Strategic Communication Regarding Philanthropic Activity by Biotechnology Firms: Integrated Approach to Sustainability and Social Responsibility

CSR is defined differently depending on the research focus and can encompass corporate citizenship, corporate commitment activities, and corporate philanthropic activities (Ahmad, Ahmad, Islam, & Kaleem, 2020). Bowen (1953) formulated the early definition of CSR as “the obligation of businessmen to pursue policies and decisions that conform to the goals and values of society.” (p. 6). This has become an important benchmark for researchers conceptualizing CSR. Eells and Walton (1961) and Anderson (1986) emphasized that corporations should follow ethical principles and engage in CSR. McGuire (1963) expanded this approach to include a sense of responsibility toward society as a whole. Lee and Moon (2007) noted that CSR began to take shape alongside industrialization in the 1980s. Chapple and Moon (2005) found that Korean companies have high participation in corporate philanthropy.

Recently, CSR activities have evolved from merely charitable activities to the creation of social value. This change was reflected in Kramer and Porter’s (2011) concept of creating shared values (CSV). This reflects the idea that corporate activities can have positive effects on society, highlighting the need for proactive corporate interventions in social and environmental issues.

Thus, CSR has evolved into a broad concept that includes economic, legal, social, and ethical responsibilities. Companies incorporate CSR into their relationships with various stakeholders. Through philanthropic activities, companies reaffirm their social purpose and responsibilities, thereby continuously creating social and economic value (Mu & Lee, 2023).

CSR has been discussed in several ways. Initially, this was considered contrary to a firm’s actual responsibilities (Kang & Jeon, 2011). Friedman (1962, 1970) characterized CSR as limited to maximizing shareholder profits. However, recently, the role of corporations in addressing social and environmental issues has been emphasized. In Korea, CSR activities became prevalent among industrialized firms in the 1980s (Lee & Moon, 2007). Furthermore, new forms of CSR, such as CSV, have been proposed in light of the negative effects of economic activity (Kramer & Porter, 2011).

Korean companies also participate in corporate philanthropy at the international level (Chapple & Moon, 2005) in tandem with their economic activities. By evolving beyond simple charity into social value creation, corporate philanthropy has become a critical means for firms to fulfill CSR and promote sustainable growth (Yoon & Lee, 2017).

Studies have also confirmed that corporate philanthropic activities positively affect brand equity and customer loyalty (Han, 2021). Thus, the authenticity of social contributions plays a critical role in stakeholder relationships. Accordingly, there is growing awareness that companies should focus not only on generating economic benefits but also on creating social value (Choi, Choi, Bae, & Jeong, 2023).

Individual consumer tendencies and lifestyles affect CSR-related perceptions and purchasing behaviors (Kim & Lim, 2019). Kim and Lim (2019) reported that CSR is important for enhancing brand image and increasing purchase intentions. Yun and Jeon (2017) and Maignan and Ferrell (2004) confirmed that CSR positively influences consumer purchase intentions. These findings are supported by Han (2021), who concluded that CSR positively affects brand assets and customer loyalty.

Maruf and Afeez (2013) noted that CSR messages tend to be perceived as non-altruistic when they are abstract, underscoring the importance of delivering clear and logical CSR messages. These authors also argue that psychological factors must be considered in public evaluations of CSR activities. Carroll (2004) and Lee and Kim (2016) emphasized that CSR activities are important for securing local social legitimacy in global markets.

Firms engage in CSR activities both domestically and internationally. For example, KB Kookmin Bank expanded its philanthropic activities abroad. Gardberg, Zyglidopoulos, Symeou, and Schepers (2019) suggested that corporate philanthropic activities are likely to be interpreted negatively. However, Stanaland, Lwin, and Murphy (2011) reported that corporate philanthropic activities can positively affect consumer perceptions and that providing information via the Internet is effective. These studies indicate that philanthropic activities play a crucial role in managing corporate image and branding and are directly linked to consumers’ purchase intentions (Lee & Lee, 2018).

