Subject category:
Ethics and Social Responsibility
Published by:
IBS Center for Management Research
Length: 19 pages
Data source: Published sources
Topics:
Corporate social responsibility; Sustainable development; Corporate sustainability; Integrating sustainable development to business strategy; Striking the right balance between business and global health; Striking the right balance between compassion and competitiveness; Managing stakeholders; Business ethics; Triple bottomline; Shared value; 'Novo Nordisk Way of Management' (NNWM); Balance scorecard; Stakeholders map
Abstract
This case is about Novo Nordisk, one of the leading global health care companies. The case focuses on the various steps it took to evolve as a company with sustainable development as its key focus. Over the years, it introduced several sustainability related initiatives like the Novo Nordisk Way of Management and the Triple Bottom Line philosophy. A new sustainability strategy was developed for Novo Nordisk in the year 2000 which put global health at the centre of its sustainability initiatives. These initiatives led to the integration of sustainable development with the company’s business strategy. Novo Nordisk started selling some of its insulin products at a subsidised price in some of the poorest countries in the world. In the year 2010, it temporarily stopped the sale of its drugs in Greece when the government asked for a 25 percent reduction in the prices of all the medicines sold. The withdrawal affected nearly 50,000 people who were using its products there. Patients, the Greece government, and NGOs accused Novo Nordisk of putting profits before its responsibility toward society. The challenge before the senior management at Novo Nordisk was to strike the right balance between business and global health. This case has been written to facilitate classroom discussions for MBA/MS-level students as part of a corporate social responsibility / business ethics / strategy curriculum. This case is designed to enable students to: 1) Understand the main issues related to corporate social responsibility and sustainability and the various challenges faced by organisations regarding the impact of their operations on the society and environment; 2) Appreciate the importance of integrating sustainable development practices of a firm with its business strategy; 3) Understand a key contemporary issue facing health care companies - the compassion vs competitiveness dilemma; 4) Explore ways in which Novo Nordisk can strike the right balance between its business and global health.
About
Abstract
This case is about Novo Nordisk, one of the leading global health care companies. The case focuses on the various steps it took to evolve as a company with sustainable development as its key focus. Over the years, it introduced several sustainability related initiatives like the Novo Nordisk Way of Management and the Triple Bottom Line philosophy. A new sustainability strategy was developed for Novo Nordisk in the year 2000 which put global health at the centre of its sustainability initiatives. These initiatives led to the integration of sustainable development with the company’s business strategy. Novo Nordisk started selling some of its insulin products at a subsidised price in some of the poorest countries in the world. In the year 2010, it temporarily stopped the sale of its drugs in Greece when the government asked for a 25 percent reduction in the prices of all the medicines sold. The withdrawal affected nearly 50,000 people who were using its products there. Patients, the Greece government, and NGOs accused Novo Nordisk of putting profits before its responsibility toward society. The challenge before the senior management at Novo Nordisk was to strike the right balance between business and global health. This case has been written to facilitate classroom discussions for MBA/MS-level students as part of a corporate social responsibility / business ethics / strategy curriculum. This case is designed to enable students to: 1) Understand the main issues related to corporate social responsibility and sustainability and the various challenges faced by organisations regarding the impact of their operations on the society and environment; 2) Appreciate the importance of integrating sustainable development practices of a firm with its business strategy; 3) Understand a key contemporary issue facing health care companies - the compassion vs competitiveness dilemma; 4) Explore ways in which Novo Nordisk can strike the right balance between its business and global health.