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Volodina A, Sax S, Anderson S. Corporate Social Responsibility in Countries with Mature and EmergingPharmaceutical. Pharmacy Practice (Internet) 2009 Oct-Dec;7(4):228-237.

www.pharmacypractice.org (ISSN: 1886-3655)228

ABSTRACT

*

In recent decades the concept of Corporate SocialResponsibility (CSR) has been adopted by manybusiness sectors, including the pharmaceuticalindustry. However, in this and other sectors itsapplication remains variable, particularly betweenmature and developing economies. Its stakeholdersinclude pharmacy and medical students, theirattitude to the involvement of companies in sociallyresponsible activities will be important determinantsof public response to the industry.Objective: To investigate the knowledge, attitudesand practices of senior medical and pharmacystudents towards the CSR concept in thepharmaceutical sector in mature (Germany) anddeveloping (Russia) markets.Methods: A questionnaire survey was carried outamong senior pharmacy and medical studentsduring the summer semester 2008 in two Russianand one German university. In each country 120questionnaires were distributed. The response ratewas 95% in Russia and 93% in Germany.Results: Although the relevance of CSR was widelyacknowledged by the students, very few wereaware of CSR practices currently performed by

companies. The reputation of the pharmaceuticalindustry was generally poor: less than 15% ofrespondents gave credence to the informationprovided in advertisements and fully supportedpricing strategies as well as policies towards thedeveloping countries. When choosing an employermore than 90% of respondents consider the policiesaffecting an employee directly as pivotal. However,for a high proportion of students (59% in Russia and64% in Germany) socially irresponsible behavior bycompanies has a significant negative impact.Conclusions: This paper identifies practices whichstudents believe should be a part of the CSRprogrammes for the pharmaceutical industry, and

also some that should be abandoned. Itrecommends that corporate communication on CSRshould be expanded. Key differences are seen inperceptions of students in Germany and Russiatowards the extent of irresponsible actions and thevariation between them.

*Anna VOLODINA. Master of Science in International

Health (MsIH). Section Epidemiology and Biostatistics,Heidelberg University, Institute for Public Health.Heidelberg (Germany).Sylvia SAX. Master of Public Health (MPH), InternationalPublic Health Consultant, evaplan Public Health Consult at

the University of Heidelberg. Heidelberg (Germany).Stuart ANDERSON. PhD. Associate Dean of Studies.London School of Hygiene and Tropical Medicine, London(United Kingdom).

Keywords:Drug Industry. Social Responsibility.Russia. Germany.

RESPONSABILIDAD SOCIAL

CORPORATIVA EN PASES CON

SECTORES FARMACUTICOS MADUROS

Y EMERGENTES

RESUMEN

En las ltimas dcadas, el concepto deresponsabilidad social corporativa (RSC) ha sidoadoptado por muchos sectores empresariales,incluyendo la industria farmacutica. Sin embargo,tanto en este como en otros sectores, su aplicacines variable, particularmente entre las economasmaduras y en desarrollo. Entre los decisores seencuentran los estudiantes de farmacia y medicina,y su actitud ante la participacin de las empresas enactividades socialmente responsables ser undeterminante importante de la respuesta del pblicoante la industria.Objetivo: Investigar el conocimiento, actitudes yprcticas de los estudiantes de ltimos aos de

farmacia y medicina sobre el concepto de RSC enlos mercados farmacuticos maduros (Alemania) yen desarrollo (Rusia).Mtodos: Se realiz una investigacin entreestudiantes de ltimos aos de farmacia y medicinadurante el semestre de verano de 2008 en dosuniversidades rusas y una alemana. En cada pas sedistribuyeron 120 cuestionarios. La tasa derespuesta fue del 95% en Rusia y del 93% enAlemania.Resultados: Aunque la importancia de la RSC fuereconocida por los estudiantes, muy pocos conocalas prcticas de RSC actualmente realizadas por lasempresas. La reputacin de la industriafarmacutica era en general pobre: menos del 15%de los respondentes daba crdito a la informacinproporcionada en los anuncios y apoyabacompletamente estrategias de precios as comopolticas para pases en desarrollo. Cuandoseleccionaban un empleo, ms del 90% de losrespondentes consider las polticas que afectan alempleador como crticas. Sin embargo, para unaalta proporcin de estudiantes (59% en Rusia y64% en Alemania) las actitudes socialmenteirresponsables de las empresas tena unsignificativo impacto negativo.Conclusiones: Este artculo identifica las prcticasque los estudiantes creen que deberan formar partede los programas de RSC de la industria

farmacutica, as como los que deberan abandonar.Se recomienda que se aumente la comunicacincorporativa sobre la RSC. SE han visto diferencias

