UN Global Compact

Novartis and the UN Global Compact

Novartis Communication on Progress

Find out how Novartis lives up to the 10 principles of the UN Global Compact.

The United Nations Global Compact was spearheaded by UN secretary general Kofi Annan in January 1999 to help achieve “globalization with a human face” and extend the benefits of globalization to all. It calls on business and other stakeholders to support 10 principles in the areas of human rights, labor, the environment and anti-corruption. The Global Compact has grown to become the world’s largest corporate citizenship initiative with more than 2,700 companies from over 80 countries.

Novartis was among the first signatories to the Global Compact (see our commitment to the Global Compact). On the day of becoming a member, in July 2000, Novartis chairman and CEO Dr Daniel Vasella stated: “Novartis would like to see the Global Compact become a catalyst for concrete actions by enterprises and nations. We are convinced that such a common effort will facilitate the transition to sustainable development.”

This initial commitment at the highest level started an internal conversation on our role and responsibilities as a good corporate citizen. It was also a decisive factor in embedding the values endowed by the Global Compact into our corporate culture, management systems and operations. For more information on how we are implementing the GC, see two case studies: Novartis and the UN Global Compact initiative and Opportunities and risks of the United Nations Global Compact.

Ever since, we have been an active player in Global Compact events, participating in dialogues and annual forums such as the UN Global Compact meeting in China in December 2005, giving a lecture on business and human rights and moderating a workshop on the same topic. We are also trying to facilitate the Global Compact Swiss Network to share experiences and learning with other Swiss companies.

Our Novartis Foundation on Sustainable Development (NFSD) has become a key ambassador to the Global Compact. In September 2005, Kofi Annan appointed Klaus M. Leisinger, president and CEO of the NFSD, as his Special Adviser on the Global Compact. Another acknowledgement of our commitment to the Global Compact came from the German Business Ethics Network, which awarded Novartis its “Business Ethics Award” for 2006.

Our commitment to the Global Compact ›

Novartis and the UN Global Compact initiative ›

The Global Compact is rooted in our company

Today, the Global Compact is embedded in our operations and we have established management systems to enable us to measure, monitor and report on our progress. We expect our employees to live up to its 10 principles and integrate its core values into their day-to-day work. As an example, corporate citizenship achievements and targets are integrated into the annual performance reviews of senior managers.

Yet, implementation of the Global Compact is an open-ended process. We are striving for continuous improvement, and we want to achieve a feedback-controlled management cycle that not only keeps the implementation alive but also constantly renews it by injecting impetus. Listening to our stakeholders provides such impetus as it informs our vision and values on society's evolving demands.

Two founding documents govern our responsibilities:

Our corporate citizenship policy defines our responsibility as a company
Our code of conduct defines the obligations of associates

All levels of management are charged with bringing the Global Compact to life:

Board of directors through the Audit and Compliance Committee
Executive committee through the Corporate Citizenship Steering Committee (chaired by Thomas Wellauer, Head Corporate Services)
Business divisions – pharma, vaccines & diagnostics, Sandoz (generics) and consumer health – through corporate citizenship organizations

Reporting

Transparent reporting is a central part of our commitment to the Global Compact. In addition to our yearly Communication on Progress, we issue a complete GRI "in accordance" report.

Below you will also find detailed 2006 information on:

Key performance indicators ›

Results of Corporate Citizenship-related projects in 2006 and targets for 2007 ›

Novartis acces-to-medicine projects 2006 ›