Our Credo - World Environment Center

Transcription

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2 0 0 4 S U S TA I N A B I L I T Y R E P O R T
Visit the 2004 Sustainability Report online
at www.jnj.com. We invite your comments
and feedback via our website or using
the comment card provided in this report.
“We must be good citizens—support
One Johnson & Johnson Plaza
New Brunswick, New Jersey 08933
good works and charities...We must
encourage civic improvements and
better health and education. We must
maintain in good order the property
we are privileged to use, protecting the
environment and natural resources...”
Cert no. SW-COC-1340
This report is printed on paper made from
100% post-consumer waste, certified for
the Forest Stewardship Council rules and
manufactured with wind-generated energy.
Printed by Pictorial Offset Corporation,
an ISO 14001-Environmental Management
Systems company.
The following trademarks and trade names of
Johnson & Johnson and its affiliated companies
appear in this report: BAND-AID, CHARITÉ, CYPHER,
DURAGESIC, MOTRIN, PROCRIT, REMICADE and TYLENOL.
The following trademarks of other companies also
appear in this report: HARRIS INTERACTIVE (Harris
Interactive Inc.), HEALTHMEDIA (HealthMedia, Inc.),
LIFEWORKS (Ceridian Corp.), WEIGHT WATCHERS
(Weight Watchers International, Inc.) and WORKPLACE RESPONSE (Screening for Mental Health Inc.).
© Johnson & Johnson Services, Inc. 2005
Living
Our Credo
The values that drive our business strategy of
sustainable, long-term growth and leadership
C
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S
GRI Content
I N D E X
SECTION ONE
Strategic Approach to Sustainability at
Johnson & Johnson – Living Our Credo
Chairman’s Message
Summary of Key Indicators
Sustainability Organization and
Management System
Our Credo
SECTION TWO
12
Responsibility to Customers
1
2
2
7
8
SECTION THREE
Responsibility to Employees
Safety
Health
Employment Policies and Practices
10
16
21
SECTION FOUR
Responsibility to Communities
Environment
Society
24
34
SECTION FIVE
Living
Our Credo
Responsibility to Stockholders
Financial Performance
Corporate Governance
Research and Development
38
38
39
Index
41
This report was prepared based on the Global
Reporting Initiative’s (GRI) 2002 Sustainability
Reporting Guidelines. The mission of GRI is to
promote international harmonization in the reporting of relevant and credible corporate economic,
environmental and social performance information
to enhance responsible decision-making. GRI
pursues this mission through a multi-stakeholder
process of open dialogue and collaboration in the
design and implementation of widely applicable
sustainability reporting guidelines. GRI has not
verified the contents of this report, nor does
it take a position on the reliability of information
reported herein. For further information about
GRI, please visit www.globalreporting.org.
The cover features
Dang Huong Giang,
a first grade student
in Vietnam, pictured
wearing a safety
helmet donated by
Johnson & Johnson
(see related story
beginning on page 13).
Photography by
Trinh My Anh of the
Asia Injury Prevention
Foundation.
For additional information
on Johnson & Johnson
programs and performance,
use the reply card enclosed
in this report or contact:
Brian K. Boyd, Vice President,
Worldwide Environmental Affairs
Tina Lucchetti, Manager,
Investor Relations
Johnson & Johnson
New Brunswick, NJ 08933
Website: www.jnj.com
GRI
TOPICS
REFERENCE*
Accident rates
LA7
Accidental releases
EN13
Association
memberships
3.15
Awards and
recognition
SO4
8,
Biodiversity
EN7
Business conduct
policies
SO2,3.7
Child labor
HR6
Community outreach
SO1
Compliance
Conservation
EN16
EN27
PAGES
2, 12-14, 15
2, 25, 26, 33
35, 41
15, 27, 31, 39
26-27, 32, 37
39
4, 23
2, 13-14, 25,
26-28, 35-36
2, 3-5, 23, 25, 26
2, 15, 25,
26-27, 37
19, 34-37
Contributions
EC10
Corporate
governance
3.1, 3.2, 3.6
Diversity
LA10,11
Employee health
and wellness
LA12
Employment
policies
HR 4,5,6,9
Energy use
3.19, EN3
Environmental costs
EN35
Ergonomics
LA7,12
External certifications
3.20
External manufacturers 3.16, EN33
Facility assessment
3.19
Fleet safety
3.19, LA7
Goals
3.19
38-39
4, 22-23
10, 16-22
21-23
2, 27, 28-29
32
11
2, 15, 25
4-5
4
2, 12-13
2-3, 5, 11, 13,
17, 24, 25, 27,
28, 32, 33
Greenhouse gases
2.16, EN8 2, 27, 28-29, 33
HIV/AIDS
LA8
19, 36, 39-40
ISO 14001
3.20
2, 25
Laboratory safety
LA7
11-12
Lost work days
LA7
2, 15
Materials
EN1
2, 27, 30, 33
Net sales
EC1
38
Nonproduct output EN10,11,12
2, 27,
31-32, 33
OHSAS 18001
3.20
15
Organization
3.4, 3.6
3
Our Credo
3.7
7
Packaging
EN1,14
2, 27, 30, 33
Process Excellence
3.19
38
Products
2.2, 3.13, 3.16, EN14
8, 9, 25
Renewable energy
EN17
28-29
Report coverage
2.11 - 2.14
2, 33
Research policies
3.14, 3.16
39-40
Standards
3.19
3-4
Strategic vision
1.1
1, 7
Supply chain
3.16, EN33, HR3
4-5
Toxic chemical
releases
EN10, 11, 12 2, 27, 31, 33
Voluntary initiatives
3.14
15, 29, 32
Waste
EN11
2, 27, 30-31, 33
Water use
EN5
2, 27, 29, 33
*GRI refers to the voluntary reporting guidelines
of the Global Reporting Initiative, available at
www.globalreporting.org.
Organizational Partnerships
As a good corporate citizen, we work with organizations
all over the world to advance the concepts of sustainable
growth, protect natural resources and enhance worker
health and safety. Members of our senior management
team also serve on the boards of major conservation and
health organizations.
American College of
Occupational and
Environmental Medicine
www.acoem.org
Business for Social
Responsibility
www.bsr.org
The Conservation Fund
www.conservationfund.org
Global Environmental
Management Initiative
www.gemi.org
Harvard Medical School,
Center for Health and
the Global Environment
www.med.harvard.edu/chge
Healthy People 2010
www.health.gov/healthypeople
National Safety Council
www.nsc.org
The Nature Conservancy
www.nature.org
New Jersey State
Safety Council
www.njsafety.org
Partnership for Quality
Medical Donations
www.pqmd.org
Prevent Blindness Tri-State
www.preventblindnessct.org
Student Conservation
Association
www.thesca.org
Trust for Public Land
www.tpl.org
US-EU Cooperation
on Workplace Safety
and Health
www.useuosh.org
The Wharton School
of the University of
Pennsylvania, Risk
Management and Decision
Processes Center
http://grace.wharton.upenn.edu/risk
The Wilderness Society
www.wilderness.org
World Business Council
for Sustainable
Development
www.wbcsd.ch
World Environment Center
www.wec.org
World Resources Institute
www.wri.org
World Wildlife Fund
www.panda.org
41
Section
1
S T R AT E G I C A P P R O A C H
T O S U S T A I N A B I L I T Y
Living Our Credo
I am pleased to present the 2004 Sustainability Report
for Johnson & Johnson, which describes our efforts –
through our vision, programs and performance –
to deliver on our commitment to sustainable growth.
Johnson & Johnson today is the world’s most
comprehensive and broadly based company in human
health care. Nothing has served us better in achieving
our record of long-term performance than Our Credo.
For more than 60 years, we have followed this simple
document, which states that our shareholders will
prosper if we serve our patients and customers, our
employees, the communities in which we live and
work, and the global community.
Our Credo articulates the values that drive our
business strategy of sustainable, long-term growth and
leadership. In essence, it is our sustainability strategy:
our Company’s commitment to meet our responsibilities
to people, communities and the environment. We have
organized this year’s report to align directly with the
Credo and more clearly demonstrate the relationship
between it and our efforts to support sustainable growth.
This report shows the character of Johnson &
Johnson, built on the strength, quality and diversity of
our people. Through the leadership of our employees,
we are pursuing a core set of strategic principles. We
are committed to remain broadly based in human
health care, discovering, developing and selling health
care products in more than 175 countries around the
world. We manage our business for the long term, by
advancing science and technology to keep us at the
forefront of health care. Under our form of decentralized management, we foster strong, skilled and diverse
business leaders at every level of the Company, making
decisions locally that enable us to better serve patients
and customers. And we operate on a foundation of
ethical principles, under the guidance of Our Credo.
In this report, you can learn about some of the
products we manufacture and sell that improve the
lives of millions of people, our leadership in providing
a healthy and safe workplace, our partnerships to
improve local communities, our efforts to protect the
natural environment, and our commitment to ethical
and responsible business practices.
One area of focus that remains critical for us is
William C. Weldon
Chairman of the Board and Chief Executive Officer
reducing carbon dioxide (CO2) emissions. It is clear that
continuing with “business as usual” is simply unacceptable in addressing the risks associated with climate
change. Through adoption of our Climate Friendly
Energy Policy in 2003, Johnson & Johnson companies
are implementing state-of-the-art technologies to
improve energy efficiency and harness renewable
resources such as solar and wind power. These projects
reduce our impact on the environment and improve the
security of our energy supplies while lowering the cost
of doing business. Our responsibility to the environment,
to communities and to future generations requires
us to build on these successes and continue working
aggressively toward our CO2 reduction goals.
I’m proud of the efforts of Johnson & Johnson
associates around the world to establish this corporation
as a leader in addressing climate change and other
sustainable growth issues. We believe that growth
and leadership will enable us to better address our
responsibilities to our many stakeholders – from those
who use our products to our employees, neighbors
and shareholders – today and in the future. We look
forward to continuing to work with others in achieving
this Credo-based vision.
William C. Weldon
Chairman of the Board and Chief Executive Officer
1
S U M M A R Y
O F
K E Y
I N D I C A T O R S
We define sustainable growth as
This table summarizes our 2004 performance in a number of
areas, as well as our progress toward meeting stated goals.
We collect and report data from our operating companies
worldwide; external manufacturers are not included in these
data. More information on our EHS performance is available
later in this report. Use the index at the end of the document
to locate particular topics of interest.
LOST WORKDAY CASE RATE
0.05 lost workday cases per 100 employees in 2004
58% reduction 2000-2004
SEVERITY RATE
1.52 lost work days per 100 employees in 2004
45% reduction 2000-2004
SERIOUS INJURY/ILLNESS RATE
0.03 serious injuries/illnesses per 100 employees in 2004
25% reduction 2000-2004
FLEET RATE
5.19 accidents per million miles driven in 2004
24% reduction 2000-2004
FIRES
32 fires in 2004
20% reduction 2000-2004
ISO 14001 CERTIFICATION
GOAL: 100% of facilities receive third-party certification
ACTUAL: 96% of facilities third-party certified by year-end 2004
REVIEW OF NEW PRODUCTS, PROCESSES AND PACKAGING
GOAL:
100% of new products, processes and packaging
reviewed for environmental impact
ACTUAL: 99% reviewed in 2004
REGULATORY COMPLIANCE
GOAL: Zero noncompliance events and accidental releases
ACTUAL: 15 Notices of Violation (NOVs)
5 penalties paid, totaling $30,800
23 noncompliance events identified from
275 agency inspections
186 self-reported permit noncompliances
CONSERVATION & COMMUNITY OUTREACH
GOAL:
100% of facilities implement site-specific conservation
and outreach plans
ACTUAL: 92% implemented such plans as of year-end 2004
GOAL:
100% of high exposure facilities initiate and maintain
community forums
ACTUAL: 76% conducted community forums in 2004
ENERGY USE – CO2 EMISSIONS
GOAL:
Absolute reduction in CO2 emissions of 4% from
1990 to 2005 and 7% from 1990 to 2010
ACTUAL: 3.1% decrease in absolute CO2 emissions from
1990 to 2004
GOAL:
100% implementation of Energy Best Practices
by year-end 2005
ACTUAL: 89% implementation by year-end 2004
WATER USE
GOAL: 10% cumulative avoidance 2001-2005
ACTUAL: 12.1% cumulative avoidance 2001-2004
Sustainability Organization
and Management System
Organization
I
n 2004, the Public Policy Advisory Committee
of the Board of Directors was the primary link
to the Board for review of the Company’s policies,
programs and practices on public health issues
regarding the health and safety of employees and
the environment. The committee advised and made
recommendations to the Board on these issues,
providing a direct avenue for the Board to consider
critical aspects of sustainability.
The Worldwide Environmental Steering Committee
reviews the Company’s overall environmental
performance by business segment twice per year.
This committee is chaired by Robert J. Darretta,
our Vice Chairman and Chief Financial Officer, and
includes senior management representatives from
Corporate Law, Government Affairs and Worldwide
Operating Group Management.
The Worldwide Health & Safety Leadership Team
is chaired by Michael J. Dormer, Worldwide
Chairman, Medical Devices and a member of the
Johnson & Johnson Executive Committee. The team
meets twice a year and focuses primarily on risk
reduction and accident prevention in the areas of
machine safety and ergonomics. Team members
include senior management from across the three
business segments (Pharmaceutical, Consumer, and
Medical Devices and Diagnostics), plus health and
safety global management.
RAW MATERIAL USE
Setting Sustainability Goals
PACKAGING USE
A
NONHAZARDOUS NONPRODUCT OUTPUT (NPO)
HAZARDOUS NPO
ACTUAL: 27% cumulative avoidance 2001-2004
TOXIC NPO
ACTUAL: 21% cumulative avoidance 2001-2004
2
achieving economic vitality
while promoting social equity and
environmental protection.
crucial component of our leadership approach
is setting goals and publicly reporting on our
progress. The Johnson & Johnson Next Generation
Goals are scheduled for completion in 2005. In order
to develop a new set of sustainability goals for
the Company, we began a comprehensive process
in 2003 with significant involvement of internal
and external stakeholders.
Organizational Structure
and Responsibilities
Public Policy
Advisory
Committee
Board of
Directors
Global Sustainability
Organization
Office of the
Chairman
Worldwide
Health & Safety
Leadership
Team
Executive
Committee
Worldwide
Environmental
Steering
Committee
Technical
Resources &
Compliance
Human
Resources
Worldwide
Environmental
Affairs
Energy
Management
Equal
Opportunity
Corporate
Contributions
& Community
Relations
Worldwide
Health
& Safety
Corporate
Medical
Global Health
Services
We engaged in dialogue with representatives of
nongovernmental organizations, industry, socially
responsible institutional investors, academia and
governments in the United States and Europe. These
conversations provided valuable insights on stakeholder
expectations of our industry, emerging issues facing
private enterprise, and potential leadership goals for
Johnson & Johnson. In addition, we examined the
goals of highly rated companies both within and outside
the health care industry, especially those that received
outstanding ratings from third parties. We used
feedback from interviews with more than a hundred
managers across six Johnson & Johnson companies
on a parallel project involving our Company values.
Building upon what we learned through this
process, we are working with representatives from
Johnson & Johnson companies worldwide to draft our
Healthy Planet 2010 goals. We will continue to refine
and test these goals to ensure that they will keep us
moving in the right direction, toward a more sustain-
The chart identifies the reporting relationships among
the various departments relevant to this report, but is
not meant to show the entire corporate organization.
able future for the environment, our employees and
the local communities in which we operate. The goals
will be finalized in 2005, and we will begin tracking
data aligned with these goals in 2006.