Original Research

Corporate social responsibility in countries withmature and emerging pharmaceutical sectors

Anna VOLODINA, Sylvia SAX, Stuart ANDERSON.Received (first version): 19-Mar-2009 Accepted: 12-Sep-2009

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www.pharmacypractice.org (ISSN: 1886-3655) 229

clave en la percepcin de los estudiantes enAlemania y Rusia sobre la extensin de lasacciones irresponsables y la variedad de ellas.

Palabras clave: Industria farmacutica.Responsabilidad social. Rusia. Alemania.

INTRODUCTION

The concept of Corporate Social Responsibility(CSR) is now well-established in many Europeancountries although it remains contested andcontroversial in some places. The EuropeanCommission defines CSR as a concept wherebycompanies integrate social and environmentalconcerns in their business operations and in theirinteractions with their stakeholders on a voluntarybasis.

1 Beyond Europe, the USA and a few other

countries its adoption remains limited andfragmented. CSR is an emerging practice in mosttransitional countries, including Russia.

Earlier definitions emphasized the moral nature ofCSR. In their review of the changing nature ofbusiness ethics Kilcullen and Koolstra defined CRSas the degree of moral obligation that may beascribed to corporations beyond simple obedienceto the laws of the state.

2CSR had its origins in the

1950s in ideas about the social obligations ofcorporations; corporate decision making should bedetermined by societal values within specificrealms, such as economic and legal.

3 The idea of

CRS as stakeholder obligation resulted fromacceptance that businesses should be answerableonly to those who directly or indirectly affect or areaffected by a firms activities. Stakeholderobligation typically extends to individuals andorganizations (employees, customers andsuppliers), communities (local residents and specialinterest groups), regulators and the media.

The concept has received considerable attentionfrom researchers investigating the activities ofcorporations in a range of sectors, most notablytobacco and chemicals. Palazzo and Richterdemonstrated how large corporations are able toembrace and manipulate CSR in ways that

promoted their own business aims; tobaccocompanies have to deny damaging aspects of theirpast behavior, and present themselves as reformedand enlightened as part of the CSR strategy.

4

Hirschhorn similarly concluded that a sociallyresponsible tobacco corporation was an oxymoron.

5

The practices and consequences of corporate socialresponsibility by a tobacco company in a developingcountry have been vividly described by Barracloughand Morrow.

6A more positive impact of CSR in the

chemical industry has been described by Givel.7

To date CSR in the pharmaceutical sector hasreceived only limited attention from researchers,although industry publications have considered the

issue at length. Dukes devotes a section to it in hisbook on the law and ethics of the pharmaceuticalindustry

8, along with a chapter on the relationship

between the industry and the developing world. Hestates that within this sector business and healthinterests often run in parallel, but that they can alsodiverge and conflict with one another. He examinesmajor ethically-questionable activities ofpharmaceutical companies, including thedisproportionate spending of earnings on marketing,

vaguely defined relationships with medicalprofessionals, and the inappropriate setting ofresearch agendas.

Corporate Social Responsibility in thepharmaceutical sector

Due to the number of ethical issues associated withpharmaceutical business and the vulnerability of thepeople to its products, CSR has a high relevance forpharmaceutical companies. Traditional marketforces of supply and demand cannot always beapplied to pharmaceutical products, since:- Patients cannot really make a choice whether to

buy drugs or not.

- Patients cannot usually make informed choicesabout which particular drug to buy. They have totrust the opinions of health professionals suchas doctors and pharmacists.

- The consequence of not having access to drugs,or not being able to buy a drug, is very often aquestion of life and death.

