CAPSTONE PROJECT

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(under University of Mumbai)

Submitted By

VRUNDA PATEL

(Roll No. 98)

Under The Guidance of

LIPIKA KOLI

2018-20

Chetana’s R.K Institute of Management and Research

 CERTIFICATE

This is to certify that project titled “Comparative Study On Reward and Recognition For

Novo Nordisk”

is successfully completed by Ms. VRUNDA PATEL during the IV semester, in partial

fulfilment of the Master’s Degree in Management Studies recognized by the University of

Mumbai for the Academic Year 2018- 2020 through Chetana’s R.K. Institute of Management

and Research.

This project work is original and not submitted earlier for the award of any degree /

diploma or associate ship of any other University / Institution.

Name: __________________

Date: ___________________ (Signature of the Guide)

 DECLARATION

I hereby declare that this Project Report submitted by me to Chetana’s R.K. Institute of

Management and Research is a bonafide work undertaken by me and it is not submitted

to any other University or Institution for the award of any degree diploma or published

any time before.

Name: Vrunda Patel

Roll No. 98 (Signature of the Student)

 Acknowledgement

I would like to express my sincere gratitude to my faculty guide Prof Lipika Koli for proving
their invaluable guidance and suggestion throughout the course of the project. I would
specially thanks Director Dr. Jayashree Bhakay (CRKIMR) for constantly motivating to work
hard.

Also I would like to thank my company mentor Mr. Amey Godbole (Manager Human
Resource)and Mrs. Payal Verma(Human Resource Business Partner) for the assistance during
the internship and helping during the preparation of the samples and giving the opportunity to
undertake this internship study and allowing me to carry out my project in Novo Nordisk.

Last but not least , many thanks to my family and friends for being so supportive throughout
my internship and helping me in completion of my project.

VRUNDA PATEL
 Executive Summary

The Indian Pharmaceutical industry currently tops the chart amongst the
country’s science-based industries and is the third largest in the world in terms
of volume. The study is based on the pharmaceutical company Novo Nordisk .
The study is divided into three sections general management, functional
management and corporate social relevance.

In general management section it includes introduction to the company i.e.

about the Novo Nordisk, introduction to the pharmaceutical sector and financial
growth of the company for last five years.

The functional management section has the comparative study of reward and
recognition of Novo Nordisk with other pharmaceutical company (Sun Pharma,
Pfizer and Cipla). This topic was selected to understand all the aspects in
reward and recognition of pharmaceutical industry and relevantly any changes
which can be required in Novo Nordisk to be take into consideration.

The last section of the study is corporate social responsibility which includes
the CSR activities done by the Novo Nordisk. This study aims at providing
information about how the Novo Nordisk is creating the value by serving to the
society.

1
 TABLE OF CONTENTS

SR NO. TITLE PAGE NO.

SECTION I - GENERAL MANAGEMENT

1. Executive Summary 8

2. Introduction 9

3. Literature Review 17

4. Research Methodology 18

5. Results 19

6. Discussion 20

7. Conclusion 24

8. Bibliography 25

SECTION II – FUNCTIONAL MANAGEMENT

1. Executive Summary 27

2. Introduction 28

3. Review of Literature 33

4. Research Methodology 34

5. Results 35

6. Discussion 36

7. Conclusion 41

8. Bibliography 42

9. Appendices 43

2
 SECTION III – CORPORATE SOCIAL
RESPONSIBLITY

1. Executive Summary 45

2. Introduction 46

3. Review of Literature 48

4. Research Methodology 49

5. Results 50

6. Discussion 51

7. Conclusion 56

8. Bibliography 57

3
Similarity Report

4
5
6
 Section I
General Management

7
 Executive Summary

India is a mystery here. The fast-growing economy is raising the standard of

living. However, economic growth has led to an increase in non-communicable
diseases such as diabetes. India will have one of the largest economies in the
world by 2030. But none of the economic production is spent in India's public
health system.

Diabetes is a global threat to wellness. There are currently an estimated 382

million people living with diabetes worldwide and the figure is projected to
increase to more than half a billion by 2035. Just a minority of them have
access to appropriate services and care.

In Novo Nordisk, they agree that increasing access to diabetes care should be an
integral part of our core business. Novo Nordisk is dedicated to operate
business in a financially, environmentally and socially responsible manner .

In the study the growth of the company is analyzed through which the
company’s financial position we can understand and even being an MNC how
much it is profitable to the company.

8
 Chapter 1

Introduction

The study involves the comparative study on reward and recognition given to
medical representative in pharma sector. The study is done for the pharma
company Novo Nordisk. In this study the reward and recognition of Novo
Nordisk is compared with some of its competitor companies like Sun pharma,
Pfizer and Cipla. This study is interesting as it helps to know what kind of
rewards are given to the medical representative and how their work is being
appreciated. The study would also help the Novo Nordisk what they c an change
in their reward system and even would come to know about the trend followed
in the pharma sector. The purpose behind this project is to explore that, what is
the role of the rewards & recognition in pharma industry, how different
organizations apply this scheme to their employee growth in order to achieve
individual and collective goals and also to explore any drawbacks and obstacles
in their path.

Rewards and appreciation are granted for the achievement of desired objectives.
The program of incentives should be closely associated with organizational
approaches. These approaches may be structured to offer innovative goods or
services for faster innovation. Rewards and acknowledgment can be monetary,
or not monetary.

9
1.1 About the sector/industry

India is the top global manufacturer of generic drugs. Indian pharmaceutical

industry provides more than 50% of global demand for different vaccines, 40%
of US generic demand and 25% of all medicines in the UK. India holds an
important role in the pharmaceutical industry worldwide. The country also has a
wide pool of scientists and engineers with the ability to bring the industry even
higher forward. Indian pharmaceutical companies currently supply over 80 per
cent of the antiretroviral drugs used internationally to fight AIDS (Acquired
Immune Deficiency Syndrome).

Market size :-

In 2017, the pharmaceutical industry was estimated at USD 33 billion. The

pharmaceutical industry in the country is forecast to grow to hit US$ 55 billion
at a CAGR of 22.4 per cent over 2015–20. India's pharmaceutical exports stood
at FY18 at US$ 17.27 billion and exceeded FY19 at US$ 19.14 billion. Exports
of pharmaceutical products include bulk medications, intermediates, medication
formulations, biologics, ayush & herbal products and surgical products.

Indian companies received 304 American Food and Drug Administration

(USFDA) Abbreviated New Drug Application (ANDA) approvals in 2017. In
the US$ 70-80 billion generics industry, the country account s for about 30
percent (by volume) and about 10 percent (value).

Investments and recent developments :-

The Union Cabinet gave its nod to the modification of the current Foreign
Direct Investment (FDI) policy in the pharmaceutical sector to allow up to
100% FDI under the automatic route for the manufacture of medical devices
under certain conditions. According to data released by the Department of
Industrial Policy and Promotion (DIPP), the drugs and pharmaceuticals industry
10
attracted cumulative FDI inflows worth US$ 15.98 billion from April 2000 to
March 2019.

