CORPORATE SOCIAL REPONSIBILITY REPORT ON

PFIZER PHARMA
 INTRODUCTION

Pfizer is an American based, one of the largest pharmaceutical company of the world. This
company deals in life saving drugs and capture a bigger share in the pharma market across the
globe. The commonly used medications manufactured by Pfizer are Celebrex, Listerine and Viagra.
Due to its high revenue generation, Pfizer is highly attractive to investors across the world. Being
one of the leading pharma company, Pfizer keeps special care of its CSR policies and thinks beyond
its own profits and sustainability. (BREWER, 2014), explained that Pfizer is well aware of the fact
that as a community health conscious company
 CORPORATE SOCIAL RESPONSIBILITY

CSR is a concept under which firms consider the society interest and find themselves
accountable for the influence of their action on employees, and all connected people like
stakeholders, and most considerably on the environment. However, there is no single and
prosper definition of the Corporate Social Responsibilities but still it is an evolving code of
business conduct and people approach CSR to achieve their competitive edge. It has
been redefined by the organizations as the need of society and business. CRS is
considered as the balancing act where the focus of organization is fixed on cultivating the
line between social responsibility and sustainability
 CORPORATE SOCIAL RESPONSIBILITY
MODELS

Three Basic CSR Models

Carroll’s CSR Pyramid

Mendelow’s Matrix for CSR
• Friedman’s Theory of CSR
 CARROLL’S CSR PYRAMID

There are four basic responsibilities that should be covered in

the CSR policy of any organization. These are as mentioned
below;

• Philanthropic
• Ethical
• Legal
• Economic
 MENDELOW’S MATRIX
CSR MODEL OF STAKEHOLDERS
Box A:
• Represents the key players who are regarded as the high interest and high power group and
for any business goodwill, this group should be kept highly engaged with the company’s
activities.
Box B:
• Presents high interest and low power group is the one that always show immense interest
in the working and strategies of any company but are least interested in influencing the
working of that company.
Box C:
• Low Interest and High Power group is the one that have all the powers to enter the high
interest group with their power to impact the strategies of that company but are not much
interested in doing so.
Box D:
• Low interest and Low Power group are the ones that hold no powers to alter the
workings and strategies of their company so that is why they are least interested in
changing the work methodology of their company.
 FRIEDMAN’S THEORY OF CSR
According to (Barlas, 2016), Milton Friedman’s model
pf CSR is completely different from the theories and
models given by other scholars. According to Friedman,
business are bound to perform only one corporate social
responsibility and that is to utilize its resources wisely
just in order to generate maximum profit for its
shareholders but there should be no deception of fraud
involved in the whole procedure. So, we can say that
businesses have to concentrate only on the profit
generation activities and should play a fair game because
through more profit, they can pay back to their
shareholders to whom they are answerable.
 CARROLL’S MODEL OF CSR AT PFIZER PHARMA

Economic Analysis
• The CSR policies related to economic analysis of Pfizer can be seen by analyzing its
annual revenue and financial reports for the first quarter of 2109.
• According to recent survey, the first quarter of 2019 shows a dynamic increase in the
annual growth of Pfizer which is approximately 5% in the very first quarter. This leads
Pfizer to generate an annual revenue of $13.1 Billion. Further analysis has revealed that the
raise in annual growth was brought to occur by 7% contribution from the Biopharma
groups while 1% operational growth was made due to Upjohn.
SOME ECONOMIC FACTS AND FIGURES
 STAKEHOLDER’S ENGAGEMENT AT PFIZER

As depicted by (Peter Einstein, 2012), Pfizer performs the

following responsibilities in order to satisfy its stakeholders
and keeps their satisfaction at the top of the list of their CER
policy;

 Analyzing customer’s needs

 Introducing life- saving drugs like Prevnar 13, Xalkori
 Maximizing its profits
 Allocating financial resources effectively so that
maximum output can be generated out of them
 Assuring a cut down on operating expenses in order to
confirm consumer friendly prices of its medications.
PFIZER SOCIAL RESPONSIBILITY RELATED TO
ENVIRONMENT
 SUPPLY CHAIN ENVIRONMENTAL SUSTAINABILITY
GOALS

