Analysis of CSR Strategies and Technological Change

The provided assignment details a comprehensive examination of corporate social responsibility (CSR) strategies and their relationship with technological change. It involves analyzing various studies, articles, and research papers that explore the impact of CSR on business reputation, employee commitment, and customer loyalty. The assignment also delves into the role of scenarios in strategic foresight and the importance of marketing strategies in achieving business success. It requires students to critically evaluate the existing literature and provide a well-structured summary of their findings.

Corporate Social Responsibility
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Executive Summary
The report is based on corporate social responsibility strategy and for this report,
“GlaxoSmithKline PLC” (GSK) has been selected. In this report, every detail is clear out based
on GSK and the corporate social responsibility strategies have been also enlightened of the
company. From the report, it is acknowledged that there are six core characteristics of CSR and
those are described according to GSK company. In this report, it is also justified that GSK puts
up a lot of effort to make a good relationship with its stakeholders. GSK provides more emphasis
to its employee as GSK doesn’t want to see its experience and skilled employee to switch to
another company. According to the GSK CSR strategy, it is acknowledged that for providing a
better, healthier, and long life in the future, GSK is working on that. Saving people, providing
people a good life is one of the ultimate aims of GSK company. In the education sector, GSK
provides a lot of effort. Various scholarship program every year is organized by the company. In
the recommendation segment, various strategies are proposed regarding CSR. GSK needs to
emphasize more on saving the environment and that’s why it should focus on reducing polluted
gas and carbon from the environment. Reusable sources and recyclable wastes are recommended
in the proposed CSR strategy and a lot more.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Theories and Framework.................................................................................................................5
Core characteristics of CSR.........................................................................................................5
Carroll’s CSR Pyramid................................................................................................................7
Stakeholder theory.......................................................................................................................9
Three – Domain Model of CSR.................................................................................................10
CSR strategies of “GlaxoSmithKline PLC(GSK)”........................................................................12
Recommendations..........................................................................................................................15
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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Introduction
GlaxoSmithKline PLC is more known to all as “GSK”. It’s a global healthcare company. There
two segments where this company is based on and those are pharmaceuticals and Vaccines.
Additionally, GSK also produces a big range of both prescription medicines and also vaccines
products. The ultimate goal of this company to get the spot of number one in the world’s most
innovative, best performing, and also trusted health care companies. Mainly GlaxoSmithKline
PLC provides focus on three priorities and that’s are Innovation, Performance, and trust. Besides
doing business this company has a very good reputation in the subject of corporate social
responsibility (Brundin et al., 2020). As this report is based on corporate social responsibility so
the primary aim of this report to recognize the corporate social responsibility and strategy of
GlaxoSmithKline PLC. GSK believes that corporate social responsibility is one of the integral
parts of the business. It is true that around the whole world, GSK has a significant contribution to
its products such as medicines, vaccines, and consumer health care. There a lot of contributions
are found regarding GSK in the aspect of the welfare of society. In 2012, the company for the
first time introduced in the united states a national initiative designed in terms of better
understand regarding the barriers and figure out the opportunities for building healthier
communities. In the aspect of education, GSK provides opportunities regarding scholarships for
every college student who fights the difficult circumstances in their individual life. To inspire
them and provide them a better future, GSK offers this kind of welfares. In this report, it is going
to discuss the corporate social responsibility strategy of GSK, and the proposed strategy will be
mentioned and narrated too.
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Theories and Framework
Core characteristics of CSR
Fig1: Core characteristics of CSR
Source: (Crane et al., 2018)
Voluntary
GSK also participates in volunteering to create a shared cultural value for its employees which is
going to encourage them to participate in more community works and skill-based volunteering
(Dyczkowskaa et al., 2018). Legal actions are maintained and also maximization of shareholders'
wealth is the main objective of GSK.
Managing externalities
The company has taken many initiatives like recyclable wastes, paper packaging, reduce carbon
emission, and many more for steps for keeping a good environment (Mackenzie, 2017).
Additionally, there are also some activity deals with externalities like workers' rights, a good
relationship with stakeholders, a reduction of pollution, etc. These are well performed by GSK.
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Multiple stakeholder orientation
Internal and external stakeholders are oriented by GSK based on power, legitimacy of the claim,
and urgency (Smith, 2018). Different approaches are taken for internal stakeholders and external
stakeholders of GSK. Training on communication skills, stakeholder research, good relation and
so one is implemented of stakeholder orientation.
Social and economic alignment
GSK balances different stakeholder interests promptly and it is one of the core features of the
company. CSR maybe try to go beyond on a narrow focus on shareholders and profitability. But
GSK believes in the sense of conflict with profitability (Adams et al., 2018). GSK is more
concerned with CSR orientation and focuses more on social and economic responsibility than
other activities.
Practices and values
CSR is a particular set of practices of business and also strategies that are involved with social
issues (Adams et al., 2018). GSK practices in CSR initiatives for communication or collectivistic
scouting through traditional values and cultural practices of the local communities in society.
