Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach

Shounak Das; Aditya Sarkar

doi:doi:10.11648/j.ajtab.20230901.12

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Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach

Shounak Das, Aditya Sarkar

Published in American Journal of Theoretical and Applied Business (Volume 9, Issue 1)

Received: 25 November 2022 Accepted: 21 March 2023 Published: 17 May 2023

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Abstract

The ESG model, which stands for Environmental, Social, and Governance, is becoming increasingly important in the pharmaceutical sector. The pharmaceutical industry is under scrutiny from various stakeholders, including customers, investors, and regulatory bodies, to improve their ESG practices. The ESG model is a framework that helps companies assess and report on their performance in these three areas. ESG approach of operation brings stakeholders’ faith in organizational affairs. Indian pharmaceutical companies are facing big challenges in several fronts in meeting ESG principles for balancing social, environmental and economic goals. The balancing of these three goals by following ESG approach of operation will bring sustainability in organizational existence. Several broad areas need serious look-over. Sourcing of raw ingredients, clinical trials and associated costs, product quality and information, product pricing, internal infrastructure robustness and security, organizational culture and disclosure and compliances are areas where pharma companies are confronting ESG principles. In the pharmaceutical sector, the Environmental aspect of the ESG model focuses on reducing the environmental impact of their operations and products, such as reducing carbon emissions, waste management, and water conservation. The Social aspect involves ensuring ethical business practices, such as fair labor practices, supply chain management, and community engagement. Finally, Governance involves ensuring transparency and accountability in decision-making processes, as well as maintaining high ethical standards and preventing corruption. Pharmaceutical companies that implement ESG practices can not only benefit from improved reputations but can also attract investors who prioritize ethical and sustainable investing. Additionally, companies that prioritize ESG practices are better positioned to adapt to changes in the regulatory landscape, such as the increasing focus on sustainability and social responsibility. Overall, the ESG model provides a comprehensive framework for pharmaceutical companies to assess their environmental, social, and governance practices and ensure they are operating ethically and sustainably, which can lead to long-term success and positive impact on society.

Published in	American Journal of Theoretical and Applied Business (Volume 9, Issue 1)
DOI	10.11648/j.ajtab.20230901.12
Page(s)	17-20
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

ESG, Pharmaceutical Sector, Sustainability, India

References

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[3]	Chaturvedi, U., Sharma, M., Dangayach, G. S., & Sarkar, P. (2017). Evolution and adoption of sustainable practices in the pharmaceutical industry: An overview with an Indian perspective. Journal of cleaner production, 168, 1358-1369.
[4]	Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45-64.
[5]	Bhattacharya, S., & Sharma, D. (2019). Do environment, social and governance performance impact credit ratings: a study from India. International Journal of Ethics and Systems.
[6]	Dalal, K. K., & Thaker, N. (2019). ESG and corporate financial performance: A panel study of Indian companies. IUP Journal of Corporate Governance, 18 (1), 44-59.
[7]	Hill, J. (2020). Environmental, Social, and Governance (ESG) investing: A balanced analysis of the theory and practice of a sustainable portfolio. Academic Press.
[8]	Rajesh, R. (2020). Exploring the sustainability performances of firms using environmental, social, and governance scores. Journal of Cleaner Production, 247, 119600.
[9]	Freiberg, D., Rogers, J., & Serafeim, G. (2020). How ESG issues become financially material to corporations and their investors. Harvard Business School Accounting & Management Unit Working Paper, (20-056).
[10]	Paolone, F., Cucari, N., Wu, J., & Tiscini, R. (2021). How do ESG pillars impact firms’ marketing performance? A configurational analysis in the pharmaceutical sector. Journal of Business & Industrial Marketing.
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APA Style

Shounak Das, Aditya Sarkar. (2023). Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach. American Journal of Theoretical and Applied Business, 9(1), 17-20. https://doi.org/10.11648/j.ajtab.20230901.12

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ACS Style

Shounak Das; Aditya Sarkar. Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach. Am. J. Theor. Appl. Bus. 2023, 9(1), 17-20. doi: 10.11648/j.ajtab.20230901.12

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AMA Style

Shounak Das, Aditya Sarkar. Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach. Am J Theor Appl Bus. 2023;9(1):17-20. doi: 10.11648/j.ajtab.20230901.12

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@article{10.11648/j.ajtab.20230901.12,
  author = {Shounak Das and Aditya Sarkar},
  title = {Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {9},
  number = {1},
  pages = {17-20},
  doi = {10.11648/j.ajtab.20230901.12},
  url = {https://doi.org/10.11648/j.ajtab.20230901.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20230901.12},
  abstract = {The ESG model, which stands for Environmental, Social, and Governance, is becoming increasingly important in the pharmaceutical sector. The pharmaceutical industry is under scrutiny from various stakeholders, including customers, investors, and regulatory bodies, to improve their ESG practices. The ESG model is a framework that helps companies assess and report on their performance in these three areas. ESG approach of operation brings stakeholders’ faith in organizational affairs. Indian pharmaceutical companies are facing big challenges in several fronts in meeting ESG principles for balancing social, environmental and economic goals. The balancing of these three goals by following ESG approach of operation will bring sustainability in organizational existence. Several broad areas need serious look-over. Sourcing of raw ingredients, clinical trials and associated costs, product quality and information, product pricing, internal infrastructure robustness and security, organizational culture and disclosure and compliances are areas where pharma companies are confronting ESG principles. In the pharmaceutical sector, the Environmental aspect of the ESG model focuses on reducing the environmental impact of their operations and products, such as reducing carbon emissions, waste management, and water conservation. The Social aspect involves ensuring ethical business practices, such as fair labor practices, supply chain management, and community engagement. Finally, Governance involves ensuring transparency and accountability in decision-making processes, as well as maintaining high ethical standards and preventing corruption. Pharmaceutical companies that implement ESG practices can not only benefit from improved reputations but can also attract investors who prioritize ethical and sustainable investing. Additionally, companies that prioritize ESG practices are better positioned to adapt to changes in the regulatory landscape, such as the increasing focus on sustainability and social responsibility. Overall, the ESG model provides a comprehensive framework for pharmaceutical companies to assess their environmental, social, and governance practices and ensure they are operating ethically and sustainably, which can lead to long-term success and positive impact on society.},
 year = {2023}
}

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TY  - JOUR
T1  - Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach
AU  - Shounak Das
AU  - Aditya Sarkar
Y1  - 2023/05/17
PY  - 2023
N1  - https://doi.org/10.11648/j.ajtab.20230901.12
DO  - 10.11648/j.ajtab.20230901.12
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 17
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PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20230901.12
AB  - The ESG model, which stands for Environmental, Social, and Governance, is becoming increasingly important in the pharmaceutical sector. The pharmaceutical industry is under scrutiny from various stakeholders, including customers, investors, and regulatory bodies, to improve their ESG practices. The ESG model is a framework that helps companies assess and report on their performance in these three areas. ESG approach of operation brings stakeholders’ faith in organizational affairs. Indian pharmaceutical companies are facing big challenges in several fronts in meeting ESG principles for balancing social, environmental and economic goals. The balancing of these three goals by following ESG approach of operation will bring sustainability in organizational existence. Several broad areas need serious look-over. Sourcing of raw ingredients, clinical trials and associated costs, product quality and information, product pricing, internal infrastructure robustness and security, organizational culture and disclosure and compliances are areas where pharma companies are confronting ESG principles. In the pharmaceutical sector, the Environmental aspect of the ESG model focuses on reducing the environmental impact of their operations and products, such as reducing carbon emissions, waste management, and water conservation. The Social aspect involves ensuring ethical business practices, such as fair labor practices, supply chain management, and community engagement. Finally, Governance involves ensuring transparency and accountability in decision-making processes, as well as maintaining high ethical standards and preventing corruption. Pharmaceutical companies that implement ESG practices can not only benefit from improved reputations but can also attract investors who prioritize ethical and sustainable investing. Additionally, companies that prioritize ESG practices are better positioned to adapt to changes in the regulatory landscape, such as the increasing focus on sustainability and social responsibility. Overall, the ESG model provides a comprehensive framework for pharmaceutical companies to assess their environmental, social, and governance practices and ensure they are operating ethically and sustainably, which can lead to long-term success and positive impact on society.
VL  - 9
IS  - 1
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Author Information

Shounak Das

Department of Humanities, Faculty of Humanities, Kaliachak Government Polytechnic, WB, India
Aditya Sarkar

Department of Commerce, Cooch Behar Panchanan Barma University, WB, India

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APA Style

Shounak Das, Aditya Sarkar. (2023). Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach. American Journal of Theoretical and Applied Business, 9(1), 17-20. https://doi.org/10.11648/j.ajtab.20230901.12

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ACS Style

Shounak Das; Aditya Sarkar. Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach. Am. J. Theor. Appl. Bus. 2023, 9(1), 17-20. doi: 10.11648/j.ajtab.20230901.12

