Research On Foreign Funded Commercial Bribery Governance Based On Internal Control

With Commercial bribery of pharmaceutical enterprises has became a social focus.In July 5,2018,Science,the number one in America,published two articles in its homepage,which pointed the finger straight away at approval doctors and experts in FDA for their accepting bribes from pharmaceutical enterprises.This problem draws the attention of the world.And the exposed commercial bribery issues of foreign invested enterprises in China have been increasing.This unfair commercial competition and illegal marketing practices put enterprises at high risk.Once it is defeated,the enterprises will lose the trust of consumers and society,which is unhelpful for their long term benefits.This practice also seriously undermines the market order of fair competition,results in some social problems,such as falsely high drug price,tense relationship between doctors and patients and official corruption,which is harmful for the legitimate interests of consumers and is a key target of the national judicial department.In addition,enterprises should pay attention to this problem,from their perspectives to prevent themselves from the companied risks.Internal control at present has basically developed a more compete research system,one of the goals of which is to ensure legal compliance of enterprises operations and management.The completeness of internal control system is significant for enterprises to improve management and standardize market operations.As the bribery of pharmaceutical enterprises is practiced by their related personnel,the internal control based research system is more effective for the governance of commercial bribery through the completeness of enterprises internal control system,strengthen of internal control execution and prevention of commercial bribery from the perspectives of internal control.Novartis,a multinational pharmaceutical giant,has been repeatedly bribed in China.This paper taking Novartis as an example,gives an analysis upon its operational condition from the aspects of its internal control environment,risk evaluation,control activities,communication and supervisory.Finally,by cultivating a good internal control environment,improving the risk assessment system building,strengthening the control measures,strengthening the information communication system,and strengthening the internal supervision of enterprises,the paper proposes the construction of the Novartis(China)internal control system for the purpose of preventing commercial bribery.Therefore,it provides a reference for pharmaceutical companies to prevent commercial bribery risks from their own perspective,standardize the sales behavior of pharmaceutical companies,and to improve the internal~1governance of commercial bribery.