Novo Nordisk to assess suppliers' social performance
- January 2002
Novo Nordisk is extending its commitment to sustainable development with the launch of a formal evaluation of the social performance of the company’s suppliers.
For several years, the company has evaluated its suppliers’ environmental performance through a self-assessment of environmental practices provided by suppliers. Now the company is taking a similar approach in order to assess both the social and the environmental performance of its suppliers.
Suppliers and contractors are expected to ensure that their employees are adequately protected according to the United Nations Universal Declaration of Human Rights, which is considered universally binding by the UN.
A questionnaire, developed as part of a two-year project in consultation with suppliers around the world, will be the basis for an environmental and social evaluation of suppliers and contractors. The questionnaire includes the following issues:
- Wages and benefits
- Working hours
- Health and safety
- Child labour
- Forced labour
- Freedom of association and collective bargaining
- Discrimination / equal opportunities
- Disciplinary measures
- Privacy
Data will be compared on an annual basis. The goal is to build environmental and social considerations into the company’s supplier audits in the future.
The aim of the initiative is to improve the social and environmental performance of suppliers, not to terminate business. “Our goal is to create a climate of trust where suppliers feel free to approach Novo Nordisk with a problem so that we can work together with our suppliers to find a solution,” says Lise Kingo, Senior Vice President for Stakeholder Relations at Novo Nordisk.
Like ripples in the water, a company’s environmental and social impact extends beyond its own offices and factories to all the suppliers and contractors that help manufacture its products. If any of those suppliers and contractors fail to ensure a high level of social and environmental performance, those ripples can cause a huge wave of damage to a company’s image as well as set back the company’s goals to contribute to a more sustainable world.
“We believe that there is a strong link between good social and environmental performance and an efficient and successful business,” adds Kingo. “By working together with suppliers on these standards we will be able to meet current and future expectations of our customers and investors, and this will also be an important factor in managing risk in our supply chain.”
