Case Analysis Pharmaceutical Company - 2946 Words

Introduction In 2013, GlaxoSmithKline’s (GSK) Chinese operations were investigated for paying millions of dollars in bribes to Chinese medical professionals via a network of travel agents and other parties. The UK based pharmaceutical company was bribing these professionals in order to obtain monetary gains and build their presence in China. GSK had a seemingly in-depth compliance program and code of conduct for its employees, management, and third parties, but it fell short as bribery ran rampant. GSK was eventually found guilty by Chinese courts and instructed to pay a significant penalty, while five members also received prison sentences. The gift giving culture in China may be partly to blame for the common practice of bribery, but there are also other internal and external factors to consider. GSK as well as other companies and the Chinses government are using this case as a learning tool and making an effort to make necessary changes to prevent corruption in the futur e. This case provides an excellent example of the risks and challenges companies – not just pharmaceutical companies – may face when doing business in China. GSK’s Ethics and Compliance Program GSK’s company Code of Conduct expected employees to â€Å"make every effort to comply with local laws and norms† (Quelch Rodriguez, 2013, p. 2). This Code was imposed for all of the company’s operations around the world. While this Code may be effective in the company’s home country, China has higher rates ofShow MoreRelatedCase Analysis : Mylan Pharmaceutical Company Essay1584 Words   |  7 PagesMany companies often engage in activities that are viewed as unethical for one reason or another. For example, the Mylan pharmaceutical company with regards to their recent price hiking EpiPen dispute. Mylan is one of the largest global pharmaceutical companies in the world. They market many products to other companies, governments and even sell retail directly to customers. 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SWOT ANALYSIS†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 5.Strategy 9 6. Recommendations 9 7. References 10 Executive summary To conceive a business we must first of all understand its environment which depends on factors that are used in the PESTEL