Evaluation of Corporate Social Responsibility Practices in the Turkish Pharmaceutical Industry

Sevil AZAK SUNGUR; Bilge SÖZEN ŞAHNE; Selen YEĞENOĞLU

doi:10.4274/tjps.galenos.2025.61505

ABSTRACT

Objectives

Corporate social responsibility (CSR) is defined as companies voluntarily taking action with their resources to help solve some of the social, economic, and environmental problems of the society in which they operate. This study aimed to reveal the current status of CSR projects in the pharmaceutical industry, which are strategically important on a global scale.

Materials and Methods

The study was conducted between June and December 2019 using a structured online survey. The form included both multiple-choice and open-ended questions. This survey yielded both qualitative and quantitative data about the structure, size, and products of the companies, as well as details of CSR projects.

Results

A total of 60 companies participated in the study. Our survey results indicated that 83.33% of the pharmaceutical companies undertook CSR projects, and there was no statistically significant difference in the number of projects undertaken according to either the type of products the companies marketed or the companies’ country of origin (p>0.05). It was found there were statistically significant differences with other factors such as project fields, the number of projects over the years, and the responsible department (p<0.05). When we examined the details of specific CSR projects, we observed that some companies, regardless of their national or multinational position, undertook sustainable projects that involved a broader array of stakeholders and appealed to various shareholder groups. Some companies undertook studies for patients, patient relatives, or society based on philanthropic activities or short-term social projects on local issues, instead of long-term projects within the scope of CSR initiatives.

Conclusion

Pharmaceutical companies carry out CSR projects as an important public relations activity in terms of reaching their stakeholders.

Keywords:

Pharmaceutical industry, corporate social responsibility, social responsibility, Türkiye

INTRODUCTION

Understanding Corporate social responsibility (CSR) has gained importance worldwide due to such developments as globalization, increasing social awareness, and the challenges of competition.¹^,²

There is no single, universal definition of CSR, since the term undergoes changes in response to dynamic national and international social and economic conditions. The concept of CSR, which encompasses responsibility as well as social responsibility, covers many domains, including human rights, transparency and accountability, occupational health and safety, business ethics, ethical working perception, environmental protection, sustainable development, and the fight against corruption.³ Furthermore, CSR projects differ within the framework of the specific conditions, values, and economic status of the countries in which they are conducted, as well as the expectations of stakeholders.⁴ CSRs and public relations (PR) have a lot in common, such as public welfare, and they are strategically important to firms’ social roles.⁵^,⁶

Activities related to CSR conducted by the public, private sector, or non-governmental organizations are also applicable in the healthcare sector. Yet for purposes of both sincerity and accuracy, it is vitally important that studies conducted in this field be constrained by ethical limits. Among other things, the ethical framework must be constructed to prioritize the social good rather than advertising.⁷ Social responsibility in healthcare was first discussed at the World Health Organization’s 4^th Health Promotion Conference in 1997. The “Declaration of the International Bioethics Committee” by the United Nations Educational, Scientific, and Cultural Organization is also concerned with social responsibility and health, emphasizing that the most important goal of administrations and all societal sectors is to promote public health and social development.⁷ Nevertheless, published studies contain very limited information about the CSR projects undertaken by the pharmaceutical industry, despite its being one of the world’s most important and strategic sectors for human welfare.^8-12

According to the research, surveys examining the CSR projects of pharmaceutical companies found that, since the projects are undertaken voluntarily, each company decides on the scope of its own CSR projects independently. The leading areas of these projects include innovative medicine development; access to medicine and pricing strategies; environmental initiatives such as reducing ecological footprint and managing pharmaceutical waste; social practices focusing on employee well-being, equality, and fair working conditions; philanthropic efforts including donations and educational support; and ethical commitments to transparency and risk management.⁸^,^10-12

