The expansion of sales in emerging markets and the exploitation of scientific advances will continue to provide considerable growth opportunities for the pharmaceutical sector. However, the activities of companies in the sector also involve risks of violating human rights, environmental norms, and other standards of corporate social responsibility. Many of these risks are complex and can be hard to grasp.

Over the last few years, many NGOs in both developed and emerging markets have run campaigns aimed at highlighting the negative impacts of pharma¬ceutical companies’ operations on public health issues and human rights. As a consequence, pharmaceutical companies have been subject to increased scrutiny from the media and the general public.

Investors have also stressed the need for increased transparency and responsible business practices within the pharmaceutical industry. Meeting investor and other stakeholder demands on transparent and responsible business conduct is becoming a crucial ingredient for achieving sustainable growth in the pharmaceutical sector.

This report aims at helping investors understand five highlighted social challenges that are unique to the pharmaceutical sector: Research and development, Drug safety, Access to medicines, Corruption, Promotion and marketing. It describes risks and opportunities within these areas, and recommendations on how investors can expect companies to handle these challenges.

Ulrika Hasselgren, CEO of Ethix SRI Advisors says: “We believe this report will help investors make better informed decisions regarding company investments and will provide a base for company dialogue focusing on specific areas of concern".

Contact Anna Massarsch, Client Service Coordinator, to order a copy.