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Business strategies to reach new markets, new customers

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Title: Business strategies to reach new markets, new customers


1
Business strategies to reach new markets, new
customers
  • Universitas Comeniana Bratislavensis
  • Dr. Brigitte Monsou Tantawy

2
Business strategies to reach new markets, new
customers
  • Companies to be analysed

3
List of companies
  • Anglo-American
  • Cemex
  • Eskom
  • Grupo-Nueva
  • Holcim
  • Nestlé
  • Novartis
  • Novo Nordisk
  • PG
  • Philips
  • Unilever
  • Toyota
  • Vodafone

4
Business strategies to reach new markets, new
customers
  • Pre-work questions

5
Instructions
  • Prepare six to twelve slides to summarise key
    information about the organisation you analysed
    using the following slides for guidance.
  • Where possible, provide at least three years
    trend data.
  • During the module you will be asked to share your
    information with the group

6
Company profile
  • Please consider
  • Financial information Turnover, profit, assets,
    earnings per share
  • Organisation Business units, number of
    employees, structure, countries with
    manufacturing presence, countries with support
    services (such as the HQ and RD), extent of
    outsourcing
  • Core business Breakdown of products and
    services, main customers served
  • Governance Vision, mission, values, code of
    ethics
  • Strategy Key objectives, messages used to
    attract investors, extent of social
    responsibility, changes over time

7
Sustainability profile
  • Please consider
  • Stakeholders Which ones, how identified, how
    engagement is achieved
  • Risks opportunities How are they identified,
    managed
  • Carbon Does the company engaged in CDP, is the
    carbon footprint disclosed
  • Natural resources, including water does the
    company use life cycle management
  • Measures Have sustainability metrics been
    defined, do they align with the business risks
    and stakeholders needs, how long have the
    results been tracked
  • Reporting Types of external report produced
  • Assurance Is an external assessment performed,
    how do the results compare with GRI and Global
    Compact, has there been any external recognition
    (such as an award or ranking (e.g. DJSI,
    FT4Good, BiTC, etc)

8
Environmental Social Impact
  • Please consider
  • Strategy Affordability and accessibility of
    products and services, contribution to millennium
    development goals
  • Scope of activities Donations to charities,
    sponsorships, core business
  • Cash added value Who benefits and to what
    extent, e.g. Shareholders, employees,
    re-investment, society
  • Local economic impact
  • Investment in local employees Number of local
    people in management positions, ratio of
    activities conducted locally
  • Investment in local suppliers Use of suppliers
    and partners, extent of value chain
  • Investment in local infrastructure
  • Use of natural resources, biodiversity
  • Exploitation of new markets
  • What products and services have been developed to
    address the bottom of the pyramid
  • Is there any investment in renewable energy

9
Case analysis
  • Key points to consider
  • Understand the current strategy of the
    organisation and how it has evolved in the past
    years
  • Understand the benefits of the business model in
    addressing new markets
  • Understand the challenges faced by the
    organisation
  • Understand the contribution to the MDGs, the
    impact on local economic development

10
Comparison of cases
  • Group 1
  • Danone
  • Grupo Nueva
  • NovoNordisq
  • PG
  • Philips
  • Group 2
  • Cemex
  • Nestlé
  • Toyota
  • Vodafone
  • Group 3
  • AngloAmerican
  • Eskom
  • Holcim
  • Novartis
  • Unilever

11
Comparison of cases
  • Key points to consider
  • Compare the strategies, business and
    sustainability, and their evolution
  • Understand analogies and differences is there an
    impact of sector, geography, culture,
  • What are the risks? The opportunities?
  • Identify the drivers of success
  • How the strategies are successful, reaching the
    Poor and addressing the MDGs?
  • Could you predict which one will be more
    successful and why?

