2019 Health for Humanity Report
Lead Image - Resp Bus Practices
Lead Image - Resp Bus Practices

Employees from Janssen Pharmaceutical Companies of Johnson & Johnson working together toward shared goals, because collaboration is in our DNA and that is how our top breakthroughs happen.

Responsible Business Practices
Responsible Business Practices Responsible Supply Base

Enhancing Supplier Diversity & Inclusion

The Johnson & Johnson Supplier Diversity & Inclusion Program has a track record of advancing supplier diversity within our business for more than 20 years. We proactively reach out to diverse businesses to help raise awareness of opportunities with Johnson & Johnson and provide guidance on how to engage with us. We collaborate with a wide range of organizations to promote outreach to and opportunities for diverse suppliers. We believe our suppliers should be representative of the consumers and patients we serve. We know that spend with diverse suppliers can have a significant economic impact in the communities in which we live and work by stimulating the economy.

2020 GOAL PROGRESS
Exceeded benchmark diverse supplier spending at 11% and benchmark small supplier spending at 18% of total U.S. spend.

Expanded our supplier diversity and inclusion programs to three additional countries (France, Indonesia and Singapore) for a total of 16 countries against the baseline of six.

Advancing women-owned businesses: We continually seek to advance women-owned businesses and help them grow. Johnson & Johnson procurement staff supported our supplier Eficacia in achieving WeConnect International certification, boosting Eficacia’s chances of winning additional business with large companies. Eficacia, a women-owned family business with more than 25,000 employees, is our main partner for merchandising and field sales in our Consumer Health and Medical Devices businesses in Colombia. Eficacia, with a mission to create economic opportunities especially in marginalized communities, provides merchandising services at 11,000 points of sale locations for Johnson & Johnson. With Eficacia recently extending their operations to Peru and Ecuador, we are now expanding our partnership with Eficacia in these countries.

Mentoring women-owned businesses: Following the 2017 launch of our Women Mentoring Women, a first-of-a-kind reciprocal mentoring program that matched 22 women leaders in Procurement roles in Johnson & Johnson with Women- Owned Business Enterprise (WBE) owners, we held a meeting with participants to share insights and learning. Building on the success of the first two years, the 2019 – 2020 cohort is now being planned and will include new elements, such as: participation of Johnson & Johnson women leaders who are in roles outside Procurement; capability-building program experiences; and expansion of the program outside the United States.

First certified women-owned business in Japan
In 2019, we onboarded our first certified women- owned business in Japan, Waris Co. Ltd., a business that connects professional skilled women with potential employers in Japan. Waris manages a network of 10,000 freelancers, also encouraging women who have been absent from the workplace—especially after childbirth—to go back to work and continue to work with confidence.

Connecting with social enterprises in the UK: We are one of seven founding partners of the Buy Social Corporate Challenge in the UK, taking a lead role in partnering with social enterprises to bring value. We supported the launch of the Buy Social Corporate Challenge, an initiative to promote the use of Social Enterprises in corporate supply chains. Since its launch we have worked with over 40 social enterprises creating job opportunities for those facing barriers to work.

Johnson & Johnson has been a pioneer in adopting and embedding social procurement into its business operations. Having a global business of their scale demonstrates how businesses of all sizes and from a wide range of sectors can practically use their spending power to create a positive impact on society. As a founding partner of the Buy Social Corporate Challenge, Johnson & Johnson's collaborative approach and leadership have enabled the initiative to grow from seven large businesses to 23.
Patrick Holbrook, CBE Chief Executive, Social Enterprise UK
We’ve been working with Johnson & Johnson since 2014 and it has been such a valuable partnership. The young people that have trained and worked with us have gone through a transformation in terms of self-confidence and job prospects, and there is no way we could have done that if it weren’t for Johnson & Johnson.
Ann Summerhayes Managing Director, Inside Job Productions, audio visual production company

Supporting employment of people with disabilities: Around the world, we channel our procurement spend to encourage employment of diverse populations, including those with disabilities. We maintain long-term relationships, often spanning decades, with many social enterprises to support this goal, for example, with Access Industries in Australia, which has been working with Johnson & Johnson for more than 40 years, providing packaging services for our consumer business. Access Industries has a current workforce of 480 individuals, offering viable employment for people with disabilities.

Supporting Minority-Owned Businesses: We support minority- owned business around the world with over 250 diverse suppliers from Australia, Canada, South Africa and the UK. In 2019, we expanded our external outreach, becoming members of Integrare in Brazil.

In the United States, Johnson & Johnson expanded its focus on sourcing and developing minority-owned firms for the supply chain. We have more than 400 minority-owned suppliers that provide over $870 million in goods and services. We increased our sponsorship with the United States Hispanic Chamber of Commerce, by whom our Johnson & Johnson Employee Resource Group was recognized the prior year, and strengthened our overall relationship. We also sponsored a key supplier of food and cafeteria services to participate in the National Minority Supplier Development Council’s prestigious Corporate Plus program, which provided that supplier with advanced training opportunities and exposure to other major companies. In addition, we continued to serve as a major sponsor and corporate member of the Diverse Manufacturing Supply Chain Alliance, where we sponsor diverse firms to participate in their groundbreaking Supplier Development program, and also actively engage in industry working groups to drive standard practices across peer companies.

Billion Dollar Roundtable
For the ninth consecutive year, Johnson & Johnson maintained membership in the Billion Dollar Roundtable, a group of companies that advanced best practices for supplier diversity, and that spend at least $1 billion (Tier 1) annually with certified minority-, women-, veteran-, LGBT- and disability-owned businesses.

Driving supplier diversity in our R&D supply chain
Increasing diversity spend for R&D procurement has been a constant challenge, with smaller suppliers becoming acquired by others and losing their diversity certification. Over the past few years, this has impacted more than 25% of our R&D supplier diversity spend. In 2019, to help develop practical approaches to this challenge, we hosted the first R&D Procurement Supplier Diversity Peer Ideation Event focused on enhancing collaboration with small and diverse suppliers. Representatives of nine of our pharmaceutical company peers, pharmaceutical industry associations and supplier partners joined our R&D procurement team to generate ideas on ways to increase our collaboration efforts with small and diverse suppliers. Together, we are taking forward some practical ideas and evaluating others.

Our Performance

Diverse Supplier Spend in the United States*

2019

2018

2017

Diverse supplier spend (billions) $1.61 $1.42 $1.41
Percentage of total supplier spend attributable to diverse suppliers 11% 10% 10%
Small supplier spend (billions) $2.61 $2.76 $2.67
Percentage of total supplier spend attributable to small suppliers 18% 19% 19%
Spend with lesbian, gay, bisexual, transgender suppliers (millions) $4 $2 $1
Spend with veteran- and disabled-owned suppliers (millions) $170 $139 $130
* Spend we have control over / addressable spend; includes products and services that procurement teams can negotiate with suppliers to meet business goals.

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