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“Industry only has the right to succeedwhere it performs a real economic service
and is a true social asset.”
Robert Wood JohnsonChairman, Johnson & Johnson1932-1963
Founded in 1886 in New Brunswick, NJ World’s most comprehensive and broadly
based manufacturer of health care products
Family of 200 companies in 54 countries Selling products in more than 175
countries 108,300 employees
2002 Sales
Pharmaceutical
Consumer
Medical Devices& Diagnostics
Total Sales - $36.3 Billion
47%
18%
35%
Enduring Performance
70 consecutive year of sales increases 18 consecutive year of double-digit
earnings increases 40 consecutive years of dividend
increases
Sustaining Principles
Broadly based in human health care Decentralized Management Manage for the Long Term Foundation of Values – Our Credo
Our CredoWe 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.
Johnson & Johnson
written by Robert Wood Johnson in 1943 a shared system of values/our moral compass the “glue that holds us together” 36 languages - expresses our responsibilities to:
Our CustomersOur Customers
Our EmployeesOur Employees
Our Communities/EnvironmentOur Communities/Environment
Our StockholdersOur Stockholders
Our Credo
Our Credo &Sustainable Growth
Our Credo Responsibility
Sustainable Growth
Planet
ProfitsPeople
to customers/employees
to community& environment
to stockholders
Next Generation Goals
EnergyU sage
W aterU sage
R aw M ateria lU sage
N on-ProductO utput
ManufacturingCost
C ost R eduction
R egulatoryC om pliance
ISO 14001C ertification
Compliance
R isk R eduction
N ew Product/P rocess
Assessm ent
New Product/P rocess Development
Speed to M arket
C onservation /C om m unity
Activ ities
Public Image/Brand Equity
J&J R eputa tion
C om petitive AdvantageOutcome
Drivers
Dashboard
Next Generation Goals
EnergyU sage
W aterU sage
R aw M ateria lU sage
N on-ProductO utput
ManufacturingCost
C ost R eduction
R egulatoryC om pliance
ISO 14001C ertification
Compliance
R isk R eduction
N ew Product/P rocess
Assessm ent
New Product/P rocess Development
Speed to M arket
C onservation /C om m unity
Activ ities
Public Image/Brand Equity
J&J R eputa tion
C om petitive AdvantageOutcome
Drivers
Dashboard
Community Outreach Goal
Each manufacturing/R&D facility:Develop and implement a site-specific
community outreach planInitiate and maintain a community
forum (if it is a High Exposure facility)
Community Outreach Program
Annually assess community interest and concerns
Identify specific goals and objectives Prepare an action plan that includes timing
and resources (human/monetary) Obtain approval of site management to
execute the plan Document the plan and progress against the
goals and objectives
Community Forum
Conduct assessment to evaluate the type and level of concern found in the
community at large identify individuals or community groups that
actively participate in public policy decisions determine the type of forum that is most effective
for the community Select a setting that allows for two-way
dialogue between the community and J&J representatives
Conduct dialogue no less than once a year
2002 Status
98% Developed and began implementation of its
Community Outreach Plan
69% Initiated a Community Forum
Internal Recognition
J&J Environmental Award Program Performance Innovation (Business Value) Leadership (Community Outreach)
Ethicon Endo-Surgery
Partnership with Crayons to Computers in Cincinnati, Ohio Provide refurbished computers and other
office supplies to local needy schools Volunteer employees sort donated
products and deliver supplies Since 1998, donated 28 tons of supplies
J&J India
Converted and maintain a 6.5-acre public garden in Mumbai that attracts more than 3,000 visitors a day Utilizes the facility’s treated waste water Uses fertilizer that was converted from
organic plant waste from a Vermi process using earthworms
J&J Brazil
Provide opportunity and material for local underprivileged women in Sao Jose dos Campos to develop occupational skills Donate raw material remnants from
o.b. Tampons Taught the women a skill Produce dresses and bibs for needy
children
External Recognition
51 facilities in U.S. and Puerto Rico were accepted as charter members of the U.S. EPA National Environmental Performance Track Environmental Management System Sustained record of compliance Demonstration of continuous improvement Community outreach and engagement
External Recognition
Johnson & Johnson rated #1 for the fourth straight year in the Harris Interactive® Reputation Survey Emotional Appeal Products and Services Vision and Leadership Financial Performance Workplace Environment Social Responsibility
External Recognition
Dow Jones SAM 2000 Sustainability Rating - rated a sustainability leader above industry average
Innovest Eco Value 21 Rating “AAA” - highest rating