Since in most countries pharmaceutical companiesoperate within the private sector, making profits fortheir stakeholders by developing and sellingmedicines is their core business. Adoption of theCSR concept can, however, influence howmedicines are sold, which pricing strategies areused, and how reasonable they are in a specific

country setting.

Today, pharmaceutical sector CSR is practicedmainly by the multinational pharmaceuticalenterprises originating in the USA and the EuropeanUnion, often collectively referred as Big Pharma.The situation for the German pharmaceuticalindustry is typical of the situation for CSR in thepharmaceutical industry in Europe generally, due touniform regulatory standards, common Europeanagreements on CSR, and high levels of mergerwithin the pharmaceutical industry.

Since CSR is a voluntary engagement, eachcompany decides individually on the scope of its

CSR activities. They can be classified according towhether they target the local community, employeesor the environment. Currently, pharmaceuticalcompanies demonstrate social engagement in thefollowing ways:- Donations and sponsorships: these include a

variety of community and environmental projectsas well as humanitarian aid to the developingcountries.

- Promotion of research: companies establishprivate research institutes/foundations, andprovide grants and scholarships to supportyoung scientists.

- Introduction of environmentally friendlytechnologies.

- Establishment of voluntary political actioncommittees.

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- Advocacy of human rights.

So far there appears to be no unified approach toCSR in the pharmaceutical sector, as there is noagreement between relevant stakeholders and theindustry on the scope of socially responsiblepractices by pharmaceutical companies.

9,10 This

lack of a common CSR philosophy means thatactivities of particular companies are often short-term and inconsistent, which hinders evaluation ofthe CSR impact of the industry on both thecommunity and the environment.

9

Corporate Social Responsibility in mature andemerging markets

The CSR concept underwent a long way ofdeveloping and standard setting at the internationallevel. An important step in the development of CSRwas the Lisbon Summit in 2000. It was organized inorder to discuss controversial issues of globalizationand rapid technological development that shifted theworld economy.

11During this Summit the European

Council appealed to business to do more to meetthe CSR goals. The result of this summit was aGreen Paper on CSR

12 which was followed by

Commission Communication on CSR.13

Since then the European Commission hascontinued to promote the CSR agenda bydeveloping key policy documents, supporting public-private partnerships and research, and raisingawareness through forums and publications. In2002 the First European Multi-Stakeholder Forumon Corporate Social Responsibility was established.Finally, the Millennium Development Goals,formulated within the United Nations Development

Program in 2003 serve as a compass for businessin developing CSR programmes.

There have to date been few if any studies thathave compared the implementation of the CSRconcept between developed and transitionalcountries. The countries of Europe have maturepharmaceutical sectors and mature legal and ethicalframeworks. Transitional countries undergoingtransformation from social to market economieshave transitional pharmaceutical sectors and oftenincomplete and imperfect legal and ethicalframeworks. In Russia, for example, marketeconomy principles were first introduced in 1991and the pharmaceutical market only recently has

entered a phase of rapid growth.14

It will take sometime before it reaches the same level of maturity asthe German market.

15

Current economic and social forces driving thedevelopment of CSR in Europe have not had thesame degree of influence in Russia. Awarenessamongst business leaders, government officials andcivil society about the CSR concept is very low, asituation confirmed by research conducted by theAssociation of Managers in Russia in 2002-2005.

15

Company executives in the pharmaceutical sectorbelieve that obstacles to the successfulimplementation of CSR include a lack of a legalframework for philanthropic activities and undefined

boundaries of business engagement.16 Manyobservers note that an accurate understanding ofthe CSR framework for business development is

inherent in mature companies with well-establishedcorporate cultures.

14The challenge for CSR in the

evolving pharmaceutical sector in Russia is to scaleup existing initiatives and to raise awarenessamongst all stakeholders in order to make thisconcept an essential part of business development.

Awareness amongst students of CorporateSocial Responsibility

Medical and pharmacy students are importantstakeholders for pharmaceutical companies. Bypromoting and prescribing medicines, by influencingresearch and development (R&D) priorities, and byadvising customers in drug stores, future physiciansand pharmacists will have an important impact onthe pharmaceutical industry, as well as on thehealth of people, in the near future. Their perceptionof CSR-associated responsible practices and theirability to see the long-term impact of private sectorbusiness activities will directly contribute to thefurther development and promotion of the CSR

concept by pharmaceutical companies.

