A Comprehensive Analysis of GSK's Corporate Social Responsibility

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This report offers a comprehensive analysis of GlaxoSmithKline PLC (GSK)'s corporate social responsibility (CSR) strategies. It begins with an executive summary and introduction to GSK, a global healthcare company focused on pharmaceuticals and vaccines. The report then delves into the theoretical frameworks underpinning CSR, including the core characteristics of CSR, Carroll's CSR Pyramid, stakeholder theory, and the three-domain model of CSR. A significant portion is dedicated to outlining GSK's specific CSR strategies, encompassing their focus on societal improvement, timely actions, stakeholder engagement, education, nutrition, environmental concerns, disaster support, and ethical practices. The report concludes with recommendations for enhancing GSK's CSR initiatives, particularly emphasizing environmental sustainability. The analysis highlights GSK's commitment to innovation, performance, and trust, demonstrating their efforts to balance economic, legal, ethical, and philanthropic responsibilities while fostering positive relationships with stakeholders and contributing to a healthier future.
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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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