Contemporary Issues in Management-Unethical Behavior Essay
GlaxoSmithKline refers to as a multinational of British pharmaceutical, vaccines, biology and customer healthcare firm whose headquarters are in the Brent ford in London. In the year 2014, the company was announced to be the sixth world’s largest pharmaceutical firm. It was formed in the year 2000. The formation was done by the merger of SmithKline and Glaxo Wellcome. Several medicines were originally developed or manufactured at the company, and the moments are currently being sold as generics. The vaccines and drugs earned the company much money in 2013(Michael & Pan 2013). Some of the unethical issues in the company are evident in that when allegations are show that the doctors from the company are given some money as an illegal payment in order to enhance the promotion of certain drugs in the market(Kelley 2006). The asthma drugs called seretide that are manufactured by GlaxoSmithKline, when the doctors recommend on the drugs for their clients to use, they give the specifications of the drugs.
The reason behind choosing the topic of ethics is that, it gives proper guidelines that keep good interpersonal relationships amongst people working in the same environment. Ethics is essential. They enhance asset protection. Adhering to the ethics of the workplace set in relation to the assets of a certain company, it creates the safety of the properties (Van & Bryan 2011).
Definition of ethics
Ethics is the concept of recommending and defending right actions and wrong actions or conduct. It mainly addresses the issues of morals and the best way of living and the rights and wrongs in a given circumstance. It entails the set way of life in that people ought to follow in a certain organization of the setting in the society. They are the regulations that people follow in order to live together in harmony and peace. They are the rules that are set to facilitate minimal conflicts among themselves. In coordination and enhancement of good relationships, people use ethics to facilitate the situation.
Types of unethical issues/behaviors
The unethical behaviors in managements include embezzlement of funds of the organization through personal gain and entertainments (Miller 2009). Some managers practice unethical behavior by taking advantage of their situation and the position in ranking in the organization and deliberately squander money belonging to the company.
The fact that they are given a superior position for instance to head the finance department, they knowingly misuse the rank to the disadvantage of the firm. They organize for payments of allowances inappropriately.
Management may offer themselves benefits and allowances that never exist. That is an evidence of unethical behavior. As a management, they are expected to be the ring leaders showing the rest of the personnel the right channels to follow in adhering to the ethics of the organization. The unethical sexual harassment done by the management to the employee should not happen. It happens especially to the new workers. In some situations, the new employees are given condition to getting a job (Lafollette 2000).
Strategies to deal with unethical behavior in particular issues on bribery
Roger in his research theory he argued that bribery can be dealt with by taking stern measures on the culprits. The people caught in the act of bribery, should be fined ten times the amount of bribery. He also suggested that hefty charges are to make the ones practicing the same, to shy away in fear of the charges. The issues of bribery ought to be dealt with from the authorities downwards. It will ensure that the superiors in the organization be on the forefront in instilling ethics in their various departments. Syse said that the employment of spies to find out bribery issues in an organization limits the chances of bribery (Syse 2011). It will keep away the people interested in the unethical behavior. Lafollette explained in his research that the approach of educating the people involved on the dangers accompanied with bribery can be used to curb bribery. Proper education is essential in order to make sure that no ignorance is involved in the act. The management ought to organize for seminars and meetings tailor made to change the behavior of the employees. Bribery is controlled through influencing the behavior of other personnel prone to the receiving bribe. It is done through communication amongst the workmates. The perception of the talk ought to be made to show the disadvantages of the unethical behavior of bribing. Thompsom in his research theory, he explicated that deal with ethics, formation of strict rules ought to be done by the relevant authorities dictating the consequences of bribing (Thompsom 2012). The penalties ought to be unbearable in order to make the leaders shy away from the unlawful act. The Organizational location; It explains how people get into unethical behavior because of the location. When the environment of the organization is conducive for the unethical behavior, it is likely to influence the others who do not practice bribery
Benefits to the company of being ethical
The benefits of a company being ethical are; it gives proper guidelines that keep good interpersonal relationships amongst people working in the same environment. They enhance asset protection. Adhering to the ethics of the workplace set in relation to the assets of a certain company, it creates the safety of the properties. Ethics facilitates the act of teamwork within an organization (Lyon 1889).
