Just being socially responsible for the sake of it (and not for profits) can create immense discomfort to companies and the industry as a whole. Merck, which strove to follow its own lofty standards, is finding out the true cost of being socially responsible. The company is facing billions of damage payment to patients, who have suffered heart problems as a side effect of using its drug Vioxx. We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear. Merck & Co. is an iconic American pharma company, widely respected for its ethical business practices.
When George Merck, an erstwhile chairman made the above statement, terms like corporate social responsibility were not a part of the business lexicon. Probably they were not needed, too. Like all true visionaries, George Merck looked at business as a tool to improve society. Times have changed. As the baton of leadership passes from the founder to a professional manager, shareholders become greedier for short-term results and practicing managers start resorting to dubious practices. Social responsibility also became a buzzword. Its increasing importance is partly due to the rise of NGOs and multilateral bodies like the World Bank. Today, Corporate Social Responsibility (CSR) is the credo most companies live by. At least, that is the first impression. |
