Name: Loi Zhong Yu Student Number: 14784440 Student e-mail address: zhongyu13@hotmail.

com Tutor s name: Anne Marie Gutierrez Tutorial day & time: Wednesday, 2-4p.m. Semester & campus details: Semester 3, 2010 Singapore. Topic 1: GlaxoSmithKline

they have to incur extra cost to make sure that all waste products are properly disposed off in their day to day operation. They think that the corporations have no social responsibilities. social and societal initiatives rather than focus on narrow. which are maximizing returns to the shareholders (Corporate social responsibility 2010). there are potential benefits from CSR program such as brand differentiation. Some companies therefore use CSR as a strategy to gain public and government support by involving and contributing to community programs. For example. as multinational corporations expand their businesses through globalizations. they face new challenges on different government regulations. the amount the company allocated for CSR is restricted each year to a small percentage of the company s budget. businesses cannot only focus on profit maximization. 2009). GSK do not only focus on what they achieve but also the way they achieve it. On the other hand. Van Der Stede of London School of Economics pointed out the importance of CSR in business sustainability. but they have to operate with a human face (Evelyn S Wong.Corporate Social Responsibility (CSR) A mechanic who operates his own garage may pour the used motor oil into the drain after servicing a vehicle but a mechanic at the service centre of Toyota or Honda is not allowed to do that as the company has strict guidelines and policy on waste disposal. He thinks that in order for the organizations to become sustainable. This is why some critics brought up the motives of CSR. tariffs. Van Der Stede 2010). United Kingdom. They critic that some companies use CSR to draw away the public from ethical issues posed by their operations and sometimes companies claim that they do involve in CSR program. They are progressing on many aspects such as . corporations are only responsible for their shareholders. Therefore. for example The Body Shop and so on. Large companies like Toyota and Honda just cannot afford the bad publicity for polluting the environment. It is formed in 2000. but they engage in harmful business practices at the same time (Corporate social responsibility 2010). Individual such as Bill Gates and Warren Buffett can donate almost 100% of their wealth for charities but it will be unthinkable if the management of a multinational company allocate 100% of a year s profit to charities. However. Furthermore. there are arguments against the need for CSR. GSK is a pharmaceutical company headquartered in London. GSK is changing to fulfill the needs and expectations of society. It has its own CSR program. they should improve their business objectives by including environmental. GSK believe that having strong values in business is important in order for the business to be success (GlaxoSmithKline plc 2009). Milton Friedman and others have argued on the corporation s purpose. conventional objectives of operational excellence and financial performance (Wim A. As a result of these challenges. making monetary donations and giving aids to charitable bodies. In a recent article titled How To Become Sustainable Professor Wim A. environmental and labour issues.

which is a controversial animal-testing company. reduction and refinement. GSK just like any other pharmaceutical companies use animal testing in research. HLS did not deny the incident. improving research opportunities for neglected tropical diseases. the U. Positive and Negative of GSK social performance GSK is concerned about the welfare of the animal by practicing the principles which was proposed by Russell and Burch in 1959. an American animal rights organization. shot a film secretly in HLS (Huntingdon Life Sciences 2010). they are making a few changes. cancer. Huntingdon Life Sciences (HLS) uses 75. GSK volunteered for not using great apes to carry out biomedical research anymore. in the GSK s CSR annual report 2009. They will not commence the studies using great apes (GlaxoSmithKline plc 2009). In 1997. polio and so on. a government agency. refinement is to minimize the pain and suffering and improve the welfare of animals. Besides. the number of non-human primates used is kept at the lowest and less than 0. However.S.5% of non-human primates are used in animal research (GlaxoSmithKline plc 2009). rubella. diabetes. GSK is one of the customers of Huntingdon Life Sciences (HLS). known as 3Rs in all animal studies (GlaxoSmithKline plc 2009). This causes some concern by certain stakeholder such as People for the Ethical Treatment of Animals (PETA). 2009). In USA. Later the film was broadcast on Channel 4 television showing a beagle was hitting and repeatedly punched by HLS s staff. Replacement is meant by replacing animals with non-animal alternatives. in United Kingdom. for example. but said the staff involved had been dismissed and prosecuted (A controversial laboratory 2001). after 28th October 2008. when GSK conduct the testing on non-human primates. and be more open and transparent of how they run the business. Based on the review. The principles for 3Rs are replacement. Food and Drug Administration (FDA). Lastly.000 animals each year in biomedical research (A controversial laboratory 2001). GSK said that they are committed to act ethically and practice good animal welfare. Animal research has helped scientists to develop lifesaving treatments and vaccines for diseases that may harm or kill millions of people. Reduction is minimizing the use of animals per experiment while getting the same information. People for the Ethical Treatment of Animals (PETA). They carried out a review of their policy on the use of animals. It is because research in animals enables scientists to detect whether or not the new medicines are safe enough to use on humans. Animal Research Animal research is an important part in GSK research. requires all new medicines to be tested on animals before reaching the store shelves (Stephanie Watson. Furthermore. They should not be one of the customers of . Firstly. increase ethical standards when research and business activities are carried out.increasing the accessibility of their medicines.

