Our Approach to Corporate Responsibility

Learn how we're working toward better health for our planet and people everywhere.

McKesson Corporation (McKesson) is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. We partner with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare to help provide the right medicines, medical products and healthcare services to the right patients at the right time, safely and cost effectively.

In FY19, we employed approximately 80,000 people, and our total revenues exceeded $214 billion. We operate primarily in the United States, Canada and Europe.

For McKesson, corporate responsibility (CR) means better health for our planet and people everywhere. As a company, we’re working to use our economic, environmental, social and governance resources thoughtfully and responsibly. That way, we can make a positive impact on our company, our environment, and our society.

The cornerstones of our approach to corporate responsibility are compliance and ethics and strong corporate governance.

Compliance and ethics

At McKesson, we believe that integrity is the foundation of our culture and is critical to our long-term success. We work to inspire and enable McKesson employees to act with integrity in all we do.

United by our ICARE shared principles

Everything we do is driven by our shared principles, known as ICARE. These principles are a uniting force, connecting us across business units, geographies and functional areas. They shape our corporate culture. And they help us make a positive difference for patients, customers, partners, communities, shareholders and one another.

ICARE is what we expect from each other, and what the people we touch expect from McKesson.

Our beacon: The McKesson Code of Conduct

Our company operates in diverse business and regulatory environments. To ensure that all employees uphold the highest legal and ethical standards, we embed them in our Code of Conduct and require regular formal training on it.

A shared document across our company, our Code of Conduct is based on ICARE. It describes the fundamental principles, local policies and procedures that shape our work. It covers a wide range of topics that may occur when interacting with customers, industry partners and each other. It gives helpful guidance regarding where to turn in case of questions or concerns about the right thing to do. The Code of Conduct is available in 10 languages.

Compliance is integral to our culture

Compliance is an integral part of our company and leadership culture. It refers to our obligation to laws, regulations and internal guidelines. For us, compliance is more than just following rules. It includes considering the actions we take, and adapting to new challenges and situations, always guided by our ICARE principles.

For our culture to be sustainable, we need to involve everyone within the company. To meet the dynamic changes in this area, we continuously review our compliance management system and self-imposed standards.

How we’re organized

Our Chief Compliance Officer is aided by a Compliance and Ethics Group as well as a designated compliance officer for each of our businesses. The Chief Compliance Officer oversees and monitors implementation of our programs, including the standards and guidelines set out by regulators.

Our compliance program includes:

  • Written policies and procedures
  • Compliance communications and web resources
  • Regulatory and compliance training
  • Internal auditing and compliance monitoring
  • Toll-free whistleblower hotlines
  • Investigations relating to compliance and ethics
  • Corrective and/or preventive action, where necessary

In FY19, our Board of Directors formed a Compliance Committee to enhance oversight of McKesson’s compliance program and management’s identification and evaluation of our principal legal and regulatory compliance risks.

Raising concerns and seeking guidance

Every employee is responsible for ensuring we comply with the laws, regulations and ethical standards affecting our business.

Our employees raise concerns if they believe something inappropriate is happening at work. Managers have a duty to listen to employees’ concerns and react to those concerns in an appropriate manner. By fostering an open environment, where all employees feel free to speak up without any fear of retaliation, we seek to advance our culture of compliance and integrity.

The McKesson whistleblower hotlines are available 24 hours a day, 7 days a week, in multiple languages. It allows employees to raise concerns (anonymously if they wish), including possible violations of McKesson policies or other illegal or unethical activity.

We investigate all allegations, and we provide reports of allegations and investigations to senior management and the Compliance Committee of the Board of Directors. The Audit Committee of the Board of Directors also receives reports on any allegations and investigations regarding accounting, internal accounting controls or audit matters.

The hotlines are only one of the ways employees can raise concerns. We encourage employees to contact their supervisor, business unit compliance officer or the Human Resources or Legal departments with any concerns. We strictly prohibit retaliation against an employee who makes a good faith complaint through any channel. After investigating, we develop a corrective plan, as needed.

Preventing corruption

We do not tolerate corruption or bribery in our business practices by our employees or by third parties working on our behalf. We don’t promise, offer or give anything of value to a government official or an employee or representative of our business partners with the intent to improperly influence their conduct. Similarly, we don’t receive anything of value that could be interpreted to improperly influence our conduct. We expect our business partners and third parties working on our behalf to comply with all applicable anti-corruption and anti-bribery laws and standards.

Preventing slavery in our supply chain

McKesson is committed to the highest ethical standards. To fulfill these standards, we take steps to ensure that slavery and related human trafficking do not form part of our supply chain, consistent with the UK Modern Slavery Act.

Serving government customers

As one of the largest government contractors in the U.S., McKesson is proud to partner with government customers to meet the healthcare needs of veterans, active military, children and disadvantaged groups. McKesson recognizes that our government customers face unique challenges and obligations, and we are dedicated to helping our customers succeed. Our Compliance and Ethics program is critical to the success of our government contracts.

