Global Diversity
& Inclusion

Global Diversity
& Inclusion

We uphold global diversity and inclusion as a core value in everything we do.

 

It is how we foster a culture of true inclusion for all. From respecting and valuing people, to learning by sharing ideas with each other, to supporting the career advancement of our employees, collaborating for success is critical to our mission of saving and improving patients’ lives.

Achieving a competitive advantage in the global pharmaceutical industry requires the best minds from a diverse range of talent, with rich, varied experiences, who can help deliver on our mission.

The global demographic landscape of patients and the labor markets is changing—it will become increasingly diverse. This understanding requires a paradigm shift: what we historically have regarded as the mainstream market is, in fact, a very diverse global workforce and patient base.

Self-ID Campaign

For the past two years, we have conducted a self-ID campaign designed to comply with U.S. federal regulations and to reinforce a culture of inclusion by inviting employees in the U.S. and Puerto Rico to voluntarily self-identify disability, LGBT and veteran status. The program has received a strong response from employees, and we were invited to participate on the Department of Labor Office of Federal Contract Compliance (OFCCP) Roundtable to share best practices.

Given this perspective, we regard a globally diverse workforce as a fundamental business imperative. Global diversity and inclusion (GD&I) represents a powerful business strategy that unleashes the insights and perspectives of our employees to deliver scientific innovation and achieve transformative business results. From the office of the CEO and our company’s Leadership Team to the Global Diversity & Inclusion Center of Excellence, and everything in between, we are fully committed to fostering an inclusive culture where diversity and inclusion permeate our day-to-day operations and business decisions. In doing so, we believe that our business performance is exponentially enhanced.

We employ talented people of varied gender, age, sexual orientation, gender expression, veteran and disability status, and ethnic, cultural and faith backgrounds to help us better understand the unique needs of global patients and to create competitive advantage in the marketplace. This, in turn, delivers intrinsic, long-term value to society and to our shareholders.

“Diversity is an integral part of our business practices that contributes to our company’s success and to our mission. The soul of our company is our people, and all of us put our patients and customers at the center of everything we do.”

Celeste R. Warren
Vice President, Human Resources and Global Diversity & Inclusion Center of Excellence

LEADERSHIP COMMITMENT

The single most significant advocate of diversity and inclusion at our company resides at the very top—with our CEO, Kenneth C. Frazier.

“We are deeply committed to fostering an inclusive environment that embraces different perspectives and values the contributions of each individual. Having a globally and locally diverse workforce makes us a more innovative and agile company—and one better attuned to the needs of our customers, health care providers and patients who ultimately use our products.”

Kenneth C. Frazier
Chairman & Chief Executive Officer

Our CEO reinforces this commitment to diversity throughout all ranks of the global enterprise by:

  • Signing off on executive compensation tied to recognition of diversity, in the form of bonuses, raises, stock and options
  • Approving diversity metrics and reviewing progress against aspirational talent goals for women and underrepresented ethnic groups
  • Driving accountability through meetings with the company’s key line leaders on a quarterly basis to review key strategic initiatives centered on global diversity
  • Conferring with the company’s head of GD&I on strategic diversity and inclusion solutions and innovation opportunities

By advancing these initiatives across every facet of the business, we continuously seek to raise the performance bar for diversity and inclusion and uphold accountability among leaders, integrating both as important drivers of our sustainable competitive advantage.

CEO Action for Diversity & Inclusion

We are joining more than 150 corporations in a commitment to diversity and inclusion.

In June 2017, Ken Frazier, along with other CEOs, signed a pledge that outlines a specific set of actions the signatories will take to cultivate a trusting environment where all ideas are welcomed, employees feel comfortable, and all are empowered to discuss this very important topic.

By signing this pledge, we are demonstrating our commitment to diversity and inclusion by:

  • Continuing to make our workplaces trusting environments where all can have complex conversations about diversity and inclusion
  • Expanding unconscious bias education
  • Continuing to share best—and unsuccessful—practices

Learn more about the pledge here.

The importance of GD&I and its significance to our patients and customers were reinforced in 2016 when our company launched the first-ever Global Diversity and Inclusion Experience Month. This event brought together colleagues from around the world for a global webcast featuring remarks by Ken Frazier, a leadership panel discussion, and highlights of regional examples of diversity and inclusion. This was a very successful global forum for employees and leaders to come together, discuss the value of diversity and inclusion to their business, and to share experiences.

