Pfizer Company - Case Study Example

Assignment Pfizer is world’s largest supranational Pharmaceutical Corporation, which has become famous for its top quality medicines and drugs used during treatment of chronic diseases and illnesses. The company has an organised Research & Development department where scientists and physicians are indulged in biomedical research. Indeed, the department is divided into two major units namely “Pharma Therapeutics and Bio Therapeutics” where research is conducted for creation of new formulas and drugs for cancer (lung, breast, liver etc.), cholesterol, diabetes, AIDS, Alzheimer and etc. The company even continued its growth during challenging global recessionary period of 2008 – 2009. Indeed, the sales revenue increased to $50 billion in 2009 against $48 billion in 2008 and the corporation successfully acquired Wyeth’s global operations. (Company Annual Report, 2009) This paper will provide a critical analysis over Pfizer’s social performance and its impact over stakeholders such as governments of host and home nations, suppliers, customers, employees and society as a whole. The author will present how Pfizer has opt out to fulfill needs in the society by producing and marketing life-saving drugs that could benefit in saving many precious lives. Indeed, the author will also evaluate Pfizer’s Corporate Social Responsibility (CSR) programme that includes separate community welfare, global health, grants and contribution, partnerships with healthcare professionals, animal health, environmental protection and workplace safety programmes that has enhanced the prestige, goodwill and reputation of Pfizer over the years. (Company Annual Review, 2009) First of all, the research has evaluated that Pfizer really aims to eradicate diseases and thus focus heavily on Research & Development. The company strategic planners believe that the best to prosper and gain consumer acceptance worldwide is to produce top quality new drugs and ensure their supply to all developing and developed countries. The company, therefore, focuses on various areas that include “neuroscience, inflammation and pain, oncology, bacterial and viral based infectious disease, allergy and respiratory conditions, genitourinary sexual health, cardiovascular metabolic endocrine disorders” and others etc. Indeed, no other pharmaceutical firm has such an extensive research base and portfolio of medicines and vaccines unlike Pfizer. In addition, the acquisition of Wyeth Pharmaceuticals would also enable international giant to open new doors in R & D and extend product portfolio by creation of new drugs. (Lloyd, 2010) As mentioned in Company Annual Review (2009), Pfizer’s glib scientists are focused to treat diabetes and sugar related issues from regeneration and growth of ‘Pancreatic Cells’. Indeed, it wants to substitute insulin from this latest approach. Next, the personnel are also constantly involved in developing alternative solutions for effective treatment of Alzheimer through the new procedures such as ‘biological and small molecule’. Third, scientists are also striving to discover most appropriate use of RNP Therapy that could then be used to control ‘liver cancer’. In addition, it should be pointed out that Pfizer has taken various Stakeholder initiatives and programmes so that it could enhance its social performance. For example, Pfizer has implemented internal employee recruitment and selection programme that provides equal opportunities to women applicants and potential candidates who wish to find a job at Pfizer. For instance, there are also other approaches adopted to ensure that the probability of Glass Ceiling is minimized and women could easily advance to upper managerial levels on the basis of their excellent performance. Next, the company has implemented a balanced promotion and fringe benefit, which does not discriminate employees because of their colour, race, creed, gender, ethnicity, language, religion and geographical area. This has really impacted firm’s internal environment as women are, today, eager to join Pfizer as their preferred and desirable employers. Apart from this, the company has also maintained cordial relationships with distribution channel members and business partners. For instance, managers tend to communicate the company’s CSR initiatives with concerned distribution channel members, more specifically suppliers and input providers, and constantly monitor their healthcare and workplace safety’ practices. In addition, Pfizer also critically analyses the behavior of supplying agencies and firms with internal customers followed by evaluation of environmental safety programmes and use of socially responsible production methods and procedures. It is worthwhile to mention that Pfizer has also developed and implemented free community educational programmes such as an internet website on the subject of “secure medication and appropriate treatment”. This website provides guidance and education to patients and customers about health experts and professionals who should be approached in case of any epidemic or chronic illness. In addition, the site informs about hospitals and health service clinics with complete addresses so that they could be contacted in emergency. Nevertheless, Lloyd (2010) has highlighted that the company has also been indulged in a research venture in “collaboration with Harvard Medical School” with an aim to research on various “methods of reporting negative events in patients”. Hence, it is justified to argue that Pfizer has a genuine aim to foster health projects with innovative solutions and treatment methods followed by steps to enhance awareness and information in the society. (Lloyd, 2010) As far as community healthcare projects are concerned, the researcher would like to provide an example of “Pfizer’s Global Health Fellows (GHF) Programme” under which internal customers offered the fellowships. Indeed, more than “100 employees volunteered” under this programme and were sent to Africa, Asia and Europe to participate in global health awareness sessions across 22 developing countries, where patients do not have access to timely, quality and sufficient health facilities at their disposal. (Vian et al, 2007) Lloyd (2010) has also identified the environment security and protection