Corporate Responsibility in der forschenden Arzneimittelindustrie / Corporate Responsibility in the Research-Based Pharmaceutical Industry

Suchanek Andreas () and Lin-Hi Nick ()
Additional contact information
Suchanek Andreas: Collegienstraße 62, 06886 Lutherstadt Wittenberg, Germany
Lin-Hi Nick: Jahnallee 59, 04109 Leipzig, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2007, vol. 227, issue 5-6, 547-562

Abstract: Corporate Responsibility is a crucial concept in the pharmaceutical industry, especially for research-based pharmaceutical companies. Companies are faced with a tension between fulfilling normative expectations of solidarity and making profits under the pressure of competition. We argue that the seemingly plausible strategy to realize corporate responsibility as corporate philanthropy is systematically misleading and, in the long run, undermining the legitimacy of the core business. Instead, pharmaceutical companies should demonstrate their corporate responsibility by investing in their licence to operate, that is, by preventing possible conflicts between profits and morals. This requires not only investments in governance structures but also the ability to communicate the legitimacy of making profits as well as their corporate integrity.

Keywords: Business ethics; corporate social responsibility; pharmaceutical industry; philanthropic activities; Business ethics; corporate social responsibility; pharmaceutical industry; philanthropic activities (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:227:y:2007:i:5-6:p:547-562

DOI: 10.1515/jbnst-2007-5-609

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