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AMA Style

Shounak Das, Aditya Sarkar. Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach. Am J Theor Appl Bus. 2023;9(1):17-20. doi: 10.11648/j.ajtab.20230901.12

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@article{10.11648/j.ajtab.20230901.12,
  author = {Shounak Das and Aditya Sarkar},
  title = {Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {9},
  number = {1},
  pages = {17-20},
  doi = {10.11648/j.ajtab.20230901.12},
  url = {https://doi.org/10.11648/j.ajtab.20230901.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20230901.12},
  abstract = {The ESG model, which stands for Environmental, Social, and Governance, is becoming increasingly important in the pharmaceutical sector. The pharmaceutical industry is under scrutiny from various stakeholders, including customers, investors, and regulatory bodies, to improve their ESG practices. The ESG model is a framework that helps companies assess and report on their performance in these three areas. ESG approach of operation brings stakeholders’ faith in organizational affairs. Indian pharmaceutical companies are facing big challenges in several fronts in meeting ESG principles for balancing social, environmental and economic goals. The balancing of these three goals by following ESG approach of operation will bring sustainability in organizational existence. Several broad areas need serious look-over. Sourcing of raw ingredients, clinical trials and associated costs, product quality and information, product pricing, internal infrastructure robustness and security, organizational culture and disclosure and compliances are areas where pharma companies are confronting ESG principles. In the pharmaceutical sector, the Environmental aspect of the ESG model focuses on reducing the environmental impact of their operations and products, such as reducing carbon emissions, waste management, and water conservation. The Social aspect involves ensuring ethical business practices, such as fair labor practices, supply chain management, and community engagement. Finally, Governance involves ensuring transparency and accountability in decision-making processes, as well as maintaining high ethical standards and preventing corruption. Pharmaceutical companies that implement ESG practices can not only benefit from improved reputations but can also attract investors who prioritize ethical and sustainable investing. Additionally, companies that prioritize ESG practices are better positioned to adapt to changes in the regulatory landscape, such as the increasing focus on sustainability and social responsibility. Overall, the ESG model provides a comprehensive framework for pharmaceutical companies to assess their environmental, social, and governance practices and ensure they are operating ethically and sustainably, which can lead to long-term success and positive impact on society.},
 year = {2023}
}

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TY  - JOUR
T1  - Understanding the Factors Promoting Sustainability in the Indian Pharmaceutical Sector Through ESG Approach
AU  - Shounak Das
AU  - Aditya Sarkar
Y1  - 2023/05/17
PY  - 2023
N1  - https://doi.org/10.11648/j.ajtab.20230901.12
DO  - 10.11648/j.ajtab.20230901.12
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 17
EP  - 20
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20230901.12
AB  - The ESG model, which stands for Environmental, Social, and Governance, is becoming increasingly important in the pharmaceutical sector. The pharmaceutical industry is under scrutiny from various stakeholders, including customers, investors, and regulatory bodies, to improve their ESG practices. The ESG model is a framework that helps companies assess and report on their performance in these three areas. ESG approach of operation brings stakeholders’ faith in organizational affairs. Indian pharmaceutical companies are facing big challenges in several fronts in meeting ESG principles for balancing social, environmental and economic goals. The balancing of these three goals by following ESG approach of operation will bring sustainability in organizational existence. Several broad areas need serious look-over. Sourcing of raw ingredients, clinical trials and associated costs, product quality and information, product pricing, internal infrastructure robustness and security, organizational culture and disclosure and compliances are areas where pharma companies are confronting ESG principles. In the pharmaceutical sector, the Environmental aspect of the ESG model focuses on reducing the environmental impact of their operations and products, such as reducing carbon emissions, waste management, and water conservation. The Social aspect involves ensuring ethical business practices, such as fair labor practices, supply chain management, and community engagement. Finally, Governance involves ensuring transparency and accountability in decision-making processes, as well as maintaining high ethical standards and preventing corruption. Pharmaceutical companies that implement ESG practices can not only benefit from improved reputations but can also attract investors who prioritize ethical and sustainable investing. Additionally, companies that prioritize ESG practices are better positioned to adapt to changes in the regulatory landscape, such as the increasing focus on sustainability and social responsibility. Overall, the ESG model provides a comprehensive framework for pharmaceutical companies to assess their environmental, social, and governance practices and ensure they are operating ethically and sustainably, which can lead to long-term success and positive impact on society.
VL  - 9
IS  - 1
ER  -

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