Pharmaceutical company as an industry has been accepted as the leader of sustainability measures Due to their exclusive position as health suppliers, any efforts taken for sustainability is considered to be the building block to achieve their vision, mission and long term goals.
Initially the incorporation of sustainability initiatives with the profit maximisation motive of the company was based on the following factors:
• Incorporation of the sustainability measures in the VMO of the company.
• Extended support from the higher authorities towards these measures.
• Involving all stakeholders to become a part of the initiative and take them into consideration on all sustainable activities.
• Observing, evaluating and process focus improvement.
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Companies like Astra Zeneca are trying to help those who are uninsured and underinsured to get easy access to medicines.
Different companies have different form of sustainable activities and it differs from one sector to another, there is no distinctive footprint of participation in the standards. A majority of pharmaceutical companies invest in sustainability reporting which helps them in managing their sustainable activities and benchmarking. This is extremely useful to the participants even while remaining a process focus. With the advent of CSR in the pharmaceutical companies, there would be comprehensive reporting on the impact on society.
As CSR emerges, perhaps the pharmaceuticals will truly begin to prepare comprehensive reports and measure their impact on society and the earth. The companies are using its CSR activities as a tool to enhance its corporate brand value and reputation. This shift not only provides a platform to display effort that reacts to societal expectations and takes initiatives that is most fruitful for the
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This will help them reduce the time taken for drug development as they can simultaneously focus on integration of external resources with internal activities and create a synergy between the two. Core activities also involve huge capital expense. Thus, by shifting their focus and strategically outsourcing these activities, a sustainable competitive advantage can be created that concentrates on improving drug substance process development technologies that will bring down the time and cost involved in drug molecule synthesis.
However, there is a perception problem in the pharmaceutical industry that needs to be addressed. Organisations feel that the work done on core activities should be in-house and that outsourcing them will only affect the quality of work. This myth needs to be dispelled. Also, such strategic restructuring requires a fundamental change in the way the organisation works and employees are handled. This is by no means a small feat and requires the top management to truly believe that such structural changes are going to be very beneficial to the
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
21). Corporate social responsibility (CSR) directly corresponds to one’s organizational culture and the voluntary implementation of these beliefs, expectations and values. It goes hand in hand with their organizational reputability, especially if society benefits from them operating in an economic, social and environmentally sustainable manner (Global Affairs Canada, 2016). Two companies that demonstrate this initiative mindset are Tentree and Nike, yet they execute in completely different manners. On the organizational spectrum Tentree falls under the Social Venture category, meaning they are for-profit but also on focus on issues regarding social equity and environmental sustainability. Their social responsibility initiative is to plant ten trees for every item purchased by individuals on their website, or from retail vendors (Tentree, n.d., para. 1). Nike is categorized under being a Social Purpose Business because it achieves its desired social impact as well as continuous profit (Jones, George, & Haddad, 2016, p. 4). Nike’s social responsibility initiative is to transform production development and manufacturing to overall minimize the company 's environmental footprint (Nike,
According to Brand India Equity Foundation, the Indian pharmaceutical market is likely to grow at a compound annual growth rate (CAGR) of 14-17 per cent in between...
Corporate social responsibility (CSR) invaded the corporate world over the last few decades. This concept has become an essential need for competitive advantage unlike its original role as a nicety. The companies have seen the business benefit of the initiative and stakeholders have appreciated the initiative. This has led to the wide application in the firm’s operational agenda.
Over the past years, the U.S. pharmaceutical industry R&D spending has increased at a rapid rate. Costs have been relatively stable in the preclinical phase, but have risen dramatically in the clinical phase both in terms of direct costs incurred and in time required to complete the trials.2 DiMasi reasoning for the increase in costs is from the focused development for chronic and degenerative conditions that require more costly studies for efficacy and larger clinical trial sizes.2 Some pharmaceutical companies found ways to fill their pipelines through: 1. mergers and acquisitions, 2. in-licensing new compounds, and 3. form strategic alliances and partnerships with other companies. Forming a partnership does help developing a product or drug...
