《史赛克Stryker Corporation(SYK)2021年综合年度报告「NYSE」(英文版)(79页).pdf》由会员分享,可在线阅读,更多相关《史赛克Stryker Corporation(SYK)2021年综合年度报告「NYSE」(英文版)(79页).pdf(79页珍藏版)》请在三个皮匠报告上搜索。
1、Table of contents2021 in reviewGame-changing innovations.2Our company.5A message from Stryker Chair and CEO.6Innovating for growth.10Financial highlights.12Our corporate responsibility journey.14Stronger peopleHealthcare providers and patients.17Employees.24Communities.38Good businessGovernance.42In
2、formation security and privacy.47Business ethics and ethical marketing.49Product quality and safety.53Supply chain management.56Healthier planetOperational impact.61Product design and lifecycle management.69Data summaryReferences.72About this report.75Legal disclaimers.76Non-GAAP reconciliation.771S
3、tryker2021 Comprehensive Report2021 in reviewPatient impactGame-changinginnovations With the help of Blueprint technology,a surgeon restores the shoulderand the hopeof a former Major League Baseball(MLB)pitcher.One moment,Jeff Brantley was reaching into the refrigerator for a carton of milk.The next
4、,a jolt of pain overtook his extended right arm.The carton came crashing to the floor as his son looked on in surprise.That same arm used to throw strike after strike during Jeffs 14 seasons as a relief pitcher.Now a broadcaster for the Cincinnati Reds,the baseball great led the National League in s
5、aves in 1996,played in the MLB All-Star Game in 1990 and was inducted into the Mississippi Sports Hall of Fame in 2010.As his baseball career progressed,though,Jeffs shoulder slowly deteriorated.“The problem that you have being a pitcher is the repetitive motion on one side of your body,over and ove
6、r and over.Especially with your shoulder and elbow,”Jeff says.By his fifties,despite having undergone multiple surgeries,he was plagued by weakness and pain.“I was really concerned because Im right-handed,”Jeff says.“I cant even get a carton of milk out of the refrigerator?Im a pro athlete.I should
7、be able to do that in my sleep.”The problem that you have being a pitcher is the repetitive motion on one side of your body,over and over and over.Especially with your shoulder and elbow.”Jeff BrantleyPatient2Stryker2021 Comprehensive Report2021 in reviewDesperate to alleviate the pain and to finall
8、y play catch with his son,Jeff consulted longtime Cincinnati Reds medical director Dr.Tim Kremchek,who referred him to Dr.Andrew Razzano.Dr.Razzanoa knee,shoulder and elbow specialistproposed a solution:shoulder arthroplasty,commonly known as total shoulder replacement.Jeff was hesitant,but Dr.Razza
9、no gave him confidence by using Strykers Blueprint 3D Planning software to walk him through the procedure from every angle.Beyond aiding in patient communication,Dr.Razzano and many other orthopaedic surgeons use Blueprint to prepare for operations by visualizing each procedure in advance.This allow
10、s for precise and reproducible 3D measurements and leads to improved decision-making,Dr.Razzano says.1,2,3“If,in the O.R.,something happens and you have to change your plan,youve already done it in a virtual model.You dont have to think as much on the fly.”Thousands of miles away,Dr.Ruth Delaney rec
11、ently became the first surgeon in Ireland to use Blueprints new Mixed Reality software.Originally unveiled by Wright Medicalwhich Stryker acquired in November 2020the latest generation of Blueprint allows doctors to interact with their 3D pre-operative plan as they perform surgery (see sidebar below
12、).Introducing Blueprint Mixed Reality Developed by pioneering orthopaedic surgeons from around the globe,the latest generation of Strykers Blueprint technology is transforming the way shoulder surgeries are performed.Using a mixed reality headset,the software allows surgeons to view 3D versions of t
13、heir patients pre-operative plans and anatomy while in the operating room.“When we first started on the journey to create this software,we likened it to the difference between a smartphone and a flip phone,”says Dr.Jon J.P.Warner,co-chief of shoulder services at Boston Shoulder Institute.After decad
14、es of relying on 2D CT scans,Blueprint Mixed Reality puts critical patient information at surgeons fingertips.3Stryker2021 Comprehensive Report2021 in review“With Mixed Reality,we can see our plans in real time in front of our faces when we operate.It is dynamic,so you can see a patients anatomy in
15、a lot of detail,”says Dr.Delaney.“What was interesting the first day that I used it was that it didnt interfere with my surgery or distract me.”Dr.Razzano agrees.“What Mixed Reality means to me is that youre using it intraoperatively in real time.Its not diverting your focus to go look at the comput
16、er again,”he says.After his operation with Dr.Razzano,Jeff began to feel improvement in about two weeks.A few months into the rehabilitation process,he noticed a dramatic difference and was able to move his shoulder up and down and back and forth.“Now it slides smooth as silk,”Jeff says.While Jeff c
17、ontinues to use his shoulder thoughtfully,today he is relieved to perform simple tasks like lifting a suitcase and tossing a ball to his son without debilitating pain.“Im not trying to throw the ball 90 miles an hour anymore,but if we want to go out and play catch,I know I can do it,”he says.“The fi
18、rst time being able to go out and throw with my son was great for me.But it was even greater for him.”What mixed reality means to me is that youre using it intraoperatively in real time.Its not diverting your focus to go look at the computer again.”Dr.Andrew RazzanoKnee,shoulder and elbow specialist
19、All surgery carries risk.The only way to determine whether surgery is appropriate for a patient is after consultation with an orthopaedic surgeon regarding risks and benefits of surgery.Not all patients have the same operative recovery and activity level.Individual results vary.4Stryker2021 Comprehe
20、nsive Report2021 in reviewOur company Stryker is one of the worlds leading medical technology companies and,together with our customers,we are driven to make healthcare better.We offer innovative products and services in Medical and Surgical,Neurotechnology,Orthopaedics and Spine that help improve p
