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A CSR Research Study on Gilead Sciences

A CSR Research Study on Gilead Sciences

Jason Krobatsch
Professor Brown
Strategic Corporate Social Responsibility
April 26, 2016

A CSR Research Study on Gilead Sciences

Table of Contents
Abstract... 3
Introduction. 3
Company Overview 4
Sustainability Report Analysis.... 6
Other CSR Efforts... 9
Case Study: Sovaldi...... 13
Discussion..... 15
CSR Suggestions... 15
References. 18

A CSR Research Study on Gilead Sciences

3
Abstract

Pharmaceutical companies walk a delicate line when it comes to corporate social


responsibility (CSR). Gilead Sciences is no exception. While the company is in the business of
helping others, a weak CSR plan, excessive profits, and selling the most expensive drug on the
market, made the company a target for criticism. Although the company published a CSR report
in 2014, they have not published an updated version, and this was done only after Gilead came
under fire after experiencing a windfall rooted in an overpriced medicine. Gilead can and is
moving forward, but they must decide whose interest is at the heart of the company.
Introduction
The goal of CSR is to take a firms mission further than just profit, and improve the longterm stability of a firm by acting in the interest of shareholders and the communities which the
firm impacts (Chandler & Werther, 2014). Amidst corporate corruption and shady ethics, CSR
has gained increased attention in the past decade (ORiordan & Fairbrass, 2014). The
pharmaceutical industry is a sensitive area when it comes to CSR (ORiordan & Fairbrass, 2014).
Questions arise such as: Is animal testing ethical? How much profit is fair? Who are the
stakeholders?
Pharmaceutical companies, by nature of their product, are in the business of doing good.
However, they are also in business to make a profit and are responsible to their shareholders as
well. When a pharmaceutical company makes a new product, they decide the price. This can lead
to huge profits, but also increased costs for patients and insurance providers.
Research for new medicines is a costly and ongoing process. Research and clinical trials
may be conducted and find that a drug is ineffective. Pharmaceutical companies claim huge
profits in the name of research and development. However, when patients cannot afford a
lifesaving drug, especially when it is inexpensive to produce, a companys mission and ethics
come into question (ORiordan & Fairbrass, 2014).
Companies who fail to publish credible CSR reports often become targets by NGOs,
journalists, and consumer advocacy groups (Nussbaum, 2009). A strong CSR plan can help
many aspects of a business and advance their business plan. CSR can help to (a) build a strong
corporate reputation, (b) contribute to overall business goals, (c) attract and retain a motivated
workforce, (d) reduce operating costs, (e) reduce regulatory oversight, (f) support marketing
objectives, (g) build a strong community relationship and (h) leverage current corporate social

A CSR Research Study on Gilead Sciences

initiative efforts and investments. Experts agree that (a), (c) and especially (e), together with
remaining trustworthy for patients in clinical trials, are among the most relevant ones for the
pharmaceutical industry (Nussbaum, 2009, p. 69).
There are also several obstacles pharmaceutical companies may face when it comes to
CSR, including (a) integrating ethics and business strategy, and leading by example; (b) shifting
from secrecy to communication and dialogue; (c) viewing CSR as an opportunity, not an
obstacle; (d) extending CSR to business partners, suppliers and customers and (e) overcoming
insufcient regulatory guidelines to distinguish compliance (doing whats legal) and ethics
(doing whats right). Another key challenge is drug affordability, as governments are
increasingly shifting health care costs to patients (Nussbaum, 2009, p. 75). Additionally, CSR
plans on a global scale may have unexpected consequences. For example, a company may
provide medical training to healthcare workers in a developing nation. However, doing so may
marginalize other healthcare workers who did not receive the training this company provided
(Droppert & Bennett, 2015).
Many companies publish a CSR plan that may appear to be substantial to an uninformed
public. However, a company needs to evaluate the plan in its entirety to see the true value and
authenticity of their CSR mission. The following examines Gilead Sciences CSR efforts,
company mission, and issues relating to patient access to medicine.
Company Overview
Gilead Sciences is a United States based biopharmaceutical company founded and
headquartered in Foster City, California. The company began operation in 1987 and is
incorporated in the state of Delaware. Gilead began being traded publically in January 1992 on
the NASDAQ stock market (Gilead Sciences, 2016). As of April 26, 2016, one share cost
$101.31 (Wall Street Journal, 2016).
Although the company does not have a clear mission statement, they state in a frequently
asked question section of their website that, Gilead Sciences is a research-based
biopharmaceutical company that discovers, develops and commercializes innovative medicines
in areas of unmet need (Gilead Sciences, 2016). A biopharmaceutical, also known as a
biological medical product or biologic, differs from other pharmaceuticals because they are made
from sources such as human, animal, or microorganism sources. They are intended to treat,
prevent, or diagnose diseases (U.S. Food and Drug Administration, 2016). Examples of biologics

