HEALTH CARE AND GREEN ENVIRONMENT

Executive Summary

In the healthcare industry, achieving zero emissions in the health sector as shown by GSK has a substantial impact on savings and productivity. GSK has a strong commitment in controlling pollution because of its dedication to sustainability, and consistency in global objectives related to climate change. Concerning healthcare, this study focuses in the operational and financial aspects of GSK’s transition to emission-free operations. GSK’s commitment for attaining zero emissions is measured according to ecological issues.

Though there are initial expenses that are associated with the change, improved operational efficiency, compliance with regulations, and societal effect for a successful acheivement of long-term advantages. This study, which will be making the use of PESTLE framework, analyses the effect on expenses and productivity in order to provide an understanding of the more general contextual elements affecting GSK’s sustainability journey.

Introduction

The implementation of Environmental, Social, and Governance (ESG) factors into business plans has become important for GSK , including biotech, pharmaceutical, and healthcare. ESG standards are necessary in evaluating an organization’s sustainability and integrity because of the fundamental shift in business operations that has been brought about by increased worldwide awareness of social injustice, climate change, and corporate responsibility in recent years (Saïd, 2019). The ESG viewpoint is used in the pharmaceutical business to solve problems including medicine cost, accessibility, and moral conduct in clinical trials. These factors are essential to preserving public confidence and providing healthcare for a variety of demographics. Health care sector depends on social responsibility and its impact on the environment. Companies in the health care sector can maximise their environmental impact, sustainably, manage healthcare waste, and maintain a fair access to high-quality healthcare services by following the guidelines set forth by ESG (Rashmi, 2019). In this study the chosen company is GlaxoSmith Kline (GSK) a multinational pharmaceutical company with its headquarter in London, UK.

PESTLE Analysis

PESTLE offers an in-depth model for examining the effects of this change by considering Political, Economic, Sociocultural, Technological, Legal, and Environmental aspects. The PESTLE analysis for GSK is as follows

Political Factors

GSK’s commitment to zero emissions is driven by political initiatives such as global climate agreements and local laws for environmnetAccording to (Halim and Adhitya, 2019) political stability contributes to efficient regulatory supervision in terms of governance. GSK’s dedication to high-level rules of governance guarantees respect to laws in every applicable jurisdictions.

Economic Factors

Achieving zero emissions will cost funds firstly due to capital expenditures. The early implementation of renewable energy sources and technology that is energy-efficient by GSK may result in higher manufacturing costs GSK’s follows good governance procedures that provides a transparent financial reporting and moral financial management. GSK is also able to make strategic economic decisions that are consistent with its financial sustainability over the long run due to effective governance systems (Ji, 2021).

Social Factor

GSK’s sustainability goal is influenced by changing the preferences and attitudes in the society especially for creating a greater awareness of environmental challenges. Customers have also begun to favour businesses who are dedicated to controlling pollution. In addition for meeting social expectations, GSK’s zero emissions approach improves consumer trust and brand reputation. A socially conscious consumer base responds well to sustainability messaging, which boosts market competitiveness and promote a lasting brand loyalty. With its competitive advantage, it can find new opportunities in the market. When combined, these elements have the potential to significantly affect GSK Consumer Healthcare’s sales (Saurav, 2018).

Technological Factors

Reaching zero emissions depends heavily on technological developments. GSK’s technological advancement in the industry is demonstrated by its investment in state-of-the-art systems including eco-friendly production methods and renewable energy systems. GSK positions itself as a reliable healthcare technology partner by combining innovation with ethical considerations by establishing governance into technical decisions (Vallati and Grassi, 2019).

Legal Factors

Due of its effects on the environment, the healthcare industry is becoming subject to legal scrutiny. GSK is positioned to be an active participant in complying to both existing and future environmental regulations because of the company’s drive to reaching zero emissions. The company follows legal rule that is favorable in responsible pharmaceutical development and distribution by working together with controlling agencies, meet the terms with intellectual property rules, and engaging in transparent legal practices (Theurl and Meyer, 2017).

Environmental Factors

GSK links its activities with campaings internationally for the purpose of addressing climate change and ways to prevent degradation of the environment by setting environmental targets, tracking progress and implementing ecologically responsible practices (Tukdeo et al, 2016).

Porter’s Five Forces

Supplier Power

Due to specialised materials, there is a moderate amount of supplier power. However, GSK focusing on ESG may promote long-term connections, reducing supply chain risks.

Buyer Power

The commitment of GSK in ESG can improve reputation and impact loyalty as healthcare consumers look for ethical and reasonably priced medications (Thorley and Fulda, 2020).

Competitive Rivalry

Pharmaceuticals are a highly competitive industry. GSK’s environmentally friendly practices can set it apart and impact market share. Maintaining a competitive edge requires ethical behaviour (Tripathi et al, 2019).

Threat of Substitutes

In the case of pharmaceuticals, alternatives provide little threat. GSK’s focus on ESG principles becomes a key advantage for its products, making potential alternatives less appealing to consumers (Datta, 2018).

Threat of New Entrants

GSK may experience a moderate challenge from new competitors. High capital needs and strict regulations may become obstacles, but as the health care sector changes, new companies may be drawn in and the competition may arise.

