Sourcing Standards

Our Responsibility Standards for Suppliers reflect our internal values and the expectations of external stakeholders, such as customers, regulators, investors and the public. Specifically, we seek suppliers that share our commitment to:

• Comply with applicable legal requirements
• Behave ethically and with integrity
• Integrate quality into business processes
• Respect human rights and employment rights
• Promote the safety, health and well-being of employees
• Embrace sustainability and operate in an environmentally responsible manner
• Implement management systems to maintain business continuity, performance and continuous improvement, and
• Disclose information associated with the supplier’s impact on the environment and social issues.

Since establishing our Standards for Responsible External Manufacturing in 2006, we have confirmed that 98 percent of our external manufacturers have been assessed against and are in conformance with our standards. As a practice, if we discover minor violations of our Standards, we will work with the supplier to identify areas and strategies to improve performance. If significant violations are identified that cannot be resolved, the relationship with the supplier may be terminated.

Although the scope and corresponding impact of our current Standards has increased significantly. The J&J Family of Companies are expected to complete a review process, exposure assessment and, if required, a performance assessment and/or audit of their suppliers. This process has been standardized across the J&J Family of Companies and will be implemented as part of a long term effort. Progress will be updated here periodically.