Abbott Laboratories China citizenship and policy approachPrepared by Ogilvy PR Worldwide, BeijingMarch 10th, 2008Agenda The Ogilvy Team and CSR Approach Overview of the Development of CSR in China Best Practice Case Studies Wyeth and Novartis Abbott BriefAbbott Global CSR Approach Our SuggestionDiscussion Corporate Citizenship TeamXu DanDirector Counsel Scott KronickPresidentShannon ChouAssociate DirectorRain Bei, Senior Associate Healthcare TeamYvonne GaoSenior Associate Maria Guimaraes Senior Associate Public Affairs Project Leader The Butterfly Approach The Corporate Citizenship ButterflyThe AnalysisThe WorkInternal Stakeholder AuditExternalStakeholder AuditBrand Print Review/AuditCompetitive Market SectorReviewIssue/CausePlatformExpert RegistryCitizenship AmbitionMeasurementCause-RelatedMarketingAdvertisingCSRReportsCommunityEventsMediaCoverageEmployeeCommunicationsGovernmentAffairsPartnership Review/ SelectionCreative Identity & Expression360 Integration PlanningCitizenshipStatement ofintentStakeholder ReviewStakeholder Value PropositionCorporate Citizenship AuditOverview of the Development of CSR in ChinaCSR IN CHINA - A TIMELINEImpactChinas First CSR Chinas First CSR ConferenceConferenceDomestic Attention to CSRDomestic Attention to CSRSino-European Sino-European Conference on CSR Conference on CSR Issues around child Issues around child labor, sweatshopslabor, sweatshopsSA8000 false reportsSA8000 false reportsInternational scrutiny of business practices in ChinaInternational scrutiny of business practices in ChinaPhase One: The SeedsPhase Two: Birth of “CSR”Phase Three: Growing ExpectationsCSC 9000T Launched CSC 9000T Launched MEDIA CSR AWARDS MEDIA CSR AWARDS 1996200020042008Guiding Policy on Social Guiding Policy on Social Responsibilities of Responsibilities of National Enterprises from National Enterprises from SASACSASACCSR Case Study by CSR Case Study by SASAC & Tsinghua SASAC & Tsinghua University University “2007 CSR In China” “2007 CSR In China” Forum Forum “China CSR Recommended Standard “China CSR Recommended Standard and Good Practice” published by and Good Practice” published by CBSCD CBSCD Key Findings - External Stakeholder Audit Key Factors for successful CSR Programmes:Top Management buy-in and supportEmployee buy-in and supportProjects directed towards government development goals: the development of a “Harmonious Society”International Companies and CSR in ChinaIn general, International Companies: Are ahead of the game but local companies are quickly catching up Need to comply with their global standards in China Most mentioned “most socially responsible enterprises” are BASF, Microsoft and GEFindings: Key External stakeholder Audit In general, International Pharmaceutical companies: Have not generated much of an impression in terms of CSR initiatives Can help to develop harmonious society by addressing:- Public health issues- Providing patient care- Training medical professionals training- Addressing pricing and product/drug safety issuesBayer, Johnson & Johnson and NovartisCommon Trends: Engaging in partnerships with government organizations and NGOs Launch training programs for medical professionalsOther public health initiatives Bayer dominated two major areas in poverty alleviation and environmental protectionBest Practice Case Studies: Wyeth and Novartis Wyeth Comprehensive Involvement CSR Achievements: 2007: Recognized by the 21th Century Business Herald as “the most socially responsible enterprise” Employee programs: - “Green Apple” and “Campus Recruitment”- Competitive compensation scheme- Codes of conducts: GMP; ISO9002; HACCP; ISO14001; OHSAS Environmental programs: - Recycling- Energy saving - Media education campaign Supply Chain Management: SOP Suzhou factory remained in the top 10 company tax payer 7 years in a row Other CSR InitiativesNovartis Motivating the AdvocatesCSR achievements: CCTV Best Employer in 2007 Ranked one of the top 3 “most socially responsible pharmaceutical companies” in our CSR audit CSR programs:- Employee programs: various trainings programs locally and abroad; job rotation; career path planning- Competitive compensation scheme- Friendly working environment Case Studies - Conclusions Employees are the best CSR advocates and can be motivated Trainings outweighs cash Career Development CSR projects take long-term commitment to prosper Top Management support is essentialAbbott BriefAbbott Brief Speaking Opportunities: Abbott global CSR Head Seminars/Workshops/Forums: To attend and observe China CSR Initiatives:- Toolkit development - CSR actions Measurement and media coverage Abbott CSR Initiatives Abbott CSR Initiatives A Unified Global CSR Policy Abbott CSR in China:- Projects managed from HQ and implemented by international NGOs- Philanthropic activities include donations of Abbott milk powder products and other poverty relief effortsOur Suggestions CSR Related Opportunities High-profile speaking opportunities for Abbott global CSR head TimeOpportunity Remarks May CSR 2008 Summit - Guanghua Peking University and Boston University (US)Guests include Shanghai government officials Sept.CCSRC Annual Meeting - Guanghua Peking University and China CSR ConfederationMore than 15 “global 500” company are members of CCSRCSept.Summer Davos organized - NDRC and Tianjin Government High level government initiativeOct. Global Compact 2008 China Annual Meeting - CECAbbott one of the members?Oct. Make CSR a Reality - WTO GuideDec. 5th China Corporate Citizenship Award - 21st Century Business Herald CSR Related Opportunities Workshops/seminars to attend and observe TimeOpportunity Remarks 4/10“3+1” CSR Program 2008 Annual General Meeting bu CBCSDCSR Membership Workshop TBDCSR Workshop by Syntao TBDCSR Salon by WTO GuideParticipation of Golden Bee Forum, Apr. 25TBDCSR Committee by American Chamber of Commerce Platform for best-practice sharingTBDCSR Working Group by European Chamber of Commerce Platform for best-practice sharingTBDCSR Workshop by the Friend of NatureAbbott CSR initiatives Key external stakeholder auditMeetinggovernment needsTo align withAbbott globalinitiativesAbbott ChinaneedsAbbott CSR initiatives Environment Poverty alleviationPublic healthPatient careMedical professional trainingDrug pricingDrug safetyKey external stakeholder audit Abbott CSR initiatives Meetinggovernment needsGreen issues Healthcare stations in remote western areasHealth system reformDrug and food safety Drug pricing Abbott CSR initiatives Abbott global initiatives Affordability of MedicinesIntellectual Property RightsHIV/AIDSProduct SafetyUninsured AmericansHealth Disparities in the USMarketing and Sales PracticesAbbott CSR initiativesAbbott ChinaneedsKey point for discussionAbbott CSR initiatives criteria Key external stakeholder auditMeetinggovernment needsTo align withAbbott globalinitiativesAbbott China needsGreen IssuesGreen Issues& Public HealthPublic HealthDiscussionTo Hear From You About Abbott in China:-Office locations-Overall business scope of the company in China-Employee skill sets -Employee programs/HR policies?-Where are Abbotts factories situated? and what is its relationship with its surrounding community? To Hear From You. About your Business in China:-What is your business strategy for the next few years?-What problems does the company face in China? -Who are your partners in China? -What does your China supply chain look like? -Who is responsible for the overall supply chain management?-What codes of conduct are implemented at a factory level and across your supply chain in China?To hear from you. Abbott CSR in China:-What are Abbotts CSR objectives in China?-What information can you share with the general public? -Have you conducted any projects related to environment and health issues?-What CSR programs has Abbott conducted in China?-What global CSR policies, if any, would Abbott like to focus on in China? Thank you!