− The world’s premier

consumer health
CSR OF
company.
− The world’s largest
JOHNSON &
and most diverse
medical devices and
diagnostics company.
JOHNSON
− The world’s fourth-
largest biologics company.
− And the world’s eighth-largest pharmaceuticals
company

2
 CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) means the responsibility of an organization, institute,
company, or any industry that must be applied besides earning profits and execution of their
business. They can play a vital role for the society by utilizing their revenues with a fair and
transparent ambition to run both together i.e. their business in line with assisting the society.

CSR is a form of corporate self-regulation integrated into a business model. CSR policy
functions as a built-in mechanism whereby business monitors and ensures its active
compliance with the spirit of the law, ethical standards, and international norms. CSR is also
generally understood as being a way through which institutes attain a balance of economic,
environmental and societal imperatives.

CSR Key Issues: Environmental Management, Eco-Efficiency, Responsible Sourcing,

Stakeholder Engagement, Labor Standards and Working Conditions, Employee and
Community Relations, Social Equity, Gender Balance, Human Rights, Good Governance,
and Anti-Corruption Measures.

INTRODUCTION TO JOHNSON & JOHNSON

Business Sector: Health Care

Founded in: 1886

Operating in: 230 Operating Companies in 57 countries, selling products in

more than 175 countries worldwide.

Employees: Approximately 115.700

Initiator of CSR Activities: Robert Wood Johnson

Chairman: William C. Weldon.

Johnson & Johnson, USA has been ranked 4 times in the “Fortune Top 10” list recognized
as most admired companies in the United States.

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 CSR IN JOHNSON & JOHNSON

ENVIRONMENTAL PERFORMANCE
The J&J first began setting environmental goals in 1990. Since then, they have been reducing
waste, water and energy use, raw material and packaging into recycling.

Nearly all of their manufacturing sites and research and development facilities have ISO
14001 certification; a standard for strong environmental management systems.

Transparency

Goal: 100 percent of manufacturing and research and development facilities will provide
facility-or company-specific environmental sustainability information to the public.

Actual: 66 percent of facilities submitted information by year-end 2007 for posting on its
website i.e. http://www.jnj.com during 2008.

Energy Use – Carbon Dioxide Reduction

Goal: Absolute reduction in CO2 emissions of seven percent from 1990-2010.

Actual: 12.7 percent decrease from 1990-2007.

Water Use

Goal: Absolute reduction of 10 percent compared to 2005 baseline.

Actual: Absolute water use decreased six percent from 2005–2007.

Paper and Packaging

Goal: Eliminate PVC in primary, secondary, and tertiary packaging in the Consumer segment
by year-end 2007. Eliminate PVC in secondary and tertiary packaging in the Medical Devices
& Diagnostics (MD&D) and Pharmaceutical segments by year-end 2007.

Actual: We have eliminated 84 percent of our secondary and tertiary PVC packaging across
the company.

Waste Reduction

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Goal: Absolute reduction of hazardous and non-hazardous waste of 10 percent from 2005-
2010.

Actual: 4 percent decrease in hazardous waste and 10 percent reduction in non-hazardous

waste from 2005-2007.

Environmental Literacy
Goal: Increase employee awareness and understanding of global environmental issues. 100
percent of facilities have a five-year literacy plan and implement one environmental
education campaign each year from 2006–2010.

Actual: 92 percent of facilities deployed a literacy campaign in 2007. More than 60 percent
focused on climate change.

Climate Change
In2003, Johnson & Johnson adopted a climate friendly energy policy, which established
green house gas reduction goals and outlined a pathway to achieve them. It is supported by a
Carbon Dioxide (CO2) reduction capital funding process that makes $40 million per year
available for energy and greenhouse gas reduction projects across the company.

PROTECTION OF EMPLOYEES
“When you feel your best, you do your best. But
when something is troubling or hurting you, it’s so
difficult to be focused on work by setting those
concerns aside”.

At Johnson & Johnson, they support programs and services to help their employees live
healthier and safer lives – at work, home, and on the way.

Programs extend to employees’ loved ones, too.

They understand that when loved ones are in harm's way, employees can’t help but be
preoccupied and worried about them.

Their employees innovate, create, develop and improve our products every day. They strive
to do what’s right for them.

Their Credo guides them to be “responsible to our employees, the men and women who work
with us throughout the world.” This responsibility means providing a safe, fair and clean
work environment. It also holds us accountable to the mental well-being of employees.

