Stakeholder Engagement

Stakeholders play an important role in Baxter's continued success, and the company takes their varied perspectives into account.

Baxter engages with stakeholders worldwide to share information, discuss their views on the company’s priorities, programs and performance, and determine opportunities to collaborate and to pursue common goals with respect to five primary groups: patients and healthcare professionals, who rely on today’s products and tomorrow’s innovations; Baxter employees, who seek a safe, inclusive workplace and professional growth opportunities; communities worldwide, where Baxter contributes to economic growth and addresses key public health needs; governments, insurers and other institutions and business partners that count on ongoing collaboration with the company; and shareholders, who expect and deserve a steady return on their investment. Baxter believes by operating responsibly and staying attentive to the needs of these distinct yet interconnected groups, it can maintain the commercial success that will allow the company to deliver on its sustainability priorities.

Stakeholders

Baxter engages with stakeholders on key aspects of its business and products. For example, the company:

Assembles advisory boards of patients, clinicians, health practitioners and researchers to gather feedback on the company's operations and products;
Operates patient advisory councils, such as home dialysis patients who provide input aimed at helping Baxter improve products and services for people with end-stage renal disease;
Works with a pharmacy customer advisory board in the United States to identify market trends and their implications for Baxter and its customers;
Assembles clinical advisory boards of preeminent physicians from around the world to guide the company's clinical product development programs; and
Convenes academic leaders and researchers to serve as advisors or consultants on specific sustainability and scientific issues, such as public policy and animal welfare.

Baxter also has relationships with numerous organizations that focus on various aspects of sustainability. See Affiliations and Memberships and Environment, Health and Safety for further details.

For example, Baxter is a member of Ceres, an organization that advocates for sustainability leadership, bringing together a network of companies, investors, and public advocacy groups to expand the adoption of sustainable business practices and solutions to build a healthy economy. Baxter has been a member of the Ceres network of companies since 1997, and has committed to work with Ceres on its sustainability performance and disclosure. The Ceres stakeholder team designated to work with Baxter is an independent group of individuals drawn primarily from the Ceres coalition and represents a range of constituencies that have expertise in environmental, social and governance issues. See Feedback on 2010 Report for detail.

Feedback on Sustainability Report

Baxter views its sustainability report as a means to engage with stakeholders and seek feedback on the company’s sustainability initiatives. During the content development process, Ceres and its coalition members provided Baxter input on a detailed outline of its 2011 progress updates for each of the company’s nine sustainability priorities. Baxter invited and welcomed the opportunity to hear and consider input on report content at a point in the process where the company could implement it. In addition, Baxter engaged several outside experts to provide input on the company’s 2010 Sustainability Report. See examples of feedback provided, and how Baxter implemented this in the 2011 report.

Baxter Sustainability Report Survey

Baxter welcomes feedback on its sustainability report from all stakeholders. Readers can provide their input through the company’s sustainability report survey. In 2011, Baxter considered input from about 50 survey respondents in creating this report.

Baxter Stakeholder Groups

This table outlines Baxter’s main stakeholder groups and describes how the company engages with each. Examples are referenced in the table and throughout this report.