Controversies have been generated by the conflict of interest arising from the industry’s dual roles. As a developer and supplier of innovative and life-saving medicines, the pharmaceutical industry has both an entrepreneurial role and a healing role that carry responsibilities to society. The controversies mainly concern product recall activities; direct-to-consumer advertising and industry-supported education; pricing, access to pharmaceuticals; innovation; and patents.⁹ Some of the criticisms of the industry are about unethical animal testing and unethical life-saving pharmaceuticals that are unaffordable for the poor.¹³ The industry is under great pressure to reduce costs, particularly now that patents for high-tech and therapeutically important products have expired and product safety reviews have increased.⁸^,¹²^,¹⁴ The role of CSR projects in improving the brand image is important.¹⁵

In response to such criticism, pharmaceutical companies have significantly increased their CSR efforts over the past two decades, particularly in low and middle-income countries that have the highest global incidence of disease.¹³ In developing countries, these companies actively undertake the necessary activities to fight against Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome and other epidemics and pandemics, and to promote social welfare.¹³ Pharmaceutical companies have also been criticized for using CSR to restore compromised reputations or to reverse public beliefs about the companies’ unethical business practices.¹³

The pharmaceutical industry is the third largest industry in the world, and according to 2018 data, Türkiye ranks 17^th in the world’s pharmaceutical markets.¹⁶ As part of the global pharmaceutical market, pharmaceutical companies operating in Türkiye conduct CSR projects. However, there have been no scientific studies investigating Turkish pharmaceutical companies and their CSR projects.

Public welfare, the common point of CSR and PR, is also important to the pharmaceutical industry. Moreover, no recent study has examined the current status of CSR, which is significant for sustainability within the pharmaceutical industry in Türkiye. In this study, we aimed to reveal the current status of CSR projects in the pharmaceutical industry and to determine the relationship between variables such as the companies’ profiles, whether national or multinational, product groups in the market, and their structuring with CSR projects.

MATERIALS AND METHODS

In this study, a descriptive analysis was conducted to reveal the current status of the CSR projects of pharmaceutical companies in Türkiye.

Survey design and data collection

To ensure a comprehensive evaluation, 21 questions were developed by considering topics frequently addressed in the literature and structures that emerged in previous similar studies.¹^,⁵^,⁸^,^11-14 In addition, the questions were clarified in line with expert opinions and organized to be suitable for the pharmaceutical industry. In this context, simplifications were made to ensure that the participants could understand the questions. Before implementation, the survey was finalized based on expert feedback. This survey yielded both qualitative and quantitative data about the structure, size, and products of the companies, as well as details of CSR projects between 2009 and 2019.

CSR categories have been determined according to the categories addressed in similar studies in the literature. CSR projects were categorized as belonging to the following areas: health, education, environment, culture and art, sports, philanthropy, science, and other. Responses to the survey questions yielded additional information about the CSR projects, including project names, start and end dates, target audience, etc. This information was classified according to the CSR project groups. Projects undertaken before 2009 or having uncertain dates were excluded.

To investigate the pharmaceutical industry’s status in Türkiye, 110 pharmaceutical companies were identified using membership lists of the following industry associations: The Association of Research-Based Pharmaceutical Companies (AIFD); Pharmaceutical Manufacturers Association of Türkiye (IEIS); and Turkish Pharmaceutical Industry Association (TISD). Each of the 110 pharmaceutical companies was a member of at least one of the above-mentioned associations. The survey was shared with identified companies through email. Participants were informed about the purpose of the study, data confidentiality, and the voluntary nature of participation. Those who gave their consent participated in the survey. Data collection was completed between June and December 2019.

Ethical approval

This study was approved by the Ethics Commission of Hacettepe University (approval number: E.563072, dated: 25.04.2019).

Statistical analysis

Statistical analysis was conducted using Statistical Package for the Social Sciences for Windows (Version 23.0; Armonk, NY: IBM Corp., USA). In addition to descriptive statistics, non-parametric tests such as the chi-square test, Fisher’s exact test, and Mann-Whitney U test were conducted to compare the groups. The confidence level was set as 95%, and the level of significance was determined as 0.05.

RESULTS

A total of 60 pharmaceutical companies participated in the survey (54.5% of the 110 companies identified). Some of the companies belong to more than one of the above-mentioned industry associations. Of the participating companies, 37.50% are members of AIFD, 33.75% are members of IEIS, 8.75% are members of TISD, and 20% are also members of additional organizations. Other basic characteristics of the companies are given in Table 1.

