Gsk Case Study Essays

Gsk Case Study Essays Gsk Case Study Essay Gsk Case Study Essay Kline Public Relations Plan Case Study GlaxoSmithKline Healthcare Reform Accessibility to Medicines: Public Relations Plan Case Study by Jill Leigh Bullock Leigh Publishing Publicist WVU Graduate Student To Learn More About Leigh Publishing Contact [emailprotected] com RI? FH www. leighpublishing. com Case Study Public Relations Plan provided in conjunction with the Perley Isaac Reed School of Journalism Integrated Marketing Communication Master’s Program at West Virginia University Integrated Marketing Communications 618: Public Relations Dr. Debra Davenport October 26, 2009 GlaxoSmithKline Public Relations Plan Case Study Page 1 GlaxoSmithKline Public Relations Plan Case Study Page 2 GlaxoSmithKline Public Relations Plan Case Study Page 3 GlaxoSmithKline Public Relations Plan Case Study Page 4 GlaxoSmithKline Public Relations Plan Case Study Page 5 GlaxoSmithKline Public Relations Plan Case Study Page 6 GlaxoSmithKline Public Relations Plan Case Study Page 7 GlaxoSmithKline Public Relations Plan Case Study Page 8 GlaxoSmithKline Public Relations Plan Case Study Page 9 GlaxoSmithKline Public Relations Plan Case Study Page 10 GlaxoSmithKline Public Relations Plan Case Study Page 11 GlaxoSmithKline Public Relations Plan Case Study Page 12 GlaxoSmithKline Public Relations Plan Case Study Page 13 GlaxoSmithKline Public Relations Plan Case Study Page 14 GlaxoSmithKline Public Relations Plan Case Study Page 15 GlaxoSmithKline Public Relations Plan Case Study Page 16 GlaxoSmithKline Public Relations Plan Case Study Page 17 GlaxoSmithKline Public Relations Plan Case Study Page 18 : GlaxoSmithKline Public Relations Plan Case Study Page 19 GlaxoSmithKline Public Relations Plan Case Study Page 20 GlaxoSmithKline Public Relations Plan Case Study Page 21 GlaxoSmithKline Public Relations Plan Case Study Page 22 GlaxoSmithKline Public Relations Plan Case Study Page 23 GlaxoSmithKline Public Relations Plan Case Study Page 24 GlaxoSmithKline Public Relations Plan Case Study Page 25 GlaxoSmithKline Public Relations Plan Case Study Page 26 GlaxoSmithKline Public Relations Plan Case Study Page 27 GlaxoSmithKline Public Relations Plan Case Study Page 28 GlaxoSmithKline Public Relations Plan Case Study Page 29 GlaxoSmithKline Public Relations Plan Case Study Page 30 GlaxoSmithKline Public Relations Plan Case Study Page 31 GlaxoSmithKline Public Relations Plan Case Study Page 32 GlaxoSmithKline Public Relations Plan Case Study Page 33 GlaxoSmithKline Public Relations Plan Case Study Page 34 GlaxoSmithKline Public Relations Plan Case Study Page 35 GlaxoSmithKline Public Relations Plan Case Study Page 36 GlaxoSmithKline Public Relations Plan Case Study Page 37 GlaxoSmithKline Public Relations Plan Case Study Page 38 GlaxoSmithKline Public Relations Plan Case Study Page 39 GlaxoSmithKline Public Relations Plan Case Study Page 40 GlaxoSmithKline Public Relations Plan Case Study Page 41 GlaxoSmithKline Public Relations Plan Case Study Page 42 GlaxoSmithKline Public Relations Plan Case Study Page 43 GlaxoSmithKline Public Relations Plan Case Study Page 44 GlaxoSmithKline Public Relations Plan Case Study Page 45 GlaxoSmithKline Public Relations Plan Case Study Page 46 GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 Page 47 Do more, feel better, live longer August 2009 Interim Update Updates to information in our 2008 Corporate Responsibility report published in March 2009 have been inserted into the relevant sections of the report and are highlighted in blue boxes in a similar style to this text. Our responsibility 980 Great West Road, Brentford, Middlesex, TW8 9GS, UK Tel: +44 (0)20 8047 5000 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 48 Corporate Responsibility Report 2008 Contents You have downloaded the full Corporate Responsibility Report 2008. Corporate responsibility at GSK Message from the CEO Our Corporate Responsibility Principles Business case for corporate responsibility Our key issues Corporate responsibility governance Stakeholder engagement About our reporting Benchmarking Assurance and internal audit Corporate responsibility data summary Resources and downloads 4 6 8 10 11 13 21 23 25 27 30 Research practices Emerging technologies – Cloning technology and stem cell research – Genetic research – Collaborative research on emerging technologies Animal research Human tissue research Medical governance Clinical research – Planning and approval – Informed consent – Post-trial treatment – Clinical trials in the developing world Public disclos ure of clinical research Patient safety – Patient safety governance framework – Collecting and reporting safety data – Performance 0DLQWDLQLQJ WKH FRQ? GHQWLDOLW of research participants Working with healthcare professionals Training and auditing Case studies QAs 104 105 106 107 108 109 115 116 117 118 119 120 121 122 125 126 127 132 133 134 135 138 140 Contribution to global health The cost of disease The role of vaccines Treating ill health Disease awareness and prevention Investing in RD RQWULEXWLQJ WR VFLHQWL? F XQGHUVWDQGLQJ 3UHSDULQJ IRU SDQGHPLF AX QAs 31 32 33 35 39 44 46 48 51 Access to medicines Our approach and contribution The role of others Developing countries – Research and development – Public-Private partnerships – Product registrations – Preferential pricing – Pricing in middle-income countries Developed countries Pricing our medicines Intellectual property The future Response to assurance recommendations Case studies QAs 53 55 57 59 60 71 73 75 79 86 88 89 93 96 98 101 Ethical conduct Code of Conduct and business ethics Marketing ethics – Relationships with healthcare professionals – Direct-to-consumer advertising Training and awareness – Leading by example – Performance and plans Monitoring and compliance Case studies QAs 42 143 145 147 151 154 156 157 159 163 165 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Corporate Responsibility Report 2008 Contents Page 49 Supply chain Responsibility and our supply chain – Human rights clause – Choosing suppliers – Monitoring and engagement – Supplier diversity – Fair treatment of suppliers Maintaining quality Security of supply Counterfeiting Case studies QAs 67 168 170 171 172 176 178 179 180 181 184 185 Our people Our culture and behaviours Restructuring Consultation Communication Diversity and inclusion Training and development Reward and recognition Health, safety