Wednesday 16 January 2013
Pharmaceutical giant GlaxoSmithKline (GSK) has become the latest large company to be entered into the Forum of Private Business' (FPB) Late Payment Hall of Shame.
The firm has increased supplier payment times from 60 days to as much as 95, depending on the date invoices are received.
As such, GSK has joined the likes of Sainsbury's, Dell, Argos and Carlsberg, which have all increased supplier payment times retrospectively.
Robert Downes, spokesman for the FPB, said that when suppliers receive a letter like the one GSK's suppliers are being sent, few have any choice but to agree to the new payment terms.
"There is little room for bargaining through fear they will lose the business, and no small firm wants that in the current economic climate," he stated.
"For the sake of small businesses and the economy, the government must prioritise tackling the culture of poor payment, addressing the bully boy behaviour of these bigger companies."
Mr Downes said that what makes the GSK case "all the worse" is the sheer size and profitability of the firm.
"This is not a business struggling to make its way in the world," he stated,
"It is, however, a company concerned only with boosting its own profits whatever the cost to smaller firms, and has scant regard for the consequences of its actions."
Posted by Sarah Parish