Short-term cures without heed to ethics have long-term side effects

Outlook Ethics professors in the world's business schools traditionally play second fiddle to the harder-nosed management science wonks. Somewhere down among the blackboard wipers in the academic pecking order.

But surely these unsung heroes deserve to be promoted this week, given how the pharmaceuticals industry has thrown up such wonderful examples of the damage short-term profit-think does when ethics and social considerations are left behind.

The cudgelling Pfizer has had from scientists, MPs and the media over its bid for AstraZeneca has been almost entirely based on its ruthless cost-cutting, plant closures and reductions in R&D spend. Suddenly, the company's closure of its plant in Sandwich doesn't look so clever. It may have saved a few million dollars – but if the political row it has now created proves fatal for the Astra bid, how many billions of dollars of US tax avoidance will it cost Pfizer in the long term? On a personal level, if he fails to pull off this deal, it could even cost Ian Read his job.

Meanwhile, GlaxoSmithKline's quick-buck enthusiasm for grabbing a share of China has returned to bite it where it hurts, too. We will have to see how Mark Reilly, GSK's former China head, fares through the country's legal system – he may well, of course, be innocent of all wrongdoing.

But serious financial damage by the scandal has already been done. GSK, which has admitted some senior members of staff have broken the law in China, has lost millions. Revenues from China in the third quarter of last year alone were down 61 per cent as doctors opted to prescribe rival manufacturers' versions of its medicines.

And that's before we even begin to count the legal costs. China's new charges are bound to attract the renewed attention of those tenacious upholders of the US Foreign Corrupt Practices Act, the Department of Justice and Securities and Exchange Commission, let alone our own – albeit less fearsome – Serious Fraud Office. Fighting these organisations takes a lot of lawyers.

GSK has faced such ethical scrutiny before, of course, paying $3bn (£1.8bn) in fines in the US a couple of years back for, among other serious ethical transgressions, bribing doctors to prescribe its drugs and promoting its antidepressants for use on children and adolescents.

The fines and lost revenues from ethical breaches can be counted in dollars and cents. But the loss of long-term goodwill among potentially important communities – Britain's scientists, in Pfizer's case – can prove even more costly.

PROMOTED VIDEO
News
The comedian, 42, made the controversial comment following the athlete’s sentencing to five years for the culpable homicide of Reeva Steenkamp on Tuesday
peopleComedian's quip about Reeva Steenkamp was less than well received at music magazine awards
News
Cumberbatch spectacularly photobombs U2 at the Oscars
news
Life and Style
Could you tell the difference between this and an organic alternative?
food + drink

Culinary experts in The Netherlands thought it was 'fresh' and 'tasty'

News
Will menus with calorie counts really deter junk-food addicts from eating junk?
i100
Sport
Today's Liverpool Echo back page
football
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
Six of the 76 Goats' cheese samples contained a significant amount of sheep's cheese
food + drink
News
i100
News
Russell Brand arriving for the book launch in East London
peopleRussell Brand cancels his book launch debate due to concerns about the make-up of the panel
Arts and Entertainment
JK Rowling will not be releasing a 'romance' novel anytime soon
books
Life and Style
tech

Of all the computers Apple has ever made there’s only one that Steve Jobs had to sell his car to finance

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer with T-SQL, Watford, Hertfordshire - £350 - £360

£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...

Chief Financial Officer

120-150k: Accountancy Action: We are looking for an experienced CFO from a min...

IT Systems Business Analyst - Watford - £28k + bonus + benefits

£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...

Day In a Page

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?

A crime that reveals London's dark heart

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?
Meet 'Porridge' and 'Vampire': Chinese state TV is offering advice for citizens picking a Western moniker

Lost in translation: Western monikers

Chinese state TV is offering advice for citizens picking a Western moniker. Simon Usborne, who met a 'Porridge' and a 'Vampire' while in China, can see the problem
Handy hacks that make life easier: New book reveals how to rid your inbox of spam, protect your passwords and amplify your iPhone

Handy hacks that make life easier

New book reveals how to rid your email inbox of spam, protect your passwords and amplify your iPhone with a loo-roll
KidZania lets children try their hands at being a firefighter, doctor or factory worker for the day

KidZania: It's a small world

The new 'educational entertainment experience' in London's Shepherd's Bush will allow children to try out the jobs that are usually undertaken by adults, including firefighter, doctor or factory worker
Renée Zellweger's real crime has been to age in an industry that prizes women's youth over humanity

'Renée Zellweger's real crime was to age'

The actress's altered appearance raised eyebrows at Elle's Women in Hollywood awards on Monday
From Cinderella to The Jungle Book, Disney plans live-action remakes of animated classics

Disney plans live-action remakes of animated classics

From Cinderella to The Jungle Book, Patrick Grafton-Green wonders if they can ever recapture the old magic
Thousands of teenagers to visit battlefields of the First World War in new Government scheme

Pupils to visit First World War battlefields

A new Government scheme aims to bring the the horrors of the conflict to life over the next five years
The 10 best smartphone accessories

Make the most of your mobile: 10 best smartphone accessories

Try these add-ons for everything from secret charging to making sure you never lose your keys again
Mario Balotelli substituted at half-time against Real Madrid: Was this shirt swapping the real reason?

Liverpool v Real Madrid

Mario Balotelli substituted at half-time. Was shirt swapping the real reason?
West Indies tour of India: Hurricane set to sweep Windies into the shadows

Hurricane set to sweep Windies into the shadows

Decision to pull out of India tour leaves the WICB fighting for its existence with an off-field storm building
Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?