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.

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 the 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.

In 2005, one year ahead of requirements, Novo Nordisk was among the first companies outside the US to become 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 must ensure that there are no material weaknesses in its internal controls which 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.

With regard to non-financial performance, Novo Nordisk continues to report in accordance with the Global Reporting Initiative' 2002 Sustainability Reporting Guidelines Initiative's (GRI's) and in support of the Global Compact.

This page has been assessed by PricewaterhouseCoopers as part of its assessment of Novo Nordisk’s statement that it reports ‘in accordance’ with GRI. Please refer to Audit and assurance for a full description of the nature of assurance offered.