Introduction
Gilead Sciences, Inc. is the biggest philanthropic company worldwide according to The Chronicle of Philanthropy (Eisenburg, 2013). For a very long time, the organization has been involved in “in-kind” charities and donations in different states in the East Asia, America, and Africa. In the year 2015, the company gave away over $550 million to various worldwide corporations. The donations aimed at eradicating and improving the lives of individuals affected by life-threatening illnesses (Eisenburg, 2013). Gilead Sciences collaborates with Gilead Foundation, a non-profit organization, that was founded in the year 2005 to increase the health status and safety of the vulnerable persons globally. Notably, the philanthropic strategy of Gilead has a significant impact on the company’s profits, brand image, and turnover, amidst the impending associated costs.
Gilead’s Strategic Philanthropy Impacts
Gilead Sciences Inc. aims at the ways to raise disease responsiveness, broaden specialized health education, and design patient care. It is worth our attention that the company’s donations rise averagely by 2% every year. This yearly increase depends on the number of the states and clients who require their programs (Bereskin, & Hsu, 2016, p.82). For example, Gilead Sciences headed the other philanthropic organizations with $447 million in donations in the year 2015 (Bereskin, & Hsu, 2016, p.80). Principally, Gilead Sciences works towards ensuring reach to health care to the vulnerable communities and widening medical education programs. Being a pharmaceutical firm, Gilead Sciences has accordantly marketed its products on the basis of their fight towards HIV/AIDS for the last 25 years. For that matter, Gilead Sciences as an organization has become popular as pertains to antiretroviral drugs like Truvada and Atripla, that have substantially reduced the severity and the prognosis of many millions of persons from the HIV/AIDS.
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By their unselfish slogan “corporate citizen” slogan, the company has turned out to be very invaluable throughout the globe by their supply of subsidized and financially bearable drugs. Through funding Aids Healthcare Foundation (AHF), also a nonprofit organization, the company has reduced the cost of antiretroviral medicines. For instance, Truvada cost $ 13,000 each tab yearly prior to the 25% cost cuts (Ntim, & Kransdorf, 2017, p.194). Today, Truvada is one of the best profitable drugs for the company – giving the highest revenues in return annually. By producing and selling large stocks globally, Gilead Sciences has recorded a dramatic rise in its profit margins from the crazy revenues (Ntim, & Kransdorf, 2017, p.198).
The Chronicle of Philanthropy (Bereskin, & Hsu, 2016) realized Gilead programs and fight towards Hepatitis C and B and cases in the U.S.A. and even outside the U.S. (p.84). Gilead Sciences funds several nongovernmental organizations and collaborates with institutions like the National Viral Hepatitis Roundtable (NVHR), Institute of Medicine (IOM), and the U.S Centers for Disease Control and Prevention (CDCP) (Ntim, & Kransdorf, 2017, p.199). Thus, Gilead Sciences’ trademark and trade name have gained positive social impact. Throughout its operations, the company has had increased organizational performance, and leadership abilities. Besides, the company has ensured the provision of quality programs together with dynamic capital investment which is both reflected in their success and their ability to consistently positively impact the lives of communities globally. This constant positive impact is because the company’s officials have established and maintained a working relationship with other stakeholders including the government agencies and the global community in designing the products that perfectly fit the consumers' needs.
The need for worldwide quality health care is a constant rise, especially the need to combat chronic diseases, like Tuberculosis and HIV/AIDS. Because of this increased demand, Gilead Sciences, Inc. has mobilized funds amounting to $22 million to support the research the chronic illnesses (Bereskin, & Hsu, 2016, p.85). Various research organizations including leading academic bodies, among other global community groups, have been involved in translational studies and efficacy research to solve these problems. Gilead’s creative team guided by their Executive Vice President has enabled these programs by strong staff capacity building and evaluating the outcomes of their studies and efforts (Bereskin, & Hsu, 2016, p.86). Because of this, the organization is one of the companies with a large employee turnover and retention and rates globally. Just as other philanthropic companies, the philanthropic strategy of Gilead Sciences has enhanced individuals' lives in the world by improving the reach of medical care with high value.
Gilead’s Difficulties Due to Strategic Philanthropy
In spite of the several successes that the company has recorded, the company faces a number of difficulties that stand in its way to effectively deliver (Eisenburg, 2013). To start with, the long ongoing debate on whether or not ‘strategic philanthropy’ provides donors with a lot of power in relation to governmental agencies. Parties which oppose the idea argue that Philanthropic approaches do not bear any meaning because the community groups are never engaged to identify their need. As of this, Gilead Sciences’ operations have been slowed due to the many discussion forums on the credibility of the charity programs (Eisenburg, 2013). Also, Gilead Sciences has fought to deliver its pledges irrespective of the economic breakdown that the U.S and the whole world faces. As of this, the organization has strived to maintain its public image by reviving trust in all aspects of its social corporate responsibility. Thus, the Gilead Sciences exercised the ‘Losing but Still Giving’ virtue despite being hit by huge losses.
Conclusion
Gilead Sciences, Inc has maintained a top position regarding philanthropic practices in the U.S and globally. Two years ago, Gilead Sciences donated over $550 million to several worldwide corporations so as to join hands in the improving the lives and eradicating life-threatening illnesses. Among others, the company’s activity areas are combating HIV/AIDS and Hepatitis B and C. The company meets its objectives through constant monitoring and evaluating their projects and research coupled with excellent staff management and capacity building. As a result, Gilead Sciences’ trademark and trade name have improved with respect to the organizational performance, social impact, and leadership capabilities.
References
Bereskin, F. L., & Hsu, P. H. (2016). Corporate philanthropy and innovation: the case of the pharmaceutical industry. Journal of Applied Corporate Finance , 28 (2), 80-86.
Eisenburg, P. (2013, August 20). “ Strategic Philanthropy Shifts Too Much Power to Donors .” The Chronicle of Philanthropy. Retrieved June 5, 2017, from https://www.philanthropy.com/article/Strategic-Philanthropy-/154451
Ntim, G. M. J., & Kransdorf, L. N. (2017). How to “PrEP” for HIV Prevention in Women. Journal of Women's Health , 26 (2), 195-206.
