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Desklib is an online library that provides study material with solved assignments, essays, dissertations, and more. This article discusses the role of corporate governance in addressing the needs of multiple stakeholders in context of AstraZeneca. It also covers the integration of corporate governance and sustainable leadership at AstraZeneca. The article includes a mind map addressing the topic of democratic leadership and a critical analysis of leadership in context of AstraZeneca. The subject, course code, course name, and college/university are mentioned in the content.

Project 1 Portfolio

Contents
Contents...........................................................................................................................................2
Professional Emails addressing the topics covered in week 1 and week 2.....................................1
Email 1.........................................................................................................................................1
Email 2.........................................................................................................................................5
Critical analysis and discussion of leadership in context of AstraZeneca.......................................7
Mind Map addressing week 2 Topic...........................................................................................7
Analysis of Mind Map.................................................................................................................7
Reflective Report.........................................................................................................................8
REFERENCES................................................................................................................................8

Professional Emails addressing the topics covered in week 1 and week 2
Email 1
To: [e-mail]
From: [e-mail]
Subject: Role of corporate governance in addressing the needs of multiple stakeholders in
context of AstraZeneca
Greetings Senior Management Team,
I am reaching out to you to showcase the knowledge acquired during week 1, specifically
focusing on role of corporate governance in addressing the needs of multiple stakeholders in
context of Astra Zeneca.
Introduction
AstraZeneca is one of the largest pharmaceutical company in the world which has continuously
supported innovation in the pharmaceutical industry. AstraZeneca faces corporate governance
issues in context of ethics, sustainability and finance. Evaluating these issues with application of
appropriate corporate social responsibility theory can help determine the best ways of satisfying
multiple stakeholders through corporate governance.
Critical Analysis
AstraZeneca is a global healthcare brand with international presence which has developed
breakthrough medical products, specifically the recently developed COVID-19 vaccine. The
respective organization has to deal with various stakeholders including consumers, employees,
shareholders and international governments. Corporate governance helps the board of executives
increase trust and transparency needed for creating long-term financial stability and maintain
ethical environment. In case of AstraZeneca the main corporate governance issues are evaluated
in context of executive level impact:
Corporate Governance: Financial Issues at AstraZeneca
AstraZeneca is affected by financial challenges because as the company suffered huge slump in
profitability and the Vaccine sales of the company also deteriorated. In addition to this the
operating expenses of the company increased by 33 per cent (AstraZeneca profits fall, Covid
vaccine sales slide, 2022).. This showcases inefficiencies in terms of corporate governance as the
company was not able to stabilize profitability despite experiencing growth in revenue because
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of COVID-19 vaccine launched by the firm. The impact of this inefficiency can be explained
with the help of Agency Theory of corporate governance.
According to the Agency theory of corporate governance states that corporates act as the agents
of its shareholders. This means that shareholders of an organization provide investment to the
company and trust the corporate with effective usage of the provided resources to earn them a
profit. The role of corporate governance is to implement a framework which helps establish a
proper agent and principle relationship between the directors and officers of an organization and
the shareholders so that the differences between corporate interests of company directors and
company shareholders and be managed effectively.
The loss and expenses faced by AstraZeneca recently can be attributed to $39-billion takeover of
US group Alexion in 2021 (AstraZeneca profits fall, Covid vaccine sales slide, 2022). From the
viewpoint of board of directors of AstraZeneca, the expenses and loss of revenue is needed
damage because acquisition of Alexion will propel future growth of the company and protect its
long-term interests. On the other hand, the recent expenditure and loss increase negatively
impacts the short-term interests of shareholders of AstraZeneca because it reduces the
profitability they are earning. This is where the agency theory of corporate governance comes
into play.
Agency theory of corporate governance indicates the importance of investing in building rules,
regulations, customs and norms which support alignment of interests of board of directors and
shareholders (Dong and et. al., 2021). In case of AstraZeneca, the company needs to use
technology and internal communication framework to ensure that the interests of shareholders
are communicated to the board of directors and the shareholders are aware of the long-term
benefits of various risky decisions taken by the board of directors. This is an effective method of
ensuring that the long-term growth needs of the company and needs of shareholders are
addressed effectively.
