Exploring the Interplay between Business
Regulation and Corporate Conduct in India
(BRCC Project)
Project Advisory Committee Meeting
26th June 2012, New Delhi
Vikash Batham
CUTS International
BRCC Project – Brief Overview
Implementers:

Consumer Unity & Trust Society (CUTS International)

Norwegian Institute of International Affairs (NUPI)
Duration: April 2011 to December 2012
Thrust: identifying the regulatory and operational
constraints faced by businesses in select sectors in India
and analysing the factors for promoting responsible
behaviour in these sectors
2
BRCC Project Schema
Responsible
Optimal
Research
Discourse
Business
Regulations
[Public-Co-Self;
National-StateLocal…]
Corporate
Conduct
Advocacy
Capacity
[CSR, CSV, CG,
SVA, BR…]
3
Business Regulation: Concept
Business Regulation entails different regulatory
instruments like policies, laws, rules, orders, procedures
and praxis that influence how business operates in a
particular setting and/or sector .
In Indian context, such regulations get administered at
the National, State and Local levels and can take the
following forms:



Public Regulations
Co Regulations
Self Regulations
4
Corporate Conduct: Concept of
NVGs
Business Responsibility involves businesses
being thoroughly aware and conscious of
their social, environmental and economic
responsibilities, and balance these different
considerations in an ethical manner (National
Voluntary
Guidelines
for
Social,
Environmental
and
Economic
Responsibilities of Business, 2011).
5
BRCC Project: Sectors and States
Selected Sectors:
 Pharmaceutical Sector
 Private Healthcare Sector
Selected States:
 Andhra Pradesh
 Gujarat
 Himachal Pradesh
 West Bengal
6
Framework of Analysis


What factors pertaining to the structure and the
manner of enforcement of relevant regulations have
significant influence on the ultimate outcome of such
regulations, from a corporate conduct perspective?
How some of these factors can be refined to enhance
responsible corporate conduct, without creating any
negative impact on businesses?
Regulation
Enforcement
Outcome
(Corporate
Conduct)
Critical Factors
7
Research Problem Matrix
Environment
Pharma
Sector
Marketing and
Distribution
• Environmental •
Impacts
• Biomedical
Private
Waste
Healthcare
Management
Sector
•
•
•
Incentive Structures
for Promotion and
Marketing of Drugs
Rationality in
Diagnosis
Rational Use of Drugs
Standard Treatment
Protocols
8
Approach to Fieldwork
PRIMARY DATA
 FACT FINDING VISIT: Meeting Stakeholders, Ground Truth
Verification, Initial Contacts, Data Sources, etc. (insights)
 INTERVIEWS: Government Deptt., Regulators, Business
Associations, Sectoral Associations, CSO/Academia, Media
 SAMPLE SURVEY: Pharma Firms, Private Hospitals,
Medical Representatives
 PRESCRIPTION ANALYSIS: Behaviour of doctors in Private
Hospitals
SECONDARY DATA
 Nature of the market, Evolution of market in the state,
state-level regulations, media updates, good practices,
successful programmes, etc.
9
Stages of Fieldwork in States
Stage-I
• Pharma Firms
• Private
Hospitals
• Medical
Representatives
• Prescription
Collection
(Consumers)
Stage-II
•
•
•
•
•
•
•
Pharma Collectives
Hospital Collectives
Industry Collectives
Medical Associations
MR(FGDs)
Chemist Association
Biomedical Waste
Management
Entities/Collectives
Stage-III
• Govt. Deptts
• State
Regulators
• Media
• CSO/Academia
10
Pharmaceutical Sector:
Key Respondent Groups
Government
Business
• Pollution Control
Board
• Department of
Environment
• Food and Drugs
Controller
• Department of
Health
• Department of
Industry
• Pharma Firms
• Pharma
Collectives
• Industry
Collectives
• Medical
Representatives
and their
Collectives
• Chemist
Associations
Stakeholders
•
•
•
•
CSOs
Media
Academia
Community
residing in
proximity of
Pharma
Manufacturing
Units
11
Private Healthcare Sector:
Key Respondent Groups
Government
Business
• Pollution Control • Private Hospitals
Board
• Hospital and
• Department of
Medical
Environment
Collectives
• State Medical
• Biomedical
Council
Waste
• Department of
Management
Health
Units and
Collectives
• Industry
Collectives
Stakeholders
•
•
•
•
CSOs
Media
Academia
Consumers
availing the
services of
Private Hospitals
12
Project Activities till June 2012












Project Launch Meeting
Two Regional Dialogues
One Strategy Dialogue
Selection of Sectors and States
Refinement of Research Methodology
Formulation of Research Problems
Selection of Key Respondent Groups
Fact Finding Visits to States
Development of Survey Tools
State Inception Meeting
Field Research
PAC Meeting
13
Project Activities July – December 2012






Remaining fieldwork and analysis
State Reports on Healthcare and Pharmaceuticals
State Level Dialogues
National and State Policy Recommendations
Capacity Building Workshops
Project Conclusion
14
Thanks
www.cuts-ccier.org/brcc