Project Advisory Committee Meeting 26th June 2012, New Delhi Vikash Batham CUTS International Exploring the Interplay between Business Regulation and Corporate Conduct in India (BRCC Project)

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 3 ResearchDiscourseAdvocacyCapacity Optimal Business Regulations [Public-Co-Self; National-State- Local…] Responsible Corporate Conduct [CSR, CSV, CG, SVA, BR…]

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 8 EnvironmentMarketing and Distribution Pharma Sector Environmental Impacts Incentive Structures for Promotion and Marketing of Drugs Private Healthcare Sector Biomedical Waste Management Rationality in Diagnosis Rational Use of Drugs Standard Treatment Protocols

Approach to Fieldwork 9 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.

Stages of Fieldwork in States 10 Stage-IStage-IIStage-III Pharma Firms Private Hospitals Medical Representatives Prescription Collection (Consumers) Pharma Collectives Hospital Collectives Industry Collectives Medical Associations MR(FGDs) Chemist Association Biomedical Waste Management Entities/Collectives Govt. Deptts State Regulators Media CSO/Academia

Pharmaceutical Sector: Key Respondent Groups GovernmentBusinessStakeholders 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 CSOs Media Academia Community residing in proximity of Pharma Manufacturing Units 11

Private Healthcare Sector: Key Respondent Groups GovernmentBusinessStakeholders Pollution Control Board Department of Environment State Medical Council Department of Health Private Hospitals Hospital and Medical Collectives Biomedical Waste Management Units and Collectives Industry Collectives 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