Ethical Dilemma with Stakeholders

Day 1

Hour 1-2: Immediate Assessment and Information Gathering

• Objective: Gather all available data on the side effect, including the internal research report, patient case studies, and any existing literature.
• Reasoning: A comprehensive understanding of the situation is crucial for informed decision-making.

Hour 3-4: Assemble a Crisis Management Team

• Objective: Form a cross-functional team including legal, compliance, R&D, communications, and operations.
• Reasoning: A multidisciplinary approach ensures that all aspects of the issue are considered.

Hour 5-6: Legal and Ethical Review

• Objective: Consult with the legal team to understand the implications of immediate disclosure vs. waiting for more data.
• Reasoning: Balance legal obligations with ethical responsibilities to patients and shareholders.

Hour 7-8: Develop Preliminary Communication Strategy

• Objective: Work with PR and communications to draft internal and external messages. Prepare for potential media inquiries.
• Reasoning: Transparent communication can help manage public perception and maintain trust.

Hour 9-10: Board Member Briefing

• Objective: Conduct a briefing with board members to update them on the situation and outline the proposed action plan.
• Reasoning: Ensure alignment and prepare for the upcoming board meeting.

Hour 11-12: Consult Key Stakeholders

• Objective: Speak with key opinion leaders in the medical community and patient advocacy groups to gauge their perspectives.
• Reasoning: External insights can guide the decision-making process and enhance credibility.

Day 2

Hour 13-14: Scenario Planning and Risk Assessment

• Objective: Conduct a risk assessment for different scenarios, including immediate disclosure, waiting for more data, and potential regulatory responses.
• Reasoning: Anticipate the outcomes of each scenario to make a well-informed decision.

Hour 15-16: Draft Contingency Plans

• Objective: Prepare plans for dealing with potential fallout, including stock price impact, regulatory actions, and lawsuits.
• Reasoning: Being prepared can mitigate the impact of negative outcomes.

Hour 17-18: Finalize Board Meeting Presentation

• Objective: Prepare a presentation for the board meeting, including data, risks, and proposed actions.
• Reasoning: A clear presentation will facilitate decision-making and ensure all board members are informed.

Hour 19-20: Board Meeting Preparation

• Objective: Rehearse the presentation and anticipate board member questions and concerns.
• Reasoning: Being well-prepared enhances the credibility and effectiveness of the presentation.

Hour 21-22: Internal Communication

• Objective: Brief senior management and department heads to ensure they are informed and aligned.
• Reasoning: Consistent messaging across the company is crucial for maintaining employee morale and trust.

Hour 23-24: Board Meeting

• Objective: Present the situation, proposed actions, and seek board approval for the chosen course of action.
• Reasoning: The board's buy-in is essential for any significant decision affecting the company.

Next Steps Post-Board Meeting

• Immediate Disclosure: If the decision is to disclose immediately, prepare an official statement for regulatory bodies, investors, and the public. Update product warnings and inform healthcare professionals.
• Wait for More Data: If the decision is to wait, set a timeline for data collection and reassessment. Communicate the plan internally to maintain trust and transparency.
• Earnings Call Preparation: Adapt the earnings call script to address the issue honestly, focusing on the company's commitment to patient safety and regulatory compliance.

Considerations

• Legal Liability: Ensure that all actions comply with legal obligations and minimize the risk of future lawsuits.
• Ethical Obligations: Prioritize patient safety and transparency to maintain ethical standards.
• Financial Implications: Consider the long-term financial health of the company over short-term stock price fluctuations.
• PR Strategy: Develop a proactive communication strategy to manage public perception and maintain trust.
• Employee Morale: Keep employees informed to prevent misinformation and anxiety.
• Regulatory Relationships: Maintain open communication with regulators to demonstrate responsibility and cooperation.

This plan prioritizes patient safety and transparency while considering the company's legal and financial standing.