It is also important for AstraZeneca to develop strict code of conduct which ensures that board of
directors are aware of their duties of performing on the behalf the shareholders and are countable
to the shareholders for their actions. The advantage of adopting agency theory for managing
financial corporate governance issues at AstraZeneca are better resolution of shareholder needs
and improved relationship between shareholders and board of directors.
On the other hand, the primary disadvantage associated with using agency theory to face
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financial corporate governance challenge is that it has opportunistic aspects as the officers and
board of directors wield too much power for keeping the interests of shareholders (Elsayed and
Elbardan, 2018). Reporting and monitoring procedures ensuring accountability from board of
directors can help lower this disadvantage for AstraZeneca.
Corporate Governance: Sustainability Issues at AstraZeneca
The primary sustainability issue faced by AstraZeneca is the negative environmental impact of
mass coronavirus vaccination. AstraZeneca is one of the largest producers of COVID-19 vaccine
in the world and vaccination products developed by AstraZeneca for COVID-119 pandemic have
been used by millions. The only harm associated with global vaccination is its impact on
sustainability of the company. Companies use hydro-fluorocarbons (HFC) gases to freeze
vaccines to a very low temperature. The release of HFC’s in the environment can cause damage
to Ozone layer and are one of the main causes of global warming (The environmental impact of
mass coronavirus vaccinations, 2021).
In case of AstraZeneca the total number of vaccines sold by the company are equals to 2 billion
doses of vaccine to 170 different countries (Two billion doses of AstraZeneca’s COVID-19
vaccine supplied to countries across the world less than 12 months after first approval, 2021). If
natural refrigeration, low energy tools and equipment are not used for global vaccine
distribution, the negative impact on the environment can lowered significantly. This is
challenging for AstraZeneca because the chief sources of revenue for the respective company is
the COVID-19 vaccine. In addition to this it is imperative for the health of many individuals that
useful vaccine doses reach healthcare institutions across the world. This is where the corporate
sustainability issue comes because AstraZeneca has to ensure that its commitment of earning
profitability and delivering lifesaving vaccines is completed without causing massive damage to
the environment.
From the point of board executive of AstraZeneca, this is crucial issue because the company
because of the board executives have responsibility of attaining revenue, providing health
benefits through fast transportation of vital healthcare products and also protect community from
the damaging impact of the environment. This issue can be solved with the help of resource
dependency theory of corporate governance. According to this theory of corporate governance,
businesses engage in transactions with other actors so that valuable resources needed for
organizational growth can be acquired (Wang and et. al., 2020). In context of AstraZeneca, the
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usage of resource dependence theory can help the respective company develop appropriate
corporate governance practices for dealing with external parties across the globe and acquiring
resources and support which improve the sustainability levels of the organization.
AstraZeneca will be able to make use of the resource dependency theory to ensure that its
relational power when dealing with external parties of different countries such as third party
logistics for overseas distributions, local governments and healthcare institutions remains
balanced so that the firm is able to gain profitability while also securing the sustainability levels
of the organization. The advantage of using resource dependency theory for dealing with
corporate governance sustainability issues is that it can help the company achieve environmental
goals without negatively affecting profits or exceeding expense. The resource dependency theory
has the disadvantage of is that it relies on assumption is that uncertainty increases the control of
an organization over its resources which is not true in every circumstance (Zona, Gomez-Mejia
and Withers, 2018). In case of AstraZeneca the situation of COVID-19 vaccination, rise of new
variants and spread of the virus is quite uncertain, which according to the theory can lower the
control of AstraZeneca on its resources.
Conclusion
From the above discussion it is concluded that the AstraZeneca is facing various financial and
sustainability corporate governance issues in the post pandemic world. It is important for the
respective company to evaluate its corporate governance practices and update them according to
the current challenges and environment. Corporate governance theories such as resource
dependency theory and agency theory can be used by AstraZeneca for overcoming the
challenges in post COVID-19 world and working in the best of interest of each of its
stakeholders.
Recommendation
The board of executives ate AstraZeneca are suggested:
 To implement effective board reporting practices and follow agency theory corporate
governance. This can help the firm deal with conflict of interests between board members
and shareholders and pursue strategic actions without dissatisfying the board in cases
where it demands huge expenditures.
 To develop better supply chain management practices through corporate governance and
follow resource dependency theory when dealing with number of external parties on
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global level. This will allow the firm to take control of its resources and make efforts for
more sustainable environment (Orazalin, 2019).
