Rethinking a Responsibility In India: a review of Pharmaceutical & Private Healthcare sectors BUSINESSES’ CONTRIBUTION TOWARDS GROWTH & SUSTAINABLE DEVELOPMENT.

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Presentation transcript:

Rethinking a Responsibility In India: a review of Pharmaceutical & Private Healthcare sectors BUSINESSES’ CONTRIBUTION TOWARDS GROWTH & SUSTAINABLE DEVELOPMENT IN INDIA 24 th August, Shimla, Himachal Pradesh Ashutosh Kumar

2 Introduction Overview of BRCC project Conceptual Clarity & Research Design Some Key Findings Emerging conclusions Way forward Outline

Exploring the Interplay between Business Regulation and Corporate Conduct in India (BRCC project) 3

Introduction Increasing role of private sector as providers of public goods & services - contributing to social & economic development Need to examine private sector’s role in meeting societal expectation – challenges and opportunities NVGs provides a framework to undertake such an examination Understanding the role of regulation in influencing/facilitating this process Objective of BRCC project: to understand the Interplay between business regulation and corporate conduct 4

BRCC project - Overview Implemented over by CUTS in partnership with State partners Supported by Norwegian Ministry of Foreign Affairs through Royal Norwegian Embassy, New Delhi Sectors: Pharmaceutical & Private Healthcare States : Andhra Pradesh, Gujarat, Himachal Pradesh & West Bengal Method: – Secondary research – analysis of existing regulatory framework and implications for responsible business & – Primary research – empirical research in four states involving feedback gathering; personal communication with key actors and state-level fora 5

BRCC Project - Objectives Identify regulatory and operational constraints faced by businesses in select sectors in India and analyse factors for promoting responsible behaviour in these sectors Understand the role of the different actors in the healthcare and pharmaceutical sectors in promoting responsible business conduct Identify the key challenges and conflicts faced by the actors in managing the interaction between regulation and their conduct Identify key gaps between the intent of the regulation and its implementation to strengthen the regulation, policy and the procedures both at the Centre and State level Evolve a policy discourse involving business and policymakers to facilitate an environment for business responsibility 6

Definition and Concept of Business Regulation & Responsible Business Elements of business regulation include: (i) Public regulation, (ii) Co-regulation & (iii) Self Regulation Elements of business regulations implemented at National, State and Local levels Responsible business: framework comprising 9 Principles and 48 Core Elements of the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) 7

Research Design & Methodology Selection of sectors and states (AP, Gujarat, HP & WB) Sectoral Analysis Framework – using the NVGs Principles & Core Elements to identify Critical Elements (Environment and Marketing & Distribution ) Research Outline (linking BR with CC) – Guidance Note Framing questions for field-work (Stakeholder Mapping) Literature Review and Information analysis 8 Critical Factors

Issues for Investigation (Critical Elements) 9

Emerging Conclusions: Micro-Level Awareness of legislations good, but compliance often weak Expectation from the government for technical and financial support continues to be high Regulated private participation in bio-medical waste management services (market) at state-level, possible Conditions of service of Medical Sales Representatives has implications on drug availability at consumer end Information exchange is poor and erratic between regulators and firms No institutionalised process of Interaction between sectoral association and government/regulators Sectoral associations not responsible for monitoring behaviour of members 10

Emerging conclusions: Macro Level No direct relationship exist between level of economic development of a State and compliance of industries therein Coordinated regulatory enforcement (among concurrent regulators), missing at state level Diversity across state regulators (human and institutional capacity) leads to differential output vis-à-vis responsible business Unsatisfactory Human Capital Management (number and quality of staff) Ambiguity in the role of regulator (as provider of licenses on one hand and as a monitor of firm behaviour on the other) Incentives and disincentive mechanisms ill-developed Notion of business responsibility restricted to philanthropy 11

Way forward A more holistic understanding of business regulation (including self regulation and co-regulation) is necessary Movement towards better business needs to start from the states – calls for capacity building of key actors Creating an environment that promotes a culture of responsible business is important Emphasis on both external conditions and internal processes are necessary Need for sector specific guidelines (NVGs) for key sectors 12

Thank You! 13