With respect to employment, it was found that 101-500 staff were employed with a rate of 38.33%, and a total of 212,677 staff were employed in the pharmaceutical companies that participated in the survey. The total number of products produced by the participating companies was 6,717 (Table 1).

The main product groups for which the companies were the manufacturers or the license-holders were then evaluated. The research found that conventional products were in the first place with 52.38%. In second place were biotechnological products, which were produced at a rate of 26.67%. In the third place were biological products, which had production and licensing rates of 15.24%. It was found that 5.71% of the companies also had products from other groups.

The Mann-Whitney U test was conducted to compare the number of CSR projects and the companies’ characteristics, their profile as national or multinational, and their organizational structure, more specifically, whether the company was structured to publicize its CSR activities (Table 2).

As seen in Table 2, there is no statistically significant difference between the number of CSR projects undertaken by national and multinational companies (p>0.05). However, there is a statistically significant difference between the number of CSR projects undertaken by companies with and without a corporate communications department (p<0.05). Companies with a corporate communications department were found to have a higher number of CSR projects than those without that department.

For the comparison between the number of CSR projects and product groups, Fisher’s exact tests and chi-square analyses were conducted (Table 3).

The research found no statistically significant difference among conventional, biotechnological, and biological medicine producers (p>0.05). Although there was no statistically significant difference, it was determined that conventional medicine producers initiated projects mainly in the fields of health and education and occasionally in other fields (specifically in ethics and business ethics); biotechnological medicine producers initiated projects mainly in the fields of health and education, and occasionally in other fields (specifically in ethics and business ethics). Biological medicine producers mainly project in the fields of health, education, and volunteer work, but did not initiate projects in other fields (ethics and business ethics, informatics) (Table 3).

Companies reported that the number of projects between 2009, 2019 totaled 381. When examining the CSR projects by year, it was found that their number has increased significantly since 2012 (Figure 1).

The year in which the most projects were undertaken was 2018 (20.7% of all projects), and the next highest year was 2017 (16.8% of all projects undertaken). It was determined that at least 1% of the projects were undertaken in 2009. The result of the single-sample chi-square test is presented in Table 4.

There is a statistically significant difference in the number of CSR projects undertaken by the companies each year (p<0.05). The number of CSR projects undertaken by companies increased until 2018 (Table 4).

Some of the projects concern more than one area, and the distribution of the project areas has been examined over the years. During the evaluation process, due to the small number of projects between 2009 and 2012, the data from these years was combined in order to make a statistical analysis. The 381 projects cover a total of 530 fields of activity. Table 5 presents the results of the Chi-square test and Fisher’s exact test regarding CSR project areas over the years.

In Table 5, it can be observed that there is a statistically significant difference in terms of culture and arts (p<0.05). However, there is no statistically significant difference in terms of other fields of CSR projects (health, education, environmental issues, culture and arts, sports, philanthropy, science, other) by years (p>0.05).

Table 6 presents the results of the chi-square test and Fisher’s exact test, revealing the difference between methods used to announce their CSR projects and companies’ profiles, as being either national or multinational.

There is a statistically significant difference between the number of press releases and whether the companies are national or multinational (p<0.05). We determined that 65.5% of multinational companies made press releases about CSR projects (Table 6). The companies’ profiles as either national or multinational show no statistically significant difference between not making announcements and announcing CSR projects by methods other than press releases (by sustainability reports, annual reports, or internet/social media) (p>0.05).

DISCUSSION

The fact that CSR campaigns are more visible, and their participation in society, has effects on the image of the company.¹⁷ At this point, proper planning of CSR strategies is significant for the PRs of pharmaceutical companies.¹⁸ Within the scope of this study, this study aimed to determine the current situation of CSRs in Türkiye, CSRs carried out by pharmaceutical companies that have an important place in society.

In Türkiye, CSR projects, which started later than in many other countries, have developed in recent years. In this study, it was determined that 83.33% of the survey respondents from the pharmaceutical companies operating in Türkiye undertook a CSR project between 2009 and 2019.