Government Initiative:-

Some of the government's initiatives to promote the pharmaceutical sector in

India are as follows:

o The Uttar Pradesh government declared in October 2018 that it will set
up six pharmaceutical parks in the state and has earned investment
commitments in excess of Rs 5,000-6,000 crore (US$ 712-855 million)
for the same.
o The National Health Protection Scheme is the largest government -funded
healthcare system in the world, which is intended to help 100 million
poor families in the country by offering coverage for secondary and
tertiary care hospitalization of up to Rs 5 lakh (US$ 7,723.2) per family
per year. The system was revealed in the 2018-19 Union Budget.
o In March 2018, India's Drug Controller General (DCGI) announced plans
to launch a single-window facility to provide consent, approvals and
other details. The move is intended to give the Make in India initiative a
push.
o The Indian government is preparing to set up an electronic framework to
control online pharmacies under a new policy to halt any abuse due to
easy accessibility.
o India's government launched' Pharma Vision 2020' promising to make
India a world pioneer in end-to-end drug development. Shortened
approval periods for new facilities to improve investment.
o The Government has adopted measures such as the Drug Price Control
Order and the National Pharmaceutical Pricing Authority to tackle the
issue of affordability and drugs availability.

11
Road Ahead:-

Medicine spending in India is expected to rise by 9 -12 per cent over the next
five years, contributing to India being one of the top 10 medicine spending
countries in the world. Moving forward, improved domestic revenue growth
will also rely on companies ' ability to match their drug portfolio with
increasing chronic therapies for diseases such as cardiovascular, anti -diabetes,
anti-depressants and anti-cancers.

The Indian government has taken several steps to curb prices and increased
healthcare expenses. The rapid introduction of generic drugs into the market has
remained focused and the Indian pharmaceutical companies are expected to
benefit. However, the emphasis on rural health services, lifesaving medications,
and preventive vaccinations also augurs well for pharmaceutical firms.

12
1.2 About the company

Behind the Novo Nordisk that we know today lies an amazing story that goes
back more than 95 years. This started with two small Danish companies founded
in Copenhagen in the 1920s – Nordisk Insulin laboratories and Novo
Terapeutisk Laboratories – which, under modest circumstances, began
developing a groundbreaking new drug, insulin, which had just been discovered
by two Canadian scientists. Intensely competing with each other, the companies
have become two of the best in their industry. When they eventually agreed to
combine in 1989, they set up one of the largest biotechnological groups in the
world – a community that has evolved steadily since then.

A ton had changed since the humble beginning of the 1920s. By the end of the
1980s, Nordisk had been the world's third-largest insulin maker and one of the
world's leading producers and exporters of human growth hormones. Novo had
been the world's second-largest producer of insulin and the world's largest
producer of industrial enzymes. Both companies exported more than 90% of
their production, and both had branches and information offices in many
countries around the world.

In January 1989, it was announced that Nordisk Gentofte A / S and Novo

Industry A / S joined forces under the name of Novo Nordisk A / S, granting
Denmark the distinction of becoming the world's leading insulin producer. The
decision to merge was made because collaboration between the two compa nies
'strong research units would increase the likelihood of developing new drugs for
the treatment of diabetes and would allow for improved research in other fields.
In turn, each will have the scale and power to boost their competitiveness on
foreign markets. Having competed with each other for more than 60 years, the
two firms will now focus their joint resources on winning global markets.

13
This marked the beginning of world-class diabetes medicine growth, and a
subsequent Danish company and export venture. This also led to the
development of many foundations which, many years later, merged into today’s
Novo Nordisk Foundation.
Novo Nordisk Mission Statement
By transforming diabetes, we are committed to generating value for patients –
improving how it is handled, how it is regarded around the world and how the
disease's future develops. Although we try to deliver practical solutions that suit
the way people want to live, science alone cannot accomplish changing
diabetes. We must bring about progress at all levels: in science, in education, in
public policy, in humanitarian and outreach efforts.

Novo Nordisk Value

o Through adopting a patient oriented market philosophy, we build value.

o We set ambitious targets, and we aspire to achieve excellence.
o We are accountable for our results on political, environmental and social
matters.
o For the advantage of our clients we deliver creativity.
o We establish good relationships with our main stakeholders and retain
them.
o We treat each with dignity.
o We're focused on success and personal growth.
o We have a safe working atmosphere which is engaging.
o The way we work is structured and we aim for simplicity.
o We never compromise on consistency and corporate ethics.

Novo Nordisk is a Danish multinational pharmaceutical company headquartered

in Bagsværd, Denmark, with manufacturing facilities in eight countries and
branches or offices in five countries. Novo Nordisk is owned by majority
shareholder Novo Holdings, which owns about 25 percent of its shares and a
supermajority of its voting shares (45 percent).

Novo Nordisk worldwide employs over 40,000 people and markets its goods in
180 countries. The company was founded in 1989 by the merger of two Danish

14
companies dating back to the 1920s. The logo for Novo Nor disk is the Apis
bull, one of the ancient Egyptian holy animals.

Novo Nordisk manufactures and distributes pharmaceutical products and

services. Main products include drugs and tools that treat diabetes. Novo
Nordisk also assists in the treatment of haemostasis, growth hormone therapy,
and hormone replacement therapy. The company manufactures many products
under different brand names including Levemir, Tresiba, NovoLog, Novolin R,

NovoSeven, NovoEight and Victoza, among others.

The corporation was ranked 25th of 100 Best Companies to Work For by
Fortune in 2010 and 72nd in 2014. In January 2012, the business journal
Corporate Knights named Novo Nordisk as the most profitable company in the
world, while the spin-off company Novozymes was ranked fourth.

Novo Nordisk India's origins goes back to 1990 when a Novo Nordisk liaison
office was formed in Mumbai. Novo Nordisk products were previously sold
through various other companies in India. Since then, with the support of health
care practitioners in India, Novo Nordisk had been involved in building interest
of diabetes care.

Novo Nordisk Pvt . Ltd . was set up on 1 st April 1994 with 26 employees was
founded with its headquarters in Bangalore. The Novo Nordisk Education
Foundation (NNEF) was established in 1998, in recognition of the urgent need
to provide information and education in healthcare in India. NNEF is a non -
profit organization with a mission to' Build awareness and equity in health
care.'

15
 SWOT Analysis

STRENGHTS WEAKNESS

• Strong retail group • Decline of sales in

• Highly trained biopharmaceutical

workers segment.

• Large Product
Portfolio • Gaps in the product

• Automation of range

operation

• Solid Free Cash

• Growth in New
Markets

OPPORTUNITIES THREATS

• Release of generic

• Increased severity of products on the

diabetes. market

• Cost Control,
Competition and
• Entry into the untapped
reimbursement
fields of treatment.
restrictions

• Loosing of
investment
opportunities to
rivals

16
 Chapter 2

Literature Review

Suresh Koshy (1995), in his Boston University paper The Effect of TRIPS on
Indian Patent Law: A Pharmaceutical Industry Perspective, explains the
importance of TRIPS compliance with patents and how it affects the Indian
pharmaceutical industry.

He was of the opinion that the industry should have used the ten-year grace period
effectively with the active assistance of the Government of India to get them
ready and competitive with the rest of the world.

