Novo Nordisk’s corporate governance framework integrates the commitment to sustainable development from board level through to operational units and individual employees. It provides a robust framework for a management system where in a twoway process strategic objectives, targets and key performance indicators are defined,monitored and evaluated.

Novo Nordisk’s strategy for sustainable development is founded on the Values, Commitments and Fundamentals expressed in the Novo Nordisk Way of Management, which consists of three elements: our Vision, the Charter and our Policies.

The Novo Nordisk Way of Management
(click to read)

The Novo Nordisk learning curve 
(click to see illustration)

Our commitment to the Triple Bottom Line means that we will ensure social and environmental responsibility as well as financial viability.

The Novo Nordisk Way of Management explicitly refers to the Triple Bottom Line, including the commitment to the ICC Business Charter for Sustainable Development, the United Nations Convention on Biological Diversity and the United Nations Universal Declaration of Human Rights. More recently, Novo Nordisk has also become a signatory to the UN Global Compact.

Furthermore, the targets for social responsibility, bioethics and environmental performance, and collaboration with key stakeholders in the diabetes care world, are included in the  corporate Balanced Scorecard. Hence, these issues are channelled down the organisation in relevant departments.

As a consequence, a number of individuals in Novo Nordisk have personal targets related to social, bioethical and environmental issues.

It is the job of every single employee to translate the Vision, the Charter and the Policies into action. However, a particular responsibility for keeping the company’s actions attuned to stakeholders’ demands lies with the Board of Directors, Executive Management and cross-organisational committees. Three committees, each chaired by a member of Executive Management, have specific responsibilities for sustainable development:

• The Environment and Bioethics Committee
• The Social and Industrial Relations Committee
• The Health Policy Committee

These committees’ tasks are to identify issues, establish and revise policies, and devise strategies, targets and action plans within their specific areas. Triple Bottom Line issues are reviewed twice a year at the Board of Directors’ meetings.

For many years, Novo Nordisk has applied principles of good corporate governance that support our business and offer stakeholder value. These are embedded in the entire culture that strives to establish and maintain good governance at all levels of the organisation.

Novo Nordisk is organised under Danish law as a public limited liability company. As such we have a two-tier board structure consisting of the Board of Directors and Executive Management. The Board of Directors monitors the performance and participates in defining the strategy of the company, its management and organisation on behalf of the shareholders. It has nine members, of whom shareholders at the annual general meeting have elected six, while three have been elected by and among Novo Nordisk employees in Denmark. Executive Management has responsibility for the company’s daily operations. The two bodies are separate, and no one serves as a member of both.

For a more detailed overview of the principles regarding organisational structure, responsibilities of board members, remuneration and annual assessment of the Board of Directors and Executive Management, risk management, internal control and independent audit, see the Annual Financial Report.

Three methods are employed to measure and evaluate our performance against the Triple Bottom Line. First, the Balanced Scorecard enables the embedding of the Triple Bottom Line approach in the organisation.

From the corporate scorecard, key strategic objectives are carried into the scorecards of business areas, through to senior vice president level.

Second, the annual sustainability report provides an account of our performance on the Triple Bottom Line, and is assured by independent external experts.

Third, the team of facilitators are setting particular focus on environmental, bioethical and human rights issues as part of their regular organisational audits and facilitations.

The facilitator function is a unique set-up in the Novo Group, organisationally residing with Novo A/S, the holding company, to ensure independence of the business. Its initial objective was to provide insight into the performance of the company worldwide and to facilitate organisational learning – held up against the Charter.

More recently, the facilitators’ role has evolved to include more process-oriented areas, helping to align projects with business targets.

The team of facilitators is a global, virtual team of 16 experienced men and women with an international background, recruited from managerial or expert positions within the Novo Group. Hence, the facilitators’ work not only puts management practices under scrutiny; it also helps share better practices.

On average, each organisational unit is facilitated every four years. During facilitation, employees are interviewed on how they perceive the quality of their daily management and how it reflects the Novo Nordisk Fundamentals. This method offers a high degree of validity to the analysis and helps ensure that all significant aspects are considered.

The recommendations are brought forward in a written report with action points for the management to improve the unit’s work. Subsequently, the facilitators follow up on action points and compliance is high; 95% of action points planned for 2002 were fulfilled.

In spring 2002, Stakeholder Relations was made a corporate management responsiblity, headed by Lise Kingo reporting to Lars Rebien Sørensen, president and chief executive officer of Novo Nordisk. By incorporating Stakeholder Relations into the Executive Management of the company Novo Nordisk demonstrates its strong commitment to sustainable development as part of its strategic business agenda.

Stakeholder Relations drives, challenges and monitors the Triple Bottom Line strategy in Novo Nordisk and helps the business implement new activities. Its task is to keep the company alert to new trends in sustainable development that may affect the company’s future business performance, and to help management understand and manage the new, complex business agenda.

Hence, interaction with key opinion leaders and other critical stakeholders is among the unit’s main activities as are developing practices and reporting and communicating on Triple Bottom Line issues.