In 1995 Douglas Durand went to work for Tap Pharmaceuticals as vice- president of sales. Several months after starting at Tap Pharmaceuticals, Durand was in disbelief to find out that the company was bribing urologists to purchase the new Lupron drug for prostate cancer. Durand found the culture at Tap Pharmaceuticals to be in misalignment. In order for Durand to protect his good name, he began to document all his findings over a 6 year period and submitting the information to federal prosecutors. The documentation that Durand submitted to the federal prosecutors was so overwhelming that it caused Tap Pharmaceuticals to plead guilty to conspiring with doctors and cheating the government. As result of the guilty plead, Tap Pharmaceuticals paid a staggering $875 million dollar fine, which Durand received 14% of the settlement for his efforts to remedy the situation.
The symptoms found in the Tap Pharmaceuticals case are primarily driven by numbers and monetary rewards.
The more the top sales reps could sale or distribute the bigger the monetary reward. Durand tried to institute a more structured environment to help remedy some of the illegal practices he encountered. Many of the sales reps at Tap Pharmaceuticals did not accurately track the samples of Lupron given out to doctors. Durand offered a year salary to sales reps to help the company keep accurate records of distribution of the drugs offered. It worked until upper management shut down the bonus program, furthermore; the reps settled back into their old ways. Symptoms of dishonesty, unethical behavior, inadequate record keeping, crooked doctors, and a complete disregard for laws and regulations set forth by the government are derived from the root cause of poor upper management found at Tap Pharmaceuticals.
The root cause and unresolved issues that Durand encountered at Tap Pharmaceuticals...