Government was supposed to provide industry with a variety of fiscal and

monetary opportunities to develop good R&D prior to the introduction of the
ADPICs in 2005.The paper further explores the creation of an ecosystem of
changed patent laws and relaxed drug control regulations for compani es to cap
costs for new drug research that ensures a steady supply of new drugs to
customers and highlights the example of Japan's technological progress and
patent reform.

Mukul Mukti, in his research entitled "Growth of the Indian Pharma Industry,"
claimed that the Indian pharmaceutical industry has a unique amalgamation of
two main factors that make it so attractive and thus boost its growth.

As those are: the patent scheme of the company Price controls. The introduction
of Good Manufacturing Practices has further complemented the development of
this sector, which is now manufacturing bulk medicines for all the major
therapeutic segments that are currently most in demand.

In addition, India's experience in process re-engineering and organic synthesis

has helped to produce the most cost-effective approaches that are also
consistent with quality standards. The goal of this report is to provide a broad
outlook for the pharmaceutical industry.

17
 Chapter 3

Research Methodology

Research Design-

A researcher is only interested in explaining the situation or case in a concise

manner in the context of their research report. It is a theoretically based design
approach that is generated by gathering, evaluating and presenting the data
obtained. This helps a researcher to have insight into why and how work is
done. Descriptive nature allows us to better appreciate the need for analysis.

Research Tool-
There are many methods of data collection which can be used according to nature and type of
research. In the study secondary data is used for the research purpose. Secondary data
analyses the whole business record and the balance sheet of the organization in
which the project work has been carried out. In addition, a variety of reference
books, journals and studies have also been used to formulate a theoretical research
model. And some information was also taken from the websites.

Objective of Project :-
The key objective of the study is :-
o To analyze the 5 year progress of the Novo Nordisk .

18
 Chapter 4

Results

Novo Nordisk annual/quarterly revenue history and growth rate from 2006 to 2019. Revenue
can be defined as the amount of money a company receives from its customers in exchange
for the sales of goods or services. Revenue is the top line item on an income statement from
which all costs and expenses are subtracted to arrive at net income.

• Novo Nordisk revenue for the quarter ending December 31, 2019 was $4.798B,
a 21.96% increase year-over-year.
• Novo Nordisk revenue for the twelve months ending December 31, 2019
was $18.291B, a 6.97% increase year-over-year.
• Novo Nordisk annual revenue for 2019 was $18.291B, a 6.97% increase from 2018.
• Novo Nordisk annual revenue for 2018 was $17.099B, a 0.78% increase from 2017.
• Novo Nordisk annual revenue for 2017 was $16.967B, a 2.14% increase from 2016.

Novo Nordisk operates in two segments — Diabetes and Obesity care, and
Biopharmaceuticals.

The Diabetes and Obesity Care segment sales increased 6% at CER. Sales of
insulin decreased 4% at CER to DKK 14,909 million. Sales of long -acting
insulin (Tresiba, Xultophy and Levemir) declined 3% to DKK 5,411 million.

Sales at the Biopharmaceuticals segment increased 6% at CER to DKK 4,800

million. Hemophilia sales were up 13% at CER

19
 Chapter 5

Discussion

Financial Inclusion

Under relatively new management Novo Nordisk continues to gain market share
worldwide. The company is extremely strong in research and development,
expenses have been cut, market share continues to increase, and many areas of
growth look very promising – both geographically and in terms of goods. Novo
Nordisk is a champion, most definitely not a stallin g.

Novo Nordisk has a global market share of more than 46% for both insulin and
pre-insulin GLP-1 and a market penetration of 28% for the wider diabetes
market. These are economically growing industries, as the disease is becoming
more common and a higher percentage of people are further treated. It is
therefore expected that there would be around half a billion diabetics in 2030,
especially in comparison to 400 million today. Such a rise will not be isolated
from Countries in the west – it is largely a problem for countries like India as
well. Diabetes patients will generally need long -term treatment, and this
indicates that there is a significant long-term potential.

20
Balance sheet of Novo Nordisk (5 years)

Income Statement of Novo Nordisk (5years)

21
According to the annual report of the last five year the following is the growth
of the company :-

2015 :-

Sales increased by 22 percent in Danish kroner and by 8 percent in local

currency to 107.9 billion. Operating profit increased by 43 percent in Danish
kroner and by 21 percent in local currency to DKK 49.4 billion. Adjusted for
DKK 2.4 billion of non-recurring revenues related to the biased divestment of
NNIT, the operating margin was 43.6 per cent, corresponding to a 14 per cent
increase in operating profit in local currencies.Net profit increased to DKK 34.9
billion by 32 percent. Dilute earnings per share increased by 34 percent to DKK
13.52. Adjusted for the partial divestment of NNIT, the net profit and diluted
earnings per share increased by 22 and 25 per cent, respectively.

8.6 DKK billion spent on corporate income tax (+ 13 per cent) .

2016:-

Novo Nordisk recorded sales of DKK 111.78 billion ($16.62 billion) in 2016, 4
per cent more than in 2015. Sales growth was realized in both diabetes and
biopharmaceuticals, with the majority of growth coming from Tresiba, Victoza,
Saxenda and Norditropin, while sales of modern insulin and NovoSeven
decreased. The company's net revenue in 2016 was DKK 37.93 billion. Dilute
earnings per share were DKK 14.96 ($2.22), 10.7 per cent higher than in 2015.

2017:-

Sales in international operations increased by 2 per cent in Danish kroner (5 per

cent in local currencies), driven by sales growth in all business regions
measured in local currencies. Sales within North America Operations declined
by 2% in Danish kroner and remained unchanged in local currencies, reflecting
the non-recurring effects of biopharmaceuticals negatively impacting growth by
4 percentage points. Operating profit increased by 1 percent reported in Danish
kroner and by 5 percent reported in local currencies to USD 7.4 billion. Net
profit increased to USD 5.8 billion by 1%. Dilute earnings per share increased
by 3 percent to USD 2.33.

22
2018:-

Denmark- healthcare company Novo Nordisk A / S (NVO) reported that its net
profit increased by 1 percent to 38.6 billion Danish Kroner in 2018, while
earnings per share increased by 4 percent to 15.93 Kroner. Operating profit
decreased by 4 percent in Danish kroner and increased by 3 percent in local
currencies to 47.2 billion kroner, impacted by the depreciation of the US dollar
and related currencies against the Danish kroner. Adjusting the lay -off-related
severance costs in the second half of 2018 and the expenditure related to the
priority review voucher for oral semaglutide filing increased operating profit by
6 percent in local currencies.

2019:-

Sales increased by 9 percent in Danish kroner and by 6 percent in CER to DKK

122.021 million in 2019.Operating profit increased by 11 per cent in Danish
kroner and by 6 per cent in CER to DKK 52.483 million, which is in line with
the latest operating profit growth guidelines measured at CER of 4 -6 per cent in
2019.

