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‘Compassion Vs Competitiveness’ Dilemma at Novo Nordisk
Abstract
Novo Nordisk, the Danish pharmaceutical company, is a leader in the global insulin market. Considered a champion of sustainability, the company sold some of its insulin products at a subsidized price in some of the poorest countries in the world. In the year 2010, it temporarily stopped the sale of its drugs in Greece when the government asked for a 25 percent reduction in the prices of all the medicines sold. The withdrawal affected nearly 50,000 people who were using its products there. Patients, the Greece government, and NGOs accused Novo Nordisk of putting profits before its responsibility toward society. The challenge before the senior management at Novo Nordisk was to strike the right balance between business and global health. |
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Issues
The case is structured to achieve the following teaching objectives:
- Understand a key contemporary issue facing healthcare companies – the compassion vs competitiveness dilemma..
- Understand the main issues related to corporate social responsibility and sustainability and the various challenges faced by organizations regarding the impact of their operations on the society.
- Appreciate the importance of integrating sustainable development practices of a firm with its business strategy.
- Explore ways in which Novo Nordisk can strike the right balance between its business and global health.
Keywords
Corporate Social Responsibility; Stakeholder tension; Corporate Sustainability; Business-government-society relationship; Systems Approach; Stakeholder theory; Managing stakeholder tension; Managing stakeholders; Striking the right balance between business and global health; Striking the right balance between compassion and competitiveness; Business Ethics; Triple bottomline; Shared value; Special obligations; Unique rescue competency
