Novartis Code of Conduct
At the Novartis AGM on 2 March 2018, questions were raised as to how Novartis‘ codes of conduct and ethics were documented.
Novartis has an excellent set of documents regarding correct manners of behaviour and high levels if integrity and ethics that are expected. These can be examined on their Internet site:
Unfortunately it appears that many bad actors are seriously damaging the reputation of Novartis. This has repercussions all the way to damaging the reputation of Switzerland.
Preet Bharara (former US Attorney, Manhattan (SDNY)) said in a speech that “Novartis is a repeat offender”. This was in response to repeated cases where Novartis stands accused in USA, and in some cases were convicted of giving kickbacks to medical professionals, and fined hundreds of millions of dollars. A similar allegation that Novartis now faces in Greece and some other countries.
A current case in the USA that became public in 2017, involving a Novartis executive who was terminated after reporting an incident apparently in accordance with Novartis Guidelines shows how policies can potentially be undermined:
GUIDELINE: Novartis is committed to building and maintaining a culture of integrity. We require associates to report actual or suspected violations of our Code of Conduct, but realize that fear of reprisals can make people hesitant to speak up. This is why we enforce clear policies to prevent retaliation against any associate reporting an issue.
„In the original complaint, Ada Demir (Supply Chain Management and Commercial Operations -Business Team Leader and Director Procurement) alleged that she’d reported to Sandoz’s business practices office that the company was “engaging in improper practices” that were not in compliance with FDA regulations.
The original complaint also claimed that Demir was terminated the next day, in retaliation for her reporting the alleged improper practices.“
https://law.justia.com/cases/new-york/other-courts/2017/2017-ny-slip-op-30304-u.html
Whether or not the case has any validity is for the courts to decide. Damaging however is that the news of retaliation and reprisal spreads by word of mouth like wildfire and undermines policies and terrifies employees. It destabilises the good intentions of the Novartis Policy and directs employees with issues along other avenues of seeking advice and whistleblowing. SUISHARE, the Swiss Shareholders Association being one of these avenues.
There must have been more circumspect ways of handling cases like this so as to build trust internally within the company and trust in its policies.
The Swiss Shareholders Association in discussions and studies with leading ethicists concludes that corporate governance can only be improved through better oversight, and trust of the employees.
