Corporate Social Responsibility (CSR) of Innovative Pharmaceutical Corporations. The Case of BIOGEN

Janina Witkowska

doi:10.2478/cer-2018-0018

Authors

Janina Witkowska Full Professor at the University of Lodz, Institute of Economics, Faculty of Economics and Sociology, Lodz

DOI:

https://doi.org/10.2478/cer-2018-0018

Keywords:

Corporate Social Responsibility (CSR), innovative pharmaceutical corporations, orphan drugs, access to drugs, BIOGEN

Abstract

The aim of this paper is to discuss the common features and specificity of Corporate Social Responsibility (CSR) practices of innovative transnational corporations (TNCs) acting in the pharmaceutical industry. The innovativeness of pharmaceutical firms is understood here as their ability to make a breakthrough in the treatment of rare, incurable diseases. The examination of the issue leads to the conclusion that the specificity of CSR in this industry is related to the contradiction between the economic and social/ethical aspects of innovation processes in this field. A key issue of CSR in the innovative pharmaceutical industry seems to be the pricing of drugs, especially orphan and ultra‑orphan drugs, resulting in patients from less developed countries having limited access to life‑saving medicines or those that improve the quality of life. Corporations use their monopolistic position to set extremely high prices. However, without the market/marketing exclusivity offered to pharmaceutical firms by the law, orphan drugs would probably not be developed, produced and commercialized. Traditional CSR practices (corporate philanthropy, community and neighborhood programs, volunteerism etc.) cannot be treated as sufficient ‘compensation’ for the high prices of medicines. Real, true CSR in the innovative pharmaceutical industry requires either abandoning or reducing extreme monopolistic privileges and offering medicines for rare diseases at lower prices.

Downloads

Download data is not yet available.

References

A biotech pioneer, https://www.biogen.com/en_us/about‑biogen/history.html, [accessed: 18.04.2017].
Google Scholar

Benabou, R., Tirole, J. (2010), Individual and Corporate Social Responsibility, ʽEconomicaʼ, 77, DOI: 10.1111/j.1468–0335.2009.00843.x.
Google Scholar

Berman, J. J. (2014), Rare Diseases and Orphan Drugs. Keys to Understanding and Treating the Common Diseases, Elsevier Inc., DOI: 10.1016/B978-0-12-419988-0.00016‑X.
Google Scholar

BIOGEN (2016), Inspired Impact, 2015 Corporate Citizenship Report.
Google Scholar

BIOGEN (2017), Positions & Policy, https://www.biogen.com/en_us/...biogen/positions‑and‑policy.html, [accessed: 18.04.2017].
Google Scholar

BIOGEN (2017a), Science That Matters, 2016 Global Impact Report.
Google Scholar

BIOGEN (2017b), 2017 Corporate Citizenship Report, https://www.biogen.com/en_us/corporate‑citizenship‑report.html, [accessed: 18.04.2017].
Google Scholar

Bondy, K., Moon, J., Matten, D. (2012), An Institution of Corporate Social Responsibility (CSR) in Multi‑National Corporations (MNCs): Form and Implications, “Journal of Business Ethics” 111, DOI: 10.1007/s10551–012–1208–7.
Google Scholar

Bruyaka, O., Zeitzmann, H. K., Chalamon, I., Wokutch, R. E., Thakur, P. (2013), Strategic Corporate Social Responsibility and Orphan Drug Development: Insights from the US and the EU Biopharmaceutical Industry, ʽJournal of Business Ethicsʼ, 117, DOI: 10.1007/s10551–012–1496‑y.
Google Scholar

Carroll, A. B., Shabana, K. M. (2010), The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice, ʽInternational Journal of Management Reviewsʼ, DOI: 10.1111/j.1468–2370.2009.00275x.
Google Scholar

Crane, A., Matten, D., Spence, L. J. (2014), Corporate Social Responsibility: in a Global Context, [in:] Corporate Social Responsibility: Readings and Cases in a Global Context, Crane, A., Matten, D., Spence, L. J. (eds.), London, New York, Routlegde Taylor &Francis Group.
Google Scholar

Cure SMA (2018), SPINRAZA (Nusinersen), http://www.curesma.org/spinraza, [accessed: 8.02.2018].
Google Scholar

Droppert, H., Bennett, S. (2015), Corporate social responsibility in the global health: an exploratory study of multinational pharmaceutical firms, ‘Globalization and Health’, 11: 15, DOI: 10.1186/s12992–015–0100–5.
Google Scholar

Drugdevelopment‑technology.com (2017), Spinraza (nusinersen) for the Treatment of Spinal Muscular Atrophy (SMA), United States of America, http://www.drugdevelopment‑technology.com/projects/spinraza‑nusinersen‑for‑the‑treatment‑of‑spinal‑muscular‑atrophy‑sma [accessed: 8.05.2017].
Google Scholar

EC (2008), Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on rare Diseases: Europe’s Challenges, Brussels, 11.11.2018, COM 2008, 679 final.
Google Scholar

