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Corporate Responsibility Report 2008

Q&As

Here we respond to questions raised by our stakeholders.

What are you doing to raise standards in your supply chain?

We have long-term relationships with our critical suppliers and we offer them training and support to help them raise standards. Our monitoring process is a key part of raising awareness of our expectations and identifying areas where suppliers need to improve. We work with our suppliers to help them make the necessary changes identified.

Are there human rights risks in your supply chain?

GSK’s supply chain is large and complex, and like all similar supply chains, contains a risk of human rights violations. These risks vary considerably based on the type of supplier and the goods or service we are sourcing. Our manufacturing and R&anp;D suppliers employ skilled workers so there is a lower risk of human rights violations. Our EHS audits aim to ensure good working conditions at these supplier facilities. There are considerably higher human rights risks in suppliers that employ low-skilled workers, for example promotional goods suppliers. We conduct spot checks of these suppliers in India.

Our supplier selection process aims to ensure we only enter relationships with suppliers that respect human rights. We also include clauses in contracts with all suppliers which specify that upholding human rights is a condition of doing business with GSK.

What are you doing in your supply chain to plan for a flu pandemic?

We have implemented a contingency plan to ensure our operations, and the supply of medically critical products, are not compromised by a flu pandemic. We are now encouraging our critical suppliers to implement their own contingency plans.

You are outsourcing more manufacturing. Will this mean you have less control over your products, increasing risk for patients?

The manufacture of all our medicines and vaccines is closely controlled and subject to the same quality standards, regardless of whether we produce them ourselves or outsource the process to contract manufacturers. Before outsourcing any stage of the manufacturing process, we confirm that the contractor can carry out the required processes to our high standards. All contract manufacturers must also be approved by relevant regulatory authorities, and are subject to inspection by GSK and regulators.