Corporate responsibility strategy and organization

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 challenges, helps ensure viability and increases our acceptance in society.

But what does responsible company management mean for us? What topics are especially relevant to us locally and globally? What impact do our business operations have on people and the environment? What solutions to social challenges do our stakeholders expect? What risks do these solutions entail – and what opportunities? What goals should we achieve in the coming months and years?

To answer these questions, in 2011 we revised our Corporate Responsibility (CR) strategy based on our corporate strategy. Our CR strategy covers the three action areas products, the environment, and people. Important main topics are innovations and global trends, energy and climate, ethics (e.g. human rights and animal welfare) and our social engagement. The diagram above provides an overview of the strategic approaches and relevant topics, which are explained in detail in other sections of this report.

CR organization

Implementation and review of the CR strategy are steered by the Group-wide CR Committee, which consists of representatives from divisions as well as from relevant Group functions, such as Environment Health Safety Security Quality, Human Resources, and Procurement. Karl-Ludwig Kley, Chairman of the Executive Board, is a member of the CR Committee, which was established in 2011. Prior to that, the Executive Board regularly handled topics related to corporate responsibility. Kley became chairman of the CR Committee in March 2013.

The committee’s tasks include setting and regularly reviewing the goals and measures that pertain to our CR strategy. In addition, the committee ensures that initiatives of the Group functions, divisions and legal entities are in line with the Group-wide CR strategy. It is also responsible for developing suggestions for better aligning CR goals and actions with the corporate strategy. Measures adopted by the Committee are embedded in the operative business by experts in the specific topic and by  interdisciplinary project teams.

The CR Committee normally meets two to three times per year. The main focus in 2011 and 2012 was on the topics of access to health, animal welfare, human rights, and environmental and social standards in the supply chain.

The CR Committee reviews the CR strategy with regard to coverage of the topics relevant to Merck KGaA, Darmstadt, Germany and the need for action. We aim to identify challenges early on in order to minimize risks, but also to seize the opportunities that arise for our business from societal changes. In this context, a mega trend analysis and a human rights risk assessment were conducted during the 2011-2012 period. We also use the results from the materiality analyses conducted regularly during the preparation of our CR reports in order to ensure that all the relevant topics are addressed.