Professional Documents
Culture Documents
Submitted By: GROUP-8(DIVISION B) Aditya Jain Anshul Gupta Gaurav Jain Himanshu Chaudhary Saket Agarwala Thirumagan A.
Contents
1. 2. EXECUTIVE SUMMARY .............................................................................................................. 4 THE PHARMACEUTICAL SECTOR ............................................................................................. 4 2.1 OVERVIEW OF THE MAJOR ISSUES PLAGUING THE NATIONAL AND GLOBAL HEALTH SCENARIO ........................................................................................................................ 4 2.2 DEFINING CSR FOR PHARMACEUTICAL COMPANIES ...................................................... 6 3. GSK CSR ACTIVITIES THAT IMPACT THE COMMUNITY ...................................................... 6 3.1 Rural Initiative ............................................................................................................................... 6 3.1.1 3.1.2 3.1.3 Educational Centers............................................................................................................. 7 Shelter home for children ..................................................................................................... 7 Mid-day Meal project ........................................................................................................... 7
3.1.4 Access to medicines .............................................................................................................. 7 3.2 Research and Development Initiatives towards Community.......................................................... 8 3.3 Investing in developing world healthcare infrastructure ................................................................ 8 3.4 Disaster response ........................................................................................................................ 8 4. 5. 6. WHAT DOES GSK DO FOR ITS EMPLOYEES? .......................................................................... 8 Accolades for GSK .......................................................................................................................... 9 MARKET PLACE OF GSK ............................................................................................................ 9 6.1 6.2 6.3 6.4 7. GSK Follows Recognized Marketing Codes ............................................................................. 9 Marketing Code Exercise and Execution ................................................................................ 10 Facilitating a Culture of Compliance ...................................................................................... 10 Scientific Engagement and Marketing .................................................................................... 10
HOW DOES GSK AFFECT ITS ENVIRONMENT? ..................................................................... 11 7.1 Some initiatives taken by GSK:.................................................................................................... 11 7.2 Use of water resource in GSK operation....................................................................................... 11 7.3 Managing waste: .......................................................................................................................... 12 7.4 Destination of hazardous waste .................................................................................................... 12 7.5 Carbon neutral value chain........................................................................................................... 12 7.6 Packaging .................................................................................................................................... 13
7.6.1 8.
7 Rs ................................................................................................................................. 13
Analysis......................................................................................................................................... 15
Bibliography ......................................................................................................................................... 16
1. EXECUTIVE SUMMARY
The idea behind this report was to analyse the importance of CSR in the pharmaceutical sector. We start with the introduction to the Pharmaceutical Sector which has played a historical role in the development and upliftment of people. The Pharmaceutical sector has a long history with regards to its involvement in CSR activities and is an apt industry for a CSR report. GlaxoSmithKline was selected because it is actively involved in various CSR activities which have direct and indirect influence on a vast majority of people. This Report provides a varied outlook on influence of GSK on its community, workplace, employees, marketplace and finally the environment at large. Analysis of each sector is followed by our critical analysis and the recommended way forward for its sustainable development.
2.1 OVERVIEW OF THE MAJOR ISSUES PLAGUING THE NATIONAL AND GLOBAL HEALTH SCENARIO
Often times when we think about health issues we think of those directly affecting our lives. It is rare to think about health issues around the world, because our perception of health tells us that these issues are not really something that we need to be concerned about. Perhaps this is because the continents are separated by water, and somehow this allows us to feel that we are safe where we are as long as we are not traveling to places that have certain health issues and diseases.
The Graph given below summarizes the major causes of deaths in the world:
Source: (India Current Affairs, 2011) Looking at the major causes of deaths in the world and the death distribution chart, we can infer that a major portion of the deaths can be prevented or delayed through effective use of medicines which is the motive of global pharmaceutical majors such as GSK.
