Outsourcing with ethics and sustainability in mind

As soon as any pharmaceutical business outsources production to another company, it relinquishes an element of control over the manufacturing, purchasing and supply chain process. When outsourcing to low-cost regions in the developing world, this raises serious issues surrounding the sustainability and ethics of business practices of which the pharmaceutical industry needs to be aware. It is easy to underestimate the social, environmental and economic impact of outsourcing, but failure to consider this can have a real impact on a company’s reputation, as well as the quality, safety and long-term viability of its products.

The social impact of outsourcing is impossible to overlook. All too often the benefits of outsourcing, such as lower production and manufacturing costs, come with a human price attached. Lax employment laws, exploitation, sweatshop production and unsafe working conditions are still commonplace in many regions, and pharma companies must maintain vigilance across their entire operations, including outsourcing. This doesn’t just mean looking at outsourced manufacturing plants – it also means thinking about suppliers’ purchasing habits. Unless companies look specifically into the raw material purchasing processes, it is entirely possible for inappropriate or even illegal practices to be overlooked, and it is unlikely that any supplier will admit to unethical sourcing unless pushed.