Disclosure on Management Approach: Economic
With headquarters in Denmark, Novo Nordisk has offices in 80 countries and markets its products in 179 countries.
Policy
Novo Nordisk strives to conduct its activities in a financially, environmentally and socially responsible way. This commitment is made in the company’s Articles of Association and in the Novo Nordisk Way of Management. For Novo Nordisk, being economically viable and responsible means managing the business in a way that ensures corporate profitability and growth, while leaving a positive economic footprint in the community.
Goals
We constantly strive to achieve competitive business results so that we can build a sustainable business. Strong business growth combined with productivity improvements in manufacturing, administration and corporate functions has in recent years enabled Novo Nordisk to increase investments in research and development as well as our presence in the marketplace to strengthen our long-term prospects.
Novo Nordisk’s economic stakeholder model illustrates its economic stakeholders and the interactions that drive economic growth in well-developed societies. This model serves as a management tool to better understand the role of the company in the global and local society.
A vital part of our socio-economic work addresses the economic implications of the diabetes pandemic in developed and developing countries. The disease hits doubly by impeding people’s productive abilities as well as being costly to treat and to provide care for. We believe that investing in health can free up resources for other social development purposes. This is particularly relevant for diabetes, where many studies - including several conducted by Novo Nordisk - show that the cost of not treating diabetes is much greater than the cost of proper treatment. With healthcare spending rising faster than GDP in many countries, governments are looking for ways to reduce direct healthcare costs. Socio-economic calculations provide evidence that investing in proper disease management reduces costs to both individuals and society due to fewer complications, higher productivity and increased quality of life. For more detailed information on Novo Nordisk’s economic performance in 2007, click here.
Monitoring
Novo Nordisk continually monitors its financial performance, and reports this on a quarterly basis. Looking beyond our direct economic impact, we are working with many policymakers and other influential stakeholders to advocate a more sustainable approach to tackling the diabetes pandemic. This means an increased focus on preventative measures, better education, earlier diagnosis and earlier, more effective treatment to delay the onset of complications.
In November 2007, Novo Nordisk and the International Diabetes Federation launched the Changing Diabetes Barometer. The Barometer is a tool developed by the company to measure and share worldwide progress – country by country – in the fight against diabetes on an annual basis. Its main output is a report covering the state of diabetes care. It is intended to help healthcare professionals, patient organisations, politicians, institutions and media to improve the quality of diabetes care, bring down diabetes-related complications, extend patients’ life expectancy and reduce costs.
Organisation
The TBL Leadership Forum is a body with a cross-cutting remit spanning Triple Bottom Line (TBL) performance, including the economic dimension of sustainability, with an aim to secure implementation and development of Novo Nordisk’s TBL strategy. The forum is chaired by Lise Kingo, executive vice president and chief of staffs.