Limitation to the company of being unethical
The limitations of the company being ethical are; it is costly to develop and implement and further maintain a program that is compliant in the organization. The resources required as in the cost of paying people to draft the ethics for the organization. The process of making the ethics is time consuming; it takes much of the time to relate other employees’ values with the values of the organization thus it requires some allocation of a special time. (Blackban 2001).
Detail discussions about the news article
The GlaxoSmithKline Company had some allegations against the management concerning ethical issues particularly bribery practices in the company. It used to give bribes to doctors secretly against the law of the country in order to give a return of prescription of their drugs to the sick people. The doctors used to recommend the medicines as the best above the rest of the drugs. They trickily proposed the drugs to the sick people thus taking advantage of the patients trust to the doctor. The company denied the allegations and explained it was one of the employees, and they were taking care of the issue. The company unethically designed the act thus putting the doctors into the equation in order to create an outcome of bribery. The company hypocritically fabricated itself to be innocent as opposed to the reality. The unethical issues in the company are; when allegations show that the doctors from the company are given some money as an illegal payment in order to enhance the promotion of certain drugs in the market. Ex-worker discloses some of the crucial information that amounted to concrete evidence of the allegations made against the company.The asthma drugs called seretide that are manufactured by GlaxoSmithKline, when the doctors recommend on the drugs for their clients to use, they give the specifications of the drugs. To the expense of other drugs from other companies, the doctors were driven by the company’s management, through the tempting involvement of money as a tool of bribery, to perform an unethical act. The violation of the UK bribery act is an unethical practice (Torre 2004). It is evident when the former representative of sales says that they take it as an equation of give and take. The act of unethical practices is shown when the payments were done to signify educational services whereas they were bribes given to the doctors.
Discussion of theories related to the news article
The relative authority theory in relation to the article in the news; it is a scenario where the management spearheads the unethical actions in the organization. The theory of other people’s behaviours and beliefs as understood by the focal person. These two theories display the activities in the GlaxoSmithKline Company (Fagothey 2000). Fagothey in his theory he explained that, bribery can be stronger and difficult problem to solve, when the top brass is the root cause of the unethical behavior. It is because the subordinates follow the footsteps of the superiors. When they emulate their behavior, the whole of the organization will be practicing the unethical activity as in the case of Glaxo company, the top management was responsible for the bribing the doctors. When the subordinates copy their behavior, the practice of the whole company will be unethical. He also suggested in his theory that, bribery is addictive, and when it is done for a longer time, it changes to be a custom thus people will not be able to avoid it. According to the Glaxo Company, the behavior of giving bribes to the doctors grew to the extent of being known by the press. It all starts from scratch, and then due to the addictive nature, it crops up to become a disaster.
Solomon in his theory explained the impact of bribery to the future growth of the company. He said that, a company that practices the unethical activity of bribery, it tarnishes the name and the brand of the company thus making the company to lose clients in the future. It later amounts to loses and finally the company goes down. Connecting his theory to Glaxo Company, the fact that the unethical behavior made known by the public through the press, then the name of the company is tarnished. The future of the company if it does not stop the unethical practice is that, it will lose the clients thus leading to great loses.
Vendemati in his theory, he explained that, bribery is as a chronic disease, when not treated at infancy, it reaches a point of no return. In the case of to the Glaxo Company, when it was not curbed at early stages it grew to the extent that the management could not stop it. It is evident that the news about the bribery went to the media. In addition, he explains that bribery facilitates the growth of substandard products in the market. Many companies who use bribery as a tool of marketing, they pay no much attention to the quality of the products they are producing and selling in the market. It leads out to inferior goods and items being sold in the market. In the case of the Glaxo Company, they pay no attention to the quality of the product. Through the doctors, they claim that, their product is a better option for administering to the patients. There was no evidence of comparison with the other medicines used in the treatment of the same disease. The betterment of the medicine was being driven by the bribe given to the doctors.
