FTSE4Good recognizes Novartis for its corporate citizenship programs
Recognizing our significant commitment to corporate citizenship, the FTSE Group added Novartis into its bellwether FTSE4Good Global Index.
October 05, 2006 - The move identifies Novartis as a leading socially responsible corporation, and increases our visibility and attractiveness to individuals and asset managers looking to invest in such companies.
“This is a great honor for Novartis, and reflects our associates’ hard work and dedication,” said Thomas Wellauer, Head of Corporate Services, Novartis. “It spreads the word that Novartis is an innovative, top-performing company that practices the highest standards of corporate responsibility and ethical behavior.”
The FTSE4Good index assessed Novartis in five areas: environmental sustainability; stakeholder management; support of universal human rights; supply chain labor standards; countering bribery; and the marketing of breast milk substitute products.
Novartis met the overall criteria and specifically, with support from FTSE’s Responsible Investment team, Gerber – the infant and baby food business unit of the Novartis Consumer Health Division – developed a robust management process and global policy position in line with the World Health Organization’s recommendation on infant feeding.
“The FTSE4Good index is a driving force in encouraging companies globally to be more aware of criteria used for SRI. The measurable manufacturing and marketing of breast milk substitutes’ inclusion criteria has thus far only been met by Novartis and we hope that others will follow their lead,” said Mark Makepeace, chief executive, FTSE Group. “We are committed to encouraging responsible corporate behavior that enhances shareholder value, and we will continue to evolve the index series to include the best corporate social responsibility practices.”
The inclusion of Novartis in the FTSE4Good index is a testimony to the company’s overall efforts to integrate principles of corporate citizenship into its business strategy and operations. Thanks to its strong financial performance, Novartis has increased its access-to-medicines programs to reach approximately 6.5 million patients in 2005 with nearly USD 700 million of products donated or sold at cost. These initiatives range from drug-donation and research programs to combat neglected diseases like malaria, tuberculosis and leprosy in developing nations, to patient-assistance programs that help cancer patients globally receive the most innovative and effective treatments available.