Robust governance structures with clear chains of accountability enable us to deliver on both our commitments and stakeholder expectations. Our sustainability governance includes Board of Directors oversight, management accountability, corporate policies and management systems, and clearly stated public policies and positions on key environmental, social and governance (ESG) topics. Those ESG topics are well integrated into our business strategy and operations. We view effective management of ESG matters as a business fundamental and seek continuous improvement in these areas because they underpin the long-term success of our Company and our ability to deliver value for our stakeholders.
The Johnson & Johnson Enterprise Governance Council (EGC) serves as the primary governance body overseeing ESG topics and supporting the Company’s Enterprise Risk Management Framework. The EGC is comprised of senior leaders who represent our Pharmaceutical, Medical Devices and Consumer Health business segments and our global enterprise functions with line of sight to, and ability to impact, ESG issues. Throughout 2019, the EGC continued to lead initiatives to embed ESG considerations in business decisions. Specifically, the EGC provided oversight for the Company’s latest Priority Topics Assessment (PTA) aimed at identifying priority ESG topics. The Council also oversaw the establishment of the Enterprise Human Rights Governance Council, which reports to the EGC and is responsible for strengthening our approach to human rights due diligence and management. In July, the EGC kicked off the process for setting the Company’s next generation of sustainability goals, the Health for Humanity 2025 Goals.
The Enterprise Governance Council Working Group (EGCWG) as the cross-functional “activation arm” of the EGC met four times in 2019 to review the status of key projects. In addition, the EGCWG refreshed its membership to more fully represent the global nature of the business.
For further details see our Position on Sustainability Governance.
As a global healthcare company, Johnson & Johnson interacts with numerous stakeholder groups at the global, national and local levels. Our Credo, written more than 75 years ago, acknowledges the diversity of stakeholders to whom we are responsible, and serves as our guide to creating long-term value for our Company and for society. Ongoing and proactive engagement with these groups makes our Company stronger and better informed. It helps us gain valuable insight into our stakeholders’ perspectives and the topics that matter to them. It better enables us to develop products and services that are responsive to their needs. This engagement also allows us to share information about our Company’s strategy, practices and performance.
Stakeholder engagement on ESG: The PTA is an important mechanism to engage with and understand the views of our key stakeholders on ESG topics that they believe are priority for Johnson & Johnson. In 2019, we conducted our latest PTA. Building on learnings from prior assessments, we enhanced the methodology to conduct a deeper and broader stakeholder engagement across a larger number of applicable ESG topics.
Throughout 2019, members of our management team met with a significant number of our shareholders around the world to discuss our Health for Humanity sustainability approach and our progress in key ESG measures. In June 2019, we hosted our second Health for Humanity Report webcast with investors to accompany the release of our annual Health for Humanity Report, providing shareholders the opportunity to engage and ask questions of leaders in Investor Relations, Quality & Compliance, Medical Safety, Global Public Health and Environmental Health, Safety & Sustainability.
Participation in strategic initiatives: To support dialogue and efforts related to the role of business in society, we participated in important initiatives like the Chief Executives for Corporate Purpose’s Strategic Investor Initiative and the Business Roundtable. In 2019, the Business Roundtable’s Corporate Governance Committee, of which our Chairman and CEO Alex Gorsky is the Chair, released a new statement on the Purpose of a Corporation, affirming the commitment of more than 183 CEOs to lead their companies for the benefit of all stakeholders—customers, employees, suppliers, communities and shareholders. In August, Johnson & Johnson joined the Organisation for Economic Co-operation and Development’s Business for Inclusive Growth coalition, which launched at the G7 Leaders’ Summit in France. The coalition brings together 34 leading multinationals who have pledged to take concrete steps to ensure that the benefits of economic growth are widely shared.
Engaging with policymakers: We also engage in dialogue with policymakers and other stakeholders. Johnson & Johnson is the sole healthcare sponsor of All Policies for a Healthy Europe, an intersectoral initiative undertaken by sectors outside of, and in collaboration with, the health sector, working to ensure that citizens’ health and wellbeing are a core priority for Europe. In this role, we are contributing to the strategic direction of the initiative, which focuses on the inextricable links between healthy societies, a healthy environment and healthy systems, and embraces the potential of data and digital technologies that improve wellbeing. We also joined the Call to Action for a New Deal for Europe, which brings together European leaders to collaborate on an overarching strategy for a sustainable Europe by 2030. Please see our approach to Public Policy Engagement.
Stakeholder engagement for this Report: Various internal stakeholders across Johnson & Johnson's global teams provided their input into this Report. The final content has been reviewed by members of the Executive Committee.
See also our Position on Stakeholder Engagement.