MOB-Final for Print

7/25/2019 MOB-Final for Print

1/41

UNIVERSITY OF DHAKA

REPORT ON:

Corporate Social Responsibility inPar!ace"ticals

In#"stry o$ %an&la#es

Depart!ent' Finance

Co"rse' F()*)+)*,

Co"rse Na!e' -ana&e!ent an#Or&ani.ational %ea/ior


2/41

Page 0of 1)


3/41

Prepare# ForSei2 Tan3ila Dipti

Assistant Pro$essor4 Depart!ent o$Finance

Fac"lty o$ %"siness St"#ies4 Uni/ersity o$Da2a5

Prepare# %y

Na!e ID06 Kamrul Hasan Khan Shatil 28018

76 Saiful Islam Saif 28026

16 Motiur Rahman Utsha 27026

E-%A

Depart!ent o$ Finance

Sprin& 7*0)

Date o$ S"b!ission' 8an"ary ,47*0,


4/41


5/41

Page 7of 1)9etter o$ Trans!ittal

6 January, 2016

Ms.Sheikh Tanjila DiptiAssistant Professor, Department of inan!e

a!ulty of "usiness Stu#ies, $ni%ersity of Dhaka.

S"b3ect' S"b!ission o$ Assi&n!ent

Dear Ma#am,

This is our pleasure to present the assi&nment entitle# '(orporate

So!ial )esponsi*ility in Pharma!euti!als +n#ustry of "an&la#esh

The main purpose of this report -as to &et a *rief un#erstan#in& a*out the (S)

a!ti%ity. e ha%e trie# our le%el *est to !o%er the topi! effe!ti%ely, an# -e hope

that this report meets your e/pe!te# stan#ar#.

Please a!!ept this report an# o*li&e. e are ea&er to respon# to any uestions

that you may ha%e !on!ernin& this report.

ours Sin!erely,

amrul 3asan han Shatil 425015

Saiful +slam 425026

Motiur )ahman $tsha 4 2026

Page 1of 1)


6/41

Ac2no:le#&e!ent

This assi&nment -as !arrie# out un#er the &ui#an!e of Ms. Sheikh TanjilaDipti,

Assistant Professor, a!ulty of "usiness Stu#ies, $ni%ersity of Dhaka. e -ant

to thank her for her en!oura&ement an# assistan!e. 3er %alua*le su&&estionsan# !ontri*ution has *een %ery helpful for us.

7n a personal note, -e -ant to thank our family an# frien#s.

E;ec"ti/e S"!!ary

The aim of this resear!h -as to assess the effe!ti%eness of (orporate So!ial

)esponsi*ility 8(S)9 pra!ti!es of some lo!al !ompanies operatin& in

"an&la#esh. The resear!h spe!ifi!ally fo!use# on the e/tent to -hi!h !ompanies

pra!ti!in& (S) !omplie# -ith their poli!y an# re&ulation in%ol%in& their

employees. The resear!h in%ol%e# i#entifi!ation of !ompanies pro%i#in& (S),

o*tainin& information a*out the #etails of the (S) pra!ti!es a#opte# at these

!ompanies 8thou&h lookin& at their -e*site an# inter%ie-s9. The resear!h foun#that most (S) pra!ti!in& !ompanies pra!ti!e# (S) in their o-n spe!ifi! -ay,

an# that fe- !ompanies ha%e separate units for pro%i#in& (S) or &et a#%i!e

from (S) e/perts. +t -as often un!lear ho- mu!h money !ompanies spen# on

(S) an# it also foun# that many of these !ompanies, -hilst pro%i#in& (S), #i#

not !omply -ith the la-.

Page


7/41

Table o$ Contents Pa&eN"!ber

Title pa&e:::::::::::::::::::::::.. i

;etter of Transmittal::::::::.:::::::::::ii

A!kno-le#&ement::::::::::::::::::::iii

2.2.1. The therapeuti! &roups::::::::::::::::::::.:1>

2.2.2. AP+ manufa!turin& ::::::::::::::::::::.::...1?

2.3. ey Players::::::::::::::::::::::.::::::...1?

2.4. +ntra in#ustry "usiness Pra!ti!es:::::::::::::::::::...1?

2.5. (S)::::::::::::::::::::::.::::::::::1@

2.6. )e&ulatory rame-ork::::::::::::::::::::::.::1=

2.6.1. Dru& ormulation or eneration Testin&::::::::::::..1=

2.6.2. A#ministration of the )e&ulatory System::::::::::::..202.6.3. +nfrastru!tural Support:::::::::::::::::::::202.6.4. S!ientifi! Testin&::::::::::::::::::::::.:202.6.5. )e&ulatory Manpo-er:::::::::::::::::::::.212.6.6. Buality (ontrollin&::::::::::::::::::::::...212.6.7. )e&ional A!ti%ities::::::::::::::::::::::...21


8/41

Page )of 1)


9/41

3. CO-PANY PROFI9E

3.1.A(+::::::::::::::::::::::.::::::::::.22

3.2. Suare Pharma!uti!les ;imite# "an&la#esh::::::::::::::..2>

3.3. "e/im!oPharma::::::::::::::::::::::.::::..2?

3.4. la/osmithkline8S9 ::::::::::::::::::::::.:...2@

3.5. )enata ;imite#::::::::::::::::::::::.:::::.26

4. CSR INDE= CONSTRUCTION AND ANA9YSIS

4.1. (S) +n#e/ Ta*le::::::::::::::::::::::.::::.25

4.2.Analysis of (S) +n#e/ Ta*le:::.::::::::::::::::::.2=

4.2.1. Sharehol#er )elation:::::::::::::::::::::..>0

4.2.2. (onsumer )elation:::::::::::::::::::::: .>0

4.2.3. 1

4.2.4. (ommunity )elation::::::::::::::::::::::>1

4.2.5. ;o- (ost Strate&y::::::..::::::::::::::::.>2

4.2.6. Differentiation Strate&y::::::::::::::::::::..>2

4.2.7. Calue ain Performan!e:::..::::::::::::::::.>2

4.2.8. Monetary ain Performan!e::..::::::::::::..:::>>

5. FINDIN>S AND PO9ICY I-P9ICATION::::::::::.:::..>?

6. CONC9USION::::::::::::::::::::::.:::::..>@

7. REFFERENCES::::::::::::..::.::::::::::..:..>6


10/41

Page ,of 1)


11/41

1. INTRODUCTION

1.1 INTRODUCTION

(orporate so!ial responsi*ility 8(S), also !alle# !orporate

!ons!ien!e, !orporate !itienship or sustaina*le responsi*le *usinessE

)esponsi*le "usiness9is a form of !orporate selfFre&ulation inte&rate# intoa *usiness mo#el. (S) poli!y fun!tions as a selfFre&ulatory me!hanism

-here*y a *usiness monitors an# ensures its a!ti%e !omplian!e -ith the spirit

of the la-, ethi!al stan#ar#s an# international norms. ith some mo#els, a

firmGs implementation of (S) &oes *eyon# !omplian!e an# en&a&es in

Ha!tions that appear to further some so!ial &oo#, *eyon# the interests of the

firm an# that -hi!h is reuire# *y la-.H (S) aims to em*ra!e responsi*ility for!orporate a!tions an# to en!oura&e a positi%e impa!t on the en%ironment an#

stakehol#ers in!lu#in& !onsumers, employees, in%estors, !ommunities, an#

others.