To support this directive, we offer a variety of programs that help their employees and
aspirants to deal with stress, manage through personal endeavours, and achieve a healthy
work-life balance.

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Employee Assistance Programs

Since 1978, when Johnson & Johnson launched its first Employee Assistance Program
(EAP), they understood that employees’ personal challenges are inextricably linked to their
work lives. Issues related to relationships, child rearing, substance abuse, or other sources of
stress would have an acute impact on the health, happiness, and life stratum of our employees
and their families.

Their EAPs will continue to evolve as new issues surface and programs are needed to support
the mental well-being of employees. For example, multigenerational training to help
younger employees and older employees (baby-boomers) improve the way they communicate
and collaborate with each other.

They also work closely with our worldwide security group to ensure that if a tragedy or
emergency occurs at one of our facilities, we are ready and standby to support our employees.

In 2006, their EAPs expanded to have greater global reach across 466 locations and 57
countries. The programs were designed in a customized and culturally sensitive way.
Currently, EAP services are provided to 88 percent of our workforce, up from 75 percent in
2006, and 30 percent in 2005.

Resiliency Training

Employee assistance programs are both reactive and pro-active. Johnson & Johnson is now.

Mental Well-Being

“The well-being of employees and the success of a company go hand in

hand” means both are part and parcel.

Offering services to help employees learn to manage stress before it manifests in physical or
emotional illness.

Resiliency training gives employees stress management skills and provides techniques that
increase personal ability to quickly bounce back from the ups and downs of life.

In 2007, approximately 15 percent of our global workforce participated in this training.

Promoting Health Education

An important part of getting and staying healthy is being able to understand and communicate
with your doctor and engage in your health decisions. J&J work to help educate people about
health care issues and how to use the resources and services available to them.

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HEALTH

Healthy People

Promoting employee health and wellness makes good business sense and provides personal
benefits to our workforce.

As a health care company, enhancing health and wellness wherever we can is simply a logical
extension of our corporate mission.

Johnson & Johnson has a long-standing commitment to improve and sustain the health of its
workforce.

Healthy People program provides employee assistance, occupational health and health
promotion, and wellness services.

Efforts in these areas have expanded globally over the past several years with the goal of
creating a “Global Culture of Health” for our employees.

Johnson & Johnson and Tylenol

Crisis need not strike a company purely as a result of its own negligence or misadventure.
Often, a situation is created which cannot be blamed on the company - but the company finds
out pretty quickly that it takes a huge amount of blame if it fumbles the ball in its response.

One of the classic tales of how a company can get it right is that of Johnson & Johnson, and
the company's response to the Tylenol poisoning.

This shows how company is dedicated and ethically strong company.

What happened

In 1982, Johnson & Johnson's Tylenol medication commanded 35 per cent of the US over-
the-counter analgesic market - representing something like 15 per cent of the company's
profits.

Unfortunately, at that point one individual succeeded in lacing the drug with cyanide. Seven
people died as a result, and a widespread panic ensued about how widespread the
contamination might be.

By the end of the episode, everyone knew that Tylenol was associated with the scare. The
company's market value fell by $1bn as a result.

When the same situation happened in 1986, J&J’s R&D department acted quickly and found
the loop hole, and company management to admit their mistake and they repurchased the
medicine from all around the world and destroyed it.

7
Cost and Benefit

The cost was a high one. In addition to the impact on the company's share price when the
crisis first hit, the lost production and destroyed goods as a result of the recall were
considerable.

However, the company won praise for its quick and appropriate action.

Having sidestepped the position others have found themselves in - of having been slow to act
in the face of consumer concern - they achieved the status of consumer champion.

Within five months of the disaster, the company had recovered 70% of its market share for
the drug - and the fact this went on to improve over time showed that the company had
succeeded in preserving the long term value of the brand

In fact, there is some evidence that it was rewarded by consumers who were so reassured by
the steps taken that they switched from other painkillers to Tylenol.

HEALTHY WORKING ENVIRONMENT

Every day, J&J strive to provide products and services that help people lead healthier lives.
This commitment to human health extends to our employees, too.

The materials J&J use to research, develop and manufacture our products include chemicals
and active pharmaceutical ingredients. In some cases, manufacturing processes within
operations generate high levels of noise. These factors can pose potential health hazards to
employees if exposure remains uncontrolled.

