Corporate responsibility as a question of trust

US pharmaceutical group Abbott has a key strategy of global citizenship – one which it ultimately derives benefit from

WITH PUBLIC sector funds more difficult than ever to access these days, corporates are stepping into the breach, offering time and money to charitable causes as part of their corporate, social and responsibility (CSR) efforts. This is often despite taking a big knock themselves in the global downturn.

“It’s more important than it’s ever been,” says Kathy Pickus, division vice-president of global citizenship and policy at US pharmaceutical firm Abbott. “It’s important to see where we can add value in times of trouble.”

Abbott developed a formal CSR strategy some 10 years ago and for Pickus, it’s all about “managing your business responsibly”. This means focusing on four key areas: innovation, supporting patients and enhancing access, protecting the environment and making Abbott a great place to work.

Abbott began its formal CSR programme in Ireland in 2008, but in reality it has been focused on the local communities within which it operates for much longer.

The company opened its first Irish operation in 1946, followed by the first manufacturing plant in 1974. It is now one of the country’s largest healthcare employers. It employs 4,000 people across 14 sites in Ireland, with its newest in Santry, north Dublin.

Abbott has invested €500 million in its operations in Ireland since 2005 and last year, it spent more than €450 million on payroll, services and materials. Ireland is the pharmaceutical firm’s largest manufacturing location outside the US – or “advanced manufacturing” location, as Abbott would term it.

While Abbott’s CSR initiatives initially happened on a “very organic and bottom-up” basis in Ireland, Pickus notes the company quickly moved on from this.

“Ireland was the first affiliate asking questions,” she says.

There is now a working group on citizenship, with employees encouraged to contribute. “The best ideas come from individuals who are closest to the business,” notes Pickus, who says the ability of Abbott’s manufacturing plant in Cootehill, Co Cavan, to recycle all the water and steam it generates is a “remarkable achievement”.

Other initiatives include a funded effort to treat premature infants outside hospitals, which has led to some 4,000 patient visits, as well as sponsorship of two chairs in rheumatology in Trinity College Dublin and University College Dublin.

In monetary terms, Abbott’s Irish operations donated more than €320 million to charitable organisations in 2010 – but CSR goes beyond mere provision of funds.

Staff volunteering is also a very important part of Abbott’s strategy through its Croí an Óir programme. Last year some 9,000 volunteer hours were logged, while the company organised nearly 200 events supporting community organisations and charities.

Maria Delaney, who joined Abbott as part of its graduate recruitment programme in 2008, set up the volunteering programme at the Santry facility.

Having come up against the difficulty of co-ordinating the initiative in a “frequent flyer” site, where staff spend a lot of time travelling internationally, she still managed to set up a committee which works on initiatives such as the Schools Business Partnership Programme.

Irish employees also have a chance to contribute to communities outside of Ireland, as Eimear McGlade, a technical specialist with Abbott in Longford, found out earlier this year. She spent eight weeks in Tanzania as part of the pharmaceutical firm’s efforts to help modernise 23 hospital laboratories.

“The ultimate goal is to get the lab[s] accredited with international standards,” she says, adding her role here was to facilitate training of local staff. “They need someone to ask questions of; it’s about empowering them and offering guidance.”

To date, 22 Abbott employees have volunteered as mentors in Tanzania, with three coming from Ireland and the rest from the US. Abbott is also keen to draw on its core expertise in other ways and has done so very successfully in its science and education programme.

Back in 2009, Ireland became the first Abbott location outside of the US to pilot its Family Science and Operation Discovery schemes, which see teams of Abbott volunteers engage students, teachers and parents in hands-on science experiments.

To date some 1,500 students, parents and teachers have participated in schools surrounding Abbott’s 14 Irish sites.

“It’s about sparking interest so that they are well positioned, and hopefully inspired, to carry on careers in science,” says Pickus.

However it’s not purely philanthropic interests that drive CSR; companies can also benefit. As Pickus notes, having a good citizenship strategy can be an important aspect in attracting employees.

“I really believe this contributes to Abbott’s competitive advantage,” she says. “They [employees] really want to ensure that they work for a business that is trusted.”

Delaney agrees. “One of the reasons I joined Abbott in 2008 was because of how involved it is in volunteering,” she says.

It is notable that working on projects outside of their everyday jobs also enhances employees’ experience. “It’s given me more confidence, made me more driven for results,” says McGlade of her time in Tanzania.

Given the scale of Abbott’s locations in Ireland, it has a vested interest in seeing significant numbers of highly qualified science graduates coming through.

At a time when there are genuine fears about the perceived attractiveness of science as a career, Abbott’s schools programme appears to be having the desired effect. In a post- programme survey for example, 80 per cent of parents agreed they were now likely to discuss careers in science and engineering with their children, against 37 per cent before participation.