Standards and Assessments
J
ohnson & Johnson has established a comprehensive
set of environmental, health and safety (EHS)
standards for our operating companies and facilities.
Corporate staff regularly review and update the
practices with the aim of maintaining a forward-looking
stance and challenging ourselves to do better.
The corporation’s Management Awareness and
Action Review System (MAARS) is our global assurance
process for EHS, going beyond regulatory requirements
and reducing risk. It provides Johnson & Johnson
companies with a proactive approach and a set of
tools to assess EHS performance and drive continuous
improvement.
3
Our EHS Management System:
Beyond Compliance
E
ach of our companies and facilities is expected
to go Beyond Compliance, striving to set the
standard and be a leader among our peer companies
rather than simply meeting minimum requirements.
To conform to our definition of “Beyond Compliance,”
each Johnson & Johnson company will:
meet all Johnson & Johnson standards and
regulatory requirements
● optimize the design of products, processes
and facilities by incorporating quality, safety,
environmental and engineering standards
● proactively partner with regulators and
anticipate changes in regulations, standards
and public expectations
● achieve operational excellence
●
We firmly believe that our Beyond Compliance culture
creates competitive advantage for Johnson & Johnson.
Sustainability Beyond the Fence Line:
Working with Suppliers
We recognize that the EHS impacts that result from
the operations of those who supply goods and services
to Johnson & Johnson – our global supply chain –
are greater in magnitude than those resulting from
Johnson & Johnson operations alone. With more than
$20 billion in annual spending on materials, goods
and services, we have a tremendous opportunity to
improve conditions around the world. By leveraging
our supply chain relationships and helping to bring
about improvements in the way our suppliers operate,
we can have a greater overall impact than we can by
focusing solely on our own operational performance.
Our footprint and responsibility extend far
beyond our facility borders. Supply chain impacts are
identified as a key issue with rising expectations for
Johnson & Johnson and others in our industry and
across the private sector.
We separate our supply chain into two categories:
● suppliers of materials, good and services
● external manufacturers (EMs) – a subset of suppliers
consisting of firms that either provide active
pharmaceutical ingredients to our manufacturing
facilities or produce finished Johnson & Johnson
products
Each research and development (R&D) and manufacturing facility conducts a MAARS self-assessment
annually and develops a Management Action Plan
(MAP) based on the self-assessment results. The
assessments measure adherence to Johnson & Johnson
global standards and management system requirements, as well as applicable laws and regulations,
covering the full suite of EHS issues. The operating
company’s business leader periodically reviews each
MAP, demonstrating senior-level awareness of the
issues and commitment to corrective actions. Corporate
staff reviews the plans and conducts facility joint
assessments once every three years at a minimum to
ensure progress toward “Beyond Compliance.”
We regularly share information on our proactive
EHS programs with our suppliers and communicate to
them our expectations for strict regulatory compliance
at a minimum. Many Johnson & Johnson operating
companies have cultivated strong relationships with
key suppliers, a practice that brings strategic business
benefits. Having this type of supplier relationship also
enables us to work with those suppliers to design more
sustainable products and processes within their facilities.
For external manufacturers, we have established
a more formal evaluation process. Our policy requires
that EMs working with Johnson & Johnson agree, at a
minimum, to comply with all applicable EHS regulatory
requirements, to provide Johnson & Johnson with access
to information on their compliance status, and to follow
our Policy on the Employment of Young Persons. This is
part of our standard language used in contracts and
For more information on supplier policies at Johnson & Johnson,
including our Supplier Diversity Program, visit our website at
www.jnj.com/supplier_resources.
4
Living
Our Credo
purchase agreements, and noncompliance is grounds
for contract termination. In some parts of the world,
compliance with local laws or regulations may not
thoroughly address EHS issues. In those instances,
we require that a supplier adhere to some basic EHS
standards, such as making personal protective
equipment available to workers, having a written
emergency response plan, and preventing adverse
environmental impacts due to air or water discharges.
On the basis of periodic site visits to EMs, we
assign ratings of acceptable, marginal or unacceptable.
Johnson & Johnson companies cannot use any new
EM rated unacceptable, and if an existing EM receives
an unacceptable rating, we ask them to develop a
corrective action plan to improve their performance.
Facilities rated marginal receive site visits annually
and also are required to prepare and implement corrective action plans. Facilities rated acceptable receive
site visits once every three years. If an EM obtains
third-party certification for its environmental management systems (e.g., ISO 14001) or safety management
systems (e.g., OHSAS 18001), we accept that certification as evidence of an acceptable rating in that area.
As of year-end 2004, approximately 350 EMs out
of 1,300 have been visited to verify compliance. Our
goal is to complete on-site reviews of all EM sites by
the end of 2005.
EHS Benefits through Supplier Partnerships
W
e participate in collaborative projects to
improve EHS management of supply chain
issues as well as raise the level of EHS performance
at our suppliers’ facilities. Two programs in which
we took part during 2004 are described below:
●
Johnson & Johnson facilities in Puerto Rico are
participating in a pilot program of the Green
Suppliers Network (GSN), an initiative sponsored
by the US Environmental Protection Agency. GSN
seeks to work with all levels of the manufacturing
supply chain to achieve environmental and economic
benefits by improving performance, minimizing
waste generation and removing institutional
roadblocks. The network encompasses resources
across the United States for technical assistance
to manufacturers. Access to such resources can
help suppliers continuously improve their products
and processes, increase energy efficiency and
reduce waste.
●
Johnson & Johnson, together with the World
Environment Center (WEC) and the US Agency
SAFEGUARDING OUR SUPPLY CHAIN
BUSINESS CONTINUITY PLANNING
THROUGH
for International Development, successfully
implemented pilot projects in Mexico and Brazil
Business interruptions caused by natural or man-made
to promote the adoption of cleaner production
catastrophic events can have far-reaching effects on
by small to medium-sized supplier manufacturing
our customers, not to mention impacts to communities,
sites. During 2003, Janssen-Cilag S.A. de C.V. in
employees and investors. Johnson & Johnson has
Mexico initiated a series of workshops with
initiated a rigorous worldwide campaign to ensure that
more than 12 of its suppliers to present cleaner
business continuity plans are in place and fully integrated
production and lean assessment methods. In 2004,
into the overall strategic planning process at the
Johnson & Johnson in Brazil invited 15 suppliers to
company level. The goal is the uninterrupted flow of
its campus in São José dos Campos to begin their
products and services to our customers. Our Business
training in cleaner production. As a result of such
Continuity Planning (BCP) team has developed a
training, together with on-site assessment visits by
standardized process for facilities to use in assessing
WEC and its consultant, the participating suppliers
their vulnerabilities and developing their plans to
have been able to identify, prioritize and implement
restore all business operations in the event of a disaster.
dozens of projects that reduce waste, improve
The BCP team continues to conduct workshops in all
safety and lower costs. After the suppliers are
geographic regions where we operate. Each facility
trained in the assessment methodology, they are
tests and refines its business continuity plans through
using the techniques to find additional opportunities
table-top exercises. Successful execution of its table-top
for waste and cost reduction at their sites.
exercise is required on an annual basis.
5
Living
Our Credo
6
Our Credo
We believe our first responsibility is to the doctors, nurses and patients,
to mothers and fathers and all others who use our products and services.
In meeting their needs everything we do must be of high quality. We must
constantly strive to reduce our costs in order to maintain reasonable prices.
Customers’ orders must be serviced promptly and accurately. Our suppliers
and distributors must have an opportunity to make a fair profit.
We are responsible to our employees, the men and women who work with
us throughout the world. Everyone must be considered as an individual.
We must respect their dignity and recognize their merit. They must have
a sense of security in their jobs. Compensation must be fair and adequate,
and working conditions clean, orderly and safe. We must be mindful of ways
to help our employees fulfill their family responsibilities. Employees must
feel free to make suggestions and complaints. There must be equal opportunity
for employment, development and advancement for those qualified. We must
provide competent management, and their actions must be just and ethical.
We are responsible to the communities in which we live and work and
to the world community as well. We must be good citizens — support good
works and charities and bear our fair share of taxes. We must encourage
civic improvements and better health and education. We must maintain in
good order the property we are privileged to use, protecting the environment
and natural resources.
Our final responsibility is to our stockholders. Business must make a sound
profit. We must experiment with new ideas. Research must be carried on,
innovative programs developed and mistakes paid for. New equipment must
be purchased, new facilities provided and new products launched. Reserves
must be created to provide for adverse times. When we operate according
to these principles, the stockholders should realize a fair return.
7
Section
2
R E S P O N S I B I L I T Y
T O
C
U
S
T
O
M
E
R
S
“We believe our first responsibility is
to the doctors, nurses and patients,
to mothers and fathers and all others
who use our products and services.
In meeting their needs everything
we do must be of high quality…”
FROM OUR CREDO
Corporate Profile
Johnson & Johnson, through its operating companies,
is the world’s most comprehensive and broadly based
manufacturer of health care products, as well as a provider
of related services for the consumer, pharmaceutical and
medical devices and diagnostics markets. Johnson & Johnson
employs 109,900 people in 57 countries around the world.
Our 200 operating companies produce thousands of products
spanning our three business segments:
CONSUMER – Includes a variety of products for skin and hair
care, sanitary protection, wound care, oral care and baby care.
PHARMACEUTICAL – Develops products in the following
therapeutic areas: anti-fungal, anti-infective, cardiovascular,
contraceptive, dermatology, gastrointestinal, hematology,
immunology, neurology, oncology, pain management,
psychotropic (central nervous system) and urology.
MEDICAL DEVICES AND DIAGNOSTICS – Product lines
include surgical implants, instruments, wound closure devices,
orthopaedic products for joint repair and replacement and
for correcting spinal deformities; contact lenses; clinical
chemistry systems; medical devices, including circulatory
disease management products; and diagnostics for
identification of diseases.
Our customers include individual consumers as
well as medical professionals, doctors’ offices, hospitals,
clinics and other health care facilities.
Each business within the Johnson & Johnson Family
of Companies has a high degree of independence. Our
decentralized management philosophy seeks to foster
growth and innovation. Corporate functions – such as
health and safety, environmental affairs and engineering –
provide governance, standards, guidance and support to
our operating facilities around the world.
8
AWARDS &
RECOGNITION
●
Johnson & Johnson was named
#9 on Fortune’s 2005 Most Admired
Companies list and ranked as the
number one company in the annual
survey’s Pharmaceuticals category.
●
An annual reputation poll from
Harris Interactive® and The
Reputation Institute for 2004 cited
Johnson & Johnson for having the
best corporate reputation in America
for the sixth consecutive year,
since the inception of the survey.
Living
Our Credo
Our Products: Contributing to Healthier Lives
W
hether it’s analgesics or baby care, endoscopic
surgery or interventional cardiology, oral
care or wound care, Johnson & Johnson companies
make products that help people live longer and
stay healthier. Highlighted below are just a few of
the thousands of products our customers rely on to
improve the quality of their daily lives.
●
●
●
The CHARITÉ Artificial Disc represents a breakthrough
in non-fusion technology for the spine, offering an
innovative surgical option to physicians for treating
degenerative disc disease and related spinal
conditions. In 2003, DePuy Spine, Inc. acquired
the rights to this technology, which has been used
in Europe since the mid-1980s. In US clinical
trials comparing artificial disc replacement to
spinal fusion surgery, CHARITÉ Artificial Disc
patients maintained or improved their range of
motion, experienced pain relief more quickly,
had a speedier recovery and were more satisfied
with the procedure.
Another innovative medical device that has
helped many thousands of patients is the CYPHER
Sirolimus-eluting Coronary Stent, developed and
manufactured by Cordis Corporation. Used in the
treatment of coronary artery disease, the CYPHER
Stent is designed to prevent the excessive growth
of coronary tissue that can follow stent placement
procedures and which is a leading cause of
recurring blockage in the arteries. The CYPHER
Stent is coated with a polymer that slowly
releases Sirolimus – a substance that prevents
such overgrowth of coronary tissue.
REMICADE (infliximab) is an innovative treatment
that works with the body’s immune system to help
treat rheumatoid arthritis and Crohn’s disease.
This medication, discovered and manufactured
by Centocor, Inc., blocks the immune system’s overproduction of the protein TNF-alpha, which is an
underlying cause of these diseases. REMICADE
●
relieves painful symptoms associated with
rheumatoid arthritis and Crohn’s disease and
may help prevent progressive joint damage.
Johnson & Johnson companies produce several
prescription and nonprescription medicines
to relieve pain and reduce fevers. McNeil
Consumer & Specialty Pharmaceuticals manufactures TYLENOL (acetaminophen) and MOTRIN
(ibuprofen) analgesics, which have helped millions
of patients and are among the most highly
recognized drug brands in the world. More
hospitals use TYLENOL for the relief of minor
aches and pains than any other product.
9
Section
3
T O
E
M
P
L
O
Y
E
E
S
“We are responsible to our employees,
the men and women who work with us
throughout the world…”
FROM OUR CREDO
Safety
Johnson & Johnson strives for an injury-free workplace
in all of our global operations. We recently integrated
our employee health and wellness function with our
worldwide safety organization, allowing us to address
employee health and safety in a more comprehensive
manner and providing opportunities to extend the
geographic scope of our health services support.
We have developed a new vision statement to better
reflect the Company’s responsibility to employees.
Johnson & Johnson Health & Safety Vision
W
e are committed to making Johnson & Johnson
the world leader in health and safety by
achieving healthy lifestyles and injury-free workplaces.
We affirm that:
● We hold health and safety among our highest values.
● Health and safety are everyone’s responsibility.
● All accidents and injuries are preventable.
● All employees understand the value of active,
healthy lifestyles.
● Health and safety metrics are key indicators of
organizational excellence.
● Attaining healthy and safe lifestyles with our
employees and their families creates a competitive
advantage.
We must consider health and safety in every decision
we make and in every activity we perform. We care
about the health and safety of our fellow employees,
their families, their communities, our customers,
10
contractors and visitors.
Worldwide Computer
Ergonomics Strategy
“
approach to our employees. We are going
beyond work-related injuries and illness.
T
he largest percentage of
Johnson & Johnson’s
recorded injuries is ergonomics-related: repetitive
strains and overexertions. Before improvements
can be made, work environments and tasks must
undergo thorough risk assessments.
In 2002, Johnson & Johnson initiated a Global
Ergonomics Strategy for identifying ergonomics risk in
manufacturing settings and developing mitigation plans
to reduce it to the lowest possible level. As a result
of leadership by operations management, aggressive
plans are in place to mitigate ergonomics high-risk
tasks from manufacturing areas by year-end 2008.
We have now expanded this risk reduction effort
to administrative areas, with particular emphasis
on ergonomics risk associated with computer use.
A team of ergonomics experts and Johnson & Johnson
employees has developed a standardized assessment
tool and a strategy to address computer ergonomics
risks in all areas of Johnson & Johnson (administrative,
sales, laboratory, manufacturing and warehouses).
The Computer Workstation Ergonomics Job
Analyzer tool was created and translated into 18
languages. The tool, in conjunction with the global
strategy, will identify employees working on high-risk
computer tasks and assist Johnson & Johnson companies in mitigating risks to its employees. The strategy
requires that all Johnson & Johnson employees answer
a seven-question survey to immediately identify those
with potential computer ergonomics risk. Those
determined to be at elevated risk receive additional
evaluation and recommendations for ergonomics
improvements. An intranet site was created allowing
all Johnson & Johnson employees to answer the survey
in their local language and providing facility safety
contacts with a method for managing computer
ergonomics programs at their locations. The intranet
site also enables the facility contacts to document
assessments and mitigation efforts.