12
Business strategies to reach new markets, new
customersAnglo-American case
13
Company profile
  • Anglo American is a global leader in mining,
    focused on adding value for shareholders,
    customers, employees and the communities in which
    the Group operates.
  • Turnover 33,072m (9), operating profit 9.8bn
    (54), assets 27,127m (-2), Underlying
    earnings 5.5bn (46) Earnings per share 4.22
    (73)
  • Number of employees 125000, in over 45 countries
  • Industry Mining platinum, base metals, ferrous
    metals, coal and industrial minerals
  • Mission - To be the leading mining company of
    choice
  • Highest performing assets
  • Maximise our share of profitable industry growth
  • Set the standard for the industry in safety
  • Preferred partner for governments and communities
  • Supplier of choice for customers
  • Best developer of talent and employer of choice
    in the industry
  • Key Issues
  • Safety - One incident is one too many
  • Climate Change
  • Risks growth increases energy demands, carbon
    costs / caps, power shortages, markets for coal
  • Opportunities energy efficiency, CDM projects,
    coal bed methane generation, clean coal
    technologies
  • Stakeholders - Potential for high impacts on our
    neighbours - host and home governments are
    partners
  • Distribution of Benefits - All key stakeholders
    should benefit from mining

14
Sustainability profile
  • Report to Society produced, moving towards
    reporting in accordance with GRI guidelines
  • Assurance by KPMG in accordance with the
    International Standard on Assurance Engagements
    3000 Assurance Engagements other than Audits or
    Reviews of Historical Information issued by the
    International Auditing and Assurance Standards
    Board.
  • We are in the process of reviewing our
    sustainable development policy framework to
    ensure consistency and ease of application across
    the Group.
  • Safety and Sustainable Development (SSD)
    Committee meet five times per year. The chief
    executives of business units and the heads of
    functions participate in a Sustainable
    Development Council which oversees strategy,
    targets and resource allocation.
  • Key channels for stakeholder engagement in 2006
  • Investors - results presentations and road shows,
    annual presentations, sustainable development
    presentations, bilateral meetings and surveys
  • Governments - Direct engagement and through
    industry associations, national partnerships,
    international partnerships
  • International organisations - Membership of UN
    Global Compact, ICMM, WBCSD and Global Business,
    Coalition on HIV/AIDS, EITI, Voluntary Principles
    on Security and Human Rights.
  • Dialogue with the International Finance
    Corporation, the World Bank and UN Communities
    Community engagement plans, SEAT, various public
    forums and meetings, impact assessments,
    complaints procedures and whistle-blowing
  • Contractors and suppliers - Commercial
    interactions, tender and compliance processes,
    open days, safety inductions
  • Customers - Commercial relationships, complaints
    procedures, surveys
  • NGOs - Engagement on specific issues, involvement
    in partnerships (e.g. on transparency,
    biodiversity, human rights or HIV), memberships,
    social investment
  • An integrated risk management system, which
    includes sustainable development issues, is in
    use to identify and manage key risk areas.
  • 86 of businesses certified to ISO 14001

15
Social Impact
  • Our business success brings with it obligations
    of good stewardship and ethical behaviour. Our
    operations will perform better when the
    communities surrounding them are stable and
    prosperous. Conducting business now with an eye
    to the needs of the future is the essence of
    sustainable development. Tony Trahar, Chief
    Executive
  • Donations to charities, sponsorships - Global
    spend by cause supported (million)
  • Health/HIV 5.7m
  • Education and youth 12m
  • Environment 1.6m
  • Community development 14.8m
  • Arts, culture and heritage 2.6m
  • Housing 2.6m
  • Other 11.0m
  • Social Agenda
  • Key challenges
  • Growing stakeholder expectations
  • Resource nationalism / distribution of benefits
  • Resettlement
  • Strengths
  • Sector leading tools and initiatives
  • Engagement in key international fora
  • Human resource development
  • HIV/AIDS programmes

