell “honest goods…by honest methods” Walgreens must take the initiative on this issue and distinguish itself from its competitors by removing weight loss pills such as Eat-Less from its shelves. We recognize some initial costs—which would be minimal because Walgreens does not rely on weight loss pills for a large part of its profit—but outline a plan for Walgreens to not only recoup the losses incurred from dropping these products, but to reap additional profits from the move.

Our plan includes a marketing campaign to combat anorexia and bulimia and educate the public on the harmful effects of weight loss drugs. A goodwill campaign, properly run, will increase public trust and name recognition. The increase in sales generated by the campaign will more than offset the losses from the weight loss pills. Moreover, because many weight loss pills are eventually banned by the FDA and generate multi-million dollar lawsuits, Walgreens will avoid costly litigation.

Walgreens has a long history of innovation, adaptation, and service to the community. By taking the initiative on this issue, Walgreens can continue its proud tradition of ethical responsibility and sound business practices.