The website was deployed globally in September
2004. By year-end, 18,000 employees had completed the
survey. Our goal is to have all employees complete the
survey by September 2005 and to mitigate all identified
computer ergonomics risk by mid-2006. The Computer
Ergonomics Leadership Team, under the direction
of JoAnn Heffernan Heisen, Chief Information Officer,
Executive Committee member and Global Champion for
Our vision now addresses a holistic
The focus now is on total
health and safety, whether
”
on or off the job.
— Ather Williams, Jr., Vice President
Worldwide Health & Safety
the Computer Ergonomics Strategy, will drive the
completion of the survey so as to prevent future injuries
and help achieve our vision of having the healthiest
employees in the safest workplaces.
Safe Science
T
he Safe Science
initiative, developed in 2003, continued to
spread its mission throughout Johnson & Johnson’s
pharmaceutical R&D sites to “provide an environment
that is uninterrupted by injury, incident or work-related
illness.” Safe Science has been officially launched in
pharmaceutical R&D facilities around the globe, often
with major kickoff events.
Through its emphasis on safe laboratory conditions,
one of the most valuable outputs of Safe Science is the
implementation of a comprehensive EHS inspection
process. Pharmaceutical R&D sites are situated all over
the globe, and in the past, each had its own inspection
process. As part of Safe Science, we have deployed a
single, uniform lab inspection checklist process. If a
deficiency is found at one site, it will be corrected and
then communicated to other companies and sites,
11
Section
3
RESPONSIBILITY TO
E M P L O Y E E S
which now have the same tools available to prevent
recurrence. In a corporation as decentralized as
Johnson & Johnson, this is a significant achievement.
The principles of Safe Science have expanded to
facility design, including standardized designs,
guidelines and procedures for building R&D facilities.
Safe Decisions for Life
B
y the end of 2004,
98 percent of
Johnson & Johnson sites
had participated in the Safe Decisions for Life
campaign. This awareness-building initiative focused
on hand safety and encouraged Johnson & Johnson
employees to apply safety practices at work and at
home. Universally, people are at risk for hand injuries,
including serious hand injuries such as amputations,
fractures and lacerations.
Around the corporation and the globe, responses
to the Safe Decisions for Life campaign were very
favorable. Results show that the campaign yielded more
than just increased awareness. In 2003, hand-related
incidents accounted for 18 percent of our total lost
workday and serious injury cases (17 out of 96); this
proportion decreased to only 14 percent in 2004
(12 incidents). A key reason for the success was senior
management action. Sponsored by Michael J. Dormer,
Worldwide Chairman, Medical Devices and Executive
Committee member, the campaign launch involved
active participation by senior managers. Our companies
continued to deliver hand safety messages throughout
the year, using materials provided in the campaign
tool kit. We distributed a video in the third quarter of
the year to thank each site for participating, and to
introduce the next Safe Decisions for Life campaign:
Fall Prevention.
Slips, trips and falls accounted for 17 of 42 total
serious injury cases at Johnson & Johnson companies
in 2004 (40 percent). All of these injuries were fractures,
with half occurring in manufacturing, 40 percent in
our fleet population (sales and service representatives),
5 percent in administration and 5 percent in labs. We
believe this area presents our greatest opportunity for
improvement in 2005, because regardless of one’s job
in any facility, in any location, all employees are exposed
to slip, trip and fall hazards. As we expand our focus
to the whole person, home safety is also an important
target given the fact that 85 percent of all falls take place
12
at home. The risk of
falling, as we age,
becomes a very significant threat to our health
and well-being.
The process for
launching the Safe
Decisions for Life fall
prevention campaign will
be modeled after that
used for hand safety. Senior managers will be involved
at each launch event, and materials (posters, videos,
presentations, self-assessment) will be available
to increase behavioral awareness in seven areas:
Watch Your Step! (Surfaces)
● Height Can Hurt! (Heights)
● Health Helps! (Personal condition)
● Don’t Do It! (Inappropriate behaviors)
● Wear the Right Shoes! (Importance of
appropriate footwear)
● Hold On! (Using support when necessary)
● Fix it! (Reporting and remediating hazards)
●
We will continue using the Safe Decisions for
Life campaign to stress an individual’s responsibility
in making safe decisions at work and at home.
SAFE Fleet
J
ohnson & Johnson’s
fleet safety program,
SAFE Fleet, is aimed at
employees who drive
as a regular part of their
job duties. It has been
an integral part of the
Johnson & Johnson Family of Companies for
10 years. Its longevity is significant given the typical
short tenure of corporate fleet safety programs. What
is especially meaningful about SAFE Fleet is that it
continues to reduce vehicle-related accidents — despite
the growth in numbers of company vehicles worldwide.
At the inception of SAFE Fleet, our accident
per million mile (APMM) rate was not high in the
context of other companies in our industry. But as
with other Johnson & Johnson performance indicators,
we sought continuous improvement. Over the past
10 years, Johnson & Johnson’s SAFE Fleet has trained
40,000 people around the globe in behind-the-wheel
We have achieved a 40 percent reduction in APMM
since 1994, to a 2004 level of 5.19. Our goal is to drive
the APMM rate to 3.0 by 2009.
Worldwide SAFE Fleet Results
1995-2004
Accidents per million miles driven
8.76 8.45 8.77
7.70
7.18
Helmets for Kids
6.85
5.98 5.74
5.52
5.19
GOAL
3.00
95 96 97 98 99 00 01 02 03 04 09
Size of Worldwide Fleet
1995-2004
J
ohnson & Johnson’s Asia Pacific region began a
community safety effort just for children by
becoming the National Sponsor of the Helmets for Kids
program in Vietnam. Motorbikes are the main mode
of transportation in the region, and few drivers or
passengers wear helmets — including children who
are driven to school.
The program was launched in April as part of
the World Health Organization’s (WHO) World Health
Number of vehicles in thousands
32.0
34.2 34.5
28.6
25.2 25.1
21.7
14.3
16.5 16.6
“E
very student in my school has
a very lovely helmet, a gift from
Johnson & Johnson, our sponsor.
For me, my helmet is not just
a helmet, but also a close friend
95 96 97 98 99 00 01 02 03 04
on the road. One time, I was
on my way to pick up my mom, who was selling things
driving skills. Employees and their family members
have participated in on-line driving safety awareness
interactions. The SAFE Fleet program has prevented
an estimated 6,700 accidents, 800 injuries and 13,500
days away from work.
A key success factor of SAFE Fleet is ownership
at the local company level. Each Johnson & Johnson
company invests in its drivers’ safety by participating in
SAFE Fleet. This financial involvement by those with
bottom-line responsibility translates to greater integration
of fleet safety into the sales process. SAFE Fleet succeeds
because it is not a safety program about sales, but a sales
program about safety. As a result, in 2004:
in Hao Nam market. Approaching the crossroad, I
slowed down my bike and waved to signal for a right
turn when suddenly I saw a blue bike running toward
me from the other side of the road. It was rather dark
and the traffic was heavy. I was so scared then and my
little hands could not control the bike. I fell off onto the
pavement. The bike fell upon my legs while my arms
hit the pavement surface and my head hit a rubbish
bin. I thought my head must have been terribly hurt,
but it was just a bit shocked. My helmet ‘friend’ suffered
”
the most – he had a scar on his head from then on.
— 11-year-old girl, Cat Linh Primary School, Hanoi, Vietnam
Company presidents include fleet safety as part of their
regular communications.
● Fleet safety is on the agenda of national sales meetings.
● People at all levels in the field talk openly about safety
as a core value.
● Safety results are part of performance reviews.
● Companies budget hundreds of dollars per associate
to ensure they — and their driving family members —
are skilled, aware, alert drivers.
●
13
Section
3
RESPONSIBILITY TO
E M P L O Y E E S
Day 2004 with the global theme of “Road Safety
is No Accident.” SAFE Fleet Asia Pacific (part of
Johnson & Johnson’s global fleet safety initiative) and
Johnson & Johnson Vietnam, in collaboration with Asia
Injury Prevention Foundation, distributed protective
motorcycle helmets to 1,600 schoolchildren in Hanoi.
By year-end, Johnson & Johnson provided more than
6,000 helmets to schools in four cities.
Stefan Phang, SAFE Fleet Asia Pacific Regional
Manager, who spearheaded the project, has received
thank you notes from grateful parents who could not
otherwise have afforded to buy a safety-marked
helmet for their child. He knows that these helmets have
saved at least five children from serious head injuries
due to motorbike accidents. Johnson & Johnson plans
to extend the program across a larger Asia Pacific
region, and a larger audience, in 2005.
Recognizing Safety Excellence
A
wards of Excellence is Johnson & Johnson’s internal
awards program recognizing safety achievement.
As part of our worldwide efforts to continually drive
down injury and illness rates, we placed new emphasis
on the awards program this year, providing recognition
to those facilities that have done well and providing
an added incentive for facilities to improve. Companies
assess themselves against specific safety criteria (e.g.,
implementation of corrective actions; deployment of
behavior-based safety programs; and reaching targets
on ergonomics, industrial hygiene, machine safety and
fleet safety dashboards). For 2004, 29 companies
obtained Merit level recognition (bronze medal) and
6 others obtained Achievement level (silver medal).
All still aspire to the Excellence level (gold medal),
which indicates 100 percent compliance and meeting
targets on all safety dashboards.
14
ACHIEVEMENT LEVEL (Silver)
Ethicon, Inc.
Ethicon Endo-Surgery, Inc.
Janssen-Farmacêutica Ltda.
Johnson & Johnson
Professional Products
Manufacturing Company Ltda.
LifeScan, Inc.
OMJ Pharmaceuticals, Inc.
San Lorenzo, Puerto Rico
Juárez, Mexico
São José dos Campos, Brazil
Cabo Rojo, Puerto Rico
San Germán, Puerto Rico
MERIT LEVEL (Bronze)
Cordis de Mexico, S.A. de C.V.
DePuy Ireland
DePuy Mitek
DePuy Orthopaedics
DePuy Orthopaedics
Juárez, Mexico
Cork, Ireland
Smithfield, Utah, US
New Bedford, Massachusetts, US
Raynham, Massachusetts, US
Ethicon S.A.
Ethicon, Inc.
Ethicon Ltd.
Ethicon, Inc.
Ethicon, Inc.
Ethicon Endo-Surgery, Inc.
Janssen Pharmaceutica N.V.
Janssen-Cilag (Pty.) Ltd.
Janssen-Ortho
Johnson & Johnson Consumer
Products Company
Johnson & Johnson Consumer
Products Company
Johnson & Johnson G.m.b.H.
Johnson & Johnson Inc.
Johnson & Johnson
Pharmaceutical
Research & Development
Johnson & Johnson
Professional
Johnson & Johnson
Wound Management
McNeil Consumer & Specialty
Pharmaceuticals
Micro Typing Systems,
an Ortho-Clinical
Diagnostics company
Noramco, Inc.
Noramco, Inc.
Ortho Biologics
Ortho-Clinical Diagnostics
Ortho-Clinical Diagnostics, Inc.
Vistakon
Auneau, France
Cornelia, Georgia, US
Kirkton Campus, Scotland
San Angelo, Texas, US
Somerville, New Jersey, US
Albuquerque, New Mexico, US
Beerse, Belgium
Midrand, South Africa
Gurabo, Puerto Rico
Skillman, New Jersey, US
Haina, Dominican Republic
Hallein, Austria
Montreal, Quebec, Canada
Beerse, Belgium
Mumbai, India
Gargrave, UK
Las Piedras, Puerto Rico
Pompano Beach, Florida, US
Athens, Georgia, US
Wilmington, Delaware, US
Manatí, Puerto Rico
Cardiff, Wales
Raritan, New Jersey, US
Jacksonville, Florida, US
Safety Worldwide Results
AWARDS &
MILESTONES
●
●
●
Tasmanian Alkaloids Pty. Ltd. in Westbury,
Australia, achieved dual certification under the
Occupational Health and Safety Assessment
Series 18001 and Australian Standard 4801,
with zero nonconformances identified during
the facility audit. The company also received
two awards from the Tasmanian state government in the categories of Best Training
Program and Best Solution to a Workplace
Manual Handling Hazard.
●
●
0.12
Severity Rate
2000-2004
Lost work days per
100 employees
2.75
2.54
2.65
2.12
0.09
0.08
1.52
0.06
0.05
Ortho-Clinical Diagnostics, Inc. in Raritan,
New Jersey, US, achieved Star status under
the US Occupational Safety and Health
Administration Voluntary Protection Program.
The Puerto Rico Manufacturers Association
issued Distinguished Safety Performance awards
in 2004 to the following Johnson & Johnson
facilities in Puerto Rico:
● OMJ Pharmaceuticals, Inc., San Germán
● Cordis, San Germán
● LifeScan, Inc., Cabo Rojo (7th consecutive year)
● McNeil Consumer & Specialty
Pharmaceuticals, Las Piedras
● Johnson & Johnson Business Services, Caguas
These awards recognize facilities with a
recordable injury and illness frequency rate
that is at least 90 percent below the average
national frequency rate for a specific type of
industrial operation.
●
Lost Workday Case Rate
2000-2004
Lost workday cases per
100 employees
Johnson & Johnson Ltd., Mumbai, India, received
the “Yogyata Praman Patra” (Meritorious
Achievement Award) in recognition of the
company’s safety performance and management. The company also received first place
in the Industrial Safety Performance Award
Competition under the pharmaceutical
group category.
Johnson & Johnson Asean Ltd. received the
2004 Thailand Best Industry Award in the
safety category.
Several facilities achieved milestones
with no lost work days:
● 1 million hours – Vistakon’s Optical Tooling
group, Jacksonville, Florida, US
● 10 years – Research and Development
Center, São José dos Campos, Brazil
● 23 years – Johnson & Johnson Medical
Suture Plant, Dharavi, India
00
01
02
03
04
00
01
02
03
04
Achievement:
58% reduction 2000-04
Achievement:
Serious Injury/Illness Rate
2000-2004
Serious injury/illness cases
per 100 employees
Fleet Rate
2000-2004
Accidents per
million miles driven
0.06
6.85
5.98
5.74
0.04
0.04 0.04
5.52
5.19
0.03
00
01
02
03
04
Achievement:
00
01
02
03
04
Achievement:
Serious injury/illness cases
include fatalities, amputations,
fractures and hospitalizations.
Fires
2000-2004
Number of fires
51
53
40
00
01
02
31
32
03
04
Achievement:
15
Section
3
RESPONSIBILITY TO
E M P L O Y E E S
Health
“I
make it a priority to include
some form of exercise in my
schedule everyday. I encourage
Johnson & Johnson’s first priority is to protect and
promote the health, safety and well-being of its
employees and their families both on and off the job.
Toward this end, there is a relentless effort to provide
cutting-edge resources that inform, guide and motivate
individuals to live their best lives, understanding that
it is impossible to separate the health of individuals
from the health of the corporation.
”
each of you to do the same.
— William C. Weldon, Chairman and
Chief Executive Officer
Healthy People 2005
H
ealthy People 2005 is an ambitious initiative we
are implementing in the US, focusing on four
critical areas of health: inactivity, smoking, cholesterol
and blood pressure. Prior to the program’s launch in
2003, we established baseline scores using past results
from the Health Risk Assessment that is offered every
other year to employees. Healthy People 2005 targets
were set to represent good health outcomes. Results
from current Health Risk Assessments are aggregated
to indicate what sort of progress we are making.