and wellbeing – Health and safety management – Hazard assessment and communication – Safety programmes – Health and wellbeing programmes – Health and business continuity – Training and awareness – Performance Case studies QAs 255 57 258 259 260 263 267 269 270 271 273 275 278 280 281 282 288 290 Environmental sustainability Plan for excellence – Targets – The journey to sustainability Man aging EHS and sustainability – EHSS vision and policy – Training and awareness – Audits and compliance – Reward and recognition – Management of EHSS Environmental fundamentals – Wastewater – Hazardous and non-hazardous waste – Contaminated land – Emissions to air – EHSS in business processes – Supplier performance Sustainability – Materials HI? FLHQF – Climate change and energy – Water use – Product stewardship – Packaging Open and transparent relations – Stakeholder engagement – EHSS reporting – Assurance – GSK response to assurance QAs Environmental metrics 186 187 188 190 192 193 194 196 198 199 200 201 204 210 211 216 217 218 219 221 230 233 240 241 242 243 244 247 249 250 Human rights Employees Suppliers Communities Society Activities in sensitive countries 292 293 294 295 296 297 Public policy and patient advocacy Our approach to external affairs Public policy activity in 2008 – Advocacy on healthcare and disease prevention – Advocacy on research practices – Advocacy on patient safety – Advocacy on intellectual property – Advocacy on pricing and competitiveness Political contributions and lobbying expenditures Patient advocacy – Transparency – Understanding patients – Developing industry standards – Advocacy in 2008 QAs 298 299 301 302 304 306 307 309 310 312 314 315 316 317 318 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Corporate Responsibility Report 2008 Contents Page 50 Our work with communities Community investment Preventing disease – Eliminating lymphatic ? ODULDVLV – Personal Hygiene And Sanitation Education (PHASE) – Local programmes Building community capacity – Combating HIV/AIDS – Positive Action – Combating malaria – Africa Malaria Partnership – Local programmes – Responding to disasters around the world Supporting science education Our plans 319 321 323 324 325 326 327 328 329 330 332 333 335 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 51 Home Responsibility Corporate responsibility at GSK Corporate Responsibility Report 2008 Corporate responsibility at GSK Corporate responsibility (CR) is central to our business. We aim to operate in a way that reflects our values, to understand and respond to stakeholder views and to connect business decisions to ethical, social and environmental concerns. We seek to minimise the negative impacts and maximise the benefits of our business. Read a message from our CEO on the importance of CR at GSK. Every GSK employee is responsible for upholding our values and maintaining high ethical standards. Our Corporate Responsibility Principles define our approach to our key responsibility issues and provide guidance for employees on the standards to which the company is committed. We communicate with our people to underline our commitment to corporate responsibility and to update them on our progress. We also engage with our external stakeholders  ± including healthcare professionals, investors, patients, nongovernmental organisations, local communities and suppliers  ± to identify key issues and to gain feedback on our approach to corporate responsibility. Our business makes a valuable contribution to society through the medicines and vaccines we produce which improve people ¶s lives. However, we know that the research and development, manufacture and sale of medicines and vaccines raise ethical issues. Consequently, the pharmaceutical industry is subject to a high level of public scrutiny and sometimes critical media coverage. We aim for the highest ethical standards and we regularly report on our progress. This is essential for maintaining good relationships with our stakeholders, achieving the goals of our strategic priorities and ensuring the future sustainability of our business. It also supports our inclusion in key sustainability indices such as the FTSE4Good index and Dow Jones Sustainability Index. See how we scored in industry and investor benchmarks. Our Corporate Responsibility Principles define our approach to our key responsibility issues and provide guidance for employees on the standards to which the company is committed. Read about our management structures and processes for advancing progress on our CR Principles. Back to top Page 3 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 52 Home Responsibility Corporate responsibility at GSK Message from the CEO Corporate Responsibility Report 2008 Message from the CEO A new mindset Welcome to GSK ¶s Corporate Responsibility report which provides information on our activity and performance during 2008. We want to be a company that is forward looking, innovative and willing to try new approaches and partnerships; a company that is constantly looking for new and sustainable ways to increase access to our medicines and vaccines, especially for those least able to pay. We have made significant progress in helping to address global healthcare challenges. For example, over the past ten years we have donated over one billion tablets to the programme to eliminate lymphatic filariasis, a debilitating tropical disease and we are doubling manufacturing capacity to 600 million tablets a year. Our commitment to preferential pricing means we offer our AIDS and malaria medicines at not-for-profit prices in the world ¶s poorest countries. We also supply our vaccines to organisations such as GAVI and UNICEF at preferential prices, typically 10-20 per cent of the prices in developed countries. But for every success story, there are examples of where we could do more. As I review our performance, I believe it is time for a new mindset in our industry and a new contract with society. In these difficult economic times it is a challenge to think beyond short-term performance. But we must look to the long-term and not be distracted by our own economic problems when the needs of the developing world remain just as pressing. To begin with, there are four areas where we can show we are going to do things differently. First, we are exploring a more flexible approach to intellectual property rights to incentivise much needed research into medicines for 16 neglected