Social Responsibility and

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PROGRESS THROUGH INNOVATION
Social Responsibility and Sustainable Development
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Agenda

• Johnson Johnson
• Corporate Social Responsibility
• Our approach to CSR
• What are the results?

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Worlds Most Comprehensive and Broadly Based
Health Care Company
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Johnson Johnson worldwide Sales per segment
2006
Pharmaceuticals 23
44.
38
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Consumer products 10
Medical Devices Diagnostics 20
Total sales 53.3 bln dollar
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The Foundation Our Credo
People
Product
Patients, doctors
Employees
Commitment
Society
Shareholders
Planet
Profit
The first text 1943
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• Strategic Principles
• Broadly based in Human Health Care
• Decentralized Management
• Manage for the Long Term
• Ethical Principles

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Agenda

• Johnson Johnson
• Corporate Social Responsibility
• Our approach to CSR
• What are the results?

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Why Corporate Social Responsibility?

• Ethical moral obligation
• It exemplifies and illustrates the way you do
  business trustworthy, concerned, oriented to
  people, solution-driven,
• It creates relationships
• It builds reputation, both internally and
  externally

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Agenda

• Johnson Johnson
• Corporate Social Responsibility
• Our approach to CSR
• What are the results?

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The value chain

• Core interests
• Cost reduction
• Time reduction
• Quality assurance

Shareholders - inidividuals - pension funds -
institutional investors - business owners
Natural supplies
Distribution Center
End user
Material supplies
Plant
Production partners
Transport
Wholesale
Retail
External Controls - Customs - Inspections -
Quality/ Safety control -
Marketing Partners - co-marketeers - licencees -
wholesale - retail - ad agency -
Internal - Employees - Unions
Manufacturing Suppliers - material suppliers -
banks - transport firms - co-manufacturers
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The values chain

• Core interests
• General interest
• Ethics
• Environment
• Social concerns

Supplies - environmental organisations - human
rights - media
Manufacturing - Environmental pollution - Social
organisations - Diversity organisations -
corporate watchers - neighbours - NIMBY
Natural supplies
Distribution Center
End user
Material supplies
Plant
Production partners
Transport
Wholesale
Retail
Moral judges - profits - triple hat - media
Consumer organisations - safety - healthy -
ethical - desirable
Social debate - equal treatment of employees -
family opportunities - social contributions -
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Values to Value (V2V) draft model
STOCK HOLDER VALUE
CUSTOMER SUPPLIER VALUE
COMMUNITY SOCIETY VALUE
EMPLOYEE FAMILY VALUE

11. Licence to operate 12. Community
investment 13. Stakeholder engagement 14.
Transparency 15. Environmental footprint 16.
Jobs 17. Human rights 18. Therapeutic Footprint
1. Product quality safety 2. Customer
satisfaction 3. Customer service 4. Product
stewardship 5. Sustainable supplier partner
relationships
6. Employee satisfaction 7. Preferred employer 8.
Diversity 9. Safe healthy work conditions 10.
Ethical conduct/ behaviour
19. Financial results 20. Stock value 21. Market
position 22. Product innovation 23. Intellectual
assets 24. Confidence
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The Sustainability Report
Available at janssenpharmaceutica.com
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Stakeholder dialogue

• An initiative in conjunction with the Koning
  Boudewijnstichting
• A one-day discussion on the expectations
• Trade Unions
• WWF
• Local authorities
• Family of employees
• Local residents

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The projects
The business
Employees
The environment
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Example Energy week
A week of sensitisation - exhibition by
department and suppliers - game for children -
brochure with explanation - counsel at work,
at home Improvement programs (purchasing,
lighting, insulation, ) Unannounced controls
(computers, printers, )
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Tipu Sultan Palace Fungi, lichen and
subterranean termites
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Hampi (World Heritage Site UNESCO) Fungi,
lichen and algae

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Global HIV access program
3 of patients on ARVs in Low-HDI countries are
highly treatment experienced
Strategic focus on unmet medical need
90 of HIV Infections occur in the developing
world
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Status and lessons learned

• STATUS
• A license and distribution agreement for Sub
  Saharan Africa and the Least Developed Countries
  outside of Africa has been signed in April 2007
  with Aspen Pharmacare Ltd (South Africa),
  including the option for technology transfer with
  respect to manufacturing.
• Filing for registration done in 19 SSA countries
  30 additional low and middle income countries
  in Latin America, Asia and Middle East.
• LESSONS LEARNED
• Regulatory and logistical hurdles.
• Need for medical training and awareness programs.
• Medication is only one element of the global
  approach.

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Agenda

• Johnson Johnson
• Corporate Social Responsibility
• Our approach to CSR
• What are the results?

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PHARMACEUTICALS Score
1 Johnson Johnson 7.64
2 Novartis 6.99
3 Abbott Laboratories 6.66
4 Amgen 6.62
5 GlaxoSmithKline 6.58
6 Eli Lilly 6.54
7 Roche Group 6.36
8 AstraZeneca 5.97
9 Wyeth 5.85
10 Pfizer 5.57
11 Sanofi-Aventis 5.68
12 BMS 5.23
13 Merck 5.07
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BEST REPUTATION 2006 2005 2004 2003 2002 2001 2000 1999
Johnson Johnson 2 1 1 1 1 1 1 1
Coca-Cola 5 2 3 3 3 3 - 2
Google 4 3 - - - - - -
UPS 7 4 5 2 4 - - -
3M 3 5 2 8 10 5 - -
Sony 8 6 7 13 11 6 - -
Microsoft 1 7 6 5 13 2 9 -
General Mills 6 8 9 6 5 - - -
Fedex - 9 8 7 12 8 - -
Intel - 10 11 19 - - 5 4
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• THANK YOU

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Example -- Next Generation Goals
Outcome
Competitive Advantage
Drivers
Cost Reduction
Risk Reduction
Time to Patient
JJ Reputation
Manufacturing
Compliance
New Product/
Public Image/
Dashboard
Cost
Process Development
Brand Equity
Energy
Regulatory
Design for
Conservation/
Usage
Compliance
Environment
Community
Activities
Water
ISO 14001/
Usage
MAARS MAP
Compliance
Raw Material
78 MM savings for every 1 reduction in 2005
Usage
Non-Product
Output
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Environment
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M/F Graduates in healthcare in Belgium
Source Onderwijs Vlaanderen - Universitair
Onderwijs - Aantal afgestudeerden 2000-2001 per
studiegebied
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 Beyond Compliance 

• Each Johnson Johnson Company will
• Meet all Johnson Johnson standards and
  regulatory requirements
• Optimize products, processes and facilities by
  designing in quality, safety, environmental and
  engineering standards
• Proactively partner with regulators and
  anticipate changes in regulations, standards and
  public expectations
• Achieve operational excellence

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Dashboard to follow up
Womens Leadership Initiative Dashboard to follow
up
Focus Metric
Demonstrated improvement in representation of women at director level and above
Recruitment M/F hires at director positions and above
Advancement M/F promotions to director positions and above
Retention M/F regrettable losses at manager level and above
Development M/F participation on management training programs
Follow up Each 6 months in board
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Industry leadership

• Diversity programmes
• Mobility
• CSR
• Energy Efficiency
• Employee Safety
• Community involvement