Toxicology

Through their occupational toxicology program, we measure, evaluate and generate data
related to potential health hazards in the workplace. The toxicology team establishes
exposure standards that serve as an important step in protecting employees from potential
risks.

Industrial Hygiene
Members of their industrial hygiene staff regularly monitor the workplace for the presence of
chemical and physical hazards.

Techniques include using special equipment to measure noise, radiation and heat stress; using
air sampling pumps and sample media to collect breathable dust, vapors and gases.

Occupational Health

8
Occupational health team monitors employees on an ongoing basis. Staff members are
trained to address any health issue related to an employee’s work.

J&J also provide on-site occupational health clinics, which give employees immediate access
to specially trained medical personnel.

Physicians and nurses who evaluate employees are specialists in occupational medicine, with
many of them holding certification in their respective fields.

WORK PLACE SAFETY

Reducing Ergonomics Injuries

Ergonomics injuries, such as strains from doing repetitive work or overexertion, account for a
significant portion of injuries in the workplace.

Johnson & Johnson began to recognize ergonomics factors as an employee safety hazard in
the late 1970s.

Johnson & Johnson senior management endorsed an aggressive strategy to eliminate or

modify the high risk tasks. As a result of this effort, approximately 50 percent of the high
ergonomics risks in manufacturing were reduced to low risk.

Ergonomics initiatives continue today, and ergonomics-related injuries continue to decline.

At the end of 2006, ergonomics injuries made up 28 percent of lost workday cases.

Preventing Workplace Accidents and Illnesses

Zero injuries. Zero illnesses. This is goal. The design of our safety and industrial hygiene
programs helps attract and retain a talented, productive workforce, ensures the uninterrupted
delivery of our products and protects the communities in which we operate.

Workplace Safety

Approximately 115,000 employees make up the Johnson & Johnson Family of Companies.
Their goal is to provide every single one of them with a safe place to work.

 Machine safety

 Electrical safety

 Hazardous processes

 Contractor safety

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  Warehouse safety

 Fall prevention

 Office safety

These programs are effective, but we never stop looking for additional ways to improve.

History and Progress

In the 1970s, Johnson & Johnson recognized ergonomics factors as an employee safety
hazard.

In 1995, ergonomics injuries accounted for 48 percent of lost workday cases.

At the end of 2006, ergonomics injuries were just 28 percent of our lost workday cases. This
is a remarkable improvement when one considers that during this same period, the
proliferation of computers increased the opportunity for ergonomics injury, and many of our
manufacturing processes today still require repetitive motion, lifting and other movements
that can cause ergonomics injuries.

EDUCATION
Johnson & Johnson – Wharton Fellowship Program in
Management for Nurse Executives
For more than 25 years, they have partnered with the Wharton School at the University of
Pennsylvania to provide senior nurse executives with essential business management
knowledge for health care industry leadership. This program has graduated nearly 1,000
senior nurse executives from several countries since 1982. Many graduates have advanced to
senior management positions in their hospitals and health care organizations.

SOS Children Villages

SOS Children’s Villages addresses neglected, abandoned and orphaned children’s needs,
concerns and rights in over 130 countries, providing them with homes, vocational and
professional education, and health care.

Through SOS, j & j sponsor a program for 20 student nurses in Mogadishu, Somalia. Youth
are trained to become nurses, gaining valuable experience in surgery, trauma care and
midwifery along the way. Beyond providing full scholarships and preparing these students
for successful careers, the program fills a desperate need for more skilled nurses in Somalian
communities.

Johnson & Johnson School Health Leadership Program

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Children often turn to the school nurse when they feel sick or depressed. School nurses can
build relationships with students unlike any other teacher, as they are trained to deal with
health-related situations. Often, they are the first to recognize when a child is having an
alcohol, or drug-related problem.

For more than 20 years, this program has offered a training forum for school nurses on new
alcohol and drug prevention techniques, mental health issues, obesity, and HIV/AIDS-
prevention education plans.

RECOGNITIONS
Their efforts to protect the environment are frequently recognized by environmental
organizations and governments around the world.

