50 The Multinational Corporations:

Cultural Challenges, the Legal/

Regulatory Framework and the

Medico-commercial Environment

R. DruckerandR. Graham Hughes

50.1 Cultural challenges

‘Culture’ has been defined as the ‘totality of
socially transmitted behavior patterns, arts, beliefs,
institutions and all other products of human work
and thought typical of a population or community
at a given time’ (Webster’s Dictionary, 1984). With
respect to the multinational pharmaceutical cor-
poration, culture can be thought of at three levels:
(a) societal; (b) medical; and (c) corporate. At each
level, culture has an omnipresent impact on drug
development, prior to and after regulatory
approval. Sensitivity to cultural considerations
will help identify, conceive, present and respond
to issues in drug development. It may also help to
identify sources of competitive advantage.

Societal culture

Societalculturedescribesthoseattributesofculture
pervading a population or community inhabiting a
given geographical area. Individuals from the same
societal culture share common values. A multina-
tional corporation has to deal with many societal
cultures, even, sometimes, within a single nation.
Differences in societal culture will result in differ-
ent responses to key issues. Table 50.1 indicates a

range of culturally determined responses to impor-

tant questions.

One can apply the concepts in this table to the

pharmaceutical industry, for example, to manage-

ment practices originating from one culture being

applied in a different cultural setting. For example,

companies in the United States tend to use control

systems that exert more checks and balances on

personnelthandoEuropeancompanies(ahabitthat

may have historical origins in a Christian, noncon-

formistsetoftraditionsemphasizingabeliefthatall

people are intrinsically evil). Similarly, companies

with development programs involving contracep-

tive drugs have sometimes aroused criticisms

among their personnel, depending on country, reli-

gious background and personal beliefs.

Other cross-cultural differences revolve around

the distinction between group goal seeking and

individual goal seeking. Group goals are empha-

sized by those who see a lineal relationship of man

to man as important; this contrasts with to those

cultures of an individualistic disposition that

emphasize individual goals (Japan versus the

United States is a clear exampleof this dichotomy).

Concern for the welfare of the extended family

might result in the hiring of a close relative in

one culture, but cause accusations of nepotism in

another.

Principles and Practice of Pharmaceutical Medicine, 2nd Edition Edited by L. D. Edwards, A. J. Fletcher, A. W. Fox and P. D. Stonier
#2007 John Wiley & Sons, Ltd ISBN: 978-0-470-09313-9