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Running Head: GSKGSK Case Study
GSK Case Study1IntroductionIn this present paper, we will discuss case study, namely, GlaxoSmithKline which is also knownas GSK. It's headquarter is located in the Brentford, London. The company was established inthe 2000's. The merger had taken place between the two companies, namely, Glaxo Wellcomeplc and Smith Kline Beecham plc. The company mainly deals with vaccination, biology and thehealth care of consumer. The mission of company is “to do better”, “to feel better” and “livelonger”. The case is related to the bribe which is given by the GSK to the hospitals in China inorder to prescribe their medicine only. The GSK stated by the authorities of the Chineseregarding bribery in the July 2013.Corrupted environment created by GSKAs the overview of Case study is done and it is founded that the GSK was blamed for thecreation of corrupt environment in the China in 2013. The GSK offered three billion Yuan asbribery to the doctor and hospital. So that doctors will prescribe more drugs of their companyonly. It was detained by the Chinese authorities and has alleged that they had offered money tothe doctors or that they have created the corrupt environment in China. It is the third largestcompany in terms of creating the revenues. So in order to increase their revenues and to expandtheir market share the company decided to take this step. The Company can be solely blamed forthis scandal that had happened. They also received the kickbacks from local agency that deals intraveling to arrange the conference. The authorities have also found that the bribery was coreactivity of the company. In order to boost the share prices and sale so the company was forced tochoose 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 consideredsomething wrong around the globe.Foreign Companies are targeted easily in ChinaLocal companies that are operating in China or which belong basically to China have the deeperknowledge of rules and laws that are incorporating in China. So, local companies are also awareabout the basic norms which are required to be followed. But it was founded from past recordsthat 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 alsogained 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 corruptioncases have increased a lot. That’s why local companies are not targeted easily as compared toforeign countries.GSK Response towards AllegationThe GSK belief was that there response towards allegation was very professional and even theyare cooperating really well for this. The GSK says that it is allegation on their company. TheChina has raised a question over their behavior. The Chinese authorities quoted that this type ofthe behavior is considered to be fraudulent. So the GSK executives are deeply hurt by thebehavior 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 theChina Authorities (Arshad et al . ,2016). They say this type of behavior is clear instance of
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