Strategies/approaches to ethics
Vendemati a researcher argued that minimize the behavior of bribery in an organization, the people caught in the act of bribery must be punished in such a way that, they are an example to the rest of the people who may have the intention to develop the habit. In the case of the Glaxo company, if stern measures ought to be taken against the management. It will set an example for the consequences expected when any other company in the future practice bribery. Stern measures may include cancellation of the license of production of the drugs. It will shun the other companies practicing the act of bribery to stop.Thompsom a researcher enlightened that in the event of hefty charges made to the people bribing it will curb the practice from thriving amongst different companies. The charges ought to be done in consideration of the out-put of the company. It will ensure that, the amount charged affects the company with the intensity that can correct the wrong form being recurred. Freemont through his research suggested that thorough investigations to check on bribery ought to be done starting with the authorities downwards. Since the subordinates emulate the behaviors from the top brass, the likely root cause of the unethical behavior might be from the top management. For instance, the habit developed by the top management of the Glaxo company of bribing doctors, they are acting as pace setters to the subordinates. The event of investigating the bosses first will make the subordinates weigh the reaction to the unethical act of bribery thus circumventing the behavior. Spies should be used to check on the bribery issues (Solomon 1884). It will make people avoid the practice. The people ought to be educated on the demerits of bribery.
Ethical principles that can resolve ethical issues in an organization can be formulated as follows; no payment of items in terms of cash, no taking any equipment from the organization without permission, sales will only be done by the selected salesmen, no talking of vague language in the offices, no holding private meetings with the suppliers. Every item produced in the company ought to meet the current standards of quality acceptable by the company and the government. The desires of the costumer have to be met first, and then the personal desires come later. Courtesy must be enhanced amongst the workers of the organization irrespective of the appointment or rank.
In conclusion, ethics should be adhered to in an organization because they greatly contribute to the future of the organization. The firms manufacturing items and commodities geared towards selling to the customers should not only look on the profits it is making, but also give the best to the customer. The items that are ingestible may sometimes turn to poison when not handled with utmost care. Bribery like any other unethical behavior is unacceptable in the society. For the safety of the future of the companies and the global market, it is everybody`s responsibility to avoid the unethical act. Due to the contagious nature of the unethical behavior of bribery, it might reach various companies.
Organizations working together develop habit of imitating each other’s behaviors. The behaviors that are tailor made to bring about more profits with little consideration on the quality of the products. Considering long-term results, the global market may have inferior products. The principles of easy come easy go apply clearly in the cases of bribery. The glittering way of getting illegal possessions turns not to be gold. In the event that, the law catches with the person or an act of boomerang comes to the victim. A company that does not follow the ethics it has set; it is like the whole body without the eyes (Vendemati 2004).
The ethics formed in an organization must be perceived with much seriousness by everybody in the company no matter the appointment. Ethics ought to be reviewed after every financial year due to the changing times globally. Due to the increased rate of behavioral changes in the society, the various government administrations ought to formulate concrete ways of enforcing ethics in different organizations. Since ethics is made to govern the behavior of the people in the society, it is necessary to encourage occasional review of the ethics. Due to a change in technology that facilitate to greater changes in the activities of the organizations, new ethics ought to be formed. Strengthening of the existing ethics ought to be done depending on the behavioral changes noticed in the growth of the organizations. Bribery as one of the unethical practices must be taken seriously with the aim of eradicating it from the various companies’ activity. The cropping up of the bribery behavior must be taken with the same intensity as the existing behavior. It will trim the conduct before it grows in a big menace. Firms must organize anti-bribery campaigns amongst themselves. It will help to restraint the unethical act from spreading to other organizations. It will further change the perception of the behavior. The organizations that perceived the act as an initiative of acquisition of more profits will make a turn and perceive it as unethical behavior.