21、atient and hospital outcomes.Our specialties-Biologics -Craniomaxillofacial -Digital,Robotics and Enabling Technologies-Ear,Nose and Throat-Emergency and Acute Care-Foot and Ankle -Hips -Infrastructure and Integration-Interventional Spine-Knees -Minimally Invasive and Open Surgical Visualization Sol
22、utions-Neurosurgical-Neurovascular-Power Tools-Robotic-Arm Assisted Technology-Spinal Implants-Sports Medicine-Surgical Equipment-Sustainability Solutions-Trauma-Upper ExtremitiesSYKsymbol for our common stock publicly traded on the New York Stock Exchange$17.1Bglobal sales in 2021$1.2Bspent on R&D
23、in 2021Kalamazoo,MI,U.S.global headquarters75+countries including operations in the following geographic areas:the U.S.(including Puerto Rico);Europe,Middle East,Africa;Asia Pacific;Canada and countries in the Latin America region46,000employees worldwide in 2021 4,458United States patents and 7,199
24、 patents in other countriesGlobal recognition-Worlds Best Workplaces,Great Place to Work and Fortune-Change the World List,Fortune-Companies that Care,Great Place to Work and People-100 Best Companies to Work for,Great Place to Work and Fortune-Worlds Most Admired,Fortune-Fortune 500-Best Places to
25、Work,Glassdoor5Stryker2021 Comprehensive Report2021 in reviewA messagefrom Stryker Chair and CEO,Kevin A.LoboDear stakeholders,In 2021,Stryker returned to growth and delivered strong results despite the ongoing challenges of the pandemic.I want to thank our customers,whose dedication to patient care
26、 in the face of another demanding year continues to inspire our work and whose collaboration keeps us innovating to make healthcare better.Id also like to thank our employees,whose drive and resilience allowed us to adapt quickly to the changing environment.In particular,our commercial and manufactu
27、ring teams have worked tirelessly to support our customers in hospitals,care settings and at our facilities across the world.Culture and leadership2021 also marked 80 years since Dr.Homer Stryker,an orthopaedic surgeon,founded the company.Our people and culture continue to distinguish us,and they ar
28、e the reason we are able to mark this anniversary with so many highlights.Im encouraged that our employees remain highly engaged and that we are making progress with our corporate responsibility initiatives,including diversity,equity and inclusion(see page 24).For a fifth consecutive year,Fortune na
29、med us one of the 25 best workplaces in the world,and many of our global teams were recognized for creating great places to work.Our culture has always been about making a difference,and our employees continue to be the driving force behind our progress and achievements.6Stryker2021 Comprehensive Re
30、port2021 in reviewWe had a change to our senior leadership team in the fall of 2021.Tim Scannell transitioned from president and chief operating officer,after an outstanding 31-year career at Stryker,into an executive adviser role.With this change,our group presidents have each taken on additional r
31、esponsibilities.In addition to leading Medical and Surgical and Neurotechnology,Andy Pierce is now also responsible for Corporate Strategy and Asia Pacific.Spencer Stiles is now responsible for Corporate Business Development as well as EMEA,Canada and Latin America,in addition to leading Orthopaedic
32、s and Spine.They both now report to me directly.Financial performanceStryker delivered above-market sales growth with strong earnings and cash flow in 2021,which bolstered our commitment to category leadership across our businesses.This is an excellent result considering the current environment and
33、a testament to our ability to keep growing at the high end of MedTech.Our sales grew 19.2 percent from 2020 and 14.9 percent from 2019,including 7.2 percent organically compared to 2019,which provides a more normal baseline for comparison given the variability caused by the COVID-19 pandemic,includi
34、ng 5.2 percent in the United States and 12.9 percent internationally.Our organic growth included 8.7 percent from increased unit volume and a 1.5 percent impact from lower prices.Our reported net earnings increased 24.7 percent,and our adjusted net earnings increased by 22.9 percent from 2020.We del
35、ivered approximately$3.3 billion of cash from operations.This strong performance reflects the results of our net earnings and continued focus on working capital management.Our effective cash management enabled us to increase our dividend rate by 10.3 percent for the January 2022 payment.Together wit
36、h our customers around the world,we impact more than 100 million patients annually*7Stryker2021 Comprehensive Report2021 in reviewThis would not be possible without our people,the 46,000 employees from 75+countries who are passionately driven to deliver remarkable results.We are uniquely positioned
37、to impact these patients across their episode of care journey through our innovative capital,disposable and implant offerings.*This figure is based on capital,implant and disposable products across the patient episode of care.InnovationStrykers innovative spirit is alive and well as we continue to l
38、aunch new products and pursue acquisitions to fuel growth across our 22 business units.We had an excellent integration of Wright Medical,acquired Gauss Surgical,and launched numerous products across specialties.This year brought further focus on safer care and broader societal impact,and our efforts
39、 were recognized in Fortunes Change the World list.We also continued to advance our digital and enabling technologies capabilities as well as our customized approach to supporting the unique needs of ambulatory surgery center customers.In February of 2022,we also acquired Vocera Communications,a lea
40、der in digital care coordination and communication.In support of our customers,we continue to deliver high-quality products and successfully navigate the global supply challenges that have seemingly impacted every industry this year.Corporate responsibilityTogether with our customers around the worl
