Pfizer Corporate Social Responsibility: Addressing Global Healthcare Challenges Case Study

How Pfizer Leads in CSR Through Innovation and Sustainability Goals

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Introduction: Pfizer Corporate Social Responsibility: Addressing Global Healthcare Challenges

Pfizer Inc. is a top international pharmaceutical company that creates, produces, and sells prescription medications and vaccines for a variety of therapeutic fields, like cancer, immunology, cardiology, and neurology. The company, which has its headquarters in New York, was established in 1849 by Charles Pfizer and Charles Erhart. Since then, it has expanded to evolve into one of the greatest pharmaceutical corporations in the world, operating in more than 180 nations (Pfizer, 2020).

Pfizer's revenue in 2021 was approximately $82 billion (Pfizer, 2020). The company employs more than 88,000 people globally (Farr, 2020). The company's operations are segmented into two main business units: Pfizer Biopharmaceuticals Group and Pfizer Upjohn. The Biopharmaceuticals Group includes Pfizer's research and development, manufacturing, and commercialisation of innovative medicines, while the Upjohn unit focusses on Pfizer's off-patent branded and generic established medicines.

Pfizer has a rich history of innovation and has brought many life-saving and life-changing drugs to market, including Lipitor, Viagra, and the COVID-19 vaccine. The company has a strong commitment to research and development, investing heavily in R&D, with $11.428 billion spent on R&D in 2021 alone (Macrotrends, 2022).

Pfizer is listed on the New York Stock Exchange (NYSE) and is part of the Dow Jones Industrial Average. The company is also a component of the S&P 500 index, making it one of the most widely held stocks in the world.

Pfizer's acquisition of Array BioPharma and Mylan has expanded the company's portfolio of innovative drugs and biosimilars. Additionally, Pfizer has made significant strides in sustainability, setting ambitious targets to reduce greenhouse gas emissions and waste.

To put it in a nutshell, Pfizer is a large, multinational pharmaceutical company with a rich history of innovation, a strong commitment to R&D, and a diverse portfolio of drugs and vaccines. As a publicly traded company, Pfizer is subject to various reporting requirements, including corporate social responsibility reporting, which is the focus of this analysis.

Main Body

Specific features of thorough CSR reporting

Pfizer is one of the world's leading pharmaceutical companies, recognised for its cutting-edge research and development, innovative products, and commitment to improving public health. As a private sector leader, Pfizer is committed to integrating sustainability into all aspects of its business operations, with a focus on creating long-term value for stakeholders, addressing global challenges, and enhancing its impact on society. This is reflected in Pfizer's comprehensive Corporate Social Responsibility (CSR) reporting, which includes a range of features aimed at providing stakeholders with a clear and transparent picture of its CSR efforts.

The CEO of Pfizer, Dr Albert Bourla, commences the CSR report with a statement outlining the company's goals and dedication to developing breakthroughs that improve patients' lives. He emphasises Pfizer's commitment to research and development initiatives as well as the company's confidence in the ability of scientific innovations to assist people to live a healthier and longer life. Dr Bourla takes note of the multitude of concerns the world is currently facing, such as COVID-19 and climate change, and reaffirms Pfizer's determination to address these problems through its six ESG priorities: product innovation, fair access to resources, safety and quality of products, inclusion, equality, and diversity, and business ethics (Pfizer ESG report, 2021).

Pfizer's mission statement is to establish, discover, and deliver innovative medicines and vaccines that improve health and save lives. The company's value statement is based on four core values, excellence, courage, joy, and equity, which guide its decision-making and actions (Pfizer ESG report, 2021). These statements reflect Pfizer's commitment to scientific innovation, patient-centricity, and ethical behaviour.

Pfizer's report on CSR contains essential statistics and facts regarding its most significant CSR efforts and their advancement. To promote global well-being and improve scientific advancement, Pfizer invested over $11.4 billion in internal research and development projects in 2022 (Pfizer, 2022). Additionally, the company supplied its vaccines and medication to more than 1.3 billion people worldwide in 2022, demonstrating its dedication to expanding the availability of healthcare (Pfizer, 2022). Pfizer also started the Accord for a Healthier World programme, which intends to give all of its advanced vaccines and medications to 1.2 billion individuals in 45 lower-income nations on a non-profit basis (Pfizer, 2022). Such initiatives demonstrate Pfizer's dedication to creating sustainable value for its stakeholders.

Figure 1: Pfizer's revenue from 2016 to 2022

The image shows a significant increase in Pfizer's revenue in 2021 and 2022 compared to the previous years.

The letter of assurance from the external auditor ensures the accuracy and completeness of the reported data. The auditor's statement provides stakeholders with confidence that Pfizer's CSR efforts are thoroughly examined and verified. The auditors' assurance letter emphasises the importance of Pfizer's commitment to ESG reporting and highlights the significant efforts the company has made to address its six priority areas. The statement also acknowledges Pfizer's continued dedication to advancing its CSR reporting and improving the metrics used to measure its progress (Pfizer ESG report, 2021). The auditors' assurance letter adds transparency and credibility to Pfizer's CSR reporting, enhancing stakeholder trust and confidence in the company's commitment to sustainability.

Pfizer also conducted interviews and surveys with stakeholders to gather feedback on their CSR efforts. Stakeholders expressed approval of the company's actions, praising its dedication to ensuring everyone has access tohealthcare and its approach to crises like COVID-19 (Pfizer ESG report, 2021). However, some stakeholders also expressed concerns about the pricing and accessibility of Pfizer's products in certain regions. Pfizer has acknowledged these concerns and stated its commitment to addressing them through continued engagement with stakeholders and ongoing improvement of its CSR initiatives.