Mohamma# Sanaullah, Dire!tor, (orporate Affairs I (ompany Se!retary of

Sin&er "an&la#esh sai#, G(orporate So!ial )esponsi*ility is one of the ne-

#imensions in !orporate mana&ement on!e if the fo!us -as on finan!ial

Mana&ement. Most of that time people -ere sayin& that ma/imiation of profit

is the main o*je!ti%e of the !ompany *ut in mo#ern times -e #o not speak like

that. e feel that the !ompanyGs !orporate mana&ementGs main o*je!ti%e is to

a!hie%e the !orporate &oal an# in!enti%es as -ell. hene%er you ha%e to

a!hie%e the !orporate &oal you think a*out the stakehol#erGs interest an# at

the same time the !orporate so!ial responsi*ility. (orporate So!ial

)esponsi*ility is for pro&ressi%e !ompanies an# #efinitely they -ill look after

the un#er pri%ile&e# people, the #istresse# people an# those -ho #onGt ha%e

the !apa!ity to sur%i%e in this so!ietyG.

1.2 Rationale o$ te st"#y

The main purpose of this stu#y is to kno- a*out !orporate so!ial

responsi*ility an# a!ti%ities of the pharma!euti!als in#ustry of "an&la#esh *y

stu#yin& !ompanys (S) in#e/. Su!h asFA(+ Pharma!euti!als ;t#., Suare

Page ?of 1)
http://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_sociologyhttp://en.wikipedia.org/wiki/Stakeholder_corporatehttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_sociologyhttp://en.wikipedia.org/wiki/Stakeholder_corporatehttp://en.wikipedia.org/wiki/Corporate


12/41

Pharma!euti!als ;t#., "e/im!o Pharma!euti!als ;t#., S Pharma!euti!als

;t#., )enata Pharma!euti!als ;t#.

1.> Ob3ecti/e o$ te st"#y

The purpose of this ualitati%e e/er!ise is to fin# out the e/tent an# the

kin# of (S) pra!ti!e *y !ompanies in "an&la#esh an# make

re!ommen#ations for esta*lishin& a national frame-ork to a#%an!e (S) in

the !ountry.

There is an in!rease in the uest for so!ial responsi*ility from the *usiness

se!tor *e!ause of its importan!e to the #e%elopment of any !ountry.

Therefore, !orporate so!ial responsi*ility is not a threat to a!hie%ement of

e!onomi! &oals of a !orporationK rather (S) is an opportunity an# !an *e the

*asis of e!onomi! #e%elopment of firms in terms of !ompetiti%e a#%anta&e in

&lo*al market. +t is !onseuently nee#ful for !ompanies to *e so!ially

responsi*le so as to *uil# their reputation, -hi!h may in turn affe!t their

!onsumersG patrona&e. This resear!h !an fin# the !on#ition of (S) proje!ts in

the !ompanies an# &i%e re!ommen#ation to the &o%ernment to make a rule

-hi!h -ill *e man#atory *y all profita*le !ompanies.

1.? -eto#olo&y o$ te st"#y

The resear!h on (orporate So!ial )esponsi*ility -as !on#u!te# o%er

annual reports of the respe!ti%e !ompanies of the spe!ifi! year. The

metho#olo&y use# to !on#u!t the stu#y -as a !om*ination of ualitati%e an#

uantitati%e analysis *ase# on annual reports, -e*sites, journals an#

ma&aines on the *asis of *roa# ran&e of sustaina*ility aspe!ts su!h as

!harita*le &i%in&, (S) an# human resour!e Mana&ement, #ri%ers for (S).

The parti!ipatin& !ompanies -ere !hosen from the &roup of lar&er nationalan# multinational !ompanies. i%e !ompanies from pharma!euti!al se!tors

liste# an# -ere !hosen as the sample for this stu#y, to fin# out the e/tent of

the use of !orporate so!ial responsi*ility a!ti%ities *y !ompanies in

"an&la#esh. e ran#omly sele!te# the !ompanies.

Page @of 1)


13/41

1.@ 9i!itations o$ te st"#y

The #iffi!ulty that -e fa!e# -hile preparin& the report areF

"u#&ete# times for the stu#yF

The first o*stru!t is time itself. Due to the time

limitation, the s!ope an# #imension of the proje!t has *een !urtaile#. As the

time limit -as assi&ne# for su*mittin& the proje!t -as %ery short, it -as not

possi*le to spen# suffi!ient time for the stu#y.

Data +nsuffi!ien!yF

Annual reports al-ays #o not proje!t the a!tual

performan!e of the !ompany. +t -as %ery #iffi!ult to !olle!t #ata, -hi!h is %ery

essential for interpretation. ;a!ks of re!or#s, insuffi!ient *ooks, pu*li!ation,fa!ts an# fi&ure narro-e# the s!ope of a!!urate analysis an# interrupte# the

-ays to make the report more useful an# attra!ti%e.

Page of 1)


14/41

1.6 9ist o$ Abbre/iations

ML( F Multi Lational (orporation

AP+ F A!ti%e Pharma!euti!al +n&re#ient

DPFross Domesti! Pro#u!t

+MS F +nter!ontinental Marketin& Ser%i!es, a market resear!h !ompany pro%i#in& #ata

on markets, espe!ially on health!are in#ustry

DAFoo# an# Dru& A#ministration

MP Foo# Manufa!turin& Pra!ti!e +S7F

+nternational 7r&aniation for Stan#ar#iation


15/41

2. In#"stry Analysis

2.1 C"rrent State

Pharma!euti!al is the !ore of "an&la#eshs 3ealth!are se!tor, an# pre%ails

as one of the most si&nifi!ant manufa!turin& in#ustry. ith a history starte# in

1=@0s, the in#ustry has !ome out as one of the most su!!essful pharma!euti!als

manufa!turin& in#ustry amon& the #e%elopin& !ountries.

After li*eration in 1=1, the in#ustry -as lar&ely #ominate# *y Multinational

(ompanies, an# the !ountry -as %ery mu!h #epen#ent on importin&. +n 1=52,

throu&h the formulation of national #ru& poli!y, an# #ru& !ontrol or#inan!e, a

#efine# &ui#eline for the #e%elopment of the in#ustry -as !reate#. "y then, @of the market -as #ominate# *y the ML(s, -hereas the rest -ere share# *y

some 1>> lo!al firms. Sin!e then, the lo!al firms ha%e esta*lishe# a stron&er

foothol#, an# the !ountry has *e!ome from an import #epen#ent to an a!ti%e

e/porter of pharma!euti!als pro#u!ts. At Present, the in#ustry meets = of

lo!al #eman# an# e/ports to more than 50 !ountries.

Surprisin&ly, the pharma!euti!al se!tor, -hi!h is -i#ely re&ar#e# as a 'hiF

te!h in#ustry, is the most #e%elope# amon& the manufa!turin& in#ustries in

"an&la#esh. )ou&hly 2@0 !ompanies are operatin& in the market. A!!or#in& to+MS, a $SF*ase# market resear!h firm, the retail market sie is estimate# to *e

aroun# "DT @@ *illion, -hi!h &re- *y 16.5 in 200=. The market sie in 2005

-as "DT ? *illion -ith a &ro-th of 6.=. The a!tual sie of the market may %ary

sli&htly sin!e +MS #oes not in!lu#e the rural market in their sur%ey. 3o-e%er, the

#e%iation is estimate# to *e not more than @F10 in either #ire!tion.