A CSR Research Study on Gilead Sciences

include vaccines, gene therapies, cellular therapies, and allergenic extracts, as well as blood,
cells, and tissues used in transplants or transfusions (U.S. Food and Drug Administration, 2016).
Gileads 22 products are broken down into several categories (Gilead Sciences, 2016):

HIV/AIDS
o Atripla
o Complera
o Emtriva
o Genvoya
o Odefsey
o Stribild
o Truvada
o Tybost
o Viread
o Vitekta
Liver Diseases
o Harvoni
o Sovaldi
o Hepsera
o Viread
Cardiovascular
o Letairis
o Lexiscan
o Ranexa
Inflammation/Respiratory
o Cayston
o Tamiflu
Hematology/Oncology`
o Zydelig
Age-Related Muscular Degeneration
o Macugen
Antifungal
o AmBisome
Gilead is also in various phases of research and development for four HIV/AIDS

products, nine liver disease products, seven hematology/oncology products, three cardiovascular
disease products, six inflammation/respiratory products, one diabetic nephropathy product, and
one Ebola virus product (Gilead Sciences, 2016).
In 2015, the company had $32 billion in revenue, with a comprehensive income of $17.8
billion. Their 2015 revenue reflected an increase of 28.7% from 2014s revenue of $24.9 billion.
This is a significant increase from the previous three years, where the companys revenue was
near $10 billion each year (Wall Street Journal, 2016).

A CSR Research Study on Gilead Sciences

Sustainability Report Analysis


Gileads website includes Responsibility as one of seven main tabs. Once opened, this
page contains a rabbit hole of information. General themes of these pages are patient access, both
within the United States and globally, contributions, and policy perspectives (Gilead Sciences,
2016). Reports include a 2014 Sustainability Report and a 2015 Annual Review.
The 31-page 2014 Sustainability Report is broken down into four categories: People,
products, giving, environment. While Gilead highlights their accomplishments, outsiders may
observe that Gilead is doing something but could be doing much more. Although Gilead includes
metrics, they often suffer from vagueness.
Gilead begins the 2014 Sustainability Report discussing their employees. They highlight
an eight-week employee Healthy Holidays program, to help employees stay fit during the
holiday season. They also provide health screenings, flu vaccines, and a $250 yearly gym
reimbursement (Gilead Sciences, 2015). Some benefits are exclusive to Gileads headquarters in
Foster City. These employees receive access to an on-site fitness center, as well as a weekly
farmers market. The report boasts that lab employees receive an average of seven hours of
safety training per year. This benefit is something that would be helpful to employees, but
ultimately is in Gileads best interest. Gilead has an on-site MBA program at their headquarters,
where 24 employees earned their degree in 2014 (Gilead Sciences, 2015). They also offer up to
$5,250 per year towards courses that will improve employees professional skills (Gilead
Sciences, 2015, p. 10). This is an instance where Gilead could be clearer. Although this is not a
full explanation of benefits, the company could include comparison metrics to show
improvements or future goals/commitments. Lastly, the report claims to value diversity and
inclusion, but does not include a diversity policy. They report 51% of Gileads employees are
female and 49% are male. This does not discuss if this is nationally or internationally, nor does it
discuss a commitment to pay equality. Below that, a chart shows that, of Gileads United States
employees, 51% are Caucasian, 35% are Asian, 8% are Hispanic, 4% are African American, and
2% identified as other (Gilead Sciences, 2015).
The second part of Gileads 2014 Sustainability Report discusses the companys
products. This section primarily discusses environmentally friendly practices the company has
implemented during their drug production. Gilead highlights a case in which they were able to
reduce solvent use in the production of one drug by 50% (Gilead Sciences, 2015). However, this

