Capitalism with a Conscience
Novo Nordisk is a name that commands respect, standing tall alongside the likes of Bayer, Pfizer, and Roche as one of the world’s most influential pharmaceutical giants. Known not only for its scientific breakthroughs but also for its distinctive foundation ownership model, Novo Nordisk has shaped global healthcare for over a century. On September 9, 2024 at the Saastamoinen Foundation Keynote 2024 event in Helsinki, the company’s Chairman of the Board, Lars Rebien Sørensen, captivated the audience with the story of Novo Nordisk’s remarkable journey and his vision for a more enlightened form of capitalism.
Novo Nordisk’s story began in the early 20th century with a mission to provide life-saving insulin to diabetes patients. Founded by a Nobel laureate and his wife, one of Denmark’s first female doctors, the company emerged from a personal challenge and transformed into a global enterprise after securing the rights to produce insulin from the University of Toronto. “Their promise was simple but powerful – to give back to society,” Sørensen emphasized, a pledge that continues to shape the company’s operations today.
At the core of Novo Nordisk’s success is its foundation ownership, which ensures profits are reinvested into research, healthcare, and sustainable development initiatives. This structure shields the company from short-term market pressures and enables a focus on long-term goals that benefit both business and society. “We’re not just here to create value for shareholders – we’re here to make a lasting impact on human health and the planet,” Sørensen stated.
In his keynote and the discussion that followed, Sørensen also addressed broader global issues, acknowledging the turmoil in the world while urging the audience to adopt a more optimistic outlook. He advised against becoming overwhelmed by the constant stream of negative news, as an excessive focus on long-term global problems can lead to information overload, stifle creativity and innovation, and result in the neglect of current challenges. Instead, he advocated for a balanced approach that emphasizes addressing present issues and leveraging core competencies.
“Diversifying into areas beyond your expertise makes you average,” Sørensen cautioned, underscoring the importance of sticking to what you’re good at rather than venturing into unknown territories. He stressed that Novo Nordisk has a responsibility to address unmet needs, such as the growing challenges of obesity and diabetes, and to fulfill its promise as a company. While acknowledging that business success is often influenced by luck, he argued that those who have benefited the most from the current system have a responsibility to contribute to a fairer distribution of resources and opportunities.
Sørensen also emphasized the need for a new form of capitalism – one where companies recognize that if they don’t act responsibly, society and policymakers will impose limitations. “We need enlightened leaders who understand that doing good for society is essential for our survival,” he said. This, he argued, is the Nordic form of capitalism, one that balances profitability with societal impact.
“This isn’t about charity; it’s about redefining the role of business in the world,” Sørensen concluded. “Capitalism with a conscience is not just possible – it’s necessary.”
Text: Annamari Typpö
