GSK axes political funds

GlaxoSmithKline, the UK-based pharmaceutical group, will cease corporate donations to political parties around the world, in a fresh effort to improve openness and remove accusations of unfair lobbying at a time of likely change to the US healthcare system.

Andrew Witty, the chief executive who took office this spring, told the Financial Times: “I don’t want people to have any question about our involvement in the political process and in ensuring that healthcare is improved.”

Mr Witty said he wanted the company’s focus to be on ideas for US healthcare reform – on which he welcomed debate – without distractions or confusion caused by support for political parties.

The move, which will largely affect contributions in the US, follows several other initiatives that Mr Witty has taken in an attempt to improve the company’s image both in his previous role in charge of European operations and since taking over GSK.

GSK, in line with pharmaceutical companies and those in many other sectors, has made significant donations in the past – the annual report showed £249,000 was given during 2007.

Mr Witty stressed that GSK would continue to fund policy think-tanks and patients’ organisations, though funding to the latter in the US will be made public, as it is in Europe.

However, GSK will continue to provide administrative support that allows employees to contribute to Political Action Committees, which in the US last year provided £522,000 to political parties.

Mr Witty recently pledged his commitment to calls by US lawmakers for greater “sunshine” over payments made to doctors in the US over work that could be linked to companies’ drugs and said he would cap any support at $150,000 per person per year.

He has also endorsed GSK’s commitment to making public the data from clinical trials, and said he would provide greater information on activities including the company’s work to raise access to medicines in the developing world.

Daniel Summerfield, head of responsible investment at the Universities Superannuation Scheme, a GSK investor said he was “pleased” it was ending the donations.