Do more, feel better, live longer

103 Pages·2012·8.62 MB·English

Do more,
feel better,
live longer
Corporate Responsibility Report
2011
GSK Corporate Responsibility Report 2011
Our approach About our report
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Data
About our report
Data relate to worldwide operations for the calendar year
2011, except where stated.
Data in the environment and health and safety sections
We report our CR performance annually The report is supported by and references
were independently assured by SGS. More information
as part of our commitment to be open and further information online at www. gsk.com on our approach to external assurance is provided in the
transparent about our business activities. Information on corporate responsibility is governance and management section on page 96.
also included in our Annual Report. Brand names appearing in italics throughout this report
This year we have restructured our report are trademarks owned by and/or licensed to GSK or
associated companies.
around four core themes, which refect We welcome your feedback on any of the
the issues we see as most important for information in this report and we are always Reporting standards
responsible and sustainable business growth. happy to discuss any questions you may We do not base our report on the Global Reporting
These also refect the issues most commonly have that may not be covered. Initiative (GRI) guidelines but we have produced a GRI
index to show which elements of the guidelines are
raised by our stakeholders. Please contact us at:
GSK Corporate Responsibility Report 2011 01
Our approach Contents
Contents
Our approach Our people and communities Our planet
From our Chairman 02 What we do 05 Introduction 37 Performance in 2011 47 Introduction 83 Waste 88
From our CEO 03 How we create value 06 Working at GSK 38 Feature: Bringing Carbon 84 Minimising use
Responsible business 07 Engaging employees 38 science to the London Supply chain 84 of materials at source 89
Developing employees 39 2012 Olympic and Our operations 84 Environmental
Paralympic Games 48 stewardship 90
Diversity at GSK 40 Propellants 85
PULSE and Environmental
Health and safety 41 employee volunteering 50 Feature: Understanding
governance 90
Our community the impact of
investment 46 our products 86 Compliance 91
Water 88 Performance in 2011 92
Health for all Water in our operations 88 External assurance 94
Introduction 09 Developed countries 29
Research and Europe 29
development 10 USA 30 Our behaviour
Improving access to HIV/AIDS and
healthcare – a global ViiV Healthcare 31 Introduction 53 Clinical research 64
challenge 12
Research and development 31 Ethical conduct 54 Patient safety 66
Developing countries 14
Increasing access 33 Preventing bribery Supply chain 68 Governance and management
Increasing availability 14
Community investment 34 and corruption 54 The supply and
Feature: Our Marketing our products 55 distribution process 69
Introduction 95 Stakeholder engagement 98
approach to malaria 16
Feature: Changing the Our supplier standards 70 Our approach 96 Performance 99
Improving affordability 21 way we incentivise our
Performance in 2011 71 The value of CR 97
Preventing disease and sales teams in the USA 56
Security of supply 72
raising awareness 25 Publishing payments to
Supplier diversity 73
Advocacy 28 healthcare professionals 58
Public policy and
Future plans 28 Publishing grants
patient advocacy 74
and donations 58
Trade and industry
Training and awareness 58
associations 74
Monitoring and
Public policy activity in 2011 75
compliance 59
Political contributions and
Data privacy 60
lobbying expenditure 77
Research practices 61
Patient advocacy 78
Animal research 61
Human rights 80
GSK Corporate Responsibility Report 2011 02
Our approach
From our Chairman
GSK has always believed that This year we have made good progress. In my role
as Chairman of both the Board and the Corporate
operating in a responsible and Responsibility Committee, I am acutely aware of the
ethical way is essential for the pressures and challenges faced by the company and I
receive regular reports of how these are being addressed.
success of its business. During 2011
During the year I was particularly pleased to see further
we continued to examine our commitments made to improve global access to our
policies and operations to ensure medicines, including agreements to supply large quantities
of our vaccines to protect against rotavirus gastroenteritis
that our approach to corporate and pneumococcal diseases such as pneumonia and
responsibility supports the delivery meningitis to the poorest countries of the world at
fractions of western prices. The company has also made
of our business strategy and is
substantive progress in other areas such as environmental
consistent with our values. sustainability and in supporting the communities in
which we operate.
Much of this progress is due to the leadership of
Sir Andrew and the executive team. The Board will
continue to support and constructively challenge
their thinking and the actions they take to operate
a responsible values-based business.
Sir Andrew Witty (left) and Sir Christopher Gent (right).
