Astra Zeneca

Part II‐ What is the Company’s approach with reference to the sector to deal with

� People (Workplace/Market place/Community),

Workplace---

Diversity and inclusionValuing and promoting diversity is not a new commitment for AstraZeneca – but we know there is more to do to

make sure that diversity, in its broadest sense, is appropriately represented in our leadership, our workforce and

our thinking.

The diverse cultures, backgrounds, skills and experience of our global workforce bring great creative strength

and energy to our business and have a critical role to play in achieving our strategic objectives.

We have a commercial goal of 25% of our sales in 2014 coming from emerging markets, including China, Brazil,

Russia and India. Growing our business in these countries alongside our established markets means we are

working with an increasingly diverse range of stakeholders worldwide.

29.8% of people reporting to

SET were women (up from

25% in 2010).

27% of our Board and 51% of

our global workforce are women.

12.3% of people reporting to

SET come from outside the UK,

US and Sweden, up from 9.6%

in 2010.

Overall, 35% of our global talent

pool of future leaders come from

countries outside the UK, US

and Sweden.

Internal communications

delivered.

Three workstreams have been

developed:

1.Leadership

and management capability,

2.Transparency in talent

management and career

progression,

3.Work/life

challenges.

From our global employee

survey:

2% increase in diversity and

equal opportunity compared

to 2010.

2% increase in work/life balance

Global Principles to support work-life balance

AstraZeneca does not expect employees to work excessive hours on a regular basis.

We encourage ongoing dialogue and review of work expectations, including scope and timelines

with an emphasis on prioritizing and letting go of lower value work.

We believe good health and wellbeing are fundamental to the ongoing success of AstraZeneca

and therefore encourage managers and employees to work together to create flexible solutions,

to meet business goals while not interfering with time for family and friends, community

activities, exercise or sleep.

We encourage the use of technology to create solutions that are viable alternatives to face to face

meetings that require travel.

Safety, health and wellbeingProviding a safe workplace and promoting the health and wellbeing of all our people remains a core

consideration. Our commitment means that we work continuously to:

Ensure that safety, health and wellbeing considerations are integrated across all our activities.

Identify risks and ensure that these are understood and managed responsibly.

Help employees to understand their personal health risks and empower them to manage these.

Set clear targets focused on continuous improvement.

Our safety, health and wellbeing targets for 2011-2015 are:

Fatalities: zero tolerance

Accidents and illnesses: 25% reduction in combined accident and illness rate

Driver safety: 40% reduction in collision rate

Health & wellbeing: 80% of sites offer our 6 essential health programmes or services

Our approachBacked by our global Safety, Health and Environment (SHE) Policy, which requires the integration of safety and

health considerations into all our activities across the company, we work continuously to ensure that the risks are

understood and managed responsibly.

With the launch of the new SHE strategy, we took the opportunity to review and update our safety and occupational health risk profiles, and construct a roadmap of the activities and deliverables required to ensure we meet our 2015 objectives

Driver safetyIn recent years, our strengthened efforts to promote driver safety worldwide have delivered some improvements

and we are maintaining focus in this important area at all levels of the organisation.

Our commitment centres on promoting driver safety among our sales forces – collectively the single largest group

of employees who drive on company business – in total, some 23,000 people.

Our commitment to improving the safety of our drivers around the world centres on three programmes; DriveSuccess for countries outside the US, and Road Scholars within the US. MedImmune, our biologics arm, also have an established driver safety programme similar to Road Scholars. 

Health & wellbeingA healthy, energising workplace is good for our employees because it offers a more enjoyable work/life

experience and good for our business because it supports increased engagement and productivity alongside

reduced health-related costs.

The Strategy focuses on three key areas:

Personal Energy Management

Modules have been designed to help leaders and employees become more productive and effective under

pressure by managing their energy more effectively and learning how best to use it. We ran four pilots during

2011 and a full programme will be rolled out between 2012 and 2015.

Health screening

Health screening is currently available for employees at 74% of our sites / marketing companies and we are

working to make it available to all our employees, together with follow up options to support any necessary health

and lifestyle changes.

Essential Health Activities

Our Essential Health Activities framework consists of six global programmes and services that are being

promoted and tailored to suit local cultures and risk profiles. These are Physical Fitness, Healthy Business

Travel, Workplace Pressure Management, Tobacco Use Cessation, Healthy Eating and General Health

Promotion.

Standards and guidelines have been developed to support the implementation of programmes in these six areas

and we have set a target that requires ≥80% of sites / marketing companies to have all six in place by 2015.

Workplace Pressure Management was an area of particular focus during 2011. We want to provide a safe and healthy working environment, in which everyone can perform to their full potential and we know that managing pressure and promoting wellbeing is a major element of this.

Health & Wellbeing in Brazil

AstraZeneca Brazil identified that their young workforce are potentially at risk due to unhealthy lifestyle

behaviours and during 2011 undertook a series of health initiatives to help address this issue. Employees were

offered a Health Risk Assessment (HRA) with 60 individuals undertaking a medical examination. In addition to

the HRA, a Weight Watchers programme was also introduced. A vaccination campaign targeting Influenza and

Tetanus attracted 60% of employees. A tobacco cessation programme was also reactivated and screening for

asthma took place in July. More health initiatives are being planned for 2012, including a health self-care

education programme.

Taking the global challenge

For the fourth consecutive year we participated in the Global Corporate Challenge (GCC) in 2011. Over 5,400 of

our employees took part, walking over 6.5 billion steps collectively. With a company-wide average step count of

13,000, AstraZeneca was named the World’s Most Active Organisation by the GCC. Participants reported feeling

healthier, having lost many (welcome) pounds in weight, were sleeping better and had more energy.

