Materiality

Materiality

Understanding and prioritizing the corporate responsibility (CR) issues that are most important to our business and our external stakeholders enables us to focus on the right issues and report on them effectively.

The materiality matrix shown below represents the issues that internal and external stakeholders have identified as having significant financial, operational or reputational impact on the company and illustrates where our company can have a significant impact on society and the environment.

Materiality Update

Our 2014 corporate responsibility materiality assessment involved extensive desktop research and consultative interviews with internal and external stakeholders.

Currently, we are in the process of conducting a new assessment to review and update the issues that are of greatest priority to our stakeholders and our company’s long-term success.

We are adopting a data-driven approach to that process, incorporating the use of Datamaran, a business intelligence tool that leverages big data and artificial intelligence (AI) for non-financial issues analysis. This will enable us to expand the scope of our analysis and derive evidence-based results to strengthen our process. Datamaran provides insights and analysis based on industry-focused best practices, peer activity, regulatory and reporting initiatives, and reputational risk to help understand the importance of the latest environmental, social and governance issues to stakeholders.

To supplement and validate the data-driven analysis, we will be engaging with a wide range of external stakeholders to determine the issues that are most important to the groups they represent. Internally, we will engage with senior executives from across our business units and functions to identify the issues that have the greatest impact on our business.

The results of this assessment will help identify corporate responsibility-relevant opportunities and risks to enable  us to better prioritize our efforts to address the issues of greatest significance to stakeholders and to our company’s future success.

Definitions

ACCESS TO HEALTH

Animal-Based Research

  • Internal standards
  • Transparent reporting
  • Consideration of alternatives to animal testing
  • Training

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Anti-Counterfeiting

  • Strategy and operations
  • Monitoring and evaluation
  • Supply chain security

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Bioethics

  • Genetic resources
  • Stem cells
  • GMOs
  • Nanotechnology

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Capacity Building

  • Training and educational programs
  • Local infrastructure improvements
  • Skills and technology transfer to emerging countries

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Clinical Trials

  • Gender balance
  • Enrolling diverse patient populations
  • Development of trial sites outside the U.S.
  • Post-trial access (including compassionate use)
  • Transparent management of clinical trial data
  • Global standards to ensure ethics in R&D
  • Sharing of data within the scientific community

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Community Relations

  • Engagement and dialogue with external stakeholders (including local communities, NGOs, local governments, academia, etc.)

Learn more on our Stakeholder Engagement and Community pages.

Continuity of Supply

  • Assurance of manufacturing
  • Inventory tracking
  • Pandemic readiness

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Disease Focus

  • Development of medications/treatments based on health needs rather than lifestyle

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Health Adherence

  • Engagement with patients and health care providers to promote adherence to medication/treatment regimens

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Health Literacy

  • The degree to which individuals have the capacity to obtain, communicate, process and understand basic health information and services to make appropriate health decisions

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Intellectual Property

  • Patent protections and flexibility
  • Licensing agreements
  • Generics policies

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Local Development

  • Contribution to local economic development

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Philanthropy

  • Foundation
  • Cash donations
  • Product donations
  • Disaster relief

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Pricing and Commercialization

  • Pricing strategies
  • Differential pricing
  • Affordability
  • Availability
  • Registration
  • Pricing transparency
  • Reimbursement strategies

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Product Quality

  • Compliance
  • Trusted products

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Product Safety

  • Management standards
  • Post-market surveillance

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Research & Development

  • Research in unmet medical needs
  • Driving innovation that creates value for society (not simply “me too” drugs)

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EMPLOYEES

Diversity and Inclusion

  • Employee diversity and inclusion
  • Prevention of discrimination
  • Equal opportunity

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Employee Volunteerism

  • Employee volunteer programs

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Labor Practices

  • Management-worker relationships
  • Freedom of expression and association
  • Right to collective bargaining

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Occupational Health and Safety

  • Hazard minimization precautions
  • Promotion of employee health, safety and well-being
  • Assessments
  • Provision of personal protective equipment
  • Emergency response plans

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Restructuring

  • Workforce reduction
  • Reorganization

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Talent Development and Recruitment

  • Training and development
  • Recruitment
  • Leadership development
  • Retention
  • Career management and promotion
  • Compensation and benefits

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Work-Life Balance and Wellness

  • Employee well-being
  • Employee safety
  • Rewards and incentives
  • Positive work environment

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ENVIRONMENTAL SUSTAINABILITY

Climate and Energy (Climate)

  • Energy management practices
  • Carbon footprint reductions (Scopes 1, 2 and 3)
  • Renewable energy projects

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Ecosystem Impacts

  • Use of natural substances (e.g., plants and animals) and materials
  • Biodiversity preservation

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Green Chemistry

  • Use of substances and processes that are more environmentally beneficial
  • Avoidance of chemicals of concern

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Non-GHG Emissions

  • Air emissions such as VOCs, SOx, NOx, etc.

Learn more.

Packaging

  • Impact of design, materials, processing and disposal: the full product life cycle

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Pharmaceuticals in the Environment

  • Biological waste from patients/animals
  • Unused/expired medicines

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Waste Management

  • Handling, management and disposal of both hazardous and non-hazardous waste

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Water Use and Management

  • Influent and effluent parameters, including source, scarcity, recharge rates, quality, treatment and impacts on local communities

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ETHICS & TRANSPARENCY

Corporate Governance

  • Corporate management
  • Board structure
  • Board independence
  • Risk management
  • Executive compensation
  • Accountability

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Distribution of Profits

  • Distribution of revenue
  • Value sharing
  • Tax strategy
  • Investments in local markets

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Ethics in Sales and Marketing

  • Brand management and promotion
  • Ethical marketing
  • Competitive behavior
  • Prevention of anti-competitive practices
  • Compliance with regulatory authorities
  • Anti-corruption/anti-bribery

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Human Rights

  • Human rights
  • Supply chain
  • Health as a human right

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Internal Controls

  • Policies
  • Standards
  • Code of conduct
  • Audits

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Lobbying

  • Lobbying
  • Political contributions
  • Public policy
  • Market influence

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Privacy of Patient Data

  • Policies
  • Standards
  • Procedures
  • Training

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Responsible Procurement

  • Supply chain policies
  • Sourcing guidelines
  • Auditing
  • Sustainable materials guidelines
  • Design for the environment practices
  • Social/environmental criteria to tender requests
  • Alternative methodologies or inputs to reduce the environmental impact

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Transparency and Reporting

  • Transparency disclosures
  • Sustainability reporting (GRI, CDP, etc.)

Learn more.