What to be edited in this paper according to the correction of the professor:

1. The document needs to be reorganized in such a way that the same action should be used for every company in order to facilitate the comparison. EXAMPLE: environmental aspect as a title and the subtitles would be the five companies and what did each do regarding the environment, moreover each action must be discussed whether it was done or not by each company.

Please I need the environment and the social responsibility sections to be the most developed and the rest of the actions will come after.

2. The section of comparison between the companies should be able to demonstrate the similarities and differences between the actions done or not by the five companies. And the subtitles of this section must be the actions themselves taken from the titles above.
3. Organize the section of the companies in such a way to group them under a common title and to be able to compare and contrast what is done.
4. The table at the end must not just state the same information in the text but it has to be done in a way to facilitate comparison taken from the section of comparison. That is organize the table and put the pharmacies in the row and the actions in the column and fill in the squares of what has been done concerning each action relative to each company and state what hasn’t been done if this is the case.
5. Please refer to the comments in the text below and add any additional needed bibliography.

 

 

 

 

TABLE OF CONTENTS

LIST OF TABLES ………………………………………………………………….4

LIST OF ABBREVIATIONS AND ACRONYMS ………………………………5

ABSTRACT …………………………………………………………………………6

CHAPTER ONE: INTRODUCTION AND BACKGROUND …………………..7

1. INTRODUCTION ………………………………………………………………7
2. RESEARCH AIM ………………………………………………………………..7
3. METHODOLOGY AND STRUCTURE OF THE RESEARCH ………………..8

CHAPTER TWO: CSR PROGRAMS AMONG CANADIAN PHARMACEUTICAL COMPANIES …………………………………………….9

1. INTRODUCTION …………………………………………………………………9

2. CSR IN THE CANADIAN PHARMACEUTICAL INDUSTRY…………………………………………….……………………………9

3. CSR PROGRAMS AMONG FIVE CHOSEN PHARMACEUTICAL COMPANIES .…………………………………………………………………….10

3.1 Pfizer Canada Inc. …………………………………………………………….10

3.1.1 Relations with employees ……………………………………………….11

3.2 Sanofi …………………………………………………………………………17

3.2.1 Creating awareness for diseases and prevention ………………………..18

3.2.2 Public-private partnerships ……………………………………………..18

3.2.3 Supporting foundations and charity walks and cycling …………………19

3.2.4 Preserving the environment ……………………………………………..19

3.3 Apotex ………………………………………………………………………..20

3.3.1 Increasing accessibility for medicines through public-private

partnership ………………………………………………………………21

3.3.2 Charitable foundation …………………………………………………..21

3.3.3 Donations ……………………………………………………………….21

3.3.4 Environmental conservation ……………………………………………22

3.4 GlaxoSmithKline (GSK) ……………………………………………………..22

3.4.1 Donations and increasing accessibility for medicines through

public–private partnerships …………………………………………….23

3.4.2 Preserving the environment ……………………………………………24

3.5 Johnson and Johnson …………………………………………………………25

3.5.1 Donations and philanthropic programs …………………………………26

3.5.2 Environmental conservations ……………………………………….….26

CHAPTER THREE: ANALYSIS AND COMPARISON OF THE CSR ACTIONS USED BY THE PHARMACEUTICAL COMPANIES ………………………………………………………………………………………28

1. INTRODUCTION ………………………………………………………………28
2. DONATION PROGRAMS ……………………………………………………..28

………………………….…………………………………………………………..31

6. OTHERS …………………………………………………………………………31

BIBLIOGRAPHY …………………………………………………………………36

LIST OF TABLES

 

Table 1   CSR activities related to conserve the environment that the five

companies engage in ………………………………………………………32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIST OF ABBREVIATIONS AND ACRONYMS

ACT                Advance coronary treatment

AIDS               Acquired immune deficiency syndrome

CDCAC          Canadian democracy and corporate accountability commission

CSR                Corporate social responsibility

EHS                Environment health and safety

ETB                Edelman trust barometer

GHG               Greenhouse gas

GHFP              Global health fellows programs

GSK                GlaxoSmithKline

HSE                 Health safety and environment

IPTP                Intermittent preventive therapy in pregnant women

MMV              Medicines for malaria venture

NGOs              Non-governmental organizations

PATH              Program for appropriate technology in health

PPG                 Pfizer pharmaceuticals group’s

PPP                  Public – private partnership

R&D                Research and Development

TDR                 Tropical diseases research

UNICEF           United nations children’s fund

WHO                World health organization

YMCA              Young men’s Christian association

 

ABSTRACT

The number of business organizations embracing the concept of corporate social responsibility has been on the rise in the last one decade, though corporations in some countries such as Canada have not yet fully adopted the culture of reporting their environmental and social impact on the society and reacting accordingly. The purpose of this research paper is to analyze the various actions through which pharmaceutical companies in Canada practice CSR. In this case, five companies namely, Pfizer Canada Inc., Sanofi, Apotex, GlaxoSmithKline (GSK), and Johnson and Johnson have been chosen as case studies. It emerges that though there exist some differences with respect to the various practices of CSR the above highlighted companies have adopted, the main actions through which they practice CSR include: having donation programs, formation of charitable foundations, public–private partnerships, as well as through environment conservation and promoting sustainability. Other CSR actions adopted by some of these companies include: investing in research and development (R&D); creating awareness for diseases and prevention.

 

CHAPTER I: INTRODUCTION AND BACKGROUND INFORMATION

1. INTRODUCTION

The number of business organizations reporting their environmental and social impact on the society and reacting accordingly has been on the rise in the last one decade. As Korschun et al. (2014) suggest, emergence of corporate social responsibility (CSR) is a blueprint for the future and a new highway that corporations have to follow when carrying out business in the modern world that has witnessed the change of a wide range of accepted norms of conduct. So far, there is no universally accepted classification of corporate social responsibility, an aspect that can be attributed to the fact that CSR is still an emergent topic. Nevertheless, there seems to be a number of elements that appear in most of the classifications of CSR as provided in various sources (Juščius and Snieška, 2015).