tropical diseases where there is a severe lack of research. One option is a Least Developed Country (LDC)  µpatent pool ¶ in to which we would put our relevant small molecule compounds, process patents or other knowledge, and which would allow others access to develop and produce new products. Secondly, on 1 April 2009 we will reduce our prices for patented medicines in the 50 poorest countries in the world, the LDCs, so they are no higher than 25 per cent of the developed world price. Where possible we will reduce our prices further while ensuring we cover our manufacturing costs so this offer is sustainable. We also recognise the challenge in middle-income countries where there is a wide disparity in incomes and ability to pay. Here our intention is to work on a case-by-case basis recognising that there is no  µone size fits all ¶ solution to improving access to medicines in these countries. Thirdly, we will seek out partnerships and open the doors of our developing world research centre in Spain. We already know what partnership can achieve  ± for example, we successfully trialled a malaria vaccine candidate in partnership with the PATH ¶s Malaria Vaccine Initiative and the Bill and Melinda Gates Foundation. If we extend this approach the benefits will be huge. Fourthly, working with partners such as NGOs, we will reinvest 20 per cent of the profit we make from selling medicines in LDCs to support the strengthening of healthcare infrastructure in these countries. Our sales in LDCs are relatively low so this profit is limited; initially this funding will amount to ? 1 to ? 2 million annually. But by our action we hope to send a signal to all multi-national companies operating in LDCs to join us and make a meaningful change in these countries. In all developing countries we must transform GSK into a local company addressing local healthcare needs. Our Brazilian business is leading the way  ± supplying vaccines and sharing technical expertise to help build local capacity. We will not forget that significant healthcare challenges exist in developed countries too. We must work in partnership to create a virtuous circle, where industry gets rewarded for demonstrating genuine innovation, Page 4 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 53 healthcare payers get value-for-money because our medicines save them from high-cost healthcare interventions, and more patients get the medicines they need. Of course, access to medicines is not the only issue that counts. We want GSK to be recognised around the world by all stakeholders as a company with the highest ethical standards. We made good progress in 2008. We committed to stopping all corporate political contributions from 2009. Our decision to report more fully on our funding for medical education, atient groups and payments to physicians, will increase transparency and provide reassurance to stakeholders. Reflecting our commitment to animal welfare, we took a voluntary decision to end research in great apes, the highest-order of animals next to humans. It is time for a new mindset in our industry and a new contract with society. With the support of other pharmaceutical companies and partners outside the industry, I believe significant improvements in human health can really be achieved. Andrew Witty, CEO Back to top Page 5 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. df GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 54 Home Responsibility Corporate responsibility at GSK Our Corporate Responsibility Principles Corporate Responsibility Report 2008 Our Corporate Responsibility Principles Our Corporate Responsibility Principles identify our key responsibility issues and provide guidance for employees on the standards to which GSK is committed: Employment practices We will treat our employees with respect and dignity, encourage diversity and ensure fair treatment through all phases of employment. We will provide a safe and healthy working environment, support employees to perform to their full potential and take responsibility for the performance and reputation of the business. Read more about our employment practices. Human rights We are committed to upholding the UN Universal Declaration of Human Rights, the OECD guidelines for Multi-National Enterprises and the core labour standards set out by the International Labour Organization. We expect the same standards of our suppliers, contractors and business partners working on GSK ¶s behalf. Read more about our approach to human rights. Access to medicines We will continue to research and develop medicines to treat diseases of the developing world. We will find sustainable ways to improve access to medicines for disadvantaged people, and will seek partnerships to support this activity. Read about our approach in Access to medicines. Leadership and advocacy We will establish our own challenging standards in corporate responsibility, appropriate to the complexities and specific needs of our business, building on external guidelines and experience. We will share best practice and seek to influence others, while remaining competitive in order to sustain our business. Community investment We will make a positive contribution to the communities in which we operate, and will invest in health and education programmes and partnerships that aim to bring sustainable improvements to under-served people in the developed and developing world. Read about our work with communities. Engagement with stakeholders We want to understand the concerns of those with an interest in corporate responsibility issues. We will engage with a range of stakeholders and will communicate openly about how we are addressing CR issues, in ways that aim to meet the needs of different groups while allowing us to pursue legitimate business goals. Read about our stakeholder engagement. Standards of ethical conduct We expect employees to meet high ethical standards in all aspects of our business, by conducting our activities with honesty and integrity, adhering to our CR principles, and complying with applicable laws and regulations. Read about ethical conduct. Research and innovation In undertaking our research and in innovating: We may explore and apply new technologies and will constructively engage stakeholders on any concerns that may arise. We will ensure that our products are subject to rigorous scientific evaluation and testing for safety, effectiveness and quality We