CASE STUDY:

EMBEDDING
SUSTAINABILITY AT
NOVO NORDISK
THE COMPASSION VS COMPETITIVENESS DILEMMA
 NOVO NORDISK
 Based in Denmark, Novo Nordisk, is a leading company in the pharmaceutical industry with 90 years of innovation and
leadership in diabetes care. It is characterized by a value-based, holistic approach to business, facilitated by an
ownership structure that is unique to the industry.
 Nova Nordisk employs approximately 31,400 employees in 74 countries, and markets its products in 179 countries. It
has a sales turnover of over of €3,900 million. (Wikipedia, 2018)
 WHAT IS CORPORATE SOCIAL
RESPONSIBILITY (CSR)?
The World Business Council for Sustainable Development defines corporate social responsibility as:

‘the continuing commitment by business to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their families as well as the
local community and society at large’.

CSR is often seen as a strategic response to pressure from stakeholders who may demand
corporations help in creating a better society.
(Jackson and Apostolakou, 2010)
 CONT’: CSR
 Generally CSR is a company’s responsibility taken for their environmental and social
impacts.

 Companies aim to promote social and environmental change or have positive

impacts on individuals, communities and ecosystems which are affected by the
company’s activities.

 It is a principle brands adopt on a voluntary basis.

 However, it is increasingly becoming a moral obligation in order to satisfy stakeholder

demands.
 THE MAIN ISSUES RELATED TO CORPORATE SOCIAL
RESPONSIBILTY (CSR) AND SUSTANABILTIY AT NOVO NORDISK
1. The late 1960s, Novo Nordisk face the first criticism in history. The issue was dust was generated
during the production process that has serious health effects of Novo workers. Sales fell between
1970 and 1971, 700 workers lost their job.

2. In the year 2010, Novo Nordisk temporarily stopped the sale of its drugs in Greece when the
government asked for a 25% reduction in the prices of all the medicines sold. The withdrawal
affected nearly 50,000 people who were using its products there.

3. Patients, the Greece government, and NGOs accused Novo Nordisk of putting profits before its
responsibility toward society.

4. Image of Novo Nordisk was tarnished.

5. The mere thought of patients being denied access to life-saving medicines by pharmaceutical
companies - either because the patients could not afford their medicines or because the
companies refuse to cater to a market as the government demanding price cuts.

6. The power the market vests on pharmaceutical companies which allows them to, at times, give
precedence to competitiveness over compassion.
 THE MAIN CHALLENGES FACED BY NOVO
NORDISK REGARDING THEIR OPERATIONS
TO SOCIETY AND ENVIRONMENT:

1. The challenge before the senior management at Novo Nordisk was to strike the right balance between business and global health.

2. The tension - between access to drugs and incentives for drug discovery - sits at the heart of the case.

3. Face with increased regulatory scrutiny and stakeholder activism.

4. The realization on the importance of keeping the interests of all stakeholders in mind.

5. To strike the right balance between compassion and competitiveness.

6. To keep focusing on producing products which did not affect the health of consumers and which were environmental friendly.

7. The importance of environmental protection that leads to reinforcing its commitment to sustainable development.
 TRIPLE BOTTOM LINE
• A triple bottom line measures
• The company's economic value
• "people account"– which measures the company's degree of social responsibility and
• the company’s "planet account" –which measures the company's environmental responsibility.

Companies should prepare three bottom lines – the triple bottom line – instead of focusing solely on its
finances, thereby giving consideration to:

1) company's social
2) economic
3) environmental impact.

Also called "TBL," "3BL," "People, Planet, Profit" and "The Three Pillars.”