Email 2
To: [e-mail]
From: [e-mail]
Subject: Integration of corporate governance and sustainable leadership at AstraZeneca
Greetings Senior Management Team,
I am reaching out to you to showcase the knowledge acquired during week 1 and week2,
specifically focusing on leadership, ethical businesses and corporate governance at the firm.
Introduction
The concept of ethical leadership is centred on valuing dignity and rights of others and following
ethical business practices for the growth of the company (Wood, Eid and Agag, 2021). In case of
AstraZeneca, ethical challenge of the company affects millions of individuals because it is global
healthcare products supplier and producer. It is essential for topmost leaders to develop ethical
and sustainable practices so that the needs of multiple stakeholders can be fulfilled.
Critical Analysis
Corporate Governance: Ethical Issues at AstraZeneca and Leadership
The ethical challenges present at AstraZeneca are related to Executives Pay at the company. The
pay package of chief executive at AstraZeneca. Proposals were made in the company to increase
pay of chief executive by 40% leading to the payment of perks of the company reaching £18m.
This proposal has received backlash from nearly 40% of investors (Nearly 40% of AstraZeneca
investors reject boss’s bonus rise, 2021). In addition to this the decision was criticized because
the staff bonuses for the company decreased while the chief executive is getting highest salary
increases in the world. This raises ethical concerns about the negative impact of raising executive
level employee’s salary on other stakeholders, mainly the communities, staff members and
investors associated with the company.
Application of the stakeholder theory can help the respective company solve ethical crises in
corporate governance. Management accountability is incorporated to broad range of stakeholders
under the stakeholder theory of corporate governance. Here, the focus is on every stakeholder
affected by the company’s action rather than solely looking at the benefits and impact of
shareholder (Freeman and et. al., 2021). AstraZeneca can adopt this theory by ensuring that each
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of its stakeholders are satisfied of its actions instead of few investors and the chief executive.
The respective organization needs to implement organization wide changes which support
creation of democratic environment in the company where the opinions and viewpoints of
employees also matters specifically the decisions regarding employee bonuses and salary
increment of chief executives.
AstraZeneca only took approval from the investors regarding salary increase of chief executive.
After applying the stakeholder theory of corporate management it is clear that corporate
governance framework need to be influenced by the interests of every stakeholder at
AstraZeneca including its employees and communities impacted by the company. In a post
pandemic world where many employees are facing economic hardships because of global
economic instability caused by COVID-19 pandemic, increasing salary of senior executives by
an unprecedented amount has negative impact on the company because employees get
disproportionate amount of bonus, rewards and pay hike compared to chief executive.
Using the stakeholder theory of corporate governance the respective organization needs to
implement director training and board evaluations in context of business decision making which
are interest of every stakeholder associated with the company. The advantage of this is that the
respective company will be able to ensure that every stakeholder remains satisfied and board
decisions does not lead to unnecessary conflicts and resistance in the company from any
stakeholder (Freudenreich, Lüdeke-Freund and Schaltegger, 2020). On the other hand, the
disadvantage of adopting the stakeholder theory of corporate governance can be slower decision
making at the company negatively impacted emergency actions and lowering responsiveness of
the firm (Al-Sartawi, 2018).
Conclusion
From the above discussion it is determined that AstraZeneca needs to develop a more democratic
approach to leadership so that it is able to ensure that decisions regarding executive payment
hike is made ethically considering the views of investors, employees and external environmental
conditions.. The firm should also apply the stakeholder theory of corporate governance to ensure
that its decisions are made in an ethical manner and take democratic approach to leadership.
Recommendation
 To take more democratic approach to decision making. Involvement of employees in
decision making helps the company lower resistance. This is also in accordance with
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stakeholders theory of corporate governance and supports addressing multiple
stakeholders.
Critical analysis and discussion of leadership in context of AstraZeneca
Mind Map addressing week 2 Topic
Analysis of Mind Map
Great leaders are able to respond to a crisis ethically and ensure that the crisis
management is in best interests of all the stakeholders while also maintaining sustainability of
the company. In case of the AstraZeneca, the principles of regenerative leadership need to be
implemented. In addition to this the firm needs to use democratic approach to leadership. This
involves getting rid of hierarchies to increase responsiveness of the company towards the
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Leadership
Better
working
environment
Valuing
autonomy
Employee
satisfaction
Regenerative
Leadership
Life
Affirming
Principles
Lower
employee
resistance
Democratic
Leadership
Dropping
hierarchies

continuously changing world (Hutchins, 2019). In addition to this the leaders, and board
members of the film should need to identify life affirming principles relevant to the medical
industry is that it is able to create development space for its employees. Regenerative leadership
has many advantages including supporting creation of better ethical environment at the company
as it is driven by strong values.
