Good vs.

Bad:
Ethical Companies
Sanofi
Our example of an ethical pharmaceutical company
GlaxoSmithKline
Our example of an unethical pharmaceutical company
Sanofi
Sanofi is a French multinational pharmaceutical company,
The company covers up to seven
therapeutic areas:

❏ Cardiovascular
which head quarters in Paris, France. Their motto/slogan is: ❏ Central Nervous System
Because health matters. This is a great indicator that the ❏ Diabetes
❏ Internal Medicine
company actually cares for their customers. Sanofi is the
❏ Oncology
sixth largest pharmaceutical company in the world. Sanofi is ❏ Thrombosis
involved with researching & developing, ❏ Vaccines
manufacturing/marketing drugs, and developing over-the-
The Founders of this company are Jean-François
counter medication. Dehecq and Jean-René Sautier.

Jean-René Jean-François
Sautier. Dehecq
Sanofi Ethics
Sanofi is a very ethical company, their website includes a 45 page pdf on their code
of ethics and their corporate social responsibility. They include many pages about
how to respect and protect people, maintaining integrity while managing, and
maintaining integrity in their business practices. Here are some key questions
Sanofi asks themselves often to maintain their ethical code:

Am I violating any law, Sanofi Code of Ethics, policies

& procedures?

Am I being inconsistent with ethical values?

Am I treating others the same way I would expect

to be treated?

Will I owe something in return to anybody?

Could my decision appear improper if published

on the front page of a newspaper?
Sanofi
Code of Ethics
In Sanofi’s “Code of Ethics”
they clearly state that they
RESPECT & have no tolerance for any form
PROTECTION of discrimination on grounds
OF PEOPLE AND such as:
THE ENVIRONMENT ❏ gender identity
Sanofi is a company that promotes human rights, diversity, practices ❏ age
fairness, and are always consistent with respecting the rights of their ❏ origin
employees (i.e prohibiting child labour/forced labour). They have ❏ religion
been a signatory of the United Nations Global Impact since 2003 and ❏ sexual orientation
❏ physical appearance
plan to keep it that way. Sanofi is committed to support equal
❏ health disability
opportunity for both an employee and/or job applicant and for ❏ trade union activity
prohibiting any conduct that may negatively affect a person’s dignity. ❏ political opinions
Sanofi also attempts to reduce their carbon footprint as much as ❏ nationality
they can in order to help our environment! Lastly, Sanofi also protects ❏ family situation.
the privacy of their clients, employees, patients, and healthcare
professionals.
Sanofi
Code of Ethics
Examples of confidential
information which Sanofi tries
INTEGRITY IN to keep protected:
MANAGING result in bad situations that may be
COMPANY ❏ The company’s business
affiliated with listed partners and can
and financial condition
INFORMATION affect more than just one company ❏ Strategic/business plans
Sanofi is a company that is very overall. On the flip side Sanofi, in ❏ Pricing information
cautious of their appearance and recent years, has been becoming more ❏ Marketing plans and
they really care about how their prominent with their social media business development
appearance and have been posting strategies
company is run. They focus on
❏ Clinical data, research
preventing insider trading, daily about their products, who they
and technical data,
protecting confidential/sensitive are helping, and informing people inventions, and
information, and their social media about fake medicines and innovations
presence. Sanofi states that insiderimmunizations. Sanofi is very watchful ❏ Confidential information
trading and not protecting about what they post, who posts, and entrusted by business
their overall image (this gives them a partners
confidential information could
great competitive edge!
Sanofi’s Instagram Account
As mentioned before, Sanofi’s social media
presence is quite large. They have around
22,400 followers due to their great marketing
skills and important information they give to Place your screenshot here

