GSK’s management system was not clear. The company’s shareholder did not effectively controlled and invested the GSK’s operation, which is responsible for its bed policies of the business and small reputation of the brand as well as bribery and misconduct allegations in the China’s drug market. It is because China’s government statement said that the company’s employees wore not follow the code of conduct (Twomey and Jennings, 2010). They also used fake receipts in unspecified tax law violations and company did not give details on the number of GSK executives, which were relatively involved in the corruption to the country’s security ministry. China government has targeted foreign firms on multiple fronts including alleged such as price-fixing, quality controls and consumer rights. Then after, it focused on multinational brand to define their reputation in country, and then it founded that GSK case had the highest profile. In the preliminary investigations, China’s legal system said that GSK executives will be formally charged for taking bribes and stealing commercial secrets. On the other hand, GSK said that it is willing to cooperate with the authorities in this inquiry (Burke and Cooper, 2009).GSK’s management system was poor and ineffective for the drug products. Shareholder were not controlling the GSK’s business and manufacturing activities. They did not understand the corporate culture and also have criticism from both the consumers and shareholders of the pharmaceutical products. Along with this, GSK has poor corporate structure, which could not maintain its business and other ethical issues that also created effectively misconduct in the company (Leipziger, 2010). GSK has also lack of corporate social responsibilities, because its maximum employees only focus on the high product manufacturing and promotion and ignored the safety and health issues. Along with this, GSK’s management did not effectively guide to business conduct and to follow all the rules and regulations of the business. So, the employees were not serious in the company’s code of conduct (Burke and Cooper, 2009). GSK was developing its business in the centralized system process, which is not effective in this multinational corporation. It is because centralization of business process creates several kinds of barriers in the large businesses such as poor controlling power, ineffective communication and long process of the business activities. These barriers also generate poor code of conduct in the organization. Along with this, the centralized system also creates poor monitoring of all human resource in the business. It is because centralization of system is less effective than decentralization of system. All business activities do not controlled by the head office, which is helpful to maintain all ethical and corporate issues (Twomey, and Jennings, 2013).