Theoretical Frameworks of CSR

Shared Value Theory

Shared Value theory is a theoretical framework of CSR that posits that companies can create economic value while simultaneously addressing social and environmental issues (Menghwar and Daood, 2021). Pfizer's focus on developing medicines and vaccines to address global health challenges, such as COVID-19, demonstrates its commitment to creating shared value. The company also invests in research and development to create innovative treatments for unmet medical needs, aligning with this theory.

Stakeholder Theory

Figure 2: Stakeholder Theory

In the CSR theoretical framework, Stakeholder theory posits that companies have a responsibility not only to their shareholders but also to all their stakeholders, including customers, employees, suppliers, and communities (Brin and Nehme, 2019). Pfizer's commitment to ethical business practices and sustainability aligns with this theory, as evidenced by its focus on stakeholder engagement and transparency.

Triple Bottom Line Theory

Figure 3: Triple Bottom Line Model

Triple Bottom Line theory is a theoretical framework of CSR that refers to the three pillars of sustainability: economic, social, and environmental (Pan et al., 2021). Pfizer's efforts to address healthcare disparities, reduce its environmental footprint, and promote sustainable business practices align with this theory.

Stakeholders and different CSR issues related to them

Investors

Investors focus on Pfizer’s financial performance and stability, as well as its governance and risk management practices. They are interested in the company’s long-term sustainability and how it is addressing risks and opportunities related to the environment, social responsibility, and corporate governance (simplywallSt. 2023). The most important CSR issues for investors are transparency, responsible business practices, and ethical behaviour. Key data points that investors value are financial performance, executive compensation, risk management strategies, and governance structures.

Environment

Pfizer’s impact on the environment is an important CSR issue for stakeholders. The company has set ambitious targets to reduce its carbon footprint, minimise waste, and conserve resources (Pfizer, 2013). The most important environmental CSR issues for stakeholders include energy efficiency, greenhouse gas emissions, water conservation, waste management, and sustainable sourcing. Key data points that stakeholders value are the company’s progress towards its environmental targets, emissions data, water usage, waste generation, and sustainability certifications.

Employees

Pfizer’s employees are a critical stakeholder group, and the company recognises the importance of investing in their health, safety, and professional development. The most important CSR issues for employees are workplace diversity and inclusion, employee health and safety, training and development opportunities, and work-life balance. Key data points that employees value are employee engagement and satisfaction surveys, workforce diversity statistics, health and safety data, training and development programmes, and work-life balance policies.

Customers

Customers are concerned with the quality and safety of Pfizer’s products, as well as the company’s ethical business practices. The most important CSR issues for customers are product quality and safety, ethical sourcing, and responsible marketing and advertising. Key data points that customers value are product quality and safety data, supply chain audits, certifications for ethical sourcing, and marketing and advertising practices.

Suppliers

Pfizer’s suppliers are an important stakeholder group, and the company has a responsibility to ensure that its suppliers operate responsibly and sustainably. The most important CSR issues for suppliers are responsible sourcing, human rights, and ethical business practices. Key data points that suppliers value are supply chain audits, certifications for responsible sourcing, and human rights impact assessments.

Communities

Pfizer has a significant impact on the communities where it operates, and the company is committed to making a positive contribution to these communities. The most important CSR issues for communities are corporate philanthropy, community engagement, and social impact. Key data points that communities value are philanthropic giving, community engagement initiatives, and social impact assessments.

Government

Pfizer operates in a highly regulated industry and has a responsibility to comply with all relevant laws and regulations (Pfizer, 2022). The most important CSR issues for government stakeholders are regulatory compliance, ethical business practices, and public health. Key data points that government stakeholders value are regulatory compliance data, public health impact assessments, and information about the company’s lobbying and political contributions.

Each stakeholder group has unique CSR issues that they care about, and the most valuable data points for each group depend on their priorities. Pfizer recognises the importance of engaging with its stakeholders and providing transparent and meaningful CSR reporting. By addressing the needs and expectations of its stakeholders, Pfizer can build trust and long-term partnerships that support the company's continued success.

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Conclusion

Pfizer is a global leader in pharmaceuticals that has taken significant strides to integrate sustainability into all aspects of its business operations. Its CSR reporting provides stakeholders with a transparent picture of its CSR efforts, highlighting its commitment to addressing global challenges and enhancing its impact on society. The company has made substantial progress towards achieving its ESG priorities, including product innovation, equitable access and pricing, product quality and safety, diversity, equity, and inclusion, climate change, and business ethics. Pfizer's commitment to sustainability is also demonstrated by its investment in research and development programs, the provision of medicines and vaccines to over 1.3 billion patients, and the Accord for a Healthier World initiative, which aims to provide all its innovative medicines and vaccines to 1.2 billion people in 45 lower-income countries.

Pfizer's financial performance and stability are important to investors, who are also interested in the company's long-term sustainability and how it is addressing risks and opportunities related to ESG factors. The company has set ambitious targets to reduce its carbon footprint, minimise waste, and conserve resources. It recognises the importance of investing in its employees' health, safety, and professional development and acknowledges the significance of responsible sourcing and ethical business practices. However, some stakeholders expressed concerns about the pricing and accessibility of Pfizer's products in certain regions. Pfizer has acknowledged these concerns and stated its commitment to addressing them through continued engagement with stakeholders and ongoing improvement of its CSR initiatives.

Pfizer's comprehensive CSR reporting and external assurance letter add transparency and credibility to its sustainability efforts, enhancing stakeholder trust and confidence in the company's commitment to sustainability. Pfizer's dedication to creating sustainable value for its stakeholders is a model for other companies in the pharmaceutical industry, and it is well-positioned to continue leading the way in addressing global challenges and creating a more sustainable future.

References

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