Theranos Case (Change, Power)

Question 1

Ethics:

Forged Financial Forecasting

Answer 1

CFO, Henry Mosely was fired after raising concerns over financial forecasting = not a “team player”

Question 1

Ethics:

Walgreens Testing (Blood collection)

Answer 1

Theranos transported blood back to HQ to do testing on commercial machines = forge Edison results

no FDA approval

Question 2

Ethics

Colonel David Shoemaker

Answer 2

Shoemaker = head of the army med dept
Only deploy if advice from FDA with appropriate regulatory approval

Question 3

Ethics

Walgreens Testing (R&D)

Answer 3

Going live into Walgreens stores to collect blood samples to use to do R&D for Edison is likened to an unauthorized experiment

Question 4

Ethics

Hedge fund partners presentation

Answer 4

Theranos presented a pptx
Forged data from commercial analyzers

Fabricated financial forecasts
- 165 million gross profit 2014
- 261 million revenue
- 1.08 billion gross profit 2015
- $1.68 billion revenue

No CFO

Question 5

Ethics

Chiat/ Day

Answer 5

Blatant claims with no basis in reality
“over 800 tests” on a drop of blood”
“ ready in less than thirty minutes “
“ approved by FDA “
“endorsed by key medical centers”

Question 6

Ethics

Dishonesty

Answer 6

Holmes would tell a lot of lies to both staff and

Question 7

Ethics

Fake scientific and financial data

Answer 7

Ian Gibbons chief scientist was drawn into legal battle over company proprietary info

Question 8

Ethics

Silicon Valley Problem

Answer 8

‘ethics problem’, walking a fine line between what is actually illegal and what constitutes bad behavior and there have been calls for big companies to instill an ‘Chief Ethics Officer’.

The problem is rooted in the industry