41、d,we impact more than 100 million patients annually.With reach and success comes responsibility,and we owe it to our stakeholders,our planet and ourselves to make progress responsibly and sustainably.This year we advanced each of the commitments we made in 2020,which align with our pillars of strong
42、er people,healthier planet and good business.We built upon our diversity,equity and inclusion initiatives and employee health,safety and wellbeing programs.We reduced our carbon footprint by investing in energy efficiency and moving towards renewable energy.We formalized oversight of our commitments
43、 through our Board of Directors and global CR steering committee.Additionally,we launched Impact,our global giving and volunteering platform that provides our employees the opportunity to donate to a vast number of charities with the click of a button,which is bolstered by an employer match.We were
44、honored to be recognized by People Magazine on its Companies that Care list for 2021,highlighting companies that have succeeded in business while also demonstrating respect and care for their employees,communities and the environment.As I reflect on our 80th year as a company,it remains clear that D
45、r.Strykers legacy is as strong as ever.Our company strategy will continue to stay focused on customers,innovation,globalization,and supporting responsible,sustainable growth that delivers strong financial performance.We are driven to make a difference in the world and,together with our customers,are
46、 making healthcare better.Kevin A.LoboChair and CEOStrykers innovative spirit is alive and well as we continue to launch new products and pursue acquisitions to fuel growth across our 22 business units.”8Stryker2021 Comprehensive Report2021 in review9Stryker2021 Comprehensive Report2021 in reviewInn
47、ovating for growthAs one of the pillars of our strategy,innovation is a critical way that Stryker strengthens our product and service lines,development capabilities and market reach.We do this through both disciplined R&D investments and acquisitions to support evidence-based care and patient outcom
48、es across the continuum of care.Stryker has strong R&D pipelines across our 22 business verticals,and a clear leadership position in the following four areas:Smarter solutions As we build on our Digital,Robotics and Enabling Technologies(DRE)organization,we continue to be a pioneer and leader in the
49、 robotics market.In Joint Replacement,Stryker was first to market with a truly robotic solution:Mako SmartRobotics,which uses 3D CT-based planning software so your surgeon can know more about your anatomy to create a personalized joint replacement surgical plan.By guiding surgeons during surgery,Mak
50、os AccuStop technology allows surgeons to cut less by cutting precisely whats planned to help protect healthy bone.4,5,6,7,8,9,10,11Advanced imaging expertiseWithin the Endoscopy market,we have a long history of enabling advanced imaging and operating room connectivitydriven by a“see more,do more”me
51、ntality.Our 1688 Advanced Imaging Modalities(AIM)4K Platform supports technology like the SPY Portable Handheld Imager(SPY-PHI),which makes it easier for surgeons to visualize blood flow.SPY-PHI can be used in microsurgical,reconstructive and gastrointestinal 10Stryker2021 Comprehensive Report2021 i
52、n reviewprocedures and was recently approved for use in cervical and uterine lymphatic mapping as well as pediatric surgery.Leadership in stroke careIn our Neurovascular business,we advance the practice of less invasive therapies through innovative stroke products,services and clinical educationallo
53、wing us to address a leading cause of long-term disability.In 2021,we saw continued growth in the adoption of the Surpass Evolve Flow Diverter,which redirects blood flow to promote aneurysm healing.Since its initial launch in Europe,Surpass Evolve has been approved in over 50 countries,and more than
54、 5,000 patients have been treated with this life-saving technology.Safer care and better outcomesA commitment to patient safety spans Strykers businesses,and we offer a broad portfolio of products across the continuum of care to support this objective.An example of a product line that promotes safet
55、y is our SurgiCount+Safety-Sponge System.Despite careful oversight,surgical sponges are too often left in patients bodies after surgery.SurgiCount+allows healthcare providers to find sponges more easily and provide proof of compliance.Using ultra-high frequency radio-frequency identification technol
56、ogy,each sponge and towel is tagged to help ensure 100 percent verification.Mergers and acquisitionsAcquisitions are another critical way that Stryker innovates.Throughout 2021,we focused on integrating Wright Medical,which we acquired in 2020 in the largest acquisition in our history.As a recognize
57、d leader in the upper extremities,lower extremities and biologics market segments among the fastest-growing segments in orthopaedicsWright Medical brought a complementary product portfolio and customer base to our trauma,foot and ankle,and upper extremities businesses.Also in 2021,Stryker acquired G
58、auss Surgical,a medical device company that has developed Triton,an artificial intelligence-enabled platform for real-time monitoring of blood loss in sponges and canisters during surgery,enabling early detection of post-partum hemorrhage.We believe that Triton technology will help improve the indus
59、try standards for quantifying blood loss in the labor and delivery department,furthering Strykers commitment to improve safety and outcomes for our caregivers and their patients.11Stryker2021 Comprehensive Report2021 in reviewFinancialhighlightsFinancial overview($in millions,except per share amount
60、s)20212020%ChangeNet sales$17,108$14,35119.2%Earnings before income taxes2,2811,95416.7%Income taxes287355(19.2%)Net earnings 1,9941,59924.7%Adjusted net earnings*3,4742,82722.9%Net earnings per diluted share of common stock Reported$5.21$4.2024.0%Adjusted*$9.09$7.4322.3%Dividends paid per share of
61、common stock$2.52$2.309.6%Cash,cash equivalents and marketable securities$3,019$3,024(0.2%)*Adjusted net earnings and adjusted net earnings per diluted share are non-GAAP financial measures.Refer to page 77 for a reconciliation to the most directly comparable GAAP financial measures,net earnings and
