Social Performance Indicators
Labor Practices and Decent Work |
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DMA* and Indicators |
Comment |
Link |
External Assurance |
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Aspect: Employment |
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G4-DMA |
Management Approach |
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Attractive employer |
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G4-LA1 |
Total number and rates of new employee hires and employee turnover by age group, gender, and region |
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G4-LA2 |
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation |
At Merck KGaA, Darmstadt, Germany (20% of the company's total workforce), part-time employees receive the same job benefits as full-time workers. Employees with temporary contracts, however, are not entitled to all company benefits, such as a company pension. |
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G4-LA3 |
Return to work and retention rates after parental leave, by gender |
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Aspect: Labor/Management relations |
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G4-DMA |
Management Approach |
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G4-LA4 |
Minimum notice periods regarding operational changes, including whether these are specified in collective agreements |
The regulations on periods of notice vary worldwide. We apply the rules that are in force locally. There is not need for us to track periods of notice at Group level. |
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Aspect: Occupational Health and Safety |
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G4-DMA |
Management Approach |
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G4-LA5 |
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs |
Occupational health and safety committees are required by law in Germany, which is why all employees of Merck KGaA, Darmstadt, Germany sites (Darmstadt and Gernsheim, Germany) are represented by such a committee, one per site. These employees account for around 19% of our total workforce. The majority of facilities outside of Germany also have health and safety committees to represent their employees. Each individual site is responsible for arranging and maintaining such committees. |
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G4-LA6 |
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and gender |
We have identified the lost time injury rate (LTIR) as a key performance indicator for our company. |
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G4-LA7 |
Workers with high incidence of high risk or diseases related to their occupation |
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G4-LA8 |
Health and safety topics covered in formal agreements with trade unions |
Health and safety issues are governed Group-wide by our EHS Policy. The organizational implementation of the policy is the responsibility of our individual sites and is subject to local laws and regulations. The facilities of Merck KGaA, Darmstadt, Germany (Darmstadt and Gernsheim - approx. 19% of our total workforce) are subject to bylaws on occupational health and safety. |
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Aspect: Training and Education |
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G4-DMA |
Management Approach |
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Good leadership |
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G4-LA9 |
Average hours of training per year per employee by gender and by employee category |
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Indicators: Employees |
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G4-LA10 |
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings |
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G4-LA11 |
Percentage of employees receiving regular performance and career development reviews, by gender and by employment category |
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Aspect: Diversity and Equal Opportunity |
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G4-DMA |
Management Approach |
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Diversity and equal opportunity |
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G4-LA12 |
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. |
Since there is no globally uniform definition of the term “minority”, we do not record this sort of data. Moreover, many countries in which we operate have strict data privacy regulations governing the recording of personal employee data. |
Diversity and equal opportunity |
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Aspect: Equal remuneration for women and men |
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G4-DMA |
Management Approach |
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G4-LA13 |
Ratio of basic salary and remuneration of women to men, by significant locations of operation |
The salaries we offer are predicated on the respective job description and are based on our Global Job Catalog, which has fixed salary bands that are identical for men and women. Variable salary components that fall under performance-based compensation are paid on the basis of whether mutually agreed targets have been achieved. A performance management system governs this process. |
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Aspect: Supplier Assessment for Labor Practices |
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G4-DMA |
Management Approach |
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G4-LA14 |
Percentage of new suppliers that were screened labor practices criteria |
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G4-LA15 |
Significant actual and potential negative impacts for labor practices in the supply chain and actions taken |
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Aspect: Labor Practices Grievance Mechanisms |
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G4-DMA |
Management Approach |
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G4-LA16 |
Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms |
We track all complaints via our central reporting system and categorize them based on their content. In the future we will implement appropriate sub-categories to adequately reflect the specific subject matter of the complaints. |
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Human Rights |
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DMA* and Indicators |
Comment |
Link |
External Assurance |
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Aspect: Investment |
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G4-DMA |
Management Approach |
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G4-HR1 |
Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening |
Our Responsible Sourcing Principles and our Global Policy Business Partner Risk Management identify human rights issues as the foundation for significant investments. |
Human rights |
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G4-HR2 |
Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained |
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Aspect: Non-discrimination |
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G4-DMA |
Management Approach |
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G4-HR3 |
Total number of incidents of discrimination and corrective actions taken |
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Aspect: Freedom of association and collective bargaining |
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G4-DMA |
Management Approach |
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Supply chain standards |
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G4-HR4 |
Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights |
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Aspect: Child Labor |
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G4-DMA |
Management Approach |
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Supply chain standards |
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G4-HR5 |
Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor |
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Supply chain standards |
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Aspect: Forced and Compulsory Labor |
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G4-DMA |
Management Approach |
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Supply chain standards |
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G4-HR6 |
Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor |
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Aspect: Assessment |
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G4-DMA |
Management Approach |
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G4-HR9 |
Total number and percentage of operations that have been subject to human rights reviews or impact assessments |
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Aspect: Supplier Human Rights Assessment |
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G4-DMA |
Management Approach |
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G4-HR10 |
Percentage of new suppliers that were screened using human rights criteria |
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Supply chain standards |
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G4-HR11 |
Significant actual and potential negative human rights impacts in the supply chain and actions taken |
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Supply chain standards |
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Aspect: Human Rights Grievance Mechanisms |
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G4-DMA |
Management Approach |
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G4-HR12 |
Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms |
We track all complaints via our central reporting system and categorize them based on their content. In the future we will implement appropriate sub-categories to adequately reflect the specific subject matter of the complaints. |
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Society |
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DMA* and Indicators |
Comment |
Link |
External Assurance |
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Aspect: Anti-Corruption |
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G4-DMA |
Management Approach |
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G4-SO3 |
Total number and percentage of operations assessed for risks related to corruption and the significant risks identified |
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G4-SO4 |
Communication and training in anti-corruption policies and procedures |
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G4-SO5 |
Confirmed incidents of corruption and actions taken |
As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities. |
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Aspect: Public policy |
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G4-DMA |
Management Approach |
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G4-SO6 |
Total value of political contributions by country and recipient/beneficiary |
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Stakeholder dialogue |
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Aspect: Anti-competitive behavior |
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G4-DMA |
Management Approach |
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Compliance |
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G4-SO7 |
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes |
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Aspect: Compliance |
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G4-DMA |
Management Approach |
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G4-SO8 |
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations |
As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities. |
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Aspect: Supplier Assessment for Impacts on Society |
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G4-DMA |
Management Approach |
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G4-SO9 |
Percentage of new suppliers that were screened using criteria for impacts on society |
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G4-SO10 |
Significant actual and potential negative impacts on society in the supply chain and actions taken |
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Aspect: Grievance mechanisms for Impacts on Society |
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G4-DMA |
Management Approach |
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G4-SO11 |
Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms |
We track all complaints via our central reporting system and categorize them based on their content. In the future we will implement appropriate sub-categories to adequately reflect the specific subject matter of the complaints. |
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Product Responsibility |
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DMA* and Indicators |
Comment |
Link |
External Assurance |
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Aspect: Customer health and safety |
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G4-DMA |
Management Approach |
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Drug safety |
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G4-PR1 |
Percentage of significant product and service categories for which health and safety impacts are assessed for improvement |
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Drug safety |
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G4-PR2 |
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes |
As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities. |
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Aspect: Product and service labelling |
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G4-DMA |
Management Approach |
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Drug safety |
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G4-PR3 |
Type of product and service information required by the organization's procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements |
Within our businesses, product labels are both important and mandatory. All pharmaceuticals and chemicals are subject to reporting and notification requirements that we fulfill. The individual requirements are reported in the respective chapters. |
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G4-PR4 |
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes |
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Drug safety |
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G4-PR5 |
Results of surveys measuring customer satisfaction |
Within the scope of our B2B activities, we maintain close contact with our customers and endeavor to find out their needs and their opinion of us as business partners. Individual customer survey results, which are used for strategy development, are completely confidential |
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Aspect: Marketing communications |
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G4-DMA |
Management Approach |
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G4-PR6 |
Sale of banned or disputed products |
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G4-PR7 |
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes |
With regard to marketing activities, we do not report on the number of regulation violations or breaches of voluntary rules of conduct. As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities. |
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Aspect: Customer privacy |
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G4-DMA |
Management Approach |
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G4-PR8 |
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data |
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Aspect: Compliance |
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G4-DMA |
Management Approach |
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G4-PR9 |
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services |
As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities. We do not report the monetary value of fines. |
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