$nfortunately, there is no soli# information sour!e in "an&la#esh other than +MS.

The retail market is a*out =0 of the total market. +n that respe!t, the total

market sie is more than "DT 60 *illion.

7ne of the fastest &ro-in& se!tors -ith an annual a%era&e &ro-th rate

!onsistently in the #ou*le #i&its, "an&la#eshs pharma!euti!al in#ustry

!ontri*utes almost 1 of DP. +t is the thir# lar&est ta/ payin& in#ustry in the

!ountry. "an&la#eshi pharma!euti!al firms fo!us primarily on *ran#e# &eneri!

final formulations usin& importe# AP+s. "ran#e# &eneri!s are a !ate&ory of #ru&s

Page 00of 1)


16/41

in!lu#in& pres!ription pro#u!ts that are either no%el #osa&e forms of offFpatent

pro#u!ts pro#u!e# *y a manufa!turer that is not the ori&inator of the mole!ule, or

a mole!ule !opy of an offFpatent pro#u!t -ith a tra#e name. This #efinition is

use# *y *oth the DA an# the $nite# inomGs Lational 3ealth Ser%i!e 8L3S9.

A*out 50 of the #ru&s sol# in "an&la#esh are &eneri!s an# 20 are patente##ru&s. The !ountry manufa!tures a*out ?@0 &eneri! #ru&s for @,>00 re&istere#

*ran#s -hi!h ha%e 5,>00 #ifferent forms of #osa&es an# stren&ths. These

in!lu#e a -i#e ran&e of pro#u!ts from antiFul!erants, flourouinolones, antiF

rheumati! nonFsteroi# #ru&s, nonFnar!oti! anal&esi!s, antihistamines, an# oral

antiF#ia*eti! #ru&s. Some lar&er firms are also startin& to pro#u!e antiF!an!er

an# antiFretro%iral #ru&s.

The in#ustry has *een e/pan#in& lo!ally as -ell as internationally. ;o!al

market &re- at 2> in 2010, -hile the import rea!he# $SD @0 Million lan#mark.A num*er of firms &ot a!!re#itations from $SA, $, Australia et!. #e%elope#

markets, an# are un#er-ay to-ar# e/pansion into the #e%elope# markets.

;o!ally, firms are preparin& themsel%es for post 2016 s!enario, -hen T)+PS -ill

*e implemente#. Almost all the firms are up&ra#in& their fa!ilities an# takin& up

pre!autions for post 2016 s!enario, -hile a&&ressi%ely e/pan#in& in *oth lo!al

an# e/port markets.

The fa!tors *ehin# this #ramati! &ro-th rate of the in#ustry areF

3u&e Deman# in #omesti! market. a%ora*le re&ulatory authority for #omesti! manufa!turer

+n!reasin& health e/pen#iture #ue to health !ons!iousness.

Promisin& market for !ontra!t manufa!turin&

The in#ustry has *een e/perien!in& si&nifi!ant &ro-th o%er the last fe- years.

A lo!al in#ustry supportin& #ru& poli!y an# effe!ti%e re&ulatory frame-ork, alon&

-ith T)AD< )


17/41

hile T)+PS an# import #epen#en!e on ra- materials put !hallen&es to the

&ro-in& se!tor, prospe!t of the se!tor #epen#s lar&ely on the intera!tions amon&

the players, re&ulatory *o#ies an# the &o%t., -hether they !an meet up the

reuisites to !ontinue &ro-th of the se!tor -hile fa!in& the !hallen&es

The pharma!euti!al market in "an&la#esh is not lar&e enou&h !ompare# to

the total population #ue to the la!k of intention or a*ility of spen#in& the

population. Pharma!euti!al spen#in& is also amon&st the lo-est in the -orl# in

per !apita terms. 3ealth!are e/pen#itures !onsist of only >.? of DP. 3o-e%er,

the in!rease# a-areness of health!are an# the &o%ernments in!rease#

e/pen#iture in this se!tor is !han&in& the #eman# to in!rease in this se!tor. +n

a##ition to the #eman# of therapeuti! #ru&s, the #eman# for '-ellness #ru&s

su!h as %itamins an# minerals are in!reasin& &ra#ually, -hi!h is %ital for the

future &ro-th of the se!tor.

2.2 C"rrent #r"& !ar2et

2.2.1 Te terape"tic &ro"ps

The most important therapeuti! &roup in the "an&la#eshi market is

Systemi! Anti*ioti!s. They a!!ount for almost >0 of the market. The se!on#

therapeuti! &roup is AntiFa!i#s, are mu!h less rele%ant in terms of market, as -ell

as from a pu*li! health perspe!ti%e. Citamins, Anal&esi!s, Mineral supplements,

(ou&h an# (ol# preparations an# mus!le rela/ants also fi&ure prominently. +t is

to *e note#, that typi!al #e%elope# market therapeuti! &roups like those

a##ressin& #ia*etes, !ar#io%as!ular #iseases, aller&ies or psy!holo&i!al

#isor#ers also are amon& the most important in "an&la#esh, -hereas 3+CEA+DS

an# AntiFmalarial #ru&s are not.

2.2.2 API !an"$act"rin&

Page 01of 1)


18/41

+n most !ases, AP+s ha%e to *e importe# from a*roa#, -hi!h, to&ether -ith

the ne!essity to import ma!hines, is one of the main #isa#%anta&es in terms of

!ost -hen !ompare# to +n#ia. The lea#in& manufa!turers are therefore &oin& into

AP+ manufa!turin&, fo!usin& mainly on Anti*ioti!s, *ut also other #ru&s, su!h as

antiF!an!er #ru&s.3o-e%er, Anti*ioti!s are parti!ularly #eman#in& in terms of manufa!turin&

!on#itions, as MP pro!e#ures reuire spe!ial !are to a%oi# !rossF

!ontamination. or e/ample, ea!h AP+ manufa!turin& line has to *e in a separate

*uil#in&. or many AP+s, the #omesti! market is too small to justify an AP+

manufa!turin& plant. This stresses the fa!t that -hereas se%eral "an&la#eshi

manufa!turers ha%e the kno-Fho- to manufa!ture AP+s, the initial in%estment

an# the pro#u!tion s!ale reuire# are hi&h. This means that in or#er to esta*lish

AP+ manufa!turin& e.&. for Antiretro%iral AP+s in "an&la#esh, the manufa!turers

-oul# nee# to *e sure of their a!!ess to se%eral e/port markets. This *arrier isunlikely to *e taken -ithout e/ternal support.

2.> Key PlayersDue to the *ran#e# &eneri! nature of pro#u!ts, !ompanies are usually a*le

to !har&e a premium pri!e, -hile enjoy sta*le position. As a result, the top

performin& !ompanies in the in#ustry are relati%ely !onsistent o%er the years,

often alon& -ith their respe!ti%e market position. The market lea#er is Suare

pharma!euti!als, -hi!h ha%e enjoye# the top position sin!e 1=5@. At present, it

has a 1=.1= market share. The ne/t player is +n!epta, follo-e# *y "e/im!o,

A!me, 7psonin, an# others. The top 10 firms are almost the same o%er the

years, often -ith little !han&e in or#er.