16
Business strategies to reach new markets, new
customersCemex case
17
Company profile
  • 2006 Net sales 18.249 billion (19),
  • EBITDA 4.138 billion (16),
  • ROCE 11.9(0)
  • 3 Global Business Lines Cement, Ready-mix
    concrete, aggregates
  • Executive Board of 6 Exec, 11 independent
  • 50 countries, 2724 operating sites, 50,000
    employees
  • Celebrated 100 years of growth in 2006

18
Company profile
  • Keys to continued success
  • First, we need to continue to build an integrated
    platform across our industrys value chain in key
    markets around the world.
  • Second, we need to continue to focus on
    developing our managers and employees.
  • Third, we need to enhance the sustainability of
    our business.
  • Values
  • We strive for excellence in our performance,
    developing long-term relationships built on trust
    and our essential values of collaboration,
    integrity, and leadership.
  • Collaboration Work with others in a collective
    pursuit of excellence
  • Integrity Act honestly, responsibly, and
    respectfully toward others at all times
  • Leadership Envision the future and focus on
    service, excellence, and competitiveness

19
Sustainability profile
  • Our contribution to sustainable development is
    at the very heart of our ambitions Lorenzo H.
    Zambrano, Chairman of the Board and Chief
    Executive Officer
  • Our principles of sustainability drive us to
    employ cutting-edge technology ensure energy
    efficiency and optimum use of raw materials
    promote a culture of environmental awareness,
    safety, and integral health and use the most
    effective equipment and systems to protect our
    people and the environment.
  • We need to enhance the sustainability of our
    business. This means different things to
    different people. For our customers, it means
    offering innovative value propositions in every
    market we serve. For the communities in which we
    operate, it means being a good neighbor and a
    good environmental steward. For our employees, it
    means striving for zero-accident work
    environments, providing competitive compensation
    and benefits, and offering exciting career
    development opportunities. We know that we will
    only prosper as a company if our stakeholders
    prosper.
  • We have a SVP Sustainability who reports to the
    EVP Development
  • As a member of the WBCSD, we are one of 10
    leading cement companies to participate in the
    Cement Sustainability Initiative (CSI), a project
    that explores ways for our industry to meet the
    needs of the present without compromising the
    ability of future generations to meet theirs. The
    CSI has agreed on a set of key performance
    indicators (KPIs) for reporting on the main
    sustainability challenges faced by our industry.
    We are also participating in the Energy
    Efficiency in Buildings (EEB) project, which help
    our sector and other related industries to
    address the challenges of sustainable
    development.

20
Sustainability profile
  • We became a United Nations Global Compact
    signatory in November 2004.
  • Six key areas where we can contribute to a more
    sustainable society
  • Climate protection
  • Fuels and raw materials
  • Employee health and safety
  • Emissions reduction
  • Local impacts
  • Internal business processes
  • Environmental reporting since 1995,
    sustainability reporting since 2003
  • 15 stakeholder groups identified
  • External and stakeholder review of past reports,
    considering external assurance for future reports
  • Global Reporting Initiative G3 guidelines to
    produce sustainability report, which meets
    application level B.
  • Targets
  • 25 reduction in CO2 emissions per metric ton of
    cement product by 2015, from 1990 baseline
  • 10 alternative fuels substitution by 2015 15
    by 2020 (Alternative fuels, including biomass,
    already provide 25 of the total energy used in
    our European cement plants)
  • 5 biomass fuels substitution by 2015 8 by 2020
  • 12 alternative raw materials substitution by
    2015 15 by 2020