Several studies of the awareness of ethical issuesby pharmacy and medical students have beenreported. Latif and Berger carried out an extensivestudy of moral reasoning amongst pharmacystudents and community practitioners in America.

17

They found significant group differences in moralreasoning, and concluded that the communitypharmacy setting may in fact hinder moraldevelopment in relation to the practice of pharmacy.In their review of the scope of pharmacy ethicsWingfield, Bissell and Anderson concluded thatresearch was required into how best to teach andassess ethical competence before practice, and into

the degree of influence that the businessenvironment has on the value system ofpharmacists.

18Yet little is currently known about the

knowledge and attitudes of pharmacy students to arange of subjects which present such dilemmas.

The main aim of this study is to describe theknowledge, attitudes and practices of seniorpharmacy and medical students in an industrialized(Germany) and a transitional (Russia) societyrespectively, concerning the CSR concept in thepharmaceutical sector. The two countries werestudied in order to understand and compareperceptions amongst students in the mature(German) and the developing (Russian)

pharmaceutical markets respectively.

The study has the following specific objectives:1. To determine the knowledge of the studentsabout the CSR concept and socially responsibleactivities currently performed by pharmaceuticalcompanies in Russia and Germany;2. To identify the factors perceived as essential forsocially responsible pharmaceutical companies;3. To investigate the reputation of thepharmaceutical industry amongst senior pharmacyand medical students in Russia and Germany;4. To estimate the extent to which the CSRconcept influences the professional practices ofstudents, such as choice of employers or partnersfor professional cooperation.

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METHODS

The study design was a cross-sectional study,which included descriptive and comparativecomponents. The descriptive component focusedon the definition of a socially responsiblepharmaceutical company given by the students and

the importance of the CSR concept for them aspotential employees. The comparative aspectincluded knowledge of current CSR practices andattitudes towards the pharmaceutical industryamongst the students in these two regions. Russiaand Germany were selected as examples ofcountries with transitional and mature economies byconvenience. The setting for the study was theUniversity of Heidelberg in Germany and twoUniversities in Russia: the State Medical Academyand Voronezh State University, both located in thecity of Voronezh. The research proposal wasapproved by the Ethics Committees of both theDepartment of Tropical Hygiene and Public Healthof the University of Heidelberg and by the

Pharmaceutical Department of the Voronezh StateUniversity. Selection of the students was donethrough purposive homogeneous sampling. Thecriteria for selection were as follows:

enrolment in the medical or pharmaceuticalfaculty of the participant universities;

full-time tuition;

completion of at least 4 years of study inmedicine or pharmaceutical science.

The final year of undergraduate study was chosenas a selection criterion since after four years ofstudy medical and pharmacy students usually havesufficient knowledge of their future fields of practice,

related public health issues and the responsibilitiesand position of the pharmaceutical industry in thehealth sector to make informed decisions abouttheir futures. Senior students are also more likely toidentify their expectations concerning the activitiesof potential employers. Other respondentcharacteristics such as gender and age were notcontrolled.

Methods of data collection included a questionnairesurvey, conducted at the universities during thespring semester, 2008. A survey questionnaire wasdeveloped in English and translated into Russianand German. It was based on questions emergingfrom the literature review and on the similar survey

instruments used to assess the social image ofdifferent industrial sectors. The questionnaireconsisted of seventeen questions, the first of whichwas open-ended; the others included closed-endedquestions, multiple choice questions, and scalingquestions to collect quantitative data.

Students were asked to fill out the questionnaires atthe beginning of their morning lectures; the timerequired was specifically allocated by teaching staff.Before every questionnaire completion exercise theresearcher explained in Russian or in English thepurpose of the study, reassured students about itsconfidentiality, and indicated the time required tocomplete it. In each country 120 questionnaires

were distributed, 60 for each of the four facultiesacross the two countries. The response rate was95% in Russia and 93% in Germany.

The quantitative data obtained from the study wasanalyzed using the Epi Info software package. Anopen-ended question about socially responsiblepractices of pharmaceutical companies wasanalyzed manually using the method of inductivecontent analysis.

