Management Structure (Cont.)

The Board of Directors has six standing committees: the Audit Committee, Compensation & Benefits Committee, Nominating & Corporate Governance Committee, Finance Committee, Public Policy Advisory Committee and Science & Technology Advisory Committee. The Public Policy Advisory Committee (PPAC) is the primary link to the Board of Directors for reviewing and making recommendations regarding Company positions on public policy issues facing the Company, public health issues, the health and safety of employees, the environment and other issues pertinent to our social, environmental and economic performance. The PPAC is composed of independent directors; the Company’s general counsel; and vice presidents for Corporate Affairs, Government Affairs and Policy, and Worldwide Operations.

The Executive Committee is the principal management group responsible for operations and the allocation of Company resources. In addition, certain Executive Committee members serve as worldwide chairmen of Group Operating Committees (GOC), which are composed of managers who represent key operations within the group, as well as management expertise in other specialized functions. The Corporate GOC ensures performance and fiscal accountability for each corporate function, while other GOC committees oversee and coordinate the activities of the Consumer, Pharmaceuticals and Medical Devices and Diagnostics business segments. Each subsidiary within the business segments is, with some exceptions, managed by citizens of the country in which it is located.

Our governance structure also includes Corporate Internal Audit; an independent auditor, Pricewaterhouse Coopers, LLP; the Audit Committee of our Board of Directors; and regular review of business results by our Executive Committee.

STAKEHOLDER ENGAGEMENT

Johnson & Johnson engages with a broad range of stakeholders on health and health care, business and the economy, and social and environmental issues. We strive to reflect the guidance and wisdom of diverse customer, employee, community and shareholder groups in our actions and in our policies on an ongoing basis, at all levels of the Company. In 2009, we increased our efforts to gather information from and engage in more meaningful ways with our stakeholders. See Engaging in Shared Interests.

Customers

We are continually expanding the ways in which we obtain feedback from all who use our products and services, including consumers, doctors and hospitals. We use a variety of methods, including feedback forms, website links, social networking sites, e‑mail, conventional mail, customer surveys, market research and customer call centers. Each of our businesses maintains a website with contact information, accessible from our corporate website. In addition, we seek to engage stakeholders through our corporate blogs, JNJBTW (By the Way) and the Kilmer House blog.

Employees

Our biennial Credo survey provides direct insight into employees’ opinions on a wide range of issues relative to our business. We completed a survey in June 2010 with a 95 percent response rate. Each operating company receives its results and develops an action plan to address them.

Community

We foster and maintain ties to the communities in which we live and operate, the customers who purchase our products and the doctors and nurses who use them. Each group is unique, with its own concerns and issues, and our interactions with them are just as varied. Details about our interactions with some of these groups is included in this report and on our website. We continue to work to solicit the input of our communities and to expand the information we provide.

Shareholders

Shareholder inquiries and proposals are encouraged and should be directed to the attention of the Secretary at the principal office of the Company, One Johnson & Johnson Plaza, New Brunswick, NJ 08933.