In May 2019 Ethical Consumer viewed Teva's website for information on how the company managed workers' rights in its supply chain. On the basis of what was found, Teva was rated as follows:

Supply chain policy (poor)

A strong policy would include the following commitments: no use of forced labour, permission of freedom of association, payment of a living wage, the restriction of working hours to 48 hours plus 12 overtime (without exception), no use of a child labour (under 15 or 14 if ILO exempt), no discrimination by race, sex or for any other reason.

Teva had a suppliers code of conduct which had adquate clauses on forced labour and descrimination. The clauses on wages and child labour were not considered sufficient because it only demanded compliance with local laws. There was no clause on freedom of association or on working hours. Overall the code was rated as poor.

Stakeholder engagement (poor)

Ethical Consumer deemed it necessary for companies to demonstrate stakeholder engagement, such as through membership of the Ethical Trade Initiative, Fair Labour Association or Social Accountability International. Companies were also expected to engage with Trade Unions, NGOs and/or not-for-profit organisations which could systematically verify the company's supply chain audits, and for workers to have access to an anonymous complaints system, free of charge and in their own language.

No information could be found on this. Teva was thus rated as poor.

Auditing and Reporting (poor)

Ethical Consumer deemed it necessary for companies to have an auditing and reporting system. Results of audits should publicly reported and quantitatively analysed. The company should have a scheduled and transparent audit plan that applies to their whole supply chain, including some second tier suppliers. The company should also have a staged policy for non-compliance. The costs of the audit should be borne by the company.

No information could be found on this. Teva was thus rated as poor.

Difficult issues (poor)

Ethical Consumer also deemed it necessary for companies to address other difficult issues in their supply chains. This would include ongoing training for agents, or rewards for suppliers, or preference for long term suppliers. It would also include acknowledgement of audit fraud and unannounced audits, and measures taken to address the issue of living wages, particularly among outworkers, and illegal freedom of association.

No information could be found on this. Teva was thus rated as poor.

Overall Teva received Ethical Consumer's worst rating for Supply Chain Management.

Reference:

Teva website (13 May 2019)

In May 2019 Ethical Consumer viewed an article on the Washington Post website dated 5th May 2019. It detailed how the legal actions around the US opioid crisis had moved beyond Purdue Pharma, maker of OxyContin, and were targeting other players such as Johnson and Johnson and Teva. These companies were accused of irresponsible marketing of opioids, including to children. These companies were therefore marked down in the irresponsible marketing category.

Reference:

Spotlight shifts to Johnson & Johnson as first major opioid trial nears in Oklahoma (4 May 2019)