Ethical Business Practices Performance Data Summary 2005-2008

	2008	2007	2006	2005*
Percentage required employees who took Know the Code training	90	90	N/A	N/A**
Percentage response to disclosure statement on conflicts of interest	99.9	97	95	93
Number of calls to the Merck AdviceLine	151	149	77	80
Number of calls to Office of Ethics/Ombudsman	583	600	597	770
Percentage of substantiated (including alternate findings) allegations to concerns/issues raised in connection with our Code of Conduct through AdviceLine or Office of Ethics/Ombudsman***	10.9	9.5	8.3	10.2

* 2005- noted as baseline.
** Know the Code was first implemented globally in 2007.
*** When Merck substantiates allegations of eithical misconduct, it imposes a variety of disciplinary actions on those responsible for the misconduct, such as dismissal from the Company, issuance of final written warning letters and financial penalties.

As we hire new employees, they undergo ethics training (Know the Code) within 30 days of joining Merck. To date, 90 percent of Merck employees have taken the Know the Code training and we anticipate this will be nearly 95 percent by the end of 2009. Our annual response rate to the disclosure statement on conflicts of interest remains high and we anticipate that, for 2009, we will reach nearly 100 percent. The number of calls to the Office of Ethics/Ombudsman has declined since 2005. This includes a 30 percent reduction in calls related to human resource-related issues. We believe this can be attributed to the fact that we have strengthened our performance management processes, requiring more ongoing performance discussions between managers and their employees. As a result, more issues are being discussed and resolved at that level. The decrease in calls also reflects the fact that we have recently reduced the number of employees as part of our restructuring program. The calls to the Merck AdviceLine almost doubled from 2006 to 2007, due in part to greater awareness of the AdviceLine as a result of increased employee communications.

Awareness and Acceptance of Merck’s Code of Conduct:

Results of a recent global employee survey, known as the Merck/MSD Culture Assessment, showed high levels of understanding and acceptance of Merck's Code of Conduct. Highlights of responses included:

• Merck scored in the 91^st percentile on employee agreement that there is an ethical code that guides our behavior and tells us right from wrong. (2 percent decrease from '07 assessment)
• With a score at the 84^th percentile there is strong agreement that there is clearly a right way and a wrong way to do things at Merck. (6 percent decrease from '07 assessment)
• A score at the 77^th percentile revealed that Merck employees strongly agree that there is a clear and consistent set of values that governs the way we do business. (11 percent decrease from '07 assessment)
• Employees also said ignoring core values will get you in trouble (85^th percentile). (2 percent decrease from '07 assessment)

Financial Support of Activities with Independent Third-Party Groups:

• In October 2008, Merck began reporting grants over $500 made by its Global Human Health division to U.S. organizations for independent professional education initiatives, including accredited continuing medical education (CME). Over the course of 2009, we will expand our reporting to include other grants/payments to U.S. organizations. Beginning in 2009, grants to patient organizations made in European Federation of Pharmaceutical Industries and Associations (EFPIA) member countries are also being reported on a quarterly basis. (insert link to new page)
• In June 2008, Merck implemented Guiding Principles for Business Practices Involving the Medical and Scientific Community. These principles serve as a bridge between country laws, regulations, industry guidelines, and the Company's Values and Standards, which are articulated in Company policies, guidelines, and procedures, and apply to all employees. The principles are intended to enable interactions with the medical and scientific community that comply with our ethical and legal obligations and improve human health.
  
  

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

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