Lee and Kotler (2013) describe CSR as sustainable development, which encompass the need for publicly held business organizations to address and heed to concerns of not only the shareholders, but also the various stakeholders affected by the corporation’s behavior. To be precise, these stakeholders include customers, employees, suppliers, non-governmental organizations (NGOs), governments, society, and the environment to mention, but just a few. In line with this definition, the Industry Canada defines CSR as the way in which firms integrate social, economic and environmental concerns in their culture, values, decision making, strategy and operations in an accountable and transparent manner, thereby establishing better practices within a firm, create wealth, as well as improve the society (Industry Canada, 2006).

2. RESEARCH AIM

According to Lee and Kotler (2013), conducting business in a responsible manner and sharing CSR reports is currently part of doing business on a global scale. In this regard, the purpose of this research paper is to explore how leading Canadian pharmaceutical companies practice and share corporate social responsibility. Five companies namely, Pfizer Canada Inc., Sanofi, Apotex, GlaxoSmithKline (GSK), and Johnson and Johnson have been chosen as case studies.

3. METHODOLOGY AND STRUCTURE OF THE RESEARCH PAPER

This is a case study paper where information included in this study is retrieved from secondary sources of data such as peer reviewed journals, text-books, organizational reports like CSR reports, and company websites. Some of the secondary sources of data such as journals and textbooks have been sourced from leading databases such as Google Scholar, Ebscohost, and Proquest among others.

This case study comprises three chapters where the first chapter has presented a general introduction about CSR. The second chapter provides an overview of the Canadian pharmaceutical industry. Under this section, the five companies highlighted above are critically reviewed in terms of how they conduct business in a responsible manner or how they practice CSR. The third chapter presents comparison between how the above-stated pharmaceutical companies practice corporate social responsibility and the paper concludes by discussing the general actions through which companies in the pharmaceutical industry report CSR.

CHAPTER II: CSR PROGRAMS AMONG CANADIAN             PHARMACEUTICAL COMPANIES

1. INTRODUCTION

According to Juščius and Snieška (2015), all the leading pharmaceutical companies have some form of corporate social responsibility. The CSR programs within these corporates contain many components such as donation, partnering with local and international NGOs to build medical infrastructure and distribute medicine among others. In this study paper, the main focus is on the CSR programs that leading pharmaceutical companies operating and producing in Canada currently have. The research uses five leading pharmaceutical companies namely, Pfizer Canada Inc., Sanofi, Apotex, GlaxoSmithKline (GSK), and Johnson and Johnson as case studies as described in this chapter.

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2. CSR IN THE CANADIAN PHARMACEUTICAL INDUSTRY

There is a major constraint in information on CSR practices and the overall business system in Canada. Based on the analysis of the extant literature on this topic, it has been assumed that the reason for the lack of formalized CSR regulations in the country is attributable to the high level of social capital. As Krumwiede et al. (2012) note, there is a higher level of public trust that business organizations act in an ethical manner and consider concerns of the society, not just their financial bottom line.

This assertion is reinforced by findings made in the 2011 study conducted by Edelman Trust Barometer (ETB), which sought to establish the level of citizens’ trust in business, media and government in 23 countries. The 2011 Edelman Trust Barometer report rated Canadian companies among the most trusted corporations across the globe by Canadians and citizens of other countries (Edelman Trust Barometer, 2011).Bottom of Form

This high level of trust, according to El Ghoul et al. (2011), may have made Canadian corporations less concerned about their relations with external stakeholders; hence focusing more in building trust and better relations with their employees, despite the strong regulatory environment evident in most of the European countries. Canada is reported not to have followed the European trend by enacting any form of CSR reporting framework. Furthermore, voluntary acceptance of CSR codes is not popular in the Canadian business environment; in spite of certain industries with a larger social and environmental impact such as forestry, mining, energy, and chemicals, which are more vulnerable to public controversy, developing their specific voluntary codes (Krumwiede et al., 2012).

Due to the slow adoption of voluntary codes, the Conference Board of Canada together with the Canadian Democracy and Corporate Accountability Commission (CDCAC) have stated a number of recommendations that, if strictly followed would make CSR engagement a mandatory practice for corporations operating in the country. For example, CDCAC proposes expansion of the fiduciary duty of corporations to encompass consideration of the business’ impact on non-shareholders, environment, employees, customers, and communities (Hopkins, 2012; Brammer et al., 2012). However, due to the scope of this paper, further details of the recommendations put forth by CDCAC are not covered.

3. CSR PROGRAMS AMONG THE FIVE CHOSEN PHARMACEUTICAL COMPANIES

     3.1 Pfizer Canada Inc.

Pfizer Inc. is among the largest pharmaceutical companies across the globe (Waring et al., 2015). The company was formed in 1849 and its global headquarters are situated in New York, U.S.A.  Pfizer started as a chemical manufacturing company that produces chemical products such as cream of tartar, iodine, borax, camphor, and citric acid among others. Over sometime, the company’s focused on large scale production of citric acid, which is used in the manufacturing of penicillin, an antibiotic drug that is in high demand, particularly during the World War II (Kola and Landis, 2004).

According to Brammer et al. (2012), large scale production of citric acid is the main product that enabled the company to rapidly expand in the 1940s. However, since 1950 and the years that followed, Pfizer’s enormous growth is attributed to the discovery and mass production of Teramycin. The discovery of Teramycin has opened doors for the company to become a leading research based pharmaceutical company and vitamins manufacturer (Pfizer Inc., 2002). Currently, Pfizer operates all over the globe and its portfolio includes a wide range of medicines and vaccines for a wide array of conditions such as cardiovascular and metabolic diseases, oncology, neuroscience, as well as immunology and inflammation (Kola and Landis, 2004).