will comply with or exceed all regulations and legal standards applicable to the research and development of our products Read more about our research practices. Products and customers We will promote our products in line with high ethical, medical and scientific standards and will comply with all applicable laws and regulations. Read more about our marketing ethics. Page 6 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 55 Caring for the environment We will operate in an environmentally responsible manner through systematic management of our environmental impacts, measurement of our performance and setting challenging performance targets. We will improve the efficiency of all our activities to minimise material and energy use and waste generated. We aim to find opportunities to use renewable materials and to recycle our waste. Read more about environmental sustainability. Back to top Page 7 of 336 Source: Retrieved October 24, 2009, from www. gsk. om/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 56 Home Responsibility Corporate responsibility at GSK Business case for corporate responsibility Corporate Responsibility Report 2008 Business case for corporate responsibility Demonstrating that our practices are responsible and ethical benefits the business in the following ways: An improved reputation and greater trust in GSK products The ability to attract, retain and motivate talented people. This is becoming increasingly important as fewer young people in our major markets choose science-based careers Constructive engagement with stakeholders. This helps us to prevent avoidable conflict and identify innovative approaches that benefit GSK and wider society Greater access to markets and the ability to influence healthcare policy through improved relationships with regulators and healthcare payers. Helping governments to increase access to medicines and resolve healthcare challenges is particularly important Greater ability to anticipate and prepare for legislative changes and maintain a competitive advantage Helping to maintain support for the intellectual property system by finding innovative ways to increase access to medicines Reduced costs and more efficient use of resources through increased environmental efficiency Our business strategy Our business performance and development are driven by three strategic priorities which are supported by our corporate responsibility activities. We believe that corporate responsibility should be managed as part of our overall business strategy and through our day-to-day business operations. For this reason we do not have a separate corporate responsibility strategy at GSK. Corporate responsibility and our strategic priorities We have established strategic priorities which we believe will increase growth, reduce risk and improve our long-term financial performance: Grow a diversified global business Deliver more products of value Simplify the operating model We believe these priorities will enable us to navigate the coming years more successfully and retain our leading-edge position as a company able to meet patients ¶ and healthcare providers ¶ needs into the future. Running our business in a responsible way is fundamental to our success and inseparable from our strategic priorities. We want to work in way that reflects our values, seeks to understand and respond to stakeholder views and connects our business decisions to ethical, social and environmental concerns. In this way we aim to minimise the negative impacts and maximise the positive benefits of our business. Page 8 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 57 Back to top Page 9 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. df GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 58 Home Responsibility Corporate responsibility at GSK Our key issues Corporate Responsibility Report 2008 Our key issues Our CR reporting is focused on the most material (significant and relevant) issues for our business. The following factors influence our materiality assessment: Our business strategy Our risk management processes. Stakeholder interest, including investor feedback Changes in our business and operations, for example the types of product we produce or the locations in which we operate. Existing and proposed legislation Public opinion and press coverage We have identified the following responsibility issues as most material to GSK: The contribution our core business makes to health through research, development, manufacture and the sale of medicines and vaccines Increasing access to medicines in under-served communities Ethical standards in research and development, and sales and marketing Our environmental impact, particularly climate change Back to top Page 10 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. df GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 59 Home Responsibility Corporate responsibility at GSK Corporate responsibility governance Corporate Responsibility Report 2008 Corporate responsibility governance Our Corporate Responsibility Committee (CRC) of Non-Executive Directors provides high-level guidance on our approach to CR. The CEO and members of the Corporate Executive Team (CET) are accountable for responsible management of the business and participate in CRC meetings. During 2008 the Committee members were Sir Christopher Gent (Chair), Dr Stephanie Burns, Dr Daniel Podolsky, Sir Ian Prosser and Tom de Swaan. The Committee meets three times a year to review our policies and progress on our CR Principles. The Committee reviews our performance against five of our CR Principles annually. These are access to medicines, standards of ethical conduct, research and innovation, employment practices and community investment. Other Principles are discussed at least once every two years. The Committee reports its findings to the Board. Management of corporate responsibility During 2008 the CRC reviewed GSK ¶s activity in a number of areas, including access to medicines, community partnerships, humanitarian donations, employee volunteering, sales and marketing practices, disclosure of funding of medical education and patient advocacy groups, product safety and communication of clinical trial results, RD on diseases of the developing world, use of animals in research, outsourcing of research, research in emerging markets, reduction of employee numbers through restructuring, employee consultation requirements and