Workforce structure XLS Download Number of total employees As of Dec. 31 2008 2009 2010 2011 2012 Total employees 32,800 33,062 40,562 40,676 38,847 Men Not recorded 19,097 23,171 23,347 22,505 Women Not recorded 13,965 17,391 17,329 16,342 The “Fit for 2018” efficiency program made a major impact on HR work in 2012. In the majority of countries in which Merck KGaA, Darmstadt, Germany is represented, structural requirements and agreements were reached with the respective social partners in order to create a socially responsible approach to workforce reduction. For example, a partial retirement program and a voluntary leaver program were offered in Germany, with [...]

In accordance with our values, we live a culture of mutual esteem and respect. We want to strengthen our company’s ability to act by recruiting, developing and motivating the most suitable employees. In addition, we would like to further enhance the performance culture of our company and promote the diversity of our workforce. In 2011, we started the “Fit for 2018” transformation program. Fit for 2018 We want to attract, develop and retain qualified employees. Attracting employees Avoiding accidents is an important part of our responsibility. Occupational safety We believe that diversity promotes innovation and better team performance. Diversity and Inclusion [...]

As an innovative company, we need talented and well-trained employees. At all sites, we face the challenge of attracting talented people to our company and retaining qualified employees. Particularly in Europe and the United States, but also in China and other Asian countries, we must adapt to stronger competition for specialists. We are constantly seeking chemists, pharmacologists, medical scientists, biostatisticians, biochemists, business administration experts, engineers, and IT specialists, as well as people who are able and willing to take on managerial responsibility. In emerging countries, we face the particular challenge of attracting qualified executives [...]

As a family-friendly company, we want to help our employees to achieve a good balance between their professional and personal objectives. For instance, we help them to maintain and strengthen their motivation and performance potential. In addition, we further their trust in our company. Therefore, our employees can make use of flexible working models and childcare options, making it easier for them to achieve their personal goals. We also offer our employees ways to better reconcile the demands of a career while caring for family members as well as health management support. Flexible working models In Germany and other countries, we offer numerous working model [...]

XLS Download Labor practices and decent work: Management approach and indicators UNGC GRI indicator Comments Reference Status 1, 3, 6 Management approach HR Management, Dialogue and co-determination, Occupational health and safety, Attracting and developing employees, Diversity Aspect: Labor/Management relations 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 [...]

[...] standards. Globally binding rules of conduct Our Code of Conduct is a compulsory set of rules for all employees. It explains the principles for interacting with business associates, general partners, colleagues, and employees, as well as with the communities in which we operate. Thus, it supports all employees in acting ethically – not only in their interactions with one another, but also outside the company. Our Social Charter supplements the Code of Conduct with globally valid principles regarding human rights as well as the core labor standards of the International Labour Organization (UK Bribery Act. Depending on the course content, some courses on specific [...]

We believe that we can strengthen our employees' trust in the company through open and honest communication. We therefore inform them regularly about the latest developments. Information and communication channels We provide employees Group-wide with a broad range of information on the latest topics, which we publish in different languages on the intranet. In 2012, we introduced the possibility for our employees to comment on the news items directly online. We set up an additional intranet platform for the “Fit for 2018” transformation program; the platform provides information as well as a discussion forum. In addition, numerous additional information media [...]

[...] new appointments to key positions in 2011. These included 32 positions that were filled by non-German employees and eight by female employees. In addition, we have redefined the relationships between our divisions, Group functions and legal entities. In this way, we want to streamline our organizational structure and accelerate decision-making processes. In early 2012, we presented our plans for an efficiency program to our employees and the public. These plans include restructuring as well as reductions of the workforce across all business sectors and regions. Without first announcing detailed plans on cost and workforce reductions, we held consultations with the [...]

We believe that workforce diversity promotes innovation and better team performance. A good balance between different cultures, nationalities, and age groups as well as between male and female employees is conducive to our entrepreneurial success. We have therefore set ourselves the goal of furthering workforce diversity and including all employees in company operations in the best possible way (workforce inclusion). Increasing the proportion of women in management positions is important to us. Internationality and demography are two further areas of focus of our diversity activities. During the 2011-2012 period, we launched a wide variety of measures to achieve [...]