Baxter Stakeholder Groups
Group: Patients
Description	Channels of Engagement	Example
Patients worldwide with cancer, hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other conditions, as well as patient-advocacy groups.	Product donations and grants Strategic philanthropic giving Fundraising to donate to organizations and causes worldwide Patient websites (i.e., There For You) Raising awareness about patient choice and access to therapy through patient surveys and studies Promoting greater understanding of the diseases that Baxter’s products treat through educational initiatives	Baxter supports certain programs through patient-advocacy groups, such as CEAPIR (European Kidney Patients’ Federation), the European Hemophilia Consortium (EHC) and the World Federation of Hemophilia (WFH) Global Alliance for Progress (GAP) program, which works to improve the diagnosis and treatment of hemophilia in developing countries. Baxter awards the Foster McGaw Prize each year to a U.S. hospital that demonstrates commitment to innovative programs that significantly improve the health and wellbeing of patients in its community. In November 2011, Baxter hosted the first ever European Jeffrey Modell Centre Network Meeting, a forum for exchange and sharing of best practices about PID and newborn screening (NBS).
Group: Customers
Description	Channels of Engagement	Examples
Includes healthcare professionals, hospitals/clinics, kidney dialysis centers, medical research centers, nursing homes and rehabilitation centers.	Ongoing customer product training and continuing education programs Participation in professional organizations Customer service and clinical helplines Customer publications and presentations Customer satisfaction surveys Baxter attendance at conferences UK Green Nephrology Group Healthcare Plastics Recycling Council	Includes healthcare professionals, hospitals/clinics, kidney dialysis centers, medical research centers, nursing homes and rehabilitation centers.
Group: Employees
Description	Channels of Engagement	Examples
Baxter’s approximately 48,500 employees worldwide	Town hall meetings, webcasts, and “Lunch and Learn” events on topics including health/well-being, public policy and others Employee surveys Focus groups (Women Leaders@Baxter, Latinos@ Baxter) Baxter Intranet, employee newsletter and other communications Works councils, facility health and safety committees, and employee groups that implement community outreach activities at Baxter Code of Conduct Ethics and Compliance Helpline Regional Ethics and Compliance Committees Certificate of Integrity and Compliance Baxter Political Action Committee	Baxter’s annual World Environment Week engages and educates employees worldwide on Baxter’s environmental stewardship. Baxter’s Exercise Challenge Month held each May encourages employees to live healthier lifestyles and to sustain that activity throughout the year. Baxter encourages employees to participate in a greener commute and offers partial reimbursement for public transportation and van sharing costs. Baxter employees submit stories of successful volunteer and community outreach efforts for posting on the company’s intranet. Global Inclusion initiative helps Baxter attract, engage and retain employees of diverse backgrounds. Baxter encourages employee growth through its performance management process.
Group: Communities
Description	Channels of Engagement	Examples
Baxter conducts business in more than 100 countries and operates manufacturing facilities in 27.	Involvement in community organizations and schools Employee volunteer efforts Collaboration with international health and aid organizations Employee participation on boards and leadership in local and national organizations	Baxter responded swiftly to floods in Thailand that affected employees and patients, ensuring delivery of peritoneal dialysis therapy and coordinating an emergency shipment of intravenous solutions. Baxter employees volunteer as part of Baxter’s Science@Work program, delivering professional development to Chicago Public Schools teachers and biotechnology education to students. The Baxter International Foundation has helped fund a two-year project with AmeriCares India to provide critical on-site medical services and free medicine in Mumbai’s Andheri slums. Baxter’s facilities in Asia Pacific organize activities each year for Make a Meaningful Difference Month to encourage employee volunteerism in local communities.
Group: Industry Organizations
Description	Channels of Engagement	Examples
Includes AdvaMed, BIOTECanada, Biotechnology Industry Organization (BIO), Eucomed, EuropaBio, European Federation of Pharmaceutical Industries and Associations (EFPIA), European Organization for Packaging and the Environment (EUROPEN), European Vaccines Manufacturers, European Hemophilia Therapy Standardization Board (EHTSB), Institute for Supply Management, MEDEC, Plasma Protein Therapeutics Association and numerous physician organizations.	Board and committee meetings Educational campaigns Industry events Collaborative lobbying on issues of mutual concern	Baxter sponsored the first-ever PN Safety Summit in September 2011, which addressed safety concerns and issues with nutrition product shortages. Baxter is on the Corporate Council of the Center for Health and the Global Environment. The center's Biodiversity and Human Health Program informs policymakers and educates the public about the importance of preserving biodiversity through the lens of human health.
