LiseKingo, Executive Vice President, Chief of Staffs, Novo ... · LiseKingo, Executive Vice President, Chief of Staffs, Novo Nordisk A/S . Nordic Investor Relations Conference 18

Date

1

Stakeholders at stake

- lessons learnt, challenges and

business opportunities

Lise Kingo, Executive Vice President,

Chief of Staffs, Novo Nordisk A/S

Nordic Investor Relations Conference 218 June 2008

Key points

When societal agendas interfere with business1

Inspiration for your journeys4

Harnessing the potential3

Lessons learnt from stakeholder engagements2


When societal agendas interfere with business

1


Are you prepared to face your stakeholders?

”We shall seek an active dialogue with our stakeholders to help us develop and strengthen our business.”Novo Nordisk Way of Management

Presentation title Date


Stakeholder demands put pressure on the pharmaceutical industry

Research &Development

Sales &Marketing

ProductionStakeholderneeds

Stakeholdersuccess

Innovation andbusiness model

Healthcare cost containment

All-time lowstakeholder trust


Sustainability competitionin the pharma industry

Source: The Sustainability Yearbook 2008,PricewaterhouseCoopers and SAM Sustainable Asset Management


Lessons learnt fromstakeholder engagements

2


Defining moments shaped our approach

THEME RESPONSE DRIVER

Enzymes and allergy risks

Expert consultations

License to operate

Green Consumer Guide

Stakeholder dialogues

License to innovate

South African court case

New business approaches

Social responsibility

Oil for Food and business ethics

Policies and global standards

Compliance and competitiveness

UN Resolution for Diabetes

Coalitions for social change

2002

90’s

2007

60’s

2005

Leadership

Human health and safety

Nature protection

Social justice/econ. growth

Globalisation

Partnerships for sustainability

EVENT


Evolution of stakeholder engagement

Suppliers

1990 20001970

Novo Nordisk InvestorsCustomers

Regulators

Novo Nordisk

InvestorsCustomers

NGOs

Media

National authorities

AcademiaTrade orgs

DoctorsPatients Employees

Insurance companies

Local community

Int’lregulation

Customer-driven

Stakeholder management

Reflective paradigm

Suppliers


The Triple Bottom Line business principle

Socially responsibleEmployees, patients, communities

Environmentally soundEnvironment, use of animals, bioethics

Economically viableCorporate growth, socio- and health economics

Patients

The company seeks to conduct its business in a financially, environmentallyand socially responsible way’

Articles of Association for Novo Nordisk A/S, objectives


Our response: Dealing with dilemmas


Stakeholder engagements build long-term value for shareholders

Create opportunities for the future

Manage the business today

Involve stakeholders

Develop internal competencies

Growth tracks

New directions

Reputation

Legitimacy

Costs

Risk mitigation

Innovation

Repositioning

Source: Stuart Hart (2005)


Harnessing the potential

3


Challenge #1:The pandemic growth in diabetes

0

50

100

150

200

250

300

350

North

America

Europe Japan &

Oceania

Int’l Opera-

tions

Rapid increase in number of people with diabetes

Source: Diabetes Atlas, third edition, Int. Diabetes Federation, Dec. 2006.

Note: Data cover the 20-79 age group.

2007: 246 million

2025: 380 million

2007 2025


Facilitate dialogue and build consensus

Build the case

Campaign for the need

to act

Impact sustainable change

Changing diabetes®

Find new solutions for sustainable health policy development in cooperation with stakeholders

Call for the urgent need for change and action on the UN Resolution

Promote increased measurability and transparency

Provide examples of sustainable change through implementation and better practice sharing

Our response: Changing diabetes®


We actively support the UN Declaration on Diabetes


We put diabetes on the global agenda

“If we fail to act, we will not be forgiven by the people who live shorter and poorer lives than they deserve.”

Bill Clinton New York, 13 March 2007


Challenge #2:Adapting to global climate change


We take leadership and prepare for a carbon-constrained future


And we engage in global advocacy


Winning through partnerships

• Identify what is material to your business• address themes of concern to stakeholders

• Define long-term targets

• find shared interests and common success criteria

• Build mutual trust and transparency• show respect by being prepared to deal with dilemmas

• Set the agenda

• win influence and attention

• Create long-term value to shareholders

• be accountable to shareholders and to stakeholders


Accounting for performance - in one report


A sustainable business model

Employee engagement

Customer access and loyalty

Contribution to

society

Triple Bottom Line

Distinct company reputation

More innovation, better treatment outcomes

Higher share and profits

Successful organisation

6

2

34

5

1


Inspiration for your journeys

4


Corporate responsibility goes mainstream

“Done badly, [CSR] is often just a fig leaf and can be positively harmful.

Done well, though, it is not some separate activity that companies do on the side, a corner of corporate life reserved for virtue: it is just good business.”

The Economist CSR survey, January 2008


Getting started – and keeping momentum

• Make it clear what you want to achieve from stakeholder engagements• describe the value you expect to gain for the business• define criteria for measuring success

• Frame a stakeholder engagement strategy and policy• set up a process (method and criteria) to identify and prioritise

stakeholders• determine how top management and board is involved/informed• set up ways to use stakeholder feedback in decision-making processes

• Appoint a responsible team, with strategic anchor, mandate and competencies

• consider if/when it could be useful to have a 3rd party as an intermediary

• Choose the most appropriate forms of engagement• make a situational judgment: personal meetings, reports, webcasts,

panels, analyses, questionnaires, networks, partnerships etc. • Share your experience – internally and externally

• develop tools and processes for systematic sharing of learning • take part in networks – locally and internationally


Thank you for your attention!

“Be the change you want to see in the world.”

Mahatma GandhiPolitical and spiritual leader,

India (1869 - 1948)

Documents

LiseKingo, Executive Vice President, Chief of Staffs, Novo ... · LiseKingo, Executive Vice President, Chief of Staffs, Novo Nordisk A/S . Nordic Investor Relations Conference 18