21
Social impact
  • CEMEX is a pioneer in the implementation of
    responsible initiatives that improve the
    livelihood of people, contribute to the economic
    development of communities, and make good
    business sense Djordjija Petkoski, Head of
    Business, Competitiveness, and Development, World
    Bank Institute
  • CEMEX in Mexico is sharing its knowledge,
    experience, and practices in social
    responsibility with small and medium sized
    enterprises (SMEs) We run the program in
    partnership with the Inter-American Development
    Bank (IADB) and the Anáhuac University. CEMEX and
    the IADB have contributed most of the resources,
    and the University provides specialized
    consultancy.
  • Around 88 of purchases come from locally-based
    suppliers in the countries where Cemex operate
  • Donated more than US35 million in social and
    charitable donations gt1.2 of pre-tax income
  • 93 of sites worldwide have formal Community
    engagement plans
  • Our community offices have served more than
    160,000 families through our Patrimonio Hoy
    program. In 2006, CEMEX received a World Business
    Award for our contribution to sustainable
    development through Patrimonio Hoy.
  • We have helped more than 20,000 families rebuild
    their homes following hurricanes and other
    natural disasters

22
Business strategies to reach new markets, new
customersDanone case
23
Company profile
  • 2006 Net sales 14.073billion (9.7),
    Underlying Net Income 1.194billion (15.8),
    EPS 4.88 (17.9)
  • 3 Global Business Lines Dairy Products (56),
    Beverages (28), Biscuits (16) and 3
    Geographical Areas Europe (61), Asia (17),
    Rest of World (22)
  • Executive Board of 9 people CEO, EVP, 3 Business
    Lines, Finance, HR, RD, Development and Strategy
  • 120 countries, 201 manufacturing sites, 88 184
    employees
  • 4 Brands of nearly 1bn and local brands

24
Company profile
  • Business strategy meets sustainable development
    to create DANONE Way, a unique social model that
    has the full support of the Management Committee
  • DANONE Way handbook, 30 indicators and DANONE Way
    audits after 5 years 94 of deployment
  • Code of Business Principles from 1997
  • Values
  • Openness
  • Enthusiasm
  • Humanism
  • Proximity
  • Financial objectives
  • Like-for-like sales growth of 6 to 8
  • EBIT to grow faster than sales 7 to 10
  • EPS growth gt 10

25
Sustainability profile
  • 1972 Founders speech The dual commitment to
    business success and social progress
  • New Social Responsibility Committee and Social
    Innovation Committee to select innovative social
    projects
  • Focus on Food Safety and Quality, Nutrition and
    Health
  • DANONEs Food, Nutrition and Health Charter from
    2005
  • Nutritional labelling and consumer information
    services
  • Eco-efficiency, eco-innovation, Sustainable
    Agriculture
  • New initiative RESPECT for suppliers

26
Sustainability profile
  • Key partnerships
  • UNICEF
  • Planète Urgence
  • GAIN (Global Alliance for Improved Nutrition)
  • Ramsar
  • World Food Program
  • WWF
  • Environmental and social reporting for 9 years
  • Measures - environmental, - social (3 years
    trends and target),
  • Measure of impact of no measure on packaging, on
    transport
  • External assurance by PWC and Mazars Guérard
  • Template with GRI indicators
  • Include in the food industry category of the Dow
    Jones Sustainability Indexes (DJSI) for the past
    7 years

27
Social impact
  • 16.7 millions for communities
  • Grameen Danone Foods Ltd in Bengladesh
  • Danone works with 11 250 milk producers and 3 800
    through cooperatives in 19 countries
  • Social audits

28
Business strategies to reach new markets, new
customersEskom case
29
Company profile
  • Electricity generation and distribution, wholly
    owned by South African Government
  • Financial information Revenue R36,607m, profit
    R4,635m, assets R128,152m
  • Vision - "Together building the powerbase for
    sustainable growth and development."
  • Values
  • Integrity
  • Customer Satisfaction
  • Innovation
  • Excellence
  • Strategic Objectives 
  • Quality and continuity of supply
  • Capacity expansion
  • Funding and financial resourcing
  • Eskom's Ten Ethical Principles
  • Perform your duties with honesty, integrity and
    to the best of your ability.  Do not allow anyone
    to be misled.  Communicate openly and honestly,
    and demonstrate a sense of purpose and commitment
    to achieving the optimum outcome, even under
    difficult circumstances.
  • Treat people with fairness, courtesy and
    sensitivity with respect to their rights.  Have
    respect for diversity.
  • Accept accountability for your actions and
    decisions.
  • Behave in a way which is above reproach.
  • Comply with all the rules, procedures and
    regulations that apply to Eskom, its system and
    the way Eskom conducts its business.
  • Use information obtained from Eskom only for the
    purpose for which it is intended.