Beyond Philanthropy
CSR of GSK is a sustainable investment in the community. The company thinks that CSR is a
part of its business and it is more than philanthropy (Khan et al., 2019). Through effective CSR
outreach, the company able to find out the extraordinary opportunity to redefine the way to make
a change in the world.
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Carroll’s CSR Pyramid
Fig 2: Carrol’s CSR pyramid
Source: (Nalband and Kelabi, 2018)
Economic
GSK knows and also follows that CSR is not the responsibility of the company but it’s a part of
the business (Wang and Wang, 2017). The first responsibility of GSK was to get itself in the
profit portion. It is the way to survive and also make benefits in society in the future.
Legal
Laws and regulations are also concerned and followed first by GSK. GSK believes that they
must obey and adhere to the laws and regulations that are connected with its business such as
employment, competition, health, and safety among others.
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Ethical
This stage GSK is concerned and act more morally and ethically. GSK provides importance in
the act of ethics and morals in the welfare of society (Wang and Wang, 2017). Moreover, it
should also able to go beyond the narrow requirements of the law and order such as the treatment
of suppliers, employees, etc.
Philanthropic
In this stage, GSK knows that it is the time to give back something to society and that’s the
company is acting now (Sones et al., 2019). GSK takes it as a sustainable investment which
holds an essential place even the circumstances are discretionary. Different charitable programs,
educations, disaster supports, and many more accomplished by GSK.
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Stakeholder theory
The main focus of the stakeholder theory to have a good relationship between the business
organization and with its stakeholders for gaining organizational objectives. Primary
stakeholders are the main stakeholders and have high importance for achieving organizational
objectives (Schipani et al., 2019). Employees, stockholders, creditors, suppliers, customers,
retailers, and health insurance providers are the primary stakeholders of GSK. GSK always takes
the necessary steps to create a strong relationship with its stakeholders. GSK maintains a strong
relationship with stakeholders through sales representatives, market research, various
stakeholder’s discussion groups, community projects, and participate in meetings with many
MNC and NGO’s. The company provides more emphasis on suppliers cause the company
requires the best raw materials for producing good products for the consumer (Min et al., 2019).
Moreover, the company believes that shareholders are the key players. Employees are the assets
for the GSK and GSK believes it is the loss of the company if any experienced and skilled
employees switch its job.
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Three – Domain Model of CSR
Fig 3: Three domain model of CSR
Source: (Uddin et al., 2018)
Economic Domain
By maximizing the shareholder value and maximizing profit, GSK makes the positive impact
maximum time (Domínguez et al., 2018). There are some indirect economic effects for GSK and
it helps the company to improve its company’s image, increase the sales volume, improve
conditions for suppliers, and these also involved in the helping of increase the quality of the
products of the GSK company.
Legal Domain
The legal domain's real motive is obeying the law. It is acknowledged with all that in this
segment GSK always provides priority to maintain the law at first (Domínguez et al., 2018).
GSK always concerns with recyclable wastes, resources, providing good working conditions,
best products, paper packaging instead of plastic packaging, making good contractual
relationships with suppliers. All the laws and regulations are obeyed by GSK in every aspect of
the business.
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Ethical Domain
GSK also submits an ethical and sustainable responsibility to the environment (Llorens et al.,
2019). The ethical domains are concerned by GSK including all its primary and secondary
stakeholders. GSK has able to create sustain legitimacy and that’s why the company’s economic
domain is sufficient currently.
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CSR strategies of “GlaxoSmithKline PLC(GSK)”
Providing emphasize on the improvement of society
The primary contribution to the society for the company to develop, market, and distribute the
products which are based on a high science to bring improvement in the life of the consumer
(Rangan et al., 2019). This is a strategy that GSK focuses on. For providing better health and
hygiene awareness to mothers and children, the company partakes the opportunity to a making a
sustainable partnership with various community projects by establishing NGOs for making
advanced awareness regarding nutrition and healthcare to the society.
Commitment and timely actions
To help the planet in disaster moments is another strategy of GSK. The company is committed in
terms of diminishing environmental impacts across the value chain and lifecycle (Hunter et al.,
2017). Timely actions are taken for providing effective support in disaster circumstances of the
planet.
Situation analysis of people life
Thinking of people and the welfare of society is another vision of GSK to implement its CSR
strategy (Siltaoja, 2017). The company believes to build a society where it will be beneficial for
everyone. The act is accomplished by GSK through the contribution in the education sector,
making sustainable partnerships, and a lot.
Partnership and other engagements
For the welfare of the society the company also provides essential compassionate care and also
makes the engagement of the board of directors, management, and employees in this matter
(Siltaoja, 2017). GSK’s values of transparency, respect, integrity, and partners are the main
outreach for the company’s CSR strategy.