Sir Christopher Gent
Chairman
GSK Corporate Responsibility Report 2011 03
Our approach
From our CEO
Three-and-a-half years ago, we set Our record in 2011 demonstrates that we are succeeding, 2011 also demonstrated that we are making signifcant
through increased sales and returns to our shareholders progress to improve returns and productivity in R&D.
out to fundamentally change GSK and signifcant progress in our research and development. We are seeing this productivity translate into real flings
to create a different type of company, We remain committed to operating with transparency and approvals, with three medicines approved in 2011
and four more ready to fle in 2012. These include our
delivering sustainable fnancial and responsibility. During the year we made multiple new MEK inhibitor for melanoma and a new four-valent
advances on our agenda to ensure that our behaviour
performance and providing shared and our actions meet or even exceed the expectations fu vaccine.
value to patients, consumers of society. Much of this is refected in this report which We are also on the cusp of creating the world’s frst
is structured around four areas: Health for all, Our people malaria vaccine. I have seen frst-hand the devastating
and governments. and communities, Our behaviour and Our planet. impact that this disease has on Africa, having lived there
for several years in the 1990s. In October 2011, late-stage
One of our key priorities is to continue to align our
trials confrmed the promise we have seen so far, showing
commercial success with forming new partnerships
that the vaccine reduces the risk of malaria by half in
to tackle the healthcare needs of people in developing
African children aged 5-17 months. We also reiterated
countries. This is particularly pertinent for vaccines,
our commitment to price the vaccine at a level that covers
and tackling pneumococcal disease is a great example of
costs and generates a small return of around 5% that will
how these partnerships make a difference. Early in 2011,
be ploughed back into research for the next generation of
GSK began supplying pneumococcal vaccines to Kenya
malaria medicines and vaccines.
through an innovative fnancing mechanism known
as the Advance Market Commitment. This is the During the year we also reached an agreement in principle
largest fund ever designed for a single vaccine and with the US Government to resolve some long-standing
has dramatically increased sustainable access to this legal issues around our sales and marketing practices for
vaccine for babies across Africa. a settlement of $3 billion. I know this was diffcult, but is
a necessary step towards resolving multiple, long-standing
This success was built upon mid-year when we announced
matters which do not refect the company that we are today.
a new pricing structure for our vaccine against diarrhoeal
disease. We offered the GAVI Alliance our vaccine at
a fraction of the cost of developed western markets.
Millions of children living in the world’s poorest countries
are now set to receive it, which will save countless lives
in the future. Importantly, this offer is sustainable over
the long term because we are recouping the cost of
goods and manufacture.
Continued 3
GSK Corporate Responsibility Report 2011 04
Our approach From our CEO
As part of an ongoing strategy, we continue to None of this would be possible without the efforts of all of
fundamentally change our procedures for compliance, our employees. Investing in our people and communities
marketing and selling, particularly in the USA. underpins the long-term sustainability of our business,
This will ensure that we operate with high standards creating the right internal and external conditions to
of integrity and that we conduct our business openly support our strategy. As a company, we are mindful of the
and transparently. We will continue to innovate and potential pressures our employees face given the current
to respond to the expectations of our stakeholders, global, political and economic environment. Despite these
and our new compensation system that rewards sales challenges, we remain committed to offering all of our
representatives in the USA on quality of service rather employees a range of learning opportunities and tailored
than sales volumes is one example. development and volunteering programmes. The PULSE
programme, for example, gives employees the chance to
We also made progress on implementing our
join a non-proft or non-governmental organisation for
environmental strategy which has been revised to set
a three- or six-month placement. There were 80 PULSE
ambitious goals for our entire value chain – from raw
volunteers in 2011, up from 58 in 2010. I am delighted
materials to product disposal. We need to work in ways
that nearly 200 employees from 26 countries have served
that enable business growth while protecting the natural
as PULSE volunteers since the scheme began in 2009.
resources for the future. For example, almost 40% of our
carbon footprint derives from propellants when patients These changes and others we have made right across our
use our inhalers, and eliminating CFC gases from our business are laying the foundations for our future success.
products has substantially reduced inhaler emissions – We have come a long way but we have by no means
from 24 million tonnes of CO2 equivalents in 1998 to less achieved everything we aspire to. We will continue to
than 5,000 tonnes today. review our plans and commitments across each of the four
areas, looking to establish further long-term goals and
Sir Andrew Witty hears from patients visiting a hospital in Uganda.
targets which will support meaningful measurement and
demonstrate our commitment to responsible, values-based
business. We will continue to be restless, to challenge
ourselves and to ask what more we can do.

Sir Andrew Witty
Chief Executive Offcer
GSK Corporate Responsibility Report 2011 05
Our approach
What we do
We are a science-led global healthcare GSK has three primary areas of business: Pharmaceuticals, Turnover by region
Vaccines and Consumer Healthcare.
company. We make innovative 6 1 £bn
Our Pharmaceuticals business develops and makes 5 1 USA 8.7
products that are used by millions available medicines to treat a range of serious infectious 4 2 Europe 8.3
o
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manufacture and the way we do Our vaccines business is one of the largest in the world, Total 27.4
this contributes directly to the producing paediatric and adult vaccines against a range
of infectious diseases. Many of these products use
health and well-being of patients
components in a single vaccine that help provide Employees by region
and consumers, and indirectly to protection against multiple diseases.