• The basic goals of Pfizer related to supply chain sustainability till 2020 are
mentioned below;
• Elevating its key suppliers to 100% who can understand and collaborate
Pfizer’s supplier code of conduct and can oblige by the principles set by the
global pharmaceutical company’s initiative

• Preparing 100% of its key suppliers to maintain greenhouse emissions and

knowledge of waste management and appropriate use of water
• Assuring reduction goals for 90% of its key suppliers so that a clean and green
atmosphere can be maintained.
CSR AND CUSTOMERS OF PFIZER
 PHILANTHROPIC SERVICES BY PFIZER

• Pfizer foundation donated $2.75 million in the form of cash for the sufferers of disaster and
misery
• Issued 2200 generators to those employees in Puerto Rico who were victim of Hurricane
Maria
• Made access to cancer treatment easy and affordable to the citizens of sub- Saharan
Africa
• Pfizer RxPathways distributed 1.8 million prescriptions free of cost to help 250,000
patients
• Exceeded the medicine donation by 700 million which was an antibiotic used to treat
trachoma.
 CSR CHALLENGES FACED BY PFIZER

• Pfizer becomes a center of focus for people and they started raising questions against the marketing practices and
high process of Pfizer’s medicines. The company was under intense stress due to a wave of complete rejection from
the society and analytics.
• The failed drug was “Torcetrapib”, which was supposed to be the best medication for cardiac arrest and strokes due
to high HDL levels. But further research on Torcetrapib and another cholesterol lowering drug Lipitor combination
proved to be fatal as 82 patients who were treated with this so called remarkable combination died after taking this
medication

. Supply Chain Problem Faced by Pfizer

• (Fry, 2018), reported that in the beginning of 2018, Pfizer faced a great problem related to its drug supply which
arose a question about the medicine supply system of this company. Reports have claimed that in last February 2018,
the major hospitals faced a remarkable shortage in the supply of ‘Bupivacaine’ which is used as local anesthetic
during baby delivery. The shortage of this drug persisted for almost three months and developed an argument among
the people from medical sciences background about the reputation of Pfizer as a pharma company that failed to
oblige by its social responsibilities.
 PFIZER RESPONSE TO CSR CHALLENGES
• As depicted by (Ana Adi, 2015), Pfizer introduced an advanced and improvised supply chain management strategy where the
whole route of medicine was monitored by the supply chain department of the company

• (Banker, 2018) described that Elevating its key suppliers to 100% who can understand and collaborate Pfizer’s supplier code of
conduct and can oblige by the principles set by the global pharmaceutical company’s initiative

• Pfizer arranges for a digital supply chain framework by implementing latest technology in order to confirm timely supply of
medicine to the exact place and at ultimate time. to make timely supply possible Pfizer invested in buying middleware
transportation from GT Nexus that would be used to deal with the medicine careers

• Pfizer has invested high budget in updating its R&D department so that each and every medicine manufactured at Pfizer should
undergo prior research before being launched into the market. Moreover, Pfizer is collaborating with different universities,
research labs and other pharma companies in introducing innovative medication. All these actions are planned so that the
previous negative impact on Pfizer due to the harmful results of its products can be overcome by producing highly effective
life- saving drugs.
 SOME RECOMMENDATIONS TO PFIZER

• It is advised to the corporate responsibility managers to strategically outline the activities of CSR.
• It is also recommend to focus on Corporate Social Responsibility Programs by articulating the relevant
philosophies of CSR into the guiding principles of the organization, making sure that the higher official must
look into the matter of Corporate Social Responsibility Programs, and also incorporates CSR programs into the
long-term strategic planning of the organization

• Pfizer should activate the research and survey department of their company so that detailed market surveys
should be conducted which will facilitate the manufacturing department regarding the manufacture of medicines
that are more in demand and might face a run short in near future.
• The marketing department should also be made well aware of the buying behavior of target customers and
organizing programs to develop health awareness among general public so that along with getting a knowhow
about the upcoming health threatening diseases