Topic > GlaxoSmithKline and the China Corruption Scandal - 2652

Multinational corporations (MNCs) invest and operate in many foreign markets around the world. With this globalization, it is becoming increasingly important for managers at all levels to become experts in cross-cultural management. This article will explore the challenges faced by a British expatriate managing the China business unit for a British multinational pharmaceutical company. An assessment of national cultural differences will be explored using Hofstede's research on differences in work-related values. The data will be analyzed to determine whether these differences have impacted the organization's ability to successfully manage the cross-cultural context. GlaxoSmithKline, Plc (GSK) is the largest British pharmaceutical company with a presence in more than 100 countries around the world. In July 2013, the Economic Crime Investigation Unit of China's Ministry of Public Security in Beijing accused GSK of bribing government officials and doctors to prescribe higher-cost brand-name drugs to treat their patients. GSK reportedly offered these doctors and officials (Sukhija) approximately $489 million in illegitimate travel packages, meeting expenses, entertainment and cash over a six-year period. Often the incentives were channeled through travel agencies, which sent doctors on international trips and provided them with luxuries while other times the payments were simply made in cash. GSK released a statement explaining that the allegations made against the company's senior executives are unfounded. 'shameful'. “We are deeply concerned and disappointed by these serious allegations of fraudulent behavior and ethical misconduct by certain individuals at the company and third-party agencies. Such behavior would constitute a clear violation of GSK's rights'...... middle of paper ......013. El-emergente.com. 20 May 2014. Okoro, Efraim. "International organizations and operations: an analysis of the effectiveness of intercultural communication and management". management (2013): 1-13. Document.Philippidis, Alex. “China's challenges go beyond the GSK scandal.” 01 August 2013. Genengnews.com. 19 May 2014. Reilly, Marco - GlaxoSmithKline." December 10, 2009. gsk.com. PDF file. May 19, 2014. Shobert, Benjamin. "Three Ways to Understand the China GSK Scandal." September 04, 2013. Forbes.com. Network. May 18, 2014. Sukhija , Sheetal . “GSK China Scandal: What Were the Highlights?” July 31, 2013. BioSpectrum Asia Website. Network. 2014 May 16.Voreacos, David. “China's Culture of Corruption Poses Risks for Multinationals.” November 21, 2013. Bloomberg.com. Network. May 19 2014.