Pharma companies and Corporate Social Responsibility
One
of the main challenges for pharma companies is how to balance the needs of the various stakeholders involved. Employees, shareholders and patients all have different needs. A particularly tricky problem is pricing: what we in the rich countries can afford is very often too expensive for poorer countries.
I was interested to read what Andrew Witty, the boss of GlaxoSmithKline, says in the Guardian - Glaxo offers free access to potential malaria cures. His company is is putting 13,500 compounds that might cure malaria into the public domain.
According to the article,
Andrew Witty, the British boss of Glaxo-SmithKline, will say in a major speech that multinational drug companies have to balance social responsibility alongside the need to make profits for their shareholders. There is, he will say, an “imperative to earn the trust of society, not just by meeting expectations but by exceeding them”.
This is a very welcome move. Now, it’s to be hoped that other pharma companies will follow suit. It’s also to be hoped that GSK and the other companies do even more to benefit people in poorer countries who are suffering from other illnesses.
Responding to catastrophe
We have all seen the tragic consequences of the earthquake in Haiti. The people there are suffering. My question is: how should multi-nationals (MNOs) respond to such events?
Certainly, if the catastrophe takes place in the home country of the organization, one expects that they will do something – allow employees to go and help, offer resources, money, etc. But what if it is not the home country? What should those businesses that make money in Haiti or through operations in Haiti do?
Of course, the managers of MNOs with operations in Haiti should be asking themselves if they are paying the people there a living wage. But in any case, they should be sending as much help as possible. It’s all part of Corporate Social Responsibility.
On a related note, I wonder if the bankers who are pocketing huge bonuses are going to contribute to the relief efforts instead of buying themselves a new Ferrari…
