in the Pharmaceutical Industry University of Applied Sciences Professor Dr Linda ORiordan 2 Agenda Introduction The Research Gap Research Design Research Findings 41 CSR Practices ID: 731738
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Slide1
Corporate Approaches to CSR Stakeholder Engagement in the Pharmaceutical Industry
University of Applied
Sciences
Professor Dr. Linda O‘RiordanSlide2
2
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing FactorsSummary of Research Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide3
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
… Slide4
4
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 & values
in managing an
organisation
)
…
= >
Practical
Challenge
for
CSR
Decision-Makers
:What is Responsible Management?
Introduction
The Management Challenge
Various
Varying
Perspectives
… Slide5
5
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‘RiordanSlide6
6
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?
Introduction
Problem Definition
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide7
7
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?
Introduction
Problem Definition
Significant
lack
of
theory
and
empirical
data
on CSR
Stakeholder
Management…
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide8
8
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing
Factors
Summary of Research Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide9
9
… Stakeholder
engagement and its
associated
contextual factors have been
under-researched
for the pharmaceutical sector....
CSR Practices: Terminology Stakeholder Pioritisation
Communication Projects/Themes
Organisation ExpectationsAnglo-German ComparisonInfluencing Factors=> Research
Questions…
The Research Gap
CSR Practices
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide10
10
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing
Factors
Summary of Research Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide11
11
PERSPECTIVES ON
CORPORATE SOCIAL RESPONSIBILITY
Corporate Approaches to Stakeholder Engagement
in the Pharmaceutical Industry in the UK and Germany
LINDA O
’
RIORDAN
PhDSchool of Management, Bradford University, UK
2010
Research Design
Introduction
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide12
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?12 Research Design
Research Questions
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide13
13
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:Documentary analysisTelephone surveyObservationIn-depth interviews Research Design
Methodology
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide14
14
Data collection and analysis via six codes:
Terminology
StakeholdersCommunicationOrganisation/Governance
Projects
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 paperResearch DesignData
Collection
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide15
The Original Explanatory
Framework
Source: O’Riordan, 2006; O’Riordan and Fairbrass, 2008)
15
Research Design
Conceptualising CSR Practice
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide16
16
Source: O‘Riordan, 2010:352
IFSAM 2012
Professor Dr. Linda O‘Riordan
Research Design
Conceptualising
CSR Practice
The
Revised Explanatory FrameworkSlide17
17
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
Summary of Research
Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide18
Terminology
Multiple & diverse use of labels CSR most often utilisedEmployment of individualised terms
StakeholdersTop Rankings: Customers (Physicians/Patients) & EmployeesLowest Ranking: NGOs
Task-Specific approachStakeholder theory approach confirmed in CSR conceptualisationCommunication
Stakeholder concept not always explicitly communicated
Highly visible & explicit communication of CSR activities
18
Research FindingsCSR Practices
IFSAM 2012
Professor Dr. Linda O‘Riordan
RQ 1:
Characterise
CSR
Stakeholder
Engagement via 6 Codes (I)Slide19
19
Research Findings
CSR Practices
IFSAM 2012
Professor Dr. Linda O‘Riordan
TerminologySlide20
Organisation/
GovernanceCSR concept spans a broad range of business functions Rarely the responsibility of one dedicated departmentMulti-functional networks of designated individuals & ad-hoc project groups
Centralised & Decentralised management appraoch
ProjectsPhilanthropic ProjectsIntegrative CSR principlesDiverse range of themes & Activities
Expectations
CSR
perceived
as a cost to the businessMeasurement challenges20
Research
FindingsCSR Practices
IFSAM 2012
Professor Dr. Linda O‘Riordan
RQ 1:
Characterise
CSR
Stakeholder
Engagement via 6 Codes (I)Slide21
21
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
Summary
of Research Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide22
Broad
similarity in practices due to centralised
company principles and international
guidelinesSome national differences
revealed
:
De-centralised national practices at affiliate levelMore environmental regulation & CEO involvement in GermanyMore use of the terms ‚CSR‘ and ‚Sustainability‘ in GermanyHigher standardisation
in terminology in the UKDifferences
in perceptions on the meaining of ‚value‘ 22
Research
Findings
Anglo-German
Comparison
IFSAM 2012
Professor Dr. Linda O‘Riordan
RQ 2:
Stakeholder
Engagement in
the
UK
and
GermanySlide23
23
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing Factors
Summary of Research Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide24
External (Contextual
) FactorsPEST FactorsStakeholder
PressureMediaIndustry/
Competitor BehaviourBusiness Role/
Activity
Internal (Company)
Factors
Leadership Mindset / Personal (moral ) InterestCompany Profile (Size, origin, type, scope of activity, success)Business AimsInternal Stage of CSR Development
24
Research FindingsInfluencing Factors
IFSAM 2012
Professor Dr. Linda O‘Riordan
RQ 3:
Factors
Influencing
Stakeholder
Engagement
= > Company Culture => Vision & Mission => CSR ApproachSlide25
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.
25
Research
Findings Summary (I)
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide26
Evidence from the Data : Pharmaceutical industry
Stakeholders’ negative perceptionsMindset MisalignmentPersonal (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... 26
IFSAM 2012
Professor Dr. Linda O‘Riordan
Research Findings
Summary
(II)Slide27
27
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing
Factors
Summary of Research Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide28
28
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 Research
Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide29
Proposal for Further Research:
This evidence will be employed to test and improve a conceptual framework which was developed in separate research
29
Research
Contribution
Next
Steps
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide30
30
Agenda
Introduction
The Research Gap
Research Design
Research
Findings
on CSR Practices4.1 CSR Practices4.2 Anglo-German Comparison4.3 Influencing FactorsSummary of Research Contribution
IFSAM 2012
Professor Dr. Linda O‘RiordanSlide31
Thanks for
listening!
…QUESTIONS…
31