Business Ethics
GlaxoSmithKline
GlaxoSmithKline (GSK) is a global leader in the pharmaceutical industry. Their focus is Corporate Social Responsibility. However, their actions and litigations against them beg to differ. Since they merged together with one another, they seem to be more concerned about the revenue then the impact their product has on society.
Several ethical lapses have affected the quality of GSK. For example; the drug Paxil, it is prescribe to patients with depression or anxiety. The side effects include; addictive behavior, birth defects, withdrawal symptoms, and suicidal tendencies. The side effects in children are worse. GSK had a class-action lawsuit filed against them. They were accused of marketing the drug Paxil for young children and hiding the fact that this drug was unsafe for children. Psychiatrist, Maria Carmen Palazzo was accused and sentenced to 13 month in prison for committing fraud, falsifying records, diagnosing patients under age and trying to cover up the crime. Another class-action suit was filed against GSK, this time is was for a drug called Avandia. This drug was used to treat patients with diabetes; however, studies have shown that the patients who consumed Avandia suffered from heart attacks. The lawsuit claims that the company knew about the risk but did not disclose of them.
The cause of GSK leadership to fail in preventing ethical issues related to integrity failures is the inability to hold true to their values of corporate social responsibility. Due to their allegations and class-action lawsuits against them, it appears that the leadership of GSK continues to act in unethical acts/behaviors. The company is facing allegations of “off-label” drug promotion, which could be very detrimental to the consumer. An example of this activity is a drug used for antidepressant prescribed to a patient for weight loss. It could potentially lead the consumer to misuse of the medication. As a way to promote their drug
GlaxoSmithKline (GSK) is a global leader in the pharmaceutical industry. Their focus is Corporate Social Responsibility. However, their actions and litigations against them beg to differ. Since they merged together with one another, they seem to be more concerned about the revenue then the impact their product has on society.
Several ethical lapses have affected the quality of GSK. For example; the drug Paxil, it is prescribe to patients with depression or anxiety. The side effects include; addictive behavior, birth defects, withdrawal symptoms, and suicidal tendencies. The side effects in children are worse. GSK had a class-action lawsuit filed against them. They were accused of marketing the drug Paxil for young children and hiding the fact that this drug was unsafe for children. Psychiatrist, Maria Carmen Palazzo was accused and sentenced to 13 month in prison for committing fraud, falsifying records, diagnosing patients under age and trying to cover up the crime. Another class-action suit was filed against GSK, this time is was for a drug called Avandia. This drug was used to treat patients with diabetes; however, studies have shown that the patients who consumed Avandia suffered from heart attacks. The lawsuit claims that the company knew about the risk but did not disclose of them.
The cause of GSK leadership to fail in preventing ethical issues related to integrity failures is the inability to hold true to their values of corporate social responsibility. Due to their allegations and class-action lawsuits against them, it appears that the leadership of GSK continues to act in unethical acts/behaviors. The company is facing allegations of “off-label” drug promotion, which could be very detrimental to the consumer. An example of this activity is a drug used for antidepressant prescribed to a patient for weight loss. It could potentially lead the consumer to misuse of the medication. As a way to promote their drug
References: Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2012). Business ethics: Ethical decision making and cases. (9th ed.). Mason, OH: South-Western: Cengage Learning.