2.? Intra in#"stry %"siness PracticesPharma!euti!al is an emer&en!y pro#u!t, an# its #eman# is not akin to

other pro#u!ts. Lot only !onsumers sho- inelasti! #eman#, *ut also the #eman#

is more #ri%en *y #o!tors pres!ription an# pro#u!t a%aila*ility !ompare# to en#

!ustomers #eman#. urthermore, *ran# loyalty is uite !ommon. Thus, su!!ess

in this market reuires !ompetitor firms to stri%e for hi&her share in pres!riptions

as -ell as hi&her pro#u!t a%aila*ility in pharma!ies.

or this, firms en&a&e in se%eral pro#u!t promotion strate&y, in!lu#in&

a&&ressi%e pri!in&, !re#it poli!y an# esta*lishin& relationships -ith #o!tors,

hospitals an# pharma!ies.

Page 0


19/41

The !ommon *usiness strate&y is to employ me#i!al representati%es to

esta*lish these relationships. Su!!ess is usually measure# in terms of

pres!ription share 8often terme# as )/ share9, -hi!h #emonstrates ho- mu!h of

pharma!euti!als pro#u!t #eman# &oes to a !ertain pro#u!er an# is an in#i!atorof future market share.

An# for in!rease# pro#u!t a%aila*ility, firms often en&a&e in a&&ressi%e

marketin&, parti!ularly for pro#u!ts in the lo- en#. The strate&y is refle!te# in

pro%i#in& pro#u!ts at a lo-er pri!e than !ompetitors, an# pro%i#in& a more

rela/e# !re#it poli!y. The in#ustry on an a%era&e has a !olle!tion perio# of

appro/imately >0 #ays.

Alon&si#e, "an&la#esh pharma!euti!al in#ustry is more retail oriente# an#thus, mass #istri*ution is #one *y the !ompanies themsel%es throu&h their o-n

-arehouses to retailers an# -holesalers. holesalers usually ha%e a limite# role

in marketin& of su!h pro#u!ts.

2.@ CSR+t -oul# *e moti%atin& to #eri%e a meanin& of the !on!ept -ith the

#isse!tion of ea!h of the -or#s. (S) is not a #iffi!ult !on!ept an# !an *e

e/plaine# asN (orporate F means or&anie# *usiness.

So!ial F means e%erythin& #ealin& -ith people, the so!iety at lar&e.

)esponsi*ility F means a!!ounta*ility *et-een the t-o.

Some people #efine (S) as meanin& open an# transparent *usiness

pra!ti!es that are *ase# on ethi!al %alues an# respe!t for employees,

!ommunities an# the en%ironment. +t is #esi&ne# to #eli%er sustaina*le %alue to

the so!iety at lar&e as -ell as to the sharehol#ers. Lo-, there is no sin&le,

!ommonly a!!epte# #efinition of (S), e%en a!ross &lo*al !orporate *o#ies. +trefers to *usiness #e!ision makin& linke# to ethi!al %alues, !omplian!e -ith le&al

reuirements, an# respe!t for people, !ommunities an# their en%ironments. (S)

is seen as more than a !olle!tion of #is!rete pra!ti!es an# o!!asional &estures or

initiati%es moti%ate# *y marketin&, pu*li! relations or other *usiness *enefits.

)ather, it is %ie-e# as a !omprehensi%e set of poli!ies, pra!ti!es an# pro&rams

Page 0)of 1)


20/41

that are inte&rate# throu&hout *usiness operations an# #e!isionFmakin&

pro!esses.

(orporate So!ial )esponsi*ility 8(S)9 is a reality of re!ent #e!a#es. (S)

is the !ontinuin& !ommitment of *usiness to *eha%e ethi!ally an# !ontri*ute toe!onomi! #e%elopment -hile impro%in& the uality of life of the -orkfor!e an#

their family as -ell as of the lo!al !ommunity an# so!iety at lar&e. "usiness o-es

its responsi*ilities to-ar#s so!ietyK first as a result of the impa!t of its o-n

operations an# se!on#ly, as the unit of the so!iety in -hi!h it operates. The

former is relate# to -hat the or&aniation #oes to the so!iety *y -ay of its

spe!ifi! operations, -hereas the latter #eals -ith -hat the so!iety #eman#s from

it.

A!!or#in&ly, (S) nee#s to *eN(i) More in-ar#s than out-ar#s

(ii) More relate# to the !hara!ter an# !ulture of the !orporate rather than its

sie or profita*ility

(iii) More relate# to makin& an# #istri*utin& profits an# sustaina*ility

(iv) More *usiness pro!ess oriente# than philanthropi!

(v) o!use# on #ay to #ay a!ti%ities *y e%ery employee of the or&aniation

rather than limite# to the typi!al presen!e of key in#i%i#uals in the

!ompany alon& -ith the %arious so!ial partners of the !orporate. (S)

appears in many forms some are #ire!tly relate# to employees an# theirfamilies -hereas some others point to-ar#s outsi#e -orkpla!e -ithout

any !onne!tion to its employees. +t takes %arious forms su!h asN

(orporate Philanthropy

(orporate Support Sponsorships

(orporate Partnerships

)espon#in& in


21/41

The orl# "usiness (oun!il for Sustaina*le De%elopment in its pu*li!ation

Makin& oo# "usiness Sense *y ;or# 3olme an# )i!har# atts, use# the

follo-in& #efinition for (S). G(orporate So!ial )esponsi*ility is the !ontinuin&

!ommitment *y *usiness to *eha%e ethi!ally an# !ontri*ute to e!onomi!

#e%elopment -hile impro%in& the uality of life of the -orkfor!e an# their familiesas -ell as of the lo!al !ommunity an# so!iety. or instan!e, (S) is a %oluntary

#e!ision taken *y !orporations, it is inte&rate# into the strate&i! mo#el of

*usiness in the form a self re&ulatin& me!hanism that lets them monitor an#

ensure their a#heren!e to ethi!al stan#ar#s, la- an# international norms.

un#amentally, (S) is &o%erne# *y the Triple "ottom ;ine 8T";9 i.e.

People, Planet, an# Profit. "y in!orporatin& (S) poli!ies, *usinesses em*ra!e

their responsi*ility to-ar#s the en%ironment, !onsumers, employees,

stakehol#ers, suppliers, !ommunities an# the other mem*ers of the !ommunity,an# !ontri*ute to their so!ial o*li&ations *y promotin& an# en!oura&in&

!ommunity #e%elopment an# eliminatin& the pra!ti!es that harm it.

3o-e%er, the s!ope of (S) in !orporate *oar# rooms to *e mana&ement

ranks ha%e per%a#e# an# !ontinue to &ain momentum 83ill, 2006 !ite# "elal

20059. +t is also re!o&nie# as (orporate )esponsi*ility, (orporate (itienship,

)esponsi*le "usiness, or So!ial A!tion Pro&ram, Sustaina*le )esponsi*le

"usiness 8S)"9, (orporate So!ial Performan!e or (orporate Sustaina*ility an#

)esponsi*ility. +t is &ratifyin& more an# more %ital initiati%e of *usinesses *othnationally an# internationally. Proponents ar&ue that !orporations make more

lon& term profits *y operatin& -ith a perspe!ti%e.

