Corporate sustainability reporting by pharmaceutical companies: Is it what it seems to be?

Abstract

A well-functioning pharmaceutical industry can contribute directly to social wellbeing. Corporate sustainability is an important precondition for the further development and growth of the industry. In this research multi methods are used to provide a complete, holistic and contextual portrait of the level of CSR by pharmaceutical companies in a developing country - Bangladesh. Firstly, we used content analysis to investigate corporate social reporting by listed pharmaceutical companies. Secondly, we conducted surveys to document management responses. Thirdly, we sought stakeholders' views on the extent to which they believe CSR is being implemented in the industry. Analysis of annual reports published in 2009- 2010 shows that only 26.67% of listed pharmaceutical companies made some CSR disclosure. However, more than seventy-five per cent of these disclosures are sweeping qualitative statements without any attempt at quantification. Most managers believe social reporting should strike a balance between meeting stakeholders' reasonable expectations and running a successful business. The majority of stakeholders appear to favour mandatory requirements for CSR disclosure.