Pfizer Canada Inc. has its head office in Kirkland, Quebec and it produces a wide range of medicines and vaccines for a wide array illnesses and conditions. The Pfizer Pharmaceuticals Group’s (PPG) complete product portfolio encompasses five of the world’s 20 top selling medicines namely, CELEBREX, ARICEPT, LIPITOR, NORVASC, SPIRIVA, ZITHROMAX, and VIAGRA (Waring et al., 2015).

 3.1.1 Relations with the employees

Since 2003, Pfizer Canada’s pharmaceutical division has been ranked among the top Canada’s companies that are concerned with the affairs of the employees. In a survey report release by The Globe and Mail newspaper and is published in the Business Magazine in 2003, Pfizer Canada’s pharmaceutical division is ranked number 15 among the « Best 50 Companies to work for in Canada » (The corporate social responsibility Newswire, 2003).

Findings made in this study are based on the opinions of the employees, which reduces chances of compromising reliability and credibility of the published results. According to The corporate social responsibility Newswire (2003), the survey measures employee sentiments, people practices, organization employment, as well as the organizations’ leadership team. The survey also evaluates the employees’ perceptions towards the organization’s leadership team, relationships among the employees, as well as their opportunities for advancement.

According to Waring et al. (2015), the company recognizes that people are the cornerstone of the company’s success; hence lay special focus towards improving their welfare. With respect to relations with employees, the company sets itself from its business rivals in a number of ways. The report shows that the company’s management believes that providing employees with a conductive work environment improves the overall performance of the employees. As a result, it has created places of work that suit diverse individual needs (Waring et al., 2015).

Other than providing employees with work environment that meets diverse individual needs, the company also provides a wide range of services to the employees such as daycare that is located within the premises; a subsidized restaurant with take-home meals; and a flexible benefits package that makes it possible for employees to develop their own plans that can meet their needs (Montréalgazette.com, 2014). Other services the company provides include an on-site YMCA supervised fitness center and a fitness subsidy; a maternity pay top-up; onsite banking; dry cleaning; a comprehensive wellness program; as well as an on-site doctor among many other benefits (Montréalgazette.com, 2014).

3.1.2 Research and Development (R&D)

Engaging in research and development in an effort to improve the welfare of the Canadian and the global community is another important mechanism through which the company has been practicing CSR. The company has heavily invested in research and development in order to develop the urgently needed medicines. For example, Pfizer Canada is currently ranked among the top 15 investors in the Canadian research and development, where it has invests in excess of $132 million on annual basis (Niosi et Bas, 2013; Research Infosource, 2013).

The company’s R&D is not limited to Canada and other developed countries only. For example, the company has heavily invested in R&D in an effort to eliminate some tropical diseases such as malaria, a devastating disease that leads to about one million deaths every year and 3.3 billion people are reported to be at a risk of contracting it. The main focus of the company has been on the Sub-Saharan Africa, where the disease if more prevalent. As a result, Pfizer has established a number of research centers in the region, for instance in Dakar, so as to manufacture and distribute effective malaria medicines on the continent (Moynihan and  Cassels, 2006).

In 2009, the company partnered with World Health Organization’s (WHO) and its Special Programme for Research in Tropical Diseases (WHO/TDR) to research and develop medicines for tropical diseases that have been neglected for long. The company also signed an agreement with Medicines for Malaria Venture (MMV) to allow MMV use Pfizer’s vast chemical compound library to test Intermittent Preventive Therapy in pregnant women (IPTP). The company has also partnered with other NGOs such as the Clinton Global Initiative to prevent spread of malaria, as well as promote access and effective treatment of this deadly disease among other sicknesses (Pfizer Inc. 2015c).

3.1.3 Charity/ Philanthropy/ Drug donation programs

The company has an international volunteer initiative known as The Global Health Fellows Program (GHFP) which was instituted in 2003. Through this program, more than 300 employees of Pfizer Canada have participated in this program and worked in concert with NGOs in the developing countries to provide their expertise in their area of specialist (Pfizer Inc., 2015a). Through this program, the company has partnered with various NGOs such as Project Hope and Save the Children and the company’s top management urges employees to work in collaboration with these NGOs so as to positively impact the designated populations (Pfizer Inc., 2015a).

In addition to partnering with other NGOs, the company has implemented a medicine donation program to Asia and Africa with the sole aim of alleviating the spread of certain diseases such as trachoma. According to (Research Infosource, 2013), Pfizer is also working closely with the World Health Organization’s (WHO) Alliance for the Global Elimination of Blinding Trachoma and the International Trachoma Initiative in order to eliminate this debilitating disease by 2020. The company has been providing Zithromax and financial support to these initiatives, where available statistics show that by 2014, Pfizer had donated more than 225 million Zithromax treatments in 19 countries (Information Trachoma Initiative, 2013).

The company has a special department that deals with matters relating to corporate social responsibility, known as Pfizer’s Corporate Responsibility department, and a foundation called Pfizer Foundation. However, it is crucial to note that this is a global pharmaceutical company; hence its CSR operations may not be restricted to Canada and the USA where it is dominant. It is also worth noting that it may not be possible to differentiate CSR activities of Pfizer Canada Inc from the main company, Pfizer Inc, because the employees work as one when participating in global initiatives (Research Infosource, 2013).

Pfizer Canada charity work is characterized in a number of ways among them being a member of IMAGINE, a Canada’s national program that promotes corporate giving, community support, and volunteering (Pfizer Inc., 2015b). Since 2001, the company has been ranked among the top 10 corporate charitable donors. For example, in 2001, the company, through the Pfizer Canada’s Community Investment Program, invested in excess of $9 million in 600 organizations and projects across the country (Niosi et  Bas, 2013).

