The pharmaceutical industry is one of the most important globally. It discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered (or self-administered) to patients, with the aim to cure them, vaccinate them, or alleviate the symptoms. Pharmaceutical companies may deal in generic or brand medications and medical devices.
The pharmaceutical industry has become very global, and while a particular pharmaceutical may be sold to worldwide markets, its registration in each country remained a nation-by-nation process. Individual nations’ regulatory systems were based on the same fundamental obligations to evaluate quality, safety, and efficacy.
Who is a stakeholder?
A stakeholder refers to a party that has an interest in a company or organization and can either affect or be affected by the business. Any action taken by any organization or any group might affect those people who are linked with them. Broadly speaking there are three types of stakeholders:
Primary stakeholders are usually internal stakeholders that engage in economic transactions with the business.
Secondary stakeholders are usually external stakeholders, although they do not engage in direct economic exchange with the business – are affected by or can affect its actions.
Excluded stakeholders are those such as children or the disinterested public, originally as they had no economic impact on business.
Studies have shown that sixty-nine percent of corporate executives do not consider the general public’s best interest while making decisions and another ninety-four percent of corporate executives make their decisions first and foremost on the foundation of making advancement in their own line of business. In modern companies, there are two forms of ownership. The ownership theory of a company is one form of ownership. Here an individual owns the company. The sole purpose of the company is to make great profits over the years with its stakeholder’s interests at heart. The stakeholder theory of ownership is the other form of company ownership. This theory argues that such companies have the sole responsibility of promoting good work ethics and creating value for society. Even though the stakeholder theory aims at making profits, it should strive to ensure it creates a source of income for others especially the large community.
Who are the stakeholders in the pharmaceutical industry?
The stakeholders in the pharmaceutical industry are:
- Pharmaceutical company management: The first group of stakeholders includes the key management of the Pharmaceutical Company like the corporate executives, marketing, and the leaders who offer their opinion regarding the pharmaceutical industry like the consultants. Their key issue is to establish a growth strategy of the company, enhance transparency, and manage potential harm towards stakeholders and the society and code of ethics among the various departments in the company
- Regulatory Institutions: Regulatory institutions are establishments like the FDA that take part in ensuring the drugs that have been manufactured are of the right quality and manufactured as per the stipulated mandate and drug manufacturing requirements.
- Marketing: Marketing pharmaceutical drugs require good advertising skills and sufficient consumer research. Employing the use of strategic marketing is appealing and attracts the end user. This method also helps in dealing with companies that produce similar drugs known as “Me-Too” drugs. Me-Too drugs have similar chemical compound to the existing drug and they perform similar action performance towards one’s body. Good marketing strategy of the pharmaceutical organization will ensure the genuine drug that has been produced is sold at a fairly reasonable price and curb competition from other companies.
- Research and Development: Another important stakeholder in the pharmaceutical industry is the team that takes part in research and development of a pharmaceutical drug. The biopharmaceutical research and industry paves way to discovering new and efficient drugs.
- Healthcare providers: The doctors, pharmacists, Nurses and hospitals as the health providers ensure that approved drugs manufactured and sold by the pharmaceutical companies are put to the right use. Certain drugs like morphine are addictive and if misused, they could turn to be dangerous and lethal therefore the need to be under control. It is only the medical practitioner who is in a position to administer use of such pharmaceutical drugs.
- Professional organizations: Professional associations and society in the pharmaceutical industry play the crucial role of protecting the interest of the active players such as pharmacist and other biomedical employees in the industry. They also play a role in the training and professional development of those employed in the sector.
- Consumers: The end user is the most important stakeholder in the pharmaceutical industry. This group includes the general public, patients, health providers, health related institutions and the government.