Baxter International Inc. is a recognized multinational company which develops, manufactures, and markets products and technologies related to healthcare. The company was founded in 1931 in Morton Grove, Illinois as the first manufacturer of commercially prepared intravenous (IV) solutions (Baxter, “History”, n. d.). Baxter is holding a leading position in the industry by providing unique solutions to treatment of complex medical conditions from its headquarters in Deerfield, Illinois and more than 100 facilities throughout the world.
The company pursues global initiatives through global sourcing, export, acquisitions, subsidiaries, and other direct investment strategies. Thus, in 2012 Baxter acquired four healthcare and pharmaceutical companies, and entered into collaboration with Momenta Pharmaceuticals Inc. (Baxter, 2012a).
Baxter is a publicly traded company which has been trading shares on the New York Stock Exchange since 1961 (Baxter, “History”, n. d.). While the company’s shares are owned by many investors, it has to report its major stockholders each year. Progress Reports identifying all its shareholders and all company officials who own shares are announced annually so as to inform about the company’s performance.
The major areas of the company’s expertise include medical devices, pharmaceuticals and biotechnology. Baxter’s products profile includes solutions and products used in the delivery of fluids and drugs to patients; inhalation anesthetics; products to treat chronic and acute medical conditions like hemophilia, immune disorders, infectious diseases, kidney disease, etc. (Baxter, 2012a).
The company’s efforts are aimed at making a positive and lasting impact on healthcare and the health of communities around the world while sustaining profitable growth. Baxter is committed to be a globally recognized and trusted healthcare company. The company’s vision is to exercise leadership in terms of partnership, innovation in science and technology, market presence, and employee satisfaction (Baxter, “Compensation and benefits”, n. d.). Moreover, Baxter strives to be a rewarding workplace and a socially responsible community member.
Baxter has a functional organization structure with clearly defined roles and responsibilities. The top management of the company has most of the decision making power. It is represented by board of directors with Parkinson, the Chairman and CEO, at the head. The board of directors has six committees which consist of independent directors who have the bulk of the power and influence in decision making (Baxter, “Company Leadership”, n. d.). These are: Audit, Compensation, Corporate Governance, Finance, Public Policy, Science and Technology committee. The chain of command is further transmitted through departments which are divided according to product line and depending on geographical area to the lowest operation level. Thus, the authority flows from the top management through middle and operating management to employees.
Ethical Standards at Baxter
Baxter tries to be a contributing member of the global community and meet its stakeholders’ expectations in terms of abidance by the existing laws and ethical standards. The company abides by the fundamental ethical standards and principles of the Office of Inspector General Compliance Program Guidance (Baxter, “Procedures and standards”, n. d.). Additionally, it has adopted Global Anticorruption Policy, Employee Code of Conduct, Suppliers Standard of Quality, as well as a number of professional codes of conduct to address ethical issues (Baxter, 2012b)
Baxter’s Code of Conduct covers such areas as employment practices, protection of intellectual and physical property and financial assets, record management, conflicts of interest, employee gifts and entertainment, data privacy (Baxter, “Code of Conduct”, n. d.). The Supplier Quality Standard specifically addresses indentured and child labor, waste and energy reduction, employment standards and ethics (Baxter, 2012b). Ethical standards extend to employees, healthcare professionals, medical institutions, patients organizations and suppliers globally. The company is committed to ensure abidance by the Code of Conduct by providing ongoing training on the company’s ethics and compliance polices, requiring to report promptly on misconduct, and defining sanctions for failure to comply with the Baxter’s polices (Baxter, “Code of Conduct”, n. d.).
Baxter’s corporate culture is shaped by the company’s leadership expectations and vision. These expectations include shared values, competencies, and personal attributes (Baxter, 2012c). Thus, the company has a philosophy of ongoing success and excellence in individual performance. The culture ton is set by the top management and incorporated through control, collaboration, and competition oriented tactics in practice at the lower managerial levels. Baxter’s corporate culture consistent with the sustainability initiatives enabled Baxter to successfully engage employees and produce desired results that benefit the company and community (Abbett, Coldham, & Whisnant, 2010).
Human Resources Management
The company is a rewarding place to work which is valued for its growth opportunities, compensations and benefits, work-life balance and senior management (Career Bliss, n. d.). As a globally recognized sustainable business, Baxter attracts many capable individuals. Baxter use outsourcing and the internet as the main methods of recruitment. Its recruitment polices are based on the leadership expectations that create a common understanding of what is necessary to achieve goals and be successful at Baxter.
The main motivating factors for Baxter’s employees are concern for the environment for society and environment, company reputation and job satisfaction, volunteer programs (National Environmental Education Foundation, 2011). Besides, control and collaboration tactics as well as contest and awards are used by management to motivate employee participation. Thus, managers enhance employee performance through talent development trainings, ongoing coaching and feedback, reports about individual performance, and differentiated rewards for meeting the leadership expectations (Baxter, 2012c). The company’s compensation packages including base salary and incentive pay, such as cash bonuses and stock-based compensation, are secondary motivation tools (Baxter, “Compensation and benefits”, n. d.). As a result, voluntary employee turnover at Baxter in 2011 was 10.3% globally (Baxter, 2012c).
Philanthropic Endeavors and “Green” Initiative
Baxter demonstrates commitment to responsible business practices through a variety of grant, contribution and other programs (Baxter, 2012a). Primarily, the company strives to increase access to healthcare, help nations and countries in crisis, and meet other community needs globally. Thus, in 2011 Baxter responded swiftly to national disaster in Thailand, Japan, And the USA by providing emergency shipment of medical supplies and giving further monetary support through the Baxter International Foundation (Baxter, 2012a). Baxter’s philanthropic arm totaled more than $80 million in 2011 (Baxter, 2012c). With the focus on long term goals, Baxter supports math and science education in local schools to prepare students to scientific careers through Science & Work Program (Baxter, 2012a). Finally, Baxter is recognized for its sustainability priorities. The company was a pioneer in the “green and greedy” movement aimed at reducing environmental impact of the manufacturing process while saving the money (Adelson, Engell, Ranalli, & Van Anglen, 2008, 254-255). Baxter’s major environmental incentives include reduction of greenhouse gas emissions, water conservation, saving energy. In particular, 2008 annual sustainability report revealed Baxter’s commitment to reach a 45 percent reduction of greenhouse gas emissions by 2015 (Environmental Leader, 2009).
Company’s Vision of Its Future
Baxter is confident and committed to a strong future. The company anticipates sustained financial performance. Thus, Baxter expects to increase sales approximately 5 %, grow earnings per share in the 7 to 9 percent range annually, and generate cash flow from operations of approximately $4.5 billion by the year 2017 (Baxter, 2012d). Baxter also strives to expand its market presence by acquisitions, partnerships, focus on innovation, new products pipeline, and increasing demand for its core products (Baxter, 2012a).
Considering Baxter’s strong leadership position, sustainable and profitable global market performance, it can be expected that the company will continue its story of progress and success in the future. Constant increase of investment on research and development will allow the company to pursue its growth and success path. This, in turn, will enhance and complement existing businesses, strengthen Baxter’s market leadership position, and allow the company to perform its mission of saving and sustaining lives.