Creating Shared Value

Medical technology company founded in 1897

Global revenues est. $12 billion

47,000 employees in 55 countries

Country operations in India including manufacturing since 1997

Recognized for business ethics and social responsibility

Company purpose: Helping All People Live Healthy Lives

BD Life Sciences

BD Medical

Corporate Philanthropy Donations of cash or in-kind products and services for the purpose of supporting positive societal contribution. Example: Product donation to immunize children

Corporate Social Responsibility Deploying business processes and core competencies to produce an overall positive impact on society. Example: Training caregivers in low-resource health facilities

Shared Value Creation Commercial strategies, products and services developed specifically to address unmet societal needs. Example: Innovations to reduce maternal and newborn mortality

Principles of Shared Value

What is Shared Value?

Addressing a societal need with a business model

to simultaneously create social value + economic value

Societal Needs and

Goals

Company Profitability and Growth

Shared Value

Creation

“Creating Shared Value,” Prof. Michael Porter and Mark Kramer,

HBR, Jan-Feb 2011

”

“ Shared Value holds the key to unlocking the next wave of business innovation and growth. An ongoing exploration of societal needs will lead companies to discover new opportunities for differentiation and repositioning in traditional markets, and to recognize the potential of new markets they previously overlooked.

Source: FSG and Michael Porter 2013

Building Clusters and Framework Conditions

Redefining Productivity in the Value Chain

Reconceiving Products and Services

1

3

2

Collaborating across key stakeholder groups within and beyond the business sector to achieve favorable conditions for both commercial and social gain

Establishing supply chain, production processes and distribution systems that reduce costs while achieving environmental and social benefits

Developing products and services that meet societal needs and create new markets and opportunities

Source: FSG and Michael Porter 2013

Shared value initiatives are conceived and pursued based on an explicit goal of addressing unmet societal needs

What Distinguishes Shared Value Initiatives from Traditional Business Initiatives?

Shared value initiatives are typically pursued in collaboration with other sectors (via mechanisms such as

Public-Private Partnerships)

Focus is on major societal needs prioritized by governments and leading international agencies, such as

Millennium and Sustainable Development Goals

Technology Access (Shared Value) - Auto-Disable Immunization Devices with PATH - CD4 Testing with Clinton Foundation - TB Diagnostics with FIND - BD Emerald™ Reuse Prevention Syringes - BD Odon Device™ with collaborative partners

Training & Knowledge Transfer (CSR) - BD Volunteer Services Program - Labs for Life with PEPFAR, CDC, GOI & NACO - Safe-i with NASB India - Phlebotomy COE with Dr Lal Path Labs in India - TB Lab Strengthening with USAID Indonesia

Social Investing (Corporate Philanthropy) - Maternal and Neonatal Tetanus with UNICEF - Measles Partnership with Red Cross - Wellness Centers with Intl. Council of Nurses - Millennium Villages with Earth Institute - Ebola Donations with Direct Relief and LMH

Advocacy & Policy (Cluster Development) - Healthcare Worker Safety Legislation - Immunization Safety in India - Together for Girls with UN and USG Agencies - UN Commission on Life-Saving Commodities - WHO Injection Safety Guidelines

Sharp Object Injury Prevention • Needlestick injuries to health workers can spread HIV,

hepatitis B and C

• BD a pioneer in global effort to protect health workers from sharps injuries, starting in 1980’s

• Engaged with leading experts and advocates, funded training and surveillance systems

• Invested ~$1 billion in safety products design and manufacturing capacity

• Advocated for policy change in the US and in countries throughout the world

• SAFE-i program in India emphasizes need for SOI prevention

• Needlestick injuries substantially reduced (51% reduction for nurses in US from 1993 – 2004)

• Largest source of BD growth over past 25 years

Immunisation and Curative Injection Safety • Hepatitis and HIV are spread from unsafe injections

• BD and PATH co-developed first ‘auto-disable’ immunisation syringe, launched in 1991

• Took eight years for widespread use following policy changes, funding, substantial cost reduction

• Over 5 billion immunizations delivered safely since 1999; eliminated entire category of disease spread

• BD’s advocacy for safe childhood immunisation in India included plenary speech at IAP Congress in 2001

• Curative injection safety remains a major unmet need

• WHO issued new injection safety guidelines in 2015, encouraging use of ‘smart syringes’

• BD Emerald™ Pro, manufactured in India, is one example

CD4 Technical Training and Testing • By late 1990’s, anti-retroviral drugs prevented death of HIV & AIDS

patients in the US and Europe

• Access was severely limited in the highest prevalence locations (mostly in Africa)

• Global funding mechanisms established in 2002/2003

• Laboratory tests essential for effective ART, particularly CD4 and viral load, but lab capacity very limited in Africa

• BD entered into access pricing agreement with Clinton Foundation (CHAI) in January 2004

• BD invested in extensive ‘GLP’ training efforts; >8000 lab technicians trained to date in over 60 countries to date

• CD4 testing became widely accessible in resource-poor countries

• New point of care CD4 instrument recently launched

BD Odon Device for Assisted Childbirth • In 2013 2.8 million newborn mortalities and 2.6 million stillbirths;

289,000 women died in childbirth, 10M severe complications

• Intra-partum complications contribute to ~40% of maternal mortality and ~25% of newborn mortality

• Severe co-morbidities from prolonged second-stage labour include infection, fistula, incontinence, fetal demise, fetal asphyxia

• Present extraction methods -- forceps, vacuum and caesarian section -- introduce varying risks

• BD Odon Device™ invented by auto technician; winner of ‘Saving Lives at Birth: Grand Challenge for Development’ competition

• Applicable in industrialized and developing countries

• BD leading technology development and WHO leading clinical trials

Design, Development & Manufacturing

Usage Guidelines/Regulatory

Development Funding

Access Support to Countries*

Clinical Studies & Effectiveness Data

Global Advocacy ‘Last Mile’ Reach & Training*

BD Odon Device™

GFF

Schools & Universities

*In discussion

Family Planning

Prenatal

Labour and Delivery

Neonatal Build an innovation portfolio well aligned to external priorities that addresses leading causes of maternal and neonatal mortality and morbidity - and mobilizes blended financing support -towards the goal of creating a sustainable maternal and newborn health business

Vision and Goals

• BD Odon Device™ for prolonged, troublesome second-stage labour

• Sayana Press® packaged in BD Uniject™ Injection System

• Philanthropy and CSR remain essential for companies to achieve positive social impact. Both have limits to their scale.

• There are no scale limits in shared value creation; companies solve social problems with sustainable business models.

• All three methods work in combination to comprise a viable, high impact strategy for addressing societal needs.

• Companies must demonstrate high integrity to work effectively across sectors; trust is important, motivations need to be aligned.

• Public private partnerships are an art, not a science, many will fail, important to understand the factors that drive success.

• Companies need to determine how they support achievement of the Sustainable Development Goals; shared value can play a central role.