In 2004, we have exceeded our set targets in
three of the four critical areas of health (smoking,
high blood pressure and high cholesterol). Over the
past eight years, the number of employees that describe
themselves as smokers has declined by 50 percent,
reports of high blood pressure have declined by
21 percent and the number of individuals with high
cholesterol has declined by 47 percent.
Our fourth critical area of health, inactivity, has
proven to be our biggest challenge. To demonstrate
management support for improving performance in
this area, our Chairman and Chief Executive Officer
William C. Weldon led “Walk With Weldon” and
invited all employees to make a personal commitment
to become more active. Throughout the year,
Johnson & Johnson distributed 22,000 free pedometers
to employees to encourage participation in a walking
program aimed at taking “10,000 Steps a Day.”
Health & Safety professionals coordinated fitness
events around the world. Building activity into
everyday activities is a key focus.
WALK
WITH
WELDON
In September 2004, presidents of several
Johnson & Johnson operating companies
participated in group walks to raise awareness
of the importance of exercise. Our CEO
took the lead at Johnson & Johnson World
Headquarters in New Brunswick, New Jersey, US.
Michael Jackson, ALZA President, leads a
company walk to promote more active lifestyles.
Each participant received a free pedometer
from the company.
16
Healthy People 2005 Targets and Progress
INDICATOR
BASELINE
TARGET
2004
RESULTS
Smoking
12%
9%
6%
High Blood Pressure
14%
10%
9%
High Cholesterol
19%
15%
9%
Inactivity
39%
20%
38%
This table summarizes our progress against our Healthy People
2005 goals. Current percentages are aggregated from voluntary,
confidential Health Risk Assessments completed by 44,000 US
employees from September 2001 through 2004.
Healthy Eating Initiative
A
chieving optimal health also requires attention to
diet and healthy food choices. In support of this,
our goal is to have healthy cafeterias, vending machines
and catering for meetings. A special task force of
Johnson & Johnson health professionals is working
with food vendors at our US companies to ensure we
are offering sound options while employees are at
work or company-sponsored events. These efforts are
supported by fitness professionals, telephonic lifestyle
counselors, HealthMedia® (an on-line nutrition
program), Weight Watchers® at Work, and Weight 4 Me
in many locations. We are expanding the Healthy
Eating initiative into our global operations in 2005.
Global Health
I
n 2004, we began to expand the geographic scope
of our corporate health and wellness function
toward being a truly worldwide program. The following
key objectives guide the activities of our newly formed
Global Health Team:
Provide injury and illness preventive strategies for
employees worldwide
● Deliver consistent medical services worldwide
● Uniformly deploy and apply global occupational
health standards
● Develop worldwide programs and services
addressing employee well-being
● Regularly measure worldwide occupational
health service performance
●
SPORTS DAY
To encourage physical fitness and provide an
opportunity to socialize within the community,
Health & Safety employees at Xian-Janssen in
Xian, China, held a series of sports games and
invited the Trade Union to participate. More
than a hundred participants enjoyed basketball,
table tennis, badminton and track events.
“I
came back from Short Term Disability and
had post-cancer complications. My doctor
recommended that I get a work-out regimen,
so I met with my Johnson & Johnson fitness
professional. She has been unbelievable! She
designed a plan around my lifestyle, monitors
me regularly and helped me change my diet.
The results have been staggering. I have lost
45 pounds, my body fat percentage dropped
by 14 points, and I have lost inches to my
chest and waist. All of this is secondary to
the change in my life and personality. This is
a testament to the Johnson & Johnson Credo.
”
Thank you.
— A Johnson & Johnson employee
17
Section
3
RESPONSIBILITY TO
E M P L O Y E E S
Global Health Conferences
A
s the globe becomes a smaller place, it is critical to
create and participate in opportunities to bring
together thought leaders in the health services field.
Johnson & Johnson provides opportunities for health
professionals to share perspectives that inform our
ability to care for the physical, social and emotional
well-being of our employees, their families and the
communities in which we work. External benchmarking, professional alliances and internal conferences
facilitate our capacity to identify and implement
leading-edge solutions.
First Global Medical Team Meeting – New Jersey, US
Fifteen health, safety, wellness, disability and mental
health professionals met for three days to discuss the
Johnson & Johnson global strategy for implementing
consistent medical, wellness and mental health
services throughout all of our operating companies.
First Europe/Middle East/African (EMEA)
Occupational Health Conference – Brussels, Belgium
Fifty medical, mental health, safety and human
resource specialists from twelve countries gathered
for the first EMEA Occupational Health Conference.
Current health issues, strategic plans, and best
practices in absence management, occupational
medicine, wellness and fitness and employee
assistance were shared over the four-day meeting.
Participants at EMEA conference.
18
Latin American Health Meeting attendees in Brazil.
Second Regional Latin American Health Meeting –
Thirty health, safety, mental health and human
resources professionals from Argentina, Brazil,
Colombia, Spain, Trinidad, the US and Venezuela
met for three days of dynamic exchange of information
related to injury and illness prevention, ergonomics
strategies, musculoskeletal disorders, wellness promotion and mental health. Strategies for improving the
health of the “whole person and family” were discussed.
Cancer Prevention and Screening
Smoke-Free Workplaces
Tobacco is the second leading cause of death in the
world. It is currently responsible for about one in ten
adult deaths worldwide (5 million deaths each year).
We have a Credo responsibility to our employees
and to the countries where we conduct our business
to make every effort to provide an environment
conducive to healthy living. As a leader in health care,
we must set the gold standard for cancer prevention
efforts worldwide. Recognizing this, Johnson & Johnson
is expanding our current smoke-free workplace
policy. The policy will be rolled out worldwide during
2005, taking into consideration local, regional and
country rules and regulations pertaining to smoking
in the workplace.
Worldwide Health & Safety will market and build
awareness for current smoking cessation intervention
opportunities within the Corporation and in surrounding communities. Smoking cessation programs, awareness, behavior modification tools and resources will be
available to employees interested in quitting smoking.
Cancer Screening at Ortho-Clinical Diagnostics, Inc.
Early detection can be crucial to the successful treatment of cancer. However, with busy work and family
schedules, many people are not proactive in taking
care of themselves because time at the doctor’s office
is time away from other responsibilities. Ortho-Clinical
Diagnostics, Inc. (OCD) in Raritan, New Jersey, US,
has partnered with local health care providers to make
it easier for OCD employees to take advantage of
screening services that are available in the community.
●
One out of every nine women will develop breast
cancer in her lifetime. To address breast cancer
issues, nurses from Somerset Medical Center in
Somerville, New Jersey, came to the company’s site
and educated employees on the importance of early
cancer screening. Participants were urged to visit
their individual doctors’ offices for a test prescription,
then on the appointed day for the mammograms,
the Medical Center provided a shuttle to the hospital
and back to OCD. The women were very appreciative
that OCD management gave them the time away
from work to have this very important screening.
●
With the assistance of a local dermatologist, OCD
also sponsored screenings for skin cancer, the world’s
most prevalent malignancy. The risk of developing
melanoma, the most dangerous form of skin cancer,
has more than doubled in the past decade. The
American Cancer Society recommends skin examination as part of a cancer related checkup every
three years for people between 20 and 40 years old,
and on an annual basis for anyone over 40. OCD
provides free screening at its facility with the
cooperation of management, Human Resources
and Occupational Health.
Living
HIV/AIDS
T
Our Credo
with the International Partnership for Microbicides,
oday, more than 40 million people throughout
the Elizabeth Glaser Pediatric AIDS Foundation and
the world are infected with HIV/AIDS. This global
the National AIDS Fund, to name a few, offers
pandemic has had a dramatic and devastating impact
Johnson & Johnson the opportunity to participate
on all types of people: rich and poor, young and
in targeted research, fund programs for women and
old, men and women. These individuals include our
children, and provide advocacy, counseling and
friends, our neighbors, our colleagues and family
testing for HIV/AIDS patients worldwide. Our goal is
members. HIV/AIDS has both social and economic
to improve the lives of all who are already impacted
implications worldwide.
by the disease and to help prevent its spread.
As a global health care company with a
We are also actively involved in scientific research
values-based approach to business and corporate
to help people with HIV/AIDS live longer, healthier
social responsibility, as outlined in Our Credo, we
lives. For more information, see the Research and
have a genuine interest in those who suffer, whether
Development section of this report (page 39) and our
from HIV/AIDS or other diseases. Our interest
website at www.jnj.com/community/aids/science.
stems from a historic commitment this corporation
has made to health and safety and the nurturing of
LOCAL HIV EFFORTS IN SOUTH AFRICA
future generations.
Our medical professionals at Johnson & Johnson (Pty.)
Earlier in 2004, Johnson & Johnson formed
Ltd. in East London, South Africa, identified a critical
a workplace task team to look at current medical
need to address HIV within their community. The team
coverage, policies and practices for our employees
set out to determine the prevalence of HIV infection;
and their eligible dependents around the world.
model the prevalence data and forecast probable HIV
Our objective is to ensure that all of our employees
infection levels for the next 10 years; provide voluntary
have access to HIV/AIDS treatment.
counseling and testing; and make recommendations
In the area of corporate philanthropy, we have
for appropriate control measures, monitoring and
partnered with several organizations to better
evaluation. They have accomplished all of these efforts
understand how to strengthen our commitment to
in addition to providing significant family and peer
people who are living with HIV/AIDS. Our association
counseling support groups within the region.
19
Section
3
RESPONSIBILITY TO
E M P L O Y E E S
Employee Assistance Program — The Whole Person
C
aring for the wellness of the whole person, on
and off the job, inevitably requires us to deal with
personal issues that we as individuals must face from
time to time. Relationship concerns, parenting questions, work/family responsibilities, workplace conflict,
mental health, substance abuse and stress management
are a few of the real-life challenges that our Employee
Assistance Program (EAP) mental health counselors
address with employees, household members and
management teams. Currently, 50 percent of
Johnson & Johnson operating companies around the
world provide EAP and efforts are underway to
continue the expansion of the program. Services are
free and confidential, and include, but are not limited to:
● assessing the concerns of the employee, household
member or management team
● short-term counseling provided face to face
or telephonically 24 hours a day, 7 days a week
● referral to medical, mental health or other
support groups within the community when
additional treatment is required
● management consultations during times of change
● critical incident debriefings following man-made
or natural traumas
● employee orientation and education
● supervisor training that ensures management
understands how to identify potentially troubled
employees and refer them to one of our EAP
professionals
Workplace Response
P
revention and screening for mental health issues
is key to early intervention that yields significantly
improved opportunities for positive outcomes.
Workplace Response® interactive screening for mental
health offers anonymous, confidential computer-based
screenings for depression, anxiety, eating disorders,
post-traumatic stress, bipolar disorder, and substance
abuse and has been available to our US employees
and their families for two years. Results and recommendations for follow-up are provided immediately
upon completing the screening. To date, more than
8,000 Johnson & Johnson employees and family
“T
he loss that we have suffered as a result
of a death in our family has been enormous.
My Employee Assistance counselor was
there from the beginning to listen, guide
and connect us with other resources that
could understand our grief. I cannot believe
Johnson & Johnson provides this level
of personal support for employees and
families. I will always be grateful.
”
Team members instrumental in launching the Taiwan EAP
(left to right): Stephanie Yang, Human Resources Director,
Johnson & Johnson Taiwan; Alex Chang, Managing Director,
Janssen-Cilag Taiwan; Linda Wang, Human Resources Manager,
Johnson & Johnson Medical Taiwan; Chris Lin, Managing
Director, Johnson & Johnson Vision Care (Taiwan); and
Alice Liang, Human Resources Director, Janssen-Cilag Taiwan.
TAIWAN EAP L AUNCH
The Johnson & Johnson companies in Taiwan launched
an Employee Assistance Program in response to
a need identified by human resource managers at
Janssen-Cilag Taiwan, Johnson & Johnson Taiwan, Ltd.
and Johnson & Johnson Medical Taiwan. Since the
Taiwan EAP launch in October 2004, individual
consultations, employee orientations and educational
workshops have been offered across all companies
to enthusiastic audiences.
20
members have taken advantage of these screenings.
In 2004, Johnson & Johnson funded the translation
of this English/Spanish-based program into Portuguese
so that it could be utilized by a broader population,
and in April 2005, we are launching the program
across our complex in São José dos Campos, Brazil,
as well as in Puerto Rico.
Employment Policies
and Practices
Our Credo responsibility calls for fair treatment of
employees and respect for every individual, while
being mindful of ways to help our employees fulfill
their family responsibilities. All of these employment
policies carry the full endorsement and support of
senior management throughout our worldwide
organization.
Work, Family and Personal Life
A
Workplace Response® poster advertising
web-based screening services.
t our US companies, Johnson & Johnson provides
a wide variety of Work, Family and Personal Life
programs and services to support employees at every
stage of life – from having a baby or planning an
adoption, to parenting and child care, education, caring
for an ill or older relative, preparing for retirement
and more. In recognition of our employee programs,
Johnson & Johnson was again named one of the Top 10
Best Companies for Working Mothers by Working
Mother magazine for 2004. Johnson & Johnson is one
of only two companies that have been on the list of Top
100 Best Companies for nineteen consecutive years.
“Stellar on-site child-care benefits, manager
training and accountability on work/life issues,
and family-friendly resources help this company
secure a spot among the best of the best.”
– Working Mother, October 2004
SERVING
AS A
COMMUNITY HEALTH RESOURCE
First aid training was provided to Xian-Janssen
employees in Xian, China, who volunteered to
provide first response assistance within our
operating company and their own communities.
Shaanxi Province Red Cross professionals
conducted this training and 100 percent of our
volunteers successfully completed certification.
Support Services Regarding Elder Care
Elder care resources are one example of the support
services available to our US employees through
LifeWorks®. Included are an Elder Assessment and
Care Planning Program to assess a relative’s current
and future care needs, and assistance in comparing
and selecting the most appropriate living situation for
a family member. In addition, LifeWorks provides an
online assessment and consultation about daily needs,
home safety, financial and legal issues, nutrition,
health and more.
At our World Headquarters in New Brunswick,
New Jersey, US, employees have the opportunity to
participate in an Elder Caregivers’ Support Group
whose purpose is to share information on and
experiences with elder caregiving. In 2004, we
conducted an Elder Care Fair to make it easier for
21
Section
“
I liked the personal touch. The
3
employees to speak with representatives from community
resources and learn more about their services.
Care Manager went out of her way
to make my mother feel comfortable
during the assessment so that my
Diversity
”
D
iversity is part of the culture of Johnson & Johnson.
We recognize that differences in age, race, gender,
nationality, sexual orientation, physical ability, thinking
style and background bring a richness to the working
environment. As we achieve excellence in managing
diversity, we strive to create a workplace where we all
can achieve and contribute the best that we have to
give. Our vision is to be the “Employer of Choice in a
Dynamic Global Environment.”
Johnson & Johnson provides diversity awareness
education in the form of Diversity University, a comprehensive online resource for employees that serves as
a gateway to a multitude of diversity related resources.
The offerings of the University are global in scope
and relevant for all Johnson & Johnson employees
worldwide. Within Diversity University, users can find
cultural awareness training tools with country-specific
content. The University also links employees to e-learning courses and information offered throughout the
Johnson & Johnson Family of Companies on related
mother would respond to questions.