The main CSR project area undertaken by pharmaceutical companies operating in Türkiye was philanthropy, followed by health and education fields, while the fewest projects were undertaken in the field of sports. It is thought that Türkiye’s socio-cultural structure and social values explain why philanthropic areas are predominant among its companies’ CSR projects. Thus, it was found that many health-related projects but relatively few sports-related projects were undertaken. These results agree with those of similar studies in the literature.^19-25 When examining the literature on corporate CSR projects in different sectors of Türkiye, with particular attention to philanthropy, it may be observed that the most common CSR project areas are health, environment, education, culture, arts, and sports.^19-25

Every country’s pharmaceutical industry is highly affected by regulatory requirements, government policies, social and political pressures, and economic constraints. It is therefore expected that characteristics of CSR projects, including the areas in which they are predominantly undertaken, will vary according to the pharmaceutical companies’ countries of origin, specifically the cultures, political, and regulatory environments of those countries.¹⁰ In this study, a statistically significant difference was found between national and multinational companies concerning the number of CSR projects they undertook. It is evident from the available literature that some studies found differences in CSR practices related to companies’ profiles as either national or multinational, whereas others found no remarkable differences.¹⁰^,^26-30 In research conducted on companies representing European Union countries, Japan, the USA, and Canada in order to determine the CSR approaches of pharmaceutical companies in Canada, no difference was determined in terms of origin country. In a study conducted on the pharmaceutical industry in China, it was determined that foreign-owned pharmaceutical companies generally had better CSR; whereas privately-owned Chinese pharmaceutical companies participated in CSR at the lowest levels.²⁷

This research found a significant difference between CSR activity and company structure. There was a statistically significant difference in the number of CSR projects undertaken by companies that have a corporate communications department as compared to companies without a dedicated corporate communications department. It is known that the world’s leading pharmaceutical companies have communications departments, and that communicating the company’s CSR activities has become those departments’ primary focus.¹³^,^31-33 In the past, companies assigned responsibility for CSR projects to their human resources or legal departments; today, the majority of the world’s top 20 pharmaceutical companies assign these responsibilities to their communications or PRs departments.³¹ Corporate communication units are typically responsible for establishing, implementing, and supervising communication strategies, and they therefore play a key role in broadcasting a company’s CSR activities.³² In the absence of such communication, it is not possible for studies of CSR to obtain the data needed to achieve their goals.³³ In a study conducted on multinational pharmaceutical companies in the USA, it was determined that CSR activities are managed differently: 50% of the companies have a department specifically for CSR, and all of them have a monitoring board or group specifically for that.¹³ In addition, it is necessary to get support from PRs efforts to ensure the balance between the scope of the work and the activities carried out.¹⁵

This study revealed that there has been a noteworthy increase in the number of CSR projects since 2012, with a parallel development of CSR activities in Türkiye. The year in which the greatest number of projects was undertaken by companies was 2018, with a rate of 20.7%. The number of projects in 2019 was lower than in 2018. In this context, it has been observed that the number of newly started projects in 2017 and 2018 is high; however, some of the projects started in these years are continued in the following years as they are continuous projects. For this reason, it was understood that in 2019, the number of newly started projects, in addition to the ongoing projects, lagged behind the previous years. In 2009, it was understood that the fewest projects were undertaken, with only 1% of projects initiated. There is a statistically significant difference in the number of CSR projects undertaken by companies across different years. In this context, it is an inference supported by the literature pertaining to recent CSR efforts by international institutions and organizations.¹¹^,^34-37 CSR studies have developed over the years. At the Lisbon Summit held in 2000, globalization and technological developments were discussed.¹¹ After this summit, the Green Paper prepared by the Council of Europe was published in 2001. Since that date, the European Commission has issued documents setting forth basic policies and has continued to support the CSR agenda through publications designed to raise awareness.¹¹^,³⁵^,³⁶ In 2000, the “Global Principles Agreement” was published by the United Nations with recommendations entitled, “Multinational Enterprises General Principles” by the Organisation for Economic Cooperation and Development; and in 2003, “Millennium Development Goals” were formulated within the scope of the United Nations Development Programme.³⁷ International standards and declarations published by international institutions in the field of CSR are guiding and encouraging companies to engage in CSR practices.³⁴ Over the years, this issue has gained importance internationally. More systematic progress in this area can be achieved by bringing together industry representatives and authorities to determine roadmaps, considering the differences in practices in the pharmaceutical industry discussed in the results of this study.

