At Johnson & Johnson, we are guided and sustained by Our Credo, a set of core principles that serve as a moral compass for how we conduct business. These principles outline our obligations to our customers, our employees, the communities where we have a presence, and our shareholders; they also unite our 134,000 employees with a common value that the fundamental rights and dignity of all people must be respected.
Our commitment to respecting human rights across our value chain, from our own employees to our supply base to the communities in which we live and work, is articulated in our Statement on Human Rights. Other policies and statements that outline our Company’s positions and views relevant to human rights include:
- Code of Business Conduct
- Global Labor & Employment Guidelines
- Harassment-Free Workplace Policy
- Policy on Employment of Young Persons
- Responsibility Standards for Suppliers
- Human Trafficking Policy
- California Transparency in Supply Chains Act & UK Modern Slavery Act Statement
- Conducting Clinical Trials Statement
Every Johnson & Johnson employee is responsible for respecting human rights. Human Resources, Global Procurement, Law Department and Global Clinical Development Operations are all functions that share responsibility for defining and operationalizing our framework for managing our human rights practices. Implementation of these practices is overseen by our Enterprise Governance Council (EGC), a cross-functional team comprised of senior leaders who represent our three business segments and global enterprise functions with line of sight to environmental, social and governance issues. Quarterly EGC meetings provide a forum for updates on human rights topics, with a process for elevating to the Johnson & Johnson Executive Committee, our Board of Directors and Board Committees if warranted.
Our Own Operations
Our Global Labor & Employment Guidelines articulate our expectations for labor and employment practices at our sites, including preventing forced labor and child labor, and non-discrimination, among other matters. We continue to reinforce the expectations we have for compliance with our policies and guidelines across all of our operations, and proactively engage whenever we see behaviors that may be inconsistent with those policies and guidelines. We are currently evaluating different approaches to assessment at the enterprise-level of our own operations against the Global Labor & Employment Guidelines, and expect to develop such a plan in 2018.
Johnson & Johnson provides the freedom to establish a formal employee organization or representation structure across the enterprise and our operating companies; company sites can establish an employee representation structure or framework except where prohibited by law. Representation structures vary globally enterprise-wide. In 2017, 12.3%43 of our employees worldwide were covered by collective bargaining agreements.
Minimum notice periods, the management of reorganizations and layoffs, and the policies associated with such actions, vary depending on the location, nature, size and scale of the action and law. Local operating leaders endeavor to communicate significant plans of operational changes to employees and their representatives, where they are present, in a timely and practical manner in advance of actions being taken. Many of our collective bargaining agreements contain negotiated provisions covering severance or separation pay and benefits. Where there is no legal minimum notice period, Johnson & Johnson operating companies attempt to provide notice at the earliest feasible time.
Our talent management approach places a strong focus on diversity and inclusion principles. We strive to promote diversity and equal opportunity in recruiting, development and promotion as well as all other aspects of employee careers. For more information, visit the Diversity & Inclusion section.
The Johnson & Johnson Responsibility Standards for Suppliers set forth our expectations of supplier business conduct. In 2017, we completed a comprehensive review and revision of these Standards to include expanded requirements on human rights, among other updates. The revised Standards align closely with relevant provisions of the United Nations Guiding Principles on Human Rights and the Consumer Goods Forum Forced Labor Resolution and Priority Industry Principles. For more information on the revision process, visit the Supplier Engagement section. In addition, we developed and posted our California Transparency in Supply Chains Act & UK Modern Slavery Act Statement, and are progressing against goals designed to continuously improve our performance in the matters reported in that statement. We will update the statement annually.
We continue to reinforce our management approach to human rights issues in the supply base with the goal of creating a more comprehensive enterprise-wide framework. Our cross-functional Human Rights Working Group — comprised of Global Procurement, Law Department, Environmental Health, Safety & Sustainability and Corporate Governance functional groups — continued to meet regularly, joined by subject matter experts from other enterprise teams on an as-needed basis. In addition to expanding the human rights requirements in our updated Responsibility Standards for Suppliers, the team developed a human rights risk assessment approach and social audit program. The full roll-out of the supplier social audit program is scheduled to take place in 2018. For more information, see the Supplier Assessments & Audits section.
We are committed to providing effective resolution if adverse human rights impacts occur. Where we find impacts directly linked to our business relationships, we will use our influence to encourage our suppliers or business partners to prevent, mitigate and address adverse impacts on human rights. The Johnson & Johnson Credo Hotline is the grievance mechanism available to all employees, suppliers and other business partners, offering a secure channel for anonymous reporting of suspected concerns or potential violations of our policies or the law. We communicate the hotline access broadly, and visibility of this access and hotline functionality are in scope of enterprise-wide audit procedures. Concerns raised through the hotline are reported at an enterprise level. Visit the Business Ethics section for more information.
In addition to the Credo Hotline, our employees can anonymously report potential violations to the Human Resources function within each operating company locally as follows:
- In all countries in our Asia Pacific region, we have a grievance resolution policy that explains how employees can raise complaints, and details manager responsibilities to take action.
- In the Americas and Asia Pacific region, Employee Relations staff independently investigates non-compliance in employee relations matters, and verified non-compliant situations are addressed by the respective business unit.
- In the Europe, Middle East and Africa region, investigations are the responsibility of local Human Resources and are overseen by regional employee relations teams.
- In North America, employees can use the Open Door and Common Ground processes, as stipulated in our Guide for Resolving Employee Disagreements – North America statement.
- In all other operating regions, an appeal process to re-open grievances exists under certain conditions.
43 Percentage is based on employee headcount data from Human Resources Information Systems (HRIS). HRIS headcount methodology differs from that used for the headcount in the Annual Report/Form 10-K.