employment litigation n the US. The Committee also reviews and signs off the annual performance information published on this website and our annual CR highlights document. To augment GSKs engagement with stakeholder opinion, in March 2009 Sophia Tickell was appointed as an external advisor to the Corporate Responsibility Committee. Sophia is an Executive Director and member of the Leadership team at SustainAbility, a think tank and consultancy that seeks to enhance business engagement with social and environmental concerns. Sophia has extensive experience of constructively challenging companies to increase their understanding of societal expectations and to develop strategies to meet them. She has gained this experience in her work as a journalist in Latin America, through her work in Page 11 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 60 nternational development and her advocacy work at Oxfam and, most recently, through her direction of the investor-led Pharma Futures dialogues which aim to better align societal and shareholder value. Sophia will attend the meetings of the Corporate Responsibility Committee and advise the company in this capacity. Read more about the Corporate Responsibility Committee. Corporate responsibility risks Our Risk Oversight and Compliance Council (ROCC) coordinates the management of significant business risks. The ROCC also considers reputational and corporate responsibility risks. Read more about risk management and compliance at GSK. Management structure CR covers a very diverse range of issues at GSK so we believe it should be managed within our business functions, where the relevant subject experts work. We have a cross-functional team made up of representatives from key business areas which oversees development, implementation and communication of policies, including any responsibility elements, across GSK. The members are senior managers with direct access to our Corporate Executive Team. We have a small central CR team to coordinate policy development and reporting specifically with respect to CR, and to communicate with socially responsible investors and other stakeholders. Measuring performance We have established metrics and key performance indicators to track our performance on responsibility issues. Back to top Page 12 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 61 Home Responsibility Corporate responsibility at GSK Stakeholder engagement Corporate Responsibility Report 2008 Stakeholder engagement Stakeholder engagement and dialogue enables us to connect with the views and opinions of the societies in which we operate. It helps us identify important issues and shape our responses in the interest of our shareholders and wider society. Regular engagement means we are better informed of emerging and current issues and changing societal expectations. It provides an opportunity for us to voice our approach to responsibility issues, obtain important feedback and build trust. Most of this discussion takes place in the normal course of business. For example, our scientists regularly meet academics, researchers and other pharmaceutical companies through advisory boards and medical conferences. Here we describe how we engage with our stakeholders, give examples of our engagement in 2008 by stakeholder group and provide information on how we are responding to the feedback we receive. You will find further examples of our engagement with stakeholders throughout this website. Back to top Page 13 of 336 Source: Retrieved October 24, 2009, from www. sk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 62 Home Responsibility Corporate responsibility at GSK Stakeholder engagement How we engage Corporate Responsibility Report 2008 How we engage Healthcare professionals We engage with healthcare professionals in many ways, including through our sale s representatives and when running clinical trials. Read about our research and ethics policies governing relationships with healthcare professionals. Patients GSK researchers and scientists meet patients as part of our  µFocus on the Patient ¶ initiative. This engagement influences our understanding of diseases and our research priorities, read more in our case study. We also support the work of patient advocacy groups and we conduct market research via third parties to understand patient needs. Governments and regulators We engage in debate on legislation and seek to influence policy decisions that affect GSK. We also engage with governments on responsibility-related issues. Healthcare providers We engage with healthcare providers through our government affairs, marketing and access to medicines activities. Investors We meet regularly with investors and socially responsible investors. Read more about our investor engagement activities. Employees We seek feedback from our employees through regular surveys. We also consult employees on changes that affect them and discuss business developments through regional and national consultation forums. Local communities Our interactions with local communities are managed by individual GSK sites. Read more about our financial and practical support for communities . Multilateral agencies We engage with multilateral agencies through our access and public health initiatives. Non-governmental organisations (NGOs) We engage with international and local NGOs through our access , education and public health programmes and as part of our public policy work. We also engage regularly with animal welfare organisations. Read more about animal research at GSK . Scientific community and academic partnerships It is important for GSK to be part of scientific debates and we are involved in a number of academic collaborations. Suppliers We hold global and regional supplier review meetings where senior GSK managers address and interact with suppliers on key issues. Read more about our engagement with suppliers. Peer companies We engage with peer companies through membership of pharmaceutical industry organisations, for example Page 14 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study g g p p g p p EFPIA, PhRMA, and IFPMA, and through collaboration on specific projects. Back to top Appendix A: GSK Corporate Responsibility Report, 2008 (cont. Page 63 y g p Page 15 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 64 Home Responsibility Corporate responsibility at GSK Stakeholder engagement Engagement with employees Corporate Res