Our take on good governance

A balanced corporate governance approach aims to strengthen confidence in our company — both in the capital markets and among the public — and creates value over the long term. We know that good corporate governance advances trust among our shareholders, business partners and employees, promotes transparency in our company, and contributes to sustainable growth.

Here’s a look at our practices and processes for running our company responsibly.

We have an Independent Board Chair

Edward Mueller, previously Lead Independent Director, took over as Independent Chair of McKesson’s Board of Directors on April 1, 2019. He has been a member of the Board of Directors since April 2008 and the Lead Independent Director since July 2013.

Our Board champions diversity and inclusion

Every company should bring together diversity of thought. That extends to our executive leadership. At the time of publication, three of our ten directors are women and two of our directors are persons of color. Since 2002, women have held three seats on our Board.

Annual evaluations keep our Board going strong

Our Independent Board Chair conducts annual performance evaluations for every one of our Board members. That way, we make sure all of our leaders are committed to McKesson’s values and future.

We plan for what’s next in leadership

Our Board reviews and provides input on our succession plan for developing our next generation of leaders, our CEO and executive officers. During FY19, the Board unanimously selected Brian Tyler, then president and chief operating officer of the company, to succeed John Hammergren as CEO, effective April 1, 2019. Brian is a 22-year McKesson veteran who has led nearly every major business within the company as well as McKesson’s corporate strategy and business development unit.

Key governance attributes include proxy access and the right to call a special meeting

When our shareholders hold at least 3% of the company’s stock for at least three years, they can nominate director candidates to fill up to 20% of available Board seats. We also allow record holders who have held at least 15% of our outstanding shares for at least one year to call a special meeting of stockholders.

We tell you about our political contributions and lobbying activities

Transparency and accountability matter to us. In the U.S., we voluntarily disclose corporate political contributions and file reports on lobbying activities where required by law. Additionally, we provide a list of trade associations with annual payments of more than $50,000. We also prohibit trade organizations from using our contributions for political purposes. In 2019, we further enhanced our political contributions and lobbying policy for the third consecutive year in response to shareholder feedback and included more prominent disclosure of our public policy approach and priorities.

Risk oversight is a top priority

The entire Board and its committees work to understand and review our corporate risks. They oversee everything from our reputation and legal and financial reporting risk to compensation practices and cybersecurity.

We have a global Code of Conduct

As described earlier in this report, our Code of Conduct is where we detail the policies and procedures that shape our work. It helps our entire team make ethical decisions. We’ve adapted and translated our code to make sure it works in every place we do.

Guidelines help us keep up with governance

Our Corporate Governance Guidelines set forth our Board’s goal of building long-term value for our stockholders and are consistent with New York Stock Exchange (NYSE) listing requirements. Our guidelines call for the Board to monitor the performance of our company, including with respect to Environmental, Social and Governance matters, and our guidelines. They include things like:

  • Director qualification standards
  • Access to management and independent advisors
  • Compensation
  • Director orientation
  • Continuing education
  • Management succession

Our Board members are independent

Other than?CEO Brian Tyler, every one of our Board members is independent, which follows the NYSE requirements and our Corporate Governance Guidelines.

The Board reviews our corporate responsibility practices

The Board of Directors periodically reviews our company’s corporate responsibility practices, including environmental sustainability, pay equity and diversity and inclusion.

We do more to earn trust

  • We do not have a poison pill
  • We eliminated supermajority voting requirements
  • We have a majority voting standard for uncontested director elections

If you have any questions about McKesson’s governance, let us know.

How we put together this report

This page, along with the three pages listed in the blue box at the bottom of this page, represent our FY19 Corporate Responsibility Report (PDF, 1.85 MB).

In FY18, we worked with our stakeholders on a materiality assessment, which is a process to identify and prioritize potential topics that could affect our company.

The assessment included in-depth interviews and surveys with 95 stakeholders from Canada, Europe and the U.S. They included employees, customers, suppliers, industry associations, government agencies, NGOs and joint venture partners. We involved senior leaders from multiple business units and corporate functions and sought out the perspectives of our shareholders.

We also brought in peer benchmarking, impact mapping, synthesis and analysis of our results. The work resulted in a materiality matrix, validated with internal leaders, and a list of prioritized topics and opportunities raised through the materiality process.

Through the assessment, we identified the following topics as particularly material to McKesson: product quality and patient safety; eco-efficient transport and operations; ethics and compliance; partnerships and engagement; access to healthcare and community health; and employee recruitment, engagement and retention. Based on the assessment, we developed a global corporate responsibility report that puts emphasis on the following three topics:

  1. Product quality and patient safety
  2. Eco-efficient transportation and operations
  3. Better health for employees and communities

This page, along with the other three described above, covers the good we’re doing in the countries where we operate. That includes our work in?Canada, Europe and the United States. Our business in the Netherlands (Brocacef Groep) is not included in the report scope.

For more information about our operations, including joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can significantly affect comparability, please refer to the FY19 10-K, McKesson’s Annual Report.

The Global Reporting Initiative (GRI) framework

We’ve prepared our report in accordance with the “Core” version of the Global Reporting Initiative (GRI) Standards. It includes topic-specific standards that we identified through our materiality assessment.

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