Global Inclusion and Diversity

Although having a diverse employee population (for example, in terms of age, gender, sexual orientation, race, ethnicity or religion) is essential, diversity alone does not ensure an inclusive culture. An inclusive organization must also ensure that company policies, programs, processes and systems engender respect and enable all employees to work together effectively.

Baxter believes that an inclusive culture nurtures innovation, creates trusted partnerships with customers, suppliers and community partners, and contributes to business success and sustainability. This belief forms the foundation of Baxter's global inclusion and diversity strategy, which is directly linked to one of the company's shared values - respect for individuals and the diverse contributions of all.

Baxter's global inclusion and diversity strategy focuses on four key areas:

• Workforce - building a globally diverse organization;
• Workplace - creating an inclusive culture in which diversity is valued;
• Communities - building partnerships with community-based organizations that embrace and support diverse stakeholder groups; and
• Marketplace - creating competitive advantage by promoting Baxter's commitment to inclusion through its brand, customers and supplier relationships.

Global Inclusion Council

Baxter’s Global Inclusion Council, established in 2008, provides thought leadership, guidance and support to enhance the company’s inclusive culture. Composed of leaders from the company's businesses, regions and functions worldwide, the Council's charter is to:

• Promote and advocate Baxter's inclusion philosophy and initiatives;
• Identify and address issues and barriers in the workplace that could impact an inclusive culture;
• Recommend new ideas or initiatives to accelerate an inclusive culture;
• Identify opportunities to leverage existing initiatives across the company; and
• Ensure inclusion initiatives align with Baxter's business priorities.

The Council's executive sponsor is Baxter's Corporate Vice President, President - Renal, Carlos Alonso. The Council is led by Baxter's director, Global Inclusion and Diversity, who also is a member of the company's Sustainability Steering Committee. This structure allows for alignment and support among the company's senior leadership, Sustainability Steering Committee and the Global Inclusion Council.

All of Baxter’s senior executives included an inclusion and diversity goal focused on the improvement of gender and/or ethnic minority representation and a more inclusive work environment in their annual performance plans, indicating a very strong commitment to inclusion and diversity from the top down. In addition, Global Inclusion Council members developed inclusion plans that cover each business, region and function. This customized approach addresses inclusion challenges that vary by location.

For example, Baxter’s BioScience business launched a program to partner with local community organizations to help employees better understand the principles of inclusion through a focus on engaging local women and minority organizations. Baxter’s facility in Thousand Oaks, California, United States, for instance, hosted an Association of Women in Science monthly symposium. In addition, through a partnership with Vienna’s University of Natural Resources and Life Sciences’ BOKU first (Females in Research, Science, and Technology) project , Baxter recruited five women to complete their master’s theses in fields related to quality, manufacturing and research and development at Baxter’s Vienna facility.

Baxter has also taken steps to increase ethnic and gender diversity throughout the company. In 2010, the Finance department increased the diversity of participants in its Financial Development Program by enhancing and expanding relationships with diverse universities for recruiting purposes, and more effectively retaining talent. As a result of the program, the Finance department reported a significant increase in the program’s ethnic and gender diversity for 2011: women received 67% of open leadership positions (vs. 43% in 2010) and minority individuals received 44% (vs. 18% in 2010). Baxter’s Global Quality department took action in 2010 to improve the gender balance at executive levels by raising awareness of the organization’s gender disparity and instituting a Global Quality executive level slating process establishing a target in which half of the candidates on the slate are women. As a result, at the beginning of 2011, 45% of Global Quality vice presidents are women, up from 36% at the beginning of 2010.

In 2010, the Global Inclusion Council also spearheaded the development and roll-out of a mandatory inclusion awareness course for all employees, to explain why inclusion and diversity are critical to Baxter’s success, and explain how employees can contribute to an inclusive culture. The course was launched in October, and 76% of employees completed it by the end of the year, 11% more than Baxter’s end-of-year goal. The company expects all employees to complete the training by the end of the second quarter in 2011.

For more information about Baxter's global inclusion and diversity initiatives, see Priority Update: Baxter will Promote an Inclusive and Diverse Workplace.

Several leading organizations have recognized Baxter for its inclusion and diversity efforts in 2010:

• Great Place to Work in Denmark - Great Places to Work Institute - Denmark
• One of the Top 50 Companies to Work For by CAREERS & the disABLED Magazine
• One of the Best Companies to Work For in Spain by Actualidad Económica

Click here for a comprehensive list.

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Fair and Equal Opportunity for All Employees

Baxter is committed to fair and equal opportunity for all employees, and recognizes that every individual's unique background and experiences contribute to a successful organization.

Discrimination in hiring, promotion and all other employment decisions on the basis of race, color, religion, gender, national origin, age, disability, sexual orientation, veteran status or any other basis protected by federal, state or local laws is prohibited. Baxter's global operations comply with applicable laws and company business standards around the world. Employees are encouraged to raise any issues or concerns they might have through one of the channels outlined in the company's "Prohibition of Workplace Harassment" policy.

The tables below illustrate Baxter's ethnic and gender diversity at various levels in the company.

Board and Executive Leadership Diversity
	2006	2007	2008	2009	2010
Ethnic (% non-white of total)
Board of Directors	8.3%	7.7%	7.7%	7.7%	7.7%
Executive Leadership*	13.3%	13.3%	13.3%	14.3%	14.3%
Gender (% female of total)
Board of Directors	16.7%	15.4%	15.4%	15.4%	15.4%
Executive Leadership*	33.3%	33.3%	33.3%	28.6%	28.6%

*	Executive Leadership figures include Operations Committee members and regional presidents.

Gender Diversity at Baxter (% Female Globally)
	2006	2007	2008	2009*	2010*
Vice President and Above	19.0%	17.7%	18.5%	19.2%	19.8%
Supervisor/Director	39.1%	47.7%	48.1%	48.5%	47.8%
Non-Manager	56.5%	56.4%	56.3%	55.8%	55.4%
Overall	53.7%	52.7%	52.8%	52.5%	51.9%

*	2009 and 2010 figures do not include Baxter Credit Union employees, which were approximately 0.1% of the total population.

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Supplier Diversity

Baxter works to develop mutually beneficial relationships with small and diverse suppliers. The company plans to continue expanding the diversity of its supplier base to reflect the demographics of Baxter's customers. See Supplier Diversity for more information.

For more information about Baxter's global inclusion and diversity initiatives, see Priority Update: Baxter Will Promote an Inclusive and Diverse Workplace.

Employee Perspective