Third Party Risk Management

At Novartis we hold ourselves to high ethical standards. Our Code of Ethics outlines the values and behaviors for our associates, while our Third Party Code (PDF 0.3 MB) defines the standards we require our third parties to adhere to. 

Novartis promotes the societal and environmental values of the United Nations Global Compact and United Nations Guiding Principles on Business and Human Rights to its Third Parties and uses its influence where possible to encourage their adoption. In order to achieve this, Novartis has developed a Third Party Risk Management (TPRM) framework that supports the assessment and management of risks related to the engagement of third parties. By understanding third party risk exposure and managing it effectively, we protect our patients, the company and shareholders against adverse impacts such as regulatory, financial, or reputational damage.

TPRM is an integral part of the Ethics, Risk and Compliance (ERC) function at Novartis.

TPRM Mission Statement

We want to ensure that Novartis only engages with third parties who are capable and willing to comply with our standards. We want to achieve this by providing an effective, efficient and risk-based approach.

How does TPRM work

Risk areas covered by TPRM

Third Parties in scope

• Suppliers & Vendors, Service Providers and similar external partners
• Business Development and In- and Out-Licensing partners
• Wholesalers & Distributors

Governance

The Novartis Third Party Code

The Novartis Third Party Code sets out our corporate responsibility standards, which we require our third parties to comply with. Adherence to the standards contained in our Third Party Code is one of the criteria used in the Novartis third party selection and evaluation process.

We expect our third parties to perform beyond legal compliance and operate in line with ethical business practices (Governance); act as responsible stewards of natural resources and minimize their negative impact on the environment (Environmental); and protect and advance human rights and the communities in which they operate (Social). The Third Party Code is based on the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights, and other international standards or accepted good practices.

Novartis is a member of the Pharmaceutical Supply Chain Initiative (PSCI) and the Third Party Code is also consistent with the PSCI Principles for Responsible Supply Chain Management.