Pfizer Sustainable Value Framework Analysis

Sustainable Value Framework Analysis

The concept of sustainable value framework arises from the fact that companies strive to maintain a balance between their external and internal forces in accordance with their vision and mission. The sustainable value framework varies from industry to industry. The recent trends in green peace and focus of non- government organizations towards cleaner environment has set up a trend in every industry to go through a sustainable value framework. Applying the sustainable value framework to the pharmaceutical industry is essential for every company today in the industry due to the fact that it is an industry which is subject to constant changes due to technological developments and is vulnerable to attacks by NGO’s due to the type of products they manufacture and sell. It has been the trend of many pharmaceutical companies such as GlaxoSmithKline and Novartis to focus on their corporate social responsibility which is a part of the sustainable value framework as it positively affects their external factors which include pressure groups that influence their activity.

The sustainable value framework consists of four parts. The framework is explained along vertical line in terms of present and future and the horizontal line dealing with internal and external factors. The framework also describes the different drivers such as pollution and waste the increase or decrease in which affects the organization in a negative or positive manner along with the drivers that consist of different pressure groups. All these groups and factors tend to prevail on a large scale in the pharmaceutical industry. Drivers which are internal and exist in the present industry scenario include pollution, material consumption and waste. Drivers which are external and exist in the current industrial scenario include civil society, transparency and connectivity. As the companies look towards their future opportunities and threats, the internal factors addressed by the sustainable value framework include clean technology or environment friendly activities. Similarly, external factors that the framework addresses include climate change, resource depletion and poverty.

The case of Dupont offers the best case ever in the corporate history for the perfect application of the sustainable value framework. There is no doubt in the fact that Dupont existed as a chemical giant whose products had social and corporate influences, but still it was affected by pressure groups and other external factors.

The pharmaceutical giant, Pfizer has an extensive culture of research and development. This culture seems to be the best of all as everything in the current scenario of globalization depends on research and development. Research and development will not only help the company in the constant development of new products in order to compete effectively but it