Sustainability Reports

As part of its continuing sustainability efforts, GlaxoSmithKline (GSK) has reduced carbon emissions by 25% and disposed of no garbage in landfills. GSK is committed to improving health while reducing its negative effects on the environment (Lang and Hui, 2021).

Emissions Reduction in the Supply Chain

GSK works for reducing emissions when implementing its supply chain by working on sustainable practices into place and encourages partner cooperation. This pledge encourages a more environmentally friendly and conscientious supply chain, which is in line with GSK’s larger sustainability goals (Puente Gómez, 2020).

Energy Optimization

GSK focuses on energy optimization through the use of advanced technologies and sustainable methods. GSK lowers its carbon footprint by using energy-efficient procedures and utilising renewable energy sources. This strategic focus ensures a responsible and resilient approach to energy usage by improving operational efficiency and aligning with environmental sustainability goals.

Waste Management

Waste management is an important concern for GSK, and the company uses complete processes for reducing, recycling and disposing off trash in the process of manufacturing and supply chain. GSK’s commitment to sustainable development and conscientious corporate citizenship is demonstrated by their commitment to efficient waste management (Rizhamadze, 2020).

Partnerships for Environmental Sustainability

GSK works in innovative partnerships for environmental sustainability and works with many stakeholders and business entities to solve global health issues. GSK is dedicated in environmental sustainability and improving the health of society. Through collaborative efforts, the company pushes for eco-friendly products, advances sustainable healthcare solutions, and supports responsible practices (Forkmann et al, 2022).

Cost and Efficiency Impact

Investments in Eco-Friendly Technology

GSK’s investments in environmentally friendly technology offer long-term rewards but come at an early expense for sustainable practices. Incorporating sustainable practices, energy-efficient solutions, and renewable energy sources improves operational effectiveness, lessens environmental impact, and is consistent with GSK’s environmental duty. These actions end up resulting in financial savings and a smaller environmental footprint (Saïd et al, 2019).

Supply Chain Logistics Alterations

Reducing expenses and environmental effect can be achieved by streamlining transportation, improving inventory control, and implementing sustainable practices. GSK’s dedication to these modifications ensures a more effective and environmentally sustainable supply chain, in line with their corporate responsibility objectives (Gomez-Sanchez, 2021).

Manufacturing Process Changes

Sustainability and economic effectiveness are given emphasis in GSK’s planned changes in the manufacturing process. GSK seeks to reduce its environmental effect while cutting operational costs through the implementation of eco-friendly technology, resource optimisation, and simplified production procedures.

Recommendations

Leveraging Strategic Capabilities

To gain a competitive edge, the company uses strategic capabilities and core competencies is recommended. GSK should develop flexibility and allow its framework for adjusting in changing conditions. By following these steps, the company maintains not only its capacity for adaptability but puts itself in a position in taking advantage of opportunities when they come (Rizhamadze, 2020).

Cultural Transformation

It is believed that cultivating a shift in culture that prioritises creativity, teamwork, and flexibility. The company can increase employee engagement, creativity, and resilience by fostering an innovative and inclusive culture, which will provide the groundwork for long-term success and organisational greatness. In addition to this, GSK needs to think about including training and governance campaigns within its organisational structure (Saurav, 2018).

Supply Chain Optimization

In addition to increasing operational effectiveness, streamlining procedures, increasing transparency, and adopting sustainable practices will help save costs and promote environmental responsibility, all of which are in line with our commitment to corporate sustainability (Halim and Adhitya, 2019).

Technological Innovation

Using innovative methods will improve productivity, improve product development, and position us as leaders in the field. GSK can provide value to our stakeholders and maintain our competitive edge in a market that is changing quickly by investing in digital transformation and cutting-edge technologies.

Regulatory Compliance

It is important to understand international laws to assure moral behaviour in companies, fosters confidence among those involved, and reduces legal dangers. It is proposed that GSK take an active role when sending information regarding governance practices to relevant parties (Rizhamadze, 2020). This include stakeholders as regulators, workers, investors, and the general public.

Conclusion

In conclusion, the study of GlaxoSmithKline (GSK) a health care company specializing in pharmauticals the complete PESTLE layout has been explained for what the company can do to minimize pollution and work on environmental friendly practices. It is further improved by including a range of governance considerations inside each element. The company’s dedication for a responsible business practice shows up in its integration of governance concepts throughout political, economic, sociocultural, technological, legal, and environmental dimensions. Furthermore, the analysis points out the transformative power of governance that is beyond regulatory compliance. GSK focuses on management , encouraging creativity, adaptability, and long-term viability.