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
...achieving the major objectives. If there are only a few core competencies after outsourcing, firms can strive to develop best-in-the-world capabilities.
Corporate Social Responsibility (CSR) is about how companies manage their business processes to produce a positive impact on society. Companies introduce new products in markets, usually after testing concludes that the product is safe for use or consumption. It is nearly impossible for a company to truly know all of the potential risks a brand new product may have, even after thorough testing. However, once a company receives reports that its product may be causing harm to consumers, it is their responsibility to conduct more research and tests to rule-out any possible truth in the reports. This is what a socially responsible company would do, one who is preoccupied not only with their bottom-line, but one that is also worried about its customers.
...and the negative image poor social responsibility creates. Poor corporate social responsibility can be detrimental to the success of any business and this variable often poses a significant threat to large pharmaceutical companies. I would address this issue by investing money into promotional strategies that sponsor and support sustainable practices. Supporting “green” initiatives and appearing environmentally friendly generates positive publicity and a favourable image in the eyes of the consumer. Investing into programmes such as these would display GlaxoWellcome in a positive light and would destroy the negative stigma often attached to companies in the pharmaceutical industry. The implementation of these strategies although costly, may swing consumer preference for the drug and increase market share, brand awareness and the overall profitability of the business
Novartis concerns itself with continuous innovation and improvement of its operations, in FY2015 they invested $8.9 billion in R&D, significantly advancing its promising pipeline projects and securing major FDA and European approvals across its portfolio. Novartis has achieved a very good image and high reputation on a global scale, becoming a respectable example of the “good global citizen”, frequently ranked among the top companies of Fortune magazine’s most highly admired companies of the pharmaceutical industry. The reason behind it emerges from their emphasis on environmental protection policies, as well as safety and satisfaction of
Outsourcing is a strategic activity in which some of the internal activities of the organisation are delegated to external firms because of various reasons such as:
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
Corporate Social Responsibility (CSR) is a very familiar term in today’s world. Most of the successful companies try to be ethical and socially responsible toward their stakeholders. Because becoming ethical and socially responsible gains a lot in terms of profit or capturing more market share (Aras and Crowther,2009). This socially responsible approach is paved by the CSR activities of the companies which has a great contribution to their corporate strategy of winning the customers’ mind. In this assignment, the pros and corn of CSR activities of a particular organization a...
A corporations CSR should be shaped in order to fit the goals of the corporation, although every corporation’s CSR should differ, since most have different goals and different communities behind them. The CSR should be molded into fitting the corporation’s goals in order to make it easier on the corporation in giving back to the community while achieving its goals. For example, a corporation located in a desert wishes to be more efficient, by reducing water usage it is not only creating lower costs, which result in higher revenue, but also helps the community by not taking up so much water. Taking this into consideration, it is critical that the corporation goals and values are established and clear throughout the corporation, they should be developed by the board or directors and CEO, and the highest managerial level should stress their importance to the rest of the corporation. By making the goals and values at the top branch of the corporate hierarchy, it will be simpler for the corporates community to develop in order to nurture those goals and values. Therefore, a corporation can reach the “shared-value,” a value for both its shareholders and community in a simpler manner that can result benefiting the corporation in the end as well. Throughout the article many examples are given of actual corporations that have benefited and changed their CSR in order to fit their goals, therefore, providing solid proof that these methods work. Nevertheless, as acknowledged by the author’s themselves, most of the corporations taken into consideration where one’s that Harvard CSR students were employed
Now-a-days it is considered that CSR is one of the major concerns of organization’s business ethics. Companies increasingly increase their corporate social responsibility (CSR) and ethical management accepting the positive impact on the bottom line. The vast bulk of Standard & Poor’s 500 companies publish sustainability reports unfolding their program challenges and achievements. These pre-emptive efforts can pr...