23
 Chapter 6

Conclusion

The cycle is a 365-day affair and the end product is the culmination of
thousands of hours of effort and the continuous participation of people in all
areas of the organisation. After so many years of combining the company's
financial, social and environmental results, it is clear that it pays off, not just as
a reliable and efficient means of communication, but also as a means of
encouraging change. The path began in 2004 when the shareholders of Novo
Nordisk officially accepted the Triple Bottom Line Busi ness Theory in the
Articles of Association of the Group. The new structure of the company's goals
compelled the organization to 'strive to perform its operations in a fiscally,
environmentally and socially responsible manner.'

Novo Nordisk made good progress till 2019. The employees have delivered
development and critical new product releases. This has set a strong foundation
for the next decade and beyond, as we continue to develop our pipeline and
make progress as a sustainable company. Delivering strong revenue and
operating profit growth – Delivering 6–10 per cent of sales growth in
International Operations – Transforming 70 per cent of revenues in the USA
Increasing operational efficiencies across the value chain to encourag e
investment in long term growth capital. Delivering free cash flow to allow for
attractive shareholding resource allocation.

24
 Chapter 7

Bibliography

https://www.ibef.org/industry/pharmaceutical-india.aspx
https://www.forbes.com/companies/novo-nordisk/#2d2514811960
https://www.thepharmaletter.com/article/novo-nordisk-s-4th-qtr-sales-rise-of-9-beats-forecasts
http://www.blscapital.dk/en/company/novo-nordisk/
https://ml-eu.globenewswire.com/Resource/Download/a7f9ab58-a568-4961-a26d-fba091d26f3e
https://www.swotandpestle.com/novo-nordisk/
https://www.macrotrends.net/stocks/charts/NVO/novo-nordisk/balance-sheet

25
 Section II
Functional Management

26
 EXECUTIVE SUMMARY

The need to focus on developing ,nurturing and retaining human capital has
gained prominence in recent years. Organisations, in order to fulfil this need are
turning towards creative, unconventional and intrinsic approaches to formulate
their rewards and recognition practices. Rewarding practices fulfil an
employees need to be fairly rewarded for their capabilities & efforts.
Recognition practices are those that appreciate their employee’s contribution
and results which they get out of it.

The study includes healthcare company Novo Nordisk which is a Danish

pharmaceutical company manufactures and markets pharmaceutical product s
and services that make a significant difference to patients, the medical
profession and society. It is a world leader in diabetes care.

This project has a comparative study on reward and recognition of Novo

Nordisk, and a comparison has been made with a few of their competitors which
are Sun pharma, Pfizer and Cipla. The sample audience for this study are
product specialist and first line managers are taken into consideration.

This topic was selected to understand all the aspects in reward and recogniti on
of pharmaceutical industry and relevantly any changes which can be required in
Novo Nordisk to be take into consideration.

27
 Chapter 1

Introduction

Reward and recognition is the activity we engage in to acknowledge exceptional

performance and encourage specific values or behavior. A reward can be anything that
attracts an employee and motivates him to work. Organizations implement reward and
recognition practices with an aim to offer competitive salaries, bonus packages and to
share the benefits of people combines efforts in a fair manner.

The term ‘Reward’ refers to all the monetary and non-monetary & psychological
payments than an organization provides for its employees for the exchange of the work
they perform. There are two main categories of rewards : fixed pay system and variable
pay system.
Fixed payment systems are those that do not vary in relation to achievement and variable
payment system are those that vary in relation to results, profits and performance.

A rewards is considered to be something that's given in return for great behavior or given
for a few benefit or fulfillment. It can moreover be considered as a boost managed taking
after a rectify or wanted reaction that empowers the reoccurrence of the reaction.
Acknowledgment is considered affirmation or a uncommon take note or consideration. In
an organization, rewards and acknowledgment programs must influence behaviour
quantifiably, progress comes about and convey both substantial and intangible grants that
everyone can win which everybody appreciates.
To that end:
1. People should feel good about what they receive; and
2. The organization should benefit from a more positive workforce.

In addition, the organization must be able to get a Return on Reward (ROR) if they are to
sustain any initiative. Similarly, the people in the organization must know where they
stand at all times compared to the standards through feedback.
The goal for both can be summed up in the following equation:
Right Rewards Right People Right Reasons = Right Results

28
 A great reward and recognition framework may be a “pulling” technique. It
pulls individuals into it since they see what is being remunerated and recognized, it
feels great to be portion of both the accepting (and ideally the giving) of the rewards
and recognition, and they need to be part of it. To completely coordinated individuals into
this sort of culture, both tolerance and consistency are required of the organization.
The term recognition can be defined “as the expressed appreciation by one person to
another for that person’s behaviors, activities or impact especially in the context of in
organization”. Recognition may or may not be accompanied by a physical or financial
reward.
Recognition programs, are generally designed to touch a large number of employees
across the organization. Process for establishing a recognition system :-

Step1-Establishing Step 2- Selecting Step 3-Developing

Step 5-
Step 6 - Preparing Step 4 - Designing
Piloting/Introducing

Step 8- Evaluating Step 9- Providing

Step 7- Planning
Ongoing Support

Step 1 – Establishing the Framework :-

When a dedication to a reward and recognition mechanism has been identified and existing
trends have been analyzed, the company will step on to decide whether such a mechanism
will be enforced.
Goals-
The objectives of this step in the process are:
o To assess the aim of the project.
o Define the various aspects of the operation.
o Identify how the method will be evaluated to assess success.

29
Step 2 - Selecting a Champ

Once institutions have been created, the organization must choose a champion to ensure that
the system can obtain the required support at the top level of the organization. The champ is
there to make sure that the support pieces are available and to eliminate obstacles. This also
should be done by senior management.
Goal
o To find someone who can direct the process successfully and who is able to do
so.

Step 3 – Developing the Process Parameters

Designing Process Parameters At this point, high-level recognition parameters must be set by
senior management. This could be best done in a planning retreat environment.
Goal
o To decide what is essential to management in terms of compensation and
appreciation and to ensure that the process created also meets the needs and
desires of employees.

Step 4 – Designing the Process

Following the creation of macro-level criteria by top management, a creative team will be set
up to design the details of the process. The organizational champion will either chair or
closely track the design team.
Goals
o Decide what the procedure will look like;
o Determine what needs to be included in the process; and
o Detail how to provide and obtain arrangements for the required incentive and
recognition.

30
Step 5 – Piloting/Introducing the Process
Finally, the Agency will conduct a true pilot program (first division or unit) or step in the
chosen project. It allows changes to be made to the template before being rolled out to the
entire company.
Goal
o Provide time for people to comprehend, check and review the process and learn what
works and what doesn't work.

Step 6 – Preparing for Rollout

Managers and staff needs to be educated on how the system should work and the new way of
thinking required to build an successful culture of reward and appreciation. There has to be a
plan detailing the education process.
Goal
o To ensure that everybody gets the same message about the recognition process and to
lead managers and workers in the new cultural understanding that the process is
intended to help develop.

Step 7 – Planning for Infrastructure Support

The planning process must account for the management of resources and the recognition of
the budget. In addition, an administrative process needs to be established.
Goal
o To decide what is going to be done, by whom, where, how, and at what cost.