CSR projects need to be publicized; however. This study found that multinational companies issued press releases about CSR projects at a rate of 65.5%. The literature contains several studies on the methods of announcing CSR projects.¹⁰^,^38-42 Following CSR activities on websites and social media is critical in terms of PRs.¹⁵ In a study examining CSR communications on companies’ websites, it was found that Turkish companies use their websites for that purpose less frequently than do companies of Western countries, including the UK and the USA.³⁸ Another study conducted on multinational pharmaceutical companies in the USA found that those companies announced their CSR projects on their websites.¹³ However, local pharmaceutical companies in Slovakia had communication problems due to insufficient use of communication channels, whereas large foreign pharmaceutical companies had far better CSR communication.³⁹

Study limitations

The findings of this study were based on self-reporting by the companies. Some questions were left unanswered for reasons related to a given company’s organizational or management policies. In particular, questions about the budget and cost were left unanswered because the release of such information was prohibited by the company’s confidentiality policies. Therefore, questions about the budget could not be evaluated.

In addition, detailed answers were not given to questions that required comprehensive information about some projects, because detailed records were not kept of the CSR projects in the past years. For this reason, the analyses were made with limited quantitative data.

In this study, evaluating the reports and answering the questions did not allow for a determination of whether the participants’ evaluations were subjective. This situation can be considered a source of bias. The findings may have been biased due to the participants’ subjective evaluations and recall biases. Additionally, since the study only evaluated responses from participants from the companies that voluntarily agreed to participate, this may have limited the generalizability of the data.

CONCLUSION

Companies in the pharmaceutical sector are manifesting interest in CSR and engaging in CSR projects, as are companies in other sectors, regardless of distinctions. However, it is understood that certain standards should be met, in line with the answers given by the companies, in terms of carrying out and announcing the activities.

Within the scope of this study, we concluded that to develop the Turkish Pharmaceutical Industry’s CSR to disseminate information and increase awareness of CSR practices, university courses could be effective. In particular, we recommend expanding the undergraduate curriculum for occupational groups working in the pharmaceutical industry by adding courses on CSR’s theoretical aspects and their practical applications. This addition to undergraduate education would prepare students to contribute to the development of existing programs. The curriculum—like all other activities of the pharmaceutical industry—would need to be developed by international standards and guidelines in the field of CSR. It will also be important to integrate the understanding of CSR into companies’ management strateg. Within the framework of transparency, measurability, accountability, and sustainability principles, it should be possible to systematically undertake CSR projects and report on these activities within the scope of long-term strategic goals. Legal regulations governing CSR projects will also be important in this respect. Scientific activities held at the academic level, including articles, congresses, workshops, panels, and symposia, will complement the awareness of CSR through the work of NGOs, public institutions, and the public itself. We recommend emphasizing that CSR projects undertaken within the pharmaceutical sector make an important social contribution. Furthermore, these projects are important for achieving the Sustainable Development Goals. In this regard, to reveal the relationships between CSR, corporate practices, and sustainability efforts in the pharmaceutical sector, future studies should be planned across different contexts and stakeholder perspectives.

Ethics

Ethics Committee Approval: This study was approved by the Ethics Committee of Hacettepe University (approval number: E.563072, dated: 25.04.2019).

Informed Consent: Participants provided informed consent, as the survey introduction explained the study and clarified that participation was voluntary.

Authorship Contributions

Concept: S.A.S., B.S.Ş., S.Y., Design: S.A.S., B.S.Ş., S.Y., Data Collection or Processing: S.A.S., Analysis or Interpretation: S.A.S., B.S.Ş., Literature Search: S.A.S., B.S.Ş., S.Y., Writing: S.A.S., B.S.Ş., S.Y.

Conflict of Interest: The authors declare no conflicts of interest.

Financial Disclosure: The authors declared that this study received no financial support.

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