RESPONSIBILITY TO
E M P L O Y E E S
Living
Our Credo
SUPPORTING WORK/LIFE RESEARCH AND RESOURCES
Johnson & Johnson is proud to be one of the
which examines the changes within the American
founding members of the American Business
workforce since 1977 in relation to job satisfaction,
Collaboration (ABC), made up of nine major
work/life support, gender roles and attitudes.
corporations with a common objective of helping
Conducted by the Families and Work Institute, the
their employees manage their work and personal
study examined representative samples of workers
responsibilities. Since its inception in 1992,
from across the United States in an effort to
a major focus of the ABC has been to create and
develop rigorous data around generation and
fund innovative programs for child care and
gender differences, instead of relying on assump-
elder care services to alleviate gaps between the
tions or anecdotal information as most corpora-
needs of working families and available services
tions and social observers have done. Among the
and programs in identified communities across
most striking findings was the fact that younger
the country. ABC companies are focusing our
workers tend to be more family-focused or dual-
collaborative efforts on understanding the
focused (on both career and family equally) com-
needs of the constantly evolving workforce and
pared to older workers, and that this shift applies
implementing creative solutions to improve
to both men and women in the workforce. ABC
workforce effectiveness.
support of research like this is helping companies
In 2004, the ABC released the results of its
Generation and Gender in the Workplace study,
22
better understand their employees and manage
work/life effectiveness.
Of the 13 individuals on the
Johnson & Johnson Board of Directors,
three are women and
two are African American.
subjects such as mentoring, international assignments,
and leadership and rotational development programs.
To gauge the effectiveness of diversity initiatives,
operating companies use different metrics including
the composition of the workforce, the level of diversity
education and training, and the impact of diversity
on marketing and sales. Results to date indicate that
becoming the employer of choice is an attainable goal.
Affinity Groups
Affinity groups are voluntary organizations, initiated
and driven by employees, that usually focus on a
shared interest or characteristic, such as race, ethnicity,
gender or sexual orientation. Each group’s main intent
is to create an open forum for exchanging ideas, and
to strengthen ties to and within diverse communities.
Every affinity organization at Johnson & Johnson has
a formal structure, including an Executive Management
Advisor, and is open to all employees. Affinity group
activities include professional development, workplace
enhancement and community involvement. Current
employee affinity groups within Johnson & Johnson
include the African American Leadership Council,
Community of Asian Association at Johnson & Johnson,
Gay and Lesbian Organization for Business and
Leadership, Help Our Neighbors with Our Resources,
Hispanic Organization for Leadership and Achievement,
South Asian Professional Network and Association
and the Women’s Leadership Initiative.
Dispute Resolution – Finding Common Ground
I
n any organization, occasionally differences arise
on matters relating to an individual’s employment.
The Johnson & Johnson Family of Companies offers
its US employees the use of Common Ground, an
innovative program for resolving such concerns fairly,
quickly and as amicably as possible. The program
provides a collaborative framework with three comprehensive steps for resolving issues or disagreements –
Open Door, Facilitation and Mediation.
In Open Door, the operating company Human
Resources representative reviews the issues and works
with both parties to resolve them fairly. If needed,
Facilitation is the next step. The facilitator, who is a
neutral party in Johnson & Johnson’s Office of Equal
Opportunity and Workplace Solutions, works to open up
lines of communication and identify creative solutions.
If Facilitation has not resolved the matter, employees
may pursue Mediation, an informal dispute resolution
process conducted by a mediator who is a neutral third
party. The mediator helps to move both parties toward
a mutual and voluntary resolution of the issues.
Employee participation in Common Ground has
quadrupled since the program’s inception in 1999. The
majority of issues are resolved at the Open Door stage.
For issues that progress beyond the Open Door phase,
the majority are resolved at Facilitation. Employees
who have utilized the program express satisfaction and
an appreciation for the individualized guidance and
support during difficult times. Both employees and
company personnel also appreciate the value that is
placed on a collaborative process in an atmosphere of
mutual respect.
Labor Policies
A
s a company with a strong commitment to Credo
values and a special interest in maternal and
child health, we are particularly concerned about the
issue of child labor. Our Policy on the Employment of
Young Persons prohibits employing anyone under
the age of 16. No person between the ages of 16 and
18 shall be employed unless such employment is
in compliance with the health, safety and morals
provisions of the International Labour Organization
Convention 138 Concerning Minimum Age. This policy
applies to our manufacturing facilities worldwide
as well as to external manufacturers of products for
Johnson & Johnson companies.
We recently developed a set of Global Labor and
Employment Guidelines and are disseminating these to
our businesses throughout the world. These guidelines
formalize the labor policies and practices that have
been in place for years at companies throughout
Johnson & Johnson. The guidelines are generally consistent with internationally accepted labor and employment standards, and address issues such as anti-discrimination, prohibition of forced labor, enforcement of
child labor restrictions, and support of each employees’
right to associate and to bargain collectively. It is
understood that we will first ensure that our policies
and actions are in full compliance with the laws and
regulations of the country in which we are operating.
23
Section
4
C O M M U N I T I
T O
E S
“We are responsible to the
communities in which we live and work
and to the world community as well…”
FROM OUR CREDO
Environment
Our Credo commits us to “maintain in good order the
property we are privileged to use, protecting the environment and natural resources.” This is a fundamental
aspect of the corporate culture at Johnson & Johnson.
As a large, multinational organization, our environmental footprint is complex and far-reaching. We have
standard procedures in place requiring that each of
our worldwide facilities characterize and understand
the environmental impacts of their operations, plan
for emergencies, and seek opportunities for continuous
improvement. On a corporate level, we establish goals
that drive us toward reducing our overall consumption
of resources, increasing the efficiency of our operations,
and minimizing the adverse effects of waste.
24
This section of the report summarizes our
performance with respect to those key indicators
we measure, and describes our progress toward
meeting our quantitative goals. Our Next Generation
Environmental Goals apply through 2005, and we
are working to develop Healthy Planet 2010 goals
and metrics that will continue to move us forward.
The process of goal setting (discussed earlier in this
report; see page 2) includes dialogue with multiple
stakeholders, both internal and external to
Johnson & Johnson, and requires us to identify
those issues and impacts that are most material to
our operations around the globe so we can target
them for meaningful improvements.
Management Performance
Next Generation Goals (NGGs) – Management Performance Indicators
METRIC
GOAL
2004 STATUS
Management Systems
All manufacturing, research and
development sites obtain and maintain
third-party ISO 14001 certification
As of year-end 2004, 107 out
of 111 facilities (96 percent)
were third-party certified
New Products, Processes
and Packaging
Review all new products, processes
and packaging for environmental
impact during development
99 percent of new products,
processes and packaging were
reviewed for environmental
impact in 2004
Regulatory Compliance
Zero noncompliance events and zero
accidental releases on an ongoing basis
15 Notices of Violation (NOVs)
5 penalties paid, totaling $30,800
23 noncompliance events identified from 275 agency inspections
186 self-reported permit
noncompliances (air/wastewater
permits)
Conservation and
Community Outreach
All manufacturing, research and
development sites develop and
implement site-specific conservation
and outreach plans
As of year-end 2004, 92 percent
of sites have conservation
and outreach plans and are
implementing them on schedule
High exposure facilities initiate and
maintain community forums
76 percent of high exposure
facilities conducted community
forums in 2004
Review of New Products and Processes
Design for the Environment (DfE) is our process for
identifying and minimizing the environmental impacts
of new and modified products and processes. The
computer-based DfE tool uses a quantitative scoring
system that rates processes based on environmental
factors, such as energy use, water use, hazardous
material requirements, process efficiency and yield,
and nonproduct output (NPO) generation. This scoring
mechanism allows designers to quickly compare
the overall environmental friendliness of a variety
of options.
Johnson & Johnson’s goal is to design products
that are more environmentally friendly by integrating
DfE into every aspect of developing a new product or
process. R&D organizations across the corporation are
responsible for implementing DfE, with environmental
professionals serving as coaches for the evaluation
process. From the time a new product is just a concept,
through development, manufacturing, sales, marketing
and ultimate disposal or recovery of the product, DfE
helps identify negative environmental impacts and
options for avoiding those impacts.
The DfE tool enables users to identify restricted or
banned substances and evaluate country-specific
regulations surrounding chemical use, packaging and
disposal. Designers can also assess the impacts of new
products or processes on energy use, raw material
consumption and waste generation. By making sound
decisions early in a product’s development, we can
improve performance while preventing the need for
costly retrofits to address environmental problems
that may be identified later. This provides significant
business advantages.
DESIGNING PRODUCTS
TO
MINIMIZE ENVIRONMENTAL IMPACTS
Ortho-Clinical Diagnostics, Inc. (OCD) in Raritan, New
Jersey, US, is working toward a complete phase-out of
the preservative thimerosal, which contains mercury.
OCD decreased its annual use of mercury by 80 percent
from 2000 to 2004 by applying DfE principles to product
development and periodic review of processes. By reducing mercury use and its presence in products, OCD is
avoiding the ultimate disposal of mercury, which tends to
bioaccumulate and may be harmful to human health and
the environment if not managed properly. All remaining
OCD products containing thimerosal are scheduled
for replacement with mercury-free products by 2008.
25
Section
4
RESPONSIBILITY TO
C O M M U N I T I E S
Compliance
During 2004, Johnson & Johnson facilities received
275 environmental regulatory inspections. While the
vast majority of these inspections – more than
96 percent – resulted in no findings of noncompliance,
there were 23 agency-identified noncompliance events.
Under our standard procedures, any
noncompliance event or accidental release at a
Johnson & Johnson operating company must be
reported to our Worldwide Environmental Affairs
office within 72 hours of occurrence. We also
track self-reported breaches of environmental permit
limits and requirements, regardless of the magnitude
or environmental impact. Nearly all of our 125
manufacturing and research facilities have prescribed
wastewater and air emission limits for numerous
parameters. Our broad approach to reporting
noncompliance events allows us to detect and address
problem areas and trends more proactively.
Our efforts to improve wastewater permit
compliance showed success in 2004, where we were
able to reduce wastewater permit breaches from
105 in 2003 to 63 in 2004. Further reductions are
anticipated this year as new treatment system
improvements come on line.
“S
takeholder engagement
is a vital part of our
sustainability program –
from representatives of
governments, nongovernmental organizations,
academia, socially responsible institutional
investors and industry, who give feedback
on our direction and progress, to suppliers
and third-party manufacturers who play an
”
integral role in improving our performance.
— Brian K. Boyd, Vice President
26
During 2004, we experienced an increase in
self-reported air permit noncompliance events. Two
Johnson & Johnson sites, our Ethicon, Inc. plant in San
Angelo, Texas, US, and our ALZA plant in Cashel, Ireland,
received new air emission permits in 2003/2004. Both
permits require continuous emissions monitoring of the
air pollution control equipment and related operating
parameters. In practice, we have had difficulty complying
with the specified permit parameters. Indeed, 117 of our
186 total self-reported permit noncompliance events in
2004 resulted from these two sites. During an assessment
of the San Angelo situation, we identified additional
unreported events for the latter part of 2003. Hence,
we have restated our 2003 compliance figures to reflect
these events. The overwhelming majority of these events
were slight breaches of oxidizer temperature limits and
resulted in no excess emissions to the environment.
Our sites reported 15 accidental releases last year.
The sum total of all 15 releases is an estimated 6.8 cubic
meters (1,800 gallons) of material, with more than half of
the releases amounting to 0.2 cubic meter (55 gallons) or
less. Each release resulted in an immediate and effective
response, with no significant environmental impacts.
Our 2004 noncompliance events summarized above
resulted in 15 Notices of Violation and 5 penalties paid
totaling $30,800. Three of the penalties were for clerical
issues and two were attributed to accidental releases.
While site-level corrective actions are being rigorously
implemented, we are renewing our global focus during
2005 to drive better compliance results.
Conservation and Community Outreach
Recognizing that the Credo responsibility toward communities is integrally linked to environmental protection, our
goals require all Johnson & Johnson facilities to engage
with their neighbors regarding conservation and community impacts. The following examples illustrate ways in
which our operating companies are meeting this goal.
Ethicon Ltd., Kirkton Campus, Livingston, Scotland –
The facility has embarked on a highly successful initiative
to create and enhance habitat, improve landscaping and
protect water resources at the site. This is being accomplished through the leadership of a Biodiversity Steering
Group with members from Facilities, Manufacturing
and Environmental Affairs at Ethicon Ltd. as well as
several external conservation partners (including West
Lothian Council, Btcv Scotland and Scottish Natural
Heritage, among others). Brown hares – an endangered
Operational Performance
NGGs – Operational Performance Indicators
ENERGY
WATER
RAW MATERIAL
PACKAGING
(NON-PACKAGING)
NONPRODUCT OUTPUT
(NPO)
GOAL
By year-end 2005,
100 percent
implementation of
enhanced energy
best practices and
4 percent absolute
reduction in CO2
emissions from
base year 1990
By year-end
2010, 7 percent
absolute
reduction in CO2
emissions from
base year 1990
2004 PERFORMANCE
▼
3.1 percent
decrease in
absolute CO2
emissions
1990-2004
By year-end 2005,
10 percent cumulative
avoidance*
By year-end 2005,
avoidance*
▼
12.1 percent
cumulative avoidance
2001-2004
▼
▼
6.9 percent
2001-2004
89 percent
implementation of
enhanced energy
best practices
By year-end 2005,
avoidance*
6.7 percent
2001-2004
By year-end 2005,
avoidance* in
nonhazardous NPO
and 5 percent cumulative
avoidance* in hazardous
and toxic NPO
▼
Nonhazardous:
12.5 percent cumulative
avoidance 2001-2004
Hazardous:
27 percent
Toxic: 21 percent
*Note: Cumulative avoidance goals present avoidance in generation or use resulting from
projects implemented in Year 1 (Y1), Year 2 (Y2), Year 3 (Y3), etc., calculated as follows:
Total Avoidance (Y1 + Y2 + Y3 +…)
X 100%
Total Usage or Generation (Y1 + Y2 + Y3 +…)
species in that area – and voles are now observed on
those portions of the site with restored natural habitat.
A strong educational component of the project involves
school children in planting and maintenance efforts, as
well as other environmental awareness activities such
as recycling and energy conservation. The Ethicon
team provides awards and recognition to school groups
for completing environmental tasks. Students at a
local agricultural college also surveyed employees and
community members regarding potential environmental
management objectives for the site, and the information
was used to develop the current biodiversity plans.
McNeil Consumer & Specialty Pharmaceuticals,
Fort Washington, Pennsylvania, US – This company has
pursued significant watershed protection efforts over
the past several years in partnership with local government and conservation organizations. McNeil is located
in an area that is rich with natural resources, biological
diversity and an involved citizenry. However, the area
is also undergoing rapid development, which has
resulted in stormwater problems and degradation of
some of the small streams in the Wissahickon watershed. To help alleviate these concerns, the facility has
identified and implemented projects to enhance stream
buffers, recreate meadows and develop wetlands-based
stormwater management systems. McNeil assists the
local watershed association, Whitemarsh Township
and the Pennsylvania Department of Transportation
on similar projects located off site.
Janssen Pharmaceutica Products, L.P., Titusville,
New Jersey, US – The Stony Brook-Millstone Watershed
Association has awarded its first-ever River Friendly
Certification to Janssen in recognition of the company’s
efforts to conserve water and pursue innovative
stormwater management practices. The facility has
significantly reduced its use of pesticides and fertilizers,
planted drought-resistant native vegetation, and
increased the level of internal water reuse. A solarpowered aeration system is used to minimize algae
growth and improve water quality in one of two on-site
stormwater ponds. For the past two years, Janssen has
held an environmental education event on Earth Day,
in cooperation with the New Jersey Department of
Environmental Protection and other partners, at which
children learn about various environmental topics and
about the company’s watershed protection programs.
