This statement explains the steps that we have taken to eliminate slavery and human trafficking from our supply chain. Some countries have implemented legislation which require certain businesses to provide public disclosures in this regard. This legislation includes The California Transparency in Supply Chains Act of 2010 and Section 54, Part 6 of the United Kingdom Modern Slavery Act of 2015. This initial disclosure is intended to provide our customers with information that will allow them to make more informed decisions about the goods they are purchasing.
Company Structure and Business: With a vision to create a world without limits for people with diabetes, LifeScan, Inc. is a world leader in blood glucose monitoring – globally more than 20 million people depend on the company’s OneTouch® brand products to help them manage their diabetes. The LifeScan portfolio includes personal blood glucose meters, testing strips, lancets, point of care testing systems and integrated digital solutions. For over 35 years, LifeScan has had an unwavering commitment to improving the quality of life for people with diabetes. Through robust history of research, technological advancements and successful product launches, LifeScan has developed products defined by simplicity, accuracy and trust. LifeScan is headquartered in Chesterbrook, Pennsylvania and Zug, Switzerland, and has a 340,000 square foot state-of-the-art manufacturing and distribution facility in Inverness, Scotland. With more than 2,000 employees LifeScan serves more than 90 countries.
Our Supply Chain: Our Supply Chain is responsible for making products at our own facilities and through external partners. As a result, our supply chain is global and complex. We purchase goods and services from thousands of suppliers around the world. The success of our business depends on our ability to collaborate with suppliers that not only provide the highest quality products and services but are philosophically and strategically aligned with our commitment to our social and environmental responsibilities.
Our Policies: Lifescan is committed to ensuring that it conducts its business worldwide with respect for human rights and in compliance with all applicable laws and fair employment practices as set out in our Code of conduct and related policies.
Managing the human rights considerations in our supply base is a critical and complex undertaking. Lifescan takes the following steps to manage our supply chain relationships responsibly:
- Verification/Due Diligence: Based on supplier risk prioritization, Lifescan evaluates prospective suppliers during supplier selection and periodically thereafter based their role in our supply chain. These evaluations focus on ethics, employee health and safety, and environmental protection elements. Prioritization is mainly based on the supplier category. External manufacturing sites are high on the priority list
- Audit: Johnson & Johnson currently conduct audits of select suppliers who impact our quality and financial systems based on internal risk assessments. However, these audits are not designed to explicitly confirm compliance with company standards in the areas of slavery and human trafficking. These audits are not currently conducted via an independent unannounced audit.
- Certification: Our standard contracts with suppliers require compliance with all applicable laws. In addition, we are in the process of enhancing our existing contractual key terms and conditions to strengthen our expectations of our suppliers regarding human trafficking and slavery.
- Internal Accountability: Our Code of Conduct describes our commitment to human rights. Violation of company policies and procedures is reportable through our company’s ethics reporting hotline and web portal. All such reports of allegations of violations will be promptly investigated and, if the result of the investigation indicates that corrective action is required, the company will decide what steps to take to rectify any problem and/or avoid the likelihood of its recurrence.
Training: Annual compliance training on our Code of Conduct is required of all employees, and completion of that training and execution of our Code of Conduct is tracked. Each employee must certify compliance with our Code of Business Conduct annually, and results are reviewed by the Compliance Committee. We intend to periodically deploy updated training on human trafficking and slavery, particularly with respect to mitigating risks within supply chains of products, to existing company employees who have direct responsibility for supply chain management.