I’m very disheartened to read the problems for GlaxoSmithKline are continuing for not only its company, but also for those parties hired to try and right its corporate ship. This article from today’s New York Times indicates the contractors GSK retained to find the employee accused of trying to “smear the drugmaker’s top executive in China” (NY Times) were just sent to prison. I’m not in a position to comment on whether the pending accusations against the GSK China’s top lieutenant Mark Reilly are true, or even those alleged against the person who leaked the video. But, this case is a good reminder of some key tenets when doing business outside of one’s home country.
a) Ensure local business norms are consistent, legally, ethically or morally, with those of your country of citizenship. Just because a business practice is widespread locally doesn’t mean it’s either legal or even recommended in that country, let alone permitted on the turf of your company’s headquarters.
b) Hire competent, local counsel to clearly identify the laws for your local operations as well as for your home office. The stakes are much higher for international firms, and pleading “ignorance of the law,” especially for publicly traded corporations, won’t accomplish much.
c) Ensure you feel comfortable with each of your actions being reported in the following day’s newspaper or on a Blog. None of us is perfect 100% of the time and they grey zone is just that– it’s neither black nor white. There will always be multiple business practices and / or key decisions which are left open to interpretation and neither cut nor dry. But, think before you act and ponder how defensible today’s actions might be tomorrow.
d) When in doubt, seek the opinion of your colleagues, especially those in your regulatory / compliance departments. They would much rather receive your inquiries proactively, rather than reactively.
I had an experience while living in Japan where someone needed some extra bodies to attend an event, so as to demonstrate to the client, and to the journalists covering it, that it was trending in popularity. When I demurred, they then offered me a few dollars as an appearance fee, ensuring it was “the Japanese way.” It just didn’t smell right so I passed, only to find out a few months later the entire operation was one huge fraud. Don’t succumb to peer pressure, a few extra dollars or thinking you’ll get away with something “just this once.” It’s never worth it and trust your gut instinct.
