GlaxoSmithKline (GSK) PLC and An AstraZeneca PLC An Insight of Social and Sustainability Report

GlaxoSmithKline (GSK) PLC and An AstraZeneca Plc
An insight of social and sustainability report
1
Ref. Table of Contents Page
1. Introduction 3
2. Compare and contrast the different engagement 4

techniques and strategies the two companies are using in
implementing their social and environmental accountability
to society
3. Compare and contrast how the companies have verified 7

their sustainability/social reports. Critically evaluate the
assurances, if any, the companies have provided as a form
of verification
4. Compare and contrast how the two companies have 9

measured and reported their social/environmental
performance. Critically evaluate the challenges in
measuring social/environmental performance.
5. Based on the two social/sustainability reports, identify and 13

discuss the best practices in social/sustainability reporting
6. Conclusion 15
2
1.0 Introduction
1.0 I have selected two public listed companies in the London Stock Exchange
to study the company’s sustainability report and to critically provide my
opinion with regards to the requirements of the coursework.
The main reason GSK Plc and AstraZeneca Plc has been chosen is due
to the similarity of both company’s nature of business in medical sector
which used by millions of patients worldwide. In addition, both companies
have very strong background such as their financial performance, social
and sustainability initiatives to the public and comprehensive engagement
techniques to the stakeholders.
1.1 Background of the Company
Details GSK Plc AstraZeneca Plc

Address of Business C8 Gsk House, 980 Great 1 Francis Crick Avenue, Cambridge
West Road, Brentford, TW8 Biomedical Campus, Cambridge, CB2
9GS, United Kingdom 0AA, United Kingdom
Type of Business Global Pharmaceuticals, Global Pharmaceutical &
Vaccines and Consumer Biotechnology Company
healthcare
Website http://www.gsk.com http://www.astrazeneca.com
Status of Company Listed in LSE (Main Market). Listed in LSE (Main Market). Premium
Premium Equity Commercial Equity Commercial Companies
Companies
Market cap (in £ 71,863.36 £64,585.64
millions)*
Company’s Mission, Our mission is to help people We push the boundaries of science to
Purpose and Value do more, feel better, live deliver life-changing medicines. We
longer follow the science. We put patients
first. We play to win. We do the right
thing. We are entrepreneurial.
Number of Employee 16,000 across UK 6,700 across UK
__________________________________________________________________________________________________
https://www.gsk.com/en-gb/responsibility/
https://www.astrazeneca.com/sustainability.html
http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-
summary/GB0009252882GBGBXSET1.html?lang=en
summary/GB0009895292GBGBXSET1.html?lang=enhttps://www.astrazeneca.com/content/dam/az/PDF/Sustainability/201
8/Assurance%20Statement_Bureau%20Veritas%20-%20AstraZeneca%20Sustainability%20Report%202017.pdf
https://www.gsk.com/media/4752/assurance-statement-2017.pdf
3
2.0 Compare and contrast the different engagement techniques and
strategies the two companies are using in implementing their social and
environmental accountability to society
2.1 Engagement techniques and strategies of GSK Plc in implementing their

social and environmental accountability to society
GSK apply various engagement techniques and strategies to

stakeholders such as employee, Government and other organisations,
investors, NGOs and local communities, patient groups and healthcare
professionals, suppliers and third parties through various platform.
GSK communicate and receive feedback from employee through global

employee survey and dialogue through Let’s Talk, town hall and
messages from the Senior Management.
GSK also consistently interact with UK Government bodies and the NHS
to establish the future for the UK Life Sciences sector and partnering with
key stakeholders to develop the mechanics of vaccine procurement.
GSK communicate with investors on company’s strategy and performance

through various channels such as organising roadshows, conferences,
events, meetings with individual investors and responding to investor
surveys (Dow Jones Sustainability Index).
GSK also work with NGOs and local communities in order to strengthen
healthcare infrastructure and improve access to healthcare through GSK
global and local community programmes.
__________________________________________________________________________________________________
4
GSK engage with patient groups, healthcare professionals and patient
organisations in order to obtain their opinion and feedback in product
development through various channel such as online resources and in-
house medical capabilities to provide information about the company
medicines and vaccines.
Finally, GSK maintain strong relationship with suppliers and third parties
in order to share GSK’s values and expectations on responsible business
and environmental performance through GSK supplier portal,
engagement via GSK Third Party Oversight programme and external
platforms such as EcoVadis and Ecodesk.
2.2 Engagement techniques and strategies of AstraZeneca Plc in

