From Corporate Philanthropy to Shared Value: Big Pharma’s New Business Models in Developing Markets

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Suggested Citation

Smith, N. (2016). Vom wohltätigen Unternehmen zum Shared Value: Die neuen Geschäftsmodelle der Pharmaindustrie in Entwicklungsländern. GfK Marketing Intelligence Review, 8(1), 30-35

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Year

2016

Authors

N. Craig Smith

Publication title

From Corporate Philanthropy to Shared Value: Big Pharma’s New Business Models in Developing Markets

Publication

NIM Marketing Intelligence Review

N. Craig Smith

Some big companies have discovered opportunities to bolster their bottom line in emerging and developing markets by creating social value at the same time as generating economic returns. In the pharma industry some have taken the lead in using this concept of shared value to innovate and grow their business, especially in developing markets.

Eli Lilly launched the NCD partnership to combat diabetes in underserved areas around the globe. The partnership improves awareness of the disease and access to treatment and drugs, among other things. But the initiative is also intended to help its emerging-markets business units meet ambitious growth targets.

Novartis has established the Social Business Group, a unit within the parent company to develop the initiative Arogya Parivar, dedicated to getting much-needed medicines to some of India’s most remote villages. Its impact translates to providing 42 million people with improved access to healthcare across an estimated 33,000 villages, according to Novartis. It has surpassed company expectations by breaking even in its 31st month of operations.

Both cases offer valuable insight into challenges that companies aiming for shared value need to overcome.

Authors

N. Craig Smith, INSEAD Chaired Professor of Ethics and Social Responsibility, Craig.SMITH@insead.edu

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