As of December 31, 2012, a total of 38,847 employees worked for us at 203 companies in 66 countries. In accordance with our values, we live a culture of mutual esteem and respect. Through our Social Charter, we commit ourselves to complying with fundamental labor and social standards, as well as the International Labour Organization’s (Global Compact and the Responsible Care® program of the chemical industry. Through global policies and guidelines, we ensure that these standards are implemented at our sites even beyond the legal requirements. Strategic goals Our strategic goals for our employees include developing a culture of goal orientation and recognition of [...]

Region: Europe Sales: 3,943 € million (37%) Employees: 20,777 (54%) Region: North America Sales: 2,128 € million (20%) Employees: 4,848 (12%) Region: Emerging markets Sales: 3,712 € million (34%) Employees: 11,642 (30%) Region: Rest of world Sales: 958 € million (9%) Employees: 1,580 (4%) Merck KGaA, Darmstadt, Germany is a global pharmaceutical, chemical and life science company with total revenues of nearly € 11 billion in 2012 and a history that began in 1668. Around 39,000 employees at 203 companies in 66 countries contribute to shaping our future. 65 production sites are located in 22 countries. Sales by region 2012 Employees by region 2012 Corporate [...]

[...] protection,Carbon Disclosure Project 1 EC3 Company retirement pension Pension plans , Indicators: Employees EC4 Financial assistance received from government Accounting policies for property, plant and equipment , Property, plant and equipment , Research and development spending Aspect: Market presence 1 EC5 Ratio of standard entry level salary compared to local minimum salary According to the requirement of our Social Charter, all sites guarantee a salary above the local minimum salary. Attracting and developing employees, Social Charter, Indicators: Employees EC6 Locally based suppliers Merck KGaA, Darmstadt, Germany does not have any specific, global policies [...]

[...] In addition to this, the standard lays down mandatory rules of workplace conduct for all warehouse employees. All warehouses are to be audited thoroughly and regularly to check for compliance with safety requirements. For shipments transported by Merck KGaA, Darmstadt, Germany or on behalf of Merck KGaA, Darmstadt, Germany, safety is our top priority. We want to ensure that shipments reach our sites and customers undamaged, with the correct labeling and documentation. Several substances that we ship are classified as hazardous materials. Hazardous goods transport – whether by road, rail, air, or water – is heavily regulated across the globe by conventions such [...]

[...] Group-wide guideline that specifically applies to our pharmaceutical activities in the US market. For employees of our German legal entities, there is also an internal guideline on interacting with physicians, hospitals, pharmacies, and other members of professional circles, as well as with patient organizations. Merck KGaA, Darmstadt, Germany is furthermore a member of the Association for the Voluntary Self-Control of the Pharmaceutical Industry (FSA), which has defined rules of conduct for collaboration between physicians and industry. When violations of the FSA Code are suspected, members and third parties can file complaints with an arbitration board. At the [...]

[...] Germany for multiple years. Numerous initiatives are either supported or even started up by employees. In 2011, 3,675 employees strengthened corporate engagement at Merck KGaA, Darmstadt, Germany by making donations or doing volunteer work for charitable purposes, and in 2012 6,987 employees did so. Examples include constructing and running a hospital on the island of Baba Bhit in Pakistan, as well as sponsoring projects to help integrate disadvantaged youth in Brazil. The legal entities in India and China award scholarships that enable young people to receive a good education, which they could otherwise not afford without support. Employees at our legal entity in [...]

We use a structured guideline system to translate our Values and Mission Statements into concrete terms. The purpose is to ensure that all employees know the relevant rules and can apply them in the workplace. Proven management systems ensure that the processes relevant to our CR strategy are steered and monitored systematically. Group-wide guideline system The Group-wide guideline system contains all company guidelines and explains which guidelines apply to which parts of the company. They range from the charters and principles valid for the entire company to specific standards and procedures for divisions and legal entities of the Merck KGaA, Darmstadt, Germany, [...]

