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You can find the current article at its original source at http://www.guardian.co.uk/business/blog/2013/jul/24/glaxosmithkline-china-andrew-witty-corruption

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GlaxoSmithKline should have seen the warning signs in China GlaxoSmithKline should have seen the warning signs in China
(2 months later)
Was GlaxoSmithKline (GSK) asleep at the wheel in China? Or were the suspected acts of fraud and bribery part of a sophisticated internal scam that no drugs company in China, however good its intentions, could reasonably have been expected to spot?Was GlaxoSmithKline (GSK) asleep at the wheel in China? Or were the suspected acts of fraud and bribery part of a sophisticated internal scam that no drugs company in China, however good its intentions, could reasonably have been expected to spot?
Chief executive Sir Andrew Witty had no clear answer: his holding position was that it "looks as if individuals have worked outside our systems" – which is not the same as saying controls and audits were robustly designed for a high-risk market like China.Chief executive Sir Andrew Witty had no clear answer: his holding position was that it "looks as if individuals have worked outside our systems" – which is not the same as saying controls and audits were robustly designed for a high-risk market like China.
For now, the wishy-washy nature of Witty's account is understandable. Investigations by both the company and the Chinese authorities are continuing, and it's usually best to wait for the full facts before making big statements.For now, the wishy-washy nature of Witty's account is understandable. Investigations by both the company and the Chinese authorities are continuing, and it's usually best to wait for the full facts before making big statements.
But Witty will have to do much better soon. Expressions of "deep disappointment" are fine, as far as they go. But shareholders – and governments elsewhere in the world – need to have confidence that GSK's management knows what the staff are up to. China, let's face it, is a place where the warning signals for multinationals about corruption should be written in neon. And GSK, after its $3bn (£2bn) penalty in the US last year for mis-selling drugs, had reason to take extra care.But Witty will have to do much better soon. Expressions of "deep disappointment" are fine, as far as they go. But shareholders – and governments elsewhere in the world – need to have confidence that GSK's management knows what the staff are up to. China, let's face it, is a place where the warning signals for multinationals about corruption should be written in neon. And GSK, after its $3bn (£2bn) penalty in the US last year for mis-selling drugs, had reason to take extra care.
In the meantime, Witty could do himself and his company a favour by making a clear statement about his own bonus this year. He has a reputation for being a "thoughtful" chief executive on pay matters, but his answer to whether he will accept a bonus this year was a cop-out. He said that it was a matter for the board, and that it was too early to say.In the meantime, Witty could do himself and his company a favour by making a clear statement about his own bonus this year. He has a reputation for being a "thoughtful" chief executive on pay matters, but his answer to whether he will accept a bonus this year was a cop-out. He said that it was a matter for the board, and that it was too early to say.
A thoughtful answer would have been: "Leadership involves setting an example, and if there is any evidence of corporate failure I will naturally decline any award."A thoughtful answer would have been: "Leadership involves setting an example, and if there is any evidence of corporate failure I will naturally decline any award."
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