This study analyzes press releases related to the philanthropic activities of companies ranked in the top 50 in domestic Korean sales from 2021 to 2024. Activities were initially classified into three main categories based on themes and keywords: charitable activities, sponsorships, and volunteer work (Table 1). These were further subdivided into seven main types, as follows:

This classification helps illustrate how companies’ philanthropic activities are reported and how each type of activity contributes to social goals, thus laying the foundation for long-term social impacts.

Individual donations typically involve successful entrepreneurs or prominent figures who donate their private wealth. Such donations reflect the donors’ personal beliefs. The media coverage focuses on individual donors and describes their contributions. Table 3 lists several examples.

Corporate foundations and corporate-initiated philanthropy involve systematic philanthropic activities conducted through foundations established by companies or internal organizations. These activities are conducted in areas such as education, environmental protection, community development, and health promotion. Through foundations, companies invest in various social value-creation activities such as scholarship program operations, infrastructure improvement, and environmental protection. This can help to promote community development and improve public health, aiming for a sustainable social impact. Thus, philanthropy has become an important means of fulfilling CSR and building close relationships with local communities. These activities are reported in press releases with the company or corporate foundation as the subject. Table 4 presents examples of philanthropic activity reports.

In cause-related marketing, companies strategically link charitable activities with profit generation to increase their profits. As social actors, companies strive to harmoniously connect their interests with those of the entire community (Luo, Zhang, & Liu, 2015) and strategically conduct philanthropic activities to ensure that profits and social development do not conflict. Cause-related marketing involves responding to consumer needs and achieving marketing goals while forming partnerships with nonprofit organizations, comprising a win–win strategy that includes philanthropic activities (Han, 2001). Table 5 presents examples of cause-related marketing.

Based on the above categories, this study analyzes the philanthropic activities of biotechnology and pharmaceutical companies ranked in the top 41 in domestic sales from 2021 to 2024, as shown in Table 6.

The departments or foundations responsible for a company’s philanthropic activities play a crucial role in communication by aligning the company’s strategic goals with its CSR beyond mere charity. They manage philanthropic activities systematically and professionally, enhancing internal efficiency and expertise while contributing to the company’s positive image.

Through clear communication channels, these groups ensured that the information was consistent and reliable. They strengthened their relationships with society and fostered public engagement by delivering the company’s social messages in a controlled and consistent manner. This type of structure transforms philanthropic activity from mere internal management to a bridge between the company and society, further highlighting the importance of philanthropy.

In cause-related marketing, companies use charitable activities as strategic assets to pursue corporate and social benefits. This is particularly significant for pharmaceutical companies because their products and services help improve health and quality of life. Yuhan Corporation, for example, undertook philanthropic activity by providing the drug Rexraza for free. This type of activity fulfills CSR by using a product for philanthropy, which promotes the product without incurring additional marketing costs.

The analysis indicates that pharmaceutical and biotechnology companies’ communication regarding philanthropic activities was mainly limited to distributing press releases and using corporate-owned media. Such approaches may not fully reflect diverse communication needs and could limit the effectiveness of strategic message delivery. Therefore, there is a need for a customized communication strategy based on the characteristics of the target group. Whereas social media can promote interactive engagement with younger consumer groups, traditional news media is more suitable for providing reliable information. Therefore, this study suggests that pharmaceutical and biotechnology companies should use a segmented approach tailored to different target groups for effective communication. This approach can effectively convey the company’s CSR and maximize the visibility and effect of its philanthropic activities.

Biotechnology and pharmaceutical companies have promoted philanthropic activities mainly through legacy media. However, with the rise of social media and the changes in the media landscape, there is an increasing need for media diversification and targeted messaging. Haenlein and Kaplan (2010) suggested that social media facilitates consumer engagement and effectively increases brand awareness by combining brand messages with user-generated content. This increases the touchpoints with various audiences and allows for communication tailored to the specific needs or concerns of consumers through each media channel, thereby inducing participation and response. Therefore, pharmaceutical companies should use social media to engage younger audiences through interactive content while using traditional media to provide more detailed information. This approach can help to integrate CSR with marketing goals, thereby playing a critical role in maximizing the visibility and effectiveness of a company’s philanthropic activities.