Promoting integrity standards

Our commitment to high ethical standards demonstrates how we conduct business. In addition to setting standards, however, it is necessary to cultivate a culture of integrity by ensuring that ethical considerations are reflected in business objectives, that good conduct is rewarded and that senior management leads by example.

 

Leadership

Novartis dedicates particular effort to nurturing ethical leadership. It is our firm belief that a culture of integrity can only be achieved when senior management sets the right tone, leads by example and cultivates a speak-up culture which encourages associates to address ethical aspects in the workplace and when they make decisions.

Our leadership training programs are meant to help managers to balance ethical, economic and legal considerations in order to make responsible business decisions. In 2008, we are planning to roll out a training on integrity issues specifically targeting new managers.

 

Objectives and incentives

Adherence to our values forms an explicit part of the annual performance appraisal of all associates. Values and behaviors, including integrity, are evaluated during appraisals. The 'integrity track record' of associates in positions of substantial authority prior to recruitment and promotion is screened.

 

Training and guidance

An important way to maintain a culture of ethical business practice and improve compliance, is through training and communication, supported by an infrastructure which provides guidance and advice. All Novartis employees are required to undertake e-training on integrity and compliance. Courses are mandatory, including for Executive Committee and Board members. The training material covers topics such as our Code of Conduct, conflicts of interests, marketing codes. Training is offered in a range of formats, including e-learning and face-to-face programs and workshops.

In 2007, new e-learning courses in 14 languages were launched, covering topics from data protection and records management to insider trading and compliance with sales and marketing. As well as
e-learning, a number of live training sessions were performed relating to conflicts of interest in sales and marketing practices. In total, 202 100 training courses were completed, amounting to 151 575 training hours. We maintain a training record for each associate.

In 2008, training will be provided for Integrity & Compliance Officers in dilemma resolution and best practice to assist associates in the interpretation of company codes and standards. A completely revamped Integrity & Compliance Intranet site will be launched during the year. The site currently provides information on the Integrity & Compliance program, available e-trainings, frequently asked questions and features examples of misconduct. A specific Intranet site for promotional practices, meanwhile, supports the country organizations by providing training material, self-assessments and other tools relating specifically to ethical issues in sales and marketing.

Targets for 2008 include expanding e-learning courses addressing risk areas which have been identified through the analysis of misconduct cases. In addition, we will launch training programs for new managers and include integrity considerations in the Novartis Leadership Training Program to develop skills of managers to balance ethical, legal and economic considerations in decision-making.