implementing their social and environmental accountability to society
AstraZeneca apply various engagement techniques and strategies to

stakeholders such as employee, shareholders, investors, analysts,
patients, communities, suppliers and Government bodies and Regulators
through various channel and platform.
AstraZeneca conduct interactive engagement with employees through

semi-annual Pulse surveys to gage employee their understanding to
achieve the company sustainability goals.
_____________________________________________________________________________________
8/Assurance%20Statement_Bureau%20Veritas%20-
%20AstraZeneca%20Sustainability%20Report%202017.pdfhttps://www.gsk.com/media/4752/assurance-statement-
2017.pdf
5
AstraZeneca also organise a dialogue with the investors through media
stream, corporate website, roadshows, investor conferences, events and
email enquiries.
AstraZeneca publish the company patient group relationships on websites

that help patients understand the effect of the medicine they consume and
developed a patient-reported outcomes (PROs) to explain how patients
who have previously taken the medicine feel and function.
AstraZeneca ensure effective communication with the communities by

continuing inculcate AstraZeneca business activities and plans involving
the community healthcare. AstraZeneca has invested sponsorships,
partnerships and charitable donations globally that make AstraZeneca
medicines available free of charge or at reduced prices.
AstraZeneca develop and implement ongoing supplier engagement

programmes to ensure that they apply appropriate practices and controls
in accordance with AstraZeneca’s standard.
AstraZeneca maintain close relationship and transparently with the

Government bodies in order to support an environment towards medical
and scientific innovation and to improve healthcare infrastructure and
access to medical treatment.
__________________________________________________________________________________________________
6
3.0 Compare and contrast how the companies have verified their
sustainability/social reports. Critically evaluate the assurances, if any, the
companies have provided as a form of verification
3.1 GSK Plc
An oversight functions of business activities and review performance and

internal control of GSK business activities are supervised by the Board-
level Corporate Responsibility Committee (CRC) and the Audit and Risk
Committee respectively.
GSK have series policies, codes and standards that govern the public
health, business integrity and the environment. GSK Code of Conduct
stipulated the company values and expectations, integrity that provides
assurance to the public in order to maintain the trust of the people on the
company’s product and information.
GSK appointed DNV GL Business Assurance Services UK Limited to

conduct a limited assurance engagement in the Responsible Business
Supplement 2017 or sustainability report in accordance with the
assurance standard ISAE 3000. In the said port, DNV GL concluded that
the data provided by GSK for their assurance activities is deemed to be
reliable.
__________________________________________________________________________________________________
7
3.2 AstraZeneca Plc
AstraZeneca’s Senior Executive Team is accountable for a specific

sustainability activity target and four external sustainability experts
approve strategic direction, recommend opportunities and provide
external insight and feedback.
.
AstraZeneca practices highest level of ethics and transparency expected
from every employee. The company re-launched Code of Ethics to
strengthen employee understanding and adherence with regards to
Company Values, expected behaviours and Global Policies in carrying out
their daily work.
Bureau Veritas has provided independent external assurance on the

preparation of the sustainability report through formal stakeholder
engagement, analysis and appropriateness and accuracy on data
collection and reviewed documentary evidence provided. Assurance is in
accordance with the International Standard on Assurance Engagements
3000 (ISAE3000), and in accordance with ISAE3410 Assurance
Engagements on Greenhouse Gas.
__________________________________________________________________________________________________
8
4.0 Compare and contrast how the two companies have measured and
reported their social/environmental performance. Critically evaluate the
challenges in measuring social/environmental performance.
4.1 GSK Plc
GSK set 23 Global commitments in addressing global health needs

through science, creating sustainable access to high-quality products and
being a responsible business practices. GSK emphasises on better
access to medicines and vaccines, community investment, strengthening
healthcare infrastructure, neglected tropical diseases, eradicating polio,
carbon emissions, water used and waste disposal that effects the
environment.
GSK measured and reported their social and environmental performance

