Global Compact International Yearbook 2017

Investments in education and
healthcare
In order to improve families’ living conditions,
Merck has not only reorganized its
mica supply chain, but also joined forces
with its local partner, IGEP, to initiate social
projects for the regional population.
The mutual goals are to improve access
to healthcare and to provide children
with prospects for school and a career:
• In the villages of Tisri, Barkitand, and
Saphi, Merck runs schools with affiliated
daycare centers attended by more
than 500 pupils. The lesson plan also
includes education on hygiene and
health. In Tisri, adolescents can also
receive training to become carpenters
or tailors. Furthermore, Merck supports
a fourth school in Koderma with
scholarships for 150 pupils.
• In Saphi, Merck has established a health
center, employing two physicians and a
nurse who also provide medical care at
the schools. In addition, these staff visit
the schools and villages in the vicinity.
Merck’s commitment has received a great
deal of recognition from civil society.
According to the SOMO study, the company
has implemented by far the best
measures – compared with other mica
importers – to eliminate child labor
from the supply chain and to improve
the conditions of the people living in
the mining regions.
Merck is also participating in multistakeholder
dialogues and initiatives to
improve living and working conditions
in the mica region. Merck is one of the
founding members of the Responsible
Mica Initiative, through which companies
and nongovernmental organizations
are combining their expertise and
strengths to improve labor conditions in
the mica mining industry of India and
to prevent child labor.
For more Information about CR at Merck,
please visit: www.merckgroup.com
HIGH SUPPLY CHAIN STANDARDS
Merck has taken various measures to safeguard the implementation of social
standards:
• Merck procures mica exclusively from controlled mines: Only a formal working
environment ensures compliance with global standards. If mica is gathered in
publicly accessible areas, child labor cannot be ruled out.
• With the help of a tracking system, Merck ensures that the supplied mica
comes exclusively from mines and not from uncontrolled sources: The mine
owners record the daily extraction volume of a mine in a logbook. The license
fees that the mine owners must pay to the government are based on these
documented amounts of mica. If mica from uncontrolled sources have also
been used, the mine owners would also have to pay license fees for these
volumes. This does not make economic sense because the mica would be
more expensive for the mine owner than the mica extracted from the mine.
Merck examines the volumes reported in the logbook and supplied to the
processing companies on a monthly basis.
• By means of audits, Merck monitors the compliant behavior of its partners. For
example, the audits include the ages of the workers, working hours, and paid
wages, as well as performed health checks and safety drills. In
addition, local Merck employees inspect the suppliers at regular intervals.
Moreover, Environmental Resource Management (ERM) and IGEP perform
their own audits as independent third parties. Whereas IGEP monitors
compliance with work standards once a month, ERM examines the working
conditions and compliance with environmental, safety, and health standards
annually.
Global Compact International Yearbook 2017 133