Discussion with Japanese Prime Minister Shinzo Abe

Ken Frazier visited with the Prime Minister of Japan in 2016 to discuss “Womenomics”—a plan to boost Japan’s economy by increasing the number of women in the workforce and correcting the country’s long-standing gender imbalance.

Using MSD Japan as an example, opportunities to expand career options for women in terms of both recruiting and retaining them at higher rates, and providing suggestions around work-life integration and flexible work arrangements, were discussed.

We ensure that the candidate selection process is inclusive of diversity goals. Our company provides world-class leadership opportunities for employees.

We partner with organizations in both professional and academic settings to net the company a more diverse mix of capable talent. We also have several recruiting and outreach initiatives to seek and attract a diverse candidate pool.

Once new employees are on board, we utilize a comprehensive approach to ensure that they all have ample opportunities to network, build important stakeholder relationships, learn new skills, and hear the perspectives of the senior-most people in the company to broaden their insights and knowledge. We address workplace barriers to ensure full on-boarding for all employees.

We partner with Hiring Our Heroes, an organization that provides employment opportunities nationwide to veterans with disabilities. Each branch of the military produces scientists, engineers and doctors, all of whom are aligned with our company’s needs.

Hiring Our Heroes

In 2016, we entered into a new partnership with the U.S. Chamber of Commerce Foundation’s Hiring Our Heroes program. In addition, in 2016, in partnership with Hiring our Heroes, we announced the results of a year-long study, Veteran Employment Survey: Understanding the Challenges and Creating Long-Term Opportunities for Veteran Employees. This study is truly significant in that it reinforces many of the key themes that Hiring Our Heroes has been stressing for several years now, including the fact that starting to plan for transition earlier in the process is a strong indicator of the level of success that a veteran will have in the civilian workforce.

Read the full report here.

Our company recruits on higher-education campuses and, as part of its diversity-recruiting mission, visits institutions that have a history of serving African-American and Latino students. We regard these pools of talent as a priority, and have allocated time and employee resources to focus on:

  • Historically Black Colleges and Universities (HBCUs): e.g., Hampton University, North Carolina A&T State University
  • Hispanic-Serving Institutions (HSIs): e.g., University of Puerto Rico, Rutgers

We utilize a comprehensive communications strategy, marketing outreach, and strategic alliance partnership approach to ensure that top prospective employee-with-disability hires—early-career candidates and key functional skill candidates in STEM (Science, Technology, Engineering, Mathematics) areas, in particular—are supported as they launch and continue their careers. The strategy comprises academic and university relations, participation in targeted job fairs, national advocacy alliance for disability-related issues, community outreach, branded communications strategies, and external recognition.

Historically, our company has partnered with the American Association for the Advancement of Science to source interns with disabilities for science, engineering, mathematics, computer sciences, and business.

We have worked with the National Technology Institute for the Deaf (NTID), the first and largest career-oriented, technological college in the world for students who are deaf or hard of hearing to have a college intern program. Together with NTID, we helped to raise awareness of the deaf culture and empower managers to create a more inclusive environment for students with a hearing disability.

We have strong relationships and partnerships with the following organizations to support talent development:

  • American Indian Science and Engineering Society (AISES)
  • ASCEND—largest nonprofit organization for pan-Asian business professionals
  • Catalyst—the leading women’s research organization
  • Healthcare Businesswomen’s Association (HBA)
  • Hispanic Alliance for Corporate Responsibility (HACR)
  • National Black MBA Association (NBMBAA)
  • National Organization for the Professional Advancement of Black Chemists and Chemical Engineers (NOBCCHE)
  • National Organization on Disability (NOD)
  • National Society for Hispanic MBAs (NSHMBA)/Prospanica
  • National Society of Black Engineers (NSBE)
  • National Technology Institute for the Deaf
  • National Urban League (NUL)
  • Out & Equal Workplace Advocates—for LGBT business professionals
  • Society for Hispanic Professional Engineers (SHPE) university chapters
  • Society of Women Engineers (SWE)
  • United States Business Leadership Network (USBLN)—driving success through disability inclusion

EMPLOYEE BUSINESS RESOURCE GROUPS (EBRGs)

Our company has 10 EBRGs representing different constituencies and 10,000 members worldwide: women, veterans, Hispanic/Latino, African ancestry, Asia-Pacific, Native American/Indigenous, lesbian, gay, bisexual and transgender, differently able, interfaith and generational.