Johnson & Johnson Ranked Third on Newsweek's Green Rankings List, 2009
National Environmental Performance Track Corporate Leader
100 Best Corporate Citizens
Dow Jones Sustainability Index, North America and Global Index
FTSE4Good Index
Best in Class Environmental & Social Performance
Climate Protection Award, 2006
New Jersey Governors Environmental Excellence Award
Pennsylvania Governors Award, Environmental Excellence
Shanghai Best Performer Water Conservation Corporation
One of the Best ISO 14001 Certified Companies
Waste Minimization and Environmental Management Awards
Robert W. Campbell Award

CONCLUSION
The features that made Johnson & Johnson's handling of the crisis – a success, included the
following:-

 They acted quickly, with complete openness about what had happened, and
immediately sought to remove any source of danger based on the worst case scenario-
not waiting for evidence to see whether the contamination might be more widespread

11
  Having acted quickly, they then sought to ensure that measures were taken which
would prevent as far as possible a recurrence of the problem.

 They showed themselves to be prepared to bear the short term cost in the name of
consumer safety. That more than anything else established a basis for trust with their
customers.

RECOMMANDATIONS

A properly implemented CSR concept can bring along a variety of competitive

advantages and Johnson & Johnson enjoying benefit of it.

 They are implementing CSR heartedly in the company that’s why it is ranked No.1 in
corporate social responsibility.

 Its competitors also working on CSR. But Johnson & Johnson is the leader.

 Johnson & Johnson is the trend setter of CSR.

 Johnson & Johnson is the inspiration for all the organizations.

 And they should continue to implement proper CSR as they are implementing today.

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Now, let’s may have another scenario of Sitara Chemical Industries Limited…

CSR OF SITARA
− Integrity and
Honesty
CHEMICALS
− Open, Respectful INDUSTRIES
and Supportive
− Prepared to take LIMITED.
challenges and see
them through
− Deep regards for
Customers, Business
partners and
employees
− Self-critical and accountable
− Quality in products and dealings

13
INTRODUCTION TO SITAR CHEMICAL INDUSTRIES
LTD.

Business Sector: MANUFACTURER: Caustic Soda, Chlorine Gas, Textile

Cloth Finishing and Processing, Textile Spinning, Chlor Alkali
Industries and Power Plant. & all Sorts of Yarns.

Founded in: 1956 by Haji Abdul Ghafoor (late) and Haji Bashir Ahmed

Operating in: Faisalabad (main office), and four regional locations i.e.
Islamabad, Lahore, Faisalabad, Multan, and Karachi. Sitara
Group of Industries running four companies and three charities.

Group Companies: Sitara Textile Industries Ltd., Sitara Peroxide Ltd., Sitara
Energy Ltd., and Sitara Developers (Pvt.) Ltd.

Group Charities: Aziz Fatima Hospital, Sitara Institute of Management &

Technology, Aziz Fatima Girls High School

Product/Services: Liquid Chlorine, Bleaching Powder, Hydrochloric Acid,

Calcium Chloride, Ferric Chloride, Magnesium Chloride,
Hydrated Lime, Other Chlor Allied Products, Ammonnium
Chloride, Caustic Soda Flakes, Ammonium Bicarbonate, and
Cuperous Chloride.

Main Market: North America, South America, Eastern Europe, Southeast

Asia, Africa, Oceania, Middle East, Eastern Asia, and Western
Europe

Main Customers: Water Treatment Companies, Oil Drilling Companies, Textile

Units, Soap Units, Constructions Companies etc

Total Annual Sales Volume: US $10 Million – US $50 Million

Total Annual Purchase Volume: US $10 Million – US $50 Million

Export Percentage: 41% – 50%

Employees: 1,000 Approx.

Initiator of CSR Activities: Mr. Muhammad Adrees

Chairman: Mr. Muhammad Adrees

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 SITARA CHEMICALS INDUSTRIES LTD
Sitara Chemical Industries Ltd is a renowned entity of Sitara Group of Industries is well
acknowledged for its contribution to socio-economic uplift of the region and strengthening
social safety nets.

SCIL was incorporated in 1981 and began producing caustic soda in 1985, initially at a rate
of 30 metric tons Caustic a day. The plant’s capacity was gradually increased over years to
current level of 545 metric tons a day.

In addition, various by-product facilities have been added and expanded from time to time to
cope with growing demand. Company entered into Textile Spinning Business in 1995.

Its specialty chemicals and export division was established in 2001 and agri chemicals
division in 2003.

Chief Executive Officer (CEO): Mr. Muhammad Adress.

SITARA CHEMICALS AND CSR

“We believe in stimulating and challenging team oriented
work environment that encourages, develops and rewards
excellence and diligently serve communities, maintaining
high standards of moral and ethical values”.

Company is investing in healthcare and skills development of its people and peoples of the
area as well as education of best of the brains. They have to keep improving our people in the
areas where they need to improve.

