Business ethics
Ethical business conduct is about upholding values and demonstrating integrity as well as meeting legal requirements and mitigating risk. Taking a proactive approach enhances trust in the company and improves relationships with customers and other key stakeholders.
The Novo Nordisk Way of Management provides a set of basic principles for how we conduct business. In addition, the Novo Nordisk Business Ethics Policy states that Novo Nordisk will
- Adhere to the principles of the UN Convention against Corruption
- Conduct business with integrity, honesty and professionalism
- Work against bribery in any form.
The policy is backed by three procedures covering ethical business conduct, product promotion and contracting with agents and other third parties. More about the procedures can be found here. The policy and procedures are endorsed by the Executive Management and the Board of Directors of Novo Nordisk.
Training and guidance
Doing business globally entails many challenges, particularly when working in diverse cultures where appropriate business conduct can vary widely. Making the right choices becomes more complex – and more important – in the pressures of a competitive business environment.
The Business Ethics programme provides guidance to employees on how to live up to the Business Ethics Policy through workshops, e-learning and other types of training. During 2006, training was provided to Executive Management and the Senior Management Board. All line managers within procurement and sales and marketing – a total of 297 individuals representing 79 countries – took part in workshops in which they were encouraged to examine the dilemmas around business ethics.
To illustrate some of the dilemmas that can be faced in the pharmaceutical industry, Novo Nordisk has created an online dilemma game, which can be tried out here.
In addition, all Novo Nordisk's managers and relevant employees in their units have completed an e-learning module on business ethics. This programme is now a mandatory part of new managers’ training. In 2006, nearly 2,700 employees (close to 10% of the total workforce) completed the e-learning programme, which is open to all employees.
A booklet: ‘Business and ethics’ has been developed to support internal training. In addition, a business ethics website for employees provides information, tools and other guidance.
Ensuring compliance
Group Internal Audit oversees compliance with the Business Ethics Policy and procedures. The audit team conducts both announced and unannounced reviews of business units worldwide. Business ethics is also included in regular facilitations that serve as audits of adherence to theNovo Nordisk Way of Management, including company policies. Concerns over possible breaches of ethical business conduct can be raised anonymously through a whistleblower mechanism via the Board of Directors’ Audit Committee and with no subsequent disciplinary or retaliatory action towards the whistleblower. Results from 2006 can be found here. Please see the section: Audit and whistleblower.
Measuring progress
As of 2007, the business ethics programme is part of the Corporate Balanced Scorecard against which individual managers’ performance is assessed annually. All country managers are evaluated based on their ability to undertake local risk assessment, develop a local procedure on business ethics and ensure continued training for all relevant employees.