programmes that are recently implemented by Pfizer. One of the best examples of results obtained from these initiatives is that “Carbon Disclosure Project” has applauded the pharmaceutical giant on honest demonstrations over Carbon emissions and pollutants from its global production sites. It should be recalled that Pfizer, like other corporations, also uses chemicals, acids and various raw materials that may threaten world’s environment and may aggravate global warming issue. Another example is that company has introduced new procedures and techniques that increase internal efficiency while reduce ‘greenhouse gases’ at the same time. For instance, company has inducted efficient recycling state-of-the-art plant so that it could recycle and reuse waste (around 46% is recycled) material, thereby transforming it into major inputs. This would not only reduce the pressure on natural resources but also help grappling with the menace of environmental pollution and global warming. In addition, the company would also save costs that increases its profitability and retained earnings. Pfizer would then allocate additional funds for Corporate Social Responsibility. Upon the negative side, the researcher has revealed that company is still unable to accomplish its “clean energy target of 35% in 2010” because of internal weaknesses and managerial shortcomings. The company, however, expects that it would be able to achieve only 20% - 22% clean energy target against predefined 35%. Next, the company denotes huge sums of money for corporate philanthropy all across the world such as in USA, China, and United Kingdom etc. in charities. For instance, Pfizer has also received various rewards and accolades for being the top contributors in donations and charities. Human (2010) has pointed out that Pfizer has now implemented a new strategy for informing its investors, shareholders and customers about company’s on-going social responsibility programmes and investors related information so that they would remain informed about these advancements and social performance. In addition, the company offers a card to its 1.8 million shareholders after which they could request for print versions of company’s CSR reports and annual reviews. The report could also be downloaded from company’s official website. In this way, Pfizer tends to communicate its CSR initiatives and research progress with valued clients, suppliers, investors, shareholders and other stakeholders, which should be appreciated for sure. Having analysed the social performance of Pfizer Incorporation in detail, the author would now like to conclude this paper. It is worthwhile to mention that company has a established R & D programme divided into two core units, each of which works separately to research on new resources, formulas, biomedical technology and treatment methods to produce and market optimal quality life-saving drugs. For instance, this entire hard working exercise by Pfizer personnel is an attempt to offer drugs that could help alleviating the diseases. Latest research on Diabetes, Liver cancer and Alzheimer disease treatment are some of the evident and worth mentioning examples. In addition, the company has an excellent CSR programme that focuses on almost all major areas such as education, environment, healthcare, community welfare etc. Nevertheless, the corporation also ensures implementation of affirmative action and zero-discrimination against women and minority candidates who wish to advance for excellent future in a multinational organisation. On the negative side, it should be argued that company needs to devote additional resources and dedicate efforts so that it could accomplish it predefined environment protection targets. Indeed, at present, company is unable to achieve its clean energy goals. References: No author (2009) “Company’s Annual Financial Report 2009” Pfizer pp. 1-110 http://media.pfizer.com/files/annualreport/2009/financial/financial2009.pdf [Accessed September 4, 2010] No author (2009) “Company’s Annual Review 2009” Pfizer pp. 1-76 http://media.pfizer.com/files/annualreport/2009/annual/review2009.pdf [Accessed September 4, 2010] Oracle Case Study (2008) “Pfizer Thrives in Challenging Marketplace with Versatile Performance Management Solution” Oracle http://www.oracle.com/customers/snapshots/pfizer-industry-case-study.pdf [Accessed September 4, 2010] No author (2008) “Company’s Annual Review 2008” Pfizer pp. 1-44 http://media.pfizer.com/files/annualreport/2008/annual/review2008.pdf [Accessed September 4, 2010] Lloyd, Tracery (2010) “Pfizers 2009 Corporate Responsibility Report” Suite101 http://www.suite101.com/content/pfizers-2009-corporate-responsibility-report-a189969 [Accessed September 4, 2010] Pfizer CSR Report (2010) “Chairman’ letter to Stakeholders” Pfizer pp. 1-2 http://media.pfizer.com/files/corporate_citizenship/cr_report/chairmans_letter.pdf [Accessed September 4, 2010] Vian, Tarvn, Kelly McCoy & Sarah C. Richards & Patrick Connelly & Frank Feeley (2007) “Corporate social responsibility in global health: the Pfizer Global Health Fellows international volunteering program” Entrepreneur http://www.entrepreneur.com/tradejournals/article/162103155.html [Accessed September 4, 2010] Human, Tim (2010) “Pfizer moves beyond philanthropy” Inside investor Relations http://www.insideinvestorrelations.com/articles/16239/pfizer-moves-beyond-philanthropy/ [Accessed September 4, 2010] No author (2008) “Pfizer Increases Support of Charity Fund” http://www.bloodhorse.com/horse-racing/articles/45216/pfizer-increases-support-of-charity-fund [Accessed September 4, 2010] Corporate Watch Report (2001) “Heavily Overpricing Pharmaceuticals” http://www.corporatewatch.org/?lid=330 [Accessed September 4, 2010] Little, Mathew (2010) “Tiny Life and Pfizer” http://www.thirdsector.co.uk/news/Article/1007918/Tiny-Life-Pfizer/ [Accessed September 4, 2010] Three Hands Case Study “Pfizer and Action for Sick Children” http://www.threehands.co.uk/case-studies/case_study_pfizer_and_action_for_sick_children_3716.aspx [Accessed September 4, 2010] Messenger-Gazette (2010) “Pfizer of Peapack runs for Greater Somerset Red Cross” http://www.nj.com/messenger-gazette/index.ssf/2010/07/pfizer_of_peapack_runs_for_greater_somerset_red_cross.html [Accessed September 4, 2010] Read More