62、 net earnings per diluted share.Net earnings($per diluted share)Adjusted net earnings*($per diluted share)Dividends paid($per share of common stock)12Stryker2021 Comprehensive Report2021 in review Leading in MedTech$17.1B in global salesSales by segment 16%Trauma&Extremities 15%Medical*13%Endoscopy*
63、12%Instruments*11%Knees 8%Hips 7%Spine 7%Neurovascular*7%Neuro Cranial*4%Other*MedSurg and Neurotechnology Orthopaedics and Spine56%MedSurg and Neurotechnology 15%Medical 13%Endoscopy 12%Instruments 7%Neurovascular 7%Neuro Cranial 2%Other44%Orthopaedics and Spine 16%Trauma&Extremities 11%Knees 8%Hip
64、s 7%Spine 2%Other2021 geographic net sales 72%United States 21%International(developed)7%Emerging markets13Stryker2021 Comprehensive Report2021 in reviewOur corporate responsibility journeyWe believe the health of the world is as important as the people who live in it.Corporate Responsibility(CR)enc
65、ompasses Strykers environmental and social impacts that aim to maximize shareholder and broader stakeholder value.Strykers CR objective is to positively impact people and our planet through responsible,sustainable practices that create a better,healthier world.This objective links to Strykers corpor
66、ate mission of making healthcare better,and it helps us focus on environmental,social and governance(ESG)priorities for our business where we can create strategic initiatives that drive progress.*For more information on our Scope 1 and 2 goals,see page 61In 2021,we introduced a new CR framework with
67、 three pillars:Stronger people We are committed to serving our communities and creating a healthy,diverse,equitable and inclusive workplace where employees thrive.-Advancing a culture of inclusion,engagement and belonging -Strengthening the diversity of our workforce and measuring progressHealthier
68、planetWe are committed to reducing our environmental impact on the world through responsible,sustainable operations.-Realizing 20 percent reduction in carbon emissions for all Stryker facilities 2019-2024*-Becoming carbon neutral for all Stryker facilities by 2030*Good businessWe are committed to he
69、lping customers improve patient outcomes and fostering responsible growth by pursuing quality and integrity in everything we do.-Increasing supply chain transparency and supplier diversity-Maintaining formal accountability to the Board of Directors for Corporate ResponsibilityWe have clear commitmen
70、ts and business activities that support each of these pillars,which you can read about in more detail throughout this report.14Stryker2021 Comprehensive Report2021 in reviewStakeholder engagementStryker recognizes the rising expectations from our stakeholders around CR and ESG,and we regularly engag
71、e on these topics with employees,customers,investors,suppliers,community members and regulators.This engagement comes in many forms,from formal surveys and interviews to ESG-focused calls with investors and informal conversations through our sales reps and at conferences.We are increasing investment
72、s in the companys CR and Sustainability teams and are advancing our ESG activities with multiple stakeholders in mind.Through our ongoing collaboration and engagement with stakeholders,we are committed to meeting their evolving expectations and needs.ESG priorities*In 2021,Stryker completed an asses
73、sment designed to identify,refine and prioritize the potential ESG issues that matter most to our business and external stakeholders.It included a benchmark against Strykers peers;an interview and data-based analysis of priorities among customers,suppliers and investors;surveys of Strykers sales rep
74、resentatives about the topics of greatest interest to customers;and a review of broader ESG trends.From these inputs,we developed a list of 20 ESG priority topics that align with our pillars of stronger people,healthier planet and good business.Moving forward,this prioritization will inform our stra
75、tegic planning,the targets and goals we set,and the way we communicate our progress.Stronger people -Access to quality healthcare-Community engagement,charitable giving and volunteering-Diversity,equity and inclusion -Employee and patient health and safety -Employee development and training-Engageme
76、nt with healthcare providers and customers-Ethical marketing -Product social impact and innovation Healthier planet-Air pollution-Biodiversity-Climate change -Environmental product/packaging development and design -Operational waste management -WaterGood business-Ethics,compliance,anti-corruption an
77、d anti-trust-Information security and privacy,intellectual property and cybersecurity -Product safety and quality-Responsible sourcing and human rights-Supply chain transparency and diversity -Transparency,ESG reporting and stakeholder engagement*ESG materiality*approach:Our assessment,completed by
78、an external agency with input from our leaders and internal stakeholders,helped us identify and prioritize the ESG topics that matter most to our external stakeholders and our company.We will continue to monitor the rapidly evolving ESG and Corporate Responsibility landscape,including the frameworks
79、 and guidelines,report on ESG priorities,evaluate these topics in the future and adjust our approach accordingly.*“Materiality,”as used in this report,is different than the definition used in the context of filings with the Securities and Exchange Commission.15Stryker2021 Comprehensive Report2021 in
80、 reviewStronger people16Stryker2021 Comprehensive ReportHealthcare providers and patientsOur mission”together with our customers,we are driven to make healthcare better.”acknowledges that we cant make progress alone.Building relationships with medical professionals,home care providers,emergency resp
81、onders,community members,hospitals and other healthcare facilities and their administrators is an essential part of fulfilling our mission.We cultivate these partnerships in several ways,including:-Conducting surveys to understand and address challenges that healthcare providers(HCPs)face in care en
