The Stakeholder Engagement Manual Volume 2 - AccountAbility

Think Strategically
P4: PRIORITISING STAKEHOLDERS AND ISSUES
Novo Nordisk and the growth of diabetes in the developing world
The Danish healthcare company Novo Nordisk’s main business is the prevention and treatment of diabetes. Diabetes is now
recognised as a pandemic, and the current number of people with diabetes, which in 2003 has been estimated to be 194million, is
expected toincrease to 333 million by 2025. Two-thirds of future diabetes cases are expected to occur in the developing world.
Meeting the associated challenges is complicated. Low- and middle-income countries often lack the healthcare information to meet
the needs of a growing number of people with diabetes. Furthermore, a lacking awareness of and education about diabetes is a serious
problem. Therefore, many experts believe that the solution lies in taking an approach that combines increased awareness, education
and prevention with improved access to treatment.
Novo Nordisk works together with governments, patient organisations and other partners to improve diabetes care in poorer countries,
using its expertise and competence in diabetes to address some of the above issues. At the same time, Novo Nordisk is building a
long-term sustainable business advantage as a leader in diabetes care in the developing world, while responding to growing pressure
from society to increase access to medicine in developing countries.
This strategy for improved access to diabetes care has been built on World Health Organisation’s recommendations. Novo Nordisk
supports the building and development of national healthcare strategies and capacities with the National Diabetes Programme, which
is setting up diabetes activities in eight developing or emerging economies. Activities include educating nurses, equipping diabetes
clinics, supporting diabetes patient organisations and working with governments. It has also offered insulin to the public health
systems of the 50 least developed countries, as defi ned by the UN, at prices not to exceed 20% of the average price in the highly
developed countries of North America, Europe and Japan.
Stage of
issue maturity
Latent
Emerging
Consolidating
Different responses to the maturity of issues
Institutionalised
Company
response
In general, the more mature an issue is, the more essential it is for a company
to address the issue. However, the response to the issue also depends on the
company’s general approach towards stakeholder engagement, or issues of
corporate responsibility more generally. Th e table below illustrates the way that
a company, which considers stakeholder engagement as an opportunity, might
typically decide to react to each Stage, as well as the reactions of a company that
takes a more defensive, reactive approach.
Leadership company’s
opportunity focused response:
Gain early understanding of
new risks and opportunities,
and practise precaution as
required.
Address the issue early to win
market shares, or competitive
or reputational advantages.
Finding allies for managing
and addressing these impacts
to prevent best practise from
being undercut by companies
that ignore the impacts.
Making sure that everybody
complies with social norms
and commitments.
Leadership company’s
stakeholder engagement
process.
Maintaining ongoing dialogue
with NGOs and stakeholder
opinion leaders.
Working with an international
organisation to develop new
preventative or proactive
management, production or
marketing approaches that
address stakeholder concerns.
Play a leading role in multisector
and sector-wide
responses to the issue by
promoting best practise and
developing standards
Formalised engagement
processes such as industrial
relations with trade unions or
governments.
Defensive company’s response
“ It’s not our job to understand
that”
“ It’s not our job to
address that”
“ It’s not our job to
regulate that”
“We’ll do it if we have to”