Genzyme's CSR Dilemma: How to Play its HAND

Christopher A. Bartlett; Tarun   Khanna; Prithwiraj  Choudhury

Case | HBS Case Collection | August 2009 (Revised April 2012)

Genzyme's CSR Dilemma: How to Play its HAND

by Christopher A. Bartlett, Tarun Khanna and Prithwiraj Choudhury

Abstract

Genzyme, a global biotechnology company, launches a program to develop therapies for neglected diseases (e.g., malaria, TB), giving away the intellectual property. This case focuses on the decision of which diseases, which partnerships, and which markets should management decide to fund. But the bigger issue is how this program, developed under the umbrella role Genzyme's corporate social responsibility, fits into its global competitive strategy.

Keywords: Global Strategy; Health Care and Treatment; Intellectual Property; Corporate Social Responsibility and Impact; Partners and Partnerships; Research and Development; Biotechnology Industry;

Format: Print

23 pages

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Citation:

Bartlett, Christopher A., Tarun Khanna, and Prithwiraj Choudhury. "Genzyme's CSR Dilemma: How to Play its HAND." Harvard Business School Case 910-407, August 2009. (Revised April 2012.)

While there is evidence about labor market discrimination based on race, religion, and gender, we know little about whether physical appearance leads to discrimination in labor market outcomes. We deploy a randomized experiment on 1,000 respondents in India between April and May 2020 to investigate how “looks” affect labor market outcomes. Using machine learning and computer face rendering techniques, we simulate North, South, and Northeastern Indian faces and randomize two waves of treatments where we attach faces with otherwise identical CVs. However, the second wave also contains a vignette where we provide respondents with information about the incidence of discrimination. We focus on Northeastern Indian faces that resemble those in China to focus on the potential for discrimination that has historically been present in anecdotal accounts. While we do not find evidence of discrimination against Northeastern faces in the first wave, we do so in the second among those who do not see the vignette. We provide suggestive evidence that these results are consistent with the presence of homophily under limited attention.

Pallak Seth, Group CEO of PDS Multinational Fashions, is contemplating options to bring better collaboration across his global apparel supply chain platform. PDS, a group of 50-plus subsidiary companies, each led by its own CEO and with different apparel industry specialties, has grown rapidly over the past decade, yet the industry is increasingly competitive and challenges remain constant. Looking for ways to reach the Group’s 2023 goals of $2 billion in revenue, Seth and his executive board are considering two ways to increase collaboration and reward performance: a joint P&L approach to drive partnerships across the subsidiaries and an employee stock option plan, to unlock value across the Group.

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Genzyme's CSR Dilemma: How to Play its HAND

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Genzyme's CSR Dilemma: How to Play its HAND

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