Managing changeIn 2011, the most significant business change was the implementation of the R&D strategy announced in 2010, which also involved a number of site changes. While the net impact by the end of 2011 was a reduction of approximately 1,400 roles, almost all R&D employees worldwide were impacted in some way by this change. While the net impact by the end of 2011 was a reduction of approximately 1,400 roles, almost all R&D employees worldwide were impacted in some way by this change. In order to mitigate further job losses, over 750 employees were redeployed where appropriate skills and capabilities allowed.

 Trade unions and employee representative groups are involved throughout the restructuring process. With significant investment in outplacement support, high levels of success were achieved in finding employees alternative opportunities outside AstraZeneca in 2011.

Where this is the case, the appropriate solution is developed through consultation with employee representatives or, where applicable, trade unions, with the aim of retaining key skills and mitigating job losses.

2011 Performance

23% improvement in the lost

time injury/illness rate compared

to the baseline year (2010).

Collisions per million kilometres

(CPMK) driven was 7.9 – a

slight increase of 5.6% on 2010,

narrowly missing target of

7.7 CMPK.

86% of our sites around the

world offered at least one

essential health programme.

Statistically significant 2%

improvement in the Work Life

Balance category and also the

Wellbeing Index in our 2011

Global Employee survey.

Working with suppliersAstraZeneca uses thousands of suppliers around the world. Being a responsible business means we only work

with suppliers who have ethical standards that are consistent with our own.

Monitoring standards and performance with many suppliers is challenging, but this is essential to protect our

business and reputation, and most importantly the patients who use our medicines.

Business practices, cultural norms and legal requirements can vary from one country to another. Our Global

Responsible Procurement Standard makes it clear what we expect of suppliers wherever they are based and we

work with suppliers to help them understand and comply with these standards.

In 2011 we continued to assess, monitor and manage our supplier performance. We updated our global standard to strengthen the anti-bribery and anti-corruption (ABAC) requirements, in line with our ABAC policy and the requirements of the UK Bribery Act.

During 2011, we focused in particular on:

Continuing risk assessments of suppliers

Rolling out a programme of onsite audits of key suppliers

Implementing plans to improve standards with certain suppliers

Following up and verifying that progress is being made with suppliers

Training staff on our standards

Market place---

Community---

At AstraZeneca, we are dedicated to the research, development, manufacture and marketing of medicines that make a difference in healthcare. For us, this is at the core of our responsibility to our stakeholders and to society.

We regularly hold health camps for women to tackle maternal mortality and make safe motherhood a reality for Indian mothers.

Our camps especially focus on educating younger women about reproductive health.

We vaccinate young girls with the Rubella vaccine to protect them against German measles during pregnancy.

And we also provide them with basic medicines, such as iron and calcium tablets.

In partnership with the Federation of Obstetrics and Gynaecology (FOGSI), we’ve worked on several initiatives to increase public awareness and education on this topic.

AstraZeneca Young Health Programme

One fifth of the world’s population is aged between 10 and 19 years old and many of these young people don’t

get the support they need to deal with the health challenges that can significantly impact their lives.

Our AstraZeneca Young Health Programme is designed to help young people in need around the world

understand and deal with the health issues they face. Adolescent health remains an underserved part of the

healthcare care agenda and this is a long-term investment programme that aims to make a measurable and

sustainable difference, helping to improve a generation’s health

Excellent work in Bulgaria, UK, Central America , Korea

In 2011, we spent a total of $1.27 billion (2010: $1.41 billion) on community sponsorships, partnerships and charitable donations worldwide, including our product donation and patient assistance programmes which make our medicines available free of charge or at reduced prices.

 Nine local programmes now running. This is one less than targeted for 2011 but we have 11 more programmes in development with some of these due to launch early in 2012 and the others before the end of the year. Our target for engagement was that 35% of employees would feel positively motivated towards the business from their contact with the Young Health Programmes, either through learning about the programme or actively

supporting the programme. Through a sample survey1, we found that of those employees who said that they were either “proud “or “very proud” to work for AstraZeneca, 46% said that community investment activities including Young Health Programme contributed to this level of pride.

Our 2011 community investment is reported in line with London Benchmarking Group standards and our community investment score in the Dow Jones Sustainability Index showed an improvement compared to 2010, although there is still room for further improvement in 2012.

Disaster relief

During 2011, we made a number of contributions to disaster relief efforts, including donations from our Charities

Aid Foundation (CAF) account. We also developed an enhanced protocol for working with the British Red Cross,

our global disaster relief partner, to improve our internal co-ordination and enable us to respond in a timely,

consistent and effective way to emergencies as and when they arise.

a) From our CAF account, we donated £10,000 (approximately $16,000) to the British Red Cross New Zealand Earthquake Appeal and £100,000 (approximately $162,000) to the British Red Cross Libya and Region Appeal to help support those who had fled to neighbouring countries to escape the violence in Libya.

b) Following the earthquake in Japan, we donated Yen 51 million (approximately $910,000) as part of an overall pledge of one hundred million Japanese yen (approximately $1.8 million) to Ashinaga Ikueikai (Ashinaga) to support their ongoing relief and rebuilding effort. In addition, employee donations from AstraZeneca in Japan totalling 25.5million Yen (approximately $300,000) were matched by the company.

c) We also donated $25,000 to AMREF to support their local networks in North East Kenya, where the Horn of Africa drought was having a devastating impact..  Donations were matched up to US$50,000 by AstraZeneca Thailand .

� Planet (Environment)