Corporate Social Responsibility-GlaxoSmithKline (GSK) - Research Paper Example

Corporate Social Responsibility-GlaxoSmithKline (GSK) Corporate Social Responsibility-GlaxoSmithKline (GSK) Overview of the pharmaceutical marketThe pharmaceutical industry is very profitable. According to the IMS Health (2010), the size of the pharmaceutical market experienced a 6% growth 2006. The markets of U.S. and U.K. have the world’s largest pharmaceutical sales. Additionally, countries like Japan, Latin America, and China have recorded double-figure growth. Meanwhile, due to significant developments and global recession, disparate rates of evolution have grown in these countries.

Industry analysts predict that this market will hit 1.1 trillion dollars by the end of this year. Pharmaceutical companies like GSK, Pfizer, and Novartis spend more than 5 billion dollars annually on research and development. The healthcare industry is also projecting increased drug consumption after the introduction of healthcare laws. Currently, the mission of the business is more complicated than creating profits for the shareholders. The firms are judged not only on profit but also their principles (Jackson & Nelson, 2004).

Organizations have a responsibility in fulfilling employees’ obligations, community, and the environment (Martin, 2002). In order for organization to maintain or restore public trust, it should practice corporate social responsibility. Corporate social responsibility is regarded as a commitment that aligns with the corporate strategic goals concerning pressing societal issues, and portraying awareness of the community need in which the business works.Pharmaceutical industries have been pressured to practice corporate social responsibility, especially regarding the HIV/AIDS pandemic (Leisinger, 2005), and product recalls.

GlaxoSmithKline has made several commitments in an effort to practice corporate social responsibility. It has introduced a Least Developed Country Patent Pool for tropical diseases medicines, which have been neglected due to lack of feasibility. Also, it will reduce prices of patented medicinal products in the least developed countries to 25%.In addition, increase funding for research on diseases in developing countries. References ListIMS Health. (2010). IMS Health Pharmerging Shake-Up: New Imperatives in a Re-Defined World.

Retrieved on http://www.imshealth.com/pharmergingreport2010 February 17, 2015.Jackson, I. A., & Nelson, J. (2004). Profits with principles: Seven strategies for delivering value with values. New York, NY: Doubleday.Leisinger, K. M. (2005). The corporate social responsibility of the pharmaceutical industry: idealism without illusion and realism without resignation. Business EthicsQuarterly, 15(4), 577-594.Martin, R. L. (2002). The Virtue Matrix: Calculating the Return on Corporate Responsibility.

Harvard Business Review, 80(3), 68-75.