3.1.4 Grants and contributions                   

Offering grants is another common mechanism that Pfizer Canada applies as part of CSR. So far, the company has made several grants, contributions and other forms of payments as outlined in the company’s website (Pfizer Canada Inc, 2015d). These donations, contributions, and other forma of payments are made through The Pfizer Foundation and Pfizer’s Corporate Responsibility department. The company funds research studies that focus in health related issues from a wide range of areas such as cardiovascular risk, oncology and infectious disease among others. Pfizer provides support for independently run healthcare initiatives through medical education grants and online resources.

In Canada, the company has provided grants and made contributions in a number of projects in partnership with other organizations. In 2014, for example, the company launched a pilot project aimed at availing EpiPen and EpiPen Jr. (epinephrine) Auto-Injectors to all food court and restaurants in Hamilton, Ontario. During the ground breaking ceremony, the company donated EpiPen® auto-injectors to Jackson Square mall as a precaution to food court customers who may need prompt help during an emergency treatment of anaphylactic reactions associated with food allergies. The primary goal of donating these kits was to improve health safety for persons who live with life-threatening allergies and individuals who may face emergency situations requiring immediate response (Pfizer Canada Inc, 2015d).

3.1.5 Environmental conservation

With the current global threat of climate change, Pfizer has adopted numerous measures in an effort to help mitigate the problem. The company has an Energy and Climate Change Program that seeks to reduce the cost and operational restrictions emanating from carbon-constrained environment; and minimize the company’s contribution to greenhouse gas (GHG) emissions. As a result, the company has been focusing on how to promote energy efficiency, reduce water usage, preserve the natural resources, introduce greener workplaces and offer better product packaging. All these measures are aimed at reducing company’s contribution to greenhouse gas (GHG) emissions, which are the leading cause of global warming (Pfizer Canada Inc, 2014).

The most recent achievements that the company has made towards environmental conservation and preserve the natural resources include meeting the first GHG reduction goal by lowering emissions by more than 35% adjusted to revenues from 2000 to 2007; as well as achieving the second GHG reduction goal which is decreasing emissions by at least 20% on an absolute basis (2008-2012). The current aim of the company is to reduce emissions by another 20% by 2020 from the 2012 baseline (Pfizer, 2014).

Pfizer has also adopted a number of measures in an effort to reduce the amount of waste the company releases in the environment among them expanding the local municipal waste recycling plants in various parts of the world. For example, in 2014, the company agreed to spend $410,000 to expand the Barceloneta municipal recycling program. Pfizer agreed to purchase new recycling containers, vehicles and equipment necessary for the enhancement of the Barceloneta recycling program. The company has also introduced a leak detection initiative in an effort to prevent air pollution caused by methylene chloride gas leaking from the manufacturing plants. Currently, most of the manufacturing plants in different parts of the world have been accredited by the local environmental agencies. In the USA, for example, the company has fully complied with the federal regulations as outlined in the Clean Air Act (The U. S. Environmental Protection Agency, 2014).

Another major milestone that the company has adopted towards environmental conservation and promoting sustainable development is engaging in research to devise innovative ways of minimizing the company’s impact on the environment in the course of manufacturing pharmaceuticals. The company is continuously “greening” the manufacturing process. In order to achieve this, Pfizer has leveraged its Green Chemistry and Biotechnology program in order to advance scientific innovation. This is aimed at developing processes that are more environmentally sound, sustainable, and cost effective. Pfizer’s Green Chemistry initiative is based on the 12 Principles of Green Chemistry as provided by John Warner and Paul Anastas, which focus on using environmentally preferable chemicals, conserving energy, as well as eliminating wastes (Pfizer, 2015d).

Finally, the company is focused towards conserving the environment and the available natural resources. For example, in most of the sites where the company operates in, Pfizer undertakes and supports environmental projects that preserve wildlife, restore land, and help conserve natural resources. Overall, the company targets to reduce its overall waste footprint, prevent groundwater and soil contamination, perform due diligence on sites undergoing transaction, and implement arduous waste management practices. In this regard, the company has made notable actions such as involving the community through outreach programs, conserving natural resources through waste and water recycling, and adopting energy efficient projects (Pfizer, 2015e).

3.2 Sanofi

Sanofi is a multinational pharmaceutical company whose headquarters is located in Paris, France, though it has affiliate companies in other various countries. The company was established in 1973 as a subsidiary of the French Oil Company, which was later acquired by Total. Sanofi later merged with Synthelabo in 1999, after which the company started emphasizing on pharmaceutical products (Canadian Newspaper Services International, 2006).Bottom of Form

The merger between Sanofi and Aventis took place in 2004 after which the company was renamed as Sanofi-Aventis. In the same year, Sanofi-Synthelabo made an offer to take over Aventis, which Aventis rejected. The companies settled the merge after three months when Sanofi-Synthelabo presented a friendly offer. The suffix Aventis was dropped in an annual general meeting on May 2011, to enable easy pronunciation of the name. The company has various sister companies in Canada such as Sanofi Canada, Sanofi Pasteur, Genzyme, Sanofi consumer Health, and Merial (Bucknell, 2010).

Sanofi conducts research and development for pharmaceutical drugs, manufactures, and markets its products. The company’s production of drugs covers seven core therapeutic sectors: diabetes, oncology, cardiovascular, thrombosis, internal medicine, vaccines, and central nervous system. Sanofi deals mainly with prescription market, although it also produces over-the-counter drugs. Some of its medical products available in the market include Clopidogrel (used to treat atherothrombosis); Human Insulin for the two types of diabetes mellitus, Docetaxel (used to treat prostate, lung and breast cancer, Amoxicillin, Codeine for relief of Chronic pain) and over the counter medicines such as Paracetamol (Bucknell, 2010). The company practices CSR in a wide range of ways as described below.