[...] To date, the GPHF has supplied more than 570 Minilabs at cost, to over 80 countries. Sensitizing our employees The fight against product-related crime and counterfeit products is an integral part of our risk management system. In order to minimize risks, we provide training to employees of our legal entities, as well as to business partners in the countries in which we lack our own legal entity. In 2011 and 2012, we held multi-day workshops and training seminars in Africa, China, North America, and Latin America. We furthermore conduct audits of our business partners. We are currently drafting a product crime manual and plan to sensitize employees to the topic.

Our business operations intersect the interests of many people. The dialogue with relevant stakeholder groups is therefore of fundamental importance to us. These stakeholders include our employees, our business partners, the owner family, investors, regulatory agencies, associations, neighbors in the vicinity of our sites, and non-governmental organizations (NGOs). This continuous exchange enables us to demonstrate how we live our Values and to show the CR strategy we have chosen to pursue. This dialogue should also convey our esteem for our stakeholders. We strive to sustain and build trust and – wherever possible – harmonize divergent interests. Our primary [...]

Merck KGaA, Darmstadt, Germany sees itself as part of the community, not only at its individual locations, but also globally. In the context of our business activities, we play an important role in the community at our respective locations. We create jobs and invest in the qualification and social security of our employees. Many companies supply us locally with their goods and services. In addition to this, we engage ourselves in charitable initiative – in many cases together with our employees. Our corporate social responsibility engagement primarily focuses on those areas in which we have specific expertise stemming from our core businesses. We are thus engaged [...]

[...] guidelines and instruction manuals such as our EHS, Security and Quality Manual, which tells our employees how to apply the EHS principles in their day-to-day work. Our guidelines are based on the Responsible Care Charter, which the chemical industry drafted in 2005. Overall responsibility for environment, health, and safety is born by Executive Board Member Bernd Reckmann. The function Environment Health Safety Security Quality (EQ) is responsible for globally steering all environmental measures. At the individual sites, the local EHS managers are in charge of operational environmental protection measures. Through internal and external audits, EQ monitors [...]

[...] for the risk-benefit evaluation of drugs. Our Quality Training Management standard applies to all employees whose work impacts the quality and safety of a drug or clinical trial data. This standard describes how to conduct training workshops and seminars at both the Group level as well as locally within the legal entities. Compliance with these requirements is regularly reviewed during the audits of the safety quality system. GMP production In producing pharmaceuticals, quality assurance is a key topic because deviations can impact patients' health. In order to ensure that pharmaceuticals meet the standards set for identity, purity, potency and safety, they must be [...]

[...] Merck KGaA, Darmstadt, Germany sites worldwide, the local EHS managers are in charge of this. Our employees regularly receive training and obtain additional qualifications. In 2011-2012, Merck KGaA, Darmstadt, Germany made significant revisions to its Group-wide “Water Protection” standard. Based on our Responsible Care obligations, this standard defines the processes and responsibilities required for clean wastewater at Merck KGaA, Darmstadt, Germany, and also covers the hiring of third parties to handle it. The standard also requires all sites to estimate the specific risks and effects of wastewater, as well as to assess these risks and effects using

[...] and legal form Company profile 2.7 Markets served Company profile 2.8 Scale of organization Number of employees, Products and sites, Net sales , Capitalization 2.9 Significant changes regarding size, structure or ownership Scope of consolidation , Fit for 2018 2.10 Awards Awards and recognition 3. Report Parameters 3.1 Reporting period Report profile 3.2 Date of publication of the most recent reports Report profile 3.3 Reporting cycle Report profile 3.4 Contact person for questions regarding the report Report profile 3.5 Process for defining report content Report profile 3.6 Boundary of the report Report profile 3.7 Specific limitations on the scope or boundary of [...]

Strategy and management Products Suppliers Employees Environment Society Strategy and management XLS Download Goals: CR strategy and management Strategic goal Action By? Status in 2011 and 2012 Status Improve management of CR topics Establish a CR Committee End of 2011 The CR Committee was founded in 2011. It convened four times in 2011 and 2012. Legend: Achieved In progress Not achieved New goal Products XLS Download Goals: Product safety Strategic goal Action By? Status in 2011 and 2012 Status Establish a globally uniform hazard and risk communication system for all relevant Merck KGaA, Darmstadt, Germany chemicals in the supply chain, incorporating the [...]

