Submit a 7-to-8 page analysis of the issues that responds to the criteria and questions listed below. Post your paper to Individual Paper #1 by Tuesday, midnight.
Additional research is required. Use the data presented in the case study as well as information provided by course readings, videos, simulations and Discussions.
Address these issues and questions:
The CEO of a company based in the USA with subsidiaries in the United Kingdom is contemplating moving some of its operations to China but has read about the GSK bribery scandal in China. The CEO understands that the climate for foreign companies operating in China is not as welcoming as it used to be. The CEO is now asking his manager for international business to assess the GSK case, analyze the issues it presents. In particular the CEO wants to know what lessons his company can learn and how the company can reduce its risks when operating in China. The CEO handed his manager this list of questions:
GSK has featured its robust ethics and compliance program, even a “3rd Party Code of Conduct” for suppliers. What went wrong? What are the main external and internal factors that encouraged the GSK bribery scandal in China? Which, in your opinion, are more important? Explain your position.
Assess GSK’s response so far. Are the initiatives that GSK has implemented to address the bribery problems sufficient or would you suggest further actions? If you were Mark Reilly what would you have done? Explain.
Do you think that GSK has been treated unfairly? Was GSK really at fault or was it just unfortunate to have gotten caught given the perception that companies have to resort to bribing to win contracts? Explain.
How can we avoid similar situations and how can we reconcile local expectations of questionable payments with the U. S. Foreign Corrupt Practices Act or the U.K. Bribery Act? What do you recommend? Explain your position.
What strategic and operational lessons can we take from your analysis?
The report is to be double-spaced with 1-inch margins, 10-to-12 point type, posted as a rtf or Word document. Use APA format for citations and references. The cover page and list of references are not part of the page count. The report’s organization is to be:
Introduction: A brief paragraph that states succinctly the key issues raised by the case and that you will address in your report.
Analysis: Respond to the questions/issues raised by the CEO. Justify the answers you provide. Your report should recognize, integrate and cite relevant concepts and ideas from the required readings, videos, simulations, and Discussions.
Conclusions and Lessons Learned – What strategic and operational lessons can the CEO learn from your analysis?