3.2.1 Creating awareness for diseases and prevention

Creating awareness for diseases and prevention is one of the main forms of CSR that Sanofi Canada heavily relies on. The company works to ensure that the local and the international community have access to information regarding diseases affecting them or potential diseases (Sanofi.ca, 2014). This is achieved through various programs such as a high school program runs together with Advanced Coronary Treatment (ACT) Foundation, where high school students across Canada are trained to save lives. The program also ensures that all graduates acquire this knowledge and encourages youth to live a healthy lifestyle. Sanofi also organizes biotechnology competitions to encourage interested high school students to pursue careers in bio-economy (Sanofi, 2015).

3.2.2 Public–private partnerships

Sanofi Canada collaborates with international organizations such as The United Nations Children’s Fund (UNICEF) and Health Partners International of Canada to respond to various humanitarian needs in the developing countries. For instance, in 2011, the company through the government of Canada donated 2700 vials of an antibiotic to a children hospital in Afghanistan. Sanofi Canada also participates in humanitarian projects in East African countries such as Kenya, Djibouti and Ethiopia among other countries that experiencing droughts in the sub-Saharan region (Sanofi, 2014; Sanofi.ca, 2014).

3.2.3 Supporting foundations and charity walks and cycling

Sanofi Canada also supports foundations in Canada and in other countries. The company regularly donates to Centrade, an organization that works toward eradication of poverty in the United States. It also partners with other foundations such as Tim and Allerjct Horton Children’s Foundation. In addition, the company regularly organizes events such as bicycle cycling to solicit fund for cancer patients. The company also provides donations in terms of money, food, medicines and services through involvement of the employees (Sanofi, 2015).

3.2.4 Preserving the environment

Sanofi is also fully committed to conserve the environment and natural resources as reflected in the company’s policies. The company has adopted an environmental conservation policy known as the Health, Safety and Environment (HSE) Policy that aims at reducing Sanofi global carbon footprint; promote widespread waste recycling initiatives; as well as conservation of the natural resources. All this is aimed at combating the negative impact of climate change. As published in the company’s website, Sanofi believes in engaging in environmentally sound business practices if the way forward.

Sanofi has also engaged in research and development in order to come up with effective ways through which the company can reduce its environmental impact through waste, water and energy reduction, efficient utilization of natural resources, as well as through increased use of renewable energy sources. So far, the company has made notable achievements. For example, in April 2012, Sanofi Pasteur, the vaccine division of the company in Canada, invested $1.3 million in a ‘condensing economizer’, cutting-edge equipment that converts waste heat into energy (Sanofipasteur, 2012). This investment is part of the company’s ongoing commitment to reduce its environmental impact and reduce carbon dioxide emissions by about 2,300 tonnes every year. In addition, since 2010, the company has been reducing its water consumption by 25% (Sanofi, 2015).

3.3 Apotex

Apotex is a pharmaceutical company located in Canada and it was founded by Sherman in 1974. The company started with a limited number of workers and operated under loss in its initial stage. In 1980, it launched a blood pressure drug, which played a crucial role in boosting its profile. According to Bucknell (2010), Apotex controlled about 40 percent of the Canada market for generic drugs by mid-1990s. The company made an important progress in 2003 when it became the first company to market Paxil, an antidepressant of generic version. In 2010, it launched Apo-Atorvastatin a Pfizer generic version that lowers cholesterol. The company has expanded to Spain and Western Europe (Bucknell, 2010).

Apotex is the leading pharmaceutical corporation in Canada involved in the production of generic drugs. It produces and market generic drugs for a number of diseases and other health conditions. Generic drugs treat diseases such as glaucoma, diabetes, blood pressure, high cholesterol and infections. The company has a larger market share, with annual sales of over $2 billion. It produces more than 300 generics drugs in about 4000 dosage with about 500 molecules on development process of generic companies on the basis 2009 of sales (Apotex, 2015). Apotex engages in the following social responsibility activities.

 

 

3.3.1 Increasing accessibility for medicines through public–private partnerships

Apotex has over the years provided access to medicine internationally. The company together with Teasdile-corti foundation has provided medicines to Lacor hospital in Uganda approximated to be $1.2 million in total. Apotex responded to chikungunya virus attack in Haiti on September 2014 by donating medicines worth $2.2 million. The company has since 2009 supported a children foundation in Kenya that rescues and support homeless children and orphans (Apotex Pharmachem Inc, 2015).

Apotex is also among the pharmaceutical companies that work with Canada’s Access to Medicines Regime. Member companies have agreed to increase access of medicines to developing countries that do not have resources to produce or buy the drugs at the market price. In 2008, the company provided about seven million medication doses of a generic AIDS, known as Apo-TriAvir, to Rwanda (CSRHub, 2015).

3.3.2

Apotex Foundation is a charitable organization held privately by Apotex. This organization is involved in the donation of medicines for humanitarian support. Over the last 10 years, this organization has donated medicines worth over $50 million (Apotex Pharmachem Inc, 2015). The organization donates medicines in response to global disaster zones in efforts to provide humanitarian assistance. For example, Apotex became the sole Canadian pharmaceutical company that aided Rwandan AIDS patients by manufacturing HIV/AIDS drugs (CSRHub, 2015).

3.3.3 Donations

In 2008, Apotex gave the largest donation ever given to Saskatchewan University’s pharmacy college. The company donated $1.5 million to the university. By the end of 2008, Apotex had donated more than $21 million to Canadian pharmacy colleges. In 2013, the company stated that it would donate $10 million to support the construction of an emergency department for the Hummer River Hospital located in Toronto, Canada (Bugailiskis, Rozental, Norman Paterson School of International Affairs., and Centre for International Governance Innovation, 2012).

