Drug manufacturer GlaxoSmithKline (GSK) is suspected of crimes of commercial bribery in China. Four senior executives of GSK's China offices have been detained and a British head who has left China is also allegedly involved. So far over 20 employees from GSK and travel agencies, through which GSK China funneled bribes, have been put under investigation. The GSK case is the most severe case concerning transnational companies engaging in bribery in China in recent years, making the probe a great leap forward in China's anti-corruption campaigns.
Some foreign media commentators have questioned whether China is becoming aggressive in regulating the investment environment. And some also complained that GSK performed well in other countries and only seems to have gone bad in China. These commentators to some extent defend violations of ethics and even crimes by foreign companies.
However, there is no excuse for any crimes. GSK on Monday made an apology to the Chinese public, which showed that China's decisive crackdown and judicial investigation into GSK was the right move.
Foreign investment projects have helped spur China's economic development and have enjoyed many preferences across China. Various places in the country are still competing to attract foreign investors.
It's notable that some foreign-invested companies have engaged in very serious, brazen bribery in China. They eroded commercial ethics and jeopardized economic order. It was simply a matter of time before their illegal actions came to light. GSK's boosting of sales through bribes is almost semi-public knowledge, so there is no surprise that it was caught up in anti-corruption storm.
In recent years, bribe-receivers have been the major targets when fighting against corruption and crooked officials are always the public focus. The bribers have been neglected in public discourse, and they even got sympathy, as if they were the victims.
Giving bribes is also a violation of the law and one of the most formidable challenges in constructing a sound legal system. Not all the bribers are forced to do so. More than a few consider paying bribes to be a shortcut to business success. They disturb fair competition, turning crooked ways into "hidden rules," and fueling the spread of corruption.
If China strengthens its crackdown on both bribers and corrupt officials at the same time, the effects of the anti-corruption campaign will be doubled.
This is the first time that so many senior executives of a transnational company have been investigated for giving bribes. We hope China can make a thorough investigation based on the law and that it will serve as a deterrent.
China is moving step by step toward a clean governance society. The GSK case should be a lesson to all companies. We believe reporting and disclosing bribe-giving will gradually become a new platform on the Internet, and supervision over it will spread.