Corporations have many stakeholders, of which the shareholders are just one group. There are also, for example, creditors, employees, suppliers and customers. In the case of pharmaceutical giants, society at large is also a stakeholder of a sort. The products a company like Merck develops improve the health and well-being of the population at large. Government can be said to be the stakeholder that represents this interest.

In the case of Mectizan, this may have been a significant factor in the decision to proceed with development. The development and free distribution of the drug generates goodwill on the part of Merck. That goodwill is an intangible asset. Merck relies on governments for a favorable legislative and structural environment in which to operate. It may be the case that the goodwill generated by the occasional apparent act of altruism allows for the perpetuation of that favorable environment. Therefore, even though the...
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