3.3.4 Environmental conservation

Though very little information is available about the initiatives that Apotex has adopted to conserve the environment, promote sustainable development and conserve the natural resources, it is clear that the company has of late made drastic measures to conserve the environment. One of this measures include implementing an environmentally responsible purchasing policy where the company requires all its offices to buy products and services that are less harmful to human health and the environment. Other than being committed to acquire and use environmentally preferable products, the company is also committed towards recycling its wastes in order to reduce the impact it has on the environment. Currently, Apotex requires vendors and contractors to provide products and services that are produced from recycled materials, can be re-used or recycled, as well as to conserve natural resources or reduce wastes. This policy is available in the company’s Purchasing Department (Apotex Inc., 2015).

3.4 GlaxoSmithKline (GSK)

GlaxoSmithKline (GSK) is a pharmaceutical company found by Joseph Nathan in New Zealand in the 1850s as a company trading in Bunnythorpe. In 1958, the company acquired Allen Hanburys Company. In 1995, Glaxo merged with Burroughs Wellcome, a London company forming Glaxo Wellcome. GSK is currently ranked as the third largest pharmaceutical company in terms of revenue, after Novartis and Merck. GlaxoSmithKline has various subsidiary companies in different countries including Canada. By 2013, GSK has employed more than 99,000 employees, of which 12,500 work in the research and design division (Gustavsen et al., 2009).

It has established offices in more than 115 countries. GSK has four main facilities which include: the center for biopharmaceutical products which is in five countries; sites for manufacturing prescription products, Research and Design sites and sites for manufacturing consumer products. The company manufactures products for diseases such as mental health, asthma, diabetes and cancer. Some of the products that GSK produces include ticarcillin-clavulanate, amoxicillin, ceftazidime and mupirocin (used to cure bacterial infection), pyrimethamine used to cure malaria, and thioguanine used treating leukemia (Gustavsen et al., 2009).

The company also has some of its products such as thioguanine, amoxicillin and zidovudine listed as essential medication on the WHO’s list. GSK also operates a division in consumer healthcare, which deals with oral healthcare. It produces products such as toothpaste which include Aqua fresh, Sensodyne and Maclean’s; drinks such as Boost which was previously branded as lucozade, Ribena, and Horlicks, Additional, products include Nicoderm, a nicotine replacement, Abreva used to cure cold sores, nasal strips for Right Breath, and Night Nurse, a drug used to treat cold (Bugailiskis et al., 2012).

GSK CSR practices

3.4.1 Donations and increasing accessibility for medicines through public–private partnerships

GSK is among the pharmaceutical companies that have taken commendable steps conduct business in a responsible manner. The company endorsed a collaborative program to take care of some tropical diseases which were neglected in 2012.Gsk agreed to donate 400 million tablets of albendazole to WHO and avail 600 million more tablets every year to combat soil-transmitted helminthiasis. GSK has also been working with WHO, to eliminate Lymphatic Filariasis which is believed to affect about 120 million people (Timmermann and van den Belt, 2013). In 2009, the company declared that it would give a 25% cut on prices of drugs in the words 50 poorest countries. Additionally, it was to reveal the intellectual property right of drugs beneficial in treatment of neglected diseases to encourage development of new drugs. It would also invest 20% of its profit in health infrastructures of that company (Timmermann et van den Belt, 2013).

GSK has licensed its HIV portfolio in countries where 93% of adults and 99 percent of children live with HIV to the patent pool of Medicine. GSK developed a malaria vaccine together with PATH vaccine initiative, and in collaboration with Bill and Melinda Gates Foundation in 2014 and sought regulatory approval. In this initiative, GSK provides the vaccines in the developing countries at a price, which is just 5% over the cost of drug production. By participating in this initiative, it is on record that 50% control of malaria infections is achieved in children are at the age of 5 to 17 months and 30% for those between 6 to 12 years (Gustavsen et al., 2009).

In conclusion, GSK has committed itself to participate in activities and initiatives that ensure a better and a healthy universe. Since 2010, the company has been ranked several times as the leading company among other pharmaceutical companies on the Global Index that indicates Medicines Accessibility. GSK has released its intellectual property for drugs and processes for neglected diseases, participated in the initiative to face out tropical diseases and provision of malaria vaccines. By 2014, GSK reported that it had used approximately $350 million in its CSR programs and that it had budgeted to spend $260 million more, prior to seeking a regulatory approval for more vaccination initiatives (Gustavsen et al., 2009).

3.4.2 Preserving the environment

GSK is also fully committed towards conservation of the environment and natural resources as reflected in the company’s policies, even though the company has occasionally been heavily penalized by the federal regulatory agencies since 2010. GSK has a 10 year strategic plan for environment, health and safety (EHS) that aims at reducing the global carbon footprint; promote widespread waste recycling initiatives; as well as conservation of the natural resources in an effort to combat the negative impact of climate change (GSK, 2012).

So far, the main accomplishments that the company has made include: development of a comprehensive strategy on climate change and formation of a team of experts to manage the company’s impact on the environment; adoption of renewable energy in most of its plants; and enhancing manufacturing efficiency. Through improvement of the manufacturing efficiency, the company has significantly reduced the amount of water used and wastes released into the environment. As indicated in the company’s CSR report, manufacturing efficiency has been improving at a consistent rate of 2.8% and it has led to reduction of wastes released into the environment by 15% (GSK, 2012).

3.5 Johnson and Johnson

Johnson and Johnson is a family owned pharmaceutical and consumer company that was founded in 1886 by three brothers: Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson. The company is headquartered in New Brunswick, New Jersey, though it has about 250 subsidiaries companies operating in more than 57 countries. The company has established a pharmaceutical division in Canada, which is located in Ontario, Canada. Johnson and Johnson activities are into three main segments namely, the pharmaceutical, consumer products, medical devices and diagnostics. The company’s major pharmaceuticals are for infectious diseases, immunology, oncology and neuroscience (Drugwatch, 2014).

