Becton Dickinson: Ethics and Business Practices
Problematic: The challenge that Becton Dickinson (BD) is facing is how to harmonize its professional ethics and work practices throughout the world in accordance with the prevailing business practices and environment. Employees are looking for greater guidance and a clearer stance from top management on which they could refer to, to handle ethical issues in terms of gifts, gratuities, payments, entertainment, conflicts of interest, and related matters. In the meanwhile, BD has an ambitious plan to push for performance: moving into new markets and shifting away from distributor based sales in order to boost the company’s ROE (20%) and the ...view middle of the document...
The main issues are gifts, gratuities, culture, and family connections.
EMA: managers emphasize the importance of relationships and building trust in preserving business or developing new one even through countries of the region show many differences. Another point is related to the limits of giving and receiving gifts as part of the dominant culture of the region.
Latin America: local managers point out that corruption still the key problem.
Overall different points of view and inquisitions emerge from managers regarding “the right thing to do” and the money amount limits to define on gifts and entertainment.
BD analysis: BD is a medical manufacturing company, with operations worldwide, and revenues of over $2.5 billion dollars in 1996, more than half of it comes from the U.S. BD is a supplier of seven main product lines of medical supplies and diagnostic equipment. Since 1995, BD has undergone several organizational initiatives:
* Established Global One Company Operations Group to build common identity and promote cultural change across all BD businesses in any location.
* Re-organized the company into 7 business lines to: conserve its leading position, continue to make strategic investments, answer customer needs, and save costs.
* Created 6 design teams to spot hindrances to performance and seize opportunities for growth.
* Engaged employees on BD’s mission and values by allowing them more freedom, involving them in discussing important matters, encouraging them to be flexible, make decisions, seize opportunities, and be innovative.
* Put in place the Ethics and Business Practices Program to increase attention to ethics while minimize legal risks.
* Enhanced coordination and integration in all levels of employees also educating and training them on the basic expectations for conduct worldwide.
BD StrengthsWell established reputation within industry.Focus on mission and values.Healthy financial situation | BD WeaknessesLack of uniform ethical procedures and real policy.Set up high objectives in terms of growth and sales.Failure to create new “meaningful growth”...