A business perspective

Respecting, protecting and fulfilling human rights is, first and foremost, the responsibility of the state and international community. But Novartis recognizes that it has an important role to play, in partnership with international organizations, nation states, NGOs and others, in respecting human rights.

In recent years, through initiatives like the United Nations Global Compact and as a result of changing societal expectations, the role of business in respecting and supporting universally recognized human rights has gained significance. Operating with integrity wherever we have a business presence is the right thing to do. In a globalized economy, creating conditions under which people feel secure and can prosper is in the interest of all enlightened citizens, including ‘corporate citizens’ with international operations. Adopting a ‘human rights-aware’ approach helps us better identify opportunities as well as manage exposure to risks, for instance in the case of practices that are not in line with the spirit of international norms although perceived as ‘normal’ in regions with divergent environmental, social and governance standards.

Novartis recognizes that developing a common understanding of the scope of business responsibility with regard to human rights is an ongoing process. In dialogue with others, we are continuously refining our thinking on how best to support human rights objectives.

We believe that our greatest contribution is made in the context of our normal business activities – namely the discovery and development of effective medicines. Bringing to market high quality, life-saving medicines, while obeying all laws and respecting international norms, paying taxes and providing safe workplaces and competitive pay, are important contributions to society.

Respect for human rights is integrated into our core business practice through the Novartis code of conduct. In addition we have developed corporate citizenship guidelines on fair working conditions, human rights, business conduct as well as on third party management which apply to all areas of our business.

To classify our human rights responsibilities, we use a three-tiered approach. The first level comprises ‘essential’ compliance requirements usually – but not always – enshrined in national law. The second level of human rights responsibilities includes those which can reasonably be ‘expected’ by society, such as the right to a decent standard of living. The third level comprises human rights engagement which is ‘desirable’, such as our philanthropic commitment to help eliminate leprosy. The Novartis human rights approach seeks to align all three levels.

As well as addressing the direct human rights impacts of their operations and those of their supply chains, global companies increasingly need to develop strategies for dealing with challenges specific to their sector, and any indirect effects which may arise from operating in regions with known human rights issues.

Novartis believes that good human rights governance is not only the right thing to do, but creates benefits for society and supports its license to operate, innovate and grow. In addition to enhanced compliance and better risk management, it promotes the rule of law and creates conditions of trust and transparency conducive to good business relationships. Being at the forefront of the debate ensures that an enlightened corporate point of view becomes part of the discourse. A positive corporate human rights balance sheet is also a source of motivation for employees and customers. It increases worker productivity and retention and improves management along the supply chain. Finally, it protects the brand image and helps in being recognized as a partner aligned with societal concerns.

Visit the United Nations Global Compact website

Learn more on the Novartis Corporate Citizenship guidelines

 

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