3.1.1 Educational Centers GAVS operates a Balwadi (pre-school) for under five year age group children of rag-pickers community in a slum pocket called Amrapali in Nashik. In addition to inculcating good civic norms, these techniques train and educate their minds with impact.(GSK, CSR Report,2007). GAVS have also launched three Vocational Training Centers in PethTaluka. The centres were launched in the beginning of 2008 in collaboration with Mumbai based partner organization, Kherwadi Social Welfare Association. Over 700 youths have been trained and a number of them are currently gainfully employed.(GSK, CSR Report,2007) 3.1.2 Shelter home for children GSK India in collaboration with Pratham, a Non-Government Organization (NGO), started a Shelter home for children under the age of 16. The project aims at prevention of children migrating to bigger cities in need of work and falling prey to child labor and anti-social elements. 3.1.3 Mid-day Meal project GSK Pharmaceutical has been supporting the Mid-day meal program for Municipal school students from the year 2005.(GSK, CSR Report,2007) 3.1.4 Access to medicines Every year Hundreds of millions of people die from curable or preventable infectious diseases or suffer unnecessary ill health because they do not have access to basic healthcare services, including essential medicines or vaccines. There are two main barriers in the developing world. Distribution network for medicines is poor. Poverty To address the twin problems GSK has come up with the following approach. Increasing availability GSK is trying to expand availability of its medicines and vaccines to as many of the people who need them as possible. The company is broadening its portfolio by introducing new products and making sure that existing products are more widely available to the health needs of people in developing countries. Improving affordability Pricing is one factor that impacts access to medicines and vaccines. GSK wants to ensure that the medicines are not only available but also affordable to everyone in the world. So the company continues to take substantive steps to reform its core practices, including adopting a range of flexible pricing models. The company is introducing medicines in smaller pack sizes to make it more cost effective. In the Least Developed Countries, the prices of the patented medicines and vaccines are fixed at not more than 25% of prices in the developed countries.
3.4
Disaster response
GSK donates cash and supplies of its products to people affected by emergencies and natural disasters. In 2010 this included 250,000 to help the British Red Cross provide emergency safe water and sanitation for people affected by the Haiti earthquake and 170,000 to support communities affected by the earthquake in Pakistan.(GSK, CSR Report, 2011)
GSK received a Platinum Award - the highest honour - for its commitment to fostering a culture that supports healthy high performance. Also providing a healthy workplace and promoting a healthy lifestyle for employees and their families.
According to GSK's Christopher Viehbacher, President, US Pharmaceuticals, GSK plays a major role in creating a healthier, more spirited staff by planning health benefits that encourage the prevention and better management of chronic diseases and their costly complications.
Corporate responsibility, including ethical marketing practices, is an essential part of their business. Sound business practices require us to operate in a manner that is responsible to all stakeholders, including their shareholders and society at large.
In the United States, they abide by the PhRMA Code on Interactions with Healthcare Professionals and the PhRMA Guiding Principles on Direct-to-Consumer Advertisements of Prescription Medicines. GSK also has in place a set of Commercial Practices Policies that were developed to provide clear rules on how GSK employees should conduct themselves in their job. In Europe, GSK observes individual country laws, regulations and industry codes, engulfing the European Federation of Pharmaceutical Industries and Associations (EFPIA) Code of Practice and has its own GSK European Promotion of Medicines Code of Practice
7.
GSK is thriving hard to align its business operations with environmental sustainability as it feels the need to meet the environmental challenges. These environment challenges are also seen as an opportunity keeping in mind the changing business environment. Lately, GSK has been stressing upon its value chain to be carbon neutral. There is a strong urge to reduce the carbon footprint, 20% reduction in water use across the value chain and keeping the waste to zero for landfill by 2050. (GSK, CSR Report, 2011)
The consumption of energy used by operations and transport has decreased by 6.6% that is from 26.0 million GJ in 2009 to 24.3 million GJ in 2010
7.6 Packaging
In order to reduce the impact on environment, GSK is set to source 50% of its paper requirement from sustainable sources by 2015 and further 90% by 2020. Furthermore, the concept of 7 R was also implemented in 2010 as a part of sustainable packaging strategy
7.6.1
Reduce
7 Rs
