How Should Glaxosmithkline Enact Csr with Regards to Product Testing in Developing Countries?

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MGF5030 – Corporate Social Responsibility

ANZAM Report

How should GlaxoSmithKline enact CSR with regards to product testing in developing countries?

Ms Melissa Rauff

Rita Gabrial (24156728)

Monash University, Melbourne, Australia

Email:

Rayees Ahmed S.R (27154998)

Monash University, Melbourne, Australia

Email:

Li Yongkun (26051788)

Monash University, Melbourne, Australia

Email:

Mengjie Ren (26241196

Monash University, Melbourne, Australia

Email:

)

ABSTRACT

The treatment of people in less economically developed countries by major corporations has been widely debated and criticized internationally. One major criticism is the way healthcare is addressed and offered to people that need it most but do not have a means of getting it. The ways in which pharmaceutical giant, GlaxoSmithKline (GSK) should enact CSR in regards to testing drugs in developing countries will be examined in this report. The way that GSK targets poorer people to trial medicines, have more power than many governments, and will maximize profits at any costs will be discussed through relevant literature. The current issue of GSK trialing their drugs on people in developing countries will be looked at and discussed using secondary sources. This paper will recommend that CSR needs to be enacted by GSK investing in ethical-based procedures in their corporation, part of these procedures will include educating employees on the ethical dimension of working with people around the world. This paper will also recommend that GSK enforce very strict punishments to employees that take action that does not follow the GSK ethical procedures and breaks the law of developing countries.

Keywords: Developing countries, testing, trialing, ethical-based procedures, educating employees

Table of Contents

ABSTRACT        2

1.0 INTRODUCTION        5

2.0 LITERATURE REVIEW        6

2.1 Key Theories and Concepts        6

2.1.1 Stewardship Theory        6

2.1.2 Corporate-governance processes that are not controlled by weaker governments        7

2.1.3 Profit maximization at any cost        7

2.2 Arguments and Debates to consider        7

2.2.1 Vulnerable people        8

2.2.2 Family Consent to trial medicines        8

2.3 Current Procedures        8

2.3.1 GlaxoSmithKline’s current CSR practices        8

2.4 Conclusion        9

3.0 THE CASE        9

4.0 THE KEY ISSUES        10

4.1 Issues 1: Illiterate parents lacked an ability to make an informed decision regarding their involvement in the trials        10

4.2 Issues 2: GSK was able to unfairly influence a vulnerable Argentinian government        10

4.3 Issues 3: GSK have maximized profit with little regard to the welfare of trial participants        10

5.0 METHODOLOGY        11

6.0 RECOMMENDATIONS AND DISCUSSION        11

6.1 Ethical based procedures that adhere with human rights:        11

6.2 Being a billion dollar company they should exert social responsibility and prevent misuse of illiteracy in developing countries:        12

6.3 Pay compensation and to make sure it does not happen again:        13

7.0 CONCLUSION        13

8.0 LIMITATIONS OF THE STUDY        14

9.0 REFERENCES        15

1.0 INTRODUCTION

Corporate Social Responsibility (CSR) does not have a clear definition however; it can be understood to be a corporation’s or company’s moral responsibility to protect and better society in the present time and for the future by introducing social initiatives that have positive outcomes for the stakeholders that are involved (Mihalache, 2013). It can be understood from tis definition that all corporations have the responsibility to be more socially responsible and can be socially positive in their community. This leads us to the pharmaceutical industry whose purpose is to create and distribute drugs across the world. While this may seem to be socially responsible in itself, as consumers have a chance of receiving better health, there is another darker side to the pharmaceutical industry in regards to trialing new drugs and the procedures they should comply. This research paper will look at analyzing how GlaxoSmithKline (GSK) can enact CSR in regards to product testing in developing countries. To do this, secondary research will be collected and examined in order to discuss the particular case of GSK trialing drugs in Argentina that eventually lead to the death of 14 babies. Initially, the authors of this paper will create literature review in order to discuss current existing CSR approaches that are relevant to the topic as well as related theories, evidence and concepts that will help create this report. The literature review will allow the authors of this report to create recommendation to GSK in regards to how they can implement CSR for the issue that is discussed in this report. The purpose of this paper is to give GSK clear recommendations in regards to how CSR should be enacted to the specific issues that will be listed in this report.