GlaxoSmithKline Fined $492M By China In Bribery Scandal – Coursework Example
Article Summary: China Fines GlaxoSmithKline $492M in Bribery Scandal White-collar crimes are not new occurrences in the corporate setting. GlaxoSmithKline’s bribery scandal in China is one of the most recent cases of that nature. This scandal and the subsequent fine imposed on GlaxoSmithKline show the extent to which business enterprises go to make profits. According to the article, GlaxoSmithKline’s employees engaged in bribery acts where they paid doctors and hospitals to use the company’s products. The idea was to promote sales and increase both revenue and profit for the company. However, the process proved to be corrupt in front of the Chinese court.
A critical note made in the article is that the Chinese healthcare system has numerous loopholes and flaws, aspects that provide an avenue for corruption and illegal practices by healthcare practitioners. In light of the article, patients paid to have their names moved up the waiting list, doctors received money for prescribing GlaxoSmithKline’s drugs, and hospitals received financial benefits when they used GlaxoSmithKline’s products. All these illegal practices resulted in a $492M fine to GlaxoSmithKline and prison terms for the individuals involved.
Finally yet importantly, the $492M fine is the highest ever in China for similar cases. Notably, this is not a unique situation. At the time the company was fined, there were other individuals and/or firms under investigation. This shows that corruption and bribery is a critical challenge not only in the Chinese healthcare system, but also in the economy at large. It is evident from the article that corruption and bribery is a recurrent issue in China.