Thou&h %arious #efinitions ha%e *een atta!he# to the term, it !an *e state#

that (S), in its *roa#est sense, #elineates the relationship *et-een *usiness

an# so!iety an# the role of *usiness in sustaina*le #e%elopment. The

fun#amental i#ea *ehin# (S) is that a !orporation or !ompany in!urs

responsi*ilities to so!iety *eyon# ma/imiation of profit an# *eyon# meetin& the

minimal reuirement of the la-. (S) also has numerous fa!ets. (orporations areo%er-helme# *y many issues in the name of (S)N stakehol#er #eman#s,

en%ironmental issues, issues of sustaina*ility, #i%ersity, la*or !on#itions, ethi!al

in%estment, an# philanthropy amon& others. (learly, there is no one a&ree#

!on!ept. An important #istin!tion shoul# *e ma#e, ho-e%er, *et-een internal an#

e/ternal (S) pra!ti!es.

Page 0?of 1)


22/41

+nternal (S) refers to pro&rams that fo!us on the !ore *usiness an# on

the -orkfor!e, su!h asN

3uman )esour!es 83)9 pra!ti!es 3ealth, Safety an#


23/41

7n the other han#, (S) #iffers from prEMarketin&, sin!e it fo!uses on

those areas -here there is an o%erlappin& of so!ial an# e!onomi! *enefits, -hile

marketin& #oes not fo!us on any spe!ifi! so!ial *enefits, *ut only on those

a!ti%ities that !an pro%i#e a monetary return for the !ompany.

2.6 Re&"latory Fra!e:or2

3o-e%er, re&ulation of (S) is %ery limite# in "an&la#esh an# e%en morelimite# in the pharma!euti!als in#ustry *e!ause of the la!k of s!ientifi! an#professional spe!ialist. Any-ay, The Dire!torate eneral of Dru& A#ministration8DDA9 un#er the Ministry of 3ealth I amily elfare is the #ru& re&ulatoryauthority of the !ountry.

2.6.1 )e&ional A!ti%ities

DDA super%ises an# implements all pre%ailin& #ru& re&ulations in the!ountry an# re&ulates all a!ti%ities relate# to import, pro!urement of ra- an#pa!kin& materials, pro#u!tion an# import of finishe# #ru&s, e/port, sale, an#pri!in& of all kin#s of me#i!ine. DDA has > offi!es in >6 #istri!ts, in!lu#in&the hea# offi!e lo!ate# in Dhaka. There are t-o #ru& testin& la*oratoriesun#er DDAOone in Dhaka an# the other in (hitta&on&.

2.6.2 Buality (ontrollin&

Despite e/tensi%e rules, the pharma!euti!al market remains un#erre&ulate# #ue to la!k of !apa!ity of the re&ulatory authority. The primaryresponsi*ility for #ru& uality !ontrol lies -ith the manufa!turers, an# the topfirms ha%e their o-n uality !ontrol me!hanisms. 3o-e%er, DDA has toensure the uality, effi!a!y, an# safety of pharma!euti!al pro#u!ts thou&h theimplementation of rele%ant le&islation, %ia its monitorin& an# super%isionfun!tions. Thou&h the DDA -as up&ra#e# from '#epartment to '#ire!torate&eneral status after the a#option of the re%ise# LDP 200@, it !ontinues tosuffer from fun#in&, staffin&, an# te!hni!al !ompeten!e !onstraints.

2.6.>)e&ulatory Manpo-er

The DDA is se%erely un#erstaffe#, &i%en the rapi#ly &ro-in&

pharma!euti!al market, lar&e num*er of re&istere# pro#u!ts, an# lar&e

Page 0of 1)


24/41

population sie 8$SA+D an# S+APS 201>9, an# stan#ar#s enfor!ementsuffers. +n 2012, there -ere >0 personnel %a!an!ies at #ifferent le%els an#only 1?6 people -orkin& in the DDA, @2 of -hi!h -ere at offi!er le%el8DDA 20129. The orl# 3ealth 7r&aniation 8379 promotes !urrent &oo#manufa!turin& pra!ti!e 8!MP9 re&ulations for hi&hFuality pro#u!tion of

me#i!ines in #e%elopin& !ountries an# the LDP 200@ seeks to enfor!e it. Theresponsi*ility of assessin& !MP !omplian!e lies -ith DDA. ith limite#human resour!es, an# staff not suffi!iently traine# in re!ent #e%elopments inuality !ontrol, !omplian!e is #iffi!ult to test an# enfor!e. ;o!al inspe!torsha%e *een foun# to *e less strin&ent !ompare# to international inspe!tors,an# DDA has issue# some uestiona*le !MP !ertifi!ations. To o%er!omethis issue, some pharma!euti!als firms are a#herin& to #ifferentmanufa!turin& uality stan#ar#s like the Therapeuti! oo#s A#ministration of

Australia, the $nite# inoms Me#i!ines an# 3ealth!are Pro#u!ts)e&ulatory A&en!yK others firms are operatin& *elo- !MP stan#ar#s. This is

pre%entin& the use of a harmonie# &lo*al stan#ar# in #ru& re&ulation.

2.6.> S!ientifi! Testin&

The #ru&Ftestin& la*oratories ha%e insuffi!ient !apa!ity. Testin& of #ru&s isreuire# for e%aluatin& prere&istration an# post markete# #ru&s an#me#i!ines uality. The t-o la*oratories un#er DDA ha%e e/tremely limite#!apa!ity -ith ina#euate staffin& an# euipment. A!!or#in& to the $L(TAD820119 stu#y, there are three te!hni!al staff mem*ers in the (hitta&on&;a*oratory an# ei&ht in the Dhaka ;a*oratory. There is neither a !entral

referen!e la*oratory nor any in#epen#ent !ontra!t resear!h or&aniations inthe !ountry. (ompanies that e/port to international markets ha%e theirpro#u!ts teste# an# !ertifie# in esta*lishe# la*oratories in other !ountries.

2.6.? +nfrastru!tural Support

+nfrastru!ture support for the re&ulatory *o#y is insuffi!ient. or e/ample,the DDA #oes not ha%e its o-n offi!e *uil#in& in Dhaka. Distri!t offi!es arerente# an# lo&isti!al support for #istri!tFle%el staff is ina#euate. Proper offi!efa!ilities like +nternet !onne!tions an# !omputers are also la!kin& 8DDA20129. There is no ele!troni! system to maintain an up#ate# re&ister. TheDDA #oes not ha%e a spe!ialie# la-yer to han#le the le&al aspe!ts of%iolations of stan#ar#s an# re&ulations. Su!h #ra-*a!ks ha%e le# to anineffe!ti%e super%isory system, in -hi!h su*stan#ar# or la!k of me#i!ines an#!ommo#ities ha%e *e!ome a part of the health system.


25/41

Page 7*of 2.6.@A#ministration of the )e&ulatory System

The DDAs effe!ti%eness is further !onstraine# *y !omple/ities of multiplea#ministrati%e *o#ies an# !ommittees in%ol%e# in the rele%ant re&ulatorypro!esses. The re!ommen#ation for re&istration of #ru&s *y the DDA !omes

from the Dru& (ontrol (ommittee. The Lational Dru& A#%isory (oun!ila#%ises on implementation of the LDP an# the promotion of lo!alpharma!euti!al in#ustries. There is also a Pri!in& (ommittee 8-hi!h appro%espri!in& #e!isions on me#i!aments9 an# a Stan#in& (ommittee forPro!urement an# +mport of )a- Materials an# inishe# Dru&s 8T 2009.

