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Running Head: GSK GSK Case Study
GSK Case Study1Introduction In this present paper, we will discuss case study, namely, GlaxoSmithKline which is also known as GSK. It's headquarter is located in the Brentford, London. The company was established in the 2000's. The merger had taken place between the two companies, namely, Glaxo Wellcome plc and Smith Kline Beecham plc. The company mainly deals with vaccination, biology and the health care of consumer. The mission of company is “to do better”, “to feel better” and “live longer”. The case is related to the bribe which is given by the GSK to the hospitals in China in order to prescribe their medicine only. The GSK stated by the authorities of the Chinese regarding bribery in the July 2013. Corrupted environment created by GSK As the overview of Case study is done and it is founded that the GSK was blamed for the creation of corrupt environment in the China in 2013. The GSK offered three billion Yuan as bribery to the doctor and hospital. So that doctors will prescribe more drugs of their company only. It was detained by the Chinese authorities and has alleged that they had offered money to the doctors or that they have created the corrupt environment in China. It is the third largest company in terms of creating the revenues. So in order to increase their revenues and to expand their market share the company decided to take this step. The Company can be solely blamed for this scandal that had happened. They also received the kickbacks from local agency that deals in traveling to arrange the conference. The authorities have also found that the bribery was core activity of the company. In order to boost the share prices and sale so the company was forced to choose this path. There was serious violation and this case was one of the high-profile cases of
GSK Case Study2the China. So bribery is one of unethical and illegal practices that have been considered something wrong around the globe. Foreign Companies are targeted easily in China Local companies that are operating in China or which belong basically to China have the deeper knowledge of rules and laws that are incorporating in China. So, local companies are also aware about the basic norms which are required to be followed. But it was founded from past records that there was much corruption when foreign companies entered into the boundaries of china.Authorities also say that foreign companies are not aware of laws and regulation of the countries.That’s why there is more demand of local companies. The local companies in China have also gained trust of its authorities. China was found in middle of growing anti-corruption program. The cases of corruption were really less when there were no foreign companies.(Margiotta-Casaluci et al . ,2013) But as soon as the foreign countries came to the China level of corruption cases have increased a lot. That’s why local companies are not targeted easily as compared to foreign countries. GSK Response towards Allegation The GSK belief was that there response towards allegation was very professional and even they are cooperating really well for this. The GSK says that it is allegation on their company. The China has raised a question over their behavior. The Chinese authorities quoted that this type of the behavior is considered to be fraudulent. So the GSK executives are deeply hurt by the behavior of China authority. The GSK people say that they are too much into their work and theyare deeply concerned with all these affairs. They are deeply disappointed by the allegation of the China Authorities (Arshad et al . ,2016). They say this type of behavior is clear instance of
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