Each EBRG is supported by company leaders who provide counsel, insight and support for its business plans. In addition, many EBRGs have developed targeted mentoring for their constituents, recognizing that culture plays a role in how careers are furthered.

At the Executive Committee and the Office of Diversity & Inclusion level, all members are active on boards of nonprofit organizations, and are fully committed to GD&I as a business strategy. One hundred percent of our Executive Committee members are mentors, helping and enabling employees to achieve their full potential.

In addition to EBRGs, we leverage the business insights of employees via D.R.I.V.E.N. (Delivering Real Insights Via Employee Networks) to support our company’s business objectives. Employees in the United States and Puerto Rico can contribute to our success by joining this secure, collaborative community of employees designed to allow them to share their perspective anonymously and help drive success for our company.

For example, in June 2017, the Alzheimer’s team used the D.R.I.V.E.N. platform to better understand the potential utility of a new treatment currently being investigated and the type of education and support that will be needed to identify and treat patients early in the disease progression.

“D.R.I.V.E.N. represents true innovation in the pharmaceutical industry and allows us to take the best practices from other industries to get the quick, cost-effective and deep insights we need to drive our business forward by leveraging the diverse experience and perspective of our own employees.”

Alexine Tranquada
Director, Global Customer and Brand Insights

 

TRAINING & DEVELOPMENT

In partnership with the Human Resources Talent Management team, and the Leadership, Learning & Development department, the GD&I Extended Human Resources Leadership Team is reaching deeper, wider and earlier into the organization to develop top talent. We are striving to develop a cross-functional, general-management mind-set, enterprise-wide knowledge of the business, and end-to-end thinking for top talent and potential leaders early in their career—particularly among women and underrepresented ethnic groups (UEGs) in the United States.

Our company invests in leadership development for women and UEGs as a strategy to drive business results and higher levels of performance for the organization.

In 2016, we launched a new “Diversity and Learning Development Catalog.” This new catalog allows for ongoing access to training programs such as “unconscious bias” and “micro-inequities,” executive seminars, peer coaching, external conferences, and more.

Women’s Leadership Program

We partner with Simmons College to inspire and empower female executives. We recognize that developing the leadership potential of these executives, and positioning them for success, delivers a tangible competitive advantage for their organizations.

Women’s Sponsorship Program

The goal of this program is to accelerate the progress of high-potential women, including women of color, at our company by assuring their readiness and visibility so they can attain positions of greater leadership and responsibility.

MMD Leadership Program for African-American Employees

Our company’s Manufacturing Division recently developed and launched a new Leadership Development Program with the United Negro College Fund. The program is designed to identify and recruit top talent for key leadership and management positions within our Manufacturing Division. The program provides a rotational business experience coupled with professional coaching, mentoring, formal instruction, assessment and positioning for potential long-term career assignments. The objective of the program is to increase awareness and preparation among talented students of color, primarily African-American men and women who are current college juniors (rising seniors), to apply for the development program.

Unconscious Bias Education

In 2016 we implemented a program where all company vice presidents and above were introduced to Unconscious Bias Education (UBE) to identify the hidden biases we all possess and to mitigate unconscious bias in processes, practices and behaviors.

Micro-Inequities

Our company offers employees training options to reinforce our commitment to diversity and inclusion. Micro-inequities training helps to create a more fully inclusive work environment by providing employees with an opportunity to learn about and avoid non-inclusive behaviors.

Diversity in STEM

We provide a full-day leadership training session to a diverse range of employees with a focus on the importance of STEM education, driving our mission and the role of personal accountability in managing one’s career for growth and business impact.

Employees with Disabilities

Our company understands that people with disabilities (PwDs)—apparent and non-apparent disabilities—may require workplace accommodations to enable them to contribute to their full potential. PwDs account for more than 15 percent of the world’s population, are an important patient group and control trillions in discretionary income.