27
Section
4
RESPONSIBILITY TO
Energy
The world scientific community agrees that human
behavior has adversely affected Earth’s climate through
the emission of greenhouse gases. Atmospheric
concentrations of carbon dioxide (CO2) have significantly increased in the past century and continue to rise.
The burning of fossil fuels is the largest man-made
source of greenhouse gases in our atmosphere. At
Johnson & Johnson, we are doing our part to address
climate change risks through a sustained energy
management program.
In 1999, we announced a goal to reduce CO2
emissions by 7 percent below 1990 levels by the year
2010, in line with the intent of the Kyoto Protocol.
Johnson & Johnson’s emissions have decreased by
3.1 percent from our 1990 baseline, at the same time
that Company revenue has increased 322 percent.
Much of this progress has been accomplished
through the adoption of our Climate Friendly Energy
Policy in 2003, which accelerated the deployment of
innovative technologies at our companies around the
world. Two examples are highlighted in the following
paragraphs. Taken together, the CO2 reduction benefits
from these two projects are equivalent to removing
more than 1,400 cars from the road.
Landfill gas methane combined heat and power project
at ALZA Corporation, Mountain View, California, US –
ALZA has implemented an innovative contract with
the city of Mountain View to purchase methane gas
from a municipal landfill. The gas will serve as fuel
for three generators, providing the ALZA Corporation
campus with 3 megawatts of power supply and
offsetting 7,000 metric tons of CO2.
Biodiesel fired boiler at Centocor, Leiden, the
Netherlands – Centocor replaced conventional fuel with
a fuel blend that incorporates biodiesel, a renewable
energy source generated from sustainably harvested
seeds of the rape plant. In 2004, the site used 160,000
liters of biodiesel, offsetting 388 metric tons of CO2.
Building on these successes, we have also introduced
an innovative CO2 capital funding process to ensure
funding for a variety of large projects that yield both
notable environmental benefits and cost savings. In its
first year, the new funding process has prompted the
initiation of 24 new projects, including three solar
photovoltaic and seven cogeneration facilities.
28
In a further commitment to minimizing our
climate change impact, Johnson & Johnson has
demonstrated leadership in purchasing green electricity
and renewable energy certificates. In 2004, an estimated
18 percent of our worldwide electricity supplies were
from environmentally friendly resources, including
solar, wind and biomass. We are one of the largest
corporate purchasers of windpower in the United
States. In addition, solar photovoltaic installations at
Johnson & Johnson facilities in California, New Jersey
and Pennsylvania are supplying carbon-free electricity
to our operations. At Centocor’s operations in Leiden,
the Netherlands, 100 percent of our electricity supply
is obtained from renewable energy sources.
We are addressing CO2 emissions from our
worldwide sales fleet as well and taking steps to reduce
such emissions. In early 2005, we added 200 Toyota
Prius hybrid electric vehicles, raising the fuel efficiency
of our overall fleet.
We actively partner with other companies and
organizations to share climate change strategies and
stay abreast of the latest trends and opportunities.
Highlights of these partnerships include:
● Founding member of the World Resources Institute
(WRI) Green Power Market Development Group and
participant in WRI’s Climate Northeast project
● Charter member of the World Wildlife Fund Climate
Savers program since 1999
Company representatives in front of wind turbine in eastern
Pennsylvania, US. Johnson & Johnson companies purchase the
output of one turbine from this windpower facility, about one
megawatt of renewable energy capacity.
Monitoring of recently constructed wastewater treatment system in Beerse, Belgium.
AWARDS &
RECOGNITION
Founding member of The Climate Group, a UK-based
organization of multinational corporations, NGOs
and governmental bodies taking the lead on reducing
greenhouse gas emissions
Member of US EPA’s Climate Leaders, a voluntary
initiative that encourages companies to inventory
their emissions, set reduction targets and report
publicly on their progress
The US Environmental Protection Agency (EPA) and the
US Department of Energy presented Johnson & Johnson
with the 2004 Leadership Award for Green Power
Purchasing. This awards program recognizes companies,
governments and organizations that contribute to the
development of renewable energy markets through
their purchasing decisions.
Water
Adequate water supply is a critical public health
resource and one that is experiencing increasing
pressure worldwide with rising populations and levels
of development. Conserving water is an important
part of our responsibility to the communities in which
we operate. Facility-specific goals for water conservation help keep our operating companies focused on
the need for continuous improvement in this area.
Johnson & Johnson Worldwide Environmental
Affairs provides tools and guidelines that our sites
can follow to identify and implement promising water
reduction methods. Facility teams also use quantitative
analysis and assessment tools to optimize their
water saving efforts.
Since the initiation of our Next Generation Goals in
2001, total water use by our worldwide manufacturing
operations has declined by about 16 percent. About
half of this reduction is due to the divestiture of several
facilities that were historically large water users; the
rest of the decrease has resulted from water conserva-
tion projects that facilities have implemented. With a
12.1 percent cumulative avoidance ratio from 2001
through 2004, and ongoing avoidance projects such as
the facility example highlighted below, we expect to
surpass the 2005 goal of 10 percent cumulative water
use avoidance.
Janssen Pharmaceutica N.V. in Beerse, Belgium,
has taken an innovative approach to sustainable water
use. Through an extension of its wastewater treatment
plant, the site implemented a wastewater and
rainwater recycling plant, resulting in yearly savings
of 150,000 cubic meters of drinking quality water,
equivalent to the annual use of a population of 3,300.
The recycling project is the result of a team effort
by the Energy and Utilities departments, Facility
Engineering and Environmental Affairs. This collaboration has led to the foundation of a water working
group to better understand water uses throughout
all processes in the facility and to identify more
opportunities for reducing water use.
●
●
29
O
ur Pharmaceutical Sourcing Group Americas
(PSGA) business group has developed an
innovative means of improving management of
raw materials at its facilities. By calculating a
Raw Material Efficiency Index (EI) metric, PSGA
has been able to accurately track the use of raw
materials throughout the manufacturing process
and drive significant reductions in the amount
of materials used to create a given quantity of
finished product. PSGA facilities are applying
this EI metric and educating employees to better
understand its uses as an operational tool.
Pharmaceuticals in the Environment
One area of potential impact to the world’s water
resources, which is of common concern across the
pharmaceutical industry, is the detection of trace
amounts of pharmaceuticals that have been detected
in rivers and streams. The small amounts of pharmaceuticals being measured – which are only now being
detected because of advances in analytical chemistry –
arise primarily from patient use. Typically, medicines
will be excreted from the human body in both
metabolized and unmetabolized forms and will then
make their way to various waterways through
municipal wastewater treatment systems.
Both monitoring and modeling data have shown
that the trace amounts of medicines found in
aquatic environments are orders of magnitude below
therapeutic values. Johnson & Johnson continues
to work with others in the health care industry to
study potential impacts from the normal use of
pharmaceutical products.
Raw Materials
We continually work to reduce consumption of raw
materials used in our manufacturing operations.
Progress is made by improving process efficiency and
material management. Decreasing material use in
turn helps minimize waste generation and improve
process efficiency. Just as energy efficiency reduces air
emissions, and water conservation leads to reduced
wastewater impacts, careful management of raw
materials can have significant benefits throughout a
product’s life cycle.
Johnson & Johnson tracks the amount of raw
30
Section
Converting Raw Materials to
Finished Products – Efficiently
4
RESPONSIBILITY TO
materials used at our manufacturing facilities worldwide (excluding water, which is tracked separately),
and we have established a goal of 5 percent cumulative
avoidance from 2001 through 2005. We have met and
exceeded our goal in this area, achieving a 6.9 percent
cumulative avoidance over the period 2001 through
2004. This is in part due to McNeil Nutritionals, LLC
divestiture of a sucralose manufacturing facility in
2004, which resulted in significant reductions in both
the amount of raw materials purchased (391 million
kilograms in 2004) and raw material use avoided
(31 million kilograms in 2004).
Packaging
Johnson & Johnson tracks the use of packaging material
separately from other raw materials and has set an
aggressive avoidance target of 10 percent in this area.
Across the health care industry, the challenge is to
minimize packaging use while fully maintaining compliance with quality standards and not compromising
product integrity. During our product development
process, we identify opportunities to minimize the
amount of packaging used and maximize recyclability.
We have achieved a 6.7 percent cumulative
avoidance ratio for 2001-2004, and avoidance has
been increasing steadily. While our total packaging
use increased to about 194 million kilograms last
year, new avoidance projects are helping us minimize
the growth of packaging use even as we continue to
introduce successful new products.
Polyvinyl chloride (PVC), a material used in some
product packaging, is the focus of increased attention
primarily because of concerns over its recyclability.
PVC has long been used in packaging for drugs,
medical devices and cosmetics because it provides
moisture-, gas- and flavor-barrier properties required
in many applications and because it has desirable
physical characteristics. Johnson & Johnson operating
companies are aware of the environmental concerns
associated with PVC and are taking steps to limit use of
this material. During product development, our operating companies identify opportunities to minimize the
amount of packaging used and maximize recyclability,
while still ensuring packages meet quality and safety
specifications. Our consumer product companies also
are actively engaged with suppliers to identify alternatives to replace existing PVC packaging and to avoid
PVC use in future products.
Nonproduct Output
NPO is defined as waste prior to treatment, off-site
recycling or disposal. By minimizing NPO – through
increased process efficiency and internal recycling and
reuse – we can reduce the need for off-site transport
of waste, and we can help conserve land and water
resources that can be adversely affected by landfilling
of waste.
Johnson & Johnson has set goals for reducing
generation of three categories of NPO: nonhazardous,
hazardous and toxic. Regardless of regulatory differences around the world, we have internally established
standard definitions of these three categories for
global tracking and reporting purposes. Facility-based
avoidance projects, such as those described below,
in addition to plant divestitures, have resulted in
cumulative avoidance to date that exceeds our targets:
12.5 percent cumulative avoidance of nonhazardous
NPO for 2001-2004 (compared to a target of 10 percent);
27 percent cumulative avoidance for hazardous
NPO (target is 5 percent); and 21 percent cumulative
avoidance for toxic NPO (target is 5 percent).
●
At Noramco, Inc. in Athens, Georgia, US, the site
EHS team identified opportunities to reduce
hazardous NPO from its pharmaceutical operations.
Through this initiative, toluene recovered from
coating operations is now sent off-site for use in the
manufacturing of adhesives. By reusing the toluene,
the site no longer needs to dispose of this by-product
as a hazardous waste.
AWARDS & RECOGNITION
AWARD
California Waste
Reduction Award
Program (WRAP)
RECIPIENT
Advanced Sterilization Products,
Irvine, California, US (7th time this
company has received the award)
LifeScan, Inc., Milpitas, California, US
(6th time this company has received
the award)
DESCRIPTION
WRAP is an annual program, established in 1993
by the California Integrated Waste Management
Board, which recognizes businesses that have made
outstanding efforts to reduce nonhazardous waste
and send less garbage to landfill.
Most Bicycle-Friendly Employer,
Northern Region
Cordis Europa,
Roden, the Netherlands
The Milieufederatie (a national nongovernmental
organization) issues this annual award to the employer
who stimulates and rewards green traffic the most.
It was the first time that this award was issued.
Blue Ribbon Level P2AD*
Partnership Program,
Charter Member
Noramco, Inc.,
Athens, Georgia, US
Georgia established the P2AD program in 2004 to
foster environmental leadership and recognize
superior environmental performance.
Austrian Mobility Award
Johnson & Johnson G.m.b.H.,
Hallein, Austria
Presented by the VCÖ (Verkehrs Club Österreich, or
Traffic Club of Austria) for first place in the company
category demonstrating the theme “better — healthy —
mobile.”
Environmental Quality
Honor Roll
Ortho-Clinical Diagnostics, Inc.,
Raritan, New Jersey, US
Presented by the New Jersey Business and Industry
Association to companies that create jobs, protect
the environment, improve their workplaces and
strengthen the community.
Most Trustworthy Company
on Environmental Protection
Johnson & Johnson Medical Ltd.
and Johnson & Johnson China Ltd.,
Shanghai, China
The Shanghai Minhang Environmental Protection
Bureau presented this award, which recognizes
companies demonstrating regulatory compliance,
business success, efficiency and sustainability.
Environmental Excellence
Award
Janssen-Cilag
Farmaceutica, S.A. de C.V.,
Puebla, Mexico
The Procuraduría Federal de Protección al Ambiente
(federal Environmental Protection Agency) created this
award in 2002 to recognize companies that contribute
to environmental sustainability in Mexico.
Kyung-Gi Province Exemplary
Environmental Achievement Award
Janssen-Cilag Korea, Ltd.,
Seoul, Korea
Conferred by the Governor of Kyung-Gi in recognition
of excellent environmental performance and leadership.
*Pollution Prevention
Assistance Division
31
J
ohnson & Johnson is proud to serve on the
Corporate Council of the Center for Health and
the Global Environment at Harvard Medical School.
We are supporters, in particular, of the center’s
biodiversity and human health project, the goal of
which is to educate policy-makers and the public,
through rigorous scientific data and compelling stories,
about the urgent need to preserve natural ecosystems
because they are essential to human health. Currently,
project work is focusing on communicating and
disseminating information and preparing a book
manuscript for publication. Center staff members
have published articles in scientific journals, spoken
at conferences around the world, and distributed a
brief Interim Executive Summary of the project’s
results. Co-sponsors of this globally important
project include the United Nations (UN) Development
Programme, the UN Environment Programme
and the WHO.
●
Johnson & Johnson G.m.b.H. in Hallein, Austria,
improved its material handling to minimize nonhazardous NPO generation. The company installed an
air handling system that collects material fibers from
the tampon manufacturing process while excluding
any dust or other particles, thereby allowing the fibers
to be reused instead of being disposed as nonhazardous
NPO. Through this and other waste reduction efforts,
the facility is avoiding 20,000 kilograms of nonhazardous NPO annually and reducing the need for raw
materials.
Section
Supporting Biodiversity and Human Health
4
RESPONSIBILITY TO
Johnson & Johnson is among the first three
companies to receive the Corporate Leader designation.
Our program commitments consist of the following:
●
●
●
●
●
Further reducing carbon dioxide emissions to 7 percent
below 1990 levels, by 2010, in absolute terms.
Further reducing water use by 65 million gallons by
2010 compared to 2003.
Increasing facility membership in Performance Track.
Conducting environmental audits at 100 percent of
our external manufacturing facilities by 2010.
Increasing by 50 percent the amount of paper
packaging that is derived from certified, sustainably
managed forest, or that is made from recycled paper
containing at least 30 percent post-consumer content,
by 2010 (compared to a baseline year of 2005).
Environmental Cost Reduction and Avoidance
J
ohnson & Johnson tracks environmental costs and
cost avoidance as a result of projects implemented
by facilities to meet the Next Generation Goals.
Environmental costs include the costs of transporting,
storing, treating and disposing of raw materials
and process waste. By tracking our reductions in these
costs, Johnson & Johnson has built a strong business
case for our environmental goals and programs.
