Gsk-Annual-Report-2011.Pdf
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Accomplis h Pe rfo Accomplis rm h Pe E Do M rfo xp ore rm lo F E re e xp C e lo o l r n B e n e L e i c t v t t e e r M C a k o L e n i G n v e r o e c t w M L L o r i a v k e e n e D g g G r n e e r o a r o w m L D D T e o r h e v r i a i M v m L e o T T r r h e h e t r F t i i e e n e v B l e k T I h n i h n s s i k l p p I n m i s p o r c i r c e A e A c c o m p l i s h Inspiring Lives At GSK we strive to achieve the best results and maximize impact by providing value to our customers. Our people are inspired by our vision of a happier, healthier world and work towards achieving it with passion and enthusiasm. We believe that each life we touch through quality healthcare products and various corporate social responsibility initiatives inspires them to 01 Corporate Information 42 Vertical Analysis 03 Vision & Mission 43 Horizontal Analysis 04 Values & Behaviours 44 Financial Statements 2011 05 Strategic Priorities 46 Statement of Compliance with the Code 06 Ethical Conduct of Corporate Governance 07 History of GSK 48 Review Report to the Members on 09 Touching hearts. Inspiring lives. Statement of Compliance with Best 14 The World of GSK Practices of Code of Corporate 15 GSK Pharma Launches 2011 Governance 16 Stiefel & Medical Affairs 49 Auditors' Report to the Members 17 GSK Consumer Healthcare 50 Balance Sheet 18 Quality Management System 52 Profit and Loss Account 20 Environment, Health & Safety 53 Cash Flow Statement 21 Journey Towards Sustainability 54 Statement of Changes in Equity 22 Our Flagship Products 55 Notes to and forming part of the 24 Growing People to Grow the Business Financial Statements 28 Directors' Profiles 83 Pattern of Shareholding 30 Board & Management Committees 84 Categories of Shareholders 31 Directors’ Report to Shareholders 85 Shareholding Information 35 Chairman/Chief Executive's Review 86 Notice of Annual General Meeting 38 Financial Performance at a Glance 88 Factories and Distribution / Sales Offices 39 Statement of Value Added 89 Proxy Form 40 Key Operating and Financial Data Corporate Information Board of Directors Management Committee Company Secretary Mr. M. Salman Burney Mr. M. Salman Burney Mr. Shahid Mustafa Qureshi Chairman / Chief Executive Chairman / Chief Executive Chief Financial Officer Mr. Rafique Dawood Dr. Muzaffar Iqbal Mr. Yahya Zakaria Non-Executive Director Technical Director Bankers Mr. Husain Lawai Mr. Shahid Mustafa Qureshi Citibank NA Non-Executive Director Legal, Corporate Affairs, Standard Chartered Bank Industrial Relations, (Pakistan) Limited Mr. Mehmood Mandviwalla Administration & Regulatory HSBC Bank Middle East Limited Non-Executive Director Affairs Director/ Company Habib Bank Limited Secretary Dr. Muzaffar Iqbal Auditors Technical Director Mr. Yahya Zakaria A. F. Ferguson & Co. Director Finance Mr. Shahid Mustafa Qureshi Chartered Accountants Legal, Corporate Affairs, Industrial Ms. Erum S. Rahim Relations, Administration & Director Marketing and Business Legal Advisors Regulatory Affairs Director/ Development Rizvi, Isa, Afridi & Angell Company Secretary Mandviwalla & Zafar Mr. Maqbool ur Rehman Orr, Dignam & Co. Ms. Erum S. Rahim Sales Director Surridge & Beecheno Director Marketing and Business Vellani & Vellani Development Mr. Pervaiz I. Awan Sales Director Registered Office Mr. Maqbool ur Rehman 35 - Dockyard Road, West Wharf, Sales Director Mr. Sohail Matin Karachi - 74000. Country Manager - Consumer Tel: 92-21-111-475-725 Mr. Yahya Zakaria Healthcare (111-GSK-PAK) Director Finance Fax: 92-21-32314898, 32311122 Dr. Atif Mirza Website: www.gsk.com.pk Ms. Fariha Salahuddin Director Medical Services Director Human Resources l Be re Fee tter Li Mo ve L Audit Committee Do on r ge Mr. Rafique Dawood ge r Chairman n Lo e iv Mr. Husain Lawai L Member r e t t e Mr. M. Salman Burney B Member l e e Mr. Mehmood Mandviwalla F e Member r o M o D 01 Vision GlaxoSmithKline’s vision is inspiring: “The opportunity to make a difference to the lives of billions of people” At GSK we perform in unison, by following our value system and ethical guidelines as a source of guidance and inspiration, which helps us achieve our vision. Each and every member of the GSK family plays a vital role in improving the quality of human life. GSK’s growth and development can be attributed to the contribution of the skills, talents and ideas of its people. GSK