The Republic of Novo Nordisk: Exploring the Relationship Between a Multinational Firm and a Small Society

Abstract

This thesis seeks to illuminate the relationship between a multinational firm and a small society. Specifically, we aim to shed light on how these types of state-business interactions impact both the firm's employees and other societal actors. To do this, we present a case study of Novo Nordisk, a leading pharmaceutical company, and its relationship with its country of origin, Denmark. We focus on a time of significant growth and increased influence for the company in the period of 2021-2024. Using a series of qualitative interviews with current and former employees and select industry experts, we reach eight findings that illuminate the tensions between the firm and society in our case. We conclude that the dynamics of this relationship impact both employees and society in both positive and negative ways. Internally, Novo Nordisk is affected by increased societal pressure that is further enhanced by public attention towards the firm. Additionally, we find that external members of society are increasingly impacted by the close state-business relationship, contributing to the firm's pro-societal efforts, including taxes, job creation, and societal grants. In return, Novo Nordisk appears to leverage its political influence through corporate political action to influence societal aspects in its favor. However, we show how the increasingly close state-business relationship holds implications for democracy and the level of trust in society. Furthermore, we found that distinct cultural attributes in Denmark contributed to a high sensitivity toward state-society relationships. The insights of this thesis contributes to academic discourse and also offer practical insights for companies navigating similar contexts, highlighting the complexities of maintaining a balance between corporate success and societal welfare.