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In Defense of Whistleblowers: Cheryl Eckard – Our Person of the Week

Posted in Whistleblowers

If she just saves one life, her payment is appropriate.  If she incentivizes just one whistleblower to come forward with similar information, her payment is appropriate.  And finally if compliance is tightened at Glaxo and other major pharmaceutical companies, her payment is appropriate.

In the last two days there has been substantial public backlash toward Cheryl Eckard.  Why?  Ms. Eckard recently earned a $96 million whistleblower award for providing information about Glaxo-SmithKline’s deficient drug production standards.  The backlash was undeserved.  This was not like winning the powerball lottery; she risked her career.  What she did was noble, courageous and likely will save lives.

Ms. Eckard worked for Glaxo-SmithKline in 2002 as a quality checker.  She traveled to different plants around the world checking for compliance with safety and manufacturing standards.  At a company that mass-produces pharmaceuticals for international use, Ms. Eckard had a job of vital importance.  It’s one thing if Nike uses low-grade leather in its shoes; it’s another if a drug company circumvents or ignores safety laws while mass-producing drugs.

When visiting Glaxo-SmithKline’s Puerto Rico plant that’s exactly what Ms. Eckard found and reported — different types and strengths of drugs were frequently bottled together without any corrective action taken by management.  Think about the consequences.

Regrettably, though, and perhaps to the astonishment of Ms. Eckard, her superiors, despite her detailed reports, simply ignored her.  Finally, likely after much soul searching, she risked her job in order to do the right thing.  She reported Glaxo’s transgressions to the FDA and later filed suit under the False Claims Act.  She didn’t do it for the money.  She did it because in good conscience, she could not turn a blind eye to major safety violations.

Many will think Ms. Eckard’s receipt of $96 million is out of line and unnecessary.  All she did was tell the FDA what she witnessed as part of her job.  But her value should be judged against the impact she made.  If she just saves one life, her payment is appropriate.  If she incentivizes just one whistleblower to come forward with similar information, her payment is appropriate.  And finally if compliance is tightened at Glaxo and other major pharmaceutical companies, her payment is appropriate. 

Carol Eckhard is our person of the week because of the example she sets.  She went to management repeatedly.  Only after being rejected and ignored did she risk her job and professional reputation to report Glaxo.  She did the right thing for the right reasons.

I hope that her conduct and character, not the $96 million, inspire others to follow in her footsteps.

 

Assisted by David Martin

  • Jon Millner

    I agree that Ms. Eckard deserves SOME reward for her brave action, but $96 million?!?! Seems like most of that money should go to the real victims of the transgression, not the woman who was simply in the right place at the right time. What decent human being would have done anything different than she did?

  • The Muse

    The $96 million dollars is more than appropriate. If Ms. Eckard had won the company itself, it would have been even better. Think of the “award” as more of a warning to this company, and all others who place profit over human life: Get caught cheating and it will cost you.

  • mds

    60 Minutes just having done a feature on this tonight (3 Jan 2011):
    …In case you’ve not noticed… there is a glaring shortage of your “decent individuals” in this world. Most individuals that would be decent have their mouths bound by money. Fear for their job.
    This woman risked more than her job, she risked her career… and any future career. Given the way Corporations operate, tell me: Who (in the private sector) would now hire this woman? And I wonder how much stress (not just financial, but I’m sure that part was significant) she and her family have gone through in the last 7-plus years?
    She did the _right_ thing (as you agree) but I doubt she would be employable after “ratting out” her employers. (I figure she had an expected income of around (not much more than, certainly) 2 1/2 Millions of US Dollars (w/ benefits) (in constant dollars, i.e. adjusted to today) if she were to have worked in her same position for the 15 years remaining until she reached age 65.)
    Now, I’m not calling her a rat. I laud her “decency” and the resulting actions her true decency carried her to. But there will be far too many (large among them GOPers and other right-wingers) who see her as an evil “anti-corporate”, thus anti-capitalist, thus anti-American element.
    And… the bulk of the money is NOT going to her — she’ll get 12%, at MOST. The bulk of the money is to the civil penalty… which, in theory I guess, goes to the damaged parties. How those parties are determined… ? Beats me…
    Recall: She got fired by Glaxo, even before blowing-the-whistle! She was doing her job, they didn’t like what she was telling them, so they killed the messenger. And in the long and short of it… they’d have been better off listening and fixing the problem… better off by _at least_ USD 750,000,000!
    Maybe enough companies get kicked in the ass for 750 million bucks then we’ll finally get them to act in the responsible manner expected in a “decent” society!
    And I’d not worry too much about that $96 million going to the wrong place. If she had the morals and guts to do what she has already then I figure a grand portion of that money she will give to worthy causes.
    I also wish to point out that Glaxo Smith Kline etc. etc. (as they exist today) is a huge multi-national which was formed by merger of several pharmaceutical companies (many American) which, once the Reganomic DOJ and FTC agreed on their mergers as being in the interest of the US Economy (other wise why would they have accepted them: protecting the US Economy being their job), promptly packed up shop and moved OUT of America! We lost well over 4,500 jobs in North Carolina alone from this!!
    The wonderful Jesse Helms (sarcasm), senior North Carolina US Senator at the time, engineered an extension of several pharma. patents past their statutory expiration to benefit particular pharma. Cos. (based or U.S.-based in the Research Triangle, North Carolina — a couple-three of them later merged into Glaxo;) ostensibly to benefit his constituency: North Carolinians. This was supposed to guarantee the continued growth of the pharma. industry in NC. Instead… it made them targets for takeover by Glaxo (at least one case a very hostile takeover).
    [Screw Jesse. I'm glad he's dead. I'm sorry he didn't die a good 30 years earlier!!! He was a pivot in getting the Religious Right together to put Reagan into the White House -- begetting Reganomics -- Which disaster has finally blown-up in the last decade!! (In case no one has noticed...)]
    Like Cheryl Eckard, I am a North Carolinian.*
    Way to win one for the Home Team, Jesse! 8[
    Mark
    From N.C.