A CSR Research Study on Gilead Sciences

is only one drug, when the company produces 21 others. The report makes a clear distinction
between organic solvents and green solvents. Organic solvents are petroleum based. Green
solvents are different because they can be reused or recycled (Gilead Sciences, 2015). While
only one of Gileads products uses a petroleum based solvent, their report is still filled with
greenwashing. Gilead has implemented solvent recovery and recycling practices in select active
pharmaceutical ingredient manufacturing systems, which has reduced the companys solvent
usage in certain products by up to 70 percent (Gilead Sciences, 2015, p. 17). The report also
states, Gilead conducts environmental risk assessments on our products prior to seeking
marketing authorization from the European regulatory agency. These assessments are designed
to predict the amount of active pharmaceutical ingredients that may enter the environment, along
with the impact these compounds may have (Gilead Sciences, 2015 p. 17). Although Gilead is
conducting these tests, it is purely a legal requirement from the European Medicines Agency
(European Medicines Agency, 2015).
Section three of Gileads 2014 Sustainability Report discusses giving. The first three
sentences of this section are very telling. In 2014, Gilead significantly increased funding to help
improve the lives of people suffering from serious diseases who lack access to the treatment they
need. We know we need to do more. We also know we are making progress in improving
worldwide access through Gileads Patient Assistance Program and tiered-pricing model
(Gilead Sciences, 2015, p. 19).
Gileads philanthropic efforts are splintered into many different categories.

Beliefs
o People of all backgrounds should have access to the same healthcare.
o Medicines should be available to all people who need them.

Actions
o Works with partners and grantees to help patients overcome barriers to sufficient
care.
o Assists community organizations by supporting disease awareness programs.
o Partners with community organizations to raise awareness about pre-exposure
prophylaxis (PrEP) among high risk HIV populations.

A CSR Research Study on Gilead Sciences

o Tiered pricing around the world. Gilead sets prices according to a countrys specific
situation, even if those prices result in little or no profit to us (Gilead Sciences, 2015,
p. 20).
o Voluntarily licensed medicines to generic drug manufacturers in India, China, and
South Africa.
o Launched the Frontlines of Communities in the United States (FOCUS program) in
2010 to address barriers to HIV and HCV care.

Has tested 1.5 million people for HIV through this program (does not cite
whether this was in 2014 or since the programs 2010 inception)

o U.S. patient support and insurance education program


o Partners with the World Health Organization to make AmBisome (amphotericin B
liposome for injection) available at discounted prices in developing countries heavily
impacted by visceral leishmaniasis, a parasite-borne disease (Gilead Sciences, 2015,
p. 21).
o Works to educate healthcare professionals and community health organizations

Educated 573,000 U.S. healthcare professionals (timeframe not provided)

o In 2014, the Gilead Foundation granted $10,023,328 to about 80 organizations


across Africa, India, Latin America and the Caribbean, and the United States (Gilead
Sciences, 2015, p.22). This is double their contributions of the previous year. While
this is a large amount, it is only a fraction of their billions in profit.
While Gilead has its hand in many charitable areas, it fails to note any significant
contributions. The majority of their efforts are made through partnerships, but Gilead does not
say what kind of resources they provide and in what quantity. The metrics the company does cite
are largely irrelevant or insignificant. A sidebar in the report cites that, each year, as many as
400,000 women of the Democratic Republic of Congo are raped and that through a donation by
Gilead, Global Strategies has provided 1,500 rape kits to these women, to date (Gilead Sciences,
2015, p. 22). While is it is good these women have been helped in part by Gileads donation,
Gilead is exploiting the situation and their donation. The number of women assisted to date is
less than .375% of the estimated number of women raped yearly in the Democratic Republic of
Congo.

