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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Roll Back Malaria Initiative

Malaria affects poor people and children in many African and Asian countries. Every year, at least one million children die due to malaria in this region. As most of the sufferers were poor people from underdeveloped countries, global pharma companies did not pay much attention to research on drugs against malaria.

The total expenditure on malaria related R&D was around US$323 million in 2004. The incidence of malaria increased from the 1980s mainly due to the increased resistance to drugs that had earlier been effective...

AIDS Orphans

Another area where the Novartis Foundation undertook substantial work was in the cause related to AIDS orphans. These children required emotional and social support apart from medical support. Children with AIDS were treated as outcasts by society, especially in the African and Asian countries...

Novartis Institute For Tropical Diseases

Tropical diseases were often not given enough importance by pharmaceutical companies. Only 1% of the 1,400 new drugs introduced between 1975 and 1999 were meant for tropical diseases. In order to address this problem, Novartis established a research institute, the Novartis Institute for Tropical Diseases (NITD) in Singapore in 2002...

Other Innovative Initiatives

Novartis had introduced a drug named Gleevec in the US (known as Glivec in other countries). It was used to treat specific forms of leukemia and some gastrointestinal tumors. The drug was highly effective and it was proved that it reduced the number of cancerous white blood cells...

The Benefits and Challenges

The Global Compact became the important component of sustainable corporate development and its implementation at Novartis...


Exhibit I: UN Global Compact Principles
Exhibit II: Novartis - 'Access to Medicine' Projects
Exhibit III: Novartis Foundation - Vision, Mission, Objectives
Exhibit IV: Novartis - Mergers & Acquisitions (1997-2005)
Exhibit V: Projects of Novartis Foundation
Exhibit VI: Novartis Code of Conduct
Exhibit VII: Novartis - Policy on Corporate Citizenship


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