An integrated approach

The business affiliates within each of our four divisions establish appropriate structures and resources to meet the aspirations of the Corporate Citizenship Policy. Divisions appoint Corporate Citizenship Officers, and Country Presidents ensure that corporate citizenship principles are implemented nationally.

Principles and standards: For each area of corporate citizenship, a set of standards guides implementation of principles; implementation is intended to be flexible to properly reflect local business conditions.

Assignment of responsibilities: Corporate citizenship responsibilities are included in the annual objectives and personal targets of Novartis associates.

Management processes: Training of associates, measurement and reporting are key processes to assess progress toward corporate citizenship implementation.

Reporting and measurement: Progress on corporate citizenship is assessed each year, and compliance with standards is measured. We report on our corporate citizenship progress in our Annual Report and in a separate Corporate Citizenship Review. We also issue a yearly Communication on Progress on our implementation of the 10 principles of the UN Global Compact and an online stand-alone report in accordance with the Global Reporting Initiative.

Conflicts of interest: Adherence to corporate citizenship principles may, on occasion, have a negative impact on short-term operating performance, in the form of foregone business opportunities, reduced revenues or increased operating costs. We have internal processes for handling such priority conflicts between corporate citizenship principles and operating performance.

Inquiries, complaints and remedial action: If employees are concerned that a corporate citizenship principle is being violated, they must point this out to their superiors, relevant Corporate Citizenship officer or to the Business Practices Officer (BPO). The BPO offers employees and external stakeholders alike a 'one-stop-shop' to which grievances and allegations can be submitted, without fear of reprisal or penalty. All complaints are investigated and reported to management, so that appropriate action can be taken.

Third parties: As a basic rule, Novartis seeks to exercise a degree of influence on the conduct of its contractors, suppliers and service providers, with respect to corporate citizenship principles. While we don't control their actions, we expect our business partners to meet certain minimum corporate citizenship requirements. These requirements are defined in our Third Party Code of Conduct and our Corporate Citizenship Guideline on Third Party Management. Preference is given to partners who adhere to such standards.

Independent verification: The corporate citizenship information published in our annual report - including Health, Safety and Environment - is verified by an independent assurance provider.