By focusing on people first, Merck always has been and always will be inextricably linked to diversity.

Now more than ever, with the successful merger of Schering-Plough and Merck, Merck is solidly positioned to achieve its vision of being the number one trusted and valued health care partner to the diverse patients of the world. Our strategy leverages a consistent, focused, enterprise-wide approach of global diversity and inclusion best practices that result in productivity, innovation and a corporate culture of leadership.

Merck defines diversity as a vast blend of organizational and human characteristics, needs, experiences and traditions. Merck defines inclusion as providing a sense of belonging to all members of the organization so that they feel welcomed, respected and valued, and can contribute at the highest level of their individual and/or team capabilities.

We believe that our human and organizational differences, when managed successfully, will make us a more innovative, agile and profitable company—able to quickly respond to the emerging global marketplace with critical business insights that reflect the needs of our diverse patients and customers.

Commitment from the Top

The single most significant driver of diversity and inclusion at Merck resides at the very top—with Merck CEO Kenneth C. Frazier, who continues the company's legacy and commitment to Global Diversity and Inclusion. Mr. Frazier views diversity and inclusion as critical to our business success.

Merck's core strength is the skill, integrity and creativity of its people. Merck employees, while remarkably diverse in background, training and life experiences, are all motivated by innovation and our mission of providing products that save and improve lives around the world. It is my privilege to serve as CEO of a company composed of such talented and dedicated people.

Kenneth C. Frazier
Chairman, President and Chief Executive Officer
Merck 2011

Governance

The Office of Global Diversity and Inclusion oversees the company's integrated effort to include diversity in all business practices. This office is led by a Chief Global Diversity & Inclusion Officer who supports division management in creating tailored diversity initiatives that fit business needs. The office also serves as a consultant to our Office of Ethics and Human Resources to resolve workplace issues involving diversity, and it oversees compliance with local, state, federal and global regulations.

In 1983, Merck received its first Office of Federal Contract Compliance Programs (OFCCP) Exemplary Voluntary Efforts Award, which honors federal contractors that have demonstrated exemplary and innovative efforts to increase the employment opportunities of under-represented ethnic groups, women, individuals with disabilities, and veterans. Since then, more than 50 OFCCP compliance audits conducted at Merck have all resulted in a Letter of Compliance. It is our intent to continue to achieve full compliance with the OFCCP guidelines under our functionally aligned affirmative action plans.

One Merck Diversity & Inclusion Awards

Merck clearly recognizes that our success is dependent upon the harmonious collaboration of our employees against clearly stated business goals. Diversity and inclusion are no exception. Now in its fourth year, Merck annually sponsors the Chairman's Global One Merck Diversity and Inclusion Award in recognition of the outstanding commitment of employees to achieving diversity excellence.

The objective of the Diversity and Inclusion Awards is to recognize employees at all levels from around the world who demonstrate extraordinary commitment to integrate diversity and inclusion throughout our company at both the individual and team level. In 2010, 39 finalists from Merck's global locations competed for honors in five categories. They were evaluated by a global judges panel, which included 23 employees from every region, division and band level in the company. The five categories of Global Diversity and Inclusion excellence were:

• Integrates and Collaborates
• Enhances Merck's External Image
• Demonstrates Personal Leadership
• Enhances Merck's Image through External Outreach
• Supports Merck's Business through Inclusion

Philanthropy

Merck values its relationship with organizations that reinforce the company's mission, values, and commitment to global diversity and inclusion. We continued to maintain a relationship with these organizations in 2010 despite challenging economic conditions, knowing that supporting them helps to build stronger and more robust relationships in the community. Our strategic alliances include:

• NCNW
• The Ph.D. Project
• The Society of Women Engineers
• The Healthcare Businesswomen's Association
• Catalyst
• Gay, Lesbian and Straight Education Network
• and more.

Employees with Disabilities

Merck understands that providing reasonable work accommodations and enabling employees with disabilities to perform the necessary functions of their jobs makes good business sense. To support employees with visible and non-apparent disabilities, and to ensure disabilities do not become barriers to employment at Merck, the company utilizes some of the following approaches:

• Merck launched a new disability-accommodations process for employees with visible and non-apparent disabilities. If special accommodations for the employee are needed, the Merck team works in partnership with the employee, the employee's business unit, the HR team, and the employee's healthcare provider to evaluate reasonable accommodation options. Structural considerations may include meeting accommodations, ergonomic furniture, travel and hotel special accommodations, and widened office area access.
• Merck provides state-of-the-art adaptive technologies, such as voice recognition software and Braille readers and printers, to help employees with disabilities.
• Upon acceptance of employment, a Merck Human Resources team works with each new employee to identify needs and develop a customized action plan that will be in place before the employee's first day of work. The plan is updated throughout the employee's career with Merck.