The Study On Applying Internal Control Concept To Prevent Commercial Bribery In Pharmaceutical Enterprises

In China, there has been a phenomenon of commercial bribery among the field of purchase-and-sell medicine. Commercial bribery is a kind of unfair competition, and it seriously endanger our economic in order to make our country bear fairly heavy economic loss, and increased cost of medical treatment of patients and the doctor-patient contradiction problem. Also, it is really harmful for our society. In the summer of 2013, the well-known pharmaceutical company-- GlaxoSmithKline (China) Investment Co., Ltd. (hereinafter referred to as GSKCI) is kicked out commercial bribery scandal. One of internal control objectives is to ensure the company is under legal compliance management, but GSKCI’s behavior has already violated the relevant laws. Moreover, "GSKCI’s misconduct is escaped from parent company’s supervisory." said from top executive in GSK headquarter. Therefore, there should be some problem in the company’s internal control system. However, GSKCI’s problem is not a individual case in China, so it is extremely valuable to explore these pharmaceutical companies’ issues from the perspective of internal control.The normative research method is used on overall of this article, the case of "GSKCI bribery incident" is used to analysis this issue. In the process of this article, it is with reference to a number of pharmaceutical industry data and a lot of internal controls and commercial bribery-related literature, and the case is carefully collated and summarized. Reference to the theory of internal control, and according to pharmaceutical companies’issues, there are some recommendations for pharmaceutical companies to prevent commercial bribery. In the first chapter, the article introduces the background and significance of the topic. On the other hand, a review of the relevant literature, and the idea of drafting are planned. The concept and theory of internal controls and commercial bribery are deeply analyzed in the second chapter. Also, the relationship between these two concepts are analyzed in this chapter. In the third chapter, the way of commercial bribery which is in the field of purchase-and-sale medicine, the adverse effects on the society, as well as the reasons of commercial bribery are analyzed in this chapter. In the fourth chapter, in accordance with the basic norms of internal control of the five elements of GSKCI bribery case specific analysis to identify its internal problems. In the fifth chapter, on how to improve internal controls to prevent the occurrence of commercial bribery, elaborated from the perspective of the five elements. In the sixth chapter, it concludes:pharmaceutical companies to improve internal controls can effectively prevent the occurrence of commercial bribery, while countries with better social multi prevent the emergence of commercial bribery.