Environmental Costs and Cost Avoidance Worldwide
($ IN MILLIONS)
2004
2003
Environmental Labor
(Environmental Staff and Contractors)
28.3
26.3
Wastewater Management
(Treatment and Disposal)
12.5
12.6
Solid and Chemical Waste Management
(Reuse, Recycle, Treatment and Incineration)
35.4
36.5
4.6
4.6
12.3
12.8
5.6
6.3
14.8
13.6
TOTAL ENVIRONMENTAL COSTS
$ 113.5
$ 112.7
Capital Spending for Environmental
Controls and Equipment
$
$
ENVIRONMENTAL COSTS
Air Emission Management
(Treatment and Disposal)
Management Systems and Compliance
(Assessments, Consultants, Permits and Training)
US EPA Performance Track
I
n early 2005, the US EPA distinguished Johnson & Johnson
as a Corporate Leader in the Performance Track
Program, recognizing our environmental achievements
and the significant number of our US facilities that
participate in Performance Track (40 out of 49 major
sites). EPA developed the Corporate Leader designation
to encourage companies to be active members in the
facility-level program, proactively manage environmental
issues at the corporate level, and extend their environmental management activities beyond the fence line to
their value chain (including suppliers and customers).
32
Remediation
(Clean-up Costs and Legal Fees for
Managing Environmental Impacts)
Equipment Depreciation (Related to
Treatment and Emission Controls)
22.0
41.4
RESOURCE COST AVOIDANCES RESULTING
FROM INITIATIVES
Raw Materials (Avoidance in the usage
of process raw materials)
66.5
84.7
Packaging (Avoidance in the amount of
packaging materials used with our products)
35.7
30.7
Energy (Avoidance in the usage of
energy at our sites)
11.7
11.9
Water (Avoidance in the usage,
treatment and processing of water)
2.4
1.9
TOTAL RESOURCE COST AVOIDANCES
$ 116.3
$ 128.1
Environment Worldwide Results
Our CO2 emissions reporting
follows the Greenhouse Gas
Inventory protocol developed by
World Resources Institute and
the World Business Council for
Sustainable Development. The
protocol requires that we recalculate historical emissions to reflect
acquisitions, divestitures and
mergers, so that all data shown
on the chart represent emissions
from the same set of facilities
over time.
For other environmental
metrics, each year’s data present
a “snapshot” of the Company as
of the end of that year. Facilities
divested during the year are not
included in that year’s figures.
When a new facility is acquired
or begins operation, it must
begin reporting environmental
data within 18 months. These
charts reflect some minor
changes to environmental data
for 2001, 2002 and 2003 that
were found as a result of routine
internal auditing.
Water Use 2001-2004
CO2 Emissions 1990 -2004
(Million kg)
991 990 991 991
974 979 973 990 961
961
941
1005
905
90
91
92
93
94
95
96
97
98
99
00
01
04
Indexed to Sales
(Million kg)
(kg/1,000 $ sales)
12.1
31
01
02
03
01 02 03 04
04
04
01 02 03 04
Nonhazardous Nonproduct
Output (NPO) 2001-2004
Absolute
Indexed to Sales
(Million kg)
(kg/1,000 $ sales)
12.5%
4.3
8.0
166
164
01
02
14
4.5
194
4.3
180
4.1
156
20
28
163
3.5
145
20
03
04
01 02 03 04
01
Cumulative Avoidance (%)
Avoided
Used
Avoided
Purchased
4.8
4.5
3.9
21
10.7
9.8
03
03
5.1
8.3
02
02
6.7%
391
0.36
Goal: 10% cumulative avoidance 2001-2005
Indexed to Sales
44
0.40
2.4
Avoided
Used
6.9%
01
13.0
2005 Goal 4% reduction
2010 Goal 7% reduction
(kg/1,000 $ sales)
411
13.1
1.8
0.23
Absolute
29
1.1
0.29
Absolute
389
12.1%
.7
10.9
Packaging Use 2001-2004
5.3
(m3/1,000 $ sales)
12.3
excludes water
391
Indexed to Sales
(Million m3)
943 935
Raw Material Use 2001-2004
(Million kg)
Absolute
1056 1047
02
03
103
2.2
04
01 02 03 04
Avoided
NPO Generated
Hazardous NPO 2001-2004
Toxic NPO 2001-2004
Absolute
Absolute
Noncompliance Events
and Accidental Releases
2001-2004
Indexed to Sales
(Million kg)
(kg/1,000 $ sales)
27%
16.4
1.0
45.8
7.4
43.1
41.1
15
3.5
0.51
16.5
3.9
0.9
13.3
42.2
9
0.45
177
0.32
5
10.5
02
03
04
01 02 03 04
Avoided
NPO Generated
01
02
03
04
23
186
8
3.4
0.22
01
(Number of events)
21%
1.2
19.3
9.2
(kg/1,000 $ sales)
1.4
1.2
9.8
Indexed to Sales
(Million kg)
01 02 03 04
Avoided
NPO Generated
132
107
01
02
03
These
2004 events
resulted
in 15 NOVs
and fines
totaling
$30,800
04
Accidental Releases
Agency-identified Noncompliance Events
Self-reported Noncompliance Events
Goal: Zero noncompliance events and
accidental releases
33
Section
4
RESPONSIBILITY TO
In response to the devastating tsunami in December 2004, Johnson & Johnson contributions helped provide temporary housing on
Andaman Island, India.
Society
In addition to protecting the global environment,
we fulfill Our Credo responsibility to communities
through philanthropy and other efforts to meet social
needs. Improving the health and welfare of people
around the world is an integral part of our business;
it is part of our mission as a health care company.
Taking on the challenges of social responsibility is
also increasingly an expectation held by stakeholders
around the world. As a widely respected global
corporation, we embrace these challenges.
Contributions
J
ohnson & Johnson’s commitment to social
responsibility is reflected in the Johnson & Johnson
Credo and exemplified by a number of key initiatives
carried out in communities around the world. Our
contributions program, a worldwide social responsibility
effort, is focused on five key platforms for giving:
Access to Health Care, Women’s and Children’s Health,
34
Advancing Health Care Knowledge, Community
Responsibility and Global Public Health. Johnson &
Johnson sponsors a number of programs structured
around the principles of these platforms.
In addition, Johnson & Johnson has created
“Signature Programs” to address community needs
through strategies that are clearly aligned with the
Company’s Contributions platforms. The Company
also supports local initiatives that are critical to the
communities in which our employees live and work.
Employee engagement is a key element of our
social responsibility programs. Engagement ranges
from executives serving on a number of regional
contributions committees to groups of employees
participating in community efforts. In addition,
Johnson & Johnson works with hundreds of
nonprofit US-based and international organizations
in collaborative efforts to improve health outcomes
and to help create healthier communities.
In 2004, Johnson & Johnson donated $524 million
in cash and products, representing 4.1 percent of our
CSR EUROPE
Corporate Social Responsibility (CSR) Europe is
a business-driven membership network whose
mission is to help companies combine profitability
and sustainability. Johnson & Johnson has been
involved in CSR Europe since 2001. Through its
many member organizations and research projects,
CSR Europe has become a leader in communicating
socially responsible strategies and practices.
pre-tax income. For more information, please read
our 2004 Corporate Contributions report, which is
available at www.jnj.com/community.
Sponsoring the Trust for Public Land
J
ohnson & Johnson has provided longstanding
support for the urban parks and playground
program of the Trust for Public Land (TPL). Over the
past year, this funding has allowed TPL to complete
redevelopment and revitalization projects in the US
benefiting underserved communities in Newark,
New Jersey, and San Francisco, California. In Newark’s
South Ward, TPL completed the participatory design
and development processes at Mildred Helms Park,
the first city-owned park site to be included in TPL’s
program. In San Francisco, the Trust initiated the
revitalization of Potrero Hill Park, including community
outreach, design development and the start of
construction.
Aerial view of Banda Aceh, Indonesia, one of the areas hardest
hit by the tsunami.
DISASTER RELIEF
Since the San Francisco earthquake of 1906,
Johnson & Johnson has provided disaster relief supplies
to aid the victims of hurricanes, floods, fires and, more
recently, terrorism. In response to the recent tsunami that
devastated areas of Asia, individuals throughout the
Johnson & Johnson Family of Companies have been taking
part in relief efforts to provide immediate aid and to address
long-term medical needs. In addition to an initial contribution
of $2 million cash, we have continued to contribute funds
and products to relief efforts. Donations of more than
$81.4 million of medical supplies have been made, providing
2004 Cash Gifts and Product Contributions
Total Giving: $528.7 Million
antibiotics, antiseptics, disinfectants, wound care products,
soap, anti-diarrheal medicine and other supplies. Individual
Product & Other Non-Cash Gifts
$406.9 Million
77%
US Cash Gifts
$111.8 Million
International Cash Gifts
$10.0 Million
21%
employees in the US have contributed more than $330,000
to the American Red Cross International Relief Fund and the
Company is matching their donations. In addition, donations
from Johnson & Johnson employees and companies in Asia
have totaled $400,000, and employees are aiding in the
coordination and distribution of medical products, food,
2%
water and blankets. Johnson & Johnson will remain committed to supporting stabilization and rebuilding efforts,
particularly focusing upon the needs of mothers and children
and upon the health and well-being of communities where
we operate in the region.
35
Section
4
RESPONSIBILITY TO
Access to Health Care
A
lthough there has been steady growth in the
world economy and a continuous increase in
global health care spending, there are sizable
unmet health care needs throughout the world. In
this era of innovation and unlimited possibilities, there
exists tremendous potential for Johnson & Johnson
to reach new markets around the globe, enhance
opportunities and build upon its strengths. About
60 percent of worldwide growth through 2020 is
expected to occur in emerging markets such as
China, Brazil, India, Mexico and Russia.
Johnson & Johnson is focused on global growth
in these markets through an emphasis on regional
research and development; increased regional licensing
and acquisitions; maintaining a global mindset in
Johnson & Johnson Growth
Brings Benefits to China
I
n emerging markets such as China, with its
1.3 billion population, Johnson & Johnson seeks
to provide enhanced health care by reaching new
consumers and growing established businesses.
While market development efforts in underserved
areas of the world are good for business in
a financial sense, they also provide important
access benefits to local populations.
Johnson & Johnson consumer companies in
China have been achieving solid growth since
operations started in the late 1980s. Wound
care, baby care, sanitary protection and skin
care products are among the Johnson & Johnson
consumer products brought to the Chinese
market. Likewise, the establishment of
Xian-Janssen Pharmaceutical Ltd., currently
the largest and most successful foreign pharmaceutical company in China, led to tremendous
success in bringing modern medicine to China
through in-house manufacturing.
36
developing leaders; more systematically translating
success from the most developed markets around the
world; and altering attitudes from a US focus to a
global mindset.
Another significant avenue for providing access is
through direct product donations. Johnson & Johnson
donates to a number of leading nongovernmental
organizations (NGOs) that conduct international relief
efforts. As a founding member of the Partnership for
Quality Medical Donations, we comply with the WHO
Guidelines for Donated Drugs and we were among
the first endorsers of those guidelines. Our current
projects with local organizations include donations
of miconazole muco-adhesive tablet (MAT) into a
comprehensive drug distribution organization in
Kenya called MEDS, which functions, in essence, as a
revolving fund for drug procurement. This donation
has been supplemented by cash for educational
activities. We also support a home health care support
program under a memorandum of understanding with
HIV South Africa. A wide variety of over-the-counter
medicines and personal care products are being
provided for up to 10 community-based organizations,
which serve an estimated 2,400 patients weekly.
At the international level, we are currently operating under a memorandum of understanding with the
IDA Foundation to supply free infection prevention
products for distribution to government and nonprofit
health care organizations worldwide. This Dutch foundation is associated with the International Dispensary
Association (IDA) and has as its core objective to provide high-quality essential drugs and medical supplies
at the lowest possible price to developing countries.
Our Tibotec-Virco N.V. subsidiary in Mechelen,
Belgium, provides miconazole MAT for treatment of
oro-pharyngeal candidiasis, the most common opportunistic infection in AIDS patients. The three approaches used include: 1) the sale of miconazole on a costrecovery basis with IDA and several other not-for-profit
pharmaceutical distributors supplying government
hospitals, faith-based clinics and retail pharmacies;
2) donation programs to associations of people living
with HIV/AIDS, various NGOs and faith-based support
organizations and national AIDS programs in
sub-Saharan Africa; and 3) inclusion of miconazole
in basic drug kits for HIV/AIDS patients and their
families. For more information on these programs see
the Tibotec website: www.tibotec.com.
The Nature Conservancy Projects in South America
Sierra Nevada de Santa Marta, Colombia – The Nature
Conservancy is working to raise awareness among
the local population of the importance of the
environment and its impact on human health. With
Johnson & Johnson support, activities include
reforestation, water and waste management, and
analysis and management of vectors such as sand
flies and mosquitoes that cause tropical diseases.Efforts
are also underway to promote biodiversity-friendly
farming and forestry practices.
Sinangoé Community in the Condor Bioreserve,
Ecuador – The Nature Conservancy has worked with
the Cofán tribe, the indigenous people of Sinangoé,
for more than 10 years. Current activities sponsored
by Johnson & Johnson to promote community health
include nutritional education, provision of medical
supplies and construction of sanitary infrastructure.
In turn, the Cofán tribespeople help preserve the
native forested ecosystem through their knowledge of
its species and ecological functions, developed over
hundreds of years of living in the region. Research
conducted in the mid-1990s showed that the forest
area inside the Sinangoé Cofán territory was better
conserved than tracts of forest found on land managed
by families that had recently moved into the area.
Support for Community Health
T
hrough our support of major NGOs and their local
partners around the world, Johnson & Johnson is
making a difference in peoples’ lives. Some of our most
far-reaching community health efforts are undertaken
through the World Wildlife Fund (WWF) and The Nature
Conservancy and its Health and the Environment program.
A Johnson & Johnson grant supported the training
of community paramedics and health promoters to
address the area’s most common needs: reproductive
health, pediatrics, dentistry and disease prevention.
© WWF/Philipp Goeltenboth
World Wildlife Fund
In many regions around the globe, WWF pursues
projects to improve the standard of living in vulnerable
communities, meet their subsistence and health care
needs, and relieve pressures on the surrounding
environment. Johnson & Johnson is supporting WWF
efforts in the Congo Basin of Africa, the Eastern
African marine ecoregion and the Eastern Himalayas
to improve human health outcomes while at the same
time protecting native ecosystems and rare species.
WWF and its local nonprofit partners recognize that the
health of human populations is integrally linked to the
environment in areas such as food security, access to
indigenous medicines and sustainable use of resources.
Mbaracayu Forest Biosphere Reserve, Paraguay –
View of one of the many bays and turtle nesting beaches in
the Kiunga Marine National Reserve, Kenya. With support from
Johnson & Johnson, the World Wildlife Fund is implementing
a health and biodiversity project to benefit isolated fishing
communities in the reserve.
37
Section
5
S T O C K H O L D E
T O
R S
“Our final responsibility is
to our stockholders.
Business must make a sound profit.
We must experiment with new ideas.
Research must be carried
on, innovative programs developed…”
FROM OUR CREDO
Johnson & Johnson completed another highly
successful year in 2004, with total sales of $47.3 billion
(a 13 percent increase over 2003). Each business
segment – Medical Devices and Diagnostics,
Pharmaceutical and Consumer – achieved double-digit
growth. Johnson & Johnson stock is publicly traded
on the New York Stock Exchange (ticker symbol JNJ).
2004 Sales by Business Segment
2004 SALES
Medical Devices
and Diagnostics
PERCENT CHANGE
FROM 2003
$16.9 billion
13.2%
Pharmaceutical
$22.1 billion
13.4%
Consumer
$ 8.3 billion
12.1%
2004 Sales by Region
United States
$27.8 billion
Europe
Asia-Pacific Western $11.2 billion
and Africa Hemisphere
$5.8 billion (non-US)
$2.6 billion
For full information on the Company’s financial performance
for 2004, please see our Annual Report, which is available
at www.investor.jnj.com.
