Eli Lilly : Racial discrimination

Presented by:Bijoy Viswanadhan

Jayrama K, DV Annapurna, Vinu RaiVenue:

IBS Bangalore for eMBA Workshop

Agenda

• Introduction• Eli Lilly background• Workplace diversity• Racial discrimination & issues • Analysis for Damage Control• Learning form Lilly

Introduction

Eli Lilly & Company (Lilly),

World's leading pharmaceuticals company,

claims to have a very good diversity program running at the company.

Widely regarded as a very good global employer.

Focusing Issue:

Federal lawsuit regarding Racial Discrimination practices.

Eli Lilly and Company• Founded May 10, 1876

• More than 46,000 employees worldwide

• Approximately 8,800 employees engaged in research and development

• Clinical research conducted in more than 60 countries

• Research and development facilities located in 9 countries

• Manufacturing plants located in 13 countries

• Products marketed in 138 countries

Developments at Eli Lilly• Alimta®, the first and only chemotherapy regimen approved by the FDA to treat patients with

malignant pleural mesothelioma who are not candidates for surgery • Symbyax™, for bipolar depression • Cialis®, a distinctive new treatment for erectile dysfunction from the Lilly ICOS joint venture • Stratterra®, the first FDA-approved nonstimulant, noncontrolled medication for the treatment of

attention-deficit hyperactivity disorder in children, adolescents, and adults • Forteo®, first-in-class medicine for osteoporosis patients that stimulates new bone formation • Xigris®, the first treatment approved for adult severe-sepsis patients at a high risk of death • Evista®, the first in a new class of drugs for the prevention and treatment of postmenopausal

osteoporosis • Zyprexa®, breakthrough product for schizophrenia and acute mania associated with bipolar

disorder • Humalog®, a fast-acting insulin product • Gemzar®, for pancreatic and non-small-cell lung cancer, one of the world's best-selling

oncology agents • Humatrope®, therapy for growth hormone deficiency • Prozac®, which revolutionized the treatment of depression • Humulin®, human insulin, the first human-health-care product created by biotechnology • Ceclor®, which became the world's top-selling oral antibiotic • Iletin®, the first commercially available insulin product, in 1923

Eli Lilly - HR & Financial sightEmployees

U.S 24,473

Outside U.S. 21,667

Worldwide total 46,140

Products sold 138 countries

Financials(dollars in millions, except per-share data)

Total Revenue $18,633.50

Gross profit $14,384.70

Operating Income $3,876.80

Net Income $2,953

Workplace Diversity @ Lilly

Lilly is an “Equal Opportunity Policy” employer

1. Motivating its employees to be innovative and take risks even though thy may not all be profitable .

“long the employees study from there mistake, don’t worry about the mistakes”

2. Best 50 Company’s for Minorities (Fortune Magaznie 2003)

Core Values.:-

• Respect for people,• Integrity, • Excellence

Discrimination @ Lilly

Has Lilly been unequal to its employee ?!!

The legal battle began in 2006,

Cassandra Welch complained to the company's HR department about harassment. According to Ms. Welch's account, the company did not respond appropriately.

The company has denied firing Welch for retaliation and has insisted that she was let go because she forged emails. Lilly also declared to continue its effort to promote workplace diversity.

Other workers like Joy Mason and Kelly French voiced similar complaints about harassment and race discrimination at Lilly.

NAACP had come forward and joint the legal battle against the Lilly.

National Urban League (NUL) decided to honor Lilly

• Video

Learning from Lilly

Has Lilly considered adequate damage control measures ?

Corrective measures

Was there any enquiry conducted based on the first place itself ?

Was there any corrective action performed based on such allegation ?

Was there any preventive action taken and communicated with in its employees ?

Preventive measures

1. Being a global company, Lilly should enforce the already existing framework to ensure workplace diversity periodically..

2. A time bound HR checklist and employee feedback system should be implemented to harness the system more effective..

Thanks!