The paradox of pharmaceutical CSR: The sincerity nexus

Abstract

Whether characterized as corporate social responsibility (CSR), business ethics, or some other name, best practices in a given industry often fall short, thus causing efforts of companies seeking to improve their own CSR practices to fall short as well. A typical CSR model uses philanthropic donations to demonstrate the company's commitment to social welfare. Even a strategic version of CSR falls short of what it could achieve. To be sure, these can be important efforts worth celebrating, but we seek to raise the bar higher. Our case study focuses on the pharmaceutical industry because of our experience working in and studying that industry. In Section 2, we identify the typical CSR efforts of pharmaceutical companies. Dissatisfied with the scope of current efforts, Section 3 switches from an inductive approach to a deductive one in which we rely on scholarly literature and some exemplary benchmarks to propose a stronger model of corporate ethics. At the heart of this model is the claim that optimum instrumental benefits accrue to corporate CSR actions when they are undertaken for sincere aims rather than for instrumental ones. Section 4 then explains how this framework provides a way for pharmaceutical companies to embrace a more robust model of corporate responsibility that could be extended to other industries as well.