Compliance
In an increasingly complex business environment, stakeholder demands for transparency with regard to corporate behaviour call for the adoption of codes, standards and practices as well as more standardised reporting and regulations on disclosure.
While adherence to such standards should never evolve into mere box-ticking exercises, it will provide stakeholders with a certain level of assurance of corporate behaviour.
For the pharmaceutical industry in particular, there has been increased scrutiny of ethical business conduct and a call for closer regulation and monitoring of performance.
Financial reporting
Novo Nordisk is fully compliant with section 404 of the Sarbanes-Oxley Act, which requires detailed documentation of how financial reporting processes are designed and operating. Novo Nordisk met the requirements in 2005, one year ahead of the deadline, and was among the first companies outside the US to become compliant with this legislation. The Act requires Novo Nordisk to ensure that there are no material weaknesses in its internal controls that could lead to a material misstatement in its financial reporting. The company's conclusion and the auditors' evaluation of these processes are included in its Form 20-F filing to the US Securities and Exchange Commission.
Non-financial reporting
For the year 2007, Novo Nordisk has adopted the G3 Guidelines and reports at the GRI application level A+.
Novo Nordisk was one of the companies to pilot the first set of guidelines for sustainability reporting developed by the Global Reporting Initiative (GRI) and has since then reported ‘in accordance’ with the 2002 Guidelines.
Novo Nordisks supports the GRI – as an Organisational Stakeholder – and its initiatives to drive sustainability reporting. This includes support to the new G3 Guidelines and appreciation of the improvements it represents.
Furthermore, Novo Nordisk is a signatory to the United Nations Global Compact, a platform for encouraging and promoting good corporate principles and learning experiences in the areas of human rights, labour, environment and anti-corruption.
Novo Nordisk signed up to the United Nations Global Compact in 2001. In 2004 Novo Nordisk reaffirmed its commitment as signatory to the Global Compact, including the tenth principle, which was adopted in June 2004.
Annual General Meetings
In order to encourage openness and transparency, and involve as many shareholders as possible, the Novo Nordisk Annual General Meeting in 2006 was simultaneously translated into English through interpreters for the benefit of non-Danish-speaking attendees. It was also webcast live with presentations and interpretation in English. This is an effort to reach out to international investors who cannot vote but who may want to ask questions. It is planned that future AGMs will be conducted in the same manner.
Novo Nordisk’s approach
Novo Nordisk strives to communicate effectively with all its stakeholders and holds itself accountable to stakeholders for the company's performance. We maintain open, respectful, timely and transparent communication and reporting. The company's reporting on financial and non-financial performance meets current global reporting standards (such as IFRS and the GRI Sustainability Reporting Guidelines) and seeks inspiration from best practice. The accuracy, completeness and reliability of the information provided is verified through internal controls, independent audits and assurance.
As an international company listed on the stock exchanges in Copenhagen, New York and London, Novo Nordisk is in compliance with Danish, US and UK securities laws, with the Danish Recommendations on Corporate Governance, and in general with corporate governance standards in New York and London.
Compliance is supported by company standards and a set of management tools that drive and monitor performance. According to one of the Fundamentals: 'Every manager must establish and maintain procedures in the unit for living up to relevant laws, regulations, and group commitments.'
The Novo Nordisk Way of Management forms the values-based governance framework for the company. From Vision to policies, it explicates how values are put into action. It is sufficiently specific to guide decision-making, yet at the same time allows for the adoption of new supporting guidelines, policies or practices in response to evolving societal expectations or business developments.
The Novo Nordisk Way of Management also specifies the commitments to financial, environmental and social responsibility.
This includes subscribing to:
- The International Chamber of Commerce's Charter for Sustainable Development
- The United Nations Convention on Biological Diversity
- The United Nations Universal Declaration of Human Rights
- The United Nations Global Compact