A CSR Research Study on Gilead Sciences

The fourth and most robust section focuses on environmental sustainability. Gilead
claims that their environmental efforts differ based on each location. They initially give a lot of
detail regarding their main, 28 building campus in Foster City, CA, about 20 miles from San
Francisco (Gilead Sciences, 2015). About 4,000 people are employed here, making up half of
Gileads global workforce. Gilead implemented variable airflow exhaust hoods, which in total
save enough energy to power 700 households annually (Gilead Sciences, 2015). They also aim to
reduce total water consumption on this campus by 15% by 2015. This is necessary because of the
drought in CA, and a follow-up report has not been made. Gilead has a variety of transportation
programs, including a shuttle to a nearby transit center, a rideshare program, a $100 monthly
mass transit voucher, 84 electrical car charging stations, and an onsite bike repair service (Gilead
Sciences, 2015). The report then highlights environmental changes at six other locations. Some
of these include a reduction in liquid nitrogen use, intense recycling programs, and sustainable
buildings. Although these improvements affect more than half of Gileads workforce, they
operate in 43 different cities globally and fail to address environmental issues as a whole, even in
a broad sense.
This report analyses Gileads 2014 sustainability, a year in which their revenue more than
doubled from the previous year (Wall Street Journal, 2016). A 2015 Sustainability Report has not
yet been made public. The 2014 Sustainability Report provided readers with an email address for
further sustainability inquiries, however, multiple attempts to contact the company resulted in an
invalid address message.
Other CSR Efforts
Outside of the 2014 Sustainability Report, Gilead lists their other responsibility efforts.
Some are covered in the 2014 Sustainability Report and others are not. Below, each program is
briefly explained, along with benefits and available metrics.

United States Patient Access


o U.S. Advancing Access

Advancing Access provides assistance to appropriate patients who are


uninsured, underinsured or who need financial assistance to pay for the
medicine (Gilead Sciences, 2016).

Access to insurance counselors

Co-pay coupon program

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o Truvada for PrEP Medication Assistance Program

The Truvada for PrEP Medication Assistance Program assists eligible HIVnegative adults in the United States who do not have insurance obtain access
to Truvada (emtricitabine and tenofovir disoproxil fumarate) for PrEP (preexposure prophylaxis) (Gilead Sciences, 2016).

Phone number provided but no other information

o Gilead Solutions

GileadSolutions is a comprehensive set of programs designed to help patients


navigate the reimbursement process and assist those without adequate
financial resources identify alternate means of support for access to Letairis
(ambrisentan) (Gilead Sciences, 2016).

Phone number provided but no other information

o The Cayston Access Program

The Cayston Access Program assists people with cystic fibrosis and members
of their care team with insurance verification, referral to participating
specialty pharmacies, claims support and co-pay assistance. As part of this
program, Gilead also provides assistance to qualified patients in the United
States who cannot afford to pay for Cayston (aztreonam for inhalation
solution) (Gilead Sciences, 2016).

Developed in conjunction with the Cystic Fibrosis Foundation

o Ranexa Connect

Ranexa Connect is a support network that helps patients, physicians and


pharmacists with reimbursement and coverage questions about Ranexa
(Gilead Sciences, 2016).

o Support Path for Sovaldi and Harvoni

Support Path assists eligible hepatitis C patients in the United States access
Sovaldi (sofosbuvir) or Harvoni (ledipasvir/sofosbuvir) (Gilead Sciences,
2016).

Insurance help hotline

Co-pay assistance

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o Zydelig AccessConnect

Gilead is committed to ensuring that patients with CLL, FL and SLL can
access Zydelig and has launched Zydelig AccessConnect to provide assistance
to appropriate patients who are uninsured, underinsured or who need financial
assistance to pay for the medicine (Gilead Sciences, 2016).

