Pharmco being a midsized firm with not a worldwide presence cannot afford to have such negative publicities. In fact the firm needs a lot of positive reviews as it is a growing firm. These positive reviews as well as increased trust can be done through CSR activities.
One more aspect of the pharmaceutical business is the decreasing pipeline of the products. Pharmaceutical companies manufacture the researched drug at a high price till the patent expires and post that many firms can manufacture the generic drug at a very low price. It takes years of research to come out with a new drug. Also Pharmco doesn’t have a very strong pipeline of drugs lined up for research. Also many firms have come up in the recent past which manufactures cheap generic drugs and their reach in public also has increased and this had led to strong competition in the market. This competition along with the negative feedback can be a big setback for the firm. Thus the firm needs to adopt new ways of the marketing itself. With these incidents occurring along with increasing competition, CSR activities can be an effective tool for the firms to market itself to the public.
Thus CSR activities can be an effective tool and it will also serve a dual purpose. First it can help to increase the firm positive reviews and can help the firm to market itself to the public. Also it can make the firm looks more responsible and also help the firm to fulfill its duties for the society (Holme & Watts, 1999).