CSR and Stakeholders Theory Assessment

Dissertation

TABLE OF CONTENTS
TABLE OF CONTENTS.....................................................................................................................2
CHAPTER 1: INTRODUCTION.........................................................................................................4
Background of the study..............................................................................................................4
Research aim and objectives........................................................................................................4
Research questions.......................................................................................................................5
Rationale of the study..................................................................................................................5
Significance of study...................................................................................................................6
Dissertation structure...................................................................................................................6
CHAPTER 2: LITERATURE REVIEW..............................................................................................8
Theme 1: CSR and stakeholders theory assessment....................................................................8
Characteristics of the stakeholder groups and their impact on business......................................9
Stakeholder opinion over CSR practices...................................................................................11
Stakeholder Engagement and its relation to Corporate social responsibility............................13
CHAPTER 3: RESEARCH METHODOLOGY................................................................................16
Research Design........................................................................................................................16
Research approach.....................................................................................................................17
Research philosophy..................................................................................................................17
Research Technique...................................................................................................................18
Data collection...........................................................................................................................19

Sampling....................................................................................................................................20
Data analysis..............................................................................................................................20
Reliability and validity...............................................................................................................21
Ethical considerations................................................................................................................21
Research limitations...................................................................................................................22
CHAPTER 4: DATA ANALYSIS AND FINDINGS........................................................................23
Findings.....................................................................................................................................23
Discussion..................................................................................................................................29
Sustainable development with regard to people of J&J.............................................................30
Sustainable development with regard to place of J&J...............................................................30
J&J’s initiatives for providing customers with high quality products and services..................31
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS........................................................34
REFERENCES...................................................................................................................................36

Topic: Corporate social responsibility as a business strategy for the formation of long-term
sustainability in the international pharmaceutical company Johnson and Johnson\
CHAPTER 1: INTRODUCTION
Background of the study
In the current times, CSR becomes the main part of an organization which in turn helps it
in building distinct image in the mind of stakeholders and achieving success. From assessment, it
has identified that lack of sustainability in the operations of business units exist when they lay
focus only on the attainment of profit margin and avoids the expectation of long-term
stakeholders (Carroll and Shabana, 2010). Hence, now for gaining competitive edge over others
it is highly required for the companies to understand the needs & expectation of stakeholders and
link the same with organization’s strategic framework. CSR may be served as a highly effectual
strategy that assists company in building sound relationship with the stakeholders such as
employees, suppliers etc. For instance: Customers usually prefer to purchase products or
services with which they are highly satisfied. Thus, strategic actions like CSR help company in
evolving satisfaction among the stakeholders and creating long term sustainability.
The present dissertation is based on Johnson & Johnson which is one of the leading
pharmaceutical companies in the world. With the motive to attain success and building
competitive image in the mind of customers JNJ places high level of emphasis on undertaking
CSR initiatives. Hence, JNJ implements Health for Humanity 2020 program and thereby focuses
on avoiding the death of HIV infected mothers. Such concerned CSR program will also provide
high level of assistance in reducing problems such as tuberculosis as well as HIV infected
newborns and children deaths (J&J Shifts Focus to Material Impacts for People, Places, Practices
in New 2020 Goals, 2018). Thus, JNJ takes initiatives and undertakes comprehensive programs
that make improvement in the health of people around the world. Hence, current investigation
will shed light on the manner in which JNJ can ensure long-term sustainability by employing
competent strategy such as CSR.
Research aim and objectives
Aim

The aim of the present study is to assess the extent to which business strategy such as
CSR helps in forming or building long term sustainability in the context of JNJ, leading company
operating in pharmaceutical sector.
Objectives: Considering the above aim following objectives have been drafted such as:
 To study the theory of stakeholders
 To identify the characteristics of the stakeholder groups and their individual impact on
the business of the company
 To investigate the opinions of stakeholders: external and internal (employees, their
managers, etc.)
 Top assess the needs of each group and find points of interaction between the company
and stakeholder groups
 To draw conclusions about the possible impact of each group on the sustainability of the
company's business and the applicability of the impact on each group.
Research questions
For conducting research in a structured way scholar is required to draft suitable questions
in accordance with the aim and objectives. Hence, main research questions that have addressed
in such study are enumerated below:
Q.1 What kind of impact stakeholder groups have on business performance?
Q.2 Which kind of interaction takes place between the company and stakeholder groups?
Q.3 How business strategy like CSR helps in forming long-term sustainability in the context of
JNJ?
Rationale of the study
The main reason behind conducting present investigation is to analyze the extent to
which business unit needs to meet the expectation of stakeholders for creating long term
suitability. In the present era, market share and brand image of the company is highly affected
from the initiatives undertaken by the companies for the welfare of stakeholders such as
customers, suppliers etc. Now, customers give high level of preference to the company which
performs activities in a sustainable manner. By doing evaluation, it has found that strategic

