Strategic CSR through Healthcare: A Case study on Indian Pharmaceutical Companies

Economics

Second National Level Interdisciplinary Seminar on "Exploring Emerging Trends and Innovation in Research in Commerce, Science & Technology, Humanities and Social Sciences”

Indian Pharmaceutical sector contributed 2.4%in global pharmaceutical business in terms of value and 10% in terms of volume. It is anticipated to grow at a CAGR of 12.89% over 2015–20 to reach USD55 billion. Indian healthcare sector, one of the fastest growing sectors, is expected to advance at a CAGR of 17 % to reach USD250 billion over 2008–20. Under the newly enacted Companies Act 2013 in which under section 135 make Corporate Social Responsibility (CSR) as an obligation that companies need to spend 2% of average the last three years net profits on CSR activities which has been initiated since April 1, 2014 as per Companies (CSR) Rule 2014.Based on public disclosure of 11 pharmaceuticals companies out of top 100 company based on SEBI market capitalization, prescribed CSR spending and actual spending have been increasing during financial year 2014-15 to financial year 2015-16. Using Porter and Kramer (2006), we categorise strategic CSR and Responsive CSR activities based on their expenditure at the state level implementation and analyse both quantitative as well as qualitative data in order to arrive with significant findings. Our findings are quite consistent with the real life practices along with company’s long term plan to create new business opportunities through strategic CSR. Over the period of time the issue of sustainability and inclusive nature of growth have been ensured and that strategic CSR would likely to increase access to healthcare facilities to the socially excluded people. CSR become one of the non-price competition instrument as well as reducing non-financial risk which also ensure through better public disclosure practices under corporate governance mechanism of pharmaceuticals companies.

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