among others through the following activities:-
 GSK external benchmarking on Access to Medicine Index and the

first Anti-Microbial Resistance Benchmark in early 2018, Dow Jones
Sustainability World and Europe Indexes that places GSK in the top
2% for economic, environmental and social performance. GSK
benchmark on the FTSE4 Good Index based on their environmental,
social and governance practices.
 GSK’s achievements on transparency of clinical trials i.e. GSK were

ranked no.1 in the All Trials Transparency Index, building on GSK
long-standing commitment to transparency in clinical trials.
__________________________________________________________________________________________________
9
 GSK have reached 2.7 million children in 41 countries with life-
saving interventions with ”Save the Children”. GSK had also
donated approximately 80 billion albendazole tablets to prevent
lymphatic filariasis and intestinal worms since 1999.
 In January 2018, GSK were ranked no.1 of the large

pharmaceutical companies in the Access to Medicines
Foundation’s first AMR Benchmark.
4.1.1 GSK Plc challenges in measuring social/environmental performance
Challenges faced by GSK is as follows;-

 More detail information from GSK internally on the collective
information is a challenges faced in addressing the issues.
 Public understanding over GSK’s commitment to build healthcare
infrastructure.
 Working with third parties in addressing the most common issues
identified as requiring follow up action and extensive reviews from
both side.
 Inadequate engagement with stakeholders that provides exact and
precise views and perspectives.
__________________________________________________________________________________________________
10
4.2 AstraZeneca Plc
AstraZeneca sustainability commitments to connect between business

growth, the needs of society and the limitations of the earth. Access to
healthcare to the world communities and overcoming healthcare barriers
such as access and pricing of medicines.
Environmental protection and reduce environmental impacts on human

health and the environment using innovative science to find new options
to conserve natural resources and ensure the environmental safety of
AstraZeneca’s products. AstraZeneca practices good ethics and
transparency demonstrating ethical business practices and a high level of
integrity.
AstraZeneca measured and reported their social and environmental

performance among others through the following activities:-
 AstraZeneca benchmark their product and performance with the

Dow Jones Sustainability World and Europe Indexes, the
FTSE4Good Index based on their environmental, social and
governance practices, Dow Jones Sustainability Index, CDP’s water
programme and ACS GCIPR for a biologic products resource
efficiency metric.
 Patient Assistance Programmes introduced that make the company

medicines available free of charge and patient access programmes
that coordinate with health systems to provide medicines at a lower
price.
__________________________________________________________________________________________________
11
 Offered programmes for discounts and donations around the world to
provide access to their medicines. Established the AstraZeneca Health
Care Foundation to promote public awareness and education of
healthcare issues and through charitable donations.
 Manage impact on the environment, across all the company activities

such as the GHG emissions, energy consumption, waste production and
water use.
 Invested in solar energy systems across seven in the US, UK, Germany,
Australia and China with zero emission renewable power.
4.2.1 AstraZeneca Plc challenges in measuring social/environmental

performance
Challenges faced by AstraZeneca is as follows;-

 Programme that requires customisation to meet the local needs of
specific region and NGO’s capacity to help the company implement
the programmes.
 Patients outreach by addressing education and cultural barriers,
infrastructure, awareness and screening.
 Risks on political and economic instability and complexities of

interacting with different health authorities.
__________________________________________________________________________________________________
12
5.0 Based on the two social/sustainability reports, identify and discuss the
best practices in social/sustainability reporting
GSK Plc
Investors are keen to evaluate environmental, social and governance factors in

the financial analysis when determining the long-term value of GSK. The
Corporate Executive Team is responsible for governance on environment,
health and safety and sustainability under the company’s global policy.
Managers will ensure that the Environment Health Safety & Sustainability
(EHS&S) control framework is effective and well implemented in their business
area and complied with all applicable laws and regulations and each employee
is personally responsible for EHS&S matters.
On patient safety, GSK maintained strong oversight by developing the company