Group: Non-Governmental and Other Organizations
Description	Channels of Engagement	Example
Examples include AmeriCares, Boston College Center for Corporate Citizenship, Campaign for Greener Healthcare UK, Center for Health and the Global Environment, Ceres, Compliance and Ethical Leadership Council, The Conference Board, Corporate Executive Board, Corporate Voices for Working Families, Council on Foundations, Direct Relief International, Ethics & Compliance Officer Association, Global Reporting Initiative, Grantmakers in Health, Partnership for Quality Medical Donations, Center for Climate and Energy Solutions, Society of Corporate Compliance and Ethics, and World Health Organization.	Feedback on Baxter’s 2010 Sustainability Report, and pre-publication review of sections of Baxter’s 2011 Sustainability Report Participation on various committees Attendance and presentations at sustainability-related conferences and events	Baxter facilitates an annual call with Ceres stakeholders to review sustainability report content. Baxter contributes to various white papers and reports issued by non-governmental organizations. Baxter participates in educational and networking NGO webinars to share best practices and expertise.
Group: Suppliers
Description	Channels of Engagement	Example
Baxter works with a broad network of suppliers who provide product inputs as well as goods and services not used in products.	Supplier Quality Standard and Ethics and Compliance Standards for Baxter Suppliers Sustainability language included in Baxter requests for proposal (RFP) and standard supplier agreement Supplier audits and site visits Ethics and Compliance Helpline for employees and their families, suppliers, customers, and other stakeholders Global Supplier Sustainability Program Supplier diversity program Benchmarking sustainability programs with top suppliers Chicago United National Minority Supplier Development Council (NMSDC)	Baxter collaborates with its suppliers to identify opportunities to improve both Baxter’s and suppliers’ environmental performance and minimize transportation-related emissions through its e-Impact program.
Group: Universities/Academia
Description	Channels of Engagement	Examples
The Center for Corporate Citizenship at Boston College, Cornell University Johnson School of Management, Cranfield University (UK), Illinois Institute of Technology, Northwestern University, and University of Wisconsin.	Forums on sustainability and climate change Information sharing about sustainability with administration, faculty and students Select projects and student research R&D collaboration with universities Foster early stage projects	Baxter is partnering with Chicago City Colleges to support their College to Careers program with real-world experiences with Baxter experts. Baxter supports the Illinois Institute of Technology Math and Science Education Department with biotechnology teacher training and materials. Baxter partners with Northwestern University’s Office of STEM Education and Programming to host symposia on biotechnology for Chicago Public Schools teachers district-wide. Baxter contributes financially to the Chicago Botanic Garden Plant Science Center, which provides laboratories and teaching facilities for more than 200 Ph.D. scientists, land managers, students and interns, and is home to a unique doctoral program in plant biology and conservation in conjunction with Northwestern University. Provides grants to fund early stage technology.
Group: Government, Regulatory, Health Authorities
Description	Channels of Engagement	Examples
Examples include City of Chicago, Committee for Medical Products for Human Use (CHMP; Europe), European Medicines Valuation Agency, European Commission, European Parliament, State of Illinois, U.S. Center for Medicare/Medicaid, U.S. Department of Agriculture, U.S. Department of Defense, U.S. Department of Health and Human Services, U.S. Department of Labor, U.S. Drug Enforcement Agency, U.S. Environmental Protection Agency and U.S. Food and Drug Administration, ministries of health, and environment, health and safety agencies worldwide.	Representation on advisory committees Meetings, conferences, partnerships and collaborations Communication of studies that demonstrate health and economic benefits of Baxter’s products Communication of sustainability programs and initiatives Lobbying activities Visits to Baxter facilities by EU and government officials	Baxter supports legislation/regulation that aligns with the company’s business and sustainability objectives. Baxter held to educate health policy makers about the benefits of improving access to dialysis care. Baxter UK’s Evolving Health program works in partnership with the NHS (National Health Service) to bring quality care and efficiency to patients.
Group: Investors
Description	Channels of Engagement	Example
Nearly 88% of Baxter’s shares are held by institutional investors.	Analyst/investor presentations and meetings Socially responsible investment surveys Quarterly earnings announcements and news releases Webcasts/conference calls Annual Meeting of Shareholders Road shows, one-on-one meetings and investor visits to headquarters	Through this report, Baxter demonstrates the business value of sustainability-related initiatives.