...Good Reputation B. Socially Responsible Investors Reward Social Responsibility C. The Cost of Illegal Conduct D. The Cost of Government Regulations E. What the Research Says about Social Responsibility and Firm Performance F. Being Socially Responsible Because It is the Right Thing to Do VI. Conclusion VII. Discussion Questions VIII. Case: Merck and River Blindness IX. Short Case Teaching Notes - Discussion Questions 1. Do you think corporate social responsibility (CSR) is important? Why or why not? Depending upon the audience, many students will see the importance of social responsibility. Generally, they are conscious of some kinds of environmental concerns and have some understanding of the relationship between business and the community. But with some business school audiences, you may find resistance to the idea that corporations owe anything to society, beyond making a profit and obeying the law. So, be prepared for a debate on this one. The chapter is designed to provide students with lots of reasons to think that CSR is...
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...edu.au COMPANY: Merck & Co Yin Jing Director of Corporate Communications Merck & Co Western Australia 28th August 2011 Mr. Alireza Faed Executive of the Australian Local Network Po Box 123 Bentley WA 6004 Dear Mr. Faed This statement will include our recommendations to the Australian Network according to two of the Global Compact principles. One is two which states that “business should make sure that they are not complicit in human rights abuses”, the other one is nine which is about that “business encourage the development and diffusion of environmentally friendly technologies”. As one of the biggest pharmaceutical companies, Merck & Co, our mission is providing innovative, distinctive products and services that save and improve lives and satisfy customer needs, to be recognized as a great place to work, and to provide investors with a superior rate of return (Merck). Merck & Co is a participant in Global Compact. We established Global Compliance Organization in 2009 to be compliance with the ten Global Compact principles. And we hope that our submission can encourage more companies to fulfill their social responsibility to improve the whole global community through learning from our strengths and weakness or mistakes. In this way, we also can supervise ourselves to realize our slogan that everyone could be well. Recommendation:1 Protect human rights by applying diversity to workforce. Implementation: Merck is a good model to be...
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...with pediatric indications for the drug (Goodman, 2008). Drug companies, their competitors which include other pharmaceutical companies, as well as generic companies understand this, thus enabling the drug companies to maximize product sales and royalties for many years (Goodman, 2008). These factors along with a declining economy, new healthcare regulations, political influences, changes in patent law, a change of the mentality from profits first, science secondary has lead to the decline in profits for the pharmaceutical industry. Although late adaptors to the “change”, unlike the banking and retail industries, pharmaceutical have been impacted as well and in order to stay competitive must make some serious changes (Goodman, 2008). Merck & Co., Inc is one of the top-tier drug makers. This corporation faces the multiple issues and challenges pertinent to pharmaceutical industry. This paper provides an overview of existing change models in within the framework...
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...Qn 1 1. The Natural Environment One of the more common ways marketers demonstrate social responsibility is through programs designed to protect and preserve the natural environment. a) Many companies are making contributions to environmental protection organizations, sponsoring and participating in clean-up events, promoting recycling, retooling manufacturing processes to minimize waste and pollution, and generally reevaluating the effects of their products on the natural environment. b) Green marketing refers to the specific development, pricing, promotion, and distribution of products that do not harm the natural environment. c) Although demand for economic, legal, and ethical solutions to environmental problems is widespread, the environmental movement in marketing includes many different groups, whose values and goals often conflict. d) Some environmentalists and marketers believe that companies should work to protect and preserve the natural environment by implementing the following goals: (1) Eliminate the concept of waste (2) Reinvent the concept of a product (3) Make prices reflect products’ true cost (4) Make environmentalism profitable 2. Consumerism a) Consumerism refers to the efforts of independent individuals, groups, and organizations working to protect the rights of consumers. b) A number of interest groups and individuals have taken action against companies they consider irresponsible by lobbying government officials and agencies...
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...MERCK AND RIVER BLINDNESS 1. Think about the definition of stakeholders — any parties with a stake in the organization’s actions or performance. Who are the stakeholders in this situation? How many can you list? On what basis would you rank them in importance? People suffering from the disease or those who potentially may be infected – would directly benefit from the cure Merck employees at all levels – profitability and the economic health of the company affects current employees Merck shareholders – inability to profit from the drug might have a negative effect on shareholder’s value, but taking the stand on “doing the right thing” might have a favorable effect on company’s reputation and increase the value of the stock Various healthcare organizations – Merck is one of the leaders in the industry whose actions or inactions may affect the state of the industry as a whole One way to rank stakeholders in importance is by their level of benefit from the drug putting people suffering from the disease in the first place as they would benefit the most from the invent of the cure. Then, employees and shareholders would share the second place, provided that the company would most likely not be able to recover funds invested in the long and expensive process of developing the drug which in turn would affect company’s profitability. Finally, various healthcare organizations would rank third; the effect on them would depend on the level of their involvement in the process...