The figures presented below pertain to Merck KGaA, Darmstadt, Germany, unless otherwise indicated. You can find further information on our reporting framework and data collection systems in our report profile. The following indicators have undergone a limited assurance audit by KPMG AG Wirtschaftsprüfungsgesellschaft. Indicators in this chapter: Indicators: Economics Indicators: Compliance Indicators: Employees Indicators: Environment Indicators: Society

Merck KGaA, Darmstadt, Germany’s corporate culture has always been characterized by responsible behavior – whether with respect to products, employees, the environment, or society. Consequently, Merck KGaA, Darmstadt, Germany is committed to upholding human rights within its sphere of influence and welcomes the Guiding Principles for Business and Human Rights adopted by the UN Human Rights Council in 2011. This set of principles created a global framework for countries to protect human rights, and for companies to respect these rights, by setting forth key principles in their business practices. Countries are obliged to establish a regulatory framework for [...]

Our corporate culture has always been characterized by responsible behavior – whether with respect to our products, our employees, the environment, or society. Our approach and our conduct have evolved from a history dating back nearly 350 years; they are derived from our Mission Statement and our Values, and shaped by the external initiatives that we support. Our aim is to operate as a global company that creates added value for consumers, our market partners and the community and that helps them lead better lives. We strive to achieve positive recognition for our company in the community and are committed to operating safely and respecting the environment. Our [...]

[...] We strengthen our company's ability to act by recruiting, developing and motivating the most suitable employees. We want to help society function better and aim to set the example for ethical conduct. Mankind is confronted with major global issues, such as climate change, the increasing demand for affordable, renewable energy, and a growing need for access to health – especially in emerging and developing countries – and the prevention of greenhouse gas emissions. We are aware that our business operations impact our environment and the people around us. However, we also believe that responsible company management makes a contribution toward resolving global [...]

[...] process safety involves the interaction of man and machine, we consider it highly important for our employees to be well-trained and to receive further training on a regular basis. In 2012, a new internal continuing education program was set up for site managers – as well as for production, engineering and EHS managers at the individual sites – and rolled out within the Chemicals divisions. The primary topics here included systematic risk identification in processing plants, explosion protection, and static electricity.

[...] in accordance with the charters, guidelines and principles of our company. All legal entities and employees are part of our Group-wide commitment to increasing access to health. Through our programs and charter on Access to Medicines in Developing Countries, we strive to lead and form partnerships to improve global access to medicine, thereby improving the lives of patients. The Charter covers the following topics: pharmaceutical donations and philanthropy, research and development for neglected tropical diseases (

Corporate responsibility has always been an integral part of our corporate culture. It is reflected in both our Mission Statement and our Values. Our corporate responsibility strategy allows us to systematically address the key issues impacting our business and stakeholders, with whom we maintain a close dialogue at all times. We have specified our requirements for the responsible conduct of all employees in numerous guidelines. With the help of management systems, we set and steer goals, actions and responsibilities in key action areas. Mission Statements and Values guide us in our daily work. Company values and external initiatives Our CR strategy covers three [...]

[...] Bangalore, and Chennai. Our Philharmonic Orchestra thus helps to present our corporate culture to employees, customers and many other people. In summer 2013, our Philharmonic Orchestra will be participating in an international jazz festival in Istanbul.

[...] Darmstadt, Germany and the GIZ have jointly trained more than 1,000 people as trainers, including employees of universities (Thailand) and of governmental organizations (such as the Department of Science and Technology of the Philippines as well as the Indonesia State Ministry of Environment). The trainers then act as multipliers, passing on the knowledge acquired to their institutions and countries. To date, the trained universities in Thailand have now properly disposed of eight tons of lab waste, and government labs in the Philippines have properly disposed of two tons of chemicals via a project partner. Furthermore, lab chemicals users were trained on how to [...]