Step 8 - Evaluating and Planning for Process Improvement

As people and circumstances change, the Organization needs to establish an evaluation
system for the process. The Agency's Return on Incentives (ROR) calculation would be
improved by a successful assessment process. This also offers an incentive to recognize and
incorporate future improvements. Measures should have been identified during the design
process, and this step should have been taken.
Goal
o Implement a rigorous assessment framework with practical action and a mechanism to
propose improvements to the method.

31
Step 9 – Providing Ongoing Support
It is a challenge to keep the process new and meaningful for employees. Maintenance of
systems has to be carried out in advance, since even successful programs suffer from inertia.
The method has to be enjoyable and welcoming.
Goal
o Build an strategy that will make it easier for people to understand how to use the
method and keep people from falling back into old habits.

This study is a comparative study as it helps Novo Nordisk to reframe their reward and
recognition policy through benchmarking process .The significance of the project is to
understand the reward and recognition policy at Novo Nordisk specifically in
consideration of product specialist and first line manager. It also covers the strategies the
organization uses to recognized the employees and to understand the reward system.

In the study companies taken for the comparison are Sun Pharma, Pfizer and Cipla.
The details for this project is collected from set of questions targeting the medical
representative of the above mentioned companies. The survey was collected by doing
cold calling to the targeted audience.

Medical representative of the above mentioned companies were asked a set of questions
regarding their daily allowances, rewards, how their company recognizes them on
performing well and what do they give them when they achieve their sales targets.
Through this study we get a brief understanding about the efforts that are put in by the
medical reps, their recognition in their organization in respect to this efforts and the work
appreciation do they receive (monetary terms or non-monetary).

The purpose of the study conducted, was to understand the current reward and recognition
practices in Novo Nordisk and to compare with the other pharma company’s
The major outcomes from this study provided insights of the reward and recognition
strategy of Novo Nordisk. and the differences as well as the similarities with the other
companies. In the parameters that the companies use as a base for rewarding and
recognizing its employees and the various frequencies at which the reward and
recognition is practiced in various departments within the same companies.

32
 Chapter 2

Review of Literature

Reward is a broad structure that has been said to represent anything that an employee may
value and that the employer is willing to offer in exchange for his or her contributions
(Chiang and Birtch, 2008). The lack of rewards will create an unpleasant environment,
which will reduce the work effort of employees and may lead them to take advantage of
their jobs. For these factors, the incentives are rising. The key goals of the incentives are
to recruit and retain workers, to inspire workers to achieve high standards of performance
and to promote and improve the desired actions of employees. Organizations also use
financial incentives to discourage discontent and encourage workers, but they may not be
the greatest motivator in the long run (Mossbarger and Eddington, 2003).

Deeprose (2014) claimed that "while the presence of money might not be a very good
motivator, the absence of money is a powerful de-motivator." In addition, financial
incentives are important not only in terms of their instrument value as a medium of trade,
but also as a highly tangible means of recognizing the importance of an person, improving
self-esteem and symbolizing success and achievement (Armstrong, 1996).

Rewards are of two different types; extrinsic and intrinsic incentives are often called
financial and non-financial incentives, and these rewards are further divided into so many
subcategories. Extrinsic incentives refer to financial compensation or cash related to such
items as structured appreciation, fringe benefits, bonus type bonuses, employment,
promotion and non-financial or non-cash incentives as accomplishment, accomplishment
sentiment, acknowledgement, work satisfaction and development (Clifford, 1985).

33
 Chapter 3

Research Methodology

Selection of Participating Organizations:-

In India there are more than 20,000 plus pharmaceutical companies , out of which more than
50 medium and large scales are present in different parts of Mumbai. In the last few years
Sanofi, GSK, Abbott, Novartis and many more companies have established very well in
Mumbai and Navi Mumbai.

For descriptive type of research study, companies were selected on the basis of ; the
competitors of the Novo Nordisk and companies who are manufacturing same kind of
products.
Selection of Sample Size:-
In determining sample size, it was important that the sample studied adequately represents the
population to which the researcher has chosen (Research forum, 1995).Data for the research
study were collected by the convenience sampling technique from the medical representative
of mentioned pharma companies.
Sample size for Novo Nordisk: 10
Responses: 10
Sample size for Sun Pharma: 10
Responses: 6
Sample size for Pfizer: 10
Responses:8
Sample size for Cipla: 10
Responses: 10

The study uses primary data as a basis for the research. The collection of primary data was
done by first drafting the questionnaire and then making calls to the respondents (medical
reps)i.e. the data was gather through telephone survey.
The secondary data was collected through company websites, articles, research papers etc.

34
 Chapter 4
Results

1. Daily Allowance given to medical representatives

Descriptive Statistics

2. Types of reward and recognition

In terms of types of reward and recognition offered by organization the study
found that all the four companies yearly award function to recognize their
employees.

3.Elegiblity Criteria
In the study it was found that the eligibility criteria for receiving reward and get
recognized was target based in all the pharma companies which are taken in the
study.

4. Number of recognition programs

Trough the study it was found that the medical representative in all the pharma
companies have yearly recognition programs which are the award functions as
mentioned above.

5. Different rewards for medical representative

35
 Chapter 5

Discussion

Novo Nordisk

Novo Nordisk is a global healthcare company with 95 years of innovation and leadership in
diabetes care. This heritage has given us experience and capabilities that also enable us to
help people defeat obesity, hemophilia, growth disorders and other serious chronic diseases.
Headquartered in Denmark, Novo Nordisk employs approximately 43,200 people in 80
countries and markets its products in more than 170 countries.

The practice followed in Novo Nordisk for rewarding their product specialist is by
recognizing them as “STAR PERFORMER” of the month. The parameters for gauging the
star performer of the month are :-
Key Performance Indicator (KPI) includes :-
Call plan compliance A- 95%
• The sales reps have to call 4 times a month
Call plan compliance B- 95%
• The sales reps have to call 3 times a month
Call plan compliance C
• The sales reps have to call 2 times a month
Call average; It differs from team to team
Number of lead- 100 on an avg per month
New prescriber; 5 every month
Reporting discipline-10%
Iselling is tool through which medical representative sell the product using iPad.

36
Through which they brief the doctors about their different products :-
iselling – 3.5/7 min for zone and upper limit is 6min
The daily allowance given to the medical reps is Rs 275

Sun Pharma

Sun Pharmaceutical Industries Limited is an Indian multinational pharmaceutical company

headquartered in Mumbai, Maharashtra that manufactures and sells pharmaceutical
formulations and active pharmaceutical ingredients (APIs) primarily in India and the United
States. The company offers formulations in various therapeutic areas, such as cardiology,
psychiatry, neurology, gastroenterology and diabetology. Sun Pharma stood second in the
India’s most reputed brands list in a study conducted by Blue Bytes.

In the organization, there is a continuous and conscious effort to recognize excellence in

performance through various programs implemented across the company. Prompt and instant
recognition is given to employees for exceptional performance through various recognition
schemes. Regional and functional awards facilitate the recognition of employees’
involvement and inputs towards the realization of goals.

The daily allowance give to its reps is Rs 250.There is a Star Club award given to the medical
reps. The criteria to get this award is to achieve the targets. The targets include no. of calls
per day and no. of leads achieved as per the target. This program of recognition is done
yearly. The employee is rewarded by giving them a foreign trip.