Co-pay assistance program

Informational hotline

Will provide medicine if a laps of coverage occurs for more than five
days

Analysis: All of Gileads United States based programs focus on providing information
and assistance to people regarding paying for their medicine. The separate programs are
excessive, since the majority of them follow Gileads mission for their original U.S. Advancing
Access program. Gilead could streamline these programs to make it easier for patients and
investors to understand.

Developing World Access


o HIV/AIDS Management

Gilead provides two antiviral therapy drugs to consumers overseas at


discounted rates that results in little to no profit for Gilead. They provide these
drugs through a partnership with regional business partners and organizations
or by licensing the medicine to be produced at a low cost by manufactures in
India, China, and South Africa. In 2015, 8.7 million people in developing
countries had access to Gileads HIV medicines (Gilead Sciences, 2016).

More than 60 percent of the people now treated for HIV in


developing world countries receive Gilead medicines (Gilead
Sciences, 2016).

130 countries are included in access efforts, home to nearly 95


percent of people with HIV in the developing world (Gilead Sciences,
2016).

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o Hepatitis Treatment

Gilead is working with regional partners to introduce branded Sovaldi and


Harvoni in low- and middle-income countries, prioritizing those with the
greatest disease burden. The company also works with 11 generic drug
manufacturers in India to produce high-quality, low-cost generic versions of
its chronic hepatitis C medicines for use in 101 developing countries Gilead
Sciences, 2016).

o Visceral leishmaniasis (VL) Treatment

In December 2011, we announced an expansion of this partnership by


donating 445,000 vials of AmBisome to treat more than 50,000 people over
five years. The donation, equivalent to $8 million in product if sold at a noprofit price, supports national plans to control and eliminate the disease
(Gilead Sciences, 2016).

Gilead also states that there are 400,000 cases of VL per year. While
they are helping one-fifth of people infected with this disease, there is
more they could be doing.

o Access Partnerships

We work with a network of regional business partners, generic licensing


partners, the Medicines Patent Pool and other stakeholders to expand
treatment globally (Gilead Sciences, 2016).

Analysis: Gilead uses their knowledge on a global scale by making certain medicines
accessible through licensing agreements with generic manufactures. They also operate off a
tiered pricing scale globally. However, metrics fail to be provided in some instances. In others,
the information is weak or outdated. Additionally, people in developed countries are being
charged much more for the same drugs.
Gilead claims to have donated $280 million worldwide, but does not say over what
course of time (Gilead Sciences, 2016). Regardless, this stands in the shadow of their $32 billion
revenue. They also provided 1,200 grants globally through the Gilead Foundation since its
inception (Gilead Sciences, 2016). Gilead discusses grants and the Gilead Foundation twice on
their responsibility page, but they are one in the same. The grants work to educate or provide
medicine to people based off of Gileads disease focus areas. A benefit of this is that community

