Compliance and CSR in the pharmaceutical world

Compliance and CSR are becoming increasingly important in the pharmaceutical world.

The lawyers that we are, faced with the need to understand and adapt to their environment, must pay particular attention to CSR clauses, and Compliance in pharmaceutical sector contracts.

These clauses are essential and cover several aspects such as traceability, ethical codes, monitoring of supplier chains, control of subcontracting conditions, components, sourcing of certain raw materials etc.

Compliance concerns all the pharmaceutical group’s activities. From respect for the environment to the implementation of a genuine CSR policy, including the fight against corruption, it also involves ensuring that the drug production chain is controlled in the highest possible quality.

All these aspects have their corollary in contract law. Everyone must ensure that the clauses obliging the supplier to comply with ethical codes, CSR rules, various prohibitions concerning the origin of raw materials or the fight against corruption are properly drafted.

These clauses are not just stylistic clauses. Compliance with these obligations can be monitored by audits and in case of violation, the contract can be terminated by the contracting party on the grounds of negligence, thus engaging the contractual liability of the offending party.

It is therefore necessary to carefully read the charters and ethical codes that are part of the contractual field and to refrain from entering a contract without ensuring that you are in compliance with these obligations.

In this respect, it is important to read the (compulsory) ethical codes or codes of good conduct of certain large pharmaceutical groups, the purpose of which is to make everyone responsible for their conduct and behaviour, both internally and regarding stakeholders.

The subject has become central, we have really gone beyond the stage of good intentions, and this is to be welcomed.