The Fraud Scandal Of Glaxosmithkline

1596 Words Nov 15th, 2015 7 Pages
GSK Analysis This paper covers the information given from the bribery scandal that GSK paid off the Chinese government and doctors in the country. This analysis will take a look at what happened, what went wrong and the conclusion for the company looking in the future to do business in China. The company’s response is a key issue in how they came back from such a detrimental hit in a growing market. There are a number of factors that will be interpreted and discussed for the future dealings in China.
Questions Arise The first question to arise would be what kind of laws does China already have in place? Also, one has to consider the way the laws are enforced if any standard has been set. There are two standard laws that handle this type of incidence in the country. The first one is the Anti-Unfair competition law AUCL (Rogers, 2014). The punishment that is set forth will be determined by the severity of the crime.
This law is in direct correlation with anti-corruption and bribery in the country of China. It goes into detail with Article 8 of the AUCL which forbids any industry or commerce representatives from "giving bribes in the form of property or other means for the purpose of selling and purchasing products and services (Rogers, 2014)”. Payments or stealthy charges that are improperly acknowledged in the recordkeeping or ledgers are also prohibited. In the case of GlaxoSmithKline, they even tried to bribe the officials that are the ones who enforce this…

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