A##in& to this stru!ture, the Lational )esear!h


26/41

Page 70of 1)3. Company Profle

>.1 A#/ance# Ce!ical In#"stries BACI6 9i!ite#

+n 1=>, the $ *ase# multinational pharma!euti!al !ompany, +(+ pl!,esta*lishe# a su*si#iary in Dhaka, kno-n as +(+ "an&la#esh Manufa!turers

;imite#. +n 1==2, +(+ pl! #i%este# its share to lo!al mana&ement, an# the

!ompany -as rename# A#%an!e# (hemi!al +n#ustries 8A(+9 ;imite#.

A(+ formulates an# markets a !omprehensi%e ran&e of more than >5

pro#u!ts !o%erin& all major therapeuti! areas, -hi!h !ome in ta*let, !apsule,

po-#er, liui#, !ream, ointment, &el ,ophthalmi! an# inje!tion forms. A(+ also

markets -orl#Freno-ne# *ran#e# pharma!euti!al pro#u!ts like Arimi#e/,

(aso#e/, ola#e/, Atara/ et!. from -orl#F!lass multinational !ompanies like

AST)A


27/41

a!hie%e# throu&h pursuit of uality *y un#erstan#in&, a!!eptin&, meetin& an#

e/!ee#in& !ustomer e/pe!tations.

>.2 S"arePar!ace"ticals9i!ite# %an&la#es

SB$A)< to#ay sym*olies a name R a state of min#. "ut its journey to the

&ro-th an# prosperity has *een no *e# of roses. rom the in!eption in 1=@5, it

has to#ay *ur&eone# into one of the top line !on&lomerates in "an&la#esh.

Suare Pharma!euti!als ;t#., the fla&ship !ompany, is hol#in& the stron&

lea#ership position in the pharma!euti!al in#ustry of "an&la#esh sin!e 1=5@ an#

is no- on its -ay to *e!omin& a hi&h performan!e &lo*al player.

SB$A)< Pharma!euti!als ;imite# has e/ten#e# its ran&e of ser%i!es

to-ar#s the hi&h-ay of &lo*al market. +t pioneere# e/ports of me#i!ines from

"an&la#esh in 1=5 an# has *een e/portin& anti*ioti!s an# other pharma!euti!al

Page 71of 1)


28/41

pro#u!ts. This e/tension in *usiness an# ser%i!es has manifeste# the !re#i*ility

of Suare Pharma!euti!als ;imite#.

>.> %e;i!co Par !ace"ticals 9i!ite#

"e/im!o Pharma!e uti!als ;t#. 8'"P; or the '(ompany 9, the lea#in&

"an&la#eshi pharma!euti! al manufa!turer an# e/porter, is please # to announ!e

that it has re!ei%e# app ro%al 8MP (learan!e9 from Therapeuti! oo#s

A#ministration 8TA9, Australia for its ne- 7ral Soli# Dosa&e 8Ta *let, (apsule9,

an# the Metere# Dose +nha ler an# Spray manufa!turin& fa!ilities. "P; is the first

"an&la#eshi !ompany to r e!ei%e this re&ulatory appro%al from T A, Australia

throu&h a strin&ent fa!ility a u#it pro!ess.

ith an o%erall pharma!euti!al market of aroun# $S 10 *illion #ollars, Australiais one of the ri!hest pharm a!euti!al markets in the AsiaFPa!ifi! re&ion an# the

1>th lar&est in the -orl#. +ts per !apita spen#in& on me#i!ines is eui%alent to

top rankin&


29/41

ran!e, ermany, +relan#, +taly, Letherlan#s, Lor-ay, Spain, S-e#en,

S-iterlan# an# the $.

"e/im!o Pharma (


30/41

#isease !ause# *y 3, influena, !hi!kenpo/, #iphtheria, pertussis, tetanus an#

others.

+n "an&la#esh, SGs !onsumer *ran#s are the major players in the health

foo# #rink !ate&ory. The po-erful portfolio in!lu#es 3orli!ks, "oost, Malto%a an#

Ci%a -hi!h o-ns an en%ia*le market share of 5@. Amon& them, 3orli!ks, atruste# I herita&e *ran#, enjoys 6 market share. 3orli!ks -hi!h has *een reF

laun!he# in 2005, follo-in& intense market resear!h an# pro#u!t #e%elopment

a!ti%ities, -ith an impro%e# formulation is !lini!ally teste# to make !hil#ren

'Taller, Sharper I Stron&erH.

>.@ Renata 9i!ite#

The !ompany starte# its operations as a su*si#iary of Pfier ;imite# in

1=2. or the ne/t t-o #e!a#es it !ontinue# as a hi&hly su!!essful su*si#iary of

Pfier (orporation. 3o-e%er, *y the late 1==0s the fo!us of Pfier ha# shifte#

from formulations to resear!h. +n a!!or#an!e -ith this transformation, Pfier

#i%este# its interests in many !ountries, in!lu#in& "an&la#esh. +n 1==> Pfier

transferre# the o-nership of its "an&la#esh operations to lo!al sharehol#ers, an#

the name of the !ompany -as !han&e# to )enata ;imite#.

Page 7,of 1)


31/41

)enata ;imite# is a Pu*li! ;imite# (ompany that manufa!tures an#

markets human pharma!euti!als as -ell as animal therapeuti!s. +t is liste# in top

ten pharma!euti!al !ompanies in "an&la#esh. )enata ;imite# has +nternational

Presen!e inN $, 3on& on&, Philippines, Sri ;anka, Cietnam, "elie, Myanmar,

Lepal, (am*o#ia, enya, Jor#an, uyana, Thailan#, Af&hanistan an# Malaysia.At present, )enata manufa!tures a*out >00 &eneri! pharma!euti!al pro#u!ts

in!lu#in& hormones, !ontra!epti%es, antiF!an!er #ru&s, oral preparations,

!ephalosporins, parenteral preparations as -ell as other !on%entional #ru&s. +n

a##ition, they also offer a*out =@ animal therapeuti!s an# nutrition pro#u!ts.

The (ompany has ei&ht manufa!turin& fa!ilities sprea# o%er threemanufa!turin& sites. +n a##ition )enata 7n!olo&y ;imite# has t-o manufa!turin&

fa!ilities. Distri*ution of pro#u!ts is !arrie# out *y 1= #epots a!ross the !ountry.

