Novo Nordisk is one of the few firms in the world, which is recognized for its sustainable management practices. The firm’s operations in the industry are influenced by value-based management approaches. The firm has effective corporate governance policies, which influence the way it relates with its customers and other stakeholders.
It has instituted integrated reporting systems, which make it easy for the public to assess its operations. This allows external auditing of the firm’s systems to determine whether they satisfy sustainable management practices, which the firm aspires to achieve. The firm has a solid reputation in the industry because it was the first business firm in Denmark to release a corporate environmental report.
This has strengthened the firm’s credibility in the industry (Eccles & Krzus 2012, p. 2). Novo Nordisk has set goals it seeks to achieve by building effective partnerships with other stakeholders. Therefore, the firm understands its responsibility to its clients. This has made it institute effective sustainable practices.
Novo Nordisk compiles financial, social and environmental aspects related to its performance in one report every year. These three values are equally important to the firm’s strategic focus in the industry. The firm opens up all information related to crucial areas of its operations to the public, which shows it is ready to be more transparent and accountable.
Thus, the firm has added value to products it manufactures because consumers are able to scrutinize the quality of processes used to produce them. The firm makes it possible for consumers to identify key issues that have an impact on the quality of products released into the market.
This affects the way they consume these products. Novo Nordisk’s reporting systems make customers aware of what it plans to do in the future and how it plans to do it (Eccles & Krzus 2012, p. 4). Therefore, the firm’s consumers and other stakeholders greatly influence the way the firm operates.
The company has managed to build trust in the industry because it has effective quality control systems, which enable interested parties to audit its processes. The firm provides more information related to crucial processes on its website, which shows clearly what the firm intends to do within a specified period of time.
Its approach to the market is influenced by the need to balance between social, financial and environmental issues, which have an impact on the way it operates in the market. Novo Nordisk has made business ethics, a core issue, which guides its internal and external practices.
These ethical practices are captured in the way it reports on different issues, which have a direct bearing on its operations. The firm’s employees have to ensure that the way they perform their duties conforms to internal and external expectations. This makes them respect the firm’s value–based work systems (Eccles & Krzus 2012, p. 8).
Novo Nordisk’s management approach has strengthened the way the firm relates with its customers. The firm is able to report on different activities related to its operations and how they add value to its position in the market. The firm’s management is in a better position to evaluate the relationship between financial and non-financial issues and their impact on the firm’s reputation in the industry.
Integrated reporting of crucial activities helps managers review the level of commitment the firm has to different areas of its operations. This makes them evaluate the firm’s total performance in different activities (Eccles & Krzus 2012, p. 11).
The firm also encourages its employees to be more accountable to themselves and internal quality systems established. The firm has established strong internal controls, which guide employees on ethical practices they need to observe as they perform their duties. Therefore, this makes them more willing to improve various production processes in the firm.
The firm has set for itself different goals it seeks to achieve in its operations. The firm has pledged to reduce the amount of carbon dioxide discharged from its production processes by 10%. This is an ethical objective, which is closely related to the firm’s social and environmental strategies.
Novo Nordisk has implemented efficient production systems, which limit the discharge of harmful waste products from its production sites into the environment. The firm has been able to streamline internal production processes to make them conform to its long-term objectives.
The firm has also changed the way energy consumption patterns in production. Its production processes are mainly powered by renewable energy sources, which have reduced quantities of harmful emissions it releases into the atmosphere (Novo Nordisk 2011, p. 12). This has made the firm to work towards achieving its long-term social and environmental goals.
Novo Nordisk’s manufactures medicine and other health products to the market. The firm has integrated social, environmental and financial targets in its operations and these factors impact greatly on innovation. Employees strive to make their output conform to the firm’s overall objectives because they contribute to the value of its products in the market.
The integrated reporting approaches implemented by the organization allow it to sustain value in its social and financial processes. These processes make it possible for the firm to build effective relationships with other stakeholders in the industry and help it achieve its long-term strategies.
Novo Nordisk has managed to align Corporate Social Responsibility goals with its core operations, which have benefited more people (Novo Nordisk 2011, p. 14). The firm has managed to increase the value of its brand in the industry because more customers are aware of its commitment to sustainable development.
The firm has designed integrated reporting systems, which focus on the quality of its operations. Novo Nordisk’s management has instituted measures that monitor how internal operations help achieve set goals. This allows the firm to audit its operations after different time intervals to determine improvements, which need to be made.
The firm has provided a model of management, which can be emulated by other companies operating in different industries. The triple bottom line’s focus on social, financial and environmental issues has made the company to work towards influencing the industry positively.
This has made the firm more competitive in its industry because its sustainable production practices have helped it sustain the value of its products in the market (Novo Nordisk 2011, p. 20). Novo Nordisk’s integrated reporting policies allow the firm to provide a clear assessment on how its operations add tangible and intangible benefits to the society.
In conclusion, it is fair to state that Novo Nordisk has managed to improve the value it offers its customers. The firm has made its operations more efficient and transparent. This shows that the firm has a strong commitment to its customers and other stakeholders who are directly affected by its operations.
References
Eccles, RG & Krzus, MP 2012, ‘Novo Nordisk: a commitment to sustainability’, Harvard Business School Case 9-412-053, pp. 1-18.
Novo Nordisk 2011, Financial, social and environmental performance report, Novo Nordisk, Bagsvaerd.