follows its core values of transparency, integrity, respect for people and patient focus. We are proud of our commitment that enables us to enhance the quality of peoples’ lives and helps us to provide them with quality products. Mission GlaxoSmithKline’s quest is to improve the quality of human life by enabling people to At GSK our mission acts as an underlying principle to whatever we do. We follow a legacy of great science and innovative healthcare that helps people around the world live healthier and fulfilled lives, every single day. 03 Our Values Our Behaviours Respect for people GSK fosters a dynamic learning culture, which thrives on innovation and flexibility. We do this so We believe that respecting each other is the key to that we can provide the best customer-centric progress and growth for everyone: our business, health solutions by adapting to the changing needs employees and customers. Therefore, the culture of the healthcare market. Therefore, our work is at GSK celebrates diversity and achieving goals embodied by six behaviours: with team work and cooperation. Flexible thinking Patient focused We explore multiple options for problem-solving. Our commitment to our purpose of improving the Enable and drive change lives of billions ensures that all our efforts, be it research, manufacturing or distribution are geared Our ideas are executed to realize benefit for towards improving patient access to quality health customers and business growth. solutions. Continuous improvement Transparency We not only excel in what we do, but find We are committed to building and streamlining innovative improvements to current practices. existing systems to eliminate any possibility of unfair practices. This has been possible only Customer driven because of our employees, who are honest and Our philosophy of improving the lives of billions of fair in everything they do and take personal people is at the heart of everything we do. responsibility for all their actions. Developing people Integrity Empowered employees take initiatives and provide Our guiding principles go beyond complying with creative solutions to challenges. legal and ethical regulations. Each member of the GSK family takes pride in making decisions which Building relationships are not only profitable but are morally sound, each has the sincere intent of benefiting the patients, Trust and openness inculcated in everything we do. which has helped us foster long-term relationships. It helps us to foster long-lasting partnerships. ger Lon Do M ive o r L re e F tt e e e B l l B e e t e t F e r e r o M o D 04 Strategic Priorities By focusing our business around our five strategic priorities, we are confident that we can fulfill our promises to the world. Grow a diversified global business We are reducing risk by broadening and balancing our portfolio, diversifying new product areas, while also fully capturing opportunities for our products across all geographic boundaries. Deliver more products of value Transforming R&D to ensure that we not only deliver the current pipeline of new pharmaceuticals, vaccines and consumer healthcare products, but that we are also able to sustain this flow of new products for years to come. Simplify the operating model We are simplifying our operating model to ensure that it is fit for purpose and able to support our business in the most efficient and effective way. Create a culture of individual empowerment Empowerment is key to achieving our goals and we ensure that our employees receive the tools and inspiration they need to make decisions with confidence and accountability. Building trust We see building trust as a fundamental platform. Essentially, without trust, we don’t have a business. Feel Better Li ore ve L o M l Be on D re Fee tter Liv g r Mo e L er ge o on n D g o er er L ng e o iv L L e iv r L e t r t e t e t B e l B l e e e e F F e e r r o o M M o o D D r r e e g n g o n L o e L v i e L v r i e L t t r e e B t l t e e e F B e l r o e M e o D F e r o M o D 05 Ethical Conduct Our Ethical Compass Always Points to Fair Practice We are committed to creating a strong ethical culture at GSK. Putting patients first is the core principle of being an ethical pharmaceutical company. Profit without principle is short lived. Our Code of Conduct sets out the fundamental standards to be followed by staff in their everyday actions on behalf of GSK, and seeks to promote honest and ethical conduct.