Theranos: Who Has Blood on Their Hands? (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Theranos: Who Has Blood on Their Hands? (A) Case Study Help

Introduction

Theranos is a well-known privately owned organization, which is mainly known for its healthcare technology. It is established in the year 2004 by (Elizabeth Holmes). There is a claim come from the organization side that its manufactured technology can perform the best and most extensive variety of tests by using only a small drop of blood from the finger hole.

Holmes became a media darling and a Silicon Valley star, and Theranos was valued at over $9 billion at its peak. After time pass it is revealed from the different articles and media news that the technology of Theranos is not able to work exactly as it mentioned in its advertising. This fraud and the misleading act of the organization are used to gain investors and public support for their blood testing technology's accuracy and trustworthiness.

The organization’s downfall was swift and dramatic. In March 2018, Elizabeth and her former professional partner, (Sunny Balwani), were accused on numerous counts of scandals and intrigue to obligate this scandal. Many stakeholders could be said to have "blood on their hands" when it comes to the Theranos scandal. The question of who bears the greatest responsibility is a matter of ongoing debate and is likely to be explored in detail during the upcoming trial.

Problem Statement

The issue at hand is to determine who bears the greatest responsibility for the Theranos scandal, in which a healthcare technology company misinformed stakeholders, supervisors, and the communal about the accuracy and dependability of its blood testing technology devices.

The disgrace has raised questions about the ethics of entrepreneurship, the responsibilities of corporate leaders, and the role of regulators and the media in holding companies accountable. The upcoming trial of Elizabeth Holmes and Sunny Balwani will shed light on the specifics of the case, but the larger question of who has "blood on their hands" remains a matter of ongoing debate.

Situational Analysis

Commitment Do Startups with their Investors

Startups have fiduciary and ethical commitments to their investors to act in their best interest and fulfill their obligations to provide a return on their investment. This includes providing accurate and transparent information about the company's performance, finances, and prospects, as well as complying with legal and regulatory requirements.

In addition, startups have the accountability to operate ethically and for the greatest benefit of their stakeholders, including their employees, customers, and the wider community. This includes maintaining high standards of corporate governance, ensuring the safety and security of their products and services, and adhering to ethical and legal standards.

Fiduciary Commitments

Fiduciary commitments refer to the legal obligation of startups to act in the best interest of their investors. This means making decisions that are aimed at maximizing returns for investors, managing investments responsibly, and disclosing all relevant financial information.

Startups have to be transparent with their investors about the state of the company and any potential risks to the investment. They must also manage their finances prudently and with a long-term focus, minimizing the risk of financial failure.

Ethical Commitments

Ethical commitments refer to the moral obligations of startups to behave ethically towards their investors. This means adhering to ethical principles such as honesty, transparency, fairness, and respect. Startups must communicate honestly with their investors, providing them with accurate information about the company's operations, finances, and prospects.

They must also respect the rights of their investors, treating them fairly and equitably. Additionally, ethical behavior in healthcare startups requires a commitment to patient safety and well-being, prioritizing the health and welfare of patients over financial gain.

Theranos Focus on Individual Healthcare

Healthcare startups have a higher standard of ethical and fiduciary commitments due to the unique nature of the healthcare industry. The healthcare industry involves the health and well-being of individual patients, making it important for startups to operate with the highest level of integrity, transparency, and accountability.

Additionally, healthcare startups must comply with a complex regulatory environment that is designed to protect patient safety and ensure the efficacy of healthcare products and services. This regulatory environment places additional obligations on startups to prioritize patient safety and comply with applicable regulations...............

Theranos Who Has Blood on Their Hands (A) Case Study Help