1. CSR & Sustainability in the
Indian Pharmaceutical Sector

2. CSR & Sustainability in India
• Sustainable development is vital to not only improving a
company's commitment to its stakeholders but also in reducing
costs through efficient use of scarce resources and processes.
• Organizations increasingly find that their P&L statements are
influenced by parameters that do not feature on the balance sheet.
These external parameters are “sustainability” issues that could be
economic, environmental or social in nature.
• However, only around 10 per cent of the firms in the BSE 200
bring out sustainability reports.

3. Pharmaceutical Industry – An Overlook
The branch of the chemical industry associated with the discovery,
development, and manufacture of drugs and medications
Because of sustained efforts, it has greatly aided medical progress &
severity of diseases such as typhoid fever, poliomyelitis, syphilis are
greatly reduced
Challenges face by the industry : Identifying new drug targets,
attaining regulatory approval and refining drug discovery processes
Need for CSR in the Pharma Sector
CSR is a strategy where corporates integrate social, environmental or
other important concerns in their business strategies on volunteer
basis
Healthcare and pharma companies are often criticized by people as a
consequence of escalating healthcare prices and increase in
healthcare fraudulent cases.
Need for pharma firms to improve their image and counter negative
public perceptions
CSR blends excellently with their business strategy

4. Pharmaceutical Sector in India
• Indian pharma industry ranks 3rd globally
in terms of volume
• 4th largest producer of pharmaceuticals
• Presence of 15 of the 20 largest
companies in the world
• 35% of the drugs in the US markets
come from India
• Highest quality approvals from USFDA,
EDQM & MHRA
• 13 billion USD sales in 2012
List of Major Indian
Pharma companies:
Dr Reddys Labs
Cipla
Lupin
Ranbaxy Labs
Glenmark
Abott India
Novartis India

5. R & D Spending of leading Indian & Global
Pharmaceutical Companies
 Indian pharma majors have to spend Rs.325 cr under
Corporate Social Responsibility scheme Companies Bill 2012

6. Case Study : GlaxoSmithKline
• Three primary areas of business:
• £25bn Amount returned to shareholders via dividends and buybacks
over past five years
• 1st in Access to Medicines Index
• 23 :Number of new product approvals in the USA and Europe in the
past five years
Pharmaceuticals Vaccines Consumer
Healthcare
£18.0bn
Turnover
£3.3bn
Turnover
£5.1bn
Turnover
68%
of Group
13%
of Group
19%
of Group

7. CSR Ratings
Overall Community Employees Environment Governance
GSK
India
57 57 66 47 61
GSK
Global
52 51 53 55 51

8. GSK’s CSR Initiatives
• GSK has substantially reduced the price of its patented medicines in
the least developed countries (LDCs) to 25% of developed world
prices.
• GSK reinvests 20% of its profits from sales of medicines in those
countries to support the strengthening of healthcare infrastructure.
• Researchers also have access to GSK's intellectual property and
know-how.
GSK’s initiatives can be classified as :
 Health for all
 Our behavior
 Our people
 Our planet

9. Health for all - overview
• Giving children a better start in life through deworming
• Aims at improving health by developing innovative & improved
products & disease prevention
• Partnering with others to tackle issues of lack of health infrastructure
• Interactive patient programme to make better medicines

10. Global challenge
• Poverty – a key issue
• WHO recommends – investment of $44 per capita per year
• 29 countries still to meet this target

11. Global challenge
Barriers at global level
• Lack of effective treatments
• Affordability
• Healthcare infrastructure
• Resistance to existing treatments
• Non communicable diseases
• Stigma & discrimination
GSK role
• Innovative science creating value for all
• Access to healthcare
• Investing in treatment of diseases of developing world

12. Diseases of developing world
GSK commitment
• Partnering with Gates Foundation to fight 10 out of 17 neglected
tropical diseases
• Investing in PHASE – Personal Hygiene and Sanitation Education
• Dedicated NTD units set up to accelerate the fight
• Since 1998 half a billion people in more than 50 countries have
been treated
• Eradication of polio and researching vaccines for malaria and fight
against HIV / AIDS
• Product & financial donations
• 3 billionth albendazole tablets donated
• Donations to low income patients through Patient Assistance
Programs in USA
• Supplying antibiotics, basic medicines to those hit by epidemics and
natural calamites

13. Financial giving
54
131
3
18
Financial giving in £m
Cash
Product and in-hand
Time
Management

14. % spent on support
programmes
5628
16
Financial giving in %
Health & well being
Education
Other

15. Ethical standards & behavior
• Integrating value based culture
• Medical governance
• Bribery and corruption
• Human rights
• Compliance
• Addressing misconduct
• Breaches of external codes
• Sales & marketing
• Working with healthcare professionals
• Research practices
• Manufacturing & supply chain
• Public policy and patient advocacy and taxation

16. Our People
• Talent and development - Recruited 317 graduates globally, making
progress towards the target of recruiting 450 graduates a year by
2015.
• Empowered 91 employees from 22 countries to volunteer with 51 non-
profit organisations in 26 countries through PULSE assignments.
• Inclusion and diversity - Increased the proportion of women in
management to 40%, up from 39% in 2011. The people we employ in
our Emerging Markets, Asia Pacific and Japan regions represent 42%
of our total workforce, up from 40% in 2011.
• Launched Project Search in the UK to help a group of young people
with learning disabilities make the transition from education to the
world of work at GSK.

17. Our People
• Employee engagement - In the global employee survey, 85% said they
were proud to work for GSK (based on 72% participation). This equals
the level from the last survey.
• Health, safety and well-being - Reduced the injury and illness rate by
10%.
• Provided resilience training for 6,400 employees, including advice on
reducing stress and improving energy levels.