30
Sustainability profile
  • The annual report contains some information
    related to sustainability and CSR
  • An index to the 2006 Annual Report based on the
    Global Reporting Initiative (GRI) sustainability
    reporting guideline criteria and the 10
    principles of the UN Global Compact is provided
  • Eskom reports to stakeholders on the basis of the
    triple bottom-line economic, environmental and
    social.
  • Eskoms sustainability strategy acknowledges the
    guiding principles adapted from the
    Sustainability in the Electricity Utility Sector
    reports published by the WBCSD.
  • Eskom was benchmarked against 17 reports from
    South African and international energy, water and
    resource sectors, all acknowledged as leading
    examples of integrated sustainability reporting.
    Eight integrated reports from electricity
    utilities were included. The exercise highlighted
    several opportunities to for improvement, which
    are now being addressed.
  • Stakeholders
  • Eskom values constructive dialogue and
    relationships with stakeholders. Ongoing
    interaction enables the business to improve
    customer service, satisfy stakeholder needs, meet
    regulatory requirements and play a more
    significant role as a catalyst for economic
    growth and nation-building. Eskom has a formal
    and continuous programme of engaging with
    specific groups of stakeholders and addressing
    issues that are critical to the execution of its
    business strategy.
  • The Eskom sustainability performance index uses
    21 selected technical, economic, environmental
    and social measures and compares performance to
    set parameters, both short and long term.
  • Signatory of the UN Global Compact
  • Environmental/safety performance for
    2006             
  • Specific water consumption by power stations,
    l/kWh Target1,32   Actual1,27   
  • Relative particulate emissions, kg/MWh
           Target0,21   Actual0,26    
  • Carbon dioxide emissions, Mt       Target203,7 
    Actual247,0    
  • Radiation release, milliSieverts
    (mSv)     Target  0,0049   Actual0,0079   
  • Disabling injury incidence rate, index      
    Target 0,40  Actual0,457    
  • Work-related fatalities, number       Target
    10    Actual19  

31
Social Impact
  • Eskom was assessed in 2006 against the criteria
    of the JSE Socially Responsible Investment (SRI)
    Index that measures companies on their
    sustainability and triple bottom-line commitment.
    While Eskom, as an unlisted entity, does not
    qualify for inclusion in this index, their score
    complies with the minimum requirements for the
    SRI index, and is comparable to the top
    performers in the high environmental impact
    category.
  • Local economic impact
  • Eskoms corporate social investment (CSI)
    programmes are aimed at contributing to the
    development of the disadvantaged. Eskoms CSI
    activities include various initiatives for skills
    development, job creation, education and health.
    Investment amounted to R110.5m in 2006
  • Many CSI programmes are executed by the Eskom
    Development Foundation. The Foundations mission
    is to contribute to improving the lives of the
    disadvantaged through integrated, efficient and
    effective development programmes. During the
    period, the Development Foundation approved
    grants and donations to the value of R42,1
    million benefiting 200 982 people
  • Employment equity policies have been implemented
    that consider race, gender, and people with
    disabilities to ensure Eskom builds an
    organisation that represents all the people of
    South Africa.
  • Results against target for 2006 are as follows
  • Race   
  • Black1 staff at managerial level, Target gt
    59,4  actual 60,1
  • Black staff at all levels, Target n/a
    actual 70,0  
  • Gender
  • Women at managerial level, Target gt 31,1 
    actual 31,8 
  • Women at all levels, Target n/a actual
    24,7  
  • People with disabilities, Target gt
    2,4  actual 2,52  
  • Social performance             
  • Electrification, number of homes connected
    Target 106 968    actual 222 314      

