Group5_Ranbaxy

7/30/2019 Group5_Ranbaxy

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G R O U P 5

S U J E E T M AT H E W ( 1 2 P G P 0 2 8 )

R A H U L PAVA N K U M A R ( 1 2 P G P 0 3 1 )

P O U S A L I C H A K R A B A R T I ( 1 2 P G P 0 3 2 )R I S H I R A J S I N G H A S H I YA ( 1 2 P G P 0 3 5 )

S AT H I YA S U N D A R A M T ( 1 2 P G P 0 3 8 )

V E N K ATA A C H Y U T H K U M A R ( 1 2 P G P 0 5 4 )

A N S H U L T R I P AT H I ( 1 2 F P M 0 0 1 )

RanbaxyCorporate Social

Responsibility


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AGENDA

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1)Introduction to company and industry

2)Analysis of CSR areas of Ranbaxy

3)Corporate Governance

4)Points to ponder 5)Synergy Integration with Daiichi

6)Further Analysis

7)Reccommendations


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COMPANY DETAILS

Indian Multinational company In Pharmaceuticals-world classgenerics, branded generic pharmaceuticals and ActivePharmaceutical Ingredients (APIs).

Taken over by Japanese drug major Daiichi Sankyo in June 2008

Revenue $2.3 billion Diverse product basket of over 5,000 SKUs.

Headquartered at Gurgaon (Haryana) with a presence in over 125countries

Around 12000 employees

World-class manufacturing facilities in 7 countries.

Products: Cefaclor, Cephalexin, Amoxycillin

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CSR ACTIVITIES- RANBAXY

At Ranbaxy, corporate social responsibility and environment health and safety are viewed as

essentials of corporate DNA

Reaching out to the underserved rural communities and helping them overcome their

challenges is central to Ranbaxy's CSR philosophy

Included in the Asia Pacific Index of the Dow Jones Sustainability Indices and FTSE4

Good Global Index for two consecutive years. Karmayog rating2/5

Key CSR Areas:

Children

Community Welfare

Education Healthcare and Health education

Rural Development

Water

Anti - malaria initiative

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RANBAXYCSR AREAS

CompanyProductivity

SupplyAccess and

Viability

Employee

skills

Worker

Safety

PeopleHealth

Education

Environment

al Impact

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SUPPLY ACCESS AND VIABILITY

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

WorkerSafety

PeopleHealth

Education

Environmental Impact

Honest dealings with suppliers are

essential to cultivate mutually

beneficial lasting relationships.

Reasonable profits for Suppliers

Supply Access and Viability KPI

Suppliers legal compliance and

ethical performance should be made a

criteria for selection. Measure could

be relevant ISO certifications

Fair trade: Transparency in tradeproper documentation should be made

a priority

Quality management

Stable supply and steady delivery

times

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EMPLOYEE SKILLS

Recruitment based on skills and

values.

Less focus on sustainability in

training and recruitment

Employee skills & benefits KPI

Worker turnover

Absenteeism rate

Increased competence level for

employees Employee satisfaction survey

Gender ratio and diversity ratio

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

WorkerSafety

PeopleHealth

Education


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WORKER SAFETY

Road safety initiative to educate

employees, contractors and the local

community on positive road

behaviour. Emergency preparedness

Additionally, a safety audit by TheNational Safety Council was

conducted during the year at our

Mohali API manufacturing facility.

Extensive safety training programs,

both by internal as well as externalspecialists

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

WorkerSafety

PeopleHealth

Education


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WORKERS SAFETY KPIS

Total number of injuries as a percentage of total number of

workers

Total number of leave because of occupational side-effects

Compliance to standard safety equipments and processesaccording to international standards

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PEOPLE HEALTH

A novel idea of providing mobile health

care outreach service for the poor and

underprivileged was initiated.

The program today benefits nearly 2 lakh

people in 77 rural and urban slum areas in

Punjab, Haryana, Himachal Pradesh,

Madhya Pradesh and Delhi.

Six well equipped mobile health care vans

with teams of medics and paramedics

The company initiated Ranbaxy Sanjeevan

Swasthya Sewa, a public private

partnership between the Punjab State

government during 2010. The issues addressed include maternal-

child health, family planning, reproductive

health, adolescent health, health education

and AIDS awareness.

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

Worker

Safety

PeopleHealth

Education


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PEOPLE HEALTH CONTD.

Significant decrease in child mortality

by addressing issues like low birth

weight, pneumonia, diarrhoea, lack of

new born care and management of

obstetrical emergencies.

Working hand in hand with theGovernment and other voluntary

agencies to address issues like

HIV/AIDS, tuberculosis, malaria and

female foeticide.