A motivated employee is an invaluable asset. Recognition and recreation are two great tools
to create an environment where the employees feel inspired to go beyond their call of duty. A
continuous and conscious effort to reward excellence in performance through various

37
programs has been consistently implemented across the company. Prompt and instant
recognition is given to employees for exceptional performance through various recognition
schemes. Regional and functional awards facilitate the acknowledgement of employees’
involvement and inputs towards the realization of goals. Some of the other mechanisms
include:

• Special celebration to accord due recognition to the retiring employee

• Long-service award to recognize the loyalty and commitment of employees

• Family picnics to foster camaraderie

Pfizer

Pfizer is a leading research-based biopharmaceutical company. It is an American

multinational pharmaceutical corporation headquarter in the New York city. It is one of the
world’s largest pharmaceutical companies. Pfizer India has been recognized as one of the best
place to work for.

The employee are given the daily allowance to the medical representative is Rs 330. The
medical representative are given award for performing outstanding. This is done yearly and
the reps have to achieve the targets which are specified to them by the company.

Pfizer offers competitive compensation and benefits based on a variety of factors including
prior experience, geographic location, and talent pool availability.

The methods used by Pfizer to recognize their employees:-

• Pay for Performance Philosophy and Practices:-

Pfizer structures its compensation policies and practices to recognize that colleagues
should be rewarded based on the contributions they make to our business.

38
 • Benefits to Maintain and Promote Health and Wellness:-
Depending on the customs and laws of a specific country, Pfizer offers colleagues
health and wellness programs that help them maintain and promote optimum health
and wellness. These programs can include health and disability insurance,
preventative health programs, medical screening, free or reduced-cost vaccinations,
discounts on Pfizer products, and nutrition and fitness counseling.

• Benefits to Help Colleagues Meet Financial Goals:-

Depending on local custom and practice, Pfizer offers colleagues several benefits to
help them meet their financial goals. These programs can include access to colleague-
directed retirement funds, company contributions to retirement financial vehicles, life
insurance, and financial planning education.

Cipla

Cipla Limited is an Indian multinational pharmaceutical and biotechnology company,

headquartered in Mumbai, India. Cipla primarily develops medicines to treat respiratory,
cardiovascular disease, arthritis, diabetes, weight control and depression; other medical
conditions.
The daily allowance given to medical representative by the company is Rs 370.
There are three types of recognition :-
• Incentive based:-
Basic in which daily targets they have to achieved i.e. number of calls of doctors per
day, number of chemists visited and number of leads. This targets are divided into
percentages 100%, 105% and 110% and each of them are called silver, gold and
platinum respectively.

39
 If the medical rep achieve 100% target then he will receive voucher or lunch coupons
for Rs3000, if he/she achieves 105% then the amount is Rs 5000 and for 110% the
amount is Rs8000.

• Annual award function:-

The annual award function in Cipla is called Achiever’s Award. This annual award
function is organized out of India. The parameters for the receiving the achiever’s
award includes basics i.e. daily targets number of calls of doctors per day, number of
chemists visited and number of leads. The second parameter is sales if the reps are
able to sell the products and achieves 110% then individual award means only the rep
is invited for the award function and if the rep achieves 150% target then his/her
family is also invited for the award function.

• Product based recognition:-

Different product different recognition based on the department of the product and
budget given to them.

The team or department also sometimes take them on small outings like one day
picnic to imagica which motivates employee’s to work harder.

One of the most unique practice that takes place in Cipla is “No Direct Money” which
means the reward which is given to employees of the company are not give in cash or
cheque they are given lunch coupons, shopping vouchers etc. No direct cash is given.

There is one more reward and recognition is early elevation which many of the
pharma companies do not follow. Early elevation means if the medical representative
is performing outstanding and although it’s been a year only if HR feels that he/she is
ready for the managerial post then he is promoted to manager’s post. This leads to
very high motivation in other employee’s to perform well and work hard.

40
 Chapter 6

Conclusion

Through this study we conclude that the reward and recognition in pharmaceutical companies
are based on targets. The employees are rewarded on basis of their performance and targets
achieved by them. All though the parameters are same but the kind of recognition given to the
medical representative is different in all the organization. In Novo Nordisk there is only one
reward that is star performer of the month while in other companies like Cipla the recognition
is divided in three parts so that all the medical reps get recognized and are more motivated to
work. The Pfizer promotes health and wellness and provide great fringe benefits to the
employees so that employees feels that company cares about their employees which leads the
employees to work more efficiently.

To sum up it is relevant to note that reward and recognition plays very important role in
pharmaceutical companies and it is the most important factor for their sales team to motivate
them and to bring business for the company. The parameters for in all the companies are
same i.e. targets based recognition but some companies recognized their employee monthly,
yearly or quarterly. The reward given to employee’s matters a lot and so that differs from
company to company in some cash prices are given in some companies gift vouchers are
given and in some trips are sponsored by the company.

41
 Chapter 7
Bibliography/ References

https://optymyze.com/blog/incentive-plan-ideas-for-your-sales-team/
https://hrdailyadvisor.blr.com/2012/09/25/spot-awards-a-detailed-plan-you-can-use/
https://hr.berkeley.edu/compensation-benefits/compensation/recognition/spot-award
https://www.slideshare.net/sivapriya28/tcs-reward-system-detailed-report
https://www.cleverism.com/how-to-recognize-reward-your-employees/
https://www.slideshare.net/silvychahal/rewards-and-recognition-practices-in-india-2013
https://www.pfizerindia.com/eNewsWebsite/bestc.aspx
https://www.rjpbcs.com/pdf/2014_5(5)/[221].pdf
https://www.novonordisk.co.in/
https://www.sc.edu/about/offices_and_divisions/human_resources/docs/employee_recognition_co
nsultation_package.pdf

42
 Chapter 8
Appendices

Question used for data collection is mentioned:-

1)Name
2)Company
3)Experience
4)Designation
5)Location HO/ZO
6) What is your salary structure /CTC/DA
7) Types of Reward and recognition does your organisation offer?
8) What are the eligibility/performance requirements for your reward and recognition
program?
9) How often are you rewarded and/or recognized?
10) What kind of rewards are given?

43
 Section III

Corporate Social Relevance

44
 Executive Summary

Corporate Social Responsibility is an organization's duty to make responsible decisions

and take steps that will promote the health and wellbeing of both communities and
organizations. Corporate Social Responsibility (CSR) has seen a massive rise in
knowledge and influence in the global arena in the past few years. The shared goal of the
domestic and international business community today is to bring out capital in a way that
is socially and environmentally responsible. The Pharma companies need to step beyond
a limited concept of CSR and look at some of the ways to reduce poverty and rural
development when it comes to the social responsibility of pharmaceutical companies.
This study aims at providing information about how the Novo Nordisk is creating the
value by serving to the society.
Novo Nordisk being one of the leading player in pharmaceutical industry for
manufacturing insulin believes that a healthy environment, society and economy are
fundamental to long-term business success. With this believe they had started many
initiatives like zero environmental impact, Change Diabetes all these were started in the
benefit of the society and environment.

