2007 Sustainability Report - Baxter Sustainability Report

From the Chairmanand CEOPart of being a great company is being a responsible corporatecitizen. At Baxter, we use the term “sustainability” to describe ourlong-term approach to balancing our business priorities withour social, economic and environmental responsibilities. Theseefforts align with and support the company’s higher purpose ofsaving and sustaining lives.As a recognized innovator and leader in healthcare, Baxter is responsible for many medicalbreakthroughs that society takes for granted today. The company has played a leading rolein the development of modern intravenous (IV) therapy, hemophilia treatment, kidney dialysisand other life-saving therapies.Robert L. Parkinson, Jr.Chairman and Chief Executive OfficerBaxter’s unique combination of expertise in medical devices, pharmaceuticals andbiotechnology sets us apart from others in the healthcare industry. I believe the critical natureof our work extends naturally to sustainability, where the goal is sustaining all life on the planet.A Critical ChallengeWe are privileged to work in an industry where the work we do benefits so many. Of course,what makes our business so rewarding also presents our greatest challenge: ensuring thesafety and efficacy of our products, which are used millions of times a day by patients worldwide,each time to treat a critical, life-threatening condition.When you’re in a business like ours, the stakes are high. Product quality is paramount. Weare committed to the highest quality standards attainable to protect the health and safetyof patients wherever we do business. It’s a challenge and responsibility we accept as a globalleader in healthcare.In the Product Responsibility section of this report, you will read about a situation thatunfolded during the first half of 2008 regarding heparin, a commonly used generic bloodthinner that Baxter manufactures. The challenge for us is, how can we learn from this toprevent similar occurrences in the future? How can we provide better oversight of vendors,and of vendors to vendors, in a complex global supply chain? It is an opportunity for usto improve our practices based on our learnings and to share those learnings with industry.Sustainability Highlights› In 2007, we established nine sustainability priorities to focus our efforts in areas whereBaxter can have the greatest impact. To provide strategic direction and help us makeprogress in these areas, in 2008 we added long-term, measurable goals for eachsustainability priority. We present these goals in this report and will continue to updateyou on our performance in the future.2 BAXTER 2007 sustainability report | chairman and ceo letter