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Case Study on Stakeholder Relationships

Managing Stakeholder Expectations in the UK and German Pharmaceutical Industry

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Managing Sustainable Stakeholder Relationships

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

Chapter 3 focuses on introducing a case study of the stakeholder management challenges facing decision-makers in the pharmaceutical industry in the UK and Germany. It highlights the specific contextual operating dilemmas in what could be considered a highly complicated operating context. This context-specific focus establishes the complex quality of the quest to harmonise stakeholder interests in a responsible way for this sector.

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Notes

  1. 1.

    French writer, humanist and moralist, 1947 Nobel Prize in Literature, 1869–1951.

  2. 2.

    The word ‘responsible’ is employed in this book as an adjective in the sense of being accountable. It is assumed to mean to be responsible compared with the closely related noun ‘responsibility’, which is inferred to imply the obligation or duty to have a responsibility.

  3. 3.

    By definition, as noted in the previous section, this means that in those countries where the drugs are not covered by health insurance , access to medication is limited for those who cannot afford them.

  4. 4.

    It may also be necessary to distinguish pharmaceutical product markets according to the mode of administration (an injectable drug may not be considered to be a substitute for an oral drug) or different distribution methods (a hospital-only drug may not act as a competitive constraint on a widely available prescription drug) (OECD, 2001, pp. 11–12).

  5. 5.

    For clarification, the data upon which the research presented in this book is based was undertaken in the period before the Brexit referendum, and this text accordingly refers to the situation before the Brexit decision in the UK.

  6. 6.

    Please refer to Chap. 2 for further details.

  7. 7.

    While many health systems’ rankings have been widely criticised, such the 2000 World Health Report, according to the British Medical Journal (2016), these are far more transparent, methodologically, than the EuroHealth Consumer Index. However, similar to other complex systems, there is no universal consensus on the ‘right’ way to rank health systems.

  8. 8.

    While this implies that citizens contribute according to their means, public sector monopoly is not implied as might be inferred in the UK.

  9. 9.

    For clarification however, comparing the healthcare contribution rate is complex because accident insurance [Arbeitsunfallversicherung] and long-term care insurance [Pflegeversicherung] are usually bundled with health insurance by many funds.

  10. 10.

    This section is adapted from text which originally appeared in O’Riordan (2010, pp. 44–48).

  11. 11.

    The ABPI represents large, medium, and small, innovative research-based biopharmaceutical companies in the field of biosciences in the UK. It is recognised by the Government as the industry body negotiating on behalf of the branded pharmaceutical industry, for statutory consultation requirements including the pricing scheme for medicines in the UK.

  12. 12.

    The business activities of research-based pharmaceutical companies have been described above as developing and producing pharmaceutical products and services as therapies and diagnostics for human application/consumption aimed at enhancing the quality of life as well as to cure illness and/or save lives.

  13. 13.

    The IFPMA quotes presented in this section were made by the Director General of the IFPMA, Dr. Harvey Balle.

  14. 14.

    Resulting from an upsurge in connectivity related to the ease of communicating information due to improved technology, which enhances internet access and communication, leading to increased social networking.

  15. 15.

    As a result, pharmaceutical firms have been prosecuted for anti-trust violations, including for cartels, price -fixing and forms of tying, exclusive marketing agreements, as well as agreements to delay the entry of generics.

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O’Riordan, L. (2017). Case Study on Stakeholder Relationships. In: Managing Sustainable Stakeholder Relationships. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-50240-3_3

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