1. Role of Business in Society
The role of leading biotechnology company CSL Limited in society is gleaned through an analysis of what the organisation has said of their mission and vision and the extent to which they fulfil this. CSL is dominantly oriented towards social entrepreneurship. Social entrepreneurs espouse the role of change agents by perceiving an opportunity, creating a mission that is socially (and concurrently privately) valuable, and regularly undertaking endeavours to serve that mission (Bacq & Kickul, 2012). They also embed corporate social responsibility into the framework of the organisation (Mahmoud, Blankson & Hinson, 2017). They are identified by qualities of sociality, innovation and market orientation.
From the outset, CSL has an overtly social mission, assuring, “delivering on promises is what we do at CSL”, and that “with the right training, staff can turn noble corporate values into real world results…and benefit profoundly from the process” (CSL, n.d., Home). As a leader in the biotechnology industry, CSL seeks to create, develop and produce innovative biotherapies and vaccines to serve patients with chronic diseases and other stakeholders also (CSL, n.d., Company Statement). The values which drive CSL and that are considered “fundamental” to the success of its mission are: “(1) patient focus, (2) innovation, (3) integrity, (4) collaboration and (5) superior performance” (CSL, n.d., Our Company).
Besides their immeasurable medical and patient oriented contributions, CSL is held accountable to its mission by the Global Community Contributions Policy and their corporate responsibility, quantified by contributions to the economic, social and environmental well-being of communities (CSL, n.d., Our Community). This is shown through their pledging of $500 000 AUD to aid with Australian bushfires and $150 000 USD to support relief after Hurricane Harvey (CSL, n.d., Local Communities).
CSL is considered a leader in medical innovation (Andrews & Wood, 2013) and has remained at the foreground of biotechnical research since its foundation (Crowe, 2009). Historically, CSL engineered vaccines against influenza, polio and other infectious diseases while also providing crucial advances in research involving insulin and penicillin and plasma protein and recombinant therapies (CSL, 2015, Celebrating 100 Years). Today, research and development (R&D) underpins the growth of CSL, seen through a US$832 million investment in it (CSL, 2018-19, Annual Report). This involves many multi-million-dollar contributions to biomedical research through charitable donations to help aid and accelerate research and affiliating with institutions to facilitate collaboration and development of pioneering treatments for patients (CSL, 2018-19, Annual Report). In the 2018-19 Annual Report CSL listed their corporate social responsibility performance was above the average when compared to its sector, also being recognised as ‘Most Charitable’ by the Philadelphia Inquirer and ranked in the top 100 of most diverse and inclusive organisations globally and (CSL, 2018-19, Annual Report; Durkin; 2019; Reuters, 2018).
Thus, CSL functions dominantly as a social entrepreneur within society. CSL is a fundamental driver of change through its consistent development of innovative solutions to a variety of social problems through medical advancements, R&D and philanthropic activities.
2. Strategy Evaluation
A PESTLE analysis is a value tool used to analyse the macroenvironment in which a business operates, which can understandably have major impacts for decision making aspects of the business (Manley, Foot & Davis, 2019). By conducting such an analysis, a business can identify key drivers for change; furthering the businesses growth and development in a rapidly changing environment (Law, 2016). The following PESTLE analysis evaluates factors within the macro environment influencing CSL within a global context.
2.1 Political
COVID-19 Pandemic
The political sphere surrounding a business would inevitably impact greatly on it, as this encompasses the effect that governmental decisions and regulations can have on a business. The recent outbreak of the global pandemic caused by virus COVID-19 has resulted in an increase in state power, seeing new governmental restrictions and laws implemented to combat the spread. The introduction of containment measures such as social distancing and social isolation could result in reduced volumes of plasma being collected as people are electing, or being forced, to stay at home (Brocklehurst, 2020).
US-China Trade War
The trade war between the US and China has led to additional tariffs being imposed on each other’s goods, an action that has reverberated throughout the global economy (Farrer, 2019). CSL expressed its desire to expand its company into China with the hope of avoiding crossfire from its trade war with the US, officially transitioning from a third-party distributor to its own direct distribution model under a Good Supply Practice (GSP) (Hatch, 2019; Jellimkek, 2019). The trade war between China and US will have long reaching impacts for the entire international trading system, and could result in disputes over currency and devaluation, heightened unemployment and possible reactionary effects (BBC, 2019). It could, perhaps, be beneficial to European and Australian exports.