EMA (2018), Orphan Incentives, European Medicines Agency, http://www.ema.europa.eu/ema/index.jsp?curl=pages/regulation/general_cont, [accessed: 1.02.2018].
Google Scholar

EU (2011), Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. A Renewed EU Strategy 2011–14 for Corporate Social Responsibility, Brussels, 25.10.2011 COM 2011, 681 final.
Google Scholar

FDA (2018), Information on the Orphan Products Clinical Trials Grants Program, https://www.fda.gov/ForIndustry/DevelopingProductsforRareDiseasesConditions/wh, [accessed: 2.02.2018].
Google Scholar

FDA/CEDER SIBA (2015), Patents and Exclusivity, ‘FDA/CDER SIBA Cronicles’, May 19th.
Google Scholar

Friedman, M. (1970), The Social Responsibility of Business is to Increase its Profits, ʽThe New York Times Magazineʼ, http://www‑rohan.sdsu.edu/faculty/dunnwerb/rprtns.friedman.html
Google Scholar

Henderson, D. (2001), The Case Against ‘Corporate Social Responsibility, ‘Policy’, http://www.cis.org.au/Policy/winter01/polwin01-6.htm, [accessed: 1.02.2018].
Google Scholar

IOM (Institute of Medicine) (2010), Rare Diseases and Orphan Products. Accelerating Research and Development, Field, M. J., Boat, T. F. (eds.), Washington, DC: The National Academies Press.
Google Scholar

Lee, M., Kohler, J. (2010), Benchmarking and Transparency: Incentives for the Pharmaceuticla Industry’s Corporate Social Responsibility, ‘Journal of Business Ethics’, DOI: 10.1007/s10551–010–0444‑y.
Google Scholar

Leisinger, K. M. (2005), The corporate social responsibility of the pharmaceutical industry: idealism without illusion and realism without resignation, ‘Business Ethics Quarterly’, Vol. 15, Issue 4.
Google Scholar

Lὅrniczy, Formankova (2015), Business Ethics and CSR in Pharmaceutical Industry in the Czech Republic and Hungary?, ‘Acta Universitaties Et Silviculturae Mendelianae Brunensis’, Vol. 63, 218, DOI: 10/11118/actaun201563062011.
Google Scholar

MarketLine (2013), Orphan drugs rescue from patients cliff, MarketLine Case Study, Reference Code: ML00013–049, www.marketline.com, the access from the library of the University of Lodz.
Google Scholar

MarketLine (2015), Company profile, Biogen, Inc., Reference Code: FDF32667‑BEBA–4F5C–8341‑C3765B7F1E88, www.marketline.com, the access from the library of the University of Lodz.
Google Scholar

Market Realist, Biogen’s Targeted Marketing Strategy for Spinraza in 1Q17, http://marketrealist.com/2017/04/biogen‑developed‑targeted‑marketing‑strategy‑spinraza-1q17/, [accessed: 1.02.2018].
Google Scholar

Min, M., Desmoulins‑Lebeault, F., Esposito, M. (2017), Should Pharmaceutical Companies Engage in Corporate Social Responsibility?, ʽJournal of Management Developmentʼ, Vol. 36, No. 1.
Google Scholar

Nussbaum, A. (S.) K. (2008), Ethical corporate social responsibility and the pharmaceutical industry: A happy couple?, ʽJournal of Medical Marketingʼ, Vol. 9, No. 1.
Google Scholar

Orphan Drug Act, https://www.fda.gov.RegulatoryInformation/LawsEnforcedbyFDA/SignificantAmend, [accessed: 26.01.2018].
Google Scholar

Porter, M. E., Krame, M. R. (2006), Strategy & Society. The Link Between Competitive Advantage and Corporate Social Responsibility, ’Harvard Business Review’, HBR.ORG, December 2006.
Google Scholar

Public Health, Rare Diseases, https://ec.europa.eu/health/rare_disease/policy/en, [accessed: 26.01.2018].
Google Scholar

Public Law 97–414 (1983), An Act To amend the Federal Food, Drug, and Cosmetic Act to facilitate the development of drugs for rare diseases and conditions, and for other purposes, 4 January 1983, 97th Congress, 96 STAT.
Google Scholar

Public Law 107–280 (2002), Rare Disease Act of 2002, November 6, 2002, 107th Congress, 116 STAT.
Google Scholar

SMA Europe (2017), Biogen provides community update on Spinraza European pricing, SMA Europe News, http://www.sma‑europe.eu/news/biogen‑provides‑community‑update‑on‑spinraza‑eur, [accessed: 7.02.2018].
Google Scholar

Weintraub, A. (2017), Biogen’s Spinraza sparks pricing concerns as Trump renews attack on pharma, ‘Fierce Pharma’, https://www.Fiercepharma.com/pharma/biogen‑s‑spinraza‑sparks, [accessed: 19.05.2017].
Google Scholar