Examining the Relationship Between Corporate Social Responsibility and Competitive Advantage in the Pharmaceutical Industry

Abstract

This study aims to explore how corporate social responsibility (CSR) practices contribute to the development and sustainability of competitive advantage in the pharmaceutical industry. A qualitative research design was employed to gain in-depth insights into CSR’s strategic role within pharmaceutical firms. Data were collected through semi-structured interviews with 28 senior managers, CSR officers, and strategic planners from Tehran-based pharmaceutical companies. Participants were selected using purposive sampling to ensure relevance and depth of experience. Interviews continued until theoretical saturation was reached. Data were transcribed verbatim and analyzed thematically using NVivo software. The analysis followed Braun and Clarke’s six-phase approach to identify patterns and emergent themes related to CSR integration and competitive positioning. Three major themes emerged from the data: (1) strategic integration of CSR, including stakeholder-centric planning, top management commitment, and policy alignment; (2) CSR-driven value creation through enhanced brand reputation, innovation, talent retention, and market access; and (3) organizational culture and learning, which encompassed ethical leadership development, employee engagement, and cross-functional collaboration. Participants emphasized that CSR was not peripheral but central to strategic decision-making and a source of sustainable differentiation in a highly regulated and competitive industry. The findings were strongly supported by existing literature, reinforcing CSR’s role as a catalyst for trust, legitimacy, innovation, and operational efficiency. CSR plays a critical strategic role in enhancing competitive advantage within the pharmaceutical sector. When embedded into core business operations and aligned with stakeholder expectations, CSR can drive innovation, strengthen reputation, and foster long-term organizational resilience. This study offers practical guidance for pharmaceutical firms seeking to integrate CSR authentically and effectively while contributing to broader social and environmental outcomes.