32
Business strategies to reach new markets, new
customersHolcim case
33
Company profile
  • Holcim is one of the world's leading suppliers of
    cement and aggregates (crushed stone, sand and
    gravel) as well as further activities such as
    ready-mix concrete and asphalt including
    services.
  • Turnover CHF24 billion (23) , Net income
    CHF2,719m (52), assets CHF 44,702m (17.3),
  • 90,000 employees in more than 70 countries
  • Industry cement, aggregates (crushed stone,
    gravel and sand) as well as ready-mix concrete
    and asphalt including related services.
  • Governance Executive committee of 7, Board of
    directors 13
  • Vision - to provide foundations for society's
    future
  • Mission - to be the world's most respected and
    attractive company in our industry - creating
    value for all our stakeholders.
  • Values - strength, performance, passion
  • Holcim Code of Conduct establishes a common and
    consistent framework across our global
    organization for how we will achieve our mission
    and goals. It provides direction and
    clarification in how we conduct our daily
    business. High business ethics and personal
    integrity ensure our credibility and reputation
    as a Group. Its message is clear violations will
    not be tolerated. Non-compliance may lead to
    disciplinary sanctions, including termination of
    employment.
  • Key objectives
  • Continually set the highest standards of customer
    satisfaction in our industry
  • Secure the strongest competitive position in our
    markets
  • Partner with suppliers to deliver value-for-cost
    procurement for the Group and our customers
  • Be recognized as an employer of first choice
  • Empower our employees and integrate them fully
    into our global network
  • Selectively grow our worldwide presence of
    companies
  • Demonstrate our commitment to sustainable
    development
  • Be acknowledged as a valued and trusted partner
    in our community
  • Be the most recommended stock in our industry

34
Sustainability profile
  • Holcim is committed to the UN Global Compact, and
    communicates annually on progress according to
    the Compacts ten principles. Corporate
    Sustainable Development Report prepared in
    accordance with the 2002 Global Reporting
    Initiative Guidelines.
  • Working across the triple bottom line (economic,
    environmental and social) means embedding SD in
    our vision, strategy and management systems,
    turning challenges into opportunities,
    innovating, and ensuring strong corporate
    governance and organizational structures.
  • Stakeholder engagement
  • a process model of stakeholder engagement has
    been development for use across our worldwide
    operations. The model details, step-by-step, the
    cyclical process of engaging with stakeholders.
    Each of the eight steps contains basic
    principles, tools and mechanisms to apply. A
    guidebook was developed to explain the model and
    its tools to managers directly involved in
    stakeholder processes. This is supplemented by
    online support materials, such as templates,
    matrices and good practice examples, with
    in-person support available when required.
  • Type of engagement
  • Needs assessment
  • Stakeholder involvement in CSR planning and
    management
  • CSR/SD memberships
  • Stakeholder dialogues
  • Community advisory panels
  • Cooperations
  • Comprehensive range of measures and targets for
    environmental and social performance

