Corporate Social Responsibility and Financial Performance of the Company - Assignment Example

One of which has adopted successful CSR strategies while the other could not succeed in devising relevant CSR strategies in the Indian pharmaceutical industry. With the beginning of internalization and globalization, the operation in modern-day business has transformed to a great extent (Asongu, 2008). The phenomenon has brought in excessive competition and complexity in the business environment; this has challenged the managers and board of directors of well-known companies to measure their overall performance in the competitive industry.

Because of globalization and internationalization, the managers and boards have to track the changes that have taken place in the external environment. In order to develop an un-interruptive business environment for the companies, the managers have undertaken several Corporate Social Responsibility (CSR) activities (Boeger, 2010; Birch and Moon, 2008). These activities have helped them to deal with the complexities that dominate the external business environment and also balance the interest of the stakeholder so as to maintain the equity investments (Birch and Moon, 2008).

Over the past few decades, CSR activities have occupied a significant place in every industry across the world. CSR activities have the capability to enhance the value of the firm (Servaes and Tamoya, 2013). The project takes into account the pharmaceutical industry, which is a well-regulated industry. The company that is considered for the case study is GlaxoSmithKline Plc. The CSR activities undertaken by GSK are discussed in the project and it is also compared with its competitors. The main motivation behind choosing the topic is to acquire in-depth knowledge regarding the companies who undertake CSR activities and explore the concept more precisely so as to examine the challenges that are related to CSR.

The global pharmaceutical industry is threatened by the rule and regulations.