82、vironments-Providing medical education and training-Funding appropriate grants for scientific research-Maintaining a staff of clinical nurse consultants who work alongside HCPs to create roadmaps to improve patient outcomes -Offering business solutions that allow facilities to offer accessible medic
83、al care-Working directly with our customers to develop new technologies,such as Blueprint Mixed RealityThe value of partnership has never been more apparent than during the pandemic.Our customers have been pushed to the limit and need companies and products that they can17Stryker2021 Comprehensive R
84、eportStronger peoplerely on.During this uncertain time,we are staying closely connected to customers to meet their needs and improve their experiences in a range of healthcare environments.Meeting our customers needs goes beyond good business.As one of the worlds leading medical technology companies
85、,we feel a larger sense of social responsibility.Our innovation and commitment to advanced technologies uniquely set us apart and help expand the reach of healthcare.Examples include our Mako SmartRobotics surgical system,used to perform hip and knee replacement surgeries,and our Triton blood loss m
86、onitoring platform.Patient and caregiver safetyWhen patients enter a hospital,they shouldnt have to worry about surgical site infections,pressure injuries,complications resulting from retained surgical sponges and fall-related injuries.These conditions can be costly to treat and can disrupt the reco
87、very process for patients.Hospital-acquired conditions are common,but also preventable.A strong commitment to protecting patient safety and improving outcomes spans Strykers businesses.We offer a broad portfolio of products across the continuum of carefrom pre-hospital to emergency,through all phase
88、s of operative environments,into the ICU,medical and surgical(MedSurg)and outpatient settingseven at a patients home.Our safety and outcomes product portfolio extends to caregiver safety,including innovations that help reduce slips,trips and falls,contain surgical smoke and limit strain when transfe
89、rring a patient from a stretcher or bed.Together,these products give patients and their caregivers confidence as they lead to safer treatments and more successful recoveries.These solutions have been developed in the same way as all our technology:by listening to our customers.With their input,we ha
90、ve expanded our portfolios breadth and depth of specialization 1 in 25 U.S.hospital patients have at least one hospital-acquired infection121 1 retained spongesoccur every day in the U.S.13 Up to 1 million13 patients in the U.S.experience a fall while being treated in the hospital each year,and near
91、ly one third of those falls can be prevented60,000patients die each year as a direct result of pressure injury14 Hospital-acquired conditions by the numbers18Stryker2021 Comprehensive ReportStronger peopleby developing and acquiring solutions to further enhance safety and improve outcomes.Examples i
92、nclude:-ProCuity Bed SeriesBased on customer research showing a correlation between bed height and fall risk,we designed the lowest bed in the industry with adjustable siderails to enable patients to enter and exit safely.Intelligent features provide caregivers with information to help them further
93、prevent falls.-Sage Self Oral CarePneumonia is the number-one hospital-acquired infection in the U.S.,but basic oral care can help keep infections at bay.15 Our all-in-one,single-use oral care system is designed to address the risk factors associated with hospital-acquired pneumonia.-SurgiCount and
94、SurgiCount+Safety-Sponge SystemsThis digital process assists doctors and nurses in tracking surgical sponges during surgery.The system has been used in over 16 million procedures,potentially saving the healthcare industry more than$825 million.16-Neptune SafeAir Smoke Evacuation When electrosurgical
95、 devices encounter human tissues during surgery,toxic smoke is released that can be harmful to human health.In fact,a day in the operating room(OR)for an HCP can have the same impact as smoking 27 unfiltered cigarettes.17 Our suite of smoke evacuation products helps reduce exposure to these biohazar
96、ds.In 2021,this solution earned the Waste Award given by U.K.-based organization Sustainability Partnerships,a company tendered by the NHS to drive and accelerate the sustainability agenda within the NHS.Keeping patients and caregivers safe is a shared endeavor.Stryker enters risk-sharing agreements
97、 with our customers,reimbursing them if they do not see decreases in the“never events”that our safety products are designed to reduce.As a result of this work,Stryker was named to Fortune magazines 2021 Change the World list.Access to quality healthcarePart of what it means to make healthcare better
98、 is to make it more accessible.As global populations grow and lifespans increase,this challenge has never been more urgentor more important.According to the World Health Organization,only 33 to 49 percent of the global population receives the essential health services they need.18 Stryker advocates
99、for increased patient access to lifesaving and life-improving medical technologies around the world,which enhances 19Stryker2021 Comprehensive ReportStronger peopleclinical outcomes and helps governments,other payers and providers make cost-effective decisions.At the same time,robust quality systems
100、 ensure that we never sacrifice quality in pursuit of accessibility.Our efforts include impact-focused philanthropic initiatives,virtual and in-person HCP education and training,and reduced-price and refurbished equipment programs.We also drive access through targeted acquisitions.As we acquire smal
101、ler companies developing cutting-edge healthcare solutions,we introduce their products to a broader market of healthcare providers,which ultimately increases access for patients.An example is our recent acquisition of the Silicon Valley startup Gauss Surgical,whose artificial intelligence-enabled bl
102、ood loss monitoring technology assists medical professionals in addressing a leading cause of maternal death globally.19 Healthcare economic improvements When clinical data and economic data align,customers can make decisions with confidence.Because Stryker offers products that represent significant
