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 from our third parties. Novartis is committed to be a leader in key environmental, social and governance (ESG) topics, and we recognize that we must go beyond doing what is legal to meet society’s legitimate expectations.

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 scope and governance

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Our TPRM commitment and why it matters

We are committed to working with third parties who operate in a manner that is consistent with our values and ethical principles.

We will select the parties best suited for our business and society based on objective criteria, evidencing their competence, integrity, and other relevant merits. We will strive to ensure that throughout our relationship, the third party continues to uphold the highest standards.

Our success depends on strong, reliable, and reputable partners. They help us build trust with our stakeholders by living up to the same standards as ours.

External collaboration

Novartis is a member of the Pharmaceutical Supply Chain Initiative (PSCI). Our Third Party Code is also consistent with the PSCI Principles for Responsible Supply Chain Management for ethics, human rights, labor rights, health and safety, environment and related management systems. The PSCI was formed as a non-profit business membership organization in 2006. It brings together the pharmaceutical industry to define, implement and champion responsible supply chain practices, and aims to help suppliers meet the industry’s expectations.

Working committees in PSCI cover Audit, Communication, Governance, Supplier capability and Partnership. All committees have different sub-teams in which Novartis actively participates to build supplier knowledge and expertise and help solve safety, social, environmental and ethical issues.

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