their followers. Sanofi also has a YouTube

Channel that has approximately 20,000
subscribers. Their videos include topics such as
their professions, responsibility, your health,
investor relations, and live streams.
 They care about this so much
because they don’t want their
Sanofi
INTEGRITY IN
company to look improper,
which can reflect as the
public undermining the
company. Second, Sanofi wants
OUR BUSINESS to be honest, transparent, and
PRACTICES integral so employees may
engage in public life
Sanofi likes to maintain a very independently as long as their
professional look so they look participation is clearly a personal
after dealing with conflicts of
endeavor with no connection to
interest, participating in the Sanofi. Third, Sanofi believe that
outside world/public life, and all employees must comply with
respecting free competition. the competition and must refrain
Sanofi finds it essential to ensure from unfair behaviours. To the
that, when making a big business right, there is a list of anti-
decision, there is no conflict of competitive behaviours that
interest between the employee Sanofi expects their employees to
and business partner. not to follow.
Code of Ethics
❏ Entering into agreements,
including informal
understandings, with
competitors for price fixing,
bid rigging, market allocation
and agreements to restrict
supply.
❏ Exchanging competitively
sensitive information with
competitors.
❏ Abusing a potential position
of market dominance.
❏ Imposing restrictions on
customers or suppliers.
❏ Entering into certain mergers
and acquisitions.
Sanofi’s
Corporate Social Responsibility
This videos explains and shows Sanofi’s corporate
social responsibility. Key responsibilities include how
much they care about the environment. They watch
their carbon footprint and try to reduce carbon gas
emissions when transporting their drugs, and they also
use solar panel energy, which is a renewable energy
source to help the environment. Sanofi cares that all of
their products are real and they are committed to
making safer medicines. The company cares about
their commitment to fight against neglected tropical
diseases. Sanofi’s close relations to WHO (World
Health Organization) and they have donated about $25
million to help overcome sleeping sicknesses in third
world countries.

Sanofi’s Website states: “Corporate social

responsibility (CSR) is core to Sanofi’s business as a
healthcare leader in Canada. Being a healthcare
partner involves promoting social progress, economic
development and respect for the environment as well
as acting ethically and responsibly.”
 1. They provide a safe 2. Sanofi’s average salary
is about $82k per year.
and healthy workplace Although, due to Sanofi
for all workers. They being such a large
respect and protect company their salaries
workers, while ensuring range from about $53k to
they are healthy. $167k per year. They don’t
pay workers minimum
wage.

