Few companies have the privilege of playing a role in the lives of billions of people each and every day. Fewer still are entrusted to touch the health and well-being of people throughout the world for generations. This is why we at Johnson & Johnson see our citizenship and sustainability as more than our social, environmental and economic performance. Rather, it is who we are and how we act. It is how we lead and participate in helping to solve the world’s major health care challenges, protecting the environment and conserving resources we are privileged to use, and conducting ourselves and our business in ways that contribute positively to society. I am honored to be just the seventh CEO in our long history and proud to continue to lead our legacy of commitment to sustainable ideals, born from Our Credo commitments and in line with our purpose of caring for the world, one person at a time. I am privileged to work alongside the talented and dedicated people of Johnson & Johnson who have long demonstrated the passion to do well and do good. We emphasize the importance of doing the right thing well, in all that we do, and of never being satisfied when there is more to be done to deliver real solutions—not just treatments—for people all over the world.
Providing accessible, affordable, high-quality health care to patients and consumers in a sustainable manner is one of society’s most difficult and important challenges. It is also the greatest hope for a better future for every individual, every family, every community and every country. Johnson & Johnson works at the very center of this challenge, across the broadest base of any company in global health care. Every day we are working to help people throughout the world live longer, healthier, happier lives. Our broad base, ranging from pharmaceuticals to devices and diagnostics to consumer products, gives us a unique perspective on the needs, wants and hop of people around the world.
We remain at the forefront of efforts to improve the lives of women and children, and continue to make progress toward our five-year comprehensive pledge to the United Nations’ Millennium Development Goals. We are among the largest corporate donors, having contributed nearly $1 billion in cash and products to 600 programs in 50countries in 2012. Our diverse partners are aligned with our mission of making life changing, long-term differences in human health.
We have partnered with 12 other companies to attack neglected tropical diseases in developing countries, have allowed generics companies to make and distribute copies of our HIV medicine PREZISTA® (darunavir) in sub-Saharan Africa, and have received an accelerated approval from the U.S. Food and Drug Administration for SIRTURO™ (bedaquiline), the first new tuberculosis therapy approved in 40 years.
We are also conscious of our impact on the environment. Across our businesses and our supply chain, we work to reduce complexities and consistently produce, market and sell high-quality products, while reducing inefficiency and waste. We strive to use materials that carry the least negative impact on the environment, sustainably design and market products, reduce our energy consumption, and hold supply chain partners and vendors to similar standards.
Investing in the health, safety and well-being of our employees is a priority for us, and we believe that by investing in them, we invest in the future of Johnson & Johnson. Some 30 years ago, Johnson & Johnson pioneered workplace health and wellness. Today, with the addition of the Human Performance Institute to our commercial business, our Energy for Performance in Life program is available to all employees and is part of the required training curriculum for all vice presidents. I am proud to be a champion of our culture of health.
TRENDS AND FOCUS
Johnson & Johnson has adapted over the decades to the world’s health care needs. The case for continuing to evolve our business is as compelling as ever. Today, more than half of our total revenues are from outside the U.S., and the broader emerging markets are approaching a quarter of our sales. The global health care environment is changing dramatically. We see it in the broad demographic changes associated with an aging world, the need for health care access among developing markets and health care funding challenges faced by almost every government. We are seeing rapid advances in health care technologies, higher levels of regulatory vigilance across the globe, and consumers increasingly defining their paths to health. These currents and countercurrents bring tremendous opportunity and potential risks to health care companies.
All of this means that we simply have to reinvent the way we think about health care. We envision a world where creativity and innovation help remake our options. For a better tomorrow, we need more than just new medicines and new products. We need new philosophies, new approaches and a new mindset. Patient and consumer needs must be first and foremost in the discussion.
Increasingly, external stakeholders are asking companies such as ours to consider how far-reaching our control is with regard to sourcing of materials, working conditions at our suppliers’ facilities, whether we support diversity among our suppliers, and the degree to which our suppliers contribute to our environmental and social impacts. This presents a significant challenge for us given the number of suppliers with whom we work throughout the world but one we consider important to address.
These are among a variety of social, environmental and economic trends that shape the health care environment and impact our business. We seek broad partnerships and collaborations to bring forward innovative solutions to some of the world’s most pressing problems. Our previously completed sustainability materiality assessment identified those we can impact: increasing access and affordability of medicines; meeting needs in emerging markets; furthering human rights; managing our supply chain; ecologically designing products; managing environmental impacts; meeting global health needs; ensuring quality and safety of products (including anti-counterfeiting); supporting innovation, bioethics and responsible operation of clinical trials; and upholding business ethics and advancing health care compliance. We address these topics in a detailed report available in June.
PRIORITIES AND PROGRESS
Our Credo is the foundation of the character, ethics and values that defi ne Johnson & Johnson and sets forth our expectations in operating a responsible company. Our proven operating model continues to perform well, based on four strategic principles. We are broadly based in human health care, managed for the long term, decentralized in our management approach, and focused on our people and values.
For the near term, we have three key business priorities: continue to return our over-the-counter products to the shelves, build on the momentum in our Pharmaceutical business and continue to successfully integrate Synthes, Inc. into our family of companies. Longer term, we have sturdy pillars built on the foundation of Our Credo: building value through innovation, expanding global reach and local focus, executing with excellence and leading with purpose. These business drivers define what we will do, and our leadership imperatives—connect, shape, lead, deliver—inform how we do it. In short, we strive to do well and do good, delivering on the promise inherent in Our Credo.
Now in their second year of progress, our Healthy Future 2015 Goals are tracking well toward our targeted impacts, including: advancing global health; safeguarding the planet; encouraging sustainability among our suppliers and throughout our supply chain; fostering the most engaged, health-conscious and safe employees; advancing community wellness; measuring the impact of philanthropy; and fostering transparency and collaboration. Progress against these goals is presented in this report, along with successes and challenges resulting from our eff orts throughout the year. Johnson & Johnson has a long history of citizenship and sustainability. Our caring continues to be demonstrated by our efforts to improve human health and well-being, sustain our planet, support our communities, and remain a vibrant and trusted company that works every day to help people live longer, healthier, happier lives. We believe that human health is inextricably linked to a healthy environment, which is why we care so deeply about citizenship and sustainability. A healthier world is not just a happier world, but also one that has much greater economic opportunity and provides a foundation for individual and societal advancement.
All of us at Johnson & Johnson are privileged to put our purpose and passion to work every day, and to live our citizenship and sustainability in who we are and what we do to touch the lives of so many people throughout the world, now and for generations to come.
Sincerely,
Alex Gorsky
Chairman & Chief Executive Officer
Johnson & Johnson