RESULTS

Objective 1: Knowledge of the CSR concept andcurrent practices

In order to assess their knowledge about CSR in thepharmaceutical industry, the students were firstasked to define a socially responsiblepharmaceutical company. The aim of this questionwas to encourage students to give their own ideasand to express their opinions about the topic beforethey moved on to the closed questions. 84% ofRussian and 71% of German students were able todefine activities that they perceived to be sociallyresponsible for pharmaceutical companies; overall23% of the respondents did not complete thequestion or wrote I do not know/I have neverthought about it. A majority (80%) of the Russianstudents stated that a socially responsiblepharmaceutical company was one that ensured afair salary, high labor standards, careeropportunities and offered social guarantees such asmedical insurance, paid holidays and pension. Lessthan 20% of these Russian students mentionedresponsible activities aimed at society or theenvironment, such as investment in environmentallyfriendly technologies or community developmentprojects.

Similar results were obtained for the Germanstudents: 70% rated activities directed towardsemployees most highly. A substantial proportion ofthe respondents, 30%, indicated in general termsthat responsible pharmaceutical companies shouldbe less profit-orientated, and should have a senseof responsibility towards society, without specifyingany particular activities. Less than 15% of Germanstudents mentioned support for humanitarianprojects in developing countries, or having highethical standards for the conduct of clinical trials.

To assess the level of knowledge about currentCSR performance of pharmaceutical companiesstudents were asked if companies operating in their

countries included CSR activities in their businessoperations, and if yes to name the companies. 60%of German and 59% of Russian students stated thatthey did not know whether pharmaceuticalcompanies undertook any activities specificallydesigned to benefit employees and society, definedby the students as socially responsible activities.Very few of those who did claim to know of theseactivities could name a company delivering them.

Knowledge of current CSR practices ofpharmaceutical companies in the area ofenvironmental protection was also low amongst allrespondents. 70% of German and 60% of Russianstudents stated that they did not know whether

pharmaceutical companies, operating in theircountries, took actions to protect the environment.32% of students in Russia thought that

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pharmaceutical companies did not do anything inthis area; in Germany this opinion was held by 14%of students. An example of a pharmaceuticalcompany currently addressing environmentalproblems in its business operations was given byonly 5% of all respondents.

Objective 2: Essential Factors for CSR in thepharmaceutical industry

We were interested in students opinions about theimportance of socially responsible practices for thepharmaceutical industry. This interest came fromthe fact that the boundaries of CSR in this particularindustry are vague, and its necessity is oftenquestioned in the literature.

19Firstly, students were

asked to indicate their level of support for thestatement: besides profit-making, a pharmaceuticalcompany should also be actively engaging itself [inactivities] for the good of the society in which itoperates. Students selected a response from fullyagree, partly agree, disagree entirely or I do not

know. The results indicated that the need for thepharmaceutical industry to have clear CSR policiesis seen as very important by students in bothcountries. 92% of Russian and 95% of Germanstudents fully or partly agreed with this statement.Only 5% of respondents in Russia and 4% inGermany disagreed entirely; the remainingrespondents answered I do not know.

Secondly, we analyzed students opinions about theimportance of socially responsible practices ascompared to regular business operations. Wecollated a number of activities that were identified inthe literature as being essential for thepharmaceutical industry, and asked students to rate

them according to their perceived importance. Thelist of activities included both socially responsiblepractices, such as drug donations and developmentprojects, and purely business activities, such asresearch and development (R&D), drug production,and marketing. Students ranked the activities on ascale ranging from essential, important,somewhat important to not important.

Students in both countries had comparablepriorities. The top five activities (of ten), ranked byrespondents in both countries as essential orimportant for the pharmaceutical industry werevery similar (percentage of students giving thisanswer in brackets):

Russian students:1.Providing comprehensive information on the

companys products (95%);2.Ensuring drug safety/quality (94%);3.Subsidizing treatment for the companys

employees (90%);4.Undertaking research and development (87%);5.Marketing and selling medicines (86%).

