Baxter’s global supply chain extends from the producers of raw materials it utilizes in manufacturing to the end users of its products. The company is committed to building and driving a responsible supply chain. Collaboration is central to its approach, and Baxter engages its suppliers on key corporate responsibility issues including human rights, business ethics, labor practices, health and safety, and environmental performance. Baxter strives to maintain a diverse supplier base that reflects the markets and communities in which the company operates, and innovates to decrease environmental impacts from product transport.
Supplier Standards and Policies
Baxter is integrating corporate responsibility into its procurement practices to drive improved performance across its supplier base. The company’s Supplier Quality Standards and Ethics and Compliance Standards for Suppliers outline Baxter’s expectations and requirements for all of its suppliers in this area.
As outlined in Baxter’s Global Human Rights Policy, the company respects human rights, dignity and the diverse contributions of all individuals. We work to ensure that Baxter suppliers share the company’s high standards.
Baxter’s Modern Slavery Statement declares the company’s commitments and approach to ensuring its UK operations and supply chain are free from modern slavery such as child labor, forced and bonded labor and human trafficking. The company also has a position statement related to the California Transparency in Supply Chains Act of 2010 . For more information, see the 2016 Corporate Responsibility Report.
Managing Procurement Risks
Baxter’s approach to managing supply chain corporate responsibility follows these steps:
Supplier Corporate Responsibility Survey
Annually, Baxter invites global and regional top direct and indirect suppliers to participate in its Supplier Corporate Responsibility and Sustainability Survey, a key part of the company’s due diligence. The survey covers program governance as well as environmental, social, and health and safety aspects. For more information, see the 2016 Corporate Responsibility Report.
Baxter continues to support diverse business organizations through targeted match-maker conferences and networking events. In March 2016, the company held its first Supplier Diversity Fair at its corporate headquarters. The half-day networking event educated small, minority-owned, women-owned and other diverse business enterprises on how best to do business with Baxter.
Baxter’s Global Purchasing and Supplier Management team engages with the company’s Supplier Diversity team to identify and select qualified diverse suppliers according to bidding requirements. Based on supplier capabilities, Baxter invited qualified diverse suppliers to participate on several global projects related to conventions/exhibits, corrugated packaging and air freight.
The company continues to support diverse supplier development through the executive management program at Northwestern University. Since 2014, Baxter has sponsored rising minority business enterprises at the Kellogg School of Management’s Advanced Management Education Program.
Baxter maintains corporate membership in National Minority Supplier Development Council, National Gay & Lesbian Chamber of Commerce and US Business Leadership Network. The company also supports diversity through local business partners including Chicago Minority Supplier Development Council, Women’s Business Development Center, Chicago United and Chicago Area Gay & Lesbian Chamber of Commerce.
U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) Program
As a manufacturer, Baxter is also a supplier to other companies, and works to ensure it meets the highest standards of ethics and business conduct. Baxter’s efforts to establish a secure supply chain include utilizing programs such as the Customs-Trade Partnership Against Terrorism Program (C-TPAT) which supports a secure and reliable supply of life-saving medical products. This includes shipments of raw materials and finished products both to and from various Baxter locations, foreign suppliers, distributors and customers.
As an importer and exporter, Baxter has been recognized as a Tier III Partner (the highest level possible) in the program since 2011. As an importer, Baxter has been recognized as a Tier III Partner (the highest level possible) in the program since 2011. As of February, 2017, only 8% of the 4,203 importers had achieved this status.
Read about Baxter’s recent efforts in the 2016 Baxter Corporate Responsibility Report.