103、 financial investments,we work to reassure our customers that they will see a return.We collaborate with industry partners,trade associations and clinical societies to evaluate the clinical effectiveness and economic impact of our products.Then,we share this data with providers and payers,allowing t
104、hem to evaluate the benefit for their respective needs.Strykers solutions that help customers better understand and take advantage of these benefits include:-Mako SmartRoboticsOur robotic arm-assisted surgical system has been used to perform over half a million procedures,with hundreds of published
105、studies.Mako has demonstrated the potential to deliver value through enhanced outcomes such as:Reduced pain and use of pain medications in total knee arthroplasty(TKA)20,21,22 Reduced complications such as dislocation in total hip arthroplasty(THA),manipulation under anesthesia in TKA and revision i
106、n unicompartmental knee arthroplasty(UKA)23,24,25 Increased patient satisfaction in TKA,THA and UKA22,25,26 In TKA and THA,reduced utilization of health services such as skilled nursing,home health aide,readmissions and emergency room27,28,29,30 Reduced payer cost in TKA,UKA and THA27,28,29,31-Strok
107、EnomicsWith StrokEnomics,Stryker partners with physicians,hospitals and healthcare systems to create tailored solutions that may improve patient access and make care more efficient.By delivering strategies around health economic analysis and funding solutions,our team helps remove economic barriers
108、to enhance both patient access and quality of care.-CustomerOneOur Medical business offers customers products that address the most common and often expensive adverse events in acute care settings,such as catheter-associated urinary tract infections,hospital or ventilator-associated pneumonia and pr
109、essure ulcers.Our CustomerOne team partners with acute care providers to evaluate their current occurrence rates and measure reductions achieved(often 30 percent or more)with the appropriate use of our products.20Stryker2021 Comprehensive ReportStronger peoplePricing and refurbished equipment progra
110、ms Customers around the world tell us that they need payment options that fit their budgets and align with their business strategies.In response,our Flex Financial business offers a range of customizable programs including deferred payment programs,traditional finance and operating leases,step payme
111、nts and usage-based options.To meet the growing demand for affordable and reliable healthcare solutions in emerging markets,we invest in localization of value-segment technologies,such as Trauson in China for trauma,spine and joint replacement products.Rather than taking a one-size-fits-all approach
112、,we implement manufacturing strategies locally based on the needs of our customers.Strykers Sustainability Solutions business provides reprocessing services for single-use medical devices.Reprocessing of single-use medical devices lowers expenses by 25 to 30 percent without compromising quality or s
113、afety.27,28,29,31,32 For example,the Save Simply Program enables reprocessing of Sage Prevalon Mobile Air Transfer Systems,saving thousands of dollars in waste diversion costs while reducing hospitals environmental footprint.3321Stryker2021 Comprehensive ReportStronger peopleMedical educationWhen we
114、ll-trained professionals are equipped with industry-leading technology,patients have broader access and better outcomes.To help make these outcomes possible,we provide extensive medical education and training on the safe and effective use of our products for thousands of HCPs worldwide.Through these
115、 efforts,we aim to advance product and procedural knowledge and skills,improve customer confidence and ultimately improve patient care.Strykers focus on medical education is to provide a simplified,personalized and engaging customer experience.HCPs can access our educational opportunities via our se
116、lf-service portal on .It includes interactive trainings,on-demand video libraries and learning series,along with tools like our Global MedEd calendar and Common Learning Management System to deliver and track training activity.In addition to virtual education,our offerings include product in-service
117、s,cadaveric training courses,surgery observations,HCP-to-HCP trainings,proficiency-based training,proctoring and certifications.We conduct all training activities in strict accordance with our internal HCP interactions(HCPi)guidance,which is designed to comply with applicable laws and adhere to reco
118、mmendations of industry associations such as AdvaMed.It covers considerations,principles and procedures for all interactions between Stryker employees and HCPs.Our Medical Education Council oversees the global team that drives medical education excellence across the company.As the global pandemic li
119、mits opportunities to travel and conduct in-person education opportunities,we continue to offer virtual trainings and resources,such as surgical demonstrations streamed to hundreds of sites.One of our premier surgeon-to-surgeon programs allows attendees worldwide to view live surgery anywhere and to
120、 ask questions during the procedure.Across our businesses,we trained more than 108,000 HCPs and conducted more than 6,000 courses in 2021.22Stryker2021 Comprehensive ReportStronger peopleGrants and charitable donationsStryker provides education,research,grants and charitable donations for appropriat
121、e scientific,educational or healthcare purposes.We do not offer grants or donations as unlawful inducement to purchase,lease or recommend the use of any of Strykers products or services,as outlined in our HCPi guidance.We document all grant and charitable donation requests.The appropriate business r
122、eviews and approves any proposal before the event date and follows applicable laws,regulations,corporate guidelines and divisional procedures.-At Strykers Learning Center in Salt Lake City,our medical education team hosted a three-day,in-person Cerebrovascular and Skull Base cadaveric course,which i
