Corporate governance and the effects of its policies on Sanofi in Beirut Lebanon

By

ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

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Dated:

ABSTRACT

When it comes to define the concept of corporate governance, there is no universally accepted definition of the said phenomenon. The definition of corporate governance varies from one country to another. This is primarily because each country is different from the other in terms of their culture, historical development as well legal system. The aim of this study is to analyze the affect of corporate governance and the effects of its policies on Sanofi in Beirut Lebanon. Sanofi-Aventis Group is a diversified global health engaged in research, development, manufacture and marketing of healthcare products. Their activities include pharmaceuticals, including prescription pharmaceuticals, consumer healthcare and generic vaccines and animal health. The objective was to identify the overall corporate governance concerns of the Sanofi, define, clarify, explain them and highlight their relevance. To do so, this thesis examined, evaluate and quantify current corporate governance activities, policies and tendencies at Sanofi, Lebanon. It would assess if the intensity and efforts put into corporate governance activities are reflecting a trend across the industry and will evaluate if differences in approach can be found.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER # 1: INTRODUCTION1

Background of the Study1

Sanofi-Aventis Company Profile2

History2

Group history3

Present Standing3

Problem Statement4

Aims and Objective of the Study5

Research Hypothesis6

Significance of the Study6

Scope of the Study7

CHAPTER # 2: LITERATURE REVIEW9

History of Corporate Governance9

Why do companies adopt CSR practices?10

Compliance with regulations or guidelines10

Corporate Governance in Middle East region11

How do companies approach corporate governance?12

Corporate governance affect Sanofi Lebanon13

Definition and Evolution15

Drivers of CSR17

Implementation of CSR18

Disclosure of CSR19

Corporate Governance and Stakeholders22

Theories and models24

Corporate philanthropy, risk management and competitive advantage24

Example24

Shareholder, stakeholder and societal approaches25

Implicit vs. Explicit26

Inward vs. Outward27

Global vs. Local CSR27

CSR activities vary according the different industries29

Different countries or cultures view CSR in different ways30

Why and how do companies communicate their CSR activities?32

Drug development33

Need/or R&D and innovation33

Orphan drugs35

Example36

Systems Thinking Applications36

Example38

Summary38

CHAPTER # 3: METHODOLOGY40

Research Design40

Appropriateness of Design41

Mixed Research42

Classification of research methods42

Multi-method studies43

Mixed method studies43

Steps in mixed methodology43

Strength and weakness of the mixed research:44

Strengths44

Weaknesses45

Instrument for data collection45

Data analysis45

Reliability/Dependability45

Validity47

Internal Validity48

Ethical Considerations49

CHAPTER # 4: FINDINGS50

Sanofi Policies50

Principles50

Financial Code of Ethics50

Internal Audit Charter50

Promotion of Good Practice51

Code of ethics of the Public Procurement51

Code of conduct for suppliers51

Charter on ethical principles for scientific publications / on medical techniques / compounds / vaccines group52

Ethics Charter on the use of animals in research52

Guidelines for the use of human biospecimens52

Data Protection Charter52

Quality Policy52

Policy Health Safety Environment (HSE)53

Charter Sponsorship53

Sanofi Corporate Governance and impact of its Policies53

Theories of corporate governance54

Agency Theory54

Resource Dependence Theory56

Stewardship Theory57

Empirical research on corporate governance58

CHAPTER # 5: DISCUSSION AND CONCLUSION62

Discussion62

Hypothesis 162

Hypothesis 263

Why and how do ...