ponsibility Report 2008 Engagement with employees It is important that our employees know about our commitment to corporate responsibility, understand their responsibilities and keep up-to-date with our progress. Read about our approach to embedding an ethical culture at GSK. We keep employees informed about corporate responsibility through our myGSK intranet site and Spirit, our internal quarterly magazine, which feature articles on responsibility issues. Read about how we engage with employees on environment, health and safety issues. In 2008 at least nine articles on responsibility issues were published in Spirit. These included articles on environmental sustainability, community investments and our efforts to combat diseases of the developing world such as lymphatic filariasis. This year we published four editions of Spirit, distributing 33,500 copies of each edition internally. Additionally, during the year, an online version of the magazine was introduced on the intranet, offering access to more employees. We distributed our 2007 Corporate Responsibility Review with Spirit magazine and directly to the Corporate Executive Team and GSK Board, senior managers, site directors and all communications staff. News articles and icons on our intranet site were used to guide users directly to the Review. This year we have published a shorter CR Highlights document to direct people to this website. We are raising awareness of this online CR Report by publicising it on our website and the company intranet. Back to top Page 16 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 65 Home Responsibility Corporate responsibility at GSK Stakeholder engagement Engagement with investors Corporate Responsibility Report 2008 Engagement with investors We held 20 meetings with investors in 2008 to discuss responsibility issues. These comprised one-to-one meetings and teleconferences, and a socially responsible investment (SRI) roadshow. Investor questions Some of the questions raised by investors about responsibility issues in 2008 concerned: Access to medicines Clinical trial results disclosure Clinical trials in the developing world Patient safety Our operations in sensitive countries. Read more about GSK ¶s position on human rights Sales and marketing practices. Read more about marketing ethics at GSK Stem cell research Animal research including genetic engineering of animals Environmental issues including climate change and water pollution Political contributions We also disclose information on our greenhouse gas emissions through the Carbon Disclosure Project (CDP), an investor collaboration. Back to top Page 17 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. Page 66 Home Responsibility Corporate responsibility at GSK Stakeholder engagement Engagement with opinion leaders Corporate Responsibility Report 2008 Engagement with opinion leaders Ipsos MORI survey GSK participated in the Ipsos MORI survey which rates companies according to CR experts ¶ and NGOs ¶ perception of their CR performance. In 2008 nearly three-quarters of the 41 people surveyed thought that GSK too k its responsibilities seriously, maintaining the significant improvement made in 2007 compared with 2006. GSK was the seventh-highest rated company on this question (out of 26 companies). Three of 41 respondents spontaneously mentioned GSK as a leader in corporate responsibility; there were no spontaneous mentions of GSK last year. Back to top Page 18 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 67 Home Responsibility Corperate Responsibility at GSK Stakeholder engagement Engagement on access to medicines Corporate Responsibility Report 2008 Engagement on access to medicines Engagement on issues relating to access to medicines during 2008 is described in the Access to medicines section. As well as the engagement during 2008, GSK conducted three formal stakeholder discussions during 2007 to get feedback on our approach to different issues relating to access to medicines . We engaged with influential individuals and organisations with expertise in this area, including NGOs, government representatives, journalists, academics, investors and industry organisations. The topics covered were: Increasing access to HIV/AIDS medicines in developing countries Expanding RD into diseases of the developing world Increasing access to medicines in middle-income countries While we do not necessarily agree with all the comments made by participants, these sessions provided valuable feedback on our approach. Feedback on GSK ¶s approach in developing countries Participants felt that GSK has a moral responsibility to make its products accessible to poor people and that access to medicines is also important to GSK ¶s long-term business sustainability. It was felt that GSK ¶s approach to increasing access in developing countries (RD, preferential pricing and voluntary licensing) is appropriate, although participants would like GSK to invest more in RD into diseases of the developing world and do more to remove obstacles to the supply of generic medicines in these countries. Participants urged GSK to collaborate more with other pharmaceutical companies to address access issues in developing countries. It was felt that an industry-wide approach could help to address issues more quickly and effectively. Feedback on GSK ¶s approach in middle-income countries, Participants emphasised the importance of increasing access to medicines in middle -income countries (MICs) where there are still large numbers of very poor people. They encouraged GSK not to treat MICs as we would high-income countries. Participants felt that GSK does not have a clear strategy on access in MICs. They would like GSK to be clearer on its approach and objectives; in particular they would like to know if we regard MICs as significant commercial markets. It was pointed out that chronic diseases are a growing problem in MICs. It was suggested that GSK take a broad approach to access that encompasses all its medicines, not just those for high-profile diseases such as HIV/AIDS, malaria and TB. Read about the findings from these session in more detail. Back to top Page 19 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 68 Home Responsibility CR at GSK Stakeholder engagement Engagement on EHS Corporate Responsibility Report 2008 Engagement on EHSS We have an Environment, Health and Safety and Sustainability Stakeholder Panel in the UK which has