6. Sanofi, donates to many 3. As mentioned before,

charities and really cares
about the world around Sanofi’s CSR
them. For example, they have
made a commitment to help
fight neglected tropical
Principles
disease and they donated
$25 million in order to help.
5. When pricing
products, Sanofi,
focuses on three pillars:
clear rationale when
pricing, limited U.S price
increase, and continued
transparency in the U.S.
Sanofi cares for the
environment as much
as it can. Their facilities
use a type of renewable
energy and they are
cautious about their
4. Sanofi is a really
truthful company as carbon gas emissions.
they really care that
all their products are
real and safe. Sanofi
has a long testing
process for the
quality level they
want.
 Sanofi’s
Values and Standards
Being Transparent
Being Transparent is key for Sanofi.
They want to be honest about what’s in
their drugs and they don’t mind if people
Standards know. Being transparent shows
consumers they can trust Sanofi!
Satisfaction of the
consumer
At Sanofi they really believe that the
Values
customer is always right. They like to
hear what the consumer has to say about
their products rather than just one of their
workers. They love hearing from the
public and getting their views on
Sanofi’s products.
Safety
Safety standards are very important at
Sanofi. They care about their workers
and the conditions they are working in as
well. Sanofi ensures that their workers
are in good hands and always in a good
environment,
Helping people in need
Sanofi values helping people in third
world countries that need help. As
mentioned, they donate so much, to so
many different places and they overall
care about everyone. Sanofi helps
encourage people to set out a helping
hand as well.
Health
Lastly, the health of Sanofi’s consumers
is huge. This is the most important factor
of running a pharmaceutical corporation!
Sanofi takes this very seriously to ensure
their consumers are getting good
products and quality medicines.
Environment
Sanofi really cares for the environment
they are in and value it a lot. Sanofi only
uses renewable resources for energy at all
of their facilities. They also have a five
pillar plan to help improve on creating
less waste.
Sanofi
Environment
This is Sanofi’s Planet
Mobilization Plan to help
save the environment! For
more on how Sanofi cares
for the environment go
check out:
https://www.sanofi.com/en
/our-responsibility/planet-m
obilization
GlaxoSmithKline
GlaxoSmithKline is a British multinational pharmaceutical
1830
Smith & Gilbert drug house opened in Philadelphia. (Mahlon Kline later joined the
entity.)
company headquartered in Brentford, London. They are 1842
the seventh largest pharmaceutical company after other Thomas Beecham started Beecham’s Pills in England.
well-known examples like Johnson & Johnson and Pfizer. 1856
GSK manufactures products for major disease areas such Plough Court pharmacy took on the name Allen & Hanburys.
as asthma, cancer, infections, diabetes and mental health. 1880
As of 2013, GSK had offices in over 115 countries and American pharmacists Henry Wellcome and Silas Borroughs started Borroughs
employed over ninety-nine thousand workers. Their largest Wellcome & Company in London.
market is found in the United States, but they have a 1958
strong presence in Canada as well. Glaxo Laboratories acquired Allen & Hanbury’s.
1989
SmithKline Beckman and the Beecham Group merged to form SmithKline
Beecham.
1995
Glaxo and Wellcome merged..
2001
SmithKline Beecham and Glaxo Wellcome merged in a $75.7 billion stock deal.
This gave GlaxoSmithKline its official start.
GSK - Paxil and its Controversy
One of the biggest controversies to surround GlaxoSmithKline was
the producing and promotion of Paxil. Paxil is an antidepressant and
one of the potent selective serotonin reuptake inhibitors (SSRIs) in
the world. GSK permitted the sale of this drug to all adults and
adolescents, and promoted it the same way. They did so by citing
their own privately-funded research published in 2001, claiming to
show that Paxil is "well tolerated and effective" for kids. They also
illegally bribed doctors to look over the fact that they weren’t
federally permitted to treat minors.
That marketing effort worked. In 2002 alone, doctors wrote two
million Paxil prescriptions for children and adolescents.
GSK - Paxil continued...
A follow-up study suggested that the original conclusions were wildly wrong. Not only is Paxil
completely ineffective, working no better than placebo, but it can actually cause serious side effects,
including self-injury and suicide, especially in adolescents. This is especially grave for a drug that
functions as an antidepressant. This research found that GSK had manipulated their data and selectively
downplayed the harms of the drug in their analysis.
Eventually, the FDA issued a black box warning for Paxil concerning these suicidal thoughts and
behavior in children and adolescents, particularly those with major depressive disorder.

Paxil is also linked to serious developmental disorders in babies born to mothers