Partnerships with reputed national

organisations like the Rajiv Gandhi

Foundation, Voluntary Health

Association of Punjab and the Society

for Service to Voluntary Agencies for

important projects on Reproductive

Child Health and HIV/AIDS.

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

Worker

Safety

PeopleHealth

Education


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PUBLIC HEALTH KPIS

Measured in two factors

Access to essential medicines.

Affordability of essential medicines.

KPIs Infant and maternal mortality rate

Free consultations offered at RCHS

Number of RCHS established

Quantity of Medicines and vaccinations administered aptlythrough urban family welfare centers

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EDUCATION AND SOCIAL UP-LIFTMENT

Two stage initiative under RCHS:

RCHS Medical officers were

trained to train the dais

Training of dais' from the

community was done in the secondphase.

Established community based local

groups like health committees,

women groups and otherinteractive groups like dais,

anganwari workers, volunteers,

adolescents and breast-feeding

support groups

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

WorkerSafety

PeopleHealth

Education


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EDUCATION AND SOCIAL UP-LIFTMENT

CONTD..

Rewards excellence in medical and

pharmaceutical sciences

Research awards to 5 Indians

Conference on topics like cancer,

urban health etc Channelizes national and international

knowledge in finding cures for diseases,

afflicting mankind.

Working on the anti-malaria

collaborative research project since May

2003drug that is safe and effective, butalso affordable

SYNIRAM priced at 130 for three

tablets

Efforts to make quality anti-HIV

generics- better and wider access

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

Worker

Safety

PeopleHealth

Education


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EDUCATION KPI

Number of local dais trained

Ratio of amount spent for education as to total CSRbudget

Contribution in employee time and amount onprimary education

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ENVIRONMENTAL IMPACT

In the process of continual

improvement in EHS performance

aimed at minimizing risks.

Employed Environment, Health and

Safety Management System

(EHSMS) as a global framework tostandardize the EHS processes and

practices .

All the equipments and infrastructure

for environmental management are in

conformity with regulatory standards . Innovative 'Green Technologies' like

the Heat Pump, the Refrigeration

Chiller , were deployed in recent

projects at the Baddi Dosage Form

(DF) site, in Himachal Pradesh.

CompanyProductivity

SupplyAccess and

Viability

Employeeskills

Worker

Safety

PeopleHealth

Education


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Environmental Impact contd.

Working proactively to acquire ISO 14001

certification in the recognition that its

plants have a substantial environmental

impact.

Environmental auditing

Internal auditing Evaluations by ISO audit

organizations

Environmental audits per formed

by the environmental

management department (CSR

Department) Environmental accounting

Initiatives on biodiversity:

use of natural resources

status of efforts to comply with the

Cartagena Protocol

CompanyProductivity

SupplyAccess and

Viability

Employee

skills

Worker

Safety

PeopleHealth

Education

Environmen

tal Impact

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ENVIRONMENT KPI

CO2 emission/ carbon footprint Compliance: ISO 14001

Volume of waste generated per annum

EHS performance matrix

waste recycled (per annum)

Amount of water consumed

Green house gases emission

Land pollution

Emissions to air

Environment Committee

All animal experiments conducted by the R&D Division are reviewed by the

Institutional Animal Care and Use Committee.

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CORPORATE GOVERNANCE

An institutionalised framework of corporate governance andcode of ethics ensures ethical integrity, reliability and

transparency and trust with the shareholders

Reporting and disclosures

AuditsExternal and Internal

Risk assessment

Legal compliances

Code of conduct

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CORPORATE GOVERNANCE CONTD.

A 11 member Corporate Ethics Committee is presided by the head of the Legal affairsand CSR Division (who enforces the compliance rules throughout the company).

Compliance training

Compliance training is proactively provided to employees and training content changes

with respect to regional rules and regulations.

Since fiscal 2010, each department, section or group as a unit has to identify thecompliance risks presumed to be latent in its workplace, holding discussions to select

the most important risks and taking into account the likelihood of each risk and its

impact.

Actions are taken to decimate such risks by the concerned departments.

The Compliance newsletter intranet portal, which introduces our compliance activitiesand describes difficult cases

Whistleblower system

Each group company provides reporting channels for whistleblower, such as

hotline or e-mail

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CORPORATE GOVERNANCE KPIS

A survey can be conducted to understand the employees

understanding of the core values of the company and its commitment

to sustainability.

Average of respondents answers as to whether social and

environmental issues are important for the future of the company.

Average of respondents answers as to whether management

demonstrates in words and action that they live up to our Values.

Percent of fulfilment of action points planned arising from

facilitations of the management values.

Average of respondents answers as to whether there is

Organisational support for and understanding of responsible

business practices.

