Merck and Corporate Social Responsibility
Merck and Corporate Social Responsibility
Corporate Social Responsibility is a form of self regulating by a business to up hold themselves to ethical standards, spirit of the law international norms. This process is designed to hold companies to certain standards and encourage a positive impact through its activities on the environment, employees, communities, stakeholders and consumers. (Social reporting: A reflexive law approach to corporate social responsiveness, 1999).
Corporate Social Responsibility evolved from the term stakeholder first used in the 1960s and 1970s. The term was used to describe on whom the firm’s actions and activities had an impact. Corporate Social Responsibility has evolved as a term used to help a company’s mission and what they stand for. It also helps to define what consumers can expect from the company. It can be looked at as a way that companies will handle moral or ethical issues that arise in a business environment. (Social reporting: A reflexive law approach to corporate social responsiveness, 1999)
In the fall of 2004 Merck & Co., Inc. was at a crossroads; long one of America’s most respected companies it was under severe pressure. Current products were facing patent expiration and intense ‘me too’ competition and it became critical to find faster ways to develop new products without sacrificing any rigor. When one of the core products, VIOXX, was voluntarily removed from the marketplace due to safety concerns the resulting pressures were intense. (Merck and Vioxx: An examination of an ethical decision-making model, 2007) Merck has a long history of good Corporate Social Responsibility. These tactics went a long way when Vioxx was pulled and helped the company deal with the ramifications of such a drastic move.
For a business to take responsibility for its actions, that business must be fully accountable for its actions. As people become more responsible for the environment and their awareness of social issues they will look at corporations to follow suit. (Hartman, L. P., & DesJardins, J. R., 2014). Corporations must foster innovation, communication and social integration in order to promote Corporate Social Responsibility to their own employees and in the markets they live. Merck took responsibility by pulling Vioxx from the market shortly after a study showed the drug was associated with increased heart conditions. (USATODAY.com – How did Vioxx debacle happen?, 2005)
Merck has adopted many approaches to Corporate Social Responsibility one is in the form corporate philanthropy. This form of goodwill can come in many ways such as monetary donations to local and non-local non profits, arts, education, commercial events, and health and welfare. Some companies do not use this monetary based Corporate Social Responsibility because they feel it does not build any sense