German students:1.Ensuring drug safety/quality (97%);

2.Undertaking research and development (97%);3.Providing comprehensive information on the

companys products (88%);4.Subsidizing treatment for the companys

employees (87%);5.Undertaking drug production (84%).

Socially responsible activities (such as supportingvulnerable populations with subsidized medicines,and community development projects) were at thebottom of the priority lists in both countries; onaverage they received support from 63% of Russianand 65% of German students.

Objective 3: Reputation of pharmaceuticalindustry amongst students

To assess the reputation of the pharmaceuticalindustry amongst medical and pharmacy students inboth countries, we asked the question: Dopharmaceutical companies generally do a good jobby serving people today?

38% of German and 55% of Russian studentsanswered positively to this question; however, 40%of students in Germany and 23% in Russia were notsure about the impact of pharmaceutical companieson society. 22% of the students in each countryresponded that pharmaceutical companies do notdo a good job by serving people and society ingeneral.

To further analyze the image of pharmaceuticalcompanies amongst the students, we included anumber of questions regarding the current activitiesand policies of the companies. Students were askedto choose their level of support for several positivestatements about pricing, marketing and support of

developing countries. The results for studentsopinion on current practices are presented inFigures 1, 2 and 3.

Objective 4: Impact of pharmaceutical companyCSR on choice of employer

One of the questions in this research study wasdesigned to assess the extent to which thereputation of pharmaceutical companies in the areaof corporate social responsibility influences medicaland pharmacy students in their employmentchoices, or their decisions to cooperate with thepharmaceutical industry in areas such as researchand training. Students were asked to rank the

importance of a number of characteristics in apotential employer in making their decision. Someof these characteristics reflected sociallyresponsible policies of a company, such as usingenvironmentally friendly technologies orparticipating in the life of the community. Otherfactors were purely business-oriented and affectedan employee directly, for example financial rewardor interesting area of work. Figure 4 summarizes thenumber of students indicating essential andimportant ranking for each of the factors.

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33

29

20

24

6

12 12 12

4

1

10

678 8

2

0

5

10

15

20

25

30

35

Germanmedical

Germanpharmacy

Russianmedical

Russianpharmacy

disagreeentirely

partly agree

fully agree

I do no t know

Figure 1: Support for the statement Pharmaceutical companies use fair pricing strategies when marketing their products

26 27

18

24

13

1817 17

3 3

10

88

2

5

10

5

10

15

20

25

30

German medical Germanpharmacy

Russian medical Russianpharmacy

disagree entirely

partly ag ree

fully agree

I do not kno

Figure 2: Support for the statement: Pharmaceutical companies provide true information on their products inadvertisements and promotional campaigns

15

17

8

11

15 16 15

21

32

54

17

15

22

14

0

5

10

15

20

25

Germanmedical

Germanpharmacy

Russianmedical

Russianpharmacy

disagree entirely

partly agree

fully agree

I do not know

Figure 3: Support for the statement Pharmaceutical companies take actions to improve the health of people in developing

countries

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46

90

35

53

70

93

67

98

42

67

88

93

0

20

40

60

80

100

120

Env.protection Fair financialreward

Intangiblerecognition

Invo lvement intocommunity life

Positive image Interesting work

German students Russian students

Figure 4: Factors identified by German and Russian students as essential or important in choosing a pharmaceuticalcompany as a potential employer

Following analysis of further questions we identifiedthree main reasons for pharmacy and medicalstudents in Russia and Germany to considermoving from a particular pharmaceutical companyas their employer. For Russian students these were

(percentage of students giving this answer inbrackets):1.Low financial reward (96%);2.No career development/lack of interest in the work

(91%);3.Poor working environment (78%).

The main factors that could motivate Germanmedical and pharmacy students to change apharmaceutical company as employer were:1.No career development/lack of interest in the work

(96%);2.Poor working environment (95%);3.Low financial reward (87%).

However, the number of students who consideredthe lack of policies on corporate social responsibilityto be an important reason for changing an employerwas surprisingly high. The three main areas ofsocially irresponsible activities for students inRussia were as follows (percentage of studentsgiving this answer in brackets):1.No transparency within the company (64%);2.Engagement of a company in a court case (64%);3.Environmental pollution of my country/city (51%).