Education

Sitara Institute of Management & Technology

Recently, in support of Social Corporate Responsibility (CSR), the Industries has established
the Sitara Institute of Management & Technology (SIMT) under the Aziz Fatima Trust
(AZT) to impart quality training in various technical trades.

15
  To achieve this potential of Technical & Managerial skills as a key contributor to
socio-economic and educational development. Sitara Group of Industries felt a dire
need of establishing its own institute, which would not only take hold requirement of
industries in Faisalabad but will contribute in other nation building projects as well.

 Thus with this vision, SIMT came into being under Aziz Fatima Trust (Education).

Aziz Fatima Girls High School

This school is situated in Gulshan-e-Eqbal to provide quality education at doorstep to the

girls residing in this area. It has highly qualified and trained teachers. School has just started
its first educational year.

Islamabad, Jamiat Trust Taleem-ul-Quran, Message

Foundation etc.

TRAINING & DEVELOPMENT ACTIVITIES

Training & development activities conducted by HR department are as follows:-

 The Senior Executive’s lectures and discussion sessions are being arranged for the
fresh graduates & middle management employees.

 Academic & on job training (OJT) of plant operators and supervisors is being
conducted by Senior Manager Training of the company.

 Introduction numerous tools to train, re-train/upgrade our people.

 The Company launched training program at Sitara Chemical Industries Ltd in

collaboration with Apprenticeship Board back about 12 years ago in year 1994.

 Sitara Chemical Industries Ltd was registered as Apprenticeship Training Center.

Seventeen (17) technical trades have been included to impart training to youth of
Pakistan holding Matriculation / F.Sc certificates.

 The renowned trainers are also called at the Center to impart training in the fields of
technical, supervisory and management skills.

16
HEALTH

Aziz Fatima Hospital

The CEO is the Managing Trustee of 250 beds in Aziz Fatima Hospital. Additionally, he has
a philanthropist role towards various national level Charities such as Pakistan Kidney
Institute.

Exciting and Challenging Opportunities at Smarts Health

& Fitness Club (male/female)

Sitara Group is in the process of establishing state-of-the-art “Smarts Health & Fitness Club”
under Sitara Developers Pvt Ltd at Sitara Mall Faisalabad and in other major cities of
Pakistan.

Sitara Chemical Primary Healthcare Centre

• Mother & Child Healthcare

• Ultrasound services

Free Eye Camp at Sitara Primary Health Care Center

 A free eye camp was arranged jointly by Sitara Chemical Industries and Aziz
Fatima Hospital at Sitara Primary Health Care Centre in 61/RB on 10.12.2009.
 In the camp, besides the routine patient check up, checking of the eye sight with the
help of computer, provision of the common and eye drugs (free of sugar) and glasses
were arranged.

 Total 262 patients were checked, 103 male and 159 female, among them 27 patients
were picked up for eye surgery and were called at Aziz Fatima Hospital.

 All arrangements were done for the reception of the patients at Aziz Fatima Hospital
Operation Theater.

17
RECOMMANDATIONS
Sitara Chemicals Industries Ltd. is doing good job in Corporate Social Responsibility (CSR),
but I would like to suggest something as its competitors are doing much more work in
CSR.

Itehad Chemicals Industries Ltd (ICL) has good contribution in environment and
sustainability. They have strong commitment towards healthy environment.

ICL has taken important measures starting with the formation of an Energy Conservation
Task Team (ECTT) to identify various conservation measures and constraints.

The team constantly analyzes system design, process design, and re-engineering of various
factory operations in order to make the processes more efficient and minimize wastage of
resources.

Whereas, SCIL has no significant role towards environment & sustainability so they need to
improve it.

Secondly, Imperial Chemical Ltd. (ICI) which is competitor of SCIL also working for
natural disaster relief as manifested in its CSR.

SCIL should work on it.

ICI took initiative to clean Karachi they initiate the movement to clean the environment of
Karachi that shows that they care the society and want to do something better for the
society/

SCIL should consider these things in their CSR.

THANK YOU

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ONLINE SOURCE (Websites)

 http://www.J&J.com

 http://www.investor.jnj.com

 www.scribd.com (various authors)

 http://www.sitara.com.pk

 http://www.icipakistan.com

 http://www.ittehadchemicals.com

 http://www.nasdaq.com

 http://sitarachemical.trustpass.alibaba.com/aboutus.html

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