45
 Chapter 1

Introduction

Corporate Social Responsibility is the duty of an organization to take appropriate

selection and to take actions that will enhance the welfare and interest of society as well
as the organizations. In the current years Corporate Social Responsibility (CSR) has
witnessed immense growth in awareness and control within the global arena.When it
comes to social duty of Pharma corporations, the Pharma agencies want to move beyond
a narrow definition of CSR and look at some of the methods to help society in different
ways. In pharma companies CSR is a concept in which they just cannot consider their
profitability and growth but they have to include the interest of society and environment
by taking responsibility for the repercussion of their activities on stakeholders,
shareholders, employees, customers and many others. CSR has turn out to be an
increasing number of outstanding within the Indian corporate situation due to the fact
corporations have found out that except developing their organizations it's also crucial to
construct sincere and sustainable relationships with the community at massive. This is
one of the key drivers of CSR programs.

The Danish pharmaceutical Novo Nordisk is very well known leader in insulin. The
company decided to take ethical approach with regards to its business. In 2004 company
and its management decided for not only achieve the financial targets but also to
concentrate on social and environmental issues, so they adopted John Elkington’s (1994)
Triple Bottom Line paradigm( economic growth, ecological balance and social progress).
The Triple Bottom Line is anchored in the company's Articles of Association (bylaws)
and the Novo Nordisk Way as the way they do business. It is applied to ensure that
enterprise decisions balance financial, social and environmental considerations,
continually preserving in thinking the first-rate pastimes of the patients they serve.
Novo Nordisk’s ambition is to be a sustainable business.

46
The TBL approach has environmental responsibility so the company has ambition to
have zero environmental impact means the mindset is to design the products which can
be recycled, reshaping the business practice to minimize consumption and eliminate
waste, and working with suppliers who share the same ambition. The roadmap they have
taken to have zero environmental impact is as follow:-
• Switching to renewable electricity- The company decide to have renewable
electricity i.e. throughout the global production everywhere solar power will be
used and by 2020 they achieved the goal of 100% renewable electricity across
global production. By 2030 aims to have zero CO2 emissions from their global
operation and transport.
• Designing eco-friendly products- Manufacturing of the products which can be
reused to reduce the number of waste.

Novo Nordisk has many programs and partnership for serving the society. They have
initiated programs The Change Program which focuses on Changing Diabetes, Changing
Hemophilia and Changing Obesity. The Novo Nordisk Partnered with the international
committee of the red cross for improving diabetes care in humanitarian crises. They have
initiated a program in 2010 called Based of the Pyramid program which aims to provide
sustainable solutions that support the cohesive approach to diagnose, treat and control of
diabetes for the working poor living at the base of the economic pyramid.

47
 Chapter 2

Review of Literature

In a Carroll (1998) survey on pinnacle 500 largest Indian firms, it was determined that
CSR had been announced by about 49 per cent of agencies. Many of the groups record
on donations, renovation of village schools, mid-day food etc. properly specified CSR
expenditure has been seen through very few companies. Additionally, the study
published that only 25 per cent of CSR organizations had to do something for workers
and the remainder concentrated on community and society at large. In tangential
approaches such as donations to charitable trusts or NGOs, sponsorship of activities, etc.,
many organisations merely make symbolic gestures towards CSR, assuming that charity
and philanthropy are equivalent to CSR.

In 1991 Donna J Wood placed CSR not only a simple concept in a broader sense.
According to Wood, companies are supposed to play their part in elevating society,
recognizing human needs because of the fact that they have three positions as an
organization, as a company or corporation, and lastly as people (managers in the
corporation).These three functions can also be represented in three phases of CSR
credibility, public transparency, and budgetary management. In brief, "The fundamental
concept of corporate social responsibility is that rather than independent bodies,
commercial enterprise and community are interwoven."

Mathur and Vyas (2012), analyzed the situation assessment of CSR in India's
pharmaceutical enterprises. The paper underscored the value of CSR, its position in the
pharmaceutical industry. It was found that pharmaceutical companies are actively
engaged in social responsibility and make a significant contribution to society in various
fields, especially sustainability and the environment.The advice given in the paper used to
be that industrialization caused an increased danger to the environment to resolve the
need for pharmaceutical firms to follow the "Greening of Management" strategy, recycle
water waste to nullify the impact that has been triggered so far.

48
 Chapter 3

Research Methodology

Research Design-

A researcher is only interested in explaining the situation or case in a concise

manner in the context of their research report. It is a theoretically based design
approach that is generated by gathering, evaluating and presenting the data
obtained. This helps a researcher to have insight into why and how work is
done. Descriptive nature allows us to better appreciate the need for analysis.

Research Tool-
There are many methods of data collection which can be used according to nature and type of
research. In the study secondary data is used for the research purpose. Secondary data
analyses the whole business record and the balance sheet of the organization in
which the project work has been carried out. In addition, a variety of reference
books, journals and studies have also been used to formulate a theoretical research
model. And some information was also taken from the websites.

49
 Chapter 4
Results

In 2019, Novo Nordisk provided medical treatment to an estimated 30.0 million

people with diabetes worldwide, compared with 29.2 in 2018.

1. Changing Diabetes in Children extended to three more states – Jammu & Kashmir, Punjab
and Rajasthan

2. More than 40 camps run, reaching around 3000 children

3. Awareness and education through more than 10 social media messages and videos

4. Total 208 diabetes clinic were established by the end of 2019.

5.They have trained 15,100 plus healthcare professionals.

6. In India through this program they have reached 25,000 plus children and
adolescents.

50
 Chapter 5
Discussion

Corporate Social Relevance

The Novo Nordisk has 90 years of experience in bringing the pioneering diabetes
products to the market. The organization is managed by the Novo Nordisk
Foundation whose objective is to provide the long term sustainable solutions for
tackling diabetes. To Achieve this goal the company started the CSR activity called
Changing Diabetes.

Changing Diabetes

The initiative Changing Diabetes is Novo Nordisk response to the global diabetes
challenge. In 2008, they introduced the Changing Diabetes platform. Changing
Diabetes is that commitment for defeating the diabetes pandemic by working with
partners to raise awareness, improve access to care and address psychosocial aspects
of diabetes. Examples of such initiatives are the Changing Diabetes Barometer and
Changing Diabetes in Children program. In addition, they have set a long -term
target to provide medical treatment to 40 million people with diabetes worldwide by
2020, doubling the number of people they serve.

Shared Value Creation:-

The organization believes that what is good for people with diabetes and what is
good for society is also good for them. The main objective is to create value for
people with diabetes, society, partners and for Novo Nordisk. They call this as
creating shared values. The organization believes that for creating the shared value
they need to collaborate with non-government organizations, state government and
other partners who helps to reduce the barriers to diabetes care.

51
Awareness:-

The diabetes epidemic expands in India and largely the population is unaware about
disease, how to it and its potential complications. Novo Nordisk convey this issues
in two ways improving general public awareness and improving awareness in local
communities.