-. CSR INDEX CONSTRUCTION AND ANALYSIS

?.1 CSR In#e;

Page 7?of 1)


32/41

Year 7*01


33/41

No5 Ite!s to Constr"ct CSR In#e;%e;i!c

oS"are >SK ACI

Sareol#er Relation'

1Increase shareholder value (economicreturn) 1 1 1 1

2Corporate response on environmentalissues 0 1 1 1

3Relationship with local authorities andregulator 1 1 1 1

4 Good governance practices 1 1 1 1

Communication with !oard of "irectors(#G$) 1 1 1 1

Cons"!er Relation'

% &verall customer satisfaction 1 1 1 1

' Provide product information safet 1 1 1 1

* Customer commitment protection 1 1 1 0+ Provide follow,up service 0 1 1 0

E!ployee Relation '

1- Provide e.ual opportunit 1 1 1 1

11 Provide wor/ insurance 1 0 1 1

12 Provide 0o evaluation 1 1 1 1

13 Provide career plan sstem 1 1 1 1

14 Provide training and development 1 0 1 1

1 Provide fair remuneration sstem 0 1 1 1

1% Provide retirement plan 1 1 1 1

1' Relationship with union 1 0 0 0

1* Provide communication with emploees 1 1 1 1

1+Provide compensation and rewardsstem 1 0 1 1

Co!!"nity Relation'

Provide support for social life of local

2- communit 1 1 1 1

21Involve in improving environmentalcondition 1 1 1 1

22 orts against environmental damage 0 1 1 1

23 Provide 0o opportunit for communit 1 1 1 0

24 Philanthropic activities 1 1 1 19o:(cost Strate&y'

2 Provide low production cost 0 0 0 1

Provide lower price of product andorservice

2% than competitors 0 0 0 0

2' Invest in cost saving technolog 0 0 0 1

Dierentiation Strate&y'

Provide new service andor product


34/41

2* development 1 1 1 1

2+&er product andor service for specialneed 1 1 1 1

&er more .ualit product andorservice than

3- competitors 1 1 1 0

Page 7@of 1)

&er highl dierentiated productandor

31 service 1 1 1 0

Val"e >ain Per$or!ance '

32 Productivit increase (Inventor) 1 1 0 1

33 $ar/et share growth 0 1 1 1

34 5ale volume increase 1 1 1 1

-onetary >ain Per$or!ance '3 Pro6t margin growth 1 1 1 1

3% Return on e.uit (R&) growth 1 0 1 1

3' Return on asset (R) growth 1 1 1 0

Total Score'*73'*3

*'*73'*3

**%74*%4

+'*73'*3

*

?.2 Analysis o$ CSR In#e; Tablerom the a*o%e ta*le -e fin# out the Total (S) in#e/ of

fi%e !ompanies. The !ompanies are "e/im!o Pharma!euti!als

;t#., Suare Pharma!euti!als ;t#. la/oSmithline "an&la#esh

;imite#, A(+ Pharma!euti!als ;t#. an# )enata ;imite#.

"e/im!o Pharma!euti!als ;t#. Total (S) +n#e/ s!ore is 5.>5>5

Suare Pharma!euti!als ;t#. total (S) +n#e/ s!ore is5.>5>5

la/oSmithline "an&la#esh ;imite# total (S) +n#e/ s!ore is56.?56?=

A(+ Pharma!euti!als ;t#. total (S) +n#e/ s!ore is5.>5>5

)eneta;imite# total (S) +n#e/ s!ore is0.202

A%era&e s!ore of the fi%e !ompanies is 5.>5>5 in#i!atin& +n#ustryA%era&e.


35/41

Page 7of 1)


36/41

Percenta&e1--

+-*-'-%-

-4-3-2-1- Percenta

ge0

Fi&'raphi!al representation of fi%e !ompanies (S) +n#e/ total s!ore an#

a%era&e s!ore in per!enta&e.

The (S) in#e/ ta*le is *asi!ally represente# in ei&ht #ifferen t parts, -hi!h

areN

1. Sharehol#er )elation

2. (onsumer )elation

3. on en%ironmental

!hallen&es -hi!h is a %er y important issue in to#ays -orl#. T hou&h )enata

;imite# #i# respon# to o ther issues su!h as -omen empo- erment, !hil#

e#u!ation an# also &ot itself asso!iate# -ith other Lon o%ernmental

7r&aniations.

Page 1*of 1)


37/41

?.2.2 Cons"!er Relation

"e/im!o Pharma!euti!als ;t#, laksoSmith line "an&la#esh ;imite# an#

Suare Pharma!euti!als maintains a &oo# relation -ith the !ustomers. (ustomersatisfa!tion is the key thin& in any *usiness. +n pharma!euti!als in#ustry it is far

more important than any other in#ustries in the -orl#. (ustomers are satisfie#

-ith these three !ompanies. They pro%i#e a#euate pro#u!t information I safety.

They are !ommitte# for the prote!tion of the !ustomers an# also pro%i#e follo-

up ser%i!es. "ut )enata ;imite# an# A(+ Pharma!euti!al ;t# are not !ommitte#

in !ustomer prote!tion an# they #o not ha%e a tra!k re!or# of pro%i#in& follo- up

ser%i!es.

?.2.> E!ployee Relation

7ne thin& is !ommon amon& the fi%e !ompanies the that they #ont ha%e

&o%ernment re&istere# la*or union in their !ompanies to represent them to the

o-ners. A!!or#in& to the la*or la- of "an&la#esh o%ernment -hi!h prote!ts

the ri&ht of the la*or there must *e union of employees in the !ompany so that

they !an represent their reuirements to the o-ner of the !ompany. "ut

unfortunately none of the !ompanies ha%e union for the la*or. )enata ;imite#

also #o not ha%e pro&ram for trainin& an# #e%elopment. Suare Pharma!euti!als

#oes not pro%i#e -ork insuran!e for its employees.

?.2.? Co!!"nity Relation

(ommunity relation is one of the effe!ti%e tool for &oo# *usiness pra!ti!es.

Amon& the fi%e !ompanies only )enata ;imite# an# A(+ Pharma!euti!als ;t# #i#

not pro%i#e jo* opportunities for the !ommunity on the year 201>. )enata ;imite#

re!or# in !ase of !ommunity relationship is poorer than A(+ Pharma!euti!al

;imite#. )enata Pharma!euti!als ;imite# #i# not #o anythin& re&ar#in& fa!in&

en%ironment #ama&es an# it #i# not any a!ti%ities to impro%e the en%ironmental

!on#ition of the area -here it has its fa!tory situate#.

Page 10of 1)


38/41

?.2.@ 9o: Cost Strate&y

Lone of the !ompanies follo-s the lo- !ost strate&y in their *usiness

e/!ept thou&h A(+ also #oes not pro%i#e pro#u!t in a lo- pri!e. +t is %ery

important for *i& pharma!euti!al !ompanies in "an&la#esh to pro%i#e me#i!ines

in lo- !ost for the -elfare of the people an# also to fulfill the o*li&ation of

!orporate so!ial responsi*ility.

?.2.6 Dierentiation Strate&y

Differentiation strate&y is fully follo-e# *y la/oSmithline "an&la#esh

;imite# an# Suare Pharma!euti!als ;imite# thou&h it is not fully follo-e# *y A(+

Pharma!euti!al ;t# an# )enata ;imite#. )enata ;imite# pro%i#e *etter uality

pro#u!t then the !ompetitors in !ase of Animal 3ealth thou&h it fails to pro%i#e

7ffer hi&hly #ifferentiate# pro#u!t an# ser%i!e an# A(+ Pharma!euti!al neither

#oes pro%i#e *etter uality pro#u!t then the !ompetitors nor #oes it offer hi&hly

#ifferentiate# pro#u!t an# ser%i!es.

?.2. Val"e >ain Per$or!ance

@ !ompanies pro%i#e &oo# %alue &ain performan!e. Pro#u!ti%ity, sales%olume an# market share &ro-th in the year 201> has *een &oo#.

?.2.5 -onetary >ain Per$or!ance

+n !ase of A(+ Pharma!euti!als return on asset an# in !ase of suare

return on euity -as not possi*le in the year 201>. 7ther !ompanies #i# &oo#

monetary &ain performan!e.

