BUSINESS

&
HUMAN
RIGHTS

GROUP 7
Anushka Dey – P41004
Saurabh Jariwala – P41042
Simone Roy Gupta – P41050 Implementing a Living Wage Globally:
Srikanth Reddy – P41076 The Novartis Approach
Priyank Joshi – P41096
Ram Sandeep Peddada – P41100
1.
Rights in
UDHR ILO Convention Constitution of India
Violation

Convention 87: Freedom of

Article 19: Freedom of Profession and
Association and Protection of right to
freedom to form associations
Right to Work Article 24: Right to work Organize
Article 43 A: Secure participation of
Convention 98: Right to Organize and
workers in the management
Collective Bargaining

Article 38: Protect & Promote Social

and economic welfare
Right to Equal Pay for Article 25: Right to equal
Equal Work Convention 100: Equal Remuneration Article 39: Right to Adequate means of
pay for equal work
livelihood and Right to equal pay for
Equal work
Article 27: Right to a
standard of living adequate
Right to Life, Liberty and Convention 111: Discrimination Article 21: Protection of personal
Security for health and well being
(Employment and Occupation) liberties
Article 23: Right to Social
Security
2. 3.
The actions and policies of Novartis shows its commitment towards
Problem achieving the UNGC Goals –
Area of Concern Defining the Area
Detected  Lack of benchmark led Novartis to partner with Business Social
Responsibility (BSR), local research bodies & NGOs’ to create precise
wage calculation framework aligning to the local standard &
Upholding the demographic needs.
Quantification of
Wages elimination of  It onboarded local management teams in different areas of its
living wages to
discrimination in respect
cater to basic (Labour standards) operations to fine tune living wage mechanisms addressing needs of
of employment and
needs.
occupation. challenges of those areas.
 The 3 Pillared Management Model focuses on these challenges –
i. Corporate Citizenship Policy – To frame and implement living
wage policy which surpasses average wages in areas of operation
to provide better livelihood to its employees. 
Incapability in Elimination of ii. Management structure – Formation of separate committees to
incorporation of discrimination and monitor and guide these new initiatives to achieve desired
Human Rights and
Corporate support and respect for results. 
Labour Standards
citizenship with the protection of
w.r.t wages and iii. Measurement of progress and impact – Regular monitoring and
emphasis to internationally
other
standardize living proclaimed human timely presenting reports to related bodies like UNGC and
standards rights.
multiple stakeholder to communicate recent developments. 
 Novartis has also assigned new research projects focusing on
developing world diseases like AIDS, Ebola etc. to create affordable
treatment and medicines for these populations. 
4. Analysis – 5. Recommendations –
 The decision of paying living wages higher than the  Regular adjustments of Living Wage Calculations
minimum wages at any cost and not reducing the wages
factoring in –
even in case of negative inflation is indeed praiseworthy.
 Inflation Rate
 Novartis is a pioneer in implementing Living Wages globally,
 Specific conditions of the country
with added access to medicine programs, training modules,
compliance assistance, incorporation of corporate citizen  Continuous improvement in usage of statistical

aspects etc., there is still much to be desired in terms of data

data collection and refining calculation techniques to  Analyzing the implications and repercussions if any
achieve customized living wages for different countries.
after the implementation of living wages in the
 More caution was needed while implementing living wages,
countries.
keeping in mind the disruption effects it caused in socially
 Extend this practice to third party suppliers of
and economically in different countries.
 As observed, the company was facing the issue of Novartis.

differences in living wages in different clusters in the same  Expansion and help to other industries across the

country, so that needs attention too. globe to adhere to living wages standards.
 Conclusion: Suitable Corporate Partners

• Novartis & BSR developed living wage methodology not specific to Pharmaceutical industry.
• Although potential application to other industries is being considered.
• Huge potential for living wage methodology in Pharma industry as Pharma’s own most of their operations.
• Companies not owning factories will face problem implementing the methodology as it wont cascade down the
supply chain.
• Novartis wants to make a difference and bring change with “Living Wage Methodology”.
• It is continuously ensuring improvement to ensure success of the initiative.
• But, due to its being an innovative method there is a lack of examples and only way forward is to not expect
perfection rather learn by doing.