18. Our Planet
• Carbon - Despite reducing the carbon from energy use by 15% since
2010, the total carbon footprint (excluding that from raw materials)
has increased by 7% from 2010 driven by higher inhaler sales.
• Water - Reduced water consumption in their own operations by 14%
compared to 2010.
• Waste - Cut total waste by 9% and sent 40% less waste to landfill
compared with 2010.
• Established an inhaler recovery and recycling service in the UK, USA
and Chile, collecting more than 90,000 used inhalers in the UK.

19. Our Planet
• Managing other impacts - Created a Green Chemistry Performance
Unit to research ways to replace hazardous chemicals and processes
with lower impact alternatives.
• Pledged £12 million to establish a Centre of Excellence for green
chemistry in collaboration with the University of Nottingham, UK.
• Engagement - Engaged 32 suppliers on carbon, water and waste
reduction.

20. Data Summary

21. GSK’s CSR in India
• Gramin Arogya Vikas Sanstha (GAVS) – focus on
Tribal health care project
– covering 60 villages through nine health centers and
mobile van clinics in Nashik, Maharashtra
– In 2012, this project has impacted the lives of 30,000
direct beneficiaries and 1.25 lakh indirect
beneficiaries through health checkups and education
sessions.
• Support to Institute for Indian Mother and Child
(IIMC)
– providing primary health care services to mother and
child
– Covered 950 villages while catering to 300 mothers
and 26000 malnourished children.
• Assessing health care needs of 30,000 slum
dwellers in the slums of the dumping grounds in
Deonar, Mumbai
Tribal
population
is 8% of
India’s total
population
(MMR) of
India is 212
per one lakh
live births

22. GSK’s CSR in India
• Cancer care support for four voluntary
organizations
– 120 camps were conducted where 10,000 patients
were screened for cancer - 1849 were suspected
with cancer out of which the hospital has operated
upon 248 patients thereby helping them to cure their
cancer.
• Residential shelter home for children in
Jodhpur, Rajasthan & Behraich, Uttar Pradesh
– providing them education, food and shelter
& preventing migration for labor
– "School Chalo Abhiyan" was organized
– Child helpline 1077 was also initiated to protect child
exploitation
5.56 Lac
deaths in a
year in India
due to
cancer
2 Crore
Children in
India
engaged in
Child labor

23. Good Practices In Pharmaceutical Companies
 Formulation of GMP (Good Manufacturing Practices) in 1967 by WHO
Environmental protection – Companies treat effluents before disposal following
EHS safety guidelines
 Being transparent – medicine recalls
 Implementation of information technology
 Accountability for actions

24. Examples of Good Practices by Major
Pharmaceuticals
 Ranbaxy Sanjeevan Swasthya Sewa, a public private partnership with the
Punjab State government in 2010 where the focus is mainly on primary
healthcare and prevention and early detection of commonly found cancers
of cervix, breast and oral cavity.
 Novartis Malaria Initiative – Assistance and aid in manufacturing and
supplying “AL”, in areas such as sub-Saharan Africa, where infants and
young children suffer from Malaria
 Bayer – Didget, social networking site and blood glucose monitoring tool
for young people living with diabetes in the United Kingdom
 River blindness plagued remote communities in Africa, Latin America and
the Middle East. In October 1987, Merck committed to donate Mectizan,
a much needed medication with the goal to
help eliminate river blindness. Merck has stated
that it will continue to donate this medication
as much as needed.
(Ref: http://www.merck.com/about/featured-stories/mectizan1.html)

25. Bad Practices in Pharmaceutical Companies
Failure to comply with FDA norms
 Stopping the manufacture of low cost medicines
 Illegal drug trials - Not following the guidelines laid down by Nuremberg
Code, International Conference on Harmonization (ICH) guidelines, etc
 Not revealing the failed test groups results
 Unethical Marketing Practices
 Gifting and rewarding doctors to promote drugs

26. Examples of Bad Practices by Major
Pharmaceuticals
In 1998, 6.1 million people in developing countries died from diseases that are preventable, and
curable, including malaria, tuberculosis, and lower-respiratory-infections. These people died
because the drugs used to treat their diseases are either no longer effective, nonexistent, or too
expensive.
 In June 2008, Pfizer was forced to pay a $975,000 fine for violating the Clean Air Act at one of its
manufacturing plants in Groton, Connecticut – a drop in the bucket for a company that makes
upwards of $50 billion in profits every year. The Pfizer plant was emitting methanol, hydrogen
chloride, methylene chloride, MTBE, hexane, toluene and other chemicals classified by the EPA as
hazardous air pollutants
 Masking the trial as a “humanitarian mission”, Pfizer tested an experimental antibiotic called
Trovan on meningitis-infected Nigerian children without their knowledge or the knowledge of their
families. 11 children died, and others developed brain damage and crippling arthritis.
 In 1998, Bayer, conducted pesticide experiments on
humans - called the Inveresk trials. The experiment conducted
was a forceful effort to get US Environmental
Protection Agency to reverse pesticide controls introduced
to protect children. The chemical, which the participants were
given in minute doses, was a pesticide deemed 'highly
hazardous' by the World Health Organization.

27. Conclusion
• The proactive practices of International pharmaceutical
companies towards sustainability are beginning to show
measurable results.
• With the recent prescription from the GOI, the Indian
Pharma Inc seems to be gearing up to earn its stripes as
a more responsible corporate citizen.

28. Thank You
Presented by:
Neha Kumar – A029
Rashi Kapur – A039
Sonal Rajadhyax – A050
Tarannoom Rehmani –A053
Yuvraj Tandon – A059
November, 2013