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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