Corporate Philanthropy - Best Practices at Novartis AG

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Case Details:

Case Code : BECG063
Case Length : 23 Pages
Period : 2000-06
Organization : Novartis AG, Novartis Foundation for Sustainable
Pub Date : 2006
Teaching Note : Available
Countries : Switzerland
Industry : Pharmaceutical

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd,..

The Novartis Foundation, in association with international partners like the World Health Organization³ (WHO), the United Nations⁴ (UN) and developmental institutions, worked toward promoting economic, cultural, and social human rights in developing countries.

The Foundation also worked to reduce health and poverty-related problems of the Third World. Another main task of the Novartis Foundation was to serve as a bridge between Novartis and the community consisting of developmental institutions, non-governmental organizations (NGOs), the private sector, and government institutions.

In a scenario where there was a growing demand for corporates to play a proactive role in dealing with the problems of society, the Novartis Foundation was playing its part in dealing with poverty and disease in Third World countries and was guided by a clear vision to do so (Refer Exhibit III for Vision, Mission, and Objectives of the Novartis Foundation).

According to Dr. Kalus M. Leisinger (Leisinger), who had been President and CEO of the Novartis Foundation since the year 2002, "For many years we have had our leprosy program, we now have our malaria program, we have our tuberculosis donation, and we offer our employees throughout the developing world free diagnosis and treatment for HIV/AIDS, TB, and malaria.

In addition, we have founded a new research institute in Singapore that exclusively carries out "pro bono"research on a non-profit making basis, such as for tuberculosis and dengue fever. I am very proud of this and I think we have given a clear signal with our initiatives."⁵

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3] Headquartered in Geneva, the World Health Organization (WHO) is a specialized agency of the United Nations. The main task of WHO is to coordinate with other institutions on international public health program.

4] The United Nations (UN) is an international organization that was founded in 1945 after the Second World War. The UN works toward facilitating cooperation among different countries in the areas of international law, security, and economic development.

5] Klaus Seitz, "Great Tasks Need Grand Coalitions, Interview with Klaus M Leisinger,"epd-entwicklungspolitik, March 2002.