Managing stakeholders’ influence on embracing business code of conduct and ethics in a local pharmaceutical company: Case of Kampala Pharmaceutical Industries (KPI)
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Date
2016
Journal Title
Journal ISSN
Volume Title
Publisher
Review of International Business and Strategy
Abstract
This paper aims to avail a soft approach to embracing the process of creating a business
code of conduct and ethics and make it work for a pharmaceutical company [player] which wants to
remain relevant before stakeholders and society, amidst escalating inducements to go against the
acceptable pharmaceutical behaviour.
Design/methodology/approach – Data collection was guided by qualitative methodologies. A four
stepwise process was followed: data collection at the case company – Kampala Pharmaceutical
Industries (KPI), Uganda; validation of data collected at KPI; data collection from external stakeholders
of KPI; and re-validation of KPI data based on data collected from external stakeholders. In all this,
combination of semi-structured and informal interviews with CEOs, senior staff managers, non-participant observation of ethical related activities plus organizing a stakeholder engagement
workshop on business code of conduct and ethics was achieved. This workshop helped document what
ought to be an ideal design process to secure stakeholder buy-in of the code of business ethics. A local
pharmaceutical company in Uganda, KPI was used, which, for continuous five years since its adoption
of the business code of conduct and ethics, registered commercial viability without any record of
unethical practices. Triangulation was used to ensure credibility and validity of the results. For data
analysis, a three-stepwise process was followed, which helped develop a framework within which the
collected data revealed themes which were later analyzed. For generalization of the findings, the
“adaptive theory approach” was used.
Findings – When poorly introduced in an organization, the business code of conduct and ethics can
work against the company simply because it will be received with “intentional rebellion” from
stakeholders, notably staff. However, when a soft stakeholder engagement and consultative approach
is used and followed during the business code of ethics and conduct’s design process, multiple
stakeholders feel proud and are much willing to live by the promise spelt out in it. Cited notable benefits
of living by the code include reputational enhancement, strategic competitiveness and increased
possibilities of wining cross-border cooperation among like-minded pharmaceutical players. In the
efforts to reap from the code of ethics, communication was observed as an indispensable activity.
Refresher trainings to remind the stakeholders about the promises in the code are also needed as time
passes by, otherwise they forget. Needless to say, rewarding those who live an exemplary life in
embracing and living by the code was cited as key in sustaining the ethical agenda. Lastly, managing
multiple stakeholders influences is a curvilinear fashion and involves back and forth consultations.
Practical implications – The lessons learnt from KPI can be borrowed and used by both global
pharmaceutical players and national/local players, especially those that face challenges living by
the promise of their existing codes or those without business code of conduct and ethics. That is, both
players can use the suggested process to help participants in their medicine supply chain to come up
with working business codes of conduct, as well as guide the stakeholder consultative process which
results in stakeholder buy-in.
Originality/value – For many years, issues surrounding bioethics have dominated priorities of
World Health Organization (WHO), UNESCO and many international and national development allies.
However, there is an escalating violation of medical codes of conduct and ethics. Hence, this publication
is a step toward the implementation of the principles and objectives of the UNESCO Universal
Declaration on Bioethics and Human Rights which is currently challenged with a difficult question
posed by life sciences – How far can we go given the dented medical relationship between ethics,
medical science and freedom?
Description
Keywords
Pharmaceutical, Corporate social responsibility, Code of conduct, Business ethics, Health, Stakeholder engagement
Citation
David Katamba Cedric Marvin Nkiko Consolate Ademson , (2016),"Managing stakeholders’ influence on embracing business code of conduct and ethics in a local pharmaceutical company", Review of International Business and Strategy, Vol. 26 Iss 2 pp. 261 - 290. http://dx.doi.org/10.1108/RIBS-02-2014-0028