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...the different viewpoints in separating management from its owners. Amongst other reasons, this clarified that by separating managers and owners, the corporation can therefore exist in perpetuity – beyond the life of its founders and/or owners. In the Integ case, we learned that even though the company’s intentions were magnanimous at their core, they were not focused. Having a business that creates a sustainable profit, society, and planet was out of reach for its managers, and their competencies. The company lacked an understanding of what they considered to be socially responsible as well, or at least this is what was communicated to us through the case, which made their vision and mission even more far fetched. Our discussion of Merck was also very interesting to me. As discussed during my group’s short presentation, the company was in a very unique position and encountered a dilemma in its responsibility to assist millions of people that were in need, in several continents. I feel that the company took the right steps and ultimately made the right decision in choosing to develop and manufacture the drug to cure the blindness issue, even though it did not reach all of...
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...CORPORATE SOCIAL RESPONSIBILITY IN THE PHARMACEUTICAL INDUSTRY: BETWEEN TREND AND NECESSITY by Cecile Oger BSc. (Honours) Chemistry with Business Administration Kingston University London, UK, 1995 A thesis presented to Ryerson University In partial fulfillment of the requirements for the degree of Master of Business Administration In the program of Master of Business Administration Toronto, Ontario, Canada, 2009 © Cecile Oger 2009 Library and Archives Canada Bibliothèque et Archives Canada Published Heritage Branch Direction du Patrimoine de l’édition 395 Wellington Street Ottawa ON K1A 0N4 Canada 395, rue Wellington Ottawa ON K1A 0N4 Canada Your file Votre référence ISBN: 978-0-494-59035-5 Our file Notre référence ISBN: 978-0-494-59035-5 NOTICE: AVIS: The author has granted a nonexclusive license allowing Library and Archives Canada to reproduce, publish, archive, preserve, conserve, communicate to the public by telecommunication or on the Internet, loan, distribute and sell theses worldwide, for commercial or noncommercial purposes, in microform, paper, electronic and/or any other formats. . The author retains copyright ownership and moral rights in this thesis. Neither the thesis nor substantial extracts from it may be printed or otherwise reproduced without the author’s permission. L’auteur a accordé une licence non exclusive permettant à la Bibliothèque et Archives Canada de reproduire, publier...
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...identified affect the cost of doing business? * What industries tend to be particularly subject to cultural differences? Why? Be specific. Support your views with references to the required course materials. Provide concrete examples of both cultural elements and specific countries. Topic 2 1. Read DRS, “Anglo American PLC in South Africa: What Do You Do When Costs Reach Epidemic Proportions,” pp.207-211. 2. View the Michael Porter and World Economic Forum videos. 3. Select two multinational corporations where the MNCs are different industries (e.g., manufacturing/Ford and pharmaceutical/Merck). The choice of MNCs is yours. It is first-come, first-served. “Reserve” your two MNCs quickly. Post a response in Conferences to Topic 2. In the “Subject” box/line state the MNCs you selected. You must pick different MNCs. 4. Go to the two MNCs’ websites and locate their most recent CSR reports, also often called corporate citizenship, sustainability, or corporate responsibility reports. To locate the reports: Go to http://www.csrwire.com/reports orhttp://www.wbcsd.org/publications-and-tools.aspx or http://globaledge.msu.edu/industries/ or...
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...MANG 200: Principles of Management Final Assessment: Management Report Fall 2012 The Great Place to Work Institute, a global research and management consultancy that recognizes the best workplaces in over 45 countries worldwide, today released its inaugural list of ‘Top Companies to Work for in the UAE’. The official list is a ranking of the nation’s 10 best employers based on the confidential feedback from their staff and an independent culture audit of their HR practices by the Institute. The benchmarking study assesses what companies do on a daily basis to earn and sustain the trust and respect of their people. Two-thirds of a company's score is based on the results of the Institute's proprietary Trust Index survey, which is sent to a random sample of employees from each company. The survey asks questions related to their attitudes about management's credibility, job satisfaction, and workplace camaraderie. The other third of the scoring is based on the company's responses to the Institute's Culture Audit, which includes detailed questions about pay and benefit programs and a series of open-ended questions about hiring, communication, and diversity. UAE-based companies from a wide range of industry sectors participated in the program in 2010. In accordance with the practices of the Great Place to Work Institute, only those companies recognized for their exemplary employee management and engagement processes are recognized on the list of “Top Companies”. A total of 10...
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...differences? Why? Be specific. Support your views with references to the required course materials. Provide concrete examples of both cultural elements and specific countries. Topic 2: Balancing Profitability and Corporate Social Responsibility in International Business Directions: 1. Read DRS, “Anglo American PLC in South Africa: What Do You Do When Costs Reach Epidemic Proportions,” pp.207-211. 2. View the Michael Porter and World Economic Forum videos. 3. Select two multinational corporations where the MNCs are different industries (e.g., manufacturing/Ford and pharmaceutical/Merck). The choice of MNCs is yours. It is first-come, first-served. “Reserve” your two MNCs quickly. Post a response in Discussions to Topic 2. In the “Subject” box/line state the MNCs you selected. You must pick different MNCs. 4. Go to the two MNCs’ websites and locate their most recent CSR reports, also often called corporate citizenship, sustainability, or corporate responsibility reports. To locate the reports: Go to http://www.csrwire.com/reports or http://www.wbcsd.org/publications-and-tools.aspx and scroll down to...
