Social Performance

MANAGEMENT APPROACH

We estimate that the Johnson & Johnson Family of Companies touches more than a billion people’s lives each day through our health care products and services, our corporate giving and the volunteer efforts of our employees.

Responsibility for activities we consider in determining our social performance is spread among several corporate and global functions. These include Global Procurement, Quality & Compliance Worldwide, Global Talent Management, Benefits and Health Resources, Worldwide Compensation, Health Care Compliance & Privacy and Public Affairs & Corporate Communications, Corporate Contributions, Government Affairs & Policy, Global Diversity & Inclusion, Worldwide Supply Chain, Worldwide Security and Legal. These functions report to the Corporate Group Operating Committee (GOC) and the Executive Committee, which report to the Board of Directors.

This section presents an enterprise-level view of some of our most significant social performance indicators that demonstrate our commitment to our patients and customers, our employees and communities. Additional information about our social policies, positions and programs can be found on the Our Caring section of www.jnj.com.

DISCOVERING AND DEVELOPING PRODUCTS

The scientists, engineers, doctors, nurses and other health care professionals who work in our research centers around the world have successfully patented more than 52,000 products in the past century.

In 2009 we launched a number of recently approved innovative products across our businesses. And with R&D investments from the past several years coming to fruition in exciting and meaningful ways, we again invested another $7 billion.

In addition to advancing pipelines through internal development, we continued to acquire, invest in and collaborate with other companies to generate new opportunities to meet patient needs. Since the beginning of 2008, we have made eight major acquisitions and invested in several strategic transactions. Recent highlights include the acquisitions of Cougar Biotechnology, Inc. for oncology and a key compound from Elan Corporation, plc for Alzheimer’s disease, and strategic alliances with Crucell, NV for vaccines and Gilead Sciences, Inc. for HIV therapies. In early 2010 we acquired Acclarent, Inc. for minimally invasive sinus surgery.

Work in our laboratories and clinical research centers is conducted to the highest ethical standards. We routinely review our research policies to ensure they are aligned with ethical standards around the world. Our Ethical Code for the Conduct of Research & Development is available on Ethical Research & Development section of www.jnj.com.

Animal Welfare

In 2009 we updated our Policy on the Humane Care & Use of Laboratory Research Animals to include additional requirements and guidance regarding animal welfare. It is the policy of the Johnson & Johnson Family of Companies to minimize use of animals in laboratory research that assesses the safety and efficacy of our products. Animal use has decreased by 65 percent relative to R&D investment since 2000, and we remain committed to the three “R” principles—replacement, reduction and refinement—as they apply to animal testing.

We do not conduct animal testing for our personal care products. We don’t ask others to test on our behalf, except when required by law or government authorities, and we comply globally with the requirements of the EU ban on animal testing for cosmetics. We also engage internal and external experts to review the ethical aspects of all animal tests.

In 2009 we presented highlights of our 3R Award Program at the VII World Congress on Alternatives & Animal Use in Life Sciences. Created in 2005, the 3R Award recognizes employees who develop viable alternatives to animal testing; in 2006, the program expanded to include the 3Rs Post Doctoral award, recognizing top scientists and engineers who serve as role models.