Our corporate and social responsibility (CSR) activities, including those covered in this report, are managed in the most appropriate functions in the organisation rather than through a central department. We believe this is the most effective approach to managing the issues because they remain an integrated part of the everyday operation of the business.

To facilitate policy development, implementation and communication, a cross-functional team was established at the beginning of 2002 to ensure a comprehensive and co-ordinated approach. The team is made up of representatives from the key business areas who ensure that policies are in place and mechanisms exist for their implementation and monitoring. The representatives also contribute to reporting progress through this report and in other ways, for example through conference presentations and on our website.

During the year this cross-functional team developed indicators that will support reporting on key issues. In determining the indicators, we aim to strike a balance between the desires of our stakeholders for greater transparency about our operations with the realities and costs of running the business.

We also believe that stakeholder discussion on anything that requires specialist knowledge is best undertaken by those with such expertise. Hence the team representatives discuss issues directly with those who have expressed an interest or concern, and central co-ordination means that broader issues are brought to the attention of the cross-functional team.

GSK has a process in place for identifying, evaluating and managing significant business risks, and this includes reputational and corporate responsibility issues. Our risk management process accords with the Turnbull guidance and our formal risk assessment is updated at least once a year. The Risk Oversight and Compliance Council coordinates internal control and risk management activities to ensure effective management of significant risks.

During the year, the CSR committee of Non-Executive Board members gave advice on how we report our activities, and had specific input into our approach to community investment, environment, health and safety and human resources policies including diversity and human rights issues.