Social Capital

Human Capital

  • Labor Practices
  • Employee Health & Safety
  • Employee Engagement, Diversity & Inclusion

Business Model & Innovation

  • Product Design & Lifecycle Management
  • Business Model Resilience
  • Supply Chain Management
  • Materials Sourcing & Efficiency
  • Physical Impacts of Climate Change

Leadership & Governance

  • Business Ethics
  • Competitive Behavior
  • Management of the Legal & Regulatory Environment
  • Critical Incident Risk Management
  • Systemic Risk Management
General Issue Category
(industry agnostic)

Disclosure Topics (industry specific) for:
Drug Retailers

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Energy Management

Energy Management in Retail

Chain drug retailers operate thousands of locations that consume large quantities of energy. Electricity is used primarily for lighting and refrigeration purposes. Energy demand is often increased by the fact that many retail locations operate around the clock. Energy efficiency in operation and the diversification of energy portfolios across a range of supply sources can mitigate exposure to rising energy costs and limit a company’s contribution to indirect greenhouse gas emissions.

Data Security

Data Security & Privacy

Drug retailers, as distributors of prescription medication and operators of retail health clinics, have access to and manage protected health information. Companies often have a legal obligation to safeguard their customers’ information, a task that includes the proper handling of sensitive information by staff in pharmacies and clinics, as well as the safe storage of information on physical and electronic media. Cyberattacks may compromise health information that is stored electronically, along with customers’ financial and personal data. Drug retailers that prevent major data breaches, including point-of-sales breaches and cyber attacks, can avoid harming brand value, reduce contingent liabilities, and maintain market share.

Product Quality & Safety

Drug Supply Chain Integrity

The drug retailer industry supply chain is long and complex, consisting of distribution networks between manufacturers and retailers. The ability of companies to ensure the quality and safety of pharmaceutical and healthcare products is critical to brand value. The industry faces risks associated with counterfeit drugs, and effective supply chain management is essential in mitigating these challenges. Drug retailers that fail to manage their supply chains may incur costs related to recalls, and such incidents may present significant risks to customers. The importance of this issue is elevated by the prevalence of store-brand products, which constitute a growing portion of drugstore sales.

Customer Welfare

Management of Controlled Substances

Drug retailers are distributors and sellers of a wide variety of controlled substances. In the U.S., the Controlled Substance Act (CSA) defines requirements for recordkeeping, distribution, dispensing, disposal, and security of controlled substances. Within this industry, the high volumes of drugs processed and dispensed, along with the extensive retail and distribution networks of larger companies, heighten the risk of theft, loss, and illegal drug dispensing. These actions may result in adverse social externalities, including public health consequences related to drug abuse and the illicit drug trade. Drug retailers participate in statewide drug monitoring programs to help mitigate some of the social issues associated with dispensing controlled substances. Furthermore, regulatory enforcement of the CSA requirements can result in fines and license suspensions. Strong internal management of controlled substances can mitigate these risks and help protect shareholder value in the long term.

Patient Health Outcomes

Drug retailers and pharmacists play an important role in the health care system, as they provide patients with medications and are often the last health care professionals to interact and engage with patients before medications are consumed. Drug retailers can enhance patient outcomes by improving communication, avoiding dispensing errors, and raising patients’ drug-adherence rates. Pharmacies have the opportunity to engage and educate patients on the importance of adhering to prescriptions, which provides beneficial outcomes for patients as well as for businesses. Companies that ensure the effective management of these interactions while working to avoid dispensing errors may be better positioned to protect shareholder value.

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