Pharmaceutical brand: Becton Dickinson

Résumé du document

Becton Dickinson is a pharmaceutical brand created in 1897 in the United States. By 1996 it was the world's largest producer of various medical devices such as syringes and needles. The company grew rapidly through the century and had to revamp its organization scheme in 1995 in order to face new challenges. This restructuration, led by the CEO, Clateo Castellini, had several main objectives. Among these objectives, one stood out: the ethics and business practices program. However, the company faced various problematic issues while attempting to realize this specific objective. Indeed, the company is implemented all over the world and one had to take hinge of it's cultural singularities. Thus, is it possible to implement a unique rule in business practices for a worldwide company, especially when it comes to corruption? More generally, how can a company draw the line separating corruption from business practices? At what level of the organization should corruption issues be treated? Last but not least, who should communicate inside the organization on this policy?

Extraits

[...] Some managers require a flexible policy in order to adapt to those emerging markets. Another vision insists on the necessity to strengthen those principles, arguing that those societies will change and adapt to the ethical criteria. More consensual managers accept the necessity of this redefinition of the organization values, but recognize the need to slow the process, giving time to the stakeholders to reach transparency. Page Becton Dickinson (Case Analysis) So, in the end, what does the dilemma consist in? [...]

[...] That was underlining the fact that change in ethical behaviour should proceed at all levels, and spreading personal responsibility among staff. Among the points that needed to be reinforced stood conflicts of interest, gifts and gratuities granted to potential clients and the attitude that was required to deal with government officials. Although corruption issues were becoming a growing subject of interest for international organizations at this moment and international statements and rules had been established, BC's managers were still facing great difficulty in applying those rules in some part of the world. [...]

[...] It was also coherent with the chairman's desire to Page Becton Dickinson (Case Analysis) communicate basic expectations for business conduct worldwide: points we don't want to compromise”. However, the firm being international, the legislation in each different region makes it very difficult to issue a homogenous guideline. For instance some business behaviors are considered normal in countries such as China but are forbidden in Europe. Exhibit 5 asserts that every US Company forbids any payment to a government official. But it is rather vague especially on the matter of diversion which hinders regulatory compliance by preventing the company from tracking its own products. II. [...]

[...] "Social responsibility" is now the key to BD's success. Indeed the company promotes philanthropy and provides technical resources and funds to non-profit GNO; it is also the greatest donator to UNICEF, and it actively supports fight against Aids. BD's managers seems to have realised that even if they might lose some selling opportunities on local markets because of being "too" ethical; ethics is also what makes an organization be more than just a company and acquire great reputation worldwide . [...]

[...] A global trend for ethics. The mid 90s were indeed a time of heightened attention to the problems of bribery and corruption. One can put forward the various initiatives taken by American institutions. For instance, the OAS (Organization of American States) approved the world's first anti-corruption treaty. In the same trend, the European Union Council adopted a protocol making inter-EU bribery a criminal offence. In such a context of global concern about bribery, BD felt it was part of its mission to strive to eliminate behaviors that could be considered as improper. [...]