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Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR)
Models and Theories in Stakeholder Dialogue
          
 ABSTRACT        
     The pharmaceutical sector, an industry already facing stiff tests in the form of intensifiedcompetition and strategic consolidation, has increasingly become subject to a variety of otherpressures. Significantly, in common with other large-scale businesses, pharmaceutical firmsare being exhorted to respond positively to the challenge of corporate (social) responsibility(CSR). Clearly, for individual managers within pharmaceutical firms the issue of CSR in theform of closely connected questions relating to patient access to health treatment, patentprotection and affordability presents major problems. Part of the burden of addressing thedemands of CSR is the need to engage effectively with a range of stakeholders. Individualmanagers in pharmaceutical companies have to confront the complicated task of choosingwhich stakeholder dialogue practices to adopt and why. This real-world managementpredicament runs parallel to an academic interest in CSR stakeholder dialogue theory andmodels. Accordingly, this paper contributes to primarily to the academic debate by reviewingpast attempts to theorise CSR and stakeholder dialogue, identifying gaps and weaknesses, andproposing a diagram-type model as a refined prototype framework. However, ultimately theintention is to offer guidance to business managers. The model proposed here contains thosefactors considered most relevant for describing, analysing, and explaining the CSRstakeholder dialogue practices of pharmaceutical companies, with the intention of conductingcomparative international research. It is envisaged that the model outlined will be employedin future empirical research concerning stakeholder dialogue practices amongst UK andGerman pharmaceutical firms

           
 
INTRODUCTION               
 Given the critical attention that ‘big business’ in general and pharmaceutical companies inparticular have received from inter alia the media, Governments and non-governmentalorganisations (NGOs), the pharmaceutical sector has increasingly come under the pressure ofresponding to the challenge of corporate (social) responsibility (CSR). This trend is setagainst a background in which the industry is already under considerable pressures arisingfrom intensified competition and strategic consolidation. Clearly, CSR and the closelyconnected questions of access to health treatment, patent protection and affordability presentmajor concerns for managers of pharmaceutical companies today. Part of the burden ofaddressing the demands of CSR is the need to engage effectively with a range of stakeholders.Individual managers in pharmaceutical companies have to confront the complicated task ofchoosing which stakeholder dialogue practices to adopt and why. This real-worldmanagement predicament runs parallel to an academic interest in CSR stakeholder dialoguetheory and models.To develop the points introduced above, it could be argued that the general public, whetherrightly or wrongly, typically holds a negative perception of ‘big business’ (Acutt 2004:306;Clark 2000; Crane & Matten 2004:12; Deresky 2000:16; Greenfield 2004; Handy 2003:78;Hoertz Badaracco 1998; Kotler and Lee, 2005:221-2; Weiss 1998:4;



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