123、nvolved several neurotechnology businesses coming together to train 23 neurosurgery residents with world-renowned faculty.-In partnership with the Association of periOperative Registered Nurses(AORN)and nursing consultants,we delivered two training courses to educate operating room staff on updated
124、guidelines on retained surgical items and smoke evacuation.-With our new SKILL Assist Remote Proctoring Solution,we were able to remotely proctor nearly 300 cases around the globe,training on our Evolve and Streamline neurovascular products.-Our mobile labs hosted events across the U.S.Our Surgical
125、Technologies Mobile Lab visited 51 institutions and reached 2,140 HCPs,while our Neurosurgical Mobile Lab traveled 37,000 miles and reached 1,664 HCPs.-In Boston,we collaborated with a surgeon partner to host a Surgical Training Lab on mandible reconstruction using virtual surgical planning(VSP)tech
126、nology and our Facial iD Mandible Reconstruction Plate.In 2021,Stryker held impactful training sessions with HCPs across the world.A few examples include:Educating HCPs on the safe use of our products23Stryker2021 Comprehensive ReportStronger peopleEmployeesOur workplace is special.Just ask our empl
127、oyees.“Its just different here.”A common sentence heard by our new hires and tenured team members alike.The reason?Our relentless pursuit to attract,engage and develop top talent that delivers results.Focus on these areas and our mission to deliver for our customers and their patients is what sets u
128、s apart.The result is a workplace that puts talent,employee safety and wellbeing first while supporting personal development as individuals,leaders and team members.These dynamics all come together in a workforce of approximately 46,000 employees worldwide,united by a common mission of making health
129、care better.Diversity,equity and inclusionAs we grow and evolve,one thing will never change:people are at the heart of what we do.By valuing our differences,we are stronger together.Strykers senior leadership team oversees our Diversity,Equity and Inclusion(DE&I)efforts,which are a foundational elem
130、ent of our business strategy.We focus on enabling a culture that creates access and opportunity for everyone to thrive and reflects the diverse backgrounds and needs of the communities that we serve.Our DE&I commitments support our philosophy and our mission to make healthcare better.Our DE&I commit
131、ments Strengthen the diversity of our workforce Advance a culture of inclusion,engagement and belonging Maximize the power of inclusion to drive innovation and growth24Stryker2021 Comprehensive ReportStronger peopleAdvancing our strategy through actionIn 2021,we aligned our actions across the compan
132、y in six areas to advance our DE&I commitments.Leader accountability through increased transparency of data,performance objectives and inclusion in our business review process.Our leadership teams regularly review our diversity metricsincluding representation,recruiting,retention and advancementand
133、initiate strategies and actions to support continued progress.We incorporated DE&I metrics and action plans into our business review process and will continue to share diversity data with all employees annually.In 2021,we set a goal for all managers to complete our Think Twice unconscious bias works
134、hop,which showcases what bias is,how it shows up and what to do about it.In addition,we introduced a DE&I goal for all people managers annual objectives,helping us to develop inclusive leadership at all levels of management.Engage and inspire all talent and empower every employee to take action.It t
135、akes all of us working together to advance our commitment to DE&I.This year,we took steps to strengthen the foundation for DE&I at Stryker by educating and empowering our employees during our first global DE&I summit.We also continued to host global listening sessions,engaging with our employees to
136、identify and address areas of opportunity and strengthen our culture of inclusion.Participants said they felt encouraged by our actions to date,and want to see continued focus on DE&I moving forward.Develop our people and processes by removing barriers and optimizing the power of diverse backgrounds
137、,talents and perspectives.We led several differentiated development programs aimed at increasing visibility and career development.We also increased education and resources for managers related to inclusive hiring practices and mitigating bias in talent processes.A recent accomplishment includes Cro
138、ssing the Finish Line,a program to support the development,engagement and advancement of Black,Hispanic and Latino/a employees.Through this program,participants gain exposure to senior leaders,enhancing opportunities for visibility,advocacy and strategic networking.Engaging employees to“be the diffe
139、rence”Our first global DE&I summit,held in July,was open to all Stryker employees.We used the summit to increase global awareness of our DE&I commitments,share updates on our progress and highlight the role all employees play in achieving our goals.The summit challenged us to be the difference:for o
140、urselves,our colleagues,our customers and our communities.Our Chair and CEO,Kevin Lobo,reinforced our commitments and discussed the importance of authenticity,transparency and accountability with Lisa Skeete Tatum,Founder and CEO of Landit and a member of our Board of Directors.Over the course of th
141、e five-day event,there were more than 25,000 views as fellow employees and customers shared stories and perspectives that encouraged us to think differently about DE&I and how we can each contribute to an inclusive environment.The summit educated us on important topics,amplified our Employee Resourc
142、e Groups(ERGs),and empowered each of us to advance our commitment to DE&I.25Stryker2021 Comprehensive ReportStronger peopleAttract a diverse talent pool through focused outreach and ensuring an objective hiring process.We have challenged ourselves to think differently about how we recruit,hire and o
143、nboard talent to ensure that we are attracting a mix of skills,knowledge and diversity that best reflects and serves our customers.We focused on process enhancements and education to reinforce an inclusive and objective hiring process and on advertising,marketing and partnership events to promote St