Improving general public awareness:- They work to raise diabetes awareness among
the general public through activities such as educational programmes, exhibitions
and screening camps. The company accomplishment became more significant when
they established World Diabetes Foundation (WDF) an independent NGO formed
only for prevention and treatment of diabetes in developing countries. Through this
WDF, awareness-building messages have reached an additional 10 million people in
India. Through screenings, almost 313,000 people have been diagnosed .

Improving awareness in local communities:- There are very limited skilled

healthcare professionals are limited which means that Accredited Social Health
Activists (ASHAs), are important. ASHAs play very important role in increasing
awareness of diabetes among the population.

ASHAs, which are an important part of the National Rural Health Program, undergo
basic training and can provide people with diabetes with essential primary
healthcare. Health workers are successful in disseminating information as
trustworthy members of the community. ASHAs also play a central role in our
social business initiative by enhancing diabetes treatment for people at the base of
the pyramid.

52
Changing Diabetes in Children

"Diabetes is not a disease but a disorder which can be corrected with the right treatment.
Parents need to be strong and cheerful so that children with type 1 diabetes live a cheerful
life".

- Dr. APJ Abdul Kalam

In world there are about 480,000 children under the age of twenty years with type 1
diabetes, out of those many of them belong to lower and middle income countries.
The mortality rate are high to those children. In some countries the life expectancy
of these children is less than one year after the diagnose. This is because of less
awareness, poor accessibility and affordability of the diabetes care.

Vision- To promote and work for affordable, quality diabetes treatment in India for
the economically deprived children with type 1 diabetes.

Mission-

o Access to medicine, and understanding among patients and parents to

improve the infrastructure.
o Working on capacity building among HCPs to help manage children with
type 1 diabetes.
o Developing the advocacy network to get the Govt's attention. And policy
makers in India on different requirements for children with Type 1 diabetes.

Objective-

o Infrastructure and facilities enabling.

o To have insulin, to monitor, to diagnose and to consult.
o Developing ability among healthcare professionals Educating children and
their parents on the importance of self-management.
o Developing alliances that allow for a sustainable model.
o Establishing a Type 1 diabetes registry for children.

The Changing Diabetes in Children (CDiC) program is part of the' Access to

Diabetes Care' policy of Novo Nordisk and builds on the cornerstones of the right to
health established by the United Nations. The main objective of the program is to
contribute to achieving the fourth UN Millennium Goal-reducing infant mortality by

53
breaking down barriers in developing countries that prevent children with type 1
diabetes from receiving proper care.

The Change Diabetes in Children (CDiC) main objective is to provide a

comprehensive diabetes care and management to children who are below poverty
line. The program helps the children with type 1 diabetes to get the access for good
diabetes care. This activities are run with the collaboration with local and
international partners. Each contributing with specialized talents to break down the
barriers that save’s children from receiving proper diagnosis and remedy.

In India CDiC was started in the year 2011 with the motive of reducing child
mortality by breaking the barriers that prevent children from type 1 diabetes in
developing countries from receiving proper care. This program was inaugurated by
ex-president Dr. Abdul Kalam.
The International Diabetes Federation estimates that almost half a million children worldwide
now have type 1 diabetes. Of these, more than 1.12 Lakh children are in India. This first of its
kind program in India aims to reach children with type 1 diabetes up to the age of 18 years at
time of enrollment from the underprivileged families over the next three years.

Every child enrolled in this program gets free essential diabetes care which includes: Insulin,
Syringes, Glucose meter and strips, Laboratory test, psychosocial support, Diabetes
education.

Free Insulin & Supplies

• 3 lakh vials distributed to date costing Rs. 4.2 crores 11 lakh syringes worth Rs. 40 lakhs dis
tributed.
• 4,000 Glucometers and 18.5 lakh glucose strips for testing costing Rs. 3.69 crores provided.
• HbA1cs, CBCs, Microalbumin, Fundus and TSH > 50,000 tests conducted at the cost of Rs.
90 lakhs .
• More than 19,000 doctor's consultations undergone costing Rs. 39 lakhs.

54
Children Camp:-
In 2013, they conducted 116 diabetes awareness camps to focus and incorporate self-
management awareness on diabetes. Such camps concentrate on three key components to
help children control their diabetes and lead a healthy life :
1. Diabetes education
2. Experience sharing
3. Fun activities.

In India, we have reached out to more than 4000 children with type 1 diabetes from
economically deprived parts of society and given intensive diabetes treatment for them.

They have 21 centers operating around the country and 4026 children from
disadvantaged families with type 1 diabetes are receiving good diabetes treatment
through them. The smiles on the faces of these little ones with diabetes, who are
now promised the best possible treatment and care with the CDIC program, make
company worthwhile.

55
 Chapter 6
Conclusion

CSR plays a very important role in today's world development scenario and many CSR
initiatives are carried out by corporates in partnership with NGOs who are well versed in
working with local communities and are experts in solving all the social problems. A
successfully applied CSR approach calls for these programs to be matched with company
priorities and corporate responsibility through the company values to make CSR simpler,
stronger and centred on what really matters.
Corporations have clearly demonstrated their desire to make a major difference in
society from sensitive practices to environmental programs, and to enhance the overall
quality of life. In India's current social condition, it is difficult for a single person to
bring about change, because the size is massive. To drive comprehensive social change,
pharmaceutical companies have the experience, strategic thinking, manpower, and
resources. They have strong collaborations with NGOs and the Government should bring
the social development of India on a faster path in a safe way.
Novo Nordisk's Change initiative is an excellent example of mutual value development
in the pharmaceutical area. Novo Nordisk has done two things in a variety of low-and
middle-income countries with strong market potential for insulin sales, such as China,
India and Indonesia: a thorough evaluation and prioritization of significant obstacles to
access to treatment and the establishment of cross-sectoral collaborations with
government organisation, NGO’s and civil society.

56
 Chapter 7
Bibliography

https://www.novonordisk.com/about-novo-nordisk/changing-diabetes.html
https://www.novonordisk.com/sustainable-business/performance-on-tbl.html
https://www.researchgate.net/publication/256032357_Managing_CSR_Globally_and_Lo
cally_Lessons_from_a_CSR_Leader
https://www.novonordisk.com/sustainable-business/commitment-to-access-and-
affordability/programmes-and-partnerships/changing-diabetes-in-children.html
https://www.novonordisk.co.in/about-novo-nordisk_old/changing-diabetes-0/changing-
diabetes-in-children.html
https://www.novonordisk.com/content/Denmark/HQ/www-novonordisk-
com/en_gb/home/sustainable-business/commitment-to-access-and-
affordability/programmes-and-partnerships.html
http://www.pharmabiz.com/NewsDetails.aspx?aid=99055&sid=2
https://www.3blmedia.com/Profiles/Novo-Nordisk
https://slideplayer.com/slide/12801224/
https://www.pdffiller.com/jsfiller-
desk18/?projectId=422605917#14e436ce904c59fda84e5386a9fe8c04
https://www.novonordisk.co.in/about-novo-nordisk_old/changing-diabetes-0.html
https://www.novonordisk.com/sustainable-business/zero-environmental-impact.html
http://nnef.in/nnefadmin/uploads/medianewsletters/cdic-Jan%202014.pdf
http://nnef.in/changing-diabetes-in-children

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