Establishing integrity standards

Ensuring compliance with ethical and legal standards starts with encouraging a culture of integrity. The values and standards which define the Novartis approach and give our associates guidance in their daily work are defined in our values and behaviors, our Code of Conduct, our Policy on Corporate Citizenship and our five Corporate Citizenship Guidelines. In addition, this overarching framework for ethical business conduct is reinforced by means of policies and guidelines relating to particular business functions - such as the Promotional Practices Policy and Guidelines (NP⁴) of the Pharmaceutical Division.

Novartis business practice is governed by the principles embodied in our Code of Conduct, established in 2001. These set out the principles for ethical and legal behavior, professionalism and good business practice. As well as upholding the fair, courteous and respectful treatment of fellow associates, our code supports the protection of internationally proclaimed human rights and reinforces our commitment to the United Nations Global Compact.

The Novartis Code covers areas such as personal obligations, discrimination, conflict of interest, bribes, business entertainment and gifts, insider trading, compliance with the law and the use and protection of business assets and information.

New employees receive a copy of the Novartis Code of Conduct and adherence to the Code forms an integral part of employment conditions. Our associates are expected to conduct themselves in accordance with both the letter and the spirit of the code's principles.

Striking a balance between unified global ethical standards and respect for cultural and regional differences in business practice is one of the challenges Novartis faces. We tackle this through improved communication and the exchange of best practices. Every year, we organize regional meetings for Integrity & Compliance Officers in Latin America, Europe, Middle East, Asia-Pacific and North America. These meetings provide an opportunity to align activities and share knowledge and experiences related to our integrity and compliance program. In addition, ethical dilemmas are discussed, such as how to manage potential conflict of interests and local business practices.