initiatives have undertaken by JNJ for meeting sustainability goals (Iannuzzi, 2016). Hence,
through the means of thematic analysis such research presents the level to CSR strategy aid in
the long term sustainability of companies operating in pharmaceutical sector specifically JNJ.
Significance of study
Evaluation and findings of the present study is highly significant for JNJ. Such research
will provide higher management team of JNJ with strategic framework for decision making.
Moreover, such study will present the ways that can be followed by JNJ for the creation of long
term sustainability via CSR. Besides this, study and concerned evaluation will also prove to be
beneficial for other researchers. Findings of the study will help other scholars in developing
hypothesis who want to conduct study on similar kind of topic. Further, such investigation
findings will also give input to the companies, operating in pharmaceutical sector, for decision
making. Referring the findings of such evaluation, pharmaceutical companies can develop
competent policy framework and thereby makes contribution in the attainment of organizational
goals.
Dissertation structure
Chapter 1: Introduction
Introductory chapter of dissertation includes research aim & objectives and motive
behind carry out the investigation. First chapter of report also highlights significance of the study
and structure that have followed during the whole study.
Chapter 2: Literature review
Under second chapter, several themes have been prepared by the researcher referring the
research issue and objectives. In this, several articles and books related to CSR & long term
sustainability have been evaluated by the researcher. This chapter of the study is highly
significant that helps in supporting overall findings in the best possible way.
Chapter 3: Research methodology
Third chapter of dissertation entails research techniques that have been employed by the
researcher for analyzing the contribution of CSR in the long-term sustainability of JNJ.

Chapter 4: Data analysis and findings
This chapter presents the findings of issue being investigated and presents that all the
objectives have fulfilled. Data analysis chapter is the main parts of such dissertation which
presents whether long term sustainability can be built or enhanced via CSR.
Chapter 5: Conclusion and Recommendations
In this chapter, all the findings have been presented by the researcher briefly or in a
summarized format. Further, in this, some recommendations have also been made by the scholar
that enhances long term sustainability aspect of pharmaceutical companies including JNJ.

CHAPTER 2: LITERATURE REVIEW
LR may be defined as process that assists researcher in gaining deeper understanding
about the topic and helps in preparing brief thesis. In LR, researcher makes efforts in relation to
attaining goals and objectives by doing evaluation of books, journals as well as scholarly article.
In this, several journals as well as articles have been undertaken by the researcher based on the
role and contribution of CSR in the long-term sustainability aspects. For analyzing issue more
effectually both positives and negatives of such business strategy has been evaluated.
Theme 1: CSR and stakeholders theory assessment
According to the views of Lindgreen and Swaen (2010), CSR is the business approach
that makes remarkable contribution in the sustainable development. Through providing all the
stakeholders with economic, social and environmental benefits sustainable development can be
ensured by the companies. Further, Dhaliwal and et.al., (2011) defined CSR as the strategy that
business units undertake for managing business processes and operations. The main motive of
the companies behind encouraging CSR is to place positive impact on the society. Gainer (2010)
served CSR as a company’s initiative that positively contributes in the environmental and social
well-being. Hence, CSR exhibits company’s effort in relation to meeting stakeholder’s
expectations. From donating money to NGO’s, to the execution of environment friendly
approaches, considered as CSR. Now, CSR or sustainability strategy is highly crucial that assists
company in building and maintaining competitiveness. On the basis of this, it is the
accountability of business unit to integrate social, environmental etc aspects with the core
strategies framed. CSR activity or strategy employed by the firm is highly vital that enhances
word of mouth publicity and brand image. Thus, it can be stated that CSR strategy is the key that
helps company in getting the desired level of outcome or success. Russo, and Perrini, (2010),
has stated that Implementing stakeholder theory is the strategy which helps the firm in
maintaining ethical business operations which is the key driver to sustainable development.
Stakeholder theory is proposed by Edward Freeman in 1988. The author states that group of
shareholder is much large than shareholders. According to theory the management of company is
responsible for working and managing business functions keeping in mind social and product
responsibility. The theory states that business enterprise is solely responsible and take chance