12 JOHNSON & 2007 SUSTAINABILITY REPORT OUR CREDO

We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.

We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical.

We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens—support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.

Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return. 12

One Johnson & Johnson Plaza New Brunswick, New Jersey 08933

2007 Sustainability Report 2007 SUSTAINABILITY R EPORT INDEX

Caring for the world...one person at a time™ KEYWORD PAGE(S) GLOBAL REPORTING INITIATIVE, G3 inspires and unites the people of Johnson & Johnson. access to health care 2, 5-7, 13 PROFILE LABOR PRACTICES We embrace research and science – bringing innovative ideas, accountability 11, 12 Strategy & DMA 24-27 animal welfare 13, 15 analysis 1-2, 40 LA1 3, 40 products and services to advance the health and well-being of people. benchmarking 22, 25, 27 Organization LA3 25-26 Employees of the Johnson & Johnson Family of Companies benefits, employee 24-25 profile 3-4, 40 LA5 24 biodiversity 28, 36 Report LA7 25-27, 40 work with partners in health care to touch the lives of over parameters IFC, 3 business conduct 10, 12, 22-23 LA8, LA10 24-27 a billion people every day, throughout the world. Governance BC, 3, 22-23 CEO letter 1 LA11 24, 27 Stakeholders 4, 6-8, 11, LA13 24 challenges 1-2, 6-7, 11, 13, 15 14,17, 22-23, charitable giving 5-6, 22, 34-38 25, 27, 32 HUMAN RIGHTS climate change 1-2, 15-18, 20, 29-30 collective bargaining 24 ECONOMIC DMA 19, 22, 24-25 HR1, HR2 19-20 community 3, 21, 34-38 DMA 3 HR5 24 company profile 3-4 EC1 3-4, 40 HR6 19-20 compliance 10-11, 22, 28 EC2 18 conservation 29 EC6 21 SOCIETY contact us IFC TABLE OF CONTENTS ENVIRONMENTAL DMA 2-7, 10-13, Chairman’s Message 1 customers 3, 14-15, 14, 23 17-18, 22-23 DMA 16, 28-33 disaster relief 35, 37 SO1 29-31 2007 Sustainability Summary 2 EN1 31-32 diversity 21, 24 SO2, SO3 22 EN2 30 About Johnson & Johnson 3 employee assistance 24-25 SO5 5-6, 12-13, EN3 40 Profiles in Commitment 5 employee health & wellness 1, 24, 26-27 17-18, 23, EN5,6,7 16-18, 40 energy 16-18, 40 27, 29 More About our Business Practices 22 EN8 33, 36, 40 SO8 28, 40 More About our Workplace Practices 24 environmental 2, 13-20, 28-33, 36-38 EN13 28-29, 36, 38 equal employment opportunity 25 More About our Environmental Practices 28 EN14 28, 36 PRODUCT RESPONSIBILITY external manufacturing 19-20 More About our Charitable Giving 34 EN16,18 16-18, 40 financial performance 3-4, 40 EN17 18,29 DMA 1, 3-4, 10-12, Beyond the Data 36 fleet 18, 29 EN19 30 14-15, 22, 38 Recognitions, Data and GRI Index 39 goals 1, 16-17, 19-20, 24-33 EN22 33 PR1 32, 38 PR2 10-11 governance 3, 23 EN23 28 PR5 4 HIV/AIDS 1-3, 6-7, 26, 35, 37 EN26 14-15, 20, 29-31, 32, 38 PR6 6, 40 intellectual property 23 EN27 29-30, 32 PR8 6 ISO 14001 29 EN28 29 marketing 11 EN29 18, 20, 29 nanotechnology 12 nursing 8-9 packaging 15, 29-32 ABOUT THIS REPORT partnerships 4, 7, 9, 17, 20, 22, 27, 29, 33-38 This report discusses Johnson & Johnson’s sustainability of other sustainability topics of known interest to our All products and programs that appear in capital letters pharmaceuticals in the environment 31 with the TM symbol are trademarks or service marks of activities and progress as of December 2007. It is our fifth stakeholders. The report is augmented by information policies 12-13, 16, 20, 22-23, 28 Johnson & Johnson and its affiliate companies. annual Sustainability Report and 11th year reporting contained on our website, www.jnj.com. The primary environmental progress. In developing this report, we have audience for this report is external stakeholders. The pricing 23 Other products and programs that appear in lower product safety/stewardship 13-15, 22, 32 case letter with the TM symbol are the property of other considered employee and external feedback on the 2006 Company has a variety of other mechanisms by which it companies and organizations. Report. The feedback was derived from our contact mailbox shares sustainability progress internally. products 4, 22 ([email protected]), non-governmental organization Information presented throughout the report represents public policy 23 engagements, senior company leadership input and three the manufacturing and research & development facilities recognitions 25 evaluations conducted by SustainAbility Inc., Claremont operated by the Johnson & Johnson Family of Companies. research & development 1, 12-13 McKenna College and Ethical Corporation. No external manufacturing is included in our data. safety 25, 27 Cert no. SW-COC-1340 Through these and other sources, we learned that there stakeholders IFC, 3-9, 11,25, 30, 32 GLOBAL REPORTING INITIATIVE (GRI) is strong consensus that sustainability reports are rarely read stem cells 12-13 cover to cover. Instead, users typically turn to a sustainability Consideration was given to the Global Reporting Initiative strategy 1, 3, 11 “Checkmark-and-tree” logo ©1996 Forest Stewardship Council report to find a discreet bit of particular information on Sustainability Reporting Guidelines (G3) in the preparation supply chain 19-21, 29-30 This report is printed on Forest Stewardship Council an as-needed basis. We also learned that readers are seeking of this report. On the inside back cover, we provide an index (FSC) – certified paper. The paper contains 50% recycled more in-depth discussions of a company’s priority with references to G3 indicators; however, we do not declare training 24-28 content including 25% post-consumer waste and it is sustainability issues. a reporting level at this time. transparency 1, 32 elemental chlorine free. In consideration of the feedback we received, we continue transportation 18, 20, 25 Printed by Pictorial Offset Corporation, to evolve our reporting. Our 2007 report begins with a FEEDBACK AND FURTHER INFORMATION waste 13, 15, 33, 38 an ISO 14001-Environmental Management Systems company. comprehensive discussion of a number of key issues affecting We invite your comments on our sustainability activities water 33, 36-38 our business, followed by a more crisp presentation and this report by emailing us at [email protected]. IFC: Inside Front Cover © Johnson & Johnson 2008 Cover Photograph ©David Stubbs/Aurora/Getty Images Photograph Stubbs/Aurora/Getty ©David Cover 41 CHAIRMAN’S MESSAGE

Over the 121 years of Johnson & Johnson’s history, much has changed. Still, the essence of who we are, why we are here, and