1. Why was it important for your organization to join the Embankment Project?
As a leader in healthcare committed to changing the trajectory of health for humanity, Johnson and Johnson is focused on the long-term and felt that the mission of the Embankment Project for Inclusive Capitalism (EPIC) largely aligned with our own aspirations, consistent with Our Credo.
2. What are the main learnings you gained from the Embankment Project and what positive changes have you seen (either for you and/or your stakeholders)?
Much of the insights gained from EPIC were from the interactions, discussions and healthy debates we had with the EPIC members, the Asset Creators, Managers and Owners. We had open discussions about strategy, what does “long-term” truly mean and how is each constituent in the value chain compensated (or not) for long-term thinking and behaviors. These insights gave us the perspectives from different companies outside of J&J, and validated much of our long-term thinking and what we do already in terms of focusing on the long-term.
The work that has been put into EPIC and the outcomes reached will surely impact and drive positive change going forward. Focusing on what drives long-term value, such as human capital, innovation, good governance and culture combined with a strong financial discipline will impact patients, consumers, investors and overall society for years to come. J&J was proud to be part of the EPIC team and hopes this work and dialogue continues.
3. What are you doing differently as a result of what you learned?
We had many learnings throughout our journey working on EPIC, but here are a few key opportunities for improvement we identified, specific to human capital disclosures:
- Employee Turnover – there is an opportunity for J&J to expand upon our narrative supporting this metric
- Training and Development – per our 2017 Health for Humanity report, we are already developing processes for potentially expanded reporting of consolidated employee development training data, and we intend to share the results in the coming years
- Pension Assets & Liabilities – we disclose financial details of the pension in our 10-K, but we feel there is an opportunity to further highlight our offerings in our 2018 Health for Humanity report
4. What challenges need to be tackled going forward, as an organization, sector and/or collectively along the investment chain?
At a high level, a challenge we see is how can we bring together all the great work done by the EPIC team with other initiatives in this arena (for example, Business Roundtable, CECP SII and others) to maximize the impact. We look forward to working together with the investment chain to overcome challenges and drive change.
Company Best Practices: Details of relevant LTV / Embankment Project related best practices and publications
Overall, J&J is a leading company when it comes to many relevant long-term value / Embankment Project-related items. A few best practice publications we want to highlight include: