Merck Sustainability Report 2021

Business ethics

TAG overview

Results for

Compliance training

Compliance training

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

20191

 

20202

 

2021
Merck 
Group

 

2021
thereof Merck KGaA

Total number of persons trained on anti-corruption guidelines3

 

11,404

 

36,109

 

28,827

 

5,790

 

509

Total number of employees trained on anti-corruption guidelines

 

11,155

 

35,673

 

28,805

 

5,772

 

508

% of employees trained on anti-corruption

 

22

 

63

 

50

 

10

 

6

by employee category4

 

 

 

 

 

 

 

 

 

 

Number of Role 2+ employees trained on anti-corruption

 

9,257

 

26,890

 

27,123

 

5,284

 

495

% of Role 2+ employees trained on anti-corruption

 

36

 

96

 

90

 

17

 

12

% of employees below Role 2 trained on anti-corruption

 

7

 

30

 

6

 

2

 

0

by region (%)

 

 

 

 

 

 

 

 

 

 

Europe

 

19

 

71

 

51

 

8

 

6

North America

 

36

 

59

 

45

 

11

 

not applicable

Asia-Pacific (APAC)

 

16

 

47

 

44

 

12

 

not applicable

Latin America

 

12

 

62

 

44

 

8

 

not applicable

Middle East and Africa (MEA)

 

18

 

80

 

66

 

12

 

not applicable

1

As of 2019, we changed our reporting method. Previously, our reports covered the active workforce who has been trained on a specific subject during a particular year. In 2019, we report on the active, trained workforce in the company, regardless of whether their training has already taken place prior to the reporting year. The possibility of trend forecasts for year-to-year comparisons is therefore limited.

2

In 2020, we began using our own global learning management tool and therefore now have a different reporting structure. As of 2020, we report on the active workforce that is part of the target group and has completed the training in the reporting year. The possibility of trend forecasts for year-to-year comparisons is therefore limited.

3

Includes contractors, external supervised workers (e.g. temps) and contract partners working on-site who were trained on anti-corruption guidelines (2021: 18).

4

Employees whose role level had not yet been recorded in our database by December 31 of the respective reporting year have been allocated to "employees below Role 2".

The (employee) target audience for a specific training is related to the risk level associated with employee positions and Role levels. Target audiences therefore may not include all Group employees and also may vary from training to training.

In order to address the special responsibility held by management personnel, and staff with HR responsibility, trainings on anti-corruption guidelines for these employees are in focus. This applies to all employees rated Role 2+.

Our new Anti-Corruption E-learning was rolled out in 2020. The majority of employees within the defined target group already completed the training in 2020. Therefore, the 2021 completion number is lower as the training was only assigned to new joiners, internal transfers or employees who did not complete the E-learning in 2020.

Internal audits on corruption and Human Rights Charter

Internal audits on corruption and Human Rights Charter

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2019

 

2020

 

2021
Merck 
Group

 

2021
thereof Merck KGaA1

Number of audits relating to corruption

 

54

 

50

 

52

 

56

 

29

% of audits relating to corruption

 

69

 

65

 

66

 

67

 

35

Number of audits relating to the workplace requirements of our Human Rights Charter

 

46

 

46

 

42

 

51

 

27

1

Includes global audits which are conducted at the headquarters in Darmstadt and/or the management of the audited function is reporting into KGaA.

In 2021, during 51 of our audits conducted in 11 countries, we reviewed workplace parameters as per our Human Rights Charter. No violations were identified.

Human rights violations

Human rights violations1

 

 

 

 

 

 

 

 

 

 

 

20182

 

20192

 

2020

 

2021

Number of reported violations of Social and Labor Standards Policy

 

-

 

-

 

108

 

121

Number of confirmed violations of Social and Labor Standards Policy

 

-

 

-

 

29

 

41

thereof number of incidents of discrimination

 

-

 

-

 

2

 

6

1

In 2020, we modified our reporting structure for human rights violations. Previously, we reported on such violations in the “Reported compliance violations” table. Since 2020, we report on violations of our Social and Labor Standards Policy, which was drafted and rolled out across the entire Group in 2019.

2

Due to our revised reporting practices, we have decided not to report the data from previous years.

Reported compliance violations

Reported compliance violations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2019

 

2020

 

2021
Merck 
Group

 

2021
thereof Merck KGaA

Total number of reported compliance violations

 

 

 

 

 

 

 

 

 

 

Number of reported compliance incidents

 

72

 

75

 

81

 

79

 

6

Number of confirmed cases

 

19

 

30

 

41

 

42

 

3

Confirmed cases by category

 

 

 

 

 

 

 

 

 

 

Bribery and corruption

 

3

 

9

 

6

 

1

 

0

Violation of cartel laws and fair competition rules

 

1

 

0

 

0

 

0

 

0

Fraudulent actions against Merck

 

5

 

8

 

11

 

6

 

0

Other violations of the Merck Compliance Principles for the relations with business partners

 

1

 

4

 

0

 

0

 

0

Other violations of Merck values, internal guidelines or legal requirements

 

9

 

9

 

24

 

35

 

3

Data Privacy

Data Privacy

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

20191

 

2020

 

2021
Merck
Group

 

2021
thereof
Merck KGaA

Reported violations of Data Privacy Guidelines

 

1

 

1

 

3

 

3

 

1

Customer Privacy2

 

 

 

 

 

 

 

 

 

 

Total number of substantiated complaints received from outside parties

 

0

 

0

 

0

 

0

 

0

Total number of complaints from regulatory bodies

 

0

 

1

 

0

 

0

 

0

Total number of identified leaks, thefts, or losses of customer data

 

1

 

1

 

0

 

0

 

0

1

Since 2019, our reported figures have excluded the Consumer Health business, which was divested on December 1, 2018.

2

These data only reflect incidents classified as significant.

Legal actions

Legal actions

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2019

 

2020

 

2021
Merck 
Group

 

2021
thereof
Merck KGaA

Total number1 of legal actions pending or completed (for anti-competitive behavior, violations of anti-trust or violations of monopoly legislation)

 

3

 

3

 

4

 

4

 

2

pending

 

3

 

3

 

4

 

3

 

2

completed

 

0

 

0

 

0

 

1

 

0

1

As published in the annual reports, the herein listed total number of legal actions refers to the significant legal risks as per the company’s definition. The significance of legal risks is based on potential negative effects on projected financial objectives as well as on the probability of occurrence.

For further information please see our annual reports:
Annual Report 2018, pages 146-148 and pages 247-251, No. 26
Annual Report 2019, pages 120-122 and pages 243-245, No. 26
Annual Report 2020, pages 125-127 and pages 252-256, No. 27
Annual Report 2021, pages 100-101 and pages 280-284, No. 27

Role
Our company uses a market-oriented system to rate positions within the company. To facilitate consistency across the organization, each position is assigned a specific role, with an overarching job architecture classifying each role as one of 11 levels, 15 functions and an array of career types (Core Operations, Services & Support Groups; Experts; Managers; Project Managers).

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