Page 17of 1)


39/41

5. !n"!n#$ an" Pol!%y Impl!%a&!on$

rom the !orporate so!ial responsi*ility point of %ie- the fin#in&s of the

(S) +n#e/ analysis su&&ests that only one !ompany is *elo- the a%era&e of the

fi%e !ompanies that is )enata ;imite#. Total (S) +n#e/ s!ore of )enata ;imite#is 0.202. 7ther four !ompanies "e/im!o Pharma!euti!al ;t#, Suare

Pharma!euti!al ;t#, A(+ Pharma!euti!al ;t# an# la/oSmithline "an&la#esh

;imite# s!ores 5.>5>5, 5.>5>5, 56.?56?=, 5.>5>5 respe!ti%ely -hi!h are

in the (S) +n#e/ ta*le are eual or hi&her to the a%era&e s!ores. A%era&e s!ore

is 5.>5>5. rom the (orporate So!ial )esponsi*ility point of %ie- )enata

;imite#s performan!e is the -orst amon& the fi%e !ompanies -e !onsi#ere#

here. +f -e look from the *usiness point of %ie- an# -e see that )enata ;imite#

makes the lo-est profit amon& the fi%e !ompanies. So -e !an !on!lu#e in this

!ase that *usiness an# !orporate so!ial responsi*ility is !omplementary. To makeprofit in pharma!euti!al in#ustry the *usiness or&aniations in this fiel# nee# to

fulfill its !orporate so!ial responsi*ility an# the more it #oes the more people -ill

*e intereste# in *uyin& its pro#u!ts.

e foun# that poli!ies implie# in 201> amon& the fi%e !ompanies ha%e

!ommonalities re&ar#in& sharehol#er relation an# employee relation. rom the

sharehol#er relation point of %ie- the !ompany plays a %ery !ommittin& role in

the *etterment of the relationship -ith its sharehol#ers. i%e (ompanies fo!us onin!reasin& the sharehol#ers -ealth an# that !an only *e ensure# *y makin&

profit. So the !ompanys main &oal is to fo!us on makin& the *usiness profita*le.

7n the other han# -e see that another !ommon issue amon& the !ompanies is

employee relation. i%e !ompanies #o not ha%e an union for the employees. This

sho-s that the !ompanies are relu!tant in the -elfare of its employees *ut is

ea&erly intereste# in the -elfare of its sharehol#ers. "ut the !ompanies #o ha%e

an option to mo%e on a #ire!tion -here it !an make profit for the sharehol#ers

an# at the same time !an ensure employees -elfare. "e!ause employees are

the people -ho runs a !ompany. So if the employees are happy an# -ell treate#then the *usiness -ill *e more effi!ient an# -ill make more profitan# also in our

!ountry la*or la- &i%es the ri&ht to the employees of an or&aniation to ha%e an

Page 11of 1)


40/41

union to represent their reuirements. So the *etterment in !ase of employee

relation is somethin& these fi%e !ompanies shoul# fo!us on.

+t is important to realie that (S), if mana&e# in a &oo# -ay, !an #efinitely

lea# to the -elfare of the firm an# so!ial -elfare at the same time. Althou&h

!orporate so!ial responsi*ility has *e!ome %ery popular these #ays, there still is

a nee# for !ommon approa!h to implement it into *usiness strate&y. There has to

*e more than one isolate# part on (S) in the annual report an# it shoul# *e

inte&rate# as a &ol#en threa# throu&hout the *usiness strate&y.

. Con%l'$!on

The !on!lusion of this stu#y is that (orporate So!ial )esponsi*ility 8(S)9

is the !ontinuin& !ommitment *y *usiness to *eha%e ethi!ally an# !ontri*ute to

e!onomi! #e%elopment -hile impro%in& the uality of life of the -orkfor!e an#

their families as -ell as of the lo!al !ommunity an# so!iety at lar&e. 7n the "asis

of the stu#y, it sho-s that the lo!al pharma!euti!als !ompanies !on#u!t

transparent *usiness operations *ase# on market me!hanism -ithin the le&al,

ethi!al I so!ial frame-ork -ith aims to attain the mission refle!te# *y their

%ision. +n this !hapter -e #is!usse# #ifferent %ie- on (S) !onsi#ere# the

interests of their e/ternal I internal stakehol#ers like !ustomers, employees,

%en#ors, sharehol#ers, so!iety, &o%ernment et!. an# e!olo&i!al I ethi!al

!onsi#erations in all aspe!ts of operations.Despite *ein& one of the orl#s

poorest !ountries, (S) a!tions in "an&la#esh ha%e risen si&nifi!antly in

importan!e. As !ountries like "an&la#esh are in!reasin&ly e/pose# to &lo*alstan#ar#s, it is anti!ipate# that the &ro-th of (S) -ill !ontinue thou&h the pro!ess is

slo- I only in its infan!y. rom a #ifferent %ie- of stan#point, (S) is also *e!omin&

attra!ti%e to "an&la#eshi Pharma!euti!als !ompanies for strate&i! reasons.

Pharma!euti!als in#ustry uses their (S) re!or#s to !reate the ima&e of so!ially

responsi*le firms an# there*y influen!e !onsumer *uyin& #e!isions in fa%or of

the &oo#s an# ser%i!es markete# *y them.The primary an# most important

*enefit from implementin& (S) me!hanism is likely to *e felt at the national le%el

-ith an impro%e# &lo*al per!eption of pharma!euti!als *usiness pro!e#ures

in!lu#in& impro%e# ethi!al *usiness pra!ti!es -hi!h !oul# lea# to a pro!ess of

re%italiation of the "an&la#eshi e!onomy.

Page 1


41/41

Reerences'

1. Annual Report 2013. AI !harma"euti"als #imite$

2. Annual Report 2013. %e&im"o !harma"euti"als #imite$.

3. Annual Report 2013. 'la&oSmithKline %an(la$esh #imite$.

4. Annual Report 2013. S)uare !harma"euti"als #imite$.

5. Annual Report 2013. Renata !harma"euti"als #imite$.

6. ho*$hur+, !. M. -2010. An /erie* of the !harma"euti"al Se"tor in %an(la$esh.

%RA !# Sto" %roera(e #imite$.

7. Hai, M. A., Alam, M. 4. -2011. %usiness Anal+sis of !harma"euti"al 5irms in

%an(la$esh !rolems an$ !rospe"ts. 7ournal of %usiness an$ 8e"hnolo(+ -9haa, :ol.

06, ;o. 01.

8. !ora(, R. S. -201$."om, A""esse$ /n April 10, 201?

13. ***.e&im"o>pharma."om, A""esse$ /n April 10, 201?

14. ***.(s."om.$, A""esse$ /n April 10, 201?

15. s)uarepharma."om.$, A""esse$ /n April 11, 201?

16. renata>lt$."om, A""esse$ /n April 12, 201?
http://www.aci-bd.com/http://www.beximco-pharma.com/http://www.gsk.com.bd/http://squarepharma.com.bd/http://renata-ltd.com/http://www.aci-bd.com/http://www.beximco-pharma.com/http://www.gsk.com.bd/http://squarepharma.com.bd/http://renata-ltd.com/

MOB-Final for Print

Documents

Transcript of MOB-Final for Print