capabilities to detect safety issues and standards simpler is effective. On
product quality, the company continuous improvement in data integrity
programmes and quality management system ensure the product met the
quality standard.
Risk on Anti-Bribery and Corruption (ABAC) is mitigated due to the fact that the
company strengthened their management of ABAC especially when the
company dealing with the third party. Thus, ethical values is embedded within
the company in ensuring reliable information reported in the sustainability
report.
__________________________________________________________________________________________________
13
AstraZeneca Plc
AstraZeneca practices is embedded into the company Purpose and Values. It

promotes their sustainability priorities which reflect the way the company
conducting the business. AstraZeneca integrating sustainability considerations
across the company functions and business units. Part of the initiatives is as
follows:-
 All newly hired employees will be train for sustainability training and
sustainability education.
 Report on sustainability related matters by incorporating content within the

year to date and quarterly results for investors.
 AstraZeneca launched a Code of Ethics that is based on the company

Values, expected behaviours and key policy principles. It outlines their
ethical commitments and encouraging employees to make decisions in
the best interests of the company.
 AstraZeneca engaged with employees and external stakeholders,

investors, ministries of health, NGOs, patients and suppliers to hear their
sustainability concerns and feedback.
__________________________________________________________________________________________________
14
6.0 Conclusion
GSK Plc and AstraZeneca Plc promotes a good examples in engaging with the
stakeholders, the communities and patients. Both companies having clear,
precise and responsible business strategies and sustainability approaches that
reflects from the Annual Reports and Sustainability Reports respectively.
Both companies creating value to the society in running the business and the
performance also shows a good results as depicted in the said reports. Good
governance, code of business, risk management, internal control system and
talented management team conducting the business effectively.
Both companies also shows a similar strategies to environmental and social

performance where both focus on employees cares and ethics, product quality,
and their financial performance.
15

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GlaxoSmithKline (GSK) PLC and An AstraZeneca Plc

An insight of social and sustainability report

2. Compare and contrast the different engagement 4

3. Compare and contrast how the companies have verified 7

4. Compare and contrast how the two companies have 9

5. Based on the two social/sustainability reports, identify and 13

1.1 Background of the Company

Details GSK Plc AstraZeneca Plc

2.1 Engagement techniques and strategies of GSK Plc in implementing their

GSK apply various engagement techniques and strategies to

GSK communicate and receive feedback from employee through global

GSK communicate with investors on company’s strategy and performance

2.2 Engagement techniques and strategies of AstraZeneca Plc in

AstraZeneca apply various engagement techniques and strategies to

AstraZeneca conduct interactive engagement with employees through

AstraZeneca publish the company patient group relationships on websites

AstraZeneca ensure effective communication with the communities by

AstraZeneca develop and implement ongoing supplier engagement

AstraZeneca maintain close relationship and transparently with the

3.1 GSK Plc

An oversight functions of business activities and review performance and

GSK appointed DNV GL Business Assurance Services UK Limited to

AstraZeneca’s Senior Executive Team is accountable for a specific

Bureau Veritas has provided independent external assurance on the

4.1 GSK Plc

GSK set 23 Global commitments in addressing global health needs

GSK measured and reported their social and environmental performance

 GSK external benchmarking on Access to Medicine Index and the

 GSK’s achievements on transparency of clinical trials i.e. GSK were

 In January 2018, GSK were ranked no.1 of the large

4.1.1 GSK Plc challenges in measuring social/environmental performance

Challenges faced by GSK is as follows;-

AstraZeneca sustainability commitments to connect between business

Environmental protection and reduce environmental impacts on human

AstraZeneca measured and reported their social and environmental

 AstraZeneca benchmark their product and performance with the

 Patient Assistance Programmes introduced that make the company

 Manage impact on the environment, across all the company activities

4.2.1 AstraZeneca Plc challenges in measuring social/environmental

Challenges faced by AstraZeneca is as follows;-

 Risks on political and economic instability and complexities of

Investors are keen to evaluate environmental, social and governance factors in

On patient safety, GSK maintained strong oversight by developing the company

AstraZeneca practices is embedded into the company Purpose and Values. It

 Report on sustainability related matters by incorporating content within the

 AstraZeneca launched a Code of Ethics that is based on the company

 AstraZeneca engaged with employees and external stakeholders,

Both companies also shows a similar strategies to environmental and social

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