Question

You are a manager at a firm like Sanofi, a French pharmaceutical company doing business in China, the United Kingdom, and the United States. Like Sanofi, your stock is traded on the New York Stock Exchange and on the London Stock Exchange. Some of your sales representatives gave doctors employed in state-owned Chinese hospitals very expensive Rolex watches for prescribing your drugs. Is your firm potentially liable under FCPA? Under the U.K. Bribery Act? Explain your answers.

Answer 1

It is stated in the question that a firm like Sanofi is doing business in China, UK and US. So, it is connected with the rules followed in china, UK and US.

If the sales representative is presenting Rolex watches to doctors for prescribing drugs then it is potentially liable under FCPA. FCPA means Foreign corrupt Practices act FCPA is related to bribing of foreign public official. As state owned Chinese doctor is a public official thus the company comes under FCPA As the company is listed on New York stock exchange so FCPA is applicable.

As far as UK bribery act is concerned it is applicable on UK or applicable to those companies and agents who are trading in UK. It is evident that the sales representative is trying to bribe doctor for prescribing the drug. The bribery act include both public and private officials. So here the intention to prescribe the drugs of the company to whom sales representative belongs. It is Clear case of bribery act.