The infectious diseases main products include: Prezista, Incivio, an inhibitor for HIV protease, an inhibitor for hepatitis C protease, Intelence and a non-nucleoside inhibitor for HIV polymerase. Products for immunology include: Simponi (useful in the treatment of autoimmune diseases) and antibodies known as Remicade. An oncology medicine includes Zytiga (used for prostate cancer treatment) and Velcade crucial in the treatment of conditions, multiple myeloma and lymphoma for mantle cell. Medical devices include Diabetes Care, Aesthetics and Bariatric Surgery to control Obesity, Neurovascular Disease, General Surgery and many others. Consumer health products manufactured by Johnson and Johnson include skin and hair care products, oral health care, vision care, baby care and Nutritionals (Drugwatch, 2014). The company uses a wide range of CSR actions as briefly described below.

3.5.1 Donations and philanthropic programs

Johnson and Johnson Canada Company direct its donations, philanthropic programs and sponsorship to the health welfare of women and children. The company gave its first disaster aid in 1906 (Johnson et al., 2011). Employees are involved in the company’s social responsibility to the community through provision of services. Johnson and Johnson Canada collaborates with local and international organizations to give personal care and wound care. In Canada, the company supports the following organizations the Princess Margaret Hospital Foundation, Food Banks Canada, Canadian Cancer Society and Centraide United Way among others (Johnson et al., 2011).

3.5.2 Environmental conservation

Johnson & Johnson Canada also incorporates conservation of the environment in its operations. The company works toward the reduction of the amount of carbon it emits, efficient use of water and proper disposal of waste products. The company sources papers and product for packaging from satisfied forests or products made from materials that can be recycled. They also improve their products to make them more environmental friendly. Johnson and Johnson take sustainability beyond the concept of environment. To meet this responsibility, the company has set long-term goals aimed at ensuring a healthy future. It has also launched a program to ensure greener products in the future, a program that aims at

 

enhancing sustainability in water use, energy use, packaging materials and social responsibility (Macleans.ca, 2014; Johnson and Johnson, 2015).

 

CHAPTER III: ANALYSIS AND COMPARISON OF THE CSR ACTIONS USED BY THE PHARMACEUTICAL COMPANIES

1. INTRODUCTION

The previous section has provided a presentation of the CSR actions used by the five pharmaceutical companies operating and producing in Canada used in this  paper as case studies. This is despite the fact that there is a major constraint in information on CSR practices and the overall business system in Canada, not only for companies in the pharmaceutical industry, but also in other industries. Nevertheless, it has emerged that virtually all the reviewed companies apply closely related CSR actions. The purpose of this section is to present the general CSR actions identified in the previous section, as well as compare and contrast how the selected companies approach CSR. The following is a description of the six non-mutually exclusive CSR actions that the five companies analyzed in the previous section use.

2. DONATION PROGRAMS

Based on the description carried out in the previous section, donating drugs to persons in need is one of the main CSR actions that Canadian pharmaceutical companies use to give back to the society and improve the wellbeing of the local and the international community. The companies donate through special corporate social responsibility departments or through charitable foundations. Though the researcher has not been able to accurately differentiate CSR activities performed by Pfizer Canada Inc from that of the general company, it has emerged that out of the five companies analyzed in this paper, Pfizer has the largest drug donation program.

The company has a medicine donation program to Asia and Africa that is aimed at eradicating diseases such as trachoma and malaria among other debilitating tropical diseases. As indicated earlier, by the end of 2014, the company had donated 225 million Zithromax treatments in 19 countries In Canada, the company has been donating EpiPen and EpiPen Jr. (epinephrine) Auto-Injectors to all food court and restaurants in an effort to improve health safety for persons living with life-threatening allergies and those who may face emergency situations requiring immediate response.

Apotex, through its foundation has been able to donate medicines worth more than over $50 million. By the end of 2008, Apotex had donated more than $21 million to Canadian pharmacy colleges and it indicated that it would donate $10 million to support the construction of an emergency department for the Hummer River Hospital located in Toronto, Canada. GSK on the other hand donate 400 million tablets of albendazole to WHO and avail 600 million more tablets every year to combat soil-transmitted helminthiasis. Johnson and Johnson Canada Company direct its donations, philanthropic programs and sponsorship to the health welfare of women and children. Finally, Sanofi provides donations in terms of money, food, medicines and services through involvement of the employees.

3. FOUNDATIONS

Based on the description carried out in the previous chapter, establishment of foundations is another common CSR action that pharmaceutical companies in Canada apply. Virtually all the reviewed companies have foundations through which they donate or encourage their employees to participate in events involving helping the community. For example, Apotex has a foundation known as Apotex Foundation, while Pfizer has a foundation called Pfizer Foundation, on top of having a Corporate Responsibility department. Through these foundations, the companies are able to donate medicines and other forms of humanitarian aid.

4. PUBLIC–PRIVATE PARTNERSHIPS

Building local capacity through public-private partnership (PPP) has also emerged as a common approach through which pharmaceutical companies operating in Canada practice CSR. Brammer, Jackson and Matten (2012) describe PPP as an institutionalized form of cooperation between private and public actors who work jointly to towards a common target. In this type of partnership, bioscience companies in the developed countries, local governments, local NGOs and organizations in the developed countries may be involved.

Based on the decription carried out in the previous section, a substantial number of the companies analyzed employ this CSR action. Again, it is fairly correct to conclude that Pfizer Inc has emerged as the top company that has successfully implemented this strategy. For example, the company has successfully partnered with the World Health Organization’s (WHO) Alliance for the Global Elimination of Blinding Trachoma and the International Trachoma Initiative to completely eliminate Trachoma by 2020 (Information Trachoma Initiative, 2013).