38
Improving Business Results through Process Excellence
P
rocess Excellence was launched at Johnson &
Johnson in 1999 and focuses on improving
business results while building stronger businesses for
the long term. It encompasses business assessments,
powerful improvement tools (Six Sigma, Lean Thinking,
Design Excellence) and best practice sharing to help
Johnson & Johnson companies achieve their shortand long-term goals. As of December 2004, more than
3,500 Black Belts and Green Belts, plus 114 Master
Black Belts, have been trained in the Process Excellence
improvement methods. These collective skills and
competencies have contributed to the success of
countless projects, which have delivered just over
$1 billion in financial benefits during 2004, and a
cumulative $3.5 billion in the last four years.
In 2004, 51 companies within the Johnson &
Johnson Family of Companies conducted a business
assessment, using Process Excellence tools, that
evaluated their performance and highlighted key areas
for improvement. More than 200 Johnson & Johnson
business leaders worldwide have received training
as examiners to conduct these assessments. Process
Excellence provides a common framework for achieving
continuing improvement across the corporation.
Our Credo principles have guided us for many years
and will continue to set the tone of integrity for the
Company in all aspects of how we manage our
business. Our Credo encompasses our accounting
and financial reporting responsibilities to shareholders,
investors and other stakeholders. The management
of Johnson & Johnson is responsible for the integrity,
objectivity, accuracy and clarity of our reporting.
The Johnson & Johnson Board of Directors is
currently made up of 13 individuals, 11 of whom are
independent under the standards of the New York Stock
Exchange. The independent, non-employee members
of the Board meet in executive session, without any
members of Johnson & Johnson management present,
after most Board meetings. The Audit Committee of the
Board of Directors is composed solely of independent
directors with the financial knowledge and experience
to provide appropriate oversight.
The Company has adopted formal principles
of corporate governance, which can be found in the
Corporate Governance section of our Investor Relations
website at www.investor.jnj.com. The website also
contains more detailed information about the Board
of Directors composition and committees, as well as
information on contacting the Board.
Our commitment to managing our business for the
long term drives us to leverage science and technology
to serve the needs of consumers while creating strong
value for our stockholders. From the invention of
the BAND-AID Brand Adhesive Bandage in 1921 to
today’s R&D breakthroughs in treating tuberculosis
and HIV/AIDS – Johnson & Johnson continues to
discover and develop innovative health care products.
Research and Development Expenses
2001
$3.59
2002
$3.96
2003
$4.70
2004
$5.20
(billions of dollars)
Business Ethics
O
ur Ethical Code For the Conduct of Pharmaceutical
Medicine is intended to complement Our Credo
by providing more specific standards of conduct and
behavior for physicians, clinical research scientists
and others who are responsible for medical aspects
of pharmaceutical research and development.
Johnson & Johnson’s Policy on Business Conduct
contains the basic rules and policies governing our
business practices around the world. Our employees
worldwide are required to read, be familiar with and
follow this policy, and our senior managers must certify
annually that their organizations comply with its
requirements. This Policy includes a requirement that
employees promptly report information concerning any
prohibited or unlawful act.
HIV/AIDS Advances in Science
J
ohnson & Johnson searches for ways to help people
with HIV/AIDS live longer, healthier lives. As a
global health care company, we have a genuine interest
in supporting scientific research for unmet medical
needs. As described below, several of our operating
companies have developed therapeutic medicines to
address the worldwide HIV/AIDS crisis, and research
into new products is continuing.
Tibotec-Virco N.V. is advancing the search for new
therapies that can help improve and save lives affected
by HIV/AIDS in both the developed and developing
countries of the world. Tibotec focuses on the discovery
Recognition from the Investment Community
J
ohnson & Johnson stock has
been included in the Dow Jones
Sustainability Indexes (DJSI) since
2000. The DJSI family follows a
best-in-class approach to identify
sustainability leaders in each industry.
The Company also enjoys a AAA rating – the
highest given – from Innovest Strategic Advisors, an
investment research organization that focuses on
non-traditional drivers of investment risk and returns,
such as corporate environmental, social and
governance performance.
Johnson & Johnson has been
independently assessed according
to the FTSE4Good criteria and
has satisfied the requirements
to become a constituent of the
FTSE4Good Index Series. Created
by the independent financial index company FTSE
Group, FTSE4Good is a financial index series that is
designed to identify and facilitate investment in
companies that meet globally recognized corporate
responsibility standards.
39
Section
5
RESPONSIBILITY TO
S T O C K H O L D E R S
and development of new anti-retrovirals including protease inhibitors, non-nucleoside reverse transcriptase
inhibitors and other products. Additionally, the company
is developing an anti-tuberculosis agent, which was
discovered by scientists at Johnson & Johnson
Pharmaceutical Research & Development in Belgium.
Tuberculosis is a common opportunistic infection
found in HIV/AIDS patients and a leading cause of
death in people with AIDS in the developing world.
Virco BVBA in Mechelen, Belgium, has been actively
participating in research collaborations aimed at
evaluating the virological evolution of the HIV pandemic
and monitoring the emergence of HIV drug resistance
in both the developed and developing countries of the
world. Virco BVBA scientists were among the first to
develop HIV drug resistance tests, and today support
doctors making personalized therapy regimens for their
HIV positive patients by providing diagnostic services
for the management of HIV infection.
Ortho-Biotech Products, L.P., Bridgewater, New Jersey, US,
has explored the use of PROCRIT (Epoetin alfa) to treat
HIV-related anemia often caused by HIV medications,
blood loss and nutritional deficiencies typical in people
with HIV/AIDS. PROCRIT helps build red blood cells,
which circulate more oxygen throughout the body,
thereby providing more energy and reducing fatigue.
DURAGESIC (fentanyl transdermal system) CII
patch, created by Janssen Pharmaceutica Products, L.P.,
in Titusville, New Jersey, US, is a medication for
moderate-to-severe chronic pain that can provide
long-lasting relief from persistent pain in people
suffering from late stage AIDS and cancer.
Other Stakeholder Issues
J
ohnson & Johnson periodically receives inquiries
on issues related to research and development
activities, such as the use of stem cells and animals
in research.
Stem Cells
Johnson & Johnson pursues some efforts in the area
of stem cell research, including in-house efforts as
well as work performed by external contractors, and
collaborative research activities. Our internal policy on
stem cell research activities allows for the use of adult
human stem cells, adult somatic cells, animal stem
40
cells and animal somatic cells or stem cells from the
umbilical cord blood or placenta. Research using somatic
cells covers a broad range of unmet medical needs,
including diabetes, heart failure, osteoarthritis, blindness
and neurodegeneration.
Our policy does not permit the use in any research
of human stem cells or tissue that would be derived from
fetuses. With regard to research using embryonic stem
cells (an earlier stage of development than the fetus),
the Company follows the guidelines established by US
President George W. Bush for research conducted at the
National Institutes of Health. We have a senior level
committee, which includes external bioethicists, that is
charged with reviewing developments in this area and
assessing any requests to conduct research involving
embryonic stem cells. No studies have been approved
involving human embryonic stem cells derived after
August 9, 2001.
Animals in Research
Johnson & Johnson has a responsibility to assure
the safety and efficacy of our products for intended
use and in the event of accidental misuse. The primary
means of providing this assurance continues to be the
judicious and ethical use of laboratory animals and
in vitro (test tube) tests.
The policies and guidelines governing animal testing
at Johnson & Johnson as well as the company’s efforts
to identify alternative testing methods can be found on
the Social Responsibility section of our website, under
Policies (www.jnj.com/community).
Johnson & Johnson is committed to the “3R”
principles of replacement, refinement and reduction
of laboratory research animal testing and to seeking
alternatives through internal efforts as well as by supporting studies at outside research facilities. Our commitment
to the “3R” principles has resulted in a substantial
decrease in animal usage. In the five-year period spanning
1999 through 2003, the number of animals used has
dropped annually. By 2003, the number of animals used
had been reduced by 24 percent. During the same period,
overall R&D expenditures rose 81 percent.
We provide financial support for outside research
programs that develop and validate in vitro alternatives
such as tissue culture programs. Johnson & Johnson
is a corporate sponsor of the Johns Hopkins Center for
Alternatives to Animal Testing and the Institute for
In Vitro Sciences. We also supported a major program
at the University of Texas to develop alternatives to
skin and eye irritation testing.
C
O
N
T
E
N
T
S
GRI Content
I N D E X
SECTION ONE
Strategic Approach to Sustainability at
Johnson & Johnson – Living Our Credo
Summary of Key Indicators
Sustainability Organization and
Management System
Our Credo
SECTION TWO
12
Responsibility to Customers
1
2
2
7
8
SECTION THREE
Responsibility to Employees
Safety
Health
Employment Policies and Practices
10
16
21
SECTION FOUR
Responsibility to Communities
Environment
Society
24
34
SECTION FIVE
Living
Our Credo
Responsibility to Stockholders
38
38
39
Index
41
This report was prepared based on the Global
Reporting Initiative’s (GRI) 2002 Sustainability
Reporting Guidelines. The mission of GRI is to
promote international harmonization in the reporting of relevant and credible corporate economic,
environmental and social performance information
to enhance responsible decision-making. GRI
pursues this mission through a multi-stakeholder
process of open dialogue and collaboration in the
design and implementation of widely applicable
sustainability reporting guidelines. GRI has not
verified the contents of this report, nor does
it take a position on the reliability of information
reported herein. For further information about
GRI, please visit www.globalreporting.org.
The cover features
Dang Huong Giang,
a first grade student
in Vietnam, pictured
wearing a safety
helmet donated by
Johnson & Johnson
(see related story
beginning on page 13).
Photography by
Trinh My Anh of the
Asia Injury Prevention
Foundation.
For additional information
on Johnson & Johnson
programs and performance,
use the reply card enclosed
in this report or contact:
Brian K. Boyd, Vice President,
Tina Lucchetti, Manager,
Investor Relations
Johnson & Johnson
New Brunswick, NJ 08933
Website: www.jnj.com
GRI
TOPICS
REFERENCE*
Accident rates
LA7
Accidental releases
EN13
Association
memberships
3.15
Awards and
recognition
SO4
8,
Biodiversity
EN7
Business conduct
policies
SO2,3.7
Child labor
HR6
Community outreach
SO1
Compliance
Conservation
EN16
EN27
PAGES
2, 12-14, 15
2, 25, 26, 33
35, 41
15, 27, 31, 39
26-27, 32, 37
39
4, 23
2, 13-14, 25,
26-28, 35-36
2, 3-5, 23, 25, 26
2, 15, 25,
26-27, 37
19, 34-37
Contributions
EC10
Corporate
governance
3.1, 3.2, 3.6
Diversity
LA10,11
Employee health
and wellness
LA12
Employment
policies
HR 4,5,6,9
Energy use
3.19, EN3
Environmental costs
EN35
Ergonomics
LA7,12
External certifications
3.20
External manufacturers 3.16, EN33
Facility assessment
3.19
Fleet safety
3.19, LA7
Goals
3.19
38-39
4, 22-23
10, 16-22
21-23
2, 27, 28-29
32
11
2, 15, 25
4-5
4
2, 12-13
2-3, 5, 11, 13,
17, 24, 25, 27,
28, 32, 33
Greenhouse gases
2.16, EN8 2, 27, 28-29, 33
HIV/AIDS
LA8
19, 36, 39-40
ISO 14001
3.20
2, 25
Laboratory safety
LA7
11-12
Lost work days
LA7
2, 15
Materials
EN1
2, 27, 30, 33
Net sales
EC1
38
Nonproduct output EN10,11,12
2, 27,
31-32, 33
OHSAS 18001
3.20
15
Organization
3.4, 3.6
3
Our Credo
3.7
7
Packaging
EN1,14
2, 27, 30, 33
Process Excellence
3.19
38
Products
2.2, 3.13, 3.16, EN14
8, 9, 25
Renewable energy
EN17
28-29
Report coverage
2.11 - 2.14
2, 33
Research policies
3.14, 3.16
39-40
Standards
3.19
3-4
Strategic vision
1.1
1, 7
Supply chain
3.16, EN33, HR3
4-5
Toxic chemical
releases
EN10, 11, 12 2, 27, 31, 33
Voluntary initiatives
3.14
15, 29, 32
Waste
EN11
2, 27, 30-31, 33
Water use
EN5
2, 27, 29, 33
*GRI refers to the voluntary reporting guidelines
of the Global Reporting Initiative, available at
www.globalreporting.org.
Organizational Partnerships
As a good corporate citizen, we work with organizations
all over the world to advance the concepts of sustainable
growth, protect natural resources and enhance worker
health and safety. Members of our senior management
team also serve on the boards of major conservation and
health organizations.
American College of
Occupational and
Environmental Medicine
www.acoem.org
Business for Social
Responsibility
www.bsr.org
The Conservation Fund
www.conservationfund.org
Global Environmental
Management Initiative
www.gemi.org
Harvard Medical School,
Center for Health and
the Global Environment
www.med.harvard.edu/chge
Healthy People 2010
www.health.gov/healthypeople
National Safety Council
www.nsc.org
The Nature Conservancy
www.nature.org
New Jersey State
Safety Council
www.njsafety.org
Partnership for Quality
Medical Donations
www.pqmd.org
Prevent Blindness Tri-State
www.preventblindnessct.org
Student Conservation
Association
www.thesca.org
Trust for Public Land
www.tpl.org
US-EU Cooperation
on Workplace Safety
and Health
www.useuosh.org
The Wharton School
of the University of
Pennsylvania, Risk
Management and Decision
Processes Center
http://grace.wharton.upenn.edu/risk
The Wilderness Society
www.wilderness.org
World Business Council
for Sustainable
Development
www.wbcsd.ch
World Environment Center
www.wec.org
World Resources Institute
www.wri.org
World Wildlife Fund
www.panda.org
41
12
12
2 0 0 4 S U S TA I N A B I L I T Y R E P O R T
Visit the 2004 Sustainability Report online
at www.jnj.com. We invite your comments
and feedback via our website or using
the comment card provided in this report.
“We must be good citizens—support
New Brunswick, New Jersey 08933
good works and charities...We must
encourage civic improvements and
better health and education. We must
maintain in good order the property
we are privileged to use, protecting the
environment and natural resources...”
Cert no. SW-COC-1340
This report is printed on paper made from
100% post-consumer waste, certified for
the Forest Stewardship Council rules and
manufactured with wind-generated energy.
Printed by Pictorial Offset Corporation,
an ISO 14001-Environmental Management
Systems company.
The following trademarks and trade names of
Johnson & Johnson and its affiliated companies
appear in this report: BAND-AID, CHARITÉ, CYPHER,
DURAGESIC, MOTRIN, PROCRIT, REMICADE and TYLENOL.
The following trademarks of other companies also
appear in this report: HARRIS INTERACTIVE (Harris
Interactive Inc.), HEALTHMEDIA (HealthMedia, Inc.),
LIFEWORKS (Ceridian Corp.), WEIGHT WATCHERS
(Weight Watchers International, Inc.) and WORKPLACE RESPONSE (Screening for Mental Health Inc.).
© Johnson & Johnson Services, Inc. 2005
Living
Our Credo
The values that drive our business strategy of
sustainable, long-term growth and leadership

Our Credo - World Environment Center

Transcription

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