Investigation on Practicing Carroll’s Pyramid of CSR in the Pharmaceutical Industry of Bangladesh

Abstract

Recent studies show that direct emission from drug manufacturing as a source of much higher environmental discharges that, in some cases, greatly exceed toxic threshold concentrations. Also, the wastewater from drug manufacturers causes river sediment, groundwater and drinking water polluted. Therefore, proper practice and effective implementation of Corporate Social Responsibility (CSR) is necessary for this industry. The basis of what we consider to be the modern definition of CSR is rooted in Carroll’s Pyramid of CSR. This paper aims to investigate the level of CSR activities practiced in the pharmaceutical industry of Bangladesh by using Carroll’s Pyramid. This study also targets to confirm the steps of Carroll’s pyramid. In line with the objectives, this paper firstly reviews the literature of CSR and Carroll’s Pyramid. Second, a study is planned by conducting in-depth interviews of 20 top-level executives of Dhaka Stock Exchange (DSE) enlisted seven pharmaceutical companies in Bangladesh. The analysis results that pharmaceutical companies are not following the hierarchy of Carroll’s pyramid and in some cases, the steps overlapped each other. Also, the top management of most of the pharmaceutical companies has a lack of understanding of the proper CSR concept. The study provides two important policy implications. First, pharmaceutical companies should follow Carroll’s pyramid to implement better CSR to generate above-average returns. Second, companies can create a structured industry norm to practice CSR like the banking sector in Bangladesh to get shared benefits.