It has also partnered with Medicines for Malaria Venture (MMV) and the WHO under its Special Programme for Research in Tropical Diseases (WHO/TDR) to research and develop medicines for tropical diseases that have been neglected for long. In addition, Pfizer has partnered with other NGOs such as the Clinton Global Initiative to prevent spread of malaria access to effective treatment of this deadly disease among other sicknesses (Pfizer Inc. 2015c).

Other companies that have applied this CSR action include Apotex, Sanofi, GSK, and Jonson and Jonson. For example, Apotex has partnered with Teasdile-corti Foundation to provide medicines to Lacor hospital in Uganda worth about $1.2 million and another children foundation in Kenya that rescues and support homeless children and orphans. Sanofi Canada has collaborated with international organizations such as The UNICEF and Health Partners International of Canada to respond to various humanitarian needs in the developing countries. For example, in 2011, the company through the government of Canada donated 2700 vials of an antibiotic to a children hospital in Afghanistan (Sanofi, 2014; Sanofi.ca, 2014).

Johnson and Johnson Canada collaborates with local and international organizations to give personal care and wound care. In Canada, for example, the company supports the following organization: the Princess Margaret Hospital Foundation, Food Banks Canada, Canadian Cancer Society and Centraide United Way among others. Finally, GSK has partnered with various organizations such as the Bill and Melinda Gates Foundation in order to provide vaccines in the developing countries at a price, which is just 5% over the cost of drug production (Gustavsen et al., 2009).

5. ENVIRONMENT CONSERVATION AND PROMOTING SUSTAINABILITY

This is another common CSR mechanism that pharmaceutical companies in Canada apply. For example, Pfizer Canada Inc has a number of measures in an effort to help mitigate the problem of climate change. The company has an Energy and Climate Change Program that seeks to reduce the cost and operational restrictions emanating from carbon-constrained environment; minimize the company’s contribution to GHG emissions;  promote energy efficiency; reduce water usage; preserve the natural resources; introduce greener workplaces; and offer better product packaging (Pfizer Canada Inc, 2014). Johnson & Johnson Canada, Sanofi, GSK and Apotex have also adopted this approach. The companies incorporate conservation of environment in its operations as they work toward the reduction of the amount of carbon they emit, efficient use of water and proper disposal of waste products.

6. O

Though the above described CSR mechanisms are the most commonly used by the five analyzed pharmaceutical companies, some of the companies have adopted other forms of CSR. Some of these methods include heavily investing in intense research and development as it is the case for Pfizer Canada Inc; creating awareness for diseases and prevention as well as organizing biotechnology competitions to encourage interested high school students to pursue careers in bio-economy as it is the case for Sanofi. Sanofi also organizes events such as charity walks and cycling to solicit fund for cancer patients (Sanofi, 2015). All the CSR activities related to conservation of the environment that the five companies engage in are summarized in the table below.

Table 1

CSR activities related to conserve the environment that the five companies engage in

Company	Environmental conservation strategies
Pfizer Canada Inc	v  The company has an Energy and Climate Change Program that seeks to reduce the cost and operational restrictions emanating from carbon-constrained environment; and minimize the company’s contribution to greenhouse gas (GHG) emissions. v  Promote energy efficiency, reduce water usage, preserve the natural resources, introduce greener workplaces and offer better product packaging. Achievements that the company has made towards environmental conservation ·         Lowering emissions by more than 35% adjusted to revenues from 2000 to 2007; ·         Decreasing emissions by at least 20% on an absolute basis (2008-2012) ·         Targets  to company is to reduce emissions by another 20% by 2020from the 2012 baseline ·         Spent $410,000 to expand the Barceloneta municipal recycling program ·         Its manufacturing plants in different parts of the world have been accredited by the local environmental agencies ·         continuously “greening” the manufacturing process ·         Has a Green Chemistry and Biotechnology program in order to advance scientific innovation on environmental conservation ·         Pfizer undertakes and supports environmental projects that preserve wildlife, restore land, and help conserve natural resources
Sanofi Inc	v  Has an environmental conservation policy known as the Health, Safety and Environment (HSE) Policy that aims at: ·         reducing Sanofi global carbon footprint; ·         promote widespread waste recycling initiatives; and ·         Conservation of the natural resources. v  Research and development (R&D) to come up with effective ways through which the company can reduce its environmental impact through waste, water and energy reduction, efficient utilization of natural resources, and through increased use of renewable energy sources. v  Achievements made: ·         in April 2012, Sanofi Pasteur, the vaccine division of the company in Canada, invested $1.3 million in a ‘condensing economizer’ ·         Reduces its environmental impact and carbon dioxide emissions by about 2,300 tonnes every year. ·         Has been reducing its water consumption by 25%.
Apotex	Measures aimed at conserving the environment: v  Implementation of an environmentally responsible purchasing policy- requires all its offices to buy environmentally preferable products. v  Recycles its wastes v  requires vendors and contractors to provide products and services that are: ·         produced from recycled materials, ·         can be re-used or recycled, and ·         To conserve natural resources or reduce wastes.
GSK	Measures aimed at conserving the environment: v  Has a 10 year strategic plan for environment, health and safety (EHS) that aims at reducing the global carbon footprint; v  Promote widespread waste recycling initiatives; and v  Promote conservation of the natural resources main accomplishments made by GSK v  Development of a comprehensive strategy on climate change and formation of a team of experts to manage the company’s impact on the environment; v  Adoption of renewable energy in most of its plants; and v  Improving manufacturing efficiency (at a consistent rate of 2.8%) – led to reduction of wastes by 15%.
Johnson & Johnson	v  Working toward the reduction of the amount of carbon it emits; v  Efficient use of water; and v  Sources papers and product for packaging from satisfied forests or products made from materials that can be recycled. v  Improves their products to make them more environmental friendly. v  Has set long-term goals aimed at ensuring a healthy future. v  Has launched a program to ensure greener products in the future, a program that aims at enhancing sustainability in water use, energy use, packaging materials and social responsibility

 

 

 

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