Reflective Report
Introduction
This is reflective report based on the creation of mind map on the leaning gained in week 2.
Reflective practice helps individuals improve skills by evaluating past actions and experiences
(Farrell, 2020). In the second week I developed mind map focusing on regenerative leadership
and democratic leadership.
Reflection
The positive aspects of developing mind map were the ability to effectively arrange my ideas and
thoughts about the leadership knowledge gained during week 2. Mind map helped me develop
my ideas related to leadership, regenerative leadership, democratic leadership and corporate
governance effectively. The main negative aspect of developing the mind map was linking
various topics so that appropriate and easily understandable mind mar is created. I was not able
to effectively link various ideas and ensure that they remain connected to the main topics. I
overcome this challenge by defining the concepts of the mind in relation to overall topic of
leadership and corporate governance and then connecting them.
Conclusion
From the above reflection it is concluded that mind map can be used for fleshing out ideas and
generating a map for further developing specific concept for a company.
REFERENCES
Books and Journals
Al-Sartawi, A. M. M., 2018. Institutional ownership, social responsibility, corporate governance
and online financial disclosure. International Journal of Critical Accounting, 10(3-4).
pp.241-256.
Dong and et. al., 2021. How firms make information technology investment decisions: Toward a
behavioral agency theory. Journal of Management Information Systems, 38(1). pp.29-
58.
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Elsayed, N. and Elbardan, H., 2018. Investigating the associations between executive
compensation and firm performance: Agency theory or tournament theory. Journal of
Applied Accounting Research.
Farrell, T. S., 2020. Professional development through reflective practice for English-medium
instruction (EMI) teachers. International Journal of Bilingual Education and
Bilingualism, 23(3). pp.277-286.
Freeman and et. al., 2021. Stakeholder theory and the resource-based view of the firm. Journal of
Management, 47(7). pp.1757-1770.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business
Ethics, 166(1). pp.3-18.
Hutchins, G., 2019. Regenerative leadership. eBook Partnership.
Orazalin, N., 2019. Corporate governance and corporate social responsibility (CSR) disclosure in
an emerging economy: evidence from commercial banks of Kazakhstan. Corporate
Governance: The International Journal of Business in Society.
Wang and et. al., 2020. Impact of open innovation on organizational performance in different
conflict management styles: Based on resource dependence theory. International
Journal of Conflict Management.
Wood, B. P., Eid, R. and Agag, G., 2021. A multilevel investigation of the link between ethical
leadership behaviour and employees green behaviour in the hospitality
industry. International Journal of Hospitality Management, 97. p.102993.
Zona, F., Gomez-Mejia, L. R. and Withers, M. C., 2018. Board interlocks and firm performance:
Toward a combined agency–resource dependence perspective. Journal of
Management, 44(2). pp.589-618.
Online
AstraZeneca profits fall, Covid vaccine sales slide, 2022. . [Online] Available through
<https://economictimes.indiatimes.com/news/international/business/astrazeneca-profits-
fall-covid-vaccine-sales-slide/articleshow/93205916.cms?from=mdr>
Nearly 40% of AstraZeneca investors reject boss’s bonus rise, 2021. [Online] Available through
<https://www.theguardian.com/business/2021/may/11/astrazeneca-investors-boss-
bonus-covid-vaccine>
The environmental impact of mass coronavirus vaccinations, 2021. [Online] Available through
<https://www.politico.eu/article/mass-coronavirus-vaccinations-environmental-impact-
climate-change/>
Two billion doses of AstraZeneca’s COVID-19 vaccine supplied to countries across the world
less than 12 months after first approval, 2021. [Online] Available through
<https://www.astrazeneca.com/media-centre/press-releases/2021/two-billion-doses-of-
astrazenecas-covid-19-vaccine-supplied-to-countries-across-the-world-less-than-12-
months-after-first-approval.html>
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