US embassy cable - 05MADRID2057

UNCLAS SECTION 01 OF 02 MADRID 002057 
 
SIPDIS 
 
DEPARTMENT PASS TO EUR/WE 
EB/CBA FOR NSMITH-NISSLEY 
 
E.O. 12958: N/A 
TAGS: BEXP, EINV, ELAB, ETRD, KSEP, SENV, SP 
SUBJECT: SPAIN: 2ND SUBMISSION SECRETARY'S AWARD FOR 
CORPORATE EXCELLENCE 
 
REF: STATE 66434 
 
1. U.S. Embassy Madrid has the honor of nominating Merck, 
Sharp and Dohme (MSD), Spain's division of Merck 
Pharmaceuticals, for the 2005 Secretary of State's Award for 
Corporate Excellence.  MSD is a recognized leader in the 
business world, serving as a market leader in the field of 
healthcare technology in Spain for over 40 years, while 
adhering to the highest standards of corporate 
responsibility.  Its investment in Spain is valued at over 
370 million Euros ($462.5 million USD) and the production 
facility located in Alcala de Henares supplies Merck products 
to over 60 countries.  In addition, MSD's Madrid research 
facility has contributed to the discovery of five new drugs, 
which have been marketed worldwide.  This mission believes 
that MSD has exceeded traditional corporate standards of 
operation and is a strong contender for this award. 
 
2. Societal contributions.  MSD sponsors the SERMES Special 
Employment Center, which facilitates the vocational and 
societal integration of the handicapped by means of full time 
employment.  This program has resulted in the establishment 
of the first clinical research services company in Spain, 
employing handicapped personnel in areas such as monitoring 
clinical trials and other meaningful positions, while serving 
as an example to other companies within the sector.  MSD also 
works closely with both the Bill Gates Foundation and the 
Government of Botswana to establish a working distribution 
network designed to provide AIDS medication to people 
suffering from the disease in Africa.  The company 
contributes to the fight against AIDS within Spain, 
sponsoring the AIDS Research and Prevention Foundation.  In 
addition, MSD works to improve the health of Spain's 
immigrant community by publishing books for medical personnel 
on tropical diseases and their symptoms (diseases new to 
Spain), supplying health questionnaires in several African 
languages and by donating 500 doses of drugs designed to 
fight filariasis, a tropical disease prevalent among African 
immigrants.  Finally, MSD employees participate in the 
"advantages of staying at school" program, a five week 
volunteer program that targets students between the ages of 
11 and 13 by providing information on the importance of 
education. 
 
3. Corporate integrity.  In addition to providing specific 
employee training on corporate integrity, rules and values, 
MSD is actively involved in a number of organizations and 
activities that promote these values.  It is a founding 
member of Foretica, an association responsible for extending 
the good practices of business ethics and corporate social 
responsibility.  MSD participates in the Consultants Groups 
of the Labor and Social Affairs Ministry (Spanish 
government), working on issues related to Spanish regulations 
in the area of social responsibility, and sponsors programs 
in these areas in conjunction with two Madrid based 
universities.  Finally, MSD offers an annual research award 
on business ethics, the first of its type in Europe.  The 
award rewards the most outstanding research work in the field 
of corporate social responsibility and business ethics.  This 
year's winner, chosen from among 11 submissions, received the 
award for research in the field of minimizing the impact of 
corporate relocation on the local community. 
 
4. Educational contributions.  MSD is a major contributor to 
educational advances throughout Spain, providing support for 
research centers in several major Spanish universities that 
focus on fields unrelated to product development, such as 
economics and social research.  MSD also funds academic 
chairs connected with medical research in two major Madrid 
universities, sponsors the Barcelona Cardiovascular Research 
Center, and has provided annual grants in the amount of 
$200,000 to local researchers and clinical investigators over 
the last six years.  In addition, MSD sponsors studies and 
informative forums on women's health, to encourage a 
reduction in gender-based health inequalities, while 
maintaining an internet portal with information on domestic 
violence, women's rights and information on diseases 
prevalent in women.  Finally, MSD publishes and distributes 
Spanish language versions of the Merck manuals, a prominent 
informational series designed to assist medical personnel and 
ordinary people identify and treat various health issues. 
 
5. Environmental contributions. MSD works closely with the 
community of Alcala de Henares (the site of their largest 
plant) to promote environmental responsibility through 
reforestation efforts and educational projects, such as the 
"preferred neighbor" (joint education and cultural 
activities), "route of the cranes" (education on local bird 
species) and "botanical route" (education on local flora) 
programs.  MSD employees also participate in the "Prestige" 
volunteer program, donating time to the environmental 
restoration of the Galician coastline.  In addition to 
community projects, MSD employs strict environmental controls 
on their facilities, maintaining emissions that range from 10 
to 50 percent below Spanish legal requirements.  MSD also 
voluntarily participates in energy reduction programs, using 
solar panels to reduce energy consumption 3.5 percent over 
the last year.  Finally, MSD has an active waste management 
and recycling program that is monitored via environmental 
audits and inspections. 
 
6. Employment practices.  MSD does not have diversity 
programs in regard to employment, they have facts.  As a 
result of a conscious corporate effort, MSD employs a 
workforce of 1400 that consists of 50 percent women and 50 
percent men.  Its labor regulations are at the forefront in 
Spain, providing employees with programs such as flexible 
work schedules to accommodate family life, distance working, 
welfare benefits, corporate profit sharing and leadership 
development. Safety considerations also play an important 
role, with ongoing employee training and both internal and 
external audits and inspections contributing to the company's 
safety record. 
 
7. Post stand ready to provide further information about this 
nomination on request.  The POC for this nomination is 
Political/Economic Officer Michael Sestak; 
sestakmt@state.gov; 34-91-587-2388. 
 
MANZANARES