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Strategic Corporate Social Responsibility and Orphan Drug Development: Insights from the US and the EU Biopharmaceutical Industry

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  • Olga Bruyaka
  • Hanko Zeitzmann
  • Isabelle Chalamon
  • Richard Wokutch
  • Pooja Thakur

Abstract

In recent years, the biopharmaceutical industry has seen an increase in the development of so-called orphan drugs for the treatment of rare and neglected diseases. This increase has been spurred on by legislation in the United States, Europe, and elsewhere designed to promote orphan drug development. In this article, we examine the drivers of corporate social responsibility (CSR) activities in orphan drug markets and the extent to which biopharmaceutical firms engage in these activities with a strategic orientation. The unique context of orphan drugs constitutes a research opportunity to test the applicability of existing theoretical perspectives on CSR and strategic CSR. Using Schwartz and Carroll’s (Bus Ethics Q, 13(4):503–530, 2003 ) three-domain approach to CSR and the literature on strategic CSR as a theoretical background, we employ a combination of semi-structured interviews and a quantitative website content analysis to study practices of biopharmaceutical firms in the United States and European Union. Our findings show that both US- and EU-based companies engaged in orphan drugs development perceive their involvement as a responsible business activity beyond the economic dimension of CSR. However, for the majority of these companies their CSR activities do not qualify as strategic according to the criteria established in the literature. We also find significant differences between larger and smaller firms in their use of CSR. Based on these findings, we make several suggestions regarding orphan drug legislation and other measures that might help firms exploit strategic CSR benefits. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Olga Bruyaka & Hanko Zeitzmann & Isabelle Chalamon & Richard Wokutch & Pooja Thakur, 2013. "Strategic Corporate Social Responsibility and Orphan Drug Development: Insights from the US and the EU Biopharmaceutical Industry," Journal of Business Ethics, Springer, vol. 117(1), pages 45-65, September.
    • Handle: RePEc:kap:jbuset:v:117:y:2013:i:1:p:45-65
    DOI: 10.1007/s10551-012-1496-y
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    Cited by:

    1. Pooja Thakur-Wernz & Olga Bruyaka, 2017. "Co-evolutionary Perspective on Sourcing Portfolios: Examining Sourcing Choices for Clinical Trials of Bio-pharmaceutical Firms," Management International Review, Springer, vol. 57(6), pages 909-946, December.
    2. Christine Vallaster, 2017. "Managing a Company Crisis through Strategic Corporate Social Responsibility: A Practice‐Based Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 509-523, November.
    3. Belousova, Olga A. & Groen, Aard J. & Ouendag, Aniek M., 2020. "Opportunities and barriers for innovation and entrepreneurship in orphan drug development," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    4. Thakur-Wernz, Pooja & Bruyaka, Olga & Contractor, Farok, 2022. "Sourcing portfolio diversity in new product development: Antecedents and performance implications," Journal of Business Research, Elsevier, vol. 150(C), pages 179-193.
    5. Thakur–Wernz, Pooja & Wernz, Christian, 2022. "Impact of stronger intellectual property rights regime on innovation: Evidence from de alio versus de novo Indian bio-pharmaceutical firms," Journal of Business Research, Elsevier, vol. 138(C), pages 457-473.
    6. Karen LaPierre & Naomi Wakayama & Toshiro Wakayama, 2016. "Creating Shared Value In The Presence Of Conflicts And Tradeoffs: A Paradox Perspective On Business And Society," Working Papers EMS_2016_11, Research Institute, International University of Japan.
    7. Sascha Kraus & Janina Burtscher & Christine Vallaster & Martin Angerer, 2018. "Sustainable Entrepreneurship Orientation: A Reflection on Status-Quo Research on Factors Facilitating Responsible Managerial Practices," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    8. Piscitello, Lucia & Thakur-Wernz, Pooja, 2023. "Impact of domestic and foreign knowledge mechanisms on the innovation performance of Indian firms," International Business Review, Elsevier, vol. 32(4).

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