35
Sustainability profile (Contd)
  • Assurance
  • Holcim report in accordance with the Global
    Reporting Initiative.
  • KPMG has provided independent assurance over CO2
    data according to the WBCSD/WRI Cement CO2
    Protocol.
  • 85 of cement plants and grinding stations and
    64 of AFR pre-treatment platforms have
    Environmental Management Systems certified to
    ISO14001.
  • Holcim is a co-founder of the World Business
    Council for Sustainable Developments Cement
    Sustainability Initiative, supports the UN Global
    Compact, and has formed a strategic alliance with
    the German Technical Cooperation (GTZ).
  • External recognition
  • Acknowledged leader of the industry in the Dow
    Jones Sustainability Index 2006
  • included in the FTSE4Good
  • included in the Ethibel Sustainability Index
    Excellence.
  • Results
  • on track to reduce global average net specific
    CO2 emissions by 20 by 2010, with 1990 as the
    base year, reported according to the WBCSD/WRI
    Cement CO2 Protocol.
  • By the end of 2005, specific net CO2 emissions
    per tonne of cement had been reduced by 14.7.
  • We will reduce global average specific nitrogen
    oxides (NOx), sulfur dioxide (SO2) and dust
    emissions (g pollutant/tonne cementitious
    materials) by 20 by 2010, compared to 2004
    levels.
  • The first Holcim Awards competition conducted by
    the Holcim Foundation for Sustainable
    Construction attracted more than 3,000
    submissions from 118 countries. 46 projects
    shared in prize money of CHF 2.5 million in the
    global and preceding regional phases of the
    awards cycle. The competition encourages
    sustainable responses to key issues related to
    building and construction.

36
Social Impact
  • 1 of net income (CHF 32.3 million) was spent on
    community projects, donations and charity.
  • Donations and charity 50
  • Education focus projects 8
  • Community development focus projects 10
  • Infrastructure focus projects 10
  • CSR coordination 7
  • Disaster relief 15
  • Local economic impact
  • Engaging in our spheres of influence is key to
    maintaining our license to operate. We encourage
    Group companies to focus their community projects
    on three areas providing education for societys
    future, building infrastructure for liveable
    communities and supporting sustainable community
    development.
  • Our 1,105 top and senior managers represent 49
    nationalities.
  • 80 of our purchases are locally sourced.

37
Social Impact (Contd.)
  • CSR Policy Statement - We are committed to work
    with all our stakeholders, building and
    maintaining relationships of mutual respect and
    trust. We aim to contribute to improving the
    quality of life of our workforce, their families
    and the communities around our operations.
  • Pillars
  • Business Conduct - We are committed to high
    standards of business conduct and participate in
    the UN Global Compact.
  • Employment Practices - We respect workers
    rights, ensure wages that meet local industry
    good practice and strive to provide best possible
    working and development conditions. We commit to
    responsible restructuring and reorganization
    within the local legal framework.
  • Occupational Health Safety (OHS) - We provide
    healthy and safe workplaces by striving for zero
    risk to our employees, contractors and visitors.
  • Community Involvement - We assess local needs,
    promote community
  • involvement and partner with local stakeholders
    around our operations to improve educational,
    cultural and social development.
  • Customer and Supplier Relations - We offer
    competitive and innovative products and services
    that meet the needs of our clients, and expect
    our suppliers to do likewise.
  • Monitoring and Reporting Performance - We
    identify and monitor issues important to our
    social performance. We evaluate our programs and
    activities and publicly report on performance and
    progress.

38
Business strategies to reach new markets, new
customersNovonordisk case
39
Company profile
  • Novo Nordisk is a healthcare company and a world
    leader in diabetes care. Novo Nordisk
    manufactures and markets pharmaceutical products
    and services that make a significant difference
    to patients, the medical profession and society.
    In addition, Novo Nordisk has a leading position
    within areas such as haemostasis management,
    growth hormone therapy and hormone replacement
    therapy.
  • Financial information Turnover DKK 38,743
    million (15) , net profit DKK 6,452 million
    (10) Earnings per share DKK 19.99 (12)
  • Organisation
  • headquarters in Denmark
  • 11 board members, including 4 employee
    representatives, Exec management team of 5
  • 23,600 employees
  • Production facilities in six countries.
  • Affiliates or offices in 79 countries
  • markets its products in 179 countries
  • Volume market share in insulin 52.0

40
Company profile (Contd.)
  • Vision (abbreviated)
  • We will be the world's leading diabetes care
    company.
  • We will offer products and services in other
    areas where we can make a difference.
  • We will achieve competitive business results
  • A job here is never just a job
  • Our values are expressed in all our actions
  • Our history tells us, it can be done
  • Values (abbreviated)
  • Accountable
  • Responsible
  • Engaged with stakeholders
  • Open and honest
  • Ready for change
  • Commitments (abbreviated)
  • Financial responsibility
  • Environmental responsibility
  • Social responsibility 
  • Code of ethics
  • Business ethics programme comprising online
    e-learing training and supporting booklet,
    available to all employees.

