Baxter 2021 Corporate Responsibility Report 49 Cross-Cutting Commitments Corporate Responsibility Commitment Introduction 2030 Corporate Responsibility Goals Empower Our Patients Protect Our Planet Champion Our People and Communities Appendix Building Cultural Competence to Advance Workplace Inclusion Baxter provides employees with training, tools and resources to build cultural awareness and compe - tence to engage more authentically with each other. Resources include leadership toolkits for managing global, diverse teams; holding inclusive meetings; personalized cultural assessments; exploring dimensions of diversity as a team; and mitigating day-to-day biases across many of our human resources processes. Many employees also work on global teams, enabling them to build cultural competence through daily interactions, and we encourage employees to practice simple acts of inclusion in their day-to-day routines. We work to embed awareness of unconscious bias throughout our company and require all employees to take a self-guided e-learning module about uncon - scious bias. In addition, we have integrated prompts in key human resources processes, such as hiring activities, talent assessment, succession planning and feedback, to help employees think about their biases as they undertake these activities. Inclusive Pay and Benefits One of the ways we work to achieve equity at Baxter is by implementing a total compensation philosophy that provides market-competitive pay and benefits globally while rewarding employees for strong individual and business performance. Baxter is also committed to periodically assessing our efforts through robust pay audits and reviews. A fter controlling for legitimate factors such as type of role, prior work experience, tenure in the organization, tenure in role and geographic location, a review of our 2021 pay equity study of U.S. salaried workforce revealed no significant pay differences among men, women and ethnic minorities. In addition, approximately 35% of our employees work in positions (largely in our plant locations) where salary levels are based solely on the job or the job and tenure, eliminating the possibility of pay equity discrepancies. Baxter provides competitive and inclusive employee programs and benefits that support career advancement, workplace f lexibility and employee wellness. To support working parents and caregivers, we also offer parental leave, adoption and fertility benefits, mento- ring for new parents, lactation services and benefits, backup childcare and subsidized care, educational support for working parents, caregiver services and an employee assistance program. Throughout the global pandemic, we have worked to help employees cope with the impacts of COVID-19. For example, Baxter provides resources to help employees prioritize wellness and work-life balance as well as tips for using Baxter’s technology to stay connected and productive. Our WorkSmart Virtually resources help employees cultivate habits to work remotely with ease, connect with co-workers, build team effectiveness and lead through crisis with empathy and emotional intelligence. We also rolled out a meditation app globally to help our employees prioritize mental health and well-being during this stressful time and introduced monthly wellness days and nutritional coaching for U.S.-based employees. For many years, Baxter has recognized the increasing demands on employees to manage their personal and work lives, and we respect the need for different approaches to where, how and when work gets done. We provide employees and managers with tools and resources to navigate ad hoc or ongoing flexible arrangements and encourage employees to speak with managers about what options might be right for them and their jobs. Learn more about workplace flexibility at Baxter. Learn more about employee compensation and benefits and executive compensation. Diverse perspectives are valued at Baxter 60% 63% 75% 72% My direct manager does a good job of managing people from diverse backgrounds 70% 72% 80% 78% I am comfortable voicing my ideas and opinions, even if they are different from others 64% 68% 76% 75% My direct manager cares about me as a person 71% 74% 78% 78% Overall Inclusion Score 66% 69% 77% 75% BAXTER ** GLOBAL 2018 2019 2021 2021 average *** Baxter conducts Best Place to Work surveys, through which our employees rate Baxter’s workplace across various categories, including for factors related to inclusion. Our overall inclusion score for 2021 increased 8 percentage points compared with the last time we conducted the survey, in 2019, and 11 percentage points compared with 2018. Individual metrics within the inclusion category also showed improvement. (See Baxter Data Summary for Best Place to Work survey results in additional categories.) MEASURING WORKPLACE INCLUSION * * Scores indicate the percentage of survey participants who responded favorably to statements related to each of the categories listed. ** Baxter did not administer a Best Place to Work survey in 2020 due to impacts related to the COVID-19 pandemic. *** Data are from Qualtrics Benchmark Database and represent more than 750 companies (including Baxter) and more than 20 million responses.