Corporate governance and the effects of its policies on Sanofi in Beirut Lebanon

by

ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER # 1: INTRODUCTION6

Background of the Study6

Problem Statement6

Aims and Objective of the Study7

Research Hypothesis8

CHAPTER # 2: LITERATURE REVIEW9

History of Corporate Governance9

Why do companies adopt CSR practices?10

Compliance with regulations or guidelines10

Corporate Governance in Middle East region11

How do companies approach Corporate Social Responsibility?13

Corporate governance affect Sanofi Lebanon13

Theories and models15

Corporate philanthropy, risk management and competitive advantage15

Example16

Shareholder, stakeholder and societal approaches17

Implicit vs. Explicit CSR18

Inward vs. Outward CSR18

Global vs. Local CSR19

CSR activities vary according the different industries20

Different countries or cultures view CSR in different ways22

Why and how do companies communicate their CSR activities?24

Drug development25

Need/or R&D and innovation26

Orphan drugs27

Example28

Systems Thinking Applications28

Example30

Summary31

REFERENCES32

BIBLIOGRAPHY38

CHAPTER # 1: INTRODUCTION

Background of the Study

The pharmaceutical industry is among the most scrutinize industries. From the patient's reliance on the industry for cures, to society's demand for improving access to medicines in developed and developing countries, to pharmaceutical companies adopting "green" environmental policies for cost reduction purposes, and the condemnation of allegedly unethical clinical trials in developing countries, much is happening under the rather young topic of corporate governance activities within the pharmaceutical sector.

The literature is rather abundant in terms of ethics and the pharmaceutical industry (especially in terms of clinical trials, drug development, marketing and pricing etc.), and very rich in terms of Corporate Governance across a wide range of industries. Yet very little is provided on the specific topic of Corporate Governance and the pharmaceutical industry. The aim of this thesis is therefore to specifically address and characterize Corporate Governance in the Sanofi Lebanon, identify its purpose, its commonalities and its differences both within the sector and when comparing with other industries.

Problem Statement

The pharmaceutical industry is, by nature, a sector where the ideas of corporate involvement, responsibility towards patients, ethical behaviour and an overall duty towards society are omnipresent. As David R Brennan, CEO of Astra Zeneca expresses, responsibility is "embedded" in the business and strategy of pharmaceutical companies "because it (is considered) critical to continued success". The pharmaceutical industry has for decades been developing, and continues to bring, cures to diseases and affections worldwide.

The objective is really to understand if the Sanofi Lebanon is embracing corporate governance as a business trend, like many other industries, and/or because it is driven by the sheer nature of the environment that the industry and the companies evolve in. This thesis will assess if practice joins theory in the pharmaceutical industry, i.e. if the corporate governance practices of the sector match the literature models and findings that have been developed ...