Novartis engages with an extensive network of suppliers worldwide and their contributions are crucial to our success. With such global reach, ensuring that our goods and services are ethically sourced is paramount.
In late 2016, we launched a Third-Party Risk Management (TPRM) program. The program follows an in-depth review of our supplier management systems and processes, and an assessment of the most significant issues in supplier management to help us gain a holistic view of our key risks currently covering seven risk areas: anti-bribery; animal welfare; health, safety and environment (HSE); labor rights; information security; data privacy; and quality for good manufacturing practices. The completion of the global program rollout marked the official retirement of our former responsible procurement (RP) program, as of August 2019.
The objective of the TPRM program is to strengthen an integrated approach to third-party risk management through one end-to-end process underpinned by a single technology solution, delivering quality and efficiency improvements. With this new model, we expect to gain depth and breadth, and move toward a comprehensive supplier risk management framework that includes all key risk areas. We believe this new state-of-the-art model will bring consistency and rigor to how we qualify and manage supplier risks, while being simpler, scalable and more transparent.
The Novartis Third-Party Code (PDF 0.5 MB) (formerly the Supplier Code) sets out our expectations for our third parties. It is aligned with the Novartis Code of Ethics (PDF 4.1 MB) and is based on the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and other international standards and accepted good practices, such as those of the International Labor Organization. Novartis is also a member of the Pharmaceutical Supply Chain Initiative (PSCI) and supports its principles for responsible supply chain management for ethics, labor, health and safety, environment and related management systems. Since 2018, we have played a leading role on the board, and we chaired the PSCI in 2019.