http://www.jnj.com/connect/about-jnj/views-positions/business-practices/?pageNo=2http://www.jnj.com/connect/about-jnj/views-positions/business-practices/?pageNo=2http://www.jnj.com/wps/wcm/connect/1a90d800496f217f8a9efb03eabf3a7e/Standards-for-Responsible-External-Manufacturing.pdf?MOD=AJPERES&useDefaultText=1&useDefaultDesc=1http://www.jnj.com/wps/wcm/connect/1a90d800496f217f8a9efb03eabf3a7e/Standards-for-Responsible-External-Manufacturing.pdf?MOD=AJPERES&useDefaultText=1&useDefaultDesc=1Johnson & Johnson - IndexJohnson & Johnson - report - IndexPROFILES IN COMMITMENT
Supporting Sustainability in
Our External Supply Chain
T The Johnson & Johnson Family of
Companies operate 150 manufacturing plants around the world. However, these plants
represent only a fraction of our entire supply chain, a large and complex network
of thousands of suppliers whose materials, products and services help us supply the
marketplace with innovative healthcare products. We constantly strive to do business
with companies that share our values for product quality, environmental protection
and social responsibility. We asked Mike McGranaghan, Chief Procurement Officer,
to reflect on sustainability in our external supply chain.
Q:
Mike, what does it mean to have a sustainable
supply chain and why is it important?
MCGRANAGHAN: Sustainability in a supply chain means we are
considering social and environmental impacts as we manage
materials and services from our suppliers to our customers.
From purchasing decisions like where we source paper, to
distribution and logistics decisions that could impact our
contribution to climate change, we can use our considerable
purchasing power to influence our suppliers. Society is asking
more from us. We are increasingly being expected to ensure
that our suppliers are mindful of their environmental and
social responsibilities, and it’s important that we provide
leadership in this area.
Q:
So how sustainable is the supply chain for
the Johnson & Johnson Family of Companies?
MCGRANAGHAN: Great question — and a tough one!
We have some real pockets of excellence — for example,
a long-term supplier diversity program, forest products
purchasing guidelines, an environmentally friendly
transportation program and external manufacturing
standards. But in any large, global supply chain, robust
sustainability is complex and rife with opportunity.
Inherent in the traditional approach to business, we’re
good at managing our supply chain for operational
efficiency and financial performance, but I think we’re
going to find a lot of opportunity as we continue to
mature our sustainability efforts.
PROFILES IN COMMITMENT
Q:
Mike McGranaghan
Chief Procurement Officer
Johnson & Johnson
How does the Company share its values with
suppliers?
MCGRANAGHAN: Because we hold ourselves to high standards
of ethical behavior, product quality and social responsibility,
we want to do business with like-minded suppliers. Our
purchasing agreements include an expectation of compliance
with legal requirements related to business conduct, labor
and employment practices, our Employment of Young
Persons policy, and environment, health and safety (EHS)
regulations. We also have Standards for Responsible External
Manufacturing that help us select manufacturing partners
who operate in a manner consistent with our values. At the
end of 2007, we had shared these with and/or integrated these
Standards into formal contracts with more than 80 percent
of our external manufacturers (EMs).
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