Our living wage initiative, inspired by our commitment to the United Nations Global Compact, demonstrates our positive impact on the lives of Group company associates and their communities.
Finding a workable model
In 2005, Novartis commissioned the non profit business association Business for Social Responsibility (BSR) to establish a methodology to calculate living wage levels across countries where Novartis Group companies operate – a difficult task given the economic variations existing between countries and the various standards of living.
To address such complications and develop a methodology that could be applied in a wide variety of countries, BSR divided the Novartis Group into two categories – OECD countries and developing countries – and customized living wage calculations to reflect regional differences.
Using the BSR calculations as a starting point, Novartis rolled out its living wage program, working in close consultation with local management in countries.
Continued commitment and future plans
Novartis began with a practical approach and continuously refined the methodology for setting living wage levels. Novartis and BSR continue to work on improvements to the methodology and periodic adjustments of the initial living wage calculations to account for changes in key factors, such as inflation.
Each year, Novartis Group companies review salaries for all associates and adjust salaries that fall below the living wage level. In 2011, 17 associate salaries were adjusted.