Global Inclusion

An inclusive organization ensures that company policies, programs, processes and systems support a culture of respect and enable all employees to work together effectively. An organization can have a diverse employee population (for example, in terms of age, gender, sexual orientation, race, ethnicity or religion) and yet not have an inclusive culture.

Baxter believes that an inclusive culture coupled with a diverse workforce can drive innovation; create trusted partnerships with customers, suppliers and community partners; and ultimately, contribute to the success and sustainability of the business.

This belief forms the foundation of Baxter’s global inclusion strategy, which is directly linked to one of the company’s Shared Values articulated in the Baxter Leadership Expectations—respect for individuals and the diverse contributions of all.

Baxter’s global inclusion 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

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

Promote and advocate Baxter’s inclusion philosophy and initiatives;
Identify 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, Quality. The Council is led by Baxter’s VP, Global Inclusion, who 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.

In 2008, the Council created internal awareness of the inclusion strategy, enhanced cross-cultural awareness of Council leaders, and assessed best practices. The Council also identified new opportunities to further the strategy in 2009 and beyond.

Fair Opportunity for All Employees

Baxter is committed to fair 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. If an employee has an issue, he or she is encouraged to raise it through one of the channels fully 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
	2004	2005	2006	2007	2008
Ethnic (% non-white of total)
Board of Directors	9.1%	8.3%	8.3%	7.7%	7.7%
Executive Leadership ¹	7.7%	16.7%	13.3%	13.3%	13.3%
Gender (% female of total)
Board of Directors	18.2%	16.7%	16.7%	15.4%	15.4%
Executive Leadership¹	15.4%	25.0%	33.3%	33.3%	33.3%

¹Executive Leadership figures include Operations Committee members and regional presidents.

GENDER DIVERSITY AT BAXTER (% FEMALE GLOBALLY)
	2004	2005	2006	2007	2008
Vice President and Above	20.1%	19.6%	19.0%	17.7%	18.5%
Supervisor/Director	38.4%	38.2%	39.1%	47.7%	48.1%
Non-Manager	57.3%	57.0%	56.5%	56.4%	56.3%
Overall	54.6%	54.1%	53.7%	52.7%	52.8%

Supplier Diversity

Baxter works to develop mutually beneficial relationships with small and diverse suppliers, embracing their importance in many communities. The company plans to continue expanding the diversity of its supplier base to reflect the demographics of Baxter’s customers globally. See Supplier Diversity for more information.

For more information about Baxter’s global inclusion initiatives, see Priority Update: Baxter will promote an inclusive and diverse workplace.