The three main reasons ranked by Germanstudents as important were:1.Environmental pollution of my company/city

(70%);

2.Engagement of a company in a court case (51%);3.Negative image of a company in the media (38%).

DISCUSSION

This study has shown that medical and pharmacystudents in both Germany and Russia have ageneral understanding of the CSR concept andbusiness activities related to it. Their definitions of a

socially responsible company were in line with thosefound in the literature. They recognize the relevanceof CSR for the pharmaceutical industry, and thismust be an important factor in future discussionsabout the relevance of CSR to the industry.However, students definitions of a sociallyresponsible pharmaceutical company mainly refer toemployment policies; the societal andenvironmental dimensions of the CSR concept aregenerally missing. Indeed, there appears to be atendency for pharmacy and medical students toequate CSR with good employment practices.Whilst these are clearly important this tends tosuggest that students are more concerned with their

own personal well-being than with wider societaland environmental issues.

Indeed, pharmacy and medical students in bothcountries appear to make no clear distinctionbetween CSR and employment practices. Yet this isa distinction between what companies choose to dovoluntarily and what they are obliged to do in orderto comply with the law. On the other hand theyappear to make a clear distinction betweencorporate social responsibility and corporate socialirresponsibility. For the industry the impact of anypractices that are perceived to be sociallyirresponsible, such as pollution or unreasonablepricing policies, can easily outweigh any benefits

that might accrue from investment in CSR practices.

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The fact that students attach great importance toresponsible policies towards employees, but omitcompanies contributions to community and safeenvironments, could reflect their position as futureemployees. This supports previous observations onthe association between the perception of the CSRconcept and the position of the stakeholder

1,20and

emphasizes the importance of engaging all relevantstakeholders in an open dialogue in order todevelop firm commitments to CSR polices by acompany or industry sector.

21However, it could also

reflect the fact that students are not clear about thescope of CSR and its implementation mechanismsfor the pharmaceutical industry in either country.

When rating the importance of different activitiesperformed by the pharmaceutical industry, studentsin both countries give priority to traditionalpharmaceutical business practices, such asproduction and the marketing of medicines.Recognition of CSR activities is rated as ofsecondary importance, although the number of

students who consider them to be important is quitehigh. This indicates that, for our study groups, fullimplementation of the CSR concept in thepharmaceutical sector could be carried out withoutundermining core responsibilities of the industry,and would not be to the detriment of financiallyprofitable activities undertaken by the industry.

For successful implementation of CSR programmesit is important that stakeholders, and society ingeneral, understand the factors that limit thecontribution of the pharmaceutical industry to publicissues. Some activities, such as drug donationprogrammes and subsidies, may not becomecommon CSR policies in many pharmaceuticalcompanies22, but companies may need to givefurther consideration to societal and environmentalissues.

The level of knowledge about current CSR practicesin pharmaceutical companies does not differsignificantly between students in mature andtransitional economies. We might reasonably expectthat German students would be better informedabout these issues, since our analysis shows thatpharmaceutical companies operating in Europe aremore active in the area of CSR. However, ourresearch indicates that German students are in factno better informed than their Russian counterparts.

This could indicate that the current tools used bypharmaceutical companies to communicate CSRactivities are not achieving their full potential, or thatsome stakeholders (such as pharmacy and medicalstudents) are missing from the list of targetaudiences. Our research shows that CSR is clearlya meaningful component for the reputation-buildingstrategies of companies, and that it would influencedecisions taken by our study group. A deliberateand reasonable level of CSR communication can beused to enhance HR practices.

12 It appears that

pharmaceutical companies have not so far fullyutilized CSR policies to their advantage in gainingthe support, trust and respect of the next generationof doctors and pharmacists.

CSR currently plays some part in influencingstudents choice of potential employer; and it is

reasonable to suggest that this influence willincrease in the future. Our study shows that, out ofsix possible factors involved in choosing anemployer, the leading ones are financial reward andinteresting area of work. But at the same time aremarkable number of students attach considerableimportance to the positive image of a company; this

image undoubtedly has a CSR component.

