JOHNSON & JOHNSON

“…We are responsible to the communities in which we live and
work and to the world community as well…”[1]

Company and Industry Profile:

Johnson & Johnson is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices markets. The Company includes more than 200 operating companies in more than 57 countries and employs approximately 109,900 people worldwide. In Mexico, the company has corporate offices and four operation sites in the Mexico City Area (Janssen-Cilag Farmaceutica, Johnson & Johnson Medical, Johnson & Johnson Vision Care, and LifeScan), and one operation site in the border state of Chihuahua, Mexico (Cordis de Mexico).

An important factor in the long-term success of Johnson & Johnson has been its commitment to its corporate Credo. For more than 60 years, the Company has followed the tenets of its Credo, simple, one-page document that has helped guide its actions in fulfilling the Company’s responsibilities to its customers, its employees, the local and global community and its shareholders. This document reminds employees and management of Johnson & Johnson of the deep sense of responsibility they have to enhance the economic and social health of the communities in which the company operates by supporting local programs and assisting new efforts to improve health, education, and civic vitality.

In recognition of its social awareness, Johnson & Johnson’s stock has been included in the Dow Jones Sustainability Index (DJSI), which encompasses the best-in-class approaches and sustainability leaders in each industry.

Corporate Social Responsibility (CSR) Strategy:

Johnson & Johnson's commitment to CSR is described by a large and diverse number of community initiatives and focused strategies that are classified in five areas: Women’s and Children’s Health, Community Responsibility, Access to Care, Advancing Health Care Knowledge, and Global Public Health.

As stated in Johnson & Johnson’s Worldwide Contributions Program 2004 Annual Report, “… Johnson & Johnson offers solution-driven programs that ensure quality health care and help build strong communities around the world.” In 2003 and 2004, the company allocated $384.5 and $528.7 million in cash gifts and product contributions, respectively, nearly 4% of the company’s annual worldwide pretax income.

Johnson & Johnson’s CSR’s sustainable strategy is mainly performed through partnerships and strategic alliances with local organizations, in which the company and its employees participate actively; and by assisting in emergency situations. For example, last year, in response to the tsunami tragedy, senior management made an immediate financial commitment and sent medical relief modules to most affected areas, donating products in excess of $80 million.

Community Outreach:

Johnson & Johnson corporate giving extends throughout their global organization. Their actions range from their Neonatal Resuscitation Program to assist births in China, the Ethiopia’s Fistula Hospital, the European Business Campaign on Corporate Social Responsibility, to the Nature Conservancy initiative in Brazil.

In Mexico, the company has supported several different causes. Among them are the Pediatric Leadership Alliance, a partnership with the American Academy of Pediatrics that promoted leadership education (in 2001, 13 teams from across the United States and Mexico were trained in issues affecting children); the John Langdon Down School Program, in which Johnson & Johnson supported education and human development services to families of children with Down’s Syndrome; and Project HOPE - Mexico, that has addressed the increasing prevalence of diabetes in Mexico through professional training and public awareness.

U.S. - Mexico Border Projects:

Due to their presence in the border region, the urgent need of providing basic services in Ciudad Juarez transmitted by the managers of their local subsidiary, their relationships with nonprofit organizations that operate in the area and their long-term commitment to education and health, Johnson & Johnson has supported the following initiatives:

• Juarez Community Eye Care Project. In association with Surgical Eye Expeditions (EE) International, Inc., a nonprofit organization that seeks to reduce world blindness, the Juarez General Hospital, and the local ophthalmic community, Johnson & Johnson funded the creation of a self-sustained clinic to provide eye care to low-income people through cost-recovery fees. Since its opening in 2002, the clinic has examined hundreds of patients and performed surgeries in the areas of cataracts, glaucoma and cornea implants.
• Center for Environmental Resource Management (CERM), University Of Texas. With the aim to combat the environmental threats that jeopardized the health, safety and development of the border region, in 2002, Johnson & Johnson donated $90,000 to finance an environmental initiative entitled “Johnson & Johnson Water and Sanitation Outreach Program”. According to recently published reports from the company, the center has reached over 200 families with safe water and constructed around 11 latrines.
• Mexican Foundation of Health and Community Development (FEMAP): With the assistance of Johnson & Johnson and El Paso Community Foundation, the organization has been able to expand the capacity of FEMAP’s Hospital de la Familia, from four beds and one doctor in 1976 to more than 100 beds and 80 doctors in 2003. Funding from Johnson & Johnson allowed hundreds of children to benefit from open thermal cribs, an incubator, oximeters, and monitors for newborns, installed in different units of the hospital.
• Juarez General Hospital Nursing School: In response to a deficit of more than 3,500 trained personnel in the Juarez Area, Johnson & Johnson sponsored the training of a large number of nurses to apply the appropriate skills when serving the community of Cd. Juarez. In addition, they sponsored the enhancement of the nursing school’s physical facilities. By 2003, with financial support from Johnson & Johnson and the assistance of Fundación Margarita Miranda de Mascareñas, the school was training 48 scholars.
• El Paso Community Foundation (EPCF) - U.S. / Mexico: Johnson & Johnson has donated $705,000 dollars for different projects. Of this amount, $220,000 dollars have been used to improve air quality in the region, by reducing vehicular emissions through education and vehicular maintenance programs and other strategies.
• Elementary School Program: Through their local subsidiary, Cordis de Mexico, in 2001, Johnson & Johnson participated with EPCF in a matching funds effort with Siga Construcciones to support a school that would assist more than 300 children; in 2004, the company funded another facility, with additional support from the contractor.

Although these projects are different in nature and therefore not-easily comparable, “Johnson & Johnson has stood on the feet and has supported the community in a sustainable way… With regard to the school in Juarez, we can now see a school that everyone is proud of…”[2]

 [1] J&J 2004 Worldwide Contributions Program Report.

[2] Mr. Conrad Person, Director of International Programs, J&J. Telephone interview: March, 22, 2005.