7Retaining the Services of a Stakeholder

7.1General PrinciplesFavoriteLoadingAdd to favorites

  1. 7.1.1 For the purpose of this Section, the standards set out below apply to direct or indirect engagements with Stakeholders.
  2. 7.1.2 Members may retain Stakeholders, whether in groups or individually and compensate them for their services, travel and other expenses in connection with activities such as speaking at and/or chairing meetings, involvement in medical/scientific studies, clinical trials or training services, participation at advisory board meetings, participation in market research, development of material or other related services. Services provided to a patient in the context of a Patient Support Program or a Medical Practice Activity are governed by Section 14.
  3. 7.1.3 Member companies remain responsible for the activities and conduct of their third-party vendors. Indirect engagement of a Stakeholder could take the form of a third party hired on behalf of the Member company to engage Stakeholders to perform services. Examples include (but are not limited to) the engagement of a meeting planner who in turn invites, recruits, provides compensation to individual Stakeholders for services performed.

7.2StandardsFavoriteLoadingAdd to favorites

  1. 7.2.1 The agreements between Members and Stakeholders must be in writing and, to the extent relevant to the particular agreement, must fulfill the following criteria:- A legitimate need for services must be clearly identified in advance of requesting the services and entering into an agreement with the prospective Stakeholder. The selection of the Stakeholder must be based solely on his/her qualifications to provide the service required;• The number of Stakeholders retained must not be greater than the number reasonably necessary to achieve the identified need;

    • The hiring of the Stakeholder to provide the relevant service must not be an inducement for: prescribing, supplying, recommending, buying, selling, access, reimbursement or favoring Members’ products;

    • The selection of the Stakeholder must be based solely on his/her qualifications to provide the service required{{1}};

    • The number of Stakeholders retained must not be greater than the number reasonably necessary to achieve the identified need;

    • The hiring of the Stakeholder to provide the relevant service must not be an inducement for: prescribing, supplying, recommending, buying, selling, access, reimbursement or favoring Members’ products;

    • Compensation for the services (or honorarium) must be reasonable and reflect the fair market value of the services provided. Reimbursement of reasonable out-of-pocket expenses, including travel and accommodation, may be provided where the Code allows it. Payments must never be in cash{{2}};

    • Agreements must specify the nature of the services to be provided and the basis for payment of those services{{3}}.