corporate approaches to csr stakeholder engagement in the pharmaceutical industry
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Corporate Approaches to CSR Stakeholder Engagement in the Pharmaceutical Industry. University of Applied Sciences. Professor Dr. Linda O‘Riordan. Agenda. Introduction The Research Gap Research Design Research Findings 4.1 CSR Practices 4.2 Anglo-German Comparison - PowerPoint PPT PresentationTRANSCRIPT
University of Applied Sciences
Corporate Approaches to CSR Stakeholder Engagement
in the Pharmaceutical Industry
University of Applied Sciences
Professor Dr. Linda O‘Riordan
2
Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings 4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
3
“… the responsibility of an organisation for its decisions and activities, and state of being answerable to its governing bodies, legal authorities, and more broadly its other stakeholders regarding these decisions and activities”
(ISO 26000, 2010:2)
(Re)considering the Relationship and Impact between
Business andSociety…
(Source: Deresky, 2000; Zadek et al, 2001; Donaldson and O’Toole, 2007:21-36).
This thou must always bear in mind, what is the nature of the whole… (Marcus Aurelius 180)
Introduction The Management Challenge
Definition of Accountability …
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1776: Adam Smith in “The Wealth of Nations”
Concept of the invisible hand:… unintentional promotion of public interest by business pursuing its own interests….
1970: Milton Friedman
Business objective “…to make as much money as possible while conforming to basic rules of the society, both those embodied in law and those embodied in ethical custom…”
1984: Edward Freeman
Stakeholder Theory:… a stakeholder view of strategy which suggests combining business management and ethics(i.e. morals & valuesin managing an organisation) …
= > Practical Challenge for CSR Decision-Makers:
What is Responsible Management?
Introduction The Management Challenge
Various Varying Perspectives…
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What is “the right” thing to do?
How to balance competing Stakeholder Interests?
The issue of Globalisation and Cultural factors?
Who is responsible when Governments are corrupt and/or do not protect their citizens?
Managing in Challenging Operating Environments increases the complexity…
Introduction CSR Stakeholder Engagement in the Pharmaceutical Industry
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Who is responsble to whom and for what ?
The CSR debate is triggeringbroad questions regarding:
• Who in society controls corporations…?• To whom are corporations accountable for their actions…?
=> How to balance the triple bottom-line goals sustainably?
IntroductionProblem Definition
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Who is responsble to whom and for what ?
The CSR debate is triggeringbroad questions regarding:
• Who in society controls corporations…?• To whom are corporations accountable for their actions…?
=> How to balance the triple bottom-line goals sustainably?
IntroductionProblem Definition
Significant lack of theory and empirical
data on CSR Stakeholder Management…
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings 4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
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… Stakeholder engagement and its associated contextual factors have been under-researched for the pharmaceutical sector....
1. CSR Practices:• Terminology• Stakeholder Pioritisation• Communication• Projects/Themes• Organisation• Expectations
2. Anglo-German Comparison
3. Influencing Factors
=> Research Questions…
The Research Gap CSR Practices
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings 4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
11
PERSPECTIVES ONCORPORATE SOCIAL RESPONSIBILITY
Corporate Approaches to Stakeholder Engagement in the Pharmaceutical Industry in the UK and Germany
LINDA O’RIORDAN
PhD
School of Management, Bradford University, UK
2010
Research Design Introduction
IFSAM 2012 Professor Dr. Linda O‘Riordan
• Research Objective:Exploratory research to identify and describe CSR stakeholder engagement practices, to explain the factors that influence them, and to disclose whether differences exist between the approaches in the UK and Germany
• Research Question 1: What CSR stakeholder engagement practices do pharmaceutical companies undertake?
• Research Question 2: What similarities and differences exist in pharmaceutical companies’ stakeholder engagement practices in the UK and Germany?
• Research Question 3: What factors influence the practices and what factors explain the differences in the CSR stakeholder engagement practices of pharmaceutical companies targeting stakeholders in the UK and Germany?
