GRI index: Social performance indicators

1, 3, 6

Management approach

HR Management, Dialogue and co-determination, Occupational health and safety, Attracting and developing employees, Diversity

LA1

Total workforce

We do not currently record data on supervised workers, e.g. temps, in our data systems for employees. We are working to record these data in the future, making them available in 2014.

Indicators: Employees, Code of Conduct 

6

LA2

Rate of employee turnover

Attracting and developing employees, Indicators: Employees

LA3

Benefits provided

Attracting and developing employees, Indicators: Employees

LA15

Parental leave

Indicators: Employees

1, 3

LA4

Employees covered by collective bargaining agreements

We currently report the percentage of employees who qualify to be covered by collective bargaining agreements at Merck KGaA, Darmstadt, Germany. In the next report we will present the percentage of employees who are actually covered by collective bargaining agreements.

Dialogue and co-determination, Indicators: Employees

3

LA5

Minimum notice periods regarding significant operational changes

The regulations on notice periods vary worldwide. As we comply with the applicable regulations, we have not defined a Group-wide uniform notice period.

Dialogue and co-determination, Fit for 2018

1

LA6

Workforce represented in health and safety committees

Occupational health and safety committees are stipulated by law in Germany. Therefore, all employees of the sites in Germany (Darmstadt, Gernsheim, and Grafing) are represented in health and safety committees working at site level. This accounts for approx. 24% of the total workforce.

1

LA7

Injuries, occupational diseases, lost days, days of absence and work-related deaths

We have defined the lost time injury rate (LTIR) as an important indicator at Merck KGaA, Darmstadt, Germany. Therefore, we do not present any separate figures on workplace accidents, lost days and days of absence. The LTIR is currently not broken down by gender and region. We intend to include a breakdown by region in the next report. Occupational diseases are reported for Merck KGaA, Darmstadt, Germany in Germany if they have been medically diagnosed and certified. One case of an occupational diseases was reported in the 2011-2012 period.

Indicators: Employees, Occupational health and safety

1

LA8

Health care and counseling

Occupational health and safety

1

LA9

Health and safety agreements with trade unions

For our sites in Germany there is a company agreement on occupational health and safety.

LA10

Average annual further training per employee

The costs of training and education for our employees are currently recorded and reported. The average number of hours of advanced training are currently not recorded, but are to be made available in the next fiscal year.

Indicators: Employees, Attracting and developing employees, Training on specific topics: Compliance, Occupational safety, Diversity, Animal welfare, Company environmental protection, Product-related crime

LA11

Skills management and lifelong learning

Attracting and developing employees, Fit for 2018

LA12

Employee performance and career development reviews

Attracting and developing employees, Indicators: Employees

1, 6

LA13

Composition of governance bodies and breakdown of employees by diversity criteria

As there is no globally uniform definition of the term “minority”, we do not record any data on this. Moreover, the recording of our employees’ personal data is strictly regulated in many countries in which we operate.

Executive Board , Supervisory Board , Objectives of the Supervisory Board , Indicators: Employees

1, 6

LA14

Ratio of basic salary of men to women

The salaries at Merck KGaA, Darmstadt, Germany are linked to the job descriptions that are defined in the global grade system. This system has fixed salary bands that are identical for men and women. Bonuses that we pay within the scope of our performance-oriented compensation are paid on the basis of target agreement and achievement. A performance management system steers the process.

Attracting and developing employees

1, 2, 3, 4, 5, 6

Management approach

Human rights, Compliance, HR Management, Safety of our drugs, Clinical trials, Supplier management

1, 2, 3, 4, 5, 6

HR1

Investment agreements that include human right clauses

In all decisions relating to mergers and acquisitions, we screen our potential partners for their compliance with human rights. A special focus is on labor standards and environmental aspects.

Supplier management

1, 2, 3, 4, 5, 6

HR2

Suppliers that have undergone screening on human rights and actions taken

Supplier management, Clinical trials

1, 2, 3, 4, 5, 6

HR3

Employee training on human rights

We train our employees on diverse topics that show a relationship to human rights. Interdisciplinary training is currently not carried out on the topic of human rights.

