HIGHLIGHTS
OF IMPLEMENTATION: 2005 The commitment by Novartis
to the UN Global Compact in 2000 led to a number of initiatives aimed at integrating
the vision and core values of the Global Compact into day-to-day company operations.
The Corporate Citizenship Steering Committee drove extensive internal consultations
with senior Group executives – as well as outreach to influential external stakeholders
– and identified key challenges likely to have a material impact on Corporate
Citizenship Policy. Many of those issues – ranging
from Fair Working Conditions and Human Rights, to Bribery, Gifts and Entertainment
and relations with Third-Party Suppliers have been addressed through guidelines
to the Corporate Citizenship Policy. Implementation of the Third-Party guideline
as well as so-called Living Wage standards accelerated during 2005. During
2005 Novartis reviewed health, safety and environmental activities – and labor
practices – of more than 30 000 Third-Party Suppliers with annual sales to Novartis
exceeding USD 10 000. We will ask these suppliers to maintain comparable social
and environmental values to our own. As a result of the initial review, pilot
on-site audits were conducted with 55 Third-Party Suppliers last year. Similar
on-site audits are planned for more than 400 other suppliers by 2010 to track
compliance with Group guidelines on Third-Party Management.
The issue of fair marketing practices has been addressed by establishment of a
set of principles governing promotional practices worldwide – and creation and
enforcement of Marketing Codes by all Novartis Divisions. |
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recent years, Novartis has intensified training programs for associates and further
progess was achieved during 2005. Compliance e-learning at Novartis is available
in 14 languages – setting a high standard among global companies. Courses
on the Code of Conduct, Corporate Citizenship and Conflict of Interest Policies
are mandatory for associates worldwide. In addition associates in certain functions
are required to complete additional courses in areas such as Competition Law and
Insider Trading. Mandatory courses in the fields of Human Rights and Sales/Marketing
will be introduced for certain functions this year.
During 2005, Novartis also moved to global implementation of a “Living Wage”.
The principle of paying fair wages that meet or exceed the amount needed to cover
basic living needs was outlined in our Corporate Citizenship Guideline on Fair
Working Conditions adopted by the ECN in 2002. Novartis is one of the first major
international industrial companies to implement such a commitment. (For additional
details, see page 64)
ANIMAL WELFARE
Last year, the ECN approved a global Animal Welfare Policy and named Professor
Paul Herrling, Head of Corporate Research, as the company’s Animal Welfare Officer
(AWO). The appointment of Professor Herrling consolidated
efforts of several internal organizations that previously monitored animal welfare
within the Group. Animal Welfare Officers have been appointed by each division
to oversee implementation of Novartis guidelines within company |
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– as well as by third-party partners to which Novartis outsources animal experiments.
Implementation of the animal welfare guidelines remains
the responsibility of line managers worldwide, who will report on compliance to
the AWO on an annual basis. Novartis complies with
all legislation on animal welfare and experimentation applicable to it. The Group’s
updated animal welfare policy – to be rolled out worldwide this year – establishes
minimum standards for studies conducted by Novartis, or thirdparty partners, in
countries where insufficient legislation is in place.
Discovery and development of new drugs involve animal testing for scientific and
ethical reasons. Animal testing is also required by law to determine the safety
and efficacy of new medicines before they can be tested in humans.
In line with our commitment to comply with currently applicable scientific, regulatory
and ethical requirements, studies at Novartis are carried out by individuals who
are trained and qualified in science, and the proper care, handling and use of
animals. Generally, these persons also have experience with the specific species
being studied. Novartis is committed to ordering and using only animals specifically
bred for research purposes – by the company itself, or by certified breeders. |
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