Moreover, as populations in developed countries continue to age and experience a greater likelihood of having disabilities, recruiting and retaining top employees at our company regardless of disability is not just a nice thing to do, it is a competitive necessity. The Global Disability Inclusion Council has embarked on a five-year strategy encompassing our company’s leaders from Information Technology, Benefits, Compliance, Staffing, Integrated Health Management, and Facilities.

In addition to the creation of the Global Disability Inclusion Council, we leverage a comprehensive strategic platform to address full disability inclusion, titled “Workplace EnABLEment.” This is our first enterprise-wide, customized disability inclusion strategy that addresses the entire spectrum of the employee experience with a strategic road map that includes recruiting, retention and advancement, a just-in-time manager training toolbox, an employee education program, communications support, community outreach, supply-chain engagement, strategic-alliance support and a measurement system to track results.

Externally, our company is the inaugural founding partner of the U.S. Business Leadership Network’s (USBLN) Disability Supplier Diversity Mentoring and Development Program, which launched in 2016. This program connects certified disability-owned business enterprises (DOBEs) and service-disabled veteran, disability-owned business enterprises (SDV-DOBEs) with mentors within corporate supply-chain functions. It helps disability-owned businesses to better connect with corporate supply chains and each other, giving them valuable support, networking, and potential business opportunities.

The outcomes and connections from the Disability Supplier Diversity Mentoring and Development Program will empower diverse suppliers and better benefit corporate buying functions. Learn more about our supplier diversity program.

gd&i business consortium

The GD&I Business Consortium represents a small group of individuals who are advancing our GD&I strategy in critical areas of our business. These include collaborating with our top customers, enhancing diversity in our clinical trials, building our global supplier diversity and pursuing Project D.R.I.V.E.N., a platform that harnesses the insights of our global diverse employees in market research.

The GD&I Business Consortium brings a business mind-set to four specific initiatives through which our company believes it can make the greatest impact.

  • Top Customers: Leveraging GD&I to co-create initiatives with customers that help to advance our shared diversity goals.
  • Clinical Trials: Adding relevance to our business by enrolling diverse patients in clinical trials as a business imperative.
  • Delivering Real Insights Via Employee Networks (D.R.I.V.E.N.): Utilizing D.R.I.V.E.N., an innovative market-research initiative and tool, to tap into the diverse insights of our global employees to guide the future of our portfolio.
  • Procurement: Having a diverse supplier base to provide our company with a competitive advantage throughout the business value chain and help us better understand and anticipate the needs of the people we serve.

Performance

Gender & Ethnicity2012 2013 2014 2015 2016
Women in the workforce47% 47% 48% 48% 48%
Women on the Board 17% 17% 17% 21% 23%
Women in executive roles1 31% 31% 31% 34% 31%
Women on the senior management team2 35% 35% 31% 34% 36%
Women in management roles3 38% 37% 37% 38% 39%
Members of underrepresented ethnic groups on the Board 25% 25% 25% 21% 23%
Members of underrepresented ethnic groups in executive roles (U.S.) 17% 20% 20% 20% 23%
Members of underrepresented ethnic groups on the senior management team (U.S.)23% 23% 15% 18% 18%
Members of underrepresented ethnic groups in the workforce (U.S.) 24% 24% 24% 26% 26%
Members of underrepresented ethnic groups in management roles (U.S.)18% 18% 20% 23% 23%
New hires that were female 45% 46% 49% 50% 51%
New hires that were members of underrepresented ethnic groups (U.S.)27% 25% 22% 33% 37%
1. “Executive” is defined as the chief executive officer and two structural levels below.
2. “Senior management team” is defined as the fourth structural level below the CEO.
3. “Management role” is defined as all other managers with direct reports not reflected in notes 1 or 2.

Note: Our company has publicly disclosed EEO-1 information since 1999. Our 2016 data is available at http://www.msdresponsibility.com/wp-content/uploads/2016/09/2016_EEO-1_Diversity_Brochure.pdf
Hiring by Age & RegionUnder 3030-5050+
Overall43%49%8%
EM-AP58%40%2%
EM-EEMEA50%58%2%
EM-LA33%48%3%
EUCAN16%57%9%
JAPAN7%67%10%
U.S.39%47%14%
Turnover by Gender & RegionFemaleMale
Overall53%47%
EM-AP49%51%
EM-EEMEA60%40%
EM-LA57%43%
EUCAN52%48%
JAPAN33%67%
U.S.57%43%