who took the drug while pregnant. A 2015 study published in JAMA Pediatrics
found that mothers who took SSRIs like Paxil while pregnant had double the
risk of having a baby with autism.
 What is a Black Box Warning? “
A black box warning is the U.S. Food and Drug Administration’s most serious warning for drugs and
medical devices. A drug or device with a black box warning has side effects that may cause serious injury
or death. These side effects usually greatly outweigh the potential benefits that would come with the
medicine.
 Other Controversies
Avandia is another drug manufactured by GSK. It is used to control blood sugar levels in people with Type 2 diabetes. It also carries a black box warning about
a risk for new or worse congestive heart failure in some patients. It also carries major common side effects such as headache and upper respiratory tract
infection. GSK conducted a study that compared the drug to its competitor Actos. The study looked specifically at risks for heart patients. However, their
research yielded problematic results. Not only was Avandia no better than Actos, but the study also provided clear signs that it was riskier to the heart.
Rather than publish the results, GSK tried to bury them. A legal settlement between the manufacturer and the state of New York in 2004 however required the
drug maker to post every detail about all of its clinical trials, including those for Avandia. This forced release set off a chain of events that ended in fines,
penalties and restrictions on the drug from the federal government. GSK also paid roughly $770 million to settle more than $16,200 individual Avandia
lawsuits between 2010 and 2011, and in 2011. the company set aside $6.4 billion to pay for future costs related to the drug.
Zofran, another GSK drug, has been called the most-prescribed pharmaceutical medicine for treating morning sickness. However, the FDA never approved the
drug for that use. Mothers of children who suffered birth defects after taking it while pregnant have sued GSK, saying that it was marketed to pregnant women
without FDA approval nor risk warning.
In 1991, the FDA approved Zofran to help cancer patients with nausea and vomiting after chemotherapy or radiotherapy treatments or surgery. Some doctors
whose patients suffered from morning sickness began prescribing Zofran to treat symptoms, even though it lacked FDA approval for that use. For the most
part, the drug was effective in relieving symptoms, but lawsuits allege GSK took it a step further and began to actively promote the drug for morning sickness,
despite the fact that it’s illegal to promote drugs for off-label use.
 Federal Payments and Lawsuits
In the largest settlement involving a pharmaceutical company, GSK
pleaded guilty to criminal charges and had to pay $3 billion in fines
for fraud involving the unlawful marketing of Paxil and the
withdrawal of critical information regarding Avandia and its trials
in 2012. The agreement also included civil penalties for improper
marketing of a half-dozen other drugs. One of these other drugs,
Zofran, also gave way to 623 individual pending lawsuits from
parents who gave birth to children with birth defects from the drug.
A Chinese court ordered GlaxoSmithKline to pay $492 million in
2014. The fine resolved charges of bribing doctors in China to use
their products over competitors, even if it involved a higher risk
factor. It was the biggest penalty ever imposed by a Chinese
court. The court sentenced Briton Mark Reilly, GSK’s British
executive for China, to four years in prison. Four other Chinese
employees also received the same punishment. However, the
employees may never serve prison time. The court postponed the
sentences, and Reilly was deported.
 Other Unethical Practices
In 2015, an Argentinian court fined GlaxoSmithKline $92 786 for their conducting of
unethical clinical trials. GSK tested an unsafe trial version of a pneumonia vaccine on
15 000 Argentinian babies. It is reported that most of the infants recruited for the trial
were from poor families who attended public hospitals. The vaccine allegedly killed 14
babies in the country during the trial period, which was from 2007 to 2008.
Furthermore, the trial investigators did not take proper consent from the children’s
parents before injecting them with the active vaccine. In some cases, scientists working
for GSK relied on permission from under-age parents or illiterate grandparents. The
investigators also did not have adequate records of the children’s ages, medical histories
and previous vaccines given to the babies.
For further information, this video helps explain ↠
GlaxoSmithKline
General Ethics and Conclusion
The whole point of a pharmaceutical company is to offer ways of healing to those who need it. GlaxoSmithKline doesn’t seem to hold this as one of their values. For
every product they put out, it seems to be trailed by some sort of health, safety, or moral controversy. They don’t seem to give any thought whatsoever to the wellbeing
of their consumers. For them, profit seems to be their only concern. GSK is usually aware of the risks their products can have on the consumers but choose to ignore or
even hide them from the public eye. Some cases, like in China, they bribe doctors to get more sales and therefore more profit and money. Regarding their ethics in
general, they are perfectly fine in some instances, like for CSR principles of safe work environments, fair labour policies, protecting the environment, and avoiding
price discrimination. They don’t excel in any of these categories, but they don’t fall short either. GSK does some charitable work, for example with the Bill and Melinda
Gates Foundation developing a malaria vaccine for poor nations. However, they fail to live up to some CSR standards especially in the case of truthful advertising,
which was the base of several lawsuits against them. They do have codes of ethics, but seem to fail to live up to them. For example, GSK’s Code of Practice claims that
their promotional material is not misleading – by distortion, exaggeration, misrepresentation, undue emphasis, omission or in any other way. This is contradictory to
their history. Zofran was promoted to help treat morning sickness, something it was never meant to do. They make promises after being public exposed to learn from
their mistakes and never make them again. A relevant case of this is during a press release, Andrew Witty, the CEO, issued a public apology in response to their $3
billion fines of federal criminal charges. "Whilst these originate in a different era for the company, they cannot and will not be ignored. On behalf of GSK, I want to
express our regret and reiterate that we have learnt from the mistakes that were made,” he said. However, it’s to be seen if GSK will keep their promise and improve on
their unethical behavior.
 Sources
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