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organizers can submit proposals for what would work best in their area of the world. However,
this also benefits Gilead by allowing them to not be directly tied to a program. Gilead would
receive very little backlash if they didnt renew a grant, but would receive much backlash if they
started a program in a developing country on their own and then decided to suspend it.
Gilead has a very hands-off approach when it comes to corporate giving. Their main
services for the people are: information about access to care, co-pay assistance programs,
licensing agreements to produce drugs cheaper for developing countries, and providing grants.
However, we must also examine how Gilead generates their income.
Case Study: Sovaldi
In 2014, Gilead came under fire when it released Sovaldi, a new medicine to be included
with others as part of a hepatitis C treatment. Unlike hepatitis A and hepatitis B, there is no
vaccine available for hepatitis C. Sovaldi works by blocking the protein the hepatitis C virus
needs to reproduce (Peterson, 2014). Long-term effects of hepatitis C include serious liver
damage or liver cancer. Sovaldi was shown to cure hepatitis C in 94% to 99% of cases in as little
as 12 weeks. Until this point, hepatitis C management included a long series of shots or other
long-term drug treatments, with cure rates of only 50% to 60% (Court, 2016).
When it was first released, Sovaldi cost $84,000 for a 12 week treatment. This averages
$1,000 per day. Stakeholders had many opinions regarding the cost of the treatment. An
estimated 3.2 million Americans have the hepatitis C virus (U.S. Food and Drug Administration,
2014). The most common injectable treatment had severe flu-like side effects, so many patients
chose not to continue with treatments, which could lead to liver cancer over the long-term.
Doctors were pressured by insurers not to prescribe Sovaldi as often. However, doctors wanted
to prescribe the treatment because it was in the patients best interest. Put in perspective, if each
of the 3.2 million people believed to be living with hepatitis C were treated with Sovaldi, it
would cost nearly as much as the $260 billion spent in 2013 on prescription drugs in the United
States (Peterson, 2014). Gilead admitted the cost of the drug was high, but defended it by saying
it eliminates the need for long-term hepatitis C treatments and saves in the cost of treating longterm hepatitis C complications, such as liver cancer (Peterson, 2014). About half of people with
hepatitis C are on veterans, prisoners, uninsured or on Medicaid, so taxpayers would be
responsible for a portion of the cost (Peterson, 2014). Lawmakers, possibly influenced by the
cost Sovaldi would have on Medicaid, probed Gilead regarding the cost. Gilead said it tiers its

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pricing based on a country's per-capita income. For example, people in Egypt pay about $900 for
a full treatment, 99% less than people in the United States (Peterson, 2014). Based on this
structure, people in the United Kingdom would pay $57,000 for a full treatment and people in
Germany would pay $66,000 (Peterson, 2014).
Sovaldi was initially being developed by a company named Pharmasset. In 2011,
Pharmasset projected the drug would sell for $36,000 for a 12 week treatment. However, Gilead
bought Pharmasset, then hiked the price of the drug, which was not yet being produced (Court,
2016).
Although Gilead dropped the price of Sovaldi, it still lists for $81,000. In 2015, Sovaldi
topped the list for the most expensive prescription drugs in the United States. This was followed
by Harvoni, another hepatitis C drug produced by Gilead, which is a combination of Sovaldi
with another hepatitis C drug (Court, 2016).
The United Stated Senate Finance Committee launched an investigation into the cost of
these medicines. They found that a return on investment for purchasing Pharmasset and
additional research were not key in determining the price of Sovaldi. However, they note Gilead
spent billions of dollars in the purchase of Pharmasset and in the clinical testing of Sovaldi
(Court, 2016). In a statement, Gilead said the prices of both Sovaldi and Harvoni reflect the
innovation of these new drugs and that curing hepatitis C will result in savings over the long
term (Court, 2016). Internal documents showed Gileads motive was profit based, even as their
own analysis suggested that a lower cost would allow more patients to be treated (Court, 2016).
Despite the controversy, some economists believe the price is fair. Craig Garthwaite, a health
economist who teaches at Northwestern University said, We always wanted a treatment for hep
C. We got one, now we have to pay for it (Court, 2016).
Consumers and insurance companies rarely pay the full list price of drugs. During March
2016, customers and insurance providers paid anywhere between $24,455 and $75,600 for a
treatment of Sovaldi (Court, 2016). This is due to negotiations with insurance providers and
patient access programs offered by Gilead. Eligible uninsured people can obtain Sovaldi at no
cost. However, people with insurance may be at a disadvantage. Gilead offers Sovaldi half off to
Medicaid customers. Once Medicate pays their part, customers still need to pay between $8,000
and $10,000 (Court, 2016). This is similar for people with high insurance deductibles. Many
factors determine the actual patient cost. This disparity highlights major issues underlying the