FOCUS EXAMPLE The mass of materials, complexity The redesigned Ventolin and the life cycle footprint of canister will save 125 packaging tonnes of aluminium and 1,200 tonnes of CO2 per year Materials with sustainability or Removing the PVC tray for EHS Nicoderm saved over 8 Issues tonnes of material and 20 tonnes of CO2 every year Recycled materials in packaging Reusing trays, pallets and (subject to regulatory drums saves plastic and requirements Wood which mean this is a major challenge in pharmaceuticals) Design for recyclability Moving the desiccant required in Niquitin bottles to the cap means bottles can be recycled Working with suppliers to change a carton material for Aquafresh to a fully green substitute, reducing 30 tonnes of material and 250 tonnes of CO2 Use materials and energy from For paper-based packaging renewable sources we increasingly buy materials made from recovered fibres. Improve the environmental Sustainability is a key impact of element in the selection and the total GSK packaging supply continued management of
PRINCIPLE
Remove
Reuse
Recycle
Renew
Reward
Respect
chain, meeting the needs of patients, customers and consumers at lower cost Use responsible suppliers
dealers. It frames a vital part of the purchasing guidelines and general ways of working. We include social and environmental requirements as piece of our dealer selection method and we are creating more in depth basis for precise factors
8. Critical Analysis
GlaxoSmithKline is the leader in CSR activities and a key player in the area of global health. The companies is spending substantial amount of its funds into R&D and other promotional activities. The major source of death in 2011 has been non-communicable diseases. Such diseases are more common in rural areas where people do not have access to medicines. Around 14 million people die every year from communicable diseases, and in excess of 2 billion people lack facilities to medicines for treatable health conditions. To address this problem, GSK has expanded the availability of its medicines and vaccines and made it easily affordable to the common man. This has wiped out the no money-no cure attitude. In low income countries the major chunk of death relates to children under the age of 14. The major portion of the deaths can be prevented or delayed through effective use of medicines. To address this problem, GSK reinvests 20% of its profits from medicines and Consumer Healthcare products into projects that improve local healthcare infrastructure. Through its trust GRAMIN AAROGYA VIKAS SANSTHA (GAVS), GSK operates a Balwadi (pre-school) under than five year age group children. This is a 2015 millennium development goal towards achieving compulsory primary education. GSK has also set up Vocational Training Centers were over 700 youths have been trained and a number of them are gainfully employed. GSK has also started a Shelter home for children under the age of 16 to prevent children migrating to bigger cities in need of work and through its Mid-day-Meal project it has reduced hunger to a great extent. GSK is providing environmental friendly products by reducing its carbon footprint and achieving 20% reduction in use of water. GSK recycles the waste to manufacture bottles. In order to reduce the impact on environment, GSK is set to source 50% of its paper requirement from sustainable sources by 2015. GSK achieves sustainable packaging strategy through reducing carbon footprint, removing materials with sustainability issues, recycling materials in packaging, using renewable sources, rewarding customers at low cost and respecting responsible suppliers. GSK is increasing its investments and proposals to reduce the consumption of energy. GSK provides a healthy workplace and promotes a healthy lifestyle for employees and their families. GSK protects human rights and also takes care of its internal customers by providing them with work-life balance. Through such initiatives GSK has won the award for the most desirable place to work.
Bibliography
1. GSK,2010, Corporate Responsibility Report, pg 149-195 www.gsk.com/responsibility/downloads/GSK-CR-2010-Report.pdf 2. GSK,2011, Do More Feel Better Live Longer, Corporate Responsibility Report,pg 84100 http://www.gsk.com/responsibility/downloads/GSK-CR-2011-Report.pdf#our-planet 3. PR Newswire,2011,United Business Media, GlaxoSmithKline Wins Environmental Stewardship Award http:// GlaxoSmithKline%20Wins%20Environmental%20Stewardship%20Award%20-%20NAPERVILLE,%20Ill.,%20Feb.%2024,%202011%20%20PRNewswire%20%20-.htm 4. GSK,2007, Corporate-Ruralprojects http://www.gsk-india.com/corporate-ruralprojects.htm 5. World Health Organisation Report 2012 www.who.int/mediacentre/factsheets/fs310/en/index.html 6. India Current Affairs Report, 2011, The World health Statistics-2011 http://indiacurrentaffairs.org/the-top-10-causes-of-death-world-health-statistics-2011/ 7. India International Researcher Volume No.1 Issue No. 2 June 2012 http://iresearcher.org/1-9%20%202-8%20Final%20paper%20Moussa%20Berete.pdf 8. CSR News Europe,2003,GlaxoSmithKline named a top employer for promoting healthy lifestyle article, 26 http://www.csrnewseurope.com/article/26 9. GSK Public Statement, Gsk marketing practices,July 2011 http://www.gsk.com/policies/GSK-marketing-practices.pdf