VV-Good Index

Merck

Number of employees: 86,000
Previous year's turnover: £31 Billion (in 2011)

Company Profile
Company Report

Merck strive to improve and preserve human and animal life. They have a rich history in doing so, from the discovery of vitamin B1, to the first measles vaccine, to cold remedies and antacids, to the first statins to treat high cholesterol.

Read more here: http://www.merck.com/index.html

Social Each of the companies in the VV-Good Index are listed here in order of their social performance. Across the sector, there is much more room for transparency in social impact reporting. In the company reports, there can be detail about training courses provided/ drugs donated but there is an opportunity to put this information into context and show what the impact has been overall, particularly on key issues, like those cited by the Millennium Development Goals, as pharmaceutical companies can have a very direct impact on society through impact on health and well-being. Closely monitoring the performance of companies, both in the developing and developed countries is therefore crucial. Only Astra Zeneca, Novartis and GlaxoSmith Kline published this in 2011. With hundreds of cases of misconduct being investigated each year, it pulls into question the effectiveness of corporate governance and ethical practices in maintaining high ethical standards.	Percentage Change	Impact Score	Av. Impact Score for all Pharma Companies	Best Impact Score for all Pharma Companies	Company Ranking
Change in number of people dying from malaria, HIV an TB due to distributed medicines in the operational area of the company An indicator to show the impact of the drugs donated by the company on increasing the life expectancy in the areas where the drugs are donated, as shown by a fall in deaths due to the conditions affected by the drugs donated.	No Data
Customer satisfaction rating from independant/externally verified survey results A measure of company's customers' satisfaction that shows the percentage of customers with positive feedback	No Data
Global vehicle accident rate An indicator showing the number of vehicle accidents involving employees, measured as accidents per million miles driven	-57.63%	18	13.71	18	1
Infant AIDS related mortality rates due to donations/discounted drugs An indicator to show the impact of the drugs donated by the company on reducing the incidents of AIDS related infant mortality in the area where they are distributed	No Data
Injury or illness incident rate The number of injury or illness incidents among employees per 100 employees	-6.56%	9	14.4	24	7
Number of cases of misconduct substantiated An indicator of the company's commitment to responsible business as shown by the number of incidents of misconduct that are substantiated	No Data
Social Media Score Percentage of the positive mentions as a proportion of social media mentions.	No Data
Suppliers with human rights screening A measure of the company's rigour in eliminating human rights breaches throughout its entire business as shown by the number of suppliers with human rights screening	No Data
Teenage pregnancy rate due to contraceptives distributed for free/discounted and education provided An indicator to show the impact of the contraceptives distributed for free/discounted and education provided on the number of registered teenage pregnancies within a given area which are directly attributable to the company's activities.	No Data
Volume of product safety accident(s) The number of incidents of product recalls	1500.00%	24	24	24	1