Given the increasing world attention paid toenvironmental issues and globalization in general,we expect to see ever increasing attention paid bydifferent stakeholders to the environmental policiesand community engagement of the private sector.We believe that more information and furtherawareness of CSR issues by relevant stakeholdersis needed. Increased sensitization to these issuesmay come from the companies themselves, as acomponent of human resources and public relationsactivities, or from other sources intended forrelevant stakeholders.

23

The role of universities is also key to disseminationof information about CSR and its mechanisms.

24At

present CSR is taught in Business Schools andMBA programs in Russia and Germany, but not inmedical and pharmacy schools. None of thecurricula of the courses attended by our researchparticipants included CSR. There is a risingexpectation that professional staff recruited topharmaceutical companies will be knowledgeableabout CSR

12, and it will become increasingly

important for teaching about the CSR concept to beincluded in the curricula of these schools. Doing sois likely to have a significant impact on futureleaders within the pharmaceutical and medicalsectors.

One of the striking findings of this study was thediscovery that support for the pharmaceuticalindustry and its business practices is low amongstmedical and pharmacy students in both Germanyand Russia. Moreover, in their appraisal of currentpractices of pharmaceutical companies, Germanstudents were especially critical. The roots of suchlow opinions about the pharmaceutical industry aremost probably different in Germany and Russia. InGermany, where the market is strong andcompetitive, it may be a consequence of frequentlypublicized drug scandals, drug withdrawals, unclearrelations with physicians, and criticisms of the

industry by non-governmental organizations.

25,26,27

The finding that companies should be less marketoriented and less profit driven, expressed bymany German students, highlights the low level oftrust in the activities of pharmaceutical companiesamongst this group.

The tarnished image of pharmaceutical companiesin Russia may reflect the difficulties of thetransitional nature of the economy, when the role ofbusiness is not clear and governmental institutionsare weak. A market economy was introduced inRussia two decades ago, and the Russianpharmaceutical industry has only recently become asignificant sector where high profits are being

reported.16

If companies in Russia learn from theexperience of their western colleagues, andintegrate CSR policies into their activities in the

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early stages of development, when corporateculture and the reputation of the industry are beingshaped, it should help them to improve their imageamongst a wide range of stakeholders, includingpharmacy and medical students, and avoidpotentially harmful actions (both to themselves asan industry and to society at large). Whatever the

reasons for the low opinion and confidence in thepharmaceutical industry amongst students, it canhave a far reaching impact on their futureprofessional practices. In this study we addressedonly the choices students make about employersand cooperation partners, but feeling good or badabout the company people work for has broaderimplications for job satisfaction, corporate climate,motivation and performance of the employees.

CONCLUSIONS

This study of CSR amongst medical and pharmacystudents in two countries with different states of

maturity of the pharmaceutical industry hasdemonstrated that medical and pharmacy studentshave a general understanding of the CSR concept,which, however, is determined to a large degree bytheir position as stakeholders. For CSR policies tobecome established in both countries, anappropriate educational approach to CSR, led bythe universities, is needed.

Students appraisal of business practices used bypharmaceutical companies in their home countriesappears to be low, and this can influence theirsupport and collaboration with the pharmaceuticalindustry in the future.

Pharmaceutical companies operating in Russianeed to further develop and implement the CSRconcept in their business operations. Since CSR isa new concept in Russia, at this stage it isnecessary to collect and exchange the informationabout CSR and best-practices and to promote CSRinitiatives. It will facilitate the sustainability of the

pharmaceutical sector in the transitional economy.Multinational pharmaceutical companies operatingin Germany could usefully revise their currentpractices in the light of the CSR concept adopted byEuropean business forums and associations inorder to improve their reputation among keystakeholders. They need to consolidate their effortsand develop uniform CSR strategies that will befeasible for the pharmaceutical industry and at thesame time will meet the expectations of its keystakeholders.

There would appear to be scope for greater use ofthe CSR concept by the pharmaceutical industry inboth countries in formulating their human resources

policies and their reputation building strategies.Companies could usefully develop morecomprehensive CSR communication mechanismsand diversify them with new tools, using a range ofmedia including the internet, so as to include allrelevant stakeholders and ensure continuingdialogue with them.

CONFLICT OF INTEREST

The authors have no conflict of interest to disclosewith regard to this research.

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