Diversity, Product-related crime, Access to health, Supplier management, Compliance

1, 2, 6

HR4

Number of incidents of discrimination and actions taken

Diversity

1, 2, 3

HR5

Risks to the right to exercise freedom of association and collective bargaining in business activity

Human rights, Compliance, Supplier management

1, 2, 5

HR6

Risk of child labor in business activity

Human rights, Compliance, Supplier management

1, 2, 4

HR7

Risk of forced or compulsory labor in business activity

Human rights, Compliance, Supplier management

1, 2

HR8

Security personnel trained in aspects of human rights

Security personnel are currently not being trained in aspects of human rights. We are developing the corresponding training modules, which are scheduled to start in 2014.

1, 2

HR9

Incidents of violations involving rights of indigenous people

There were no significant incidents of non-compliance during the 2011-2012 period.

1, 2

HR10

Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments

Compliance, Human rights

1, 2

HR11

Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms

Compliance, Human rights, Supplier management, Product safety

1, 2, 3, 4, 5, 6, 7, 8, 9, 10

Management approach

Compliance, Stakeholder dialogue, Dialogue and co-determination

SO1

Programs that assess the impact of operations on society

Company strategy , CR strategy, Stakeholder dialogue, Social engagement

SO9

Operations with significant potential or actual negative impacts on local communities

Company environmental protection, Supplier management, Reuse and recycling

SO10

Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities

Compliance, Supplier management, Dialogue and co-determination, Stakeholder dialogue

10

SO2

Analysis of risks related to corruption in business units

Compliance

10

SO3

Training in anti-corruption

Compliance

10

SO4

Incidents of corruption and actions taken

Compliance

1, 2, 3, 4, 5, 6, 7, 8, 9, 10

SO5

Political positions and lobbying

Merck KGaA, Darmstadt, Germany acts according to the political positions published. This also applies to direct dialog with politicians and to representatives of political interests through associations.

Stakeholder dialogue

10

SO6

Contributions to political parties and politicians

Merck KGaA, Darmstadt, Germany does not make financial contributions to holders of or candidates for political office, political parties or related organizations. This is defined in our Code of Conducts. In the United States, EMD Political Action Committees (PACs) have been set up via which our employees support political candidates and organizations with donations. These are not donations by the company, but donations by the employees. The contributions donated are reported to the U.S. Federal Election Commission and published.

Code of Conduct , Publication of donations made via PACs (EMD Serono)
 

10

SO7

Number of legal actions as a result of anti-competitive behavior

Merck KGaA, Darmstadt, Germany is currently involved in two antitrust proceedings.

Risk Report 

SO8

Fines and sanctions for non-compliance with laws and regulations

There were no significant incidents of non-compliance during the 2011-2012 period.

1, 7, 8

Management approach

Product safety, Responsible marketing, Compliance

1

PR1

Analysis of the health and safety impact of products and services

Product safety, Sustainable products

1

PR2

Incidents of non-compliance with regulations on health protection and safety

Risks arising from litigation and legal proceedings are published in the Risk Report contained in the Annual Report.

8

PR3

Labeling of products and services

Product safety

8

PR4

Non-compliance with regulations concerning labeling of products and services

Risks arising from litigation and legal proceedings are published in the Risk Report contained in the Annual Report.

PR5

Measurement of customer satisfaction and results

The results of customer surveys are confidential.

Stakeholder dialogue, Sustainable products, Packaging, Interactions in the health care system

PR6

Responsible marketing

Responsible marketing

PR7

Non-compliance with regulations on marketing

Risks arising from litigation and legal proceedings are published in the Risk Report contained in the Annual Report.

1

PR8

Total number of substantiated complaints by customers regarding breaches of data protection

A corporate directive regulates data protection within Merck KGaA, Darmstadt, Germany. In line with increasing requirements, we resolved to expand our data protection organization. We received no significant complaints from external parties or regulatory agencies.

PR9

Fines and sanctions for non-compliance with laws and regulations

During the 2011-2012 period we recorded a normal course of business without any significant fines.