GSK in China
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INTRODUCTION TO THE CASE: Joseph Nathan started an import-export business in 1873, which had the subsidiary, Glaxo Laboratories Limited. But in 1947 parent company dissolved and Glaxo became a public company .In subsequent years the company acquired others and in the year 2000, it merged with rival UK pharmaceutical firm, SmithKline Beecham to become GlaxoSmithKline. At the time of creation, GSK’s global sales are 22.5billion dollars and employed 100000 across the world. GSK started entering into different ventures with local health care brands in India, South Africa and also formed wholly owned subsidiary like GSK China. Now coming to GSK’S ethics policy, it had ZERO tolerance towards corrupt practices. As it’s located in UK, the company has to abide by the laws of UK (Bribery Act of 2010) and also US Law of FCPA. In the year of 2013, Headquarters of GSK China, Shanghai was raided by Chinese investigators and later on China’s Ministry of Public Security claimed that GSK China had paid over 450million dollars in bribe to Chinese health care practitioners, hospital administrators and government officials in order to increase sales of GSK Pharmaceuticals and announced that four GSK executives were under investigation. As of July 2013, the Chinese government had not filed formal charges against the company. On July 15, GSK issued a statement regarding the allegations and said they are ready to change as this breached their ethical policies. Even then the sales dropped by more than 30% in the month of September. By the end of this month, no legal action had yet been taken against GSK by Chinese government. ACTORS:
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INTRODUCTION TO THE CASE:Joseph Nathan started an import-export business in 1873, which had the subsidiary, Glaxo Laboratories Limited. ut in 1!"7 parent company dissol#ed and Glaxo became a public company .$n subse%uent years the company ac%uired others and in the year &''', it mer(ed with ri#al )* pharmaceutical +rm, ,mith*line eecham to become Glaxo,mith*line. -t the time o. creation, G,*/s (lobal sales are &&.0billion dollars and employed 1''''' across the world. G,* started enterin( into di1erent #entures with local health care brands in $ndia, ,outh -.rica and also .ormed wholly owned subsidiary li2e G,* 3hina. Now comin( to G,*/, ethics policy, it had 4567 tolerance towards corrupt practices. -s it/s located in )*, the company has to abide by the laws o. )* 8ribery -ct o. &'1'9 and also ), Law o. :3;-. $n the year o. &'13,
