Glaxo Company and Ethical Issues


                     GlaxoSmithKline Experiences High Costs of Product Quality Issues

            There is no medicine like hope, no incentive so great, and no tonic so powerful as expectation of something better tomorrow.” (Swett Marden).

The thousands of millions of dollars has GlaxoSmithKline possess as current assets might benefit many stakeholders around the world, but certainly cannot avoid demands and accusations about unethical practices and misconduct regarded to social responsibility. In recent years, concerns about ethical issues, linked to negligence and lack of application of effective control quality of medicine made by the firm, has been regarded to poor and unsatisfactory control’s system.

The multinational laboratory collects lawsuits worldwide by adulterating drugs, employing kids to test drugs with irregular authorizations, and causing diseases with their clinical trials. GlaxoSmithKline lab was fined for committing serious irregularities in clinical trials using kids to produce a vaccine. These deliberated actions are similar as an extensive criminal record. Furthermore, its criminal history includes charges and convictions in Puerto Rico, United States, Italy, Germany, Hungary, England, New Zealand, and Mexico. And the list goes on. Sanctions, however, are economic tickle to a Corporate Goliath which was born in 2000 from the merger between Glaxo Wellcome firms, an early powerful company in the chemical industry, and SmithKline Beecham, a powerful company around the world in the field of genetics (Reuters July 24 2013.Web).

A negative reputation is very expensive GSK in monetary sense, but the real impact has been much more strong and devastating to final consumers.  Patients or ill persons believe in modern medicine, they expect a healing outcome when they are receiving a medicine. In some cases is the difference between life and death. Public opinion about this subject as sensitive as controversial is always in favor to unaware and uneducated victims. Pharmaceutical Laboratories fail absolutely when they are risking life and health of people who trust in medicines made by these companies. This effect has affected the reputation of GSK and the confidence in their products.

More than one decade ago, two of medicines from GSK, Paxil and Avandia, had their research trials 'fixed' to either falsify results or "overlook" the results. The antidepressant Paxil, was released with the main purpose to relief the common symptoms of depression. However, it was found to generate hazardous side effects, such as "birth defects" and "suicidal thoughts" (Ferrel 439). While GSK was selling Paxil to children, it was actually discovered that children are especially vulnerable to its side effects. A psychiatrist (Palazzo, Maria Carmen) who was hired by GSK admitted that she had committed a "research fraud" while the product was in its testing phase and lied about "psychiatric diagnoses" (page 439). On the other hand, Avandia, a diabetes drug was charged by the serious "that increases the risk of heart attack" (Ferrel 439). Supposedly GSK had known about this risk, but allegedly decided not reveal it to the public.

A third point to discuss in this corporate ethical conflict involved to the standards of control and sanitary procedures at a plant located in Cidra, Puerto Rico. For a time, GlaxoSmithKline distributed for sale an amount not specified with accuracy of contaminated drugs, which were presented in the form of "free of bacteria", but which in reality were actually produced with severe lack of hygiene and sanitary treatment. Many of  the staff’s members knew that "factory workers were using “water contaminated with the bacteria "and "raw materials" corrupted, and they were also allowing employees" have their bare hands and arms  without protection of gloves or sterile devices within the sterile control tanks "(Ferrel 441)." On the other hand, due to  employees "not made cleaning periodically machines after the routine processes of production, drugs that were in production queue  mingle with the residue of previous manufacturing process" (page 441). Moreover, the power of drugs did not match with high dose of efficiency, because a huge batch of drugs were packaged and subsequently delivered in bottles that had labels of less active power or dosage.

After the many problems faced by the company concerning its corporate responsibility, GSK should reformulate its global strategy. The cornerstone is to restate the mission and the vision statements that GlaxoSmithKline exposes on its corporate website. It is inconsistent since in relation to social responsibility strategy says nothing that will satisfy the vast majority of stakeholders around the world. Not only is needed to comply with the rules and regulations in advanced countries, but also in those countries with less economic resources or household income from its population. Such negative misconduct behavior carried out in developing countries, only to present a negative image and seriously affect corporate’s reputation, as well as settle a bad precedent for other international branches or may be an example of bad behavior to imitate. All this shows us that GSK probably requires modifying its mission statement because due to its many cases of negligence, misconduct, and unethical behavior, people will question the credibility of its message.

GSK’s Mission Statement:

"Our mission is to improve the quality of life of people, doing everything possible so that people have more vitality, feel better and live longer."

Also, GSK need urgently modify the content of its Our Spirit Statement:

We take our commitment to the enthusiasm of entrepreneurs and the momentum derived from the ongoing search for innovation. We appreciate the performance achieved with integrity. We achieve success as leaders around the world with each and every one of our employees, who give their collaboration so passionate and consistent."

 Undoubtedly, if the conduct of this giant of the pharmaceutical industry does not take appropriate actions to regain the confidence of the consumers, specifically patients who take its medications, the likely fate for GSK will be the extinction. Well written intentions should have life and interaction with real outcomes, not just written in stone.  Trust, confidence, ethical behavior, and reputation are much more serious, because a medicine means expectation of health and relief for people.


Today, in order to change the bad image after many scandals of unethical behavior, the pharmaceutical firm will stop paying doctors in China,  to promote its products through speaking engagements.

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