5 6 1 No.
society and the economy. T
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in areas such as oral health, nutrition, wellness and 4 Asia Pacifc 7,039
skin health. 5 Japan 3,573
6 Other 1,908
Our business is sustained through investment in R&D. 3 Total 97,389
In 2011 we spent £3.9 billion in our search to develop new
medicines, vaccines and innovative consumer products.
Our Annual Report
You can read more about our
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and risk management in our 2011
2011 Annual Report online.
GSK Corporate Responsibility Report 2011 06
Our approach
How we create value
We place great importance on Innovation For our employees, the positive impact their contribution
makes to people’s lives is one of their key motivators to
what we achieve but also on how New medicines and healthcare products are needed by working at GSK.
people across the globe to address the many illnesses that
we achieve it. We believe business
are still not well-controlled or treated. At the same time, We have a diverse and balanced portfolio across
should play a greater role in scientifc research is continuously uncovering new pharmaceuticals, vaccines and consumer healthcare
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environmental challenges. These two elements present us with the opportunity to shape of our business are intended to provide broadly-
investigate and develop new and improved treatments. sourced sales growth and greater resilience in the face
We create value by applying science and technology to of market challenges.
discover, develop, produce and distribute medicines,
vaccines and consumer healthcare products. We are developing new partnerships and approaches,
adopting a mindset that is more innovative, open-minded
Access and fexible. We value new and different perspectives:
working with research charities, academia, companies
We are actively seeking new ways of delivering healthcare and non-governmental organisations among others.
and making our products more available and affordable to We are being more fexible with our intellectual property
people who need them, wherever they live. We do this not and know-how stimulating progress in the search for
only because society expects us to and it is the right thing new treatments.
to do, but also because it is good for our business.
We are also increasing consultation with patients and
In our effort to expand access to our products, we have payers to ensure we develop medicines that healthcare
led the industry in adopting a fexible approach to pricing systems will value and reward.
of our medicines and vaccines, based on a country’s
wealth and ability to pay. This has resulted in signifcant Approach to responsible business
reductions in price and increases in demand for our
Only by being a responsible business can we grow and create
products in emerging economies, representing a good
value for our shareholders and for society. Our strategy is
outcome for patients, governments and our shareholders.
designed to maximise performance and we are committed
In Western markets, we have developed new reimbursement
to operating with responsibility and transparency. Strong
approaches for our medicines, where we agree risk-sharing
values and our people are central to our business success.
arrangements with payers.
In this report, we have outlined our progress around four
Why we are different themes which refect the issues we see as most important
We have fundamentally changed our business and our for responsible and sustainable business growth.
culture to help us grow, innovate and improve our We are reviewing our plans and commitments across all
performance. This affects the way we do business, the way we four areas and plan to establish further targets and key
work with others and our relationship with our employees. performance indicators.
GSK Corporate Responsibility Report 2011 07
Our approach
Responsible business
Health for all Our people and communities
Through investment in R&D, infrastructure and We respect all people and support our employees to
innovative pricing we are working with stakeholders to reach their full potential. We make a positive difference
make our medicines, vaccines and consumer products to the communities in which we operate through
available to as many people who need them as possible, economic contribution, investment, education
regardless of where they live or their ability to pay. programmes and partnerships.
Our planet Our behaviour
We are committed to minimising our environmental We are building a strong values-based culture.
impact across our value chain and lifecycle of our We recognise that we need to be open about what we
products by setting ambitious goals to reduce our carbon do, how we do it and the challenges we face. Our actions
footprint, water and waste. are backed by robust policies and strong compliance
processes. We expect the same standards from our
suppliers, contractors and business partners.
GSK Corporate Responsibility Report 2011 08
Contents
Health for all
Introduction 09 Developed countries 29
Research and Europe 29
development 10 USA 30
Improving people’s health and hImeaplrtohvcianrge a–c ac egslso tboa l H
ViIiVV/ AHIeDaSlt ahncadr e 31
well-being regardless of where challenge 12 Research and development 31
they live or their ability to pay DInecrveealsoinpgin agva ciloaubinlityr ies 14
CInocmreamsuinngi tayc icnevsess tment 334
Feature: Our
approach to malaria 16
Improving affordability 21
Preventing disease
and raising awareness 25
Advocacy 28
Future plans 28
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Improving access
to healthcare is
one of society’s
most pressing
social challenges.