From promise to compliance: The development of 'integrity' at SmithKline Beecham

Long Range Planning

Volumn 32, Issue 2, 1999, Pages 190-198

  Jones, Ian W ^a   Pollitt, Michael G ^a  

^a NONE

Author keywords

[No Author keywords available]

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EID: 0041033978     PISSN: 00246301     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0024-6301(99)00017-5     Document Type: Article

References (39)

1. C. Wright, Business ethics and corporate culture, in I. W. Jones and M. G. Pollitt (eds), The Role of Business Ethics in Economic Performance, p. 191, Macmillan, London (1998).
2. See N. Hasell, Britain's most admired companies: Rentokil topples Glaxo, Management Today December, 40-49 (1994).
3. A US district judge subsequently awarded 16% of the settlement to three of the whistleblowers involved. See K. Hallam, Harvesting the fruit. Modern Healthcare 28 (16), 54-56 (1998).
4. S. Hensley, Settling fraud charges. Modern Healthcare 27 (9), 28 (1997). The maximum liability per false claim is $5000.
5. See A. Bell, SmithKline Lab Unit face suit by insurers. National Underwriter 9 September, 11 (1997).
6. See SB Annual Report on Form 20-F, p. 14 (1993).
7. SB International Chairman's Message, Third Quarter (1996).
8. For a detailed history of the background to the merger and the history of the company from 1989 to 94 see R.P. Bauman, P. Jackson and J.T. Lawrence, From Promise to Performance - A Journey of Corporate Transformation at SmithKline Beecham, Harvard Business School Press, Boston, MA (1997).
9. Bauman et al., op cit., p. 93.
10. Bauman et al., op cit., p. 169.
11. Bauman et al., op cit., p. 166.
12. Bauman et al., op cit., p. 175. SB hired W.W. Burke as a consultant and made use of his model of individual and organizational performance. See W.W. Burke and G.H. Litwin, A causal model of organizational performance, in Developing Human Resources, San Diego University Associates (1989); W.W. Burke and P. Jackson, Making the SB merger work, Human Resource Management 30 (1), 69-87 (1991); and B. Trahant and W.W. Burke, Travelling through transitions. Training and Development 50 (2), 37-41 (1996).
13. Bauman et al., op cit., p. 175. SB hired W.W. Burke as a consultant and made use of his model of individual and organizational performance. See W.W. Burke and G.H. Litwin, A causal model of organizational performance, in Developing Human Resources, San Diego University Associates (1989); W.W. Burke and P. Jackson, Making the SB merger work, Human Resource Management 30 (1), 69-87 (1991); and B. Trahant and W.W. Burke, Travelling through transitions. Training and Development 50 (2), 37-41 (1996).
14. Bauman et al., op cit., p. 175. SB hired W.W. Burke as a consultant and made use of his model of individual and organizational performance. See W.W. Burke and G.H. Litwin, A causal model of organizational performance, in Developing Human Resources, San Diego University Associates (1989); W.W. Burke and P. Jackson, Making the SB merger work, Human Resource Management 30 (1), 69-87 (1991); and B. Trahant and W.W. Burke, Travelling through transitions. Training and Development 50 (2), 37-41 (1996).
15. Bauman et al., op cit., p. 175. SB hired W.W. Burke as a consultant and made use of his model of individual and organizational performance. See W.W. Burke and G.H. Litwin, A causal model of organizational performance, in Developing Human Resources, San Diego University Associates (1989); W.W. Burke and P. Jackson, Making the SB merger work, Human Resource Management 30 (1), 69-87 (1991); and B. Trahant and W.W. Burke, Travelling through transitions. Training and Development 50 (2), 37-41 (1996).
16. SB Communiqué, Spring, 1-19 (1993) and SB, Understanding "Simply Better" and the "Simply Better" Way (1993).
17. SB Communiqué, Spring, 1-19 (1993) and SB, Understanding "Simply Better" and the "Simply Better" Way (1993).
18. P. Jackson, SB Communiqué, Spring, p. 18 (1993).
19. SB Communiqué, Spring, p. 19 (1993).
20. Source: SB Leadership Planning Process (1998).
21. Source: Leadership Planning Documents (1998).