References

Datta, S., 2018. An endogenous explanation of growth: direct-to-consumer stem cell therapies in PR China, India and the USA. Regenerative Medicine, 13(05), pp.559-579.

https://www.futuremedicine.com/doi/abs/10.2217/rme-2017-0144

Halim, I., Ang, P. and Adhitya, A., 2019. A decision support framework and system for design of sustainable pharmaceutical supply chain network. Clean Technologies and Environmental Policy, 21, pp.431-446.

https://link.springer.com/article/10.1007/s10098-018-1646-8

Ji, X., 2021. Equity research: GlaxoSmithKline overview and valuation (Doctoral dissertation).

https://run.unl.pt/handle/10362/122734

Rashmi, R., 2019. Corporate Social Responsibility of Pharmaceutical Industry Towards Access to Medicine: A Case Study of GlaxoSmithKline. In Corporate Social Responsibility: Concepts, Methodologies, Tools, and Applications (pp. 793-832). IGI Global.

https://www.igi-global.com/chapter/corporate-social-responsibility-of-pharmaceutical-industry-towards-access-to-medicine/206989

Rizhamadze, K., 2020. Analyzing Business Model, Narrative and Numbers of GSK (Glaxosmithkline). Eurasian Journal of Social Sciences, 8(1), pp.35-41.

https://www.researchgate.net/profile/Ketevan-Rizhamadze/publication/340562982_ANALYZING_BUSINESS_MODEL_NARRATIVE_AND_NUMBERS_OF_GSK_GLAXOSMITHKLINE/links/5e9ee1704585150839eff6c3/ANALYZING-BUSINESS-MODEL-NARRATIVE-AND-NUMBERS-OF-GSK-GLAXOSMITHKLINE.pdf

Saïd, K., Sevic, Z. and Phillips, I.L., 2019. The challenges of addressing stakeholders’ expectations through corporate non-market strategies in emergent countries: The GlaxoSmithKline (GSK) case. critical perspectives on international business, 15(1), pp.87-106.

https://www.emerald.com/insight/content/doi/10.1108/cpoib-03-2018-0027/full/html

Gomez-Sanchez, R., Besley, S., Quayle, J., Green, J., Warren-Godkin, N., Areri, I. and Zeliku, Z., 2021. Maintaining a high-quality screening collection: the GSK experience. SLAS DISCOVERY: Advancing the Science of Drug Discovery, 26(8), pp.1065-1070.

https://norma.ncirl.ie/4735/1/wynetteroghoghoodiase.pdf

Saurav, S., 2018. Supply Chain Management in Pharmaceutical Industry: Opportunities and Challenges for Retailers. Supply Chain Management Strategies and Risk Assessment in Retail Environments, pp.267-284.

https://www.igi-global.com/chapter/supply-chain-management-in-pharmaceutical-industry/193310

Puente Gómez, I., Verheust, C., Hanssens, L. and Dolhain, J., 2020. Safety profile of Infanrix hexa–17 years of GSK’s passive post-marketing surveillance. Expert Review of Vaccines, 19(8), pp.771-779.

https://www.tandfonline.com/doi/full/10.1080/14760584.2020.1800458

Theurl, T. and Meyer, E., 2017. Management of Business Cooperation. Business Chemistry: How to Build and Sustain Thriving Businesses in the Chemical Industry, pp.109-153.

https://onlinelibrary.wiley.com/doi/abs/10.1002/9781118858547.ch4

Thorley, M. and Fulda, A., 2020. The Importance of Leverage in GlaxoSmithKline’s China Engagement: A Revelatory Case Study. Journal of Current Chinese Affairs, 49(2), pp.233-254.

https://journals.sagepub.com/doi/full/10.1177/1868102620931862

Tripathi, S., Rangarajan, K. and Talukder, B., 2019. Segmental differences in pharmaceutical industry and its impact on supply chain performance. International Journal of Pharmaceutical and Healthcare Marketing, 13(4), pp.516-540.

https://www.emerald.com/insight/content/doi/10.1108/IJPHM-12-2018-0063/full/html

Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context. In Proc. Emerging Technology Conference (EMiT) (pp. 66-68).

https://www.researchgate.net/profile/Alessia-Grassi/publication/337186405_AI_to_Facilitate_Legal_Analysis_in_the_PESTLE_Context/links/5dca8d20a6fdcc57504122bd/AI-to-Facilitate-Legal-Analysis-in-the-PESTLE-Context.pdf

Forkmann, S., Webb, J., Henneberg, S.C. and Scheer, L.K., 2022. Boundary spanner corruption: a potential dark side of multi-level trust in marketing relationships. Journal of the Academy of Marketing Science, 50(5), pp.889-914.

https://link.springer.com/article/10.1007/s11747-022-00844-z

Lang, C. and Hui, Q., 2021. Research on Social Responsibility Evaluation of Pharmaceutical Enterprises in China—Take Some International Enterprises in China as an Example. International Journal of Trade, Economics and Finance, 12(5).

http://www.ijtef.org/vol12/704-K0038.pdf

Important Notes:

This paper analyses the effect on expenses and productivity in order to provide an understanding of the more general contextual elements affecting GSK’s sustainability journey by using the PESTEL framework.

Having difficulty writing your health and safety assignment and don’t know how to start working on it? Leave it to the experts at assignment help UK, who provide top-notch health and safety assignment help.

Health and safety dissertations are a complex piece of work. It is common for students to face challenges while working on these types of complex and lengthy tasks. During such situations, it is also common for them to seek outside assistance from a professional dissertation writing service UK.