41
Sustainability profile
  • Reporting
  • the sustainability reporting is integrated with
    the Novo Nordisk annual report as non-financial
    reporting. This section of the report is assured
    independently by PWC in accordance with the
    AA1000 assurance standard and the International
    Standard on Assurance Engagements (ISAE) 3000
  • Triple bottom line focus
  • Novo Nordisk is committed to developing its
    business towards ecological, social and economic
    sustainability. This commitment is demonstrated
    through its values and its environmental and
    social responsibility policies. The Triple Bottom
    Line approach enables Novo Nordisk to deliver
    long-term value to the business and contribute to
    the global society. It has two dimensions risk
    mitigation and innovation.
  • Novo Nordisk has identified its stakeholders and
    developed an economic stakeholder model to
    illustrate interactions and dependencies
  • Measures
  • Resources Water consumption, Energy
    consumption, Materials
  • Waste water discharge COD, Nitrogen,
    Phosphorous
  • Waste hazardous and non-hazardous
  • Emissions CO2, organic solvents
  • Eco-intensity ratios (EIR) - a new key
    performance indicator to measure water and energy
    efficiency relative to production

42
Sustainability profile (Contd.)
  • Compliance
  • By the end of 2006 All but five Novo Nordisk's
    production sites were ISO 14001-certified.
  • In 2007, Novo Nordisk was rated number 14 on CNBC
    European Business magazines list ranking the
    worlds top low-carbon pioneers.
  • Initiatives and targets
  • In January 2006, Novo Nordisk signed an agreement
    with WWF that made the company a member of the
    Climate Savers programme. This programme invites
    leading global businesses to demonstrate that
    investing in reduction options can benefit the
    long-term health of the business. Under this
    agreement, Novo Nordisk has set an ambitious
    target for the companys CO2 reductions to
    achieve a reduction of 10 by 2014 as compared
    with 2004.
  • The ongoing cLEAN programme an adapted LEAN
    manufacturing programme to increase productivity
    in Product Supply underpins the climate
    strategy and will contribute to lowering the
    level of CO2 emissions. As a result of this
    programme Novo Nordisk will achieve a lower
    energy consumption per produced unit.

43
Social Impact
  • At Novo Nordisk, social responsibility is more
    than a virtue it is a business imperative. It
    is an investment in our future.
  • Donations to charities
  • In 2006 total corporate and local donations
    amounted to 224 million Danish kroner, including
    62  million Danish kroner donated to World
    Diabetes Foundation, sponsorships
  • Sponsorships in 2006 amounted to 1.8 million
    Danish kroner.
  • Beneficiaries
  • WDF is an independent trust, launched by Novo
    Nordisk in 2001 with a grant of 500 million
    Danish kroner (about 67 million euros) to be
    spent over 10 years to improve diagnosis,
    treatment and capacity building of diabetes in
    places where lack of funding is apparent. At the
    end of 2006, WDF had funded 95 projects in more
    than 69 countries. If all projects have the
    intended impact, they could have a direct
    influence on some 40.5 million people.
  • The Oxford Health Alliance is a public-private
    partnership launched in 2003 by Novo Nordisk and
    the University of Oxford to promote innovative
    action around preventing and reducing the global
    impact of chronic diseases such as diabetes,
    cardiovascular disease, lung disease and some
    cancers.
  • Social impact measures
  • Measure of living our values from employee
    survey
  • Absenteeism and staff turnover
  • Employee diversity
  • injuries and fatalities
  • Training costs
  • Access to healthcare in Least Developed Countries
    (LDCs)
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