Financial Each of the companies in the VV-Good Index are listed here in order of their financial performance. Responsible management of companies also includes long -term consideration of financial decisions. With key issues facing the sector such as counterfeit drugs, the patent cliff and the pricing of drugs, combined with the traditional time lag to bring new drugs to market, innovative approaches to growth can foster new ways of accessing new markets.	Percentage Change	Impact Score	Av. Impact Score for all Pharma Companies	Best Impact Score for all Pharma Companies	Company Ranking
Change in earnings before tax, interest, depreciation and amortization (EBTIDA) Net profit before tax, interest, depreciation and amortization is taken off - main aim of companies is to maximise shareholders profits therefore EBTIDA is as high as possible	-15.34%	3	5.2	8	8
Change in earnings per share Regarded as an important consideration in investment decisisons - been given special attention by the IASB and has its own standard, IAS 33 Earnings Per Share, requires that the EPS be disclosed in the public financial statements of all listed companies - the higher the better as it will mean stronger performance (profit available for distribution as dividends).	-20.10%	10	10.4	16	6
Change in gearing A measure of the financial risk relating to a company's equity shares that arises because of the prior claim that fixed interest capital has on the annual income and assets - important for sustainability as being highly geared can cause insolvency. (Current proportion of Long Term Debt + Long Term Debt)/ Company shareholders equity	42.88%	10	9.6	16	4
Change in gross margin	-3.59%	4	5.4	7	9
Change in liquidity (quick ratio/acid test) A measure of a company's ability to pay its debts as and when they become due	-11.61%	6	5.2	7	5
Change in net cash flow The net cash flow of the organization during the reporting period. Net cash flow equals inflows less outflows of cash and cash equivalents - Companies aim to maximise this number as it shows the amount of cash they have - if it is negative or a low positive number they may be a risk of insolvency	1.17%	8	5.2	8	1
Change in non-current assets Non-current assets are fixed tangible assets that are not expected to be turned into cash within a year - a high value indicates strong infrastructure and therefore sustainability.	-3.81%	6	10.67	14	9
Change in sales revenue The income that a company gets through selling goods - companies aim to maximise sales revenue as it is a main source of income.	-12.19%	2	5.2	8	10
Number of drugs in phase III trials/cost of sales	-14.28%	5	5.57	8	4
Patient assistance as a percentage of revenue Monetary value of patient assistance in relation to its overall sales revenue generated	-27.51%	15	17.4	24	3
R&D spend per drug in phase III trials This looks at direct R&D spend by the business and the number of phase III drugs in the pipeline for future products and services	-32.62%	5	4.57	7	3
Revenue per employee This looks to show employee productivity by showing the value of sales revenue per employee on average	No Data
Total community investments as a percentage of revenue Monetary value of community investments expensed by the organisation during the reporting period in relation to the overall sales revenue generated	No Data
Total value of life saving products donated as a proportion of revenue Monetary value of life saving products donated by the organisation during the reporting period (contribution, product donation and community partnership(s)) in relation to the overall sales revenue generated	No Data

Environmental Each of the companies in the VV-Good Index are listed here in order of their environmental performance. Increased regulation for environmental monitoring has supported with increased amounts of information disclosed along similar indicators. Gaining consensus on the same reporting parameters and even units, would aid comparison. Monitoring performance on resource usage as well as emissions can inform organisations about potential areas of efficiency or waste. Only two companies (Sanofi and Novartis) managed to grow in terms of sales revenue and reduce their waste and carbon emissions in 2011, showing the urgent need for more innovation and take up of efficiency in operations.	Percentage Change	Impact Score	Av. Impact Score for all Pharma Companies	Best Impact Score for all Pharma Companies	Company Ranking
Annual consumption of water from the source The total volume of water consumption by primary source	0.00%	6	8.67	10	3
Carbon dioxide emissions The calculated volume of the total set of carbon dioxide emissions caused by an organisation	No Data
Energy consumption by non-renewable source(s) Electricity usage by non renewable energy source(s)	No Data
Energy consumption by primary energy source(s) Electricity usage by primary source(s)	No Data
Energy consumption by secondary source(s) Electricity usage by secondary source	No Data
Growth of population of endangered species per square mile of habitat in areas affected by operations Change in the population of endangered species per square mile of habitat at the end of the reporting period due to actions taken by the company, specifically on their sites	No Data
Notice of violation (NOVs)	73.33%	6	8.8	14	4
Notice of violation (NOVs) The number of environmental incidents reported and investigated	No Data
Other important air emissions The calculated volume of the total set of other air emissions (methane, NOx, SOx, other particles or their carbon dioxide equivalent ) caused by an organisation	No Data
Total direct and indirect greenhouse gas emissions (scope three) The calculated volume of the total set of greenhouse gas (GHG) emissions caused by an organisation	-7.45%	6	5	7	2
Total emissions	No Data
Total volume of waste produced The total volume of waste produced including paper	-13.43%	7	4.8	7	1
Volume of hazardous waste produced The total volume of hazardous waste produced (i.e. waste, electrical, electronic equipment (WEEE), batteries, clinical, chemicals, oils, fluorescent light tubes)	-14.81%	6	4.88	8	2
Volume of water used The total volume of water consumption (all sources)	0.00%	8	9.33	16	4
Water pollutant emissions Content of impurities/ pollutions emitted in to the water	0.00%	8	4.67	8	1

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