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Analysis in the education sector
Every year GSK organizes a lot of scholarship programs to the students to fulfill his or her dream
(Zeng et al., 2019). Moreover, there a lot of programs where GSK introduces special education,
donation, scholarships, and a lot to accomplishments in corporate social responsibility properly.
The concern of nutrition analysis
The main moto and activity of GSK to develop medicines, vaccines that are going to make a
great impact on society and will also keep people safe from various diseases (Zeng et al., 2019).
A lot of medicines, vaccines are available which help to save people's live, relieve suffering, and
also treat patients’ various diseases. Furthermore, it improves the quality of life of patients.
The concern with the environment
GSK always provides a focus on keeping the environment safe from pollution and other harmful
elements. That’s why its other strategy is to make the environment sustainable and create an
ecological balance with its activities in society (Zeng et al., 2019). Natural ingredients and
resources are the main elements of the company which make the products eco-friendly with the
environment.
Disaster support and volunteering
For providing relief in disaster-affected communities and to create a culture of shared value
within its employees, GSK provides support in disasters and also involved in volunteering
activities. It’s another effective CSR strategy of GSK.
Ethical practices
Ethical practices are strictly followed by GSK. It always provides the surety that employees of
the company should not only understand but also implement the code of conduct and policies in
the business practices (Maan, 2019). In the pharmaceutical sector, there is more emphasis is
required in the research and development sector.
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Fig 4: GSK is one of the best companies in CSR reputations
Source: (Hughey and Sulkowski, 2018)
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Recommendations
Till now, GSK is providing a great emphasis on ecological balance and sustainability. But that’s
not at all for the company. There should be some changes in the organization’s corporate strategy
to enhanced the ecological responsibility of the company. GSK states that for protecting the
natural resources the company should be always up to deliver high-quality products to patients
and consumers in the future long run. The company should make a strategy for diminishing
greenhouse gas emissions. Additionally, the company also should recycle the waste in terms of
bringing the benefits for the environment and the company should also reduce water impacts. For
the enhancement of ecological responsibility, GlaxoSmithKline makes sure to create a
sustainable environment and ecological balance through reduce operations carbon emissions,
reduce value chain carbon emissions, finding the source of electricity from a new renewable
source. The company should also make a strategy on the focus of planting trees more and reduce
deforestation. In terms of diminishing deforestation, GSK should take steps and ensure that the
raw materials of its product are sourced responsibly based on wood-based packaging materials
and also palm oil. GSK should provide the inurement that all direct suppliers of palm oil, kernel
oil, and others that are involved with GSK products should be out of the deforestation term.
Plastic packaging should be eliminated from the company’s business producers and the company
should provide 100% focus on using paper packaging (Ringland, 2018). Simultaneously, the
company has taken these kinds of initiatives that are going to create a positive impact on society.
GSK should come up with a new strategy for reducing plastic packaging or find out a way to
make it recyclable. Recyclable process strategy should be implemented in the corporate social
responsibility of GSK. More safety and precautions approaches should be introduced in the
pharmaceuticals sector of the company.
As it is acknowledged by all that ethical practices are strictly followed by GSK. Furthermore, the
research and development sector of the company. More emphasis is provided for developing
products for the consumer. But the consistency should be maintained and stricter monitored are
required to enhance the social welfare of GSK by developing more quality products for the
consumers (Sharifat, 2019). In other departments, it also should be followed efficiently. Besides,
developing the products, the prices should be established where approximately all classes of
people could purchase the product in terms of living a healthier life. The supplier of the raw
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materials should supply the best raw materials and this should be ensured by the company. The
company should provide focus more on introducing children. By increasing accommodation
posture and activities, the development of the products can be accomplished which can enhance
the social welfare of the GSK company. It should emphasize more on its external stakeholders
more in terms of enhancing the responsibility for society. More support and help should be
provided to the consumers so that analysis can be done properly which will the company to
develop the products and inventing new products.
Ethical judgment and proper facilities should be provided to the employees of GSK. There
should be no nepotism and should not be any unethical practices in the recruitment process.
Proper judgment and justification should be established in the time of recruitment (Ramani and
Mukherjee, 2019). Moreover, the training sessions and other important facilities should be
provided by the company. Insurance and safety, security should be provided also. Proper salary,
incentives, behavior, and many more are required to install in the CSR strategy of GSK for the
enhancement.
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Conclusion
So, this report is based on the corporate social responsibility strategy, and the “GlaxoSmithKline
PLC” (GSK) organization has been selected. In this report, all the requirements of the report
have been justified and narrated based on GSK. Various models and CSR strategies are well
discussed which provide a clear view regarding GSK CSR strategy and how the company is
pointing the emphasis on it. According to GSK, the company’s corporate strategy has been put
up in the strategy. Various proposes strategies are also recommended and adopting those
strategies GSK can perform better in the long run of the future. The limitations are found from
the report which is that GSK should take participates in health camps more. Moreover, the
organization should cooperate with various reputed voluntary organizations which can create a
big impact on the welfare of society.
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