2.2 Economic
Restricted growth leading to recession
The UN have repeatedly cautioned the possibly of a global recession “of record dimensions” after weak recorded growth in both developing and developed nations, with 2019 being the weakest expansion period experienced in a decade (Elliot, 2019; Eccles, 2020). An upcoming recession, inevitably, would impact on CSL and their global business decisions through possibility of trade wars, currency fluctuations and interest rates. Immediate policy challenges are being posed by the outbreak of the global pandemic, exacerbated by soaring market volatility and a fractured multilateral system (Eccles, 2020). A report from Unclad reported that global growth will decrease from 3% in 2018 to 2.3% this year, being the biggest contraction since the global financial crisis in 2008-9. Central banks including the US Federal Reserve and European Central Bank have slashed interest rates in an attempt to stimulate the economy (Matthews, 2020).
2.3 Social
Social attitudes, behaviours and trends are inextricably linked to decisions made by a business in an international context (Sanchez Jimenez, 2015). The social perspective of one’s competitive environment must be understood for not just operational but marketing purposes, as a comprehension of society and the demographic a business is operating in is pivotal to understanding their needs and values as a consumer. The recent outbreak of the coronavirus pandemic has led to widespread hysteria amongst healthcare consumers. The main demographic for CSL is those who suffer or could suffer from serious and chronic health diseases that require treatment or therapy.
Outbreak of global pandemic caused by COVID-19
The emergence of the global pandemic caused by coronavirus has been a monumental world event. Governmental restrictions and guidelines such as self-isolation and distancing to combat the spread of COVID-19 have led to a decrease in individual sovereignty and an upsurge in state power and control. Such restrictions and guidelines have halted worldwide mobility, damaging the tourism industry and other sectors of the economy. Social media and networking apps have contributed to a growing hysteria in the global community surrounding the virus, which has led to an upsurge in health consciousness and an emphasis on wellbeing. Further, Coronavirus job losses are estimated to total 47 million with a 32% unemployment rate (NBC News, 2020). In terms of CSL’s competitive environment, the surplus of people and lack of job supply means a decrease in labour costs for the organisation.
2.4 Technological
Variables pertaining to the production and development of technology must be considered. CSL is a global leader in biotechnology and pharmaceuticals, and has, historically, been at the forefront of technological innovation. Having invested US$3.3 billion in R&D investments in the last five years, it comes as no surprise that CSL has produced one of the biggest and most effective plasma collection networks (CSL, n.d., Research & Development). CSL is known for its expertise in the area of “plasma fractionation, recombinant DNA technology and cell and gene therapy” to aid in meeting unmet social and medical needs to enhance the treatments in five areas of focus. These areas are immunology and neurology, haematology and thrombosis, cardiovascular and metabolic, respiratory and transplant. The need for plasma proteins worldwide has been increasing over the last decade, driven by immunoglobin use, the rapid ascension of China’s plasma industry and the emergence of new technologies and products (Hotchko & Robert, 2018). However, other competitors are currently unable to keep up with CSLs production of immunoglobin therapies, with CSL challenging competitors to “step up” (Redrup, 2019).
2.5 Legal
For any business to function properly it must abide by legal and structural frameworks that are put in place by institutions that govern the respective industries. Besides the governmental regulations and restrictions that were discussed in Section 2.1, CSL must operate within the confines and restraints that the Food and Drug Administration (FDA) and the Therapeutic Goods Agency (TGA) lay out. Worldwide, pharmaceuticals are subject to extensive market access regulation (Greene, Anderson & Sharfstein, 2016). The FDA and TGA implement heavy restrictions in order to protect and maintain the health and well-being and minimise the risk of complications. The TGA considers the quality, effectiveness, timely availability and safety of new drugs and manages prescription and non-prescription drugs, medical devices, vitamins and nutritional products within its jurisdiction (McEwan, 2007).
2.6 Environmental
In order to analyse CSL’s competitive environment, the environmental perspective must be considered. Environmental factors that could influence business decisions made by CSL include the values of attitudes stakeholders, global and international environmental and ecological issues, and regulations in place. Contemporary concerns of climate change and global warming intensify as time goes on, meaning large businesses and corporations are expected to perform and produce products in a sustainable and ecological way. CSL implemented an Environment, Health, Safety and Sustainability (EHS2) Strategic Plan that certifies it compares to the industry standard of health and safety. Australia further has stringent waste disposal restrictions to protect and preserve the environment and biodiversity of Australia (Australian Government, n.d., Department of Agriculture, Water and the Environment).
Reference List
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- Matthews, D. (2020). The Fed is bringing interest rates to 2008 crisis levels to fight a coronavirus downturn.
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- Redrup, Y. (2019). CSL challenges immunoglobulin competitors to ‘step up’.
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