22. Of fourteen direct reports to Bauman at the time of the merger only two were left a year later [Source: G. Litwin, J. Bray and K.L. Brooke, Mobilizing the Organization - Bringing Strategy to Life, Prentice-Hall, London, p. 175 (1996)].
23. The Chief Operating Officer emphasises this in an interview in G. Gordon, A CEO who communicates=a CEO who builds trust. Communication World 10 (6), 17-20 (1993).
24. SB Company-Wide 1996 Worldwide Organization Survey Results. This survey also allows calculation of the percentage of respondents who think a core value is being demonstrated in the company. The results show that the support for the integrity value was 78% in 1994 rising to 82% in 1998.
25. An introduction to the provisions of the Act can be found at http://www.usdoj.gov/criminal/fraud/fcpa/dojdoc.htm and the statute itself is at http://www.usdoj.gov/criminal/fraud/fcpa/FCPAStat.htm. Penalties for violation are up to $2m per conviction for corporations, $100,000 for individuals or five years in prison or both.
26. This law was enacted in 1863 but was substantially strengthened in 1986 [see A.G. Feliu, Whistleblowing while you work. Business and Society Review, 72, 65-67 (1990)]. On whistleblower legislation in the US see T.M. Devine and D.G. Aplin, Whistleblower protection - the gap between law and reality, Howard Law Journal, 31 (2), 223-239 (1988).
27. This law was enacted in 1863 but was substantially strengthened in 1986 [see A.G. Feliu, Whistleblowing while you work. Business and Society Review, 72, 65-67 (1990)]. On whistleblower legislation in the US see T.M. Devine and D.G. Aplin, Whistleblower protection - the gap between law and reality, Howard Law Journal, 31 (2), 223-239 (1988).
28. SB Policy Manual (1993).
29. SB, Together We Win, Video, Desert Springs (1998).
30. SB Policy Manual, SBPM-28, 2.
31. SB Corporate Code, SBCC-09, Facilitating Payments, p. 31 and SBCC-46, Civil and Political Activity-SB, p. 87.
32. SB Corporate Code, SBCC-09, Facilitating Payments, p. 31 and SBCC-46, Civil and Political Activity-SB, p. 87.
33. SB Business Conduct Guidelines, July p. 7 (1997).
34. SB International Chairman's Message, Second Quarter (1998).
35. Corporate Profile: SB, The Times, 14 September (1998).
36. R.D. Haas, Business ethics. Executive Excellence, 17-18 June (1997).
37. For instance, the chief executive, whether fairly or not, was recently criticised for his handling of the merger negotiations with AHP and Glaxo Wellcome. Some employees questioned why the proposed merger deal with Glaxo Wellcome was made public on a Friday evening only minutes after AHP was told that advanced merger negotiations with them were at an end. See S. Ryle and P. Farrelly, Glaxo and SmithKline plan merger. The Observer, 1 February (1998); S. Ryle, Drugs firms hooked on mergers: bitter pill for workers as companies refuse to say where axe will fall. The Observer, 8 February (1998) and Leschly fighting back at SmithKline Beecham, Independent, 13 July (1998).
38. For instance, the chief executive, whether fairly or not, was recently criticised for his handling of the merger negotiations with AHP and Glaxo Wellcome. Some employees questioned why the proposed merger deal with Glaxo Wellcome was made public on a Friday evening only minutes after AHP was told that advanced merger negotiations with them were at an end. See S. Ryle and P. Farrelly, Glaxo and SmithKline plan merger. The Observer, 1 February (1998); S. Ryle, Drugs firms hooked on mergers: bitter pill for workers as companies refuse to say where axe will fall. The Observer, 8 February (1998) and Leschly fighting back at SmithKline Beecham, Independent, 13 July (1998).
39. For instance, the chief executive, whether fairly or not, was recently criticised for his handling of the merger negotiations with AHP and Glaxo Wellcome. Some employees questioned why the proposed merger deal with Glaxo Wellcome was made public on a Friday evening only minutes after AHP was told that advanced merger negotiations with them were at an end. See S. Ryle and P. Farrelly, Glaxo and SmithKline plan merger. The Observer, 1 February (1998); S. Ryle, Drugs firms hooked on mergers: bitter pill for workers as companies refuse to say where axe will fall. The Observer, 8 February (1998) and Leschly fighting back at SmithKline Beecham, Independent, 13 July (1998).