By: James Zimmerman and Cheryl Palmeri
The recent enforcement of Chinese anti-bribery laws against British pharmaceutical company GlaxoSmithKline (GSK) highlights the compliance challenges faced by foreign companies operating in China.
GSK’s Chinese subsidiary is accused of funneling almost $500 million in bribes to doctors and hospitals in China exchange for purchasing or prescribing the company’s products. The alleged bribes included sexual favors, cash, and invitations to join high-end academic conferences. GSK employees also allegedly accepted kickbacks and improper commission fees, issued fake invoices, and wrote special bills related to the value-added tax.
Continue Reading Lessons Learned from the GlaxoSmithKline Bribery Investigation