government is not concerned whether GSK is very keen on CSR or the amount they donated to charity as long as GSK follow the rules and regulations when carried out animal testing. GSK selected an independent external adviser. In March 2009. Ms Sophia Tickell to the company s corporate responsibility committee in order to improve the GSK s engagement with the stakeholders. However. Stakeholders are divided into two categories: internal and external stakeholders. or is affected by. Five Principles: access to medicines. GSK should give further disclose on the actual number of animals they used in their laboratories but not disclose the number in percentage. standards of ethical conduct. Besides. It is probably because the actual number of animals used is huge. research and development activity has increase in the same period. sale of medicines and vaccines and manufacture raise ethical issues (GlaxoSmithKline plc 2009). Moreover. as if the company make a lot of profit. special interest groups like People for the Ethical Treatment of Animals (PETA) and Stop Huntingdon Animal Cruelty (SHAC) would go against GSK as they use animal testing in biomedical research. Stakeholder like employees also have similar stand as the investors. in order to be open and transparent. From the point of view of the investors. they aimed to be more open and transparent in the way they tackle them (GlaxoSmithKline plc 2009). employment practices. GSK involvement in animal research has different impact on its stakeholders. 2008). Spence. research and innovation. the achievement of a corporation s purpose (Andrew Crane. Ms Sophia Tickell attended the meetings of the committee and gave advises to the company. Stakeholders Company does CSR also aimed to enhance the value of stakeholders and gain acceptance from the stakeholders. the committee also reviews the use of animals in research as disclosed in the CSR annual report 2009 of GSK. Dirk Matten and Laura J. and global community partnerships are reviewed annually (GlaxoSmithKline plc 2009). They will have no objection to GSK doing animal research as long as the company adheres to the rules and regulations and Animal Welfare Act. Therefore. Thus. .HLS. A stakeholder is any group or individual who can affect. GSK should consider use some other companies instead of HLS so that they do not associate themselves with treating animals cruelly. GSK claimed that they know that the research and development. what they want is just high turnover and profit from the company. In 2009. they will get more bonuses and incentives. Thus. They only reported to the public that the number of animals used in 2009 was around 20 per cent lower than in 1994.

Then. The figures will show GSK effort in reducing the number of animals used over the years. they can set target for the percentage reduction of number of animals used for each year. Furthermore. the use of modern technology such as computer modeling (Stephanie Watson. However. social groups and provide toys for them to play with (Patience Coster. GSK should consider alternative methods when conducting research.Recommendations It is recommended that GSK should disclose the actual number of animals used in research each year as the company aimed to be more open and transparent as stated in the GSK s CSR annual report 2009. Besides. minimize the pain and distress of animals during animal testing. For example. Conclusion It is necessary for GSK to conduct animal research in biomedical research before the medicines or vaccines are used by humans until the company has found an alternative method to replace the use of animals. . Researchers set up the information about human cells and the drug being tested into a computer. Moreover. GSK should show they actually practice the 3Rs concept by disclosing the actual figure of animals used in research to the public in each year. the computer can predict the effects of the drug on cells. organs and other tissues by using a mathematical formula (Stephanie Watson. GSK should reduce the number of animals used. 2009). 2009). 2009). GSK can also improve the welfare of the animals by keeping them in large cages. Furthermore.

Patience Coster. England: John Wiley & Sons. Wong. 2001. 2007. 9. Terry O Neill. Chris Hayhurst. How To Become Sustainable. United States of America: Thomson Gale. Van Der Stede. CSR for sustainability and success. Ltd. http://news.pdf (accessed December 8. 2010. 6. Manfred Pohl and Nick Tolhurst. Accountants Today: The Malaysian Institute of Accountants.org/wiki/Huntingdon_Life_Sciences (accessed December 23. 2010. Stephanie Watson. October. Wim A. Corporate Social Responsibility: A Case Study Approach.bbc. New York: The Rosen Publishing Group. Our responsibility 2009 Report. New York: The Rosen Publishing Group. 2010) . 7. USA and Canada: Routledge. 2010. Corporate social responsibility. Andrew Crane.uk/2/hi/uk_news/1123837. UK: Edward Elgar Publishing Limited. Animal testing: the animal rights debate. 2010) 12. http://en. 11.co. The A to Z of Corporate Social Responsibility: a complete reference guide to concepts. Dirk Matten. Mallin. 2000. Christine A. 3. Inc. Dirk Matten and Laura J.gsk. GlaxoSmithKline plc. 5. Animal Research and Testing. Evelyn S.com/responsibility/downloads/GSK-CR-2009-full. 8. 2009. Singapore: Marshall Cavendish Editions. codes and organizations. Wayne Visser. 2010). 2009. Corporate Social Responsibility: Readings and cases in a global context. 2009. http://en. Spence. 2010) 13. A controversial laboratory. 2. 2006. Animal testing: issues and ethics. 2009.stm (accessed December 22.wikipedia. 4. London: Wayland.References 1.wikipedia. 10. Inc. 2008. 2009.org/wiki/Corporate_social_responsibility (accessed December 16. Huntingdon Life Sciences. http://www. Animal rights.

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