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...(COPD); Paxil/Seroxat and Wellbutrin, both antidepression drugs; Avandia/Avadamet for type 2 diabetes; and the antibiotic Augmentin. Each of these drugs generated above £800 million of sales in 2003. GSK produces a broad range of products of special importance to developing countries, including: Anti-malaria drugs Zentel (albendazole), for de-worming and the prevention of lymphatic filariasis Pentosam, against leishmaniasis Anti-retrovirals (ARVs) for the treatment of HIV/AIDS Tuberculosis drugs Vaccines for developing countries Corporate Social Responsibility (CSR) CSR refers to the responsibility of a company for the social, ecological and economic impacts of its operations. GSK follows a proactive and comprehensive CSR approach. In 2003, the company formally adopted a set of Corporate Responsibility Principles. The company is highly transparent about its CSR policies and has a clear governance structure on CSR. Reporting...
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...Table of Contents page no. 1. EXECUTIVE SUMMARY 1-2 2. INTRODUCTION 3-7 * PHARMACEUTICAL INDUSTRY IN INDIA 4 * FACTS ABOUT INDIAN PHARMACEUTICAL COMPANY 5-6 3. COMPANY PROFILE 7-12 * HISTORY 8-9 * VALUES, VIEW AND POSITION 10 * RESPONSIBILITY 11 * DISCOVERY AND DEVELOPMENT 12 4. COMPENETCY MAP 13-18 5. HUMAN RESOURCE DEPARTEMENT 19 ...
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...implications of their decisions. Fortune magazine annually assess America's most Admired Corporations and does so by evaluating over 300 organisations against 8 criteria, one of the eight used is "Community and Environmental Responsibility". Firms such as Merck, Rubber maid, Procter and Gamble, Wal-mart, Pepsico, Coca-cola and 3 M have received consistently high overall ratings. The presence of strong social values such as social responsibility has a powerful impact on organisations and their actions. It leads them to use a socio-economic model of decision making in which both social costs and benefits are considered along with the traditional economic and technical values. “Corporate social responsibility in the form of corporate philanthropy, or donating to charities, has been practiced since early 1800 at least in the US (Sethi, 1977). It was legitimate in so far that it directly benefited the shareholders, and corporate donations were mostly on the agenda of those companies that could afford it. Today’s concept of corporate social responsibility was developed primarily during the 1960s in the USA with the notion that corporations have responsibilities that go beyond their legal obligations. Different schools of thought on CSR oscillate between two extremes: the free market concept (classical economic theory) (Friedman, 1970) and the socially-oriented approach (Freeman, 1984; Wood, 1991; Smith 1994). Enderle & Tavis (1998) define corporate social...
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...Higher School of Administration and consultant for small and medium-sized enterprises. Received 10 December 2008; Revised 10 December 2008; Published online 9 March 2009. Top of page Abstract The aim of this paper is to discuss the question of how hotel companies contribute to improving the quality of life in host communities and the well-being of their employees. A number of research techniques were employed, which allowed to see what the hospitality sector has done to further the aforesaid end. The findings are placed into the context of corporate social responsibility (CSR), and it is argued that, in recent years, hotel companies have gone to great lengths to improve the quality of life in local communities and the well-being of their employees. Critically, by presenting concrete initiatives and highlighting their rationale, it is shown that a growing number of hotels have embedded the idea of CSR into their business models. The paper concludes by asserting that international hotel companies can play an important role in the development of host communities. Keywords: hospitality, corporate social responsibility, hotel...
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...problems 2-3 2.3 The Objectives of the study 3-4 2.0 Literature Review 5 3.4 Definition of CSR 5 3.5 The Evolution of CSR 5-7 3.6 Carroll’s 4 Components Pyramid CSR 7 3.7.1 Philanthropic Responsibility 7-8 3.7.2 Economic Responsibility 8 3.7.3 Legal Responsibility 8-9 3.7.4 Ethical Responsibility 9 3.7 CSR in Malaysia 9-11 3.8 Business Benefits in CSR 11 3.9.5 It protects the company’s brand reputation and image. 11-12 3.9.6 It differentiates the firms from the competitors. 12 3.9.7 It reduces government scrutiny and regulations. 12-13 3.0 Research Methodology 13 4.9 Research Approach 13 4.10 In-Depth Interview 13-14 4.11 Research Design 14-15 4.0 Results 15 5.12 Demographic/ Sample Characteristics 15 5.13 How Do Consumers Define CSR? 16-17 5.14 Is CSR an Important Purchasing Decision Factor? 18 5.15 How influential are CSR activities in order to create brand awareness? 29 5.0 Discussions 20-21 6.0 Conclusions and Implications 22 ...
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