The Commitment To Business Ethics And The Foundation Is Built Through Organizational Culture, With Ethical Values Reflected

In The Workplace.

MANIRATNA DEORI 12020841081 ADITI MEHROTRA - 12020841002

What is Corporate Ethics

Ethics takes on different meanings in different cultures, making it challenging to truly define business ethics in international markets. Organizational leaders have a key role in establishing corporate values and modelling ethical behaviour for their workforce, organization and community. However, a number of actions that are almost universally considered unethical

Unacceptable in Every Culture

HR Ethics - unethical workplace behavior Accounting Ethics - flat-out misrepresenting income or expense figures on financial statements Community Impacts affecting external stake holders such as noise, air & water pollution Theft & Fraud - gross exaggerations of clients financial positions, embezzlement

Company examples

 Oil spill in the offshore about 230 miles from the coast of northeast Rio de Janeiro. 155,000 gallons of crude are thought to have been released in the November 2011 spill. Chevron pays Brazil oil spill fines totaling $17.3 million.

$8 billion penalty for Nigeria oil spill

 Paid bribes to doctors in three European countries to prescribe J&J medicines. kickbacks to Iraq to illegally obtain business under former leader Saddam Hussein. Settlement includes $48.6 million to the SEC in disgorgement and prejudgment interest, a $21.4 million criminal penalty, and 4.8 million ($7.8 million) to the U.K. Serious Fraud Office.

 Accused of committing $11 billion fraud by making adjustments to the companys financial statements to give investors a misleading picture of the companys performance. $6.13 billion suffered loses. to investors who

$2.58 billion by Citigroup Inc., $2 billion by JP Morgan Chase & Co.

DISNEYLAND HONG KONG

CREATING FANTASY

MERK & CO.

Merk & Co.

Asked to pay in damages resulting from their selling drug Vioxx. Vioxx was in September 2004 due to side effects of: Heart attacks Other cardiovascular diseases

$950 million

Merck agreed to pay $321.6 million in criminal $628.4 million in civil Merck sold the drug for uses yet to be approaved by the FDA. They marketed Vioxx as a remedy for rheumatoid arthritis without FDAs approaval. They in 2007 compensated Merck also agreed in 2007 Vioxx users who suffered from heart attacks. Amounting to $4.85 billion.

In four years (2007-2010), they settled 3,500 death claims related to Vioxx. Average payment for heart attack cases was $186,800, Average for death cases $374,100. In 2010, the report identified 58,022 Vioxx claims. In a 2004 report revealed that around 160,000 heart attacks and strokes were linked to Vioxx. Out of which 30 to 40 % people died.

GLAXOSMITHKLINE

Today, I am pleased to announce that the Justice Department and our law enforcement partners have reached an historic $3 billion resolution with the pharmaceutical manufacturer GlaxoSmithKline, LLC, to resolve multiple investigations into the companys sales, marketing, and pricing practices. This action constitutes the largest health care fraud settlement in United States history. ~ Deputy Attorney General James M. Cole (emphasis mine)

GlaxoSmithKline (GSK) got in trouble for practices surrounding its own psychiatric drugsand for a diabetes drug to boot. GSK was found guilty of illegally marketing antidepressants Paxil and Wellbutrin and downplaying safety risks of diabetes drug Avandia.

Cases

Criminal Civil

CRIMINAL

Paxil

An anti depressant drug. Never received approval for administration on children and adolescents. Even then from April 1998 to August 2003, GSK promoted Paxil for treating depression in patients under age 18.

Steps taken for illegal promotion

Doctors incentivised to administer the drug to patients under 18.

Dinner Lunch

Spa

programmes Lavish vacations Manipulated medical journal article Bribery

Side effects

Birth Defects Extreme Withdrawal Symptoms Increase in Suicidal tendency by

3 times

OUTCOME

200 suicide case Also homicide cases

Wellbutrin

In 2000s, the FDA had approved Wellbutrin only for use in Major Depressive Disorder. Yet it was allegedly promoted for:
1.

2.
3. 4.

Weight loss, Sexual dysfunction Substance addictions Attention Deficit Hyperactivity Disorder.

GSK pleaded guilty to misbranding Wellbutrin, For Paxil and Wellbutrin offenses, GSK asked to pay a criminal fine of

$757,387,200

Avandia

From 2001 to 2007 GSK manipulated the data presented to FDA for approaval. The reports failed to mention results of two studeies in relation to cardiovascular safety. Forgot to mention the increased risk of Congestive heart faliure Heart Attack

There were serious ommision in the report being presented to FDA for approal of the drug. Similar to what was done in PAXIL. They pleaded guilty and were asked to pay a criminal fine for its unlawful conduct of:

$242,612,800

OUT COME

5500 heart attacks resulting in death. 10700 reported cases of its severe side effects.

CIVIL

Off-label promotion and kickbacks.

Promoting its Asthma drug Advair for mild asthma patients Mood-stabilizing drug Lamictal for pain management Zofran, approved for post-operative nausea, for treatment of morning sickness in pregnant women.

GSK paid to healthcare providers for encouragement to prescribe these drugsand drugs Latronex, Flovent and Valtrex.

$1.043 billion
Cost for these

Misleading facts about Avandias safety profile

$657 million total of which

$508 million State share $149 million

Federal share is

False drug price reporting

GSKs underpaying rebates owed under the Medicaid Drug Rebate Program. GSK will pay $300 million in all. $160,972,069 to the federal government, $118,792,931 to the states $20,235,000 to certain Public Health Service

GlaxoSmithKline

Mission Deliver more products of value Grow a diversified global business Core Values: Transparency Respect for people Patient-focus Integrity.

Values of Merck & Co.

Improving Life Ethics and Integrity Innovation Access to Heath Diversity and teamwork