Companies are expected by society to act responsibly which translates into a set of corporate responsibility principles, the outcome being a substantial difference to the durability, prosperity and liveability of the communities in which they operate (Smith 2008).GlaxoSmithKline is a world leading research based pharmaceutical company, with a mission that is challenging and arousing to improve the quality of human life. GlaxoSmithKline has a robust combination of resources and skills delivering strong growth in today’s rapidly changing environment (Pangarkar 2006). The company also has leadership in four major therapeutic areas, anti infective, central nervous system, respiratory and gastro intestinal/metabolic and is also leading in the important area of vaccines (Tregear 2005). Therefore, this essay evaluates GlaxoSmithKline’s social performance in relation to the environment. It focuses on their corporate responsibility and portrays both positives and negatives in their operations and their impact on the environment and its stakeholders. GlaxoSmithKline achievements and social performance
Companies are growingly discussing Corporate Social Responsibility at their highest level. Strong practices result in to a solid company reputation (Othman and Ameer 2009). In a New York news publication GlaxoSmithKline report confirms progress and dedication to its extensive approach in meeting society’s needs. Areas such as access to medication in developing countries and research and development in such nations, training of employees, environmental responsibility and conservation of environment, flora and fauna are widely supported by GlaxoSmithKline (GSK confirms Global Commitment to Corporate and Social Responsibility 2003). The company’s achievements in Research and development are significant, contribution to society by discovering new ways of treating and preventing diseases. An investment of 500 million pounds has been made for product innovations. In addition the company is doing their best to replace animals in their research with other methods where possible such as using new technologies and refining the techniques used on animals for their research (GlaxoSmithKline .n.d).This shows commitment towards preserving the environment. Evidence of the company’s social commitment, is rewards for their achievements in both local and global community work by the Business in the community committee for their commendable contribution in the community such as provision of medicines in the Lymphatic Filariasis(a disease caused by mosquito bites) programme conducted by the World Health Organisation (WHO), Global Alliance, Ministry of health, NGO’S, the company donated 67 million albendazole treatments to 34 countries in the year 2004 (Boseley 2002). Such alliance with Global Organizations for noble causes is a great contribution factor in building corporate reputation. GlaxoSmithKline incorporates green products in their product development from an early stage. The corporation has experienced great success especially in packaging and has won the big Tick 2008 excellence awards by the business committee for responsible business practices(Atkinson 2009).The company has ties with committees to collect used bottles to ensure efficient recycling which as per statistics 95% leading to prominent green savings and benefits(Atkinson 2009). This builds trust in the company and its products by its prominent stakeholder’s i.e. its shareholders and consumers. As per statistics annual sales of GlaxoSmithKline are pounds 20.3 billion and a profit of pounds 6.1 billion before tax. The company together with making tremendous profits, GlaxoSmithKline plays a major role in practicing corporate responsibility in areas like alleviating poverty, lack of infrastructure in underserved communities, disease prevention. Being a member of Percent Club in UK, GSK donates 1% of their pre tax profits to Charitable causes (Tregear 2005, 30).In addition the company...
Please join StudyMode to read the full document