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POINTS TO PONDER.....

Is Synriam.- the new anti malarial drug really an act of CSR ??

Ranbaxy claims

that it has spent invested $30 million to develop this drug.

The fixed dosage drug is first of its kind

DNA report by Priyanka Golikeri reports that the drug is arterolane maleate +piperaquine phosphate.

Ciplas anti malarial drug is also an FDC and a combination of two other

drugs, also pioneered FDC in HIV

The drug was invented by a doctor at university of Nebraska, Ranbaxy entered

at the time of clinical trials- Not much work in R&D by Ranbaxy Major cost of any drug : clinical trials which has been covered by DST ( deptt

of science &technology)

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http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726http://www.dnaindia.com/money/report_ranbaxy-cipla-unveil-malaria-combo-drugs_1680726


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POINTS TO PONDER CONTD..

Stands to make killer profits from these drugs simply through

economies of scale

Though the price of drug is just 130, but the number of new

malaria cases in the world every yearis estimated to be at around

250 million.

OTC drugs, Medical representatives

US drug Lipitor case

Import ban on 30 drugs

Expiration date

Medical Waste disposal

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DAIICHIS CORPORATE VALUE SYSTEM

Daiichi Sankyo Group Corporate conduct Charter

(based on the principles of the United Nations Global

Compact) in October last year. This Charter is used as

the basis for the practices of all Group companies.

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Vision for 2015:Become a global pharmaceutical

innovator


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CSR GOALS OF DAIICHI GROUP

Promote Management of Compliance globallyGoal 1

Realize a Working Environment Which Respects EmployeeDiversity

Goal 2

Reinforce Communication with Stakeholders

Goal 3

Reduce the Environmental Burden in every operation

Goal 4

Broaden the Opportunities of Access to Medical Services,Including Medicine, Globally

Goal 5

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CSR

Mission:

Enriching lives globally with affordable and quality pharmaceuticals

Vision

Achieving customer satisfaction is valuable to our business. Provide products and services of highest quality

Practice dignity and equity in relationship and provide opportunities for our

people to reach their full potential

Ensure profitable growth and enhance wealth of shareholders

Foster mutually beneficial relations with all our business partners.

Manage our operations with high concern for safety and environment.

Be a responsible corporate citizen.

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CSR OR CSV??

Preserving the planet while improving the quality of life for its

current and future inhabitants

As defined by Ranbaxy : No proper definition

Focus on sustainability of the hybrid business model

Possible indicators

Market share

Market growth

Revenue stream

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Wh t Q liti E bl S t i bilit


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What Qualities Enable SustainabilityPractices to be Implemented..

COLLABORATIVE

INTEGRATION

Holistic Integration

Broad Stakeholder

Engagement

TRACTION

Alignment of Hard & Soft Organization

Systems

Metrics

Measurement & Reporting

FOUNDATION

Strategic CentralitySenior Management Embrace/Support

Deeply Embedded Values

The Triple Bottom LineSUSTAINABLE ENTERPRISE


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SHIFT OF FOCUS- WHY??

DEVELOPING NATIONS

Growth rate of 15 % as

compared to 5 % for

developed countries

Rising incomes

Large prevalence of cardio

vascular diseases and

malaria

Need for affordable drugs

DEVELOPED NATIONS

Aging populations

Faltering economic growth

Efforts to curb medical andpharmaceutical costs

Standards for determining

the safety and Efficacy of

pharmaceutical products are

growing more stringent

Hurdles for development of

new drugs are getting higher.

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CORPORATE CHARACTERISTICS

LOW IMPACT HIGH IMPACT

REGENERATIVE

RANBAXY

BUTTERFLY

HONEYBEES

DEGENERATIV

E CATERPILLARS

LOCUSTS

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RECOMMENDATIONS

Major improvement guidance required in audits of plants that hadalready received certification.

Audit in terms of waste management is required

Measures on water, energy conservationRenewable energy are

needed Pursue green purchasing from vendors

Further penetration into developing markets

Focus on distribution networks to reduce costs. The benefits of

reduced costs can be transferred to consumers. More stakeholder relation oriented approaches-Requires change

in mindset to go from production to co-creation.

Public disclosure of CSR budget

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RECOMMENDATIONS CONTD.

Patents

The company should support lifting TRIPS restrictions on the

export of generic versions of patented medicines to developing

countries where a patent is not in force, in line with the Doha

Declaration. The company should disclose to shareholders its lobbying

position on patents and expenditure on such lobbying

Joint Public Private Initiatives (JPPIs)

The company should ensure that its JPPIs state objectives tointegrate with and strengthen national health systems, and report

on their impact.

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THANK YOU

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