“We are deeply concerned and disappointed by these serious allegations of fraudulent behaviour and ethical misconduct by certain individuals at the company and third-party agencies. Such behaviour would be a clear breach of GSK’s systems, governance procedures, values and standards. GSK has zero tolerance for any behaviour of this nature.” Said by one of the official representatives in GSK in 2013.
GSK, a global healthcare company which aimed to help people live longer and better enjoy the life by offering them a diversified range of services, including chemical reagents, drugs and also some health care products. Last year, the Chinese government and judicial department accused the huge bribery scandal in GSK plc, they revealed the whole bribe process from internal of the business to the outside society. From the latest news, the Ministry of Public Security has arrested several suspicious includes the sales director and financial manager in GSK China and other related people from third party like the travelling agencies etc.
After a long investigation, the police got to know the cause for their bribery: due to expanding of the chemical market and inflation reasons, GSK China chose a special ways to release sales pressure in order to maintain the market share in the pharmaceutical industry. Therefore, the superior passes sales target to subordinate and then give the plan to pharmaceutical sales representatives, those sales people use the travelling tickets to try to attract attention of the doctors as well as the superintendent in hospitals. So that the doctors need to use the prescription they gave and introduce them to patient. Thus “invisible dark hand” prompts the sales growth of a company without caring about the customers.
That evidence of unethical conduct violated the human right of general public and collapses the moral dimension and social rules. Which is a typical case to appeal the public start thinking about the business’s social responsibilities and sustainability, once a company gains the profits, what they need to do is how to pay back the society, not try to maximize the benefits only, some great examples just like the Novartis, the MSD, they donate a lot of money every year to set up own charity and school. The public, as well as the individuals should realize that the business ethic is a fundamental of success.
References:
http://www.gsk.com/
http://news.xinhuanet.com/fortune/2013-07/05/c_124964343.htm
http://uk.reuters.com/article/2014/09/09/uk-gsk-china-corruption-idUKKBN0H407S20140909
http://www.stockwisedaily.com/glaxosmithkline-plc-adr-gsk-might-face-legal-trouble-in-chinese-consumer-healthcare-unit/235406/