Letter from
Our CEO

Letter from
Our CEO

We have always been and always will be inventing, and we do it for the single greatest purpose: life.

For more than a century, our company has been inventing medicines and vaccines for the world’s most challenging diseases. That same commitment to overcoming the greatest obstacles to improving health and well-being extends to how we seek new ways to develop and reward our employees, protect the environment and operate with the highest standards of ethics and integrity. Our 2016/2017 Corporate Responsibility Report reviews our progress and highlights how we operate as a responsible company while building a sustainable business — contributing to a healthier and more hopeful world for everyone.

As a company with an enduring mission to save and improve lives, we are focused on finding solutions to many of the world’s most devastating diseases, such as cancer, Alzheimer’s disease, diabetes, HIV, Ebola, antibiotic-resistant infections and more. We also are committed to pursuing the science of healthier animals, reflecting our dedication to providing veterinarians with new medicines and vaccines to advance optimal animal care.

We know that the world is waiting for cures. For that reason, we have a legacy of investing in research and development. We see it as our responsibility to invent solutions that fundamentally transform the future of human and animal health. Our people work relentlessly to push the boundaries of science with the hope and expectation that the medicines and vaccines we invent will lead to better health for generations to come.

Our passion to save and improve lives extends to our commitment to protecting and sustaining the environment. We are proud that we met our previous environmental sustainability goals in 2015, five years ahead of schedule, and we recently developed a new set of environmental goals by assessing the external influences that could potentially impact our company and, in turn, our patients over the near and long term. These new goals address the rising expectations that our customers, investors, employees and other stakeholders have of our responsibility to manage the environmental impact of our operations, supply chain, products and packaging. The new environmental goals also will improve the health of our business and drive innovation as our scientists and engineers develop new ways to operate more efficiently, reduce risk and drive down costs.

With a commitment to being the world’s premier research-intensive biopharmaceutical company, we look to foster an environment that engages and develops our diverse and talented people. For example, to help celebrate our 125th anniversary and honor our long-standing tradition of giving back to the communities in which we live and work, the company set a goal of recording 125,000 employee volunteer hours in 2016. Our colleagues around the world rose to the occasion — handily beating the company target and logging more than 214,000 volunteer hours. We also support our employees by promoting diversity and inclusion across our organization. From how we respect and learn from each other as colleagues to how we conduct our clinical trials, one thing is clear: maintaining a diverse and inclusive environment is not just good for business, it is essential to our future success.

For all of these activities, the foundation of our strategy is our unwavering commitment to ethics and integrity. We aspire to be the most trusted biopharmaceutical company in the world. Our values and standards play an essential role in how we build trust and confidence with patients, customers, shareholders, employees and other stakeholders.

As part of our ongoing commitment to transparency about our business, we disclosed information in early 2017 to help people better understand our pricing practices in the United States. This information — which will be updated annually — includes the average annual list and net price increases across our product portfolio since 2010. It also includes the average discount rate for our medicines and vaccines each year. These disclosures are just one of the ways in which we are responding to concerns about access and affordability. We have a history of making our inventions available to people who need them. We welcome opportunities to partner with stakeholders to find sustainable solutions to the global challenge of access to health care.

One platform for connecting with external stakeholders to improve the health of society and our planet is the Sustainable Development Goals (SDGs), a set of 17 global goals adopted by the United Nations (UN) in 2015 to help end poverty, protect the environment and ensure prosperity. We see support of the SDGs as both a responsibility and an opportunity, a lens through which we can identify ways to contribute to societal needs while strengthening our business. In addition, to guide our company’s efforts on sustainability issues, we remain committed to supporting the 10 universally accepted principles of the UN Global Compact.

We have a central purpose: to help people live longer, healthier and more productive lives. Whether it is by inventing breakthrough medicines and vaccines that address critical areas of growing, global medical need, improving access to health care, protecting the environment or engaging employees, we are committed to making the world a better place today and for generations to come.

Sincerely,

Kenneth C. Frazier
Chairman and Chief Executive Officer