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Research Design Research Questions
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Examines the CSR practices and perceptions of senior executives within major pharmaceutical companies in the UK and Germany
Employs a case-study strategy using mixed methodologies
Qualitative, exploratory research obtained via multiple research methods
Data collected between 2005 and 2010 via four methods:1. Documentary analysis2. Telephone survey3. Observation4. In-depth interviews
Research Design Methodology
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Data collection and analysis via six codes:
1. Terminology2. Stakeholders3. Communication4. Organisation/Governance5. Projects6. Expectations
Data employed to examine and revise a previously published explanatory framework which conceptualises the management steps involved in CSR stakeholder engagement
The resultant revised explanatory framework is the main contribution of this paper
Research DesignData Collection
IFSAM 2012 Professor Dr. Linda O‘Riordan
The Original Explanatory Framework
Source: O’Riordan, 2006; O’Riordan and Fairbrass, 2008)
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Stakeholders
ManagementResponse Event
Context
CSRStakeholder Engagement
Practices
Values Alternatives Strategy Implement/Control Output
Phase 1: CSR Strategy Development Phase 2: Implementation
Research DesignConceptualising CSR Practice
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Source: O‘Riordan, 2010:352
Results
Credibility
Company
Suppliers
OthersCustomers
Government
SocietyContext
Choice
Calculation
Sustainable Relationships
EquitableReciprocation
Business•Innovation•Loyalty•Image
Society•Development•Progress
Communication
IFSAM 2012 Professor Dr. Linda O‘Riordan
Research DesignConceptualising CSR Practice
The Revised Explanatory Framework
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Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings 4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
1. Terminology
– Multiple & diverse use of labels – CSR most often utilised– Employment of individualised terms
2. Stakeholders– Top Rankings: Customers (Physicians/Patients) & Employees– Lowest Ranking: NGOs– Task-Specific approach– Stakeholder theory approach confirmed in CSR conceptualisation
3. Communication– Stakeholder concept not always explicitly communicated– Highly visible & explicit communication of CSR activities
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Research FindingsCSR Practices
IFSAM 2012 Professor Dr. Linda O‘Riordan
RQ 1: Characterise CSR Stakeholder Engagement via 6 Codes (I)
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Research FindingsCSR Practices
IFSAM 2012 Professor Dr. Linda O‘Riordan
Terminology
CSR
Other
CC
CR
SR
Sustainability
Sum2520151050
1219%
58%
1117%
58%
711%
2438%
Overview of All Terminology Used to Describe Activities
4. Organisation/Governance
– CSR concept spans a broad range of business functions – Rarely the responsibility of one dedicated department– Multi-functional networks of designated individuals & ad-hoc project groups– Centralised & Decentralised management appraoch
5. Projects– Philanthropic Projects– Integrative CSR principles– Diverse range of themes & Activities
6. Expectations– CSR perceived as a cost to the business– Measurement challenges
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Research FindingsCSR Practices
IFSAM 2012 Professor Dr. Linda O‘Riordan
RQ 1: Characterise CSR Stakeholder Engagement via 6 Codes (I)
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Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings 4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
• Broad similarity in practices due to centralised company
principles and international guidelines
• Some national differences revealed:– De-centralised national practices at affiliate level– More environmental regulation & CEO involvement in Germany– More use of the terms ‚CSR‘ and ‚Sustainability‘ in Germany– Higher standardisation in terminology in the UK– Differences in perceptions on the meaining of ‚value‘
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Research FindingsAnglo-German Comparison
IFSAM 2012 Professor Dr. Linda O‘Riordan
RQ 2: Stakeholder Engagement in the UK and Germany
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Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings 4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
External (Contextual) Factors– PEST Factors– Stakeholder Pressure– Media– Industry/Competitor Behaviour– Business Role/Activity
• Internal (Company) Factors– Leadership Mindset / Personal (moral ) Interest– Company Profile (Size, origin, type, scope of activity, success)– Business Aims– Internal Stage of CSR Development
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Research FindingsInfluencing Factors
IFSAM 2012 Professor Dr. Linda O‘Riordan
RQ 3: Factors Influencing Stakeholder Engagement
= > Company Culture => Vision & Mission => CSR Approach
Evidence from the Data : • The CSR concepts and the resulting CSR stakeholder engagement practices
with respect to the six codes adopted by the selected sample are diverse, inter-active, and dynamic.
Inference :• As stakeholders’ expectations increase, CSR practice is influenced by
internal and external contextual factors. As a result, CSR stakeholder engagement responses are still evolving.
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Research Findings Summary (I)
IFSAM 2012 Professor Dr. Linda O‘Riordan
Evidence from the Data : • Pharmaceutical industry Stakeholders’ negative perceptions• Mindset Misalignment
– Personal (agent) and company (principle) interests/goals– Stated company values and actual CSR policies
• Management uncertainty due to:– Operational complexity – Stakeholder (negative) stance/ unpredictable reaction – Unclear:
• CSR scope/definition• Cost/benefits measurement• Management process
Inference :• Key aspects of the current CSR stakeholder management approach (mindset) could
be improved...
26IFSAM 2012 Professor Dr. Linda O‘Riordan
Research Findings Summary (II)
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Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings 4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
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Fresh empirical data collected over 5 years which illuminates how the pharmaceutical sector in the UK and Germany manages CSR
Advances past scholarship by filling many of the identified previous gaps
Explores similarities and differences amongst firms in two operating environments
Provides some explanation for the patterns observed by indicating the likely determining factors
Identifies where alteration is required to the existing framework
This research may help to advance this industry’s overall accountability in society
Summary of ResearchContribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
Proposal for Further Research:
• This evidence will be employed to test and improve a conceptual framework which was developed in separate research
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Research ContributionNext Steps
IFSAM 2012 Professor Dr. Linda O‘Riordan
Stakeholders
ManagementResponse Event
Context
CSRStakeholder Engagement
Practices
Values Alternatives Strategy Implement/Control Output
Phase 1: CSR Strategy Development Phase 2: Implementation
Results
Credibility
Company
Suppliers
OthersCustomers
Government
SocietyContext
Choice
Calculation
Sustainable Relationships
EquitableReciprocation
Business•Innovation•Loyalty•Image
Society•Development•Progress
Communication
30
Agenda
1. Introduction
2. The Research Gap
3. Research Design
4. Research Findings on CSR Practices4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
5. Summary of Research Contribution
IFSAM 2012 Professor Dr. Linda O‘Riordan