provided independent feedback on our performance since 2005. The panel of 13 members represents customers, suppliers, regulators, public interest groups and investors. Two senior EHSS representatives from GSK regularly participate and other GSK managers attend discussions on specific topics. The panel is facilitated by The Environment Council, an independent charity. The panel met in April and October 2008 to debate a range of issues including: The broad issue of sustainability GSK ¶s position on nanotechnology Progress with climate change, process safety and green chemistry programmes GSK ¶s plans for complying with the EU ¶s Registration, Evaluation and Authorisation of Chemicals (REACH) legislation, mass efficiency improvement and pharmaceuticals in the environment We have been using the feedback from the stakeholder panel to inform our Environment, Health and Safety and Sustainability programme. The panel is also providing input to the new GSK Sustainability Council composed of senior managers from across GSK. Panel members provided feedback about the direction the panel should take and the effectiveness of the dialogue. They proposed that the panel should have a broader geographic reach. We have therefore added three new European panel members and are recruiting two more. The panel finds GSK honest and open in the discussions so they consider their participation to be valuable. However they commented that it takes GSK a long time to demonstrate changes that occur as a result of their suggestions and feedback. We value the feedback we receive from the panel and we will look for ways to speed up our response to their recommendations. Many of our sites also engage with stakeholders locally on EHSS issues, through activities such as open days, newsletters and community projects. Back to top Page 20 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 69 Home Responsibility Corporate responsibility at GSK About our reporting Corporate Responsibility Report 2008 About our reporting Welcome to our 2008 Corporate Responsibility Report. This year we have reported on our activities and performance online, providing easy access to information on key issues plus the ability to build a custom version of our 2008 Report. How we report We report our corporate responsibility activities and performance annually. This website contains a detailed account of our CR policies and performance in 2008. Selected performance information can also be downloaded, read more about how to use this website. We also publish Corporate Responsibility Highlights which provides an overview of our approach to CR. It is available in print. Data relate to worldwide operations for the calendar year 2008, except where stated. Environmental data are collected from all 79 of our Pharmaceutical, Consumer Healthcare and Nutritionals manufacturing sites, 14 of the 15 vaccines sites (one is not yet in operation), 22 of 31 Pharmaceutical and Consumer Healthcare RD sites including five whose environmental data are included with their host sites (nine are too small or too new to warrant collection of environmental data in 2008), the US and UK headquarters buildings and 15 smaller offices and distribution centres. Injury and illness data are collected from all 79 of our Pharmaceutical, Consumer Healthcare and Nutritionals manufacturing sites, 14 of the 15 vaccines sites (one is not yet in operation), 29 of 31 Pharmaceutical and Consumer Healthcare RD sites (two are considered too new to start reporting), the US and UK headquarters sites, 18 offices and sales groups with more than one million hours worked, and 46 of the smaller offices and distribution centres. Data in the environment and health and safety sections are independently assured by SGS. We use external guidelines to inform our reporting where relevant. We do not base our report on the Global Reporting Initiative (GRI) guidelines but we have produced a GRI index to show which elements of the guidelines are covered in the report and to aid comparison with other company reports. We have also joined the UN Global Compact and have provided an index to show how we are reporting in line with Global Compact expectations. Brandnames appearing in italics throughout this report are trademarks either owned by and/or licensed to GSK or associated companies. Contact We welcome your feedback on any of the information contained in this report. Please contact us at: Corporate Responsibility GlaxoSmithKline plc 980 Great West Road Brentford Middlesex TW8 9GS United Kingdom csr. [emailprotected] com Page 21 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 70 Page 22 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. df GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 71 Home Responsibility Corporate responsibility at GSK Benchmarking Corporate Responsibility Report 2008 Benchmarking GSK received the following ratings from benchmarking organisations: Indexes Organisation:Access to medicines index Access to Medicines Foundation and Innovest Strategic Value Advisers Rating: GSK was ranked highest in the index which assessed companies ¶ contribution to improving access to medicines. GSK was the clear overall leader and was top in five of the eight categories assessed. Organisation: Dow Jones Sustainability Index Rating: GSK continued as a member of the Dow Jones Sustainability Index, which covers the top ten per cent of sustainable companies in each sector. GSK was awarded Silver Class and Sector Mover distinctions, improving from Bronze Class awarded in 2007. Classes are awarded to companies relative to the sector leader. Organisation: FTSE4Good Rating: GSK was included in the FTSE4Good Index. Organisation: Global 100 Most Sustainable Corporations Innovest Strategic Value Advisors Rating: GSK was included in the 2009 list of the  µGlobal 100 Most Sustainable Corporations ¶. Companies are selected because they demonstrate capacity to address sector-specific environmental, social and governance risks and opportunities. Organisation: Business in the Community CommunityMark Rating: GSK was one of 21 companies and the only manufacturing company to be awarded the new CommunityMark, following independent assessment, for outstanding community investment. The Mark is endorsed by the UK government and voluntary sector leaders and was given for our work at local and national level in the UK as well as for our larger international programmes. Organisation: Business in the Community Environment Index Rating: GSK maintained its position in the Platinum League of the 2007 index which assessed 155 companies. Other investor ratings Organisation: Ceres Rating: GSK was ranked 13th overall and 2nd in the pharmaceutical sector in Ceres ¶s climate change governance ranking of 63 of the world ¶s largest companies. Page 23 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 72 Organisation: Storebrand Rating: GSK achieved Best in Class status for its leading environmental and social performance. Storebrand assesses indicators including corporate governance, marketing ethics, standards for business partners, occupational health and safety, environmental risk management and labour relations. Reporting Organisation: Association of Chartered Certified Accountants (ACCA) Rating: GSK Corporate Responsibility Report 2007 was shortlisted for an ACCA award, which recognises transparency and credibility in reporting. Organisation: PwC Building Public Trust Award Rating: GSK was one of three companies short-listed for the  µPeople Reporting ¶ award, which assesses the extent to which publicly available information enables stakeholders. Organisation: SustainAbility Global Reporters benchmark Rating: GSK ¶s 2007 report scored 66 per cent versus 54 per cent for the 2006 report, with improvements in every category and particularly accessibility and assurance. Back to top Page 24 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 73 Home Responsibility Corporate responsibility at GSK Assurance and internal audit Corporate Responsibility Report 2008 Assurance and internal audit External assurance of EHS activities The information we provide about environment, health and safety activities at GSK has been externally assured by independent, third-party assurers. Our reporting on environment, health and safety performance is assured by SGS, an external assurer. The assurance process includes verification of key environment, health and safety data through site visits and telephone calls to EHS professionals and review of systems and processes for collecting, collating, analysing and interpreting the data. Read the EHS assurance statement by SGS. External assurance of access to medicines activities In our 2007 CR Report, information on access to medicines was externally assured. Read how we are responding to the recommendations made by the assurers on our access to medicines activity and reporting. This year we did not conduct assurance on the CR report other than that described above for the EHS section. We plan to conduct assurance of one new section of the report every other year, so a section of the 2009 report will be subject to external assurance. Internal audit and assurance GSK has developed an assurance programme that provides a holistic assessment of internal control processes, risk management and audit within the company. A key part of this programme is an extensive and independent internal audit schedule, delivered by four specialist audit groups. These audits assess compliance with laws, regulations and company standards, and evaluate the effectiveness of the risk management process in identifying, managing and mitigating the more significant risks facing GSK. Global Internal Audit (GIA) is responsible for evaluating the financial and operational controls hat ensure financial reporting integrity and safeguard assets from losses, including fraud Corporate Environment, Health, Safety and Sustainability (CEHSS) is responsible for assessing the management of health and safety risks and environmental impacts Global Manufacturing Supply Audit and Risk Management (ARM) assesses the quality and supply risks relating to manufacturing and supply chain proces ses for GSK commercial products Global Quality and Compliance (GQC) is responsible for assessing risks relating to medicines, vaccines and medical devices throughout the product development process, including the manufacture of clinical trial material The central assurance function is responsible for developing the assurance programme, and for ensuring that the GSK audit groups work together in the most efficient and effective way to deliver the audit schedule. Global Internal Audit audits the other three audit groups for alignment with the Institute of Internal Auditors ¶ International Standards for the Professional Practice of Internal Auditing. The CEHSS, ARM and GCQ audit groups have additional responsibilities for the auditing of contract manufacturers and key suppliers to GSK. GSK employs approximately 150 full-time internal auditors across the four audit groups. Audits range in duration from two man-weeks for simple activities where the scope is limited, to several months for an audit involving complex or highly technical processes. The audit teams may also be supplemented by external Page 25 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study g p g y p y pp y experts with specific technical skills, or by the use of guest auditors from within the business. Appendix A: GSK Corporate Responsibility Report, 2008 (cont. ) Page 74 Audits are conducted based on the level of risk. They regularly assess the level of internal control for a number of responsibility areas, including: Animal research Business continuity planning Community investment Conduct of clinical trials Employment practices Environmental factors Ethical conduct Financial processes Health and safety Information technology Intellectual property Interactions with patient groups Manufacturing and supply chain standards Patient safety Sales and marketing practices When issues or control deficiencies are identified, the audit groups recommend processes for improvement. GSK managers develop corrective action plans to eliminate the causes of non-compliance and gaps in internal controls. The audit groups track these plans to completion and report results to senior management and the Audit Committee. Each audit group reports to the Audit Committee as part of the assurance programme, and provides an assessment of whether adequate controls are in place to manage significant risks. Any significant audit results are also reported to the Audit Committee at the earliest opportunity. Back to top Page 26 of 336 Source: Retrieved October 24, 2009, from www. gsk. com/responsibility/downloads/GSK-CR-2008-full. pdf GlaxoSmithKline Public Relations Plan Case Study Appendix A: GSK Corporate Responsibility Report, 2008 (cont. )