Business Methods for Positive Social Impact

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1 1 Business Methods for Positive Social Impact Gary Cohen Executive Vice President President, Global Health and Development BD (Becton, Dickinson and Company) Forum on Public-Private Partnerships for Global Health and Safety 23 June 2016

2 BD Background Medical technology company founded in 1897 Global sales revenues approx. $12 billion Over 45,000 associates in 150 countries BD Life Sciences BD Medical Recognized for business ethics and social responsibility Company purpose: Advancing the World of Health

3 Methods for Positive Societal Impact Corporate Philanthropy Providing charitable donations of cash or in-kind products and services Example: Donating vaccines and devices to immunize children Corporate Social Responsibility Deploying business resources and competencies to achieve positive societal impact not directly linked to commercial outcomes Example: Training laboratory workers in developing countries Advocacy & Policy Alignment Supporting changes in laws or regulations for positive societal impact Example: Policy guidelines to improve safety for patients & workers Shared Value Creation Utilizing commercial business models to address unmet societal needs Example: Developing new innovations to address newborn mortality

4 Shared Value Creation What Distinguishes Shared Value Initiatives from Traditional Business Initiatives? Shared value initiatives are developed with an explicit intent to address unmet societal needs Focus is on major societal needs prioritized by governments and leading public sector agencies Shared value initiatives are most often pursued in collaboration with other sectors

5 Alignment with United Nations Development Goals

6 Healthcare Worker Safety Shared Value 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-engineered products design and manufacturing capacity Advocated for policy change in the US and in countries throughout the world Needlestick injuries substantially reduced (51% reduction for nurses in US from ) Largest source of BD growth over past 25 years

7 Healthcare Worker Safety Advocacy & Policy

8 Safe Childhood Immunization Shared Value HIV/AIDS & hepatitis were spread due to device reuse UNICEF & WHO sought technology to address problem BD & PATH co-developed first auto-disable syringe, entered field trials in 1988, launched 1991 Took eight years for widespread use: - Joint policy statement WHO/UNICEF/IFRC - Substantial cost reduction 11c to 5c - GAVI funding for global immunization Initiatives for tetanus and measles immunization supported use of auto-disable technology Over 6.5 billion auto-disable devices supplied during MDG period for safe immunization of children

9 Safe Childhood Immunization Advocacy & Policy

10 Safe Childhood Immunization Philanthropy

11 Lab System Strengthening Shared Value In late 1990 s, access to ART severely limited in the highest prevalence countries (mostly in Africa) Global funding mechanisms established in 2002/2003 Lab 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 implemented extensive CD4 training; over 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

12 Lab System Strengthening - CSR In 2007 BD, PEPFAR and CDC formed 5 year publicprivate partnership with $20 million funding commitment Renewed in 2012 for 5 additional years as Labs for Life Implemented in high HIV and TB burden locations in Uganda, Kenya, Ethiopia, Mozambique and India BD deploys expertise and training through internal volunteer recruitment mechanism Improved access to specialized testing services for MDR- TB, particularly in HIV co-infected patients Identified 14% of TB retreatment cases in Uganda as MDR Reduced TAT for TB testing from 3 weeks to 3 days in Uganda Supported development of a national laboratory quality assurance strategic plan in Mozambique

13 Maternal & Newborn Mortality 300 K + 10 million 2.7 M million

14 Maternal & Newborn Mortality Shared Value Intra-partum complications contribute to ~40% of maternal mortality and ~25% of newborn mortality Severe co-morbidities from prolonged 2 nd stage labour; 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 from Argentina Winner of Saving Lives at Birth: Grand Challenge for Development competition Presented to BD by WHO at Davos in January 2012 In development including clinical studies to demonstrate safety and efficacy Engaging in extensive cross-sector collaboration to bring to scale including accessibility in high burden populations

15 Maternal & Newborn Mortality Shared Value Design, Development & Manufacturing BD Odon Device Usage Guidelines/Regulatory* Development Funding Access Support to Countries* GFF Clinical Studies & Effectiveness Data Global Advocacy Last Mile Reach & Training* *In discussion

16 Maternal & Newborn Mortality Shared Value New Point of Care Maternal Health Diagnostic Tests Preeclampsia Gestational Diabetes

17 Key Learning and Takeaways Philanthropy, CSR and shared value creation are all important methods for companies to achieve positive societal impact. Determination of which approach to utilize for a particular purpose has been relatively straightforward. Unlike philanthropy and CSR, there is no scale limit to shared value creation. All three methods can work in combination to comprise a viable, high impact strategy for corporate social innovation. Public private partnerships are an art, not a science, many will fail, important to understand the factors that drive success. Collaboration requires trust. Care must be taken to choose partners, including companies, where motivations and goals are well aligned. The SDGs offer opportunity for companies to engage around well defined goals and targets that are relevant to their areas of technology and competency.

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19 1 9 Business Methods for Positive Social Impact Gary Cohen Executive Vice President President, Global Health and Development BD (Becton, Dickinson and Company) Forum on Public-Private Partnerships for Global Health and Safety 23 June 2016

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