The Fraud Scandal Of Glaxosmithkline

There are several reasons as to why these practices despite being globally unacceptable continue to grow and particularly in China. Firstly, China is seen to be in a battle with the West, so this could be used as a preparation for these battles. Secondly, china does this to steal or copy the latest in the fields of research, innovations and technology areas that are very costly, it does this in order to achieve parity with the west. Thirdly, China is involved in cyber-crimes to acquire

Many countries such as Canada, India, and the UK have price controls. The governments of these countries impose regulations that control the prices of new drugs as well as generics without compromising safety but at the same time they do not burden pharmaceutical companies

"In the past two decades or so, health care has been commercialized as never before, and professionalism in medicine seems to be giving way to entrepreneurialism," commented Arnold S. Relman, professor of medicine and social medicine at Harvard Medical School (Wekesser 66). This statement may have a great deal of bearing on reality. The tangled knot of insurers, physicians, drug companies, and hospitals that we call our health system are not as unselfish and focused on the patients' needs as people would like to think. Pharmaceutical companies are particularly ruthless, many of them spending millions of dollars per year to convince doctors to prescribe their drugs and to convince consumers that their specific brand of drug is needed in

Corporations and business organizations have to face lawsuits due to breach of different laws i.e., consumers laws, copyright laws, compensation laws, security laws, antitrust, employment or environmental laws. For violating any of these laws companies have to pay fines and even go bankrupt. Current paper is a report on one such lawsuit that caused GlaxoSmithKline loss of billions of dollars. The author selected "Avandia Lawsuit" to focus in this report. Avandia is a drug used to treat type 2 diabetes and was prepared by GlaxoSmithKline which was approved by U.S Government in 1998 and became best selling drug. Company generated profit through its sale but soon complains arose due to increasing incidences of heart disease and stroke as side effect of the drug.

On september 2nd 2011, a Twenty-four year old man from cincinnati named Kyle Willis´ fell victim to the corruption of the pharmaceutical industry(Gann, Carrie). Willis had a severe toothache on his wisdom tooth that resulted in its extraction. After the surgery, Willis´s face started to swell and was sent to the emergency room. He was prescribed antibiotic medications and also painkillers in order to follow standard recovery procedure. Kyle Willis’ could not afford both drugs so he just purchased the pain killers because of the swellings unbearable pain. The infection continued to spread into his brain which lead to severe brain swelling and eventually Kyle Willis’ death. Kyle Willis’ died because he could not afford the medication that would have saved his life. There are many other people that can 't afford the drugs they need, which results them losing their lives. According to harvard studies, over 45,000 people annually die due to lack of health care coverage(Harvard Gazette). According to their studies, those who are privately insured have 40% chance less of dying than those who have insufficient funds(Harvard Gazette). The monopoly and corruption of the pharmaceutical industry is un-american and inhumane because it causes the middle class to not receive the help they need to recover.

companies and doctors to make a lot of money.” (Tab 5). Although pharmaceutical companies do

The Pharmaceutical industry has been in the spotlight for decades due to the fact that they have a reputation for being unethical in its marketing strategies. In The Washington Post Shannon Brownlee (2008) states, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow.” This honorable statement is completely lost in today’s world of pharmaceutical marketing tactics. These tactics are often deceptive and biased. Big Pharma consistently forgets their moral purpose and focuses primarily on the almighty dollar. Big Pharma is working on restoring their reputation by reforming their ethical code of conduct.

On the other hand, although such drug companies may be acting unethically, they are also acting in a legal matter. In other words, they are

Over the past couple of decades, a sudden change has started to take over the way business is done. The time when no rules applied, and anyone could do what they pleased at the cost of others or the environment is rapidly ending. Instead, companies today have become aware that it is essential for them to employ ethics and morality in their actions, if not they will be heavily scrutinized and rejected by the public. This way of thinking also applies to the pharmaceutical industry, which over the past century has been rapidly expanding. Do to the fact that this industry can determine the health and lives of millions of people, it is imperative that this industry follow an ethical and moral path.

China government give opportunity for invest in the country such as give low corporate tax, directly start the business without any join venture with local partner, government will provide loan facility. If the firm breaks the law and regulations, government can immediately close down the firm.

“GSK” According to its price differential strategy or price discrimination which is a sort of Monopolistic market power was separated from its customers, this power came from where? GSK had sufficient control over prescriptions drugs to determine significantly the terms on which other individuals shall have access to it and this power make GSK able to alter market price of prescription drugs in America.

The depth of China’s involvement in intellectual property theft is far greater than I would have ever expected. Prior to taking the business law course, I never thought about what intellectual property theft was or the impacts that it has. The report of the Commission on the Theft of American Intellectual Property, states that “China is the world’s largest source of Intellectual Property theft” (pg 10 & 11) costing the American economy hundreds of billions of dollars per year, along with millions of jobs.

This site contains information on China's patent and copyright law. It goes on to discuss some ethical issues about China's lack of law enforcement on intellectual property protection.

Despite the high levels of corruption, investors do not seem to be deterred from doing business in China. Some believe that corruption acts as an effective “grease” to speed up the many layers of bureaucratic inefficiencies for starting of businesses in China (Meon, Weill, 2008). Furthermore, the policy of regional competition in China has caused the competitive lowering of bribes in order to attract businessmen with a lower “unavoidable cost” of doing business in the region. (Li, Peng 2001). Another reason would be the high predictability of corrupt practices in China (Campos, Lien, Pradhan, 2001), to the extent where investors factor “bribes and gifts” as a portion of their budget. Hence it does not appear as a deterrent to businesses when they enter the market (Dickson, 2008). Corruption due to “Guanxi” is also explained to enhance efficiency, because “Guanxi” contributes to high levels of public trust that encourages business ventures due to the availability of valuable information that reduces uncertainty (Li, Wu

Political & Legal environment: The political system of a country is an important part of a companies marco-environment. ‘Who governs the country?’ ‘What does the government follow?’ and ‘What legal regulations follow from these policies?’. The most important factors a company is subject to are policy uncertainty, macro instability, and tax rates. Considering China is a country in transition all of the above factors are subject to change, to a degree substantially larger than it is in stable developed countries. We have recently seen changes happening in China on all of the above factors. One example is the new regulations regarding copying, which turned out in favor of Starbucks. However, what will happen in the (near) future is hard to tell. Whatever happens though, Starbucks will be subject to the consequences, whether positive or negative.