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United States healthcare system. Even is insurance providers cover the drug, it results in higher
premiums for all customers.
It is important to note Gileads revenue more than doubled the year Sovaldi was released
and has grown substantially since (Wall Street Journal, 2016). And although Sovaldis costs are
criticized, they are not as expensive as cancer treatments, a possible result of hepatitis C (Court,
2016). Cancer treatments are not considered pharmaceuticals and not factored into drug costs
since they are administered by a doctor (Court, 2016).
Discussion
The pharmaceutical industry faces a delicate situation in terms of CSR. While these
companies are in the business of doing good, they are also responsible to shareholders and use
profits to develop new medicines.
Gileads CSR efforts are very superficial. Their 2014 Sustainability Report lists some
positive things the company is doing, although it was likely made in response to outrage over the
cost of Gileads new drug, Sovaldi. The efforts made were existing plans that Gilead chose to
call highlight.
Gilead does excel in philanthropic efforts, such as grants and donations. They also license
drugs to manufactures oversees in order to produce them for developing countries at an
affordable rate. Their tired pricing also helps makes drugs affordable to people in developing
countries. However, this has resulted in extremely high prices in the United States and other
developed countries.
In order for Gilead to stay in favor of stakeholders, they need to develop an authentic
CSR plan. It is not necessary for Gilead to cover all areas of CSR, but they should pick a few and
excel in these areas. At first glance, their CSR efforts seem sufficient. But looking slightly
deeper into the information reveals an unauthentic and unorganized approach. As other
pharmaceutical companies develop stronger CSR plans, Gilead will be left behind and highly
criticized if they do not revise their efforts.
CSR Suggestions
Gilead should streamline and revise their CSR efforts to be more authentic. The
following plan uses existing efforts, along with some new ideas, to create a genuine and
comprehensive CSR plan.

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New CSR Mission: Gilead strives to make a progressive impact on the health of people
across the world, focusing on access to care and caring for the environment.
When Gilead reports on their CSR advancements, they should focus on the most
important points. Information about a weekly farmers market should not be the same length as
information about HIV testing in developing countries. Gilead needs to focus on doing some
things perfectly, not everything poorly. They also need to provide metrics. For example, Gilead
says they phased out single-use shipping containers for reusable ones, but do not say not say how
much waste was reduced.
Because Gilead is a global company, they face some difficulties streamlining CSR
efforts. However, they can create company-wide campaigns that will look more authentic. By
averaging statistics, locations that cannot participate in a CSR effort will be averaged with the
companys efforts as a whole. Gilead could implement the following:

Reduce paper use by 20% by 2020

Run operations by at least 50% renewable energy by 2020

Use florescent lightbulbs in 80% of locations by 2020

A solar energy effort by Gilead is one way the company can be environmentally
conscious while also saving money in the long run. Since Gilead has a large campus in
California, much of the renewable energy efforts can be implemented here, to offset other
locations around the global there this is not possible.
Gilead should also streamline their patient access plans. In the United States, Gilead
provides insurance assistance and co-pay discount plans for most of their products. However,
they have different names for these programs, even though they accomplish the same goal.
Gilead could create a directory of the contact numbers, but house it under the same program
name. Although this will appear to be less patient access programs on the website, it will be one,
strong, authentic program.
Gilead should do the same with their efforts in developing countries. Instead of giving
vague descriptions, Gilead should give hard numbers about what they are really doing. Although
licensing agreements and tiered pricing isnt an extremely noble effort, it is a step to help people
and Gilead should highlight this. They also need to stop double dipping, by including grant

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statistics under two separate sections of the website. Gilead provided 80 grants in 2014. They
should highlight this and describe some, if not all, of the grant programs.
It appears Gileads CSR efforts were unauthentic and rushed. They tried to mirror CSR
plans of other companies and did not focus on their specific industry. Instead of looking at
everyone else, Gilead should focus on what they do well. The company should also consider how
much they charge for products, or face more investigations and government oversight.

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exploratory study of multinational pharmaceutical firms. Globalization & Health, 11(1),
1-8. doi:10.1186/s12992-015-0100-5
European Medicines Agency. (2015). Environmental Risk Assessment of Medicine. European
Medicines Agency. Accessed from:
http://www.ema.europa.eu/docs/en_GB/document_library/Brochure/2013/03/WC500140
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