Description
Description
Quelch, J.A. & Rodriquez, M.L. (2013). GlaxoSmithKline in China (A) HBS No. 9-514-049. Boston, MA: Harvard Business School Publishing. Purchase the case directly from Harvard Business Press as part of a case pack for this course. See "Individual Assignments Overview" above for a link.
Explanation & Answer
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Running head: GLAXOSMITHKNINE ANALYSIS IN CHINA
GlaxoSmithKline Analysis in China
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Institutional Affiliation
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GLAXOSMITHKLINE ANALYSIS IN CHINA
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GlaxoSmithKline (GSK) Analysis in China
The major roots of ethical violations in the scandal
The failure of GSK’s corporate governance policies was the main responsible potential
cause of the company’s bribery scandal. GSK China claimed that fraudulent behavior and ethical
misconduct was a violation of the company’s governance standards amidst the ongoing
investigations on the company’s practices. This demonstrated that GSK had governance systems
and procedures in place that could have addressed bribery and corruption within the company but
they failed (Schipani, Lui & Xu, 2016). Besides, GSK President International affirmed the
existence of corporate values and policies that are against unethical behavior when he met with
officials from the Chinese Ministry of Public Security. He shielded the global GSK group from
being associated with the bribery scandal that was perpetrated by GSK China executives who
were aware of the firm’s governance policies.
Since five top officials of GSK China were found guilty of breaching the anti-corruption
laws, it proves that there was a failure in how corporate governance ...