We believe that behaving ethically is not only the right thing to do; it has many advantages for our business. A reputation for ethical working practices not only helps to attract, motivate and retain talented individuals but it also means that policymakers and other stakeholders are more likely to listen to what we have to say. For Merck as a highly regulated pharmaceutical company, ethical working practices without cutting corners help to ensure our compliance with laws and regulations and help result in significant contributions to medicine, patients and society. All of this together helps to promote a good climate for global business.

Merck’s Approach

Merck's commitment to ethics extends beyond the Company's boundaries. We actively promote the development of codes and standards for ethical and transparent business practices that can help limit corruption, ensure fair and open competition and encourage a better business environment, all of which are essential to economic growth and improved standards of living.

Merck also seeks to make a difference in the global business environment by supporting Transparency International and other organizations that work to eliminate corruption, promote transparency and foster the principles outlined in the OECD Conventions against Corruption and Bribery.

In addition to these efforts, Merck recognizes the need to encourage the development of codes and standards for ethical business practices in other countries, similar to those that Merck follows. Below are a few examples of our work in this area.

In an effort to combat global corruption, the World Economic Forum's Partnering Against Corruption Initiative (PACI) was formally launched by CEOs from the Engineering & Construction, Energy and Metals and Mining industries in January 2004. Prior to the 2008 annual meeting in Davos, Merck joined a global community of 138 companies from various industries and regions of the world that have committed to strengthening efforts to counter corruption and bribery through the PACI by signing a statement supporting the PACI Principles for Countering Bribery. Signing on to the PACI Principles is a natural extension of Merck's longstanding commitment to high ethical standards and transparent business practices. By working across industries and continents to promote ethical behavior, we believe this initiative can help limit corruption, encourage fair and open competition, and lead to a better business environment.

Also during the 2008 Annual Meeting in Davos, Merck joined 14 other companies in signing a leadership statement on "Partnering to Strengthen Public Governance – The Leadership Challenge for CEOs and Boards. ( PDF*)" The statement called on businesses to engage in public/private partnerships to strengthen and improve the effectiveness of public policies and institutions as a key aspect of corporate global citizenship.

Ethics Centers

In 1995, The Merck Company Foundation entered into collaboration with the Washington-based Ethics Resource Center (ERC) to establish a series of independent ethics centers in various regions around the world. Over the years, the centers have facilitated dialogue and action related to ethical business and organizational issues of importance in the countries where the centers are located. Supported financially by grants from The Merck Company Foundation to the Ethics Resource Center, each national center is managed by an executive director who is independent of either organization and from any other organization representing either the public or private sectors.

The first center to open was the Gulf Centre for Excellence in Ethics in the United Arab Emirates (UAE) in 1998. Led by a local director, the Gulf Centre developed a code of ethics for the UAE Ministry of Health and has conducted educational seminars for military, government and corporate entities. In 2004, the UAE center moved to Dubai and was renamed the Dubai Ethics Resource Centre. It is now housed within the Dubai Chamber of Commerce and Industry.

In addition to the Dubai Ethics Resource Centre, Merck has partnered with local organizations to launch additional ethics centers in South Africa, Colombia and Turkey. Each supports the work of governments, non-governmental organizations and the private sector in their efforts to foster a fair, transparent and open environment for business.

Ethics Institute of South Africa (EthicSA) - Launched in November 2000, the initial focus of this center is health care. EthicSA is managed by a world-renowned ethicist, with oversight by a distinguished Board of Directors with members from academe, business and the health sector. In its first 18 months, EthicSA conducted a survey of doctors' business practices and an ethics audit of a major public hospital, wrote general ethical guidelines for doctors, made numerous presentations and published papers internationally.

Transparencia por Colombia - Launched in Bogotá in May of 2001, Transparencia began as a partnership between The Merck Company Foundation, Fundación Corona and Transparency International Colombia. The center is currently engaged in developing ethics programs for larger domestic enterprises, small and medium companies and trade associations; and a business ethics curriculum for a consortium of universities focusing on contemporary challenges in Colombia.

The Turkish Ethics Values Center (TEDMER) - This fourth center was officially launched in January 2003 in Istanbul. The goal of TEDMER is to conduct research in the area of ethics, offer support and services to institutions and organizations seeking to implement ethics programs, define corporate ethical codes, and create benchmarks and standards. One of the more innovative programs of TEDMER is to work with a variety of universities in Turkey to create "ethics clubs." The purpose of these clubs is for students to understand the value of ethics in organizations, and to allow them to take these values as they transition from school to work.

In 2008, in the context of an overall review of Merck's philanthropic strategy, The Merck Company Foundation decided to phase out its investments in the ethics centers. This is aligned with Merck's practice of providing initial funding to establish important projects and working with our partners to encourage them to seek additional revenue sources to become self-sustaining and independent organizations. Merck is proud of the results that each center has achieved in establishing the importance of ethics reform in emerging markets, and ethics remains an important issue for the Company overall. The Merck Company Foundation is committed to assisting each center with support, both financial and non-financial, through a transition period. Funding to the centers will end in 2010.

In the spring of 2009, a new research report — "Anti-Corruption as Strategic CSR: A Call to Action for Corporations", - written by FSG Social Impact Advisors and sponsored by The Merck Company Foundation, was published and disseminated to stakeholders and key constituents in the Corporate responsibility community. This paper is a call to action for business to embrace anti-corruption as a strategic social responsibility — moving beyond risk mitigation toward proactively solving social problems critical to their business. To download a copy of the report, click here.

In addition, many Merck subsidiaries around the world have initiatives that promote ethical business practices. For example:

MSD Argentina–Promoting Transparency

MSD Argentina is working with the U.S. Embassy and the Catholic University of Buenos Aires to promote ethical and transparent business practices through "International Rules Against Corruption," a certificate program for government officials. MSD Argentina also supports the Center for Implementation of Public Policies for Equity and Growth (CIPPEC), a nonprofit organization that promotes public policy in education, health, justice, transparency and taxation.

MSD Spain–MSD Award for Research in Business Ethics

Designed to encourage research and discussion of corporate responsibility issues, the MSD Award for Research in Business Ethics is the first European initiative of its kind. Established by MSD Spain in 2001, the program seeks to raise awareness of the role of ethics in business and recognize best practices. The award's first call for submissions generated 16 research studies from across various sectors, including hospitals, business schools, nongovernmental organizations and universities. In the latest call for submissions, 15 studies were submitted, most of them from highly regarded entities and business schools, including some from outside of Spain.

The content on this page was last modified on September 15, 2009.

Merck & Co., Inc., Whitehouse Station, NJ, USA, and Schering-Plough Corporation, Kenilworth, NJ, USA, are now one company. We have combined our global operations under the name Merck & Co., Inc. We are working to update our corporate responsibility Web site to reflect our new, combined, global organization.