Pharmaceutical companies and sustainability: an analysis of corporate reporting

Abstract

PurposeThe purpose of this research paper is to benchmark the evolution of reported sustainability activity in the pharmaceutical sector, which has been recognized as a leading sector in industrial sustainability.Design/methodology/approachThe authors examined recent published corporate sustainability activity reports for 11 pharmaceutical sector‐related companies and compared this to a similar earlier study.FindingsSustainability related activity has increased in breadth and depth, but activity is now being shifted toward corporate social responsibility, which is reflective of corporate need to satisfy public sentiment.Research limitations/implicationsThe paper is formed on the basis of voluntarily reported activities and published documentation, therefore, it does contain a potential for bias and “greenwashing”; however, regardless of the impetus, the integration of sustainability is still evident.Practical implicationsThe paper is of value to the practicioner and manager to benchmark the venues and activities reported for sustainability, in other words, what is the sector participating in and what is it reporting?Originality/valueBenchmarking of corporate practice in a sustainability leadership sector provides a glimpse into the emerging standard of practice for industry.

Improving supply chain social responsibility through supplier development

“…External stakeholders emphasize that the pharmaceutical industry must adhere to strict product and process quality standards as well as implement sustainable and responsible operations and supply chain management practices (Veleva et al 2003, Gupta et al 2007. CSR thus has become an integral part of pharmaceutical companies' global supply chain strategies (Schneider et al 2010, Parmigiani et al 2011.…”

“…Leisinger (2005) argues that pharmaceutical companies ought to avoid questionable manufacturing practices and work legitimately beyond legal requirements, and can fulfil social responsibilities through corporate philanthropy, community and neighbourhood programs, volunteerism, and donations. Schneider et al (2010) find that pharmaceutical companies provide information on application of management tools, energy and climate change efforts, expanded life cycle analysis, and efforts in traditional Safety, Health, and Environment (SHE) management in their voluntary sustainability reports. Frederiksborg and Fort (2014) suggest that CSR is more than philanthropic programs and pharmaceutical companies must build trust with external stakeholders.…”

“…Researchers argue that CSR in pharmaceutical industry is more than philanthropic activities (Leisinger 2005, Salton andJones 2015) and multinational pharmaceutical companies have not been living up to their social responsibilities (Leisinger 2005, Rossetti et al 2011. As pharmaceutical companies are boosting their efforts to source products and services from emerging economies and are working in partnerships with suppliers (Gupta et al 2007, Smith 2008, Zhang et al 2013, cases involving suppliers who operate irresponsibly have been widely reported and have centred on environmental and social issues (Smith 2008, Schneider et al 2010. Hence, suppliers' capabilities and skills to deal with CSR challenges play critical roles in pharmaceutical companies' CSR performance (Foerstl et al 2010, Schneider et al 2010.…”

“…As pharmaceutical companies are boosting their efforts to source products and services from emerging economies and are working in partnerships with suppliers (Gupta et al 2007, Smith 2008, Zhang et al 2013, cases involving suppliers who operate irresponsibly have been widely reported and have centred on environmental and social issues (Smith 2008, Schneider et al 2010. Hence, suppliers' capabilities and skills to deal with CSR challenges play critical roles in pharmaceutical companies' CSR performance (Foerstl et al 2010, Schneider et al 2010. However, there is limited empirical evidence on how to improve suppliers' CSR capabilities in the pharmaceutical industry (Smith 2008, Frederiksborg andFort 2014).…”

Corporate Citizenship, Social Responsibility, and Sustainability Reports as “Would-be” Narratives

“…In that case, corporate image/reputation seems to be the decisive factor for being engaged with the GRI principles. Sustainability reporting is often mirrored through corporate social responsibility initiatives, that is, a set of concrete measures expressing the corporate engagement towards socially sensitive issues (Schneider et al 2010). It deals with issues that make social and nonsocial stakeholders, employees, customers and governements expecting corporate engagement towards a better collective wellbeing (Turker 2009).…”