144、ryker as an employer of choice for all.ERGs shared insights and inputs for our diversity recruiting strategies.Stryker partners with multiple organizations and in 2021 established new partnerships with The PhD Project,Disability:IN and Rewriting the Code.At the same time we strengthened our engageme
145、nt with the National Sales Network and historically black colleges and universities(HBCUs).We expanded our early talent strategy to reach more students and initiated a partnership with WayUp,a digital platform that offers opportunities to engage with more than 6 million students from historically un
146、derrepresented groups.In 2021,2/3 of our filled jobs in the U.S.included diverse interview slates.Workplace awardsBest Workplaces,Great Place to Work Brazil,Canada,Chile,Finland,France,Greater China(China mainland,Taiwan,Hong Kong),Italy,Japan,Mexico,South Korea,Sweden,United Kingdom,United StatesRe
147、gional Great Place to Work awards:Asia,EuropeSpecialty Great Place to Work award:Manufacturing and Production,Millennials,ParentsDiversity,equity and inclusionAmericas Best Employers for Diversity,ForbesAmericas Best Employers for Women,ForbesBest Workplaces for Women,Great Place to Work,Chile,Franc
148、e,Italy,United Kingdom,United StatesBest Workplaces for All,Great Place to Work,Mexico Best Places to Work for LGBTQ Equality,HRC Corporate Equality IndexMilitary Friendly Employers,VIQTORYBest of the Best Top Veteran Friendly Company,U.S.Veterans MagazineTop 50 employer,Woman Engineer magazineTop 5
149、0 employer,Minority Engineer magazine26Stryker2021 Comprehensive ReportStronger peopleAdvance our ERGs to expand reach through executive leadership,global presence,funding and aligned strategies.Our ERGs play a critical role in creating an inclusive culture and provide valuable input to our DE&I act
150、ion plans.They create networking and development opportunities and advocate for underrepresented talent groups.In 2021,we strengthened the infrastructure,governance and executive sponsorship of our ERGs to create consistency and greater impact to the business.We also established a DE&I roundtable wi
151、th representation from each ERG to gather input on the broader DE&I strategy and align ERG initiatives to advance our goals.Positively impact our customers and communities through building and strengthening external partnerships.We engaged with several organizations focused on the advancement of div
152、erse talent groups.This included developing our partnership with OneTen as a founding member,launching our Career Right Here initiative in Kalamazoo,Michigan,and strengthening our recruiting partnerships.These partnerships demonstrate our commitment to create a workforce more reflective of the diver
153、sity among our customers,patients and communities.Stryker continues to work with our customers on DE&I initiatives internally and externally.We have openly shared what Stryker is doing with customers as they develop and lead their own DE&I efforts.Additionally,we invite customers to share their pers
154、pectives on DE&I at ERG events and our global DE&I summit.27Stryker2021 Comprehensive ReportStronger people2021 progress toward our goals We remain committed to strengthening our culture and communities while improving our company with sustainable progress over time.While there is more work to do,we
155、 are proud of our progress toward the goals we set forth last year.Increase representation of women and racially/ethnically diverse talent to reflect our markets0.9%Increase in representation of women(global)1.3%Increase in race/ethnicity representation(U.S.only)Compared to 2020Ensure 100 percent of
156、 people managers complete DE&I training within one year of hire or promotion to manager98.9%completion-Added executive sponsorship of our LGBTQ+ERG,Stryker Allies for Equality(SAFE)and our Asian Community Empowerment(ACE)ERG -Piloted a mentoring and career coaching program with Strykers African Ance
157、stry Network(SAAN)to increase leadership exposure and offer focused development Actively support ERGs through increased funding and sponsorshipMeasure employee sentiment through regular engagement surveys and ensure parity across gender and racial/ethnic groups Increase in our company Gallup Inclusi
158、veness Index score,a measure of employee belonging in the workplace Increase jobs for Black Americans through active engagement as a founding member of the OneTen coalition -Marketing open roles via OneTens platform-Contributing to skills-first workstreamContinue investment in diversity recruitment
159、Increase investment in diversity recruiting by:-Building internal capability-Acquiring new tools-Establishing additional external partnerships28Stryker2021 Comprehensive ReportStronger people Representation dataGender(global)Overall 36.6%Women(2020:35.7%)62.8%Men(2020:63.5%)0.6%Not reported/not disc
160、losed(2020:0.8%)Team members 37.6%Women(2020:36.9%)61.7%Men(2020:62.2%)0.7%Not reported/not disclosed(2020:0.9%)Managers and directors 33.3%Women(2020:31.9%)66.4%Men(2020:67.6%)0.3%Not reported/not disclosed(2020:0.5%)VP+25.0%Women(2020:23.0%)75.0%Men(2020:77.0%)*Calculated on the day the directors
161、were elected at the annual shareholders meetings in 2020 and 2021.Board*40%Women(2020:40%)60%Men(2020:60%)29Stryker2021 Comprehensive ReportStronger people Race/ethnicity(U.S.only)*Overall 70.2%White(2020:71.5%)10.6%Hispanic or Latino/a(2020:10.1%)5.6%Black or African American(2020:5.5%)7.5%Asian(20
162、20:7.2%)6.1%Additional races/ethnicities(2020:5.7%)*Team members 67.9%White(2020:69.0%)12.3%Hispanic or Latino/a (2020:11.8%)6.6%Black or African American(2020:6.6%)6.7%Asian(2020:6.5%)6.5%Additional races/ethnicities(2020:6.1%)*VP+83.5%White(2020:87.8%)1.6%Hispanic or Latino/a (2020:1.2%)2.7%Black
163、or African American(2020:2.9%)6.4%Asian(2020:5.2%)5.8%Additional races/ethnicities(2020:2.9%)*Managers and directors 76.9%White(2020:79.2%)5.5%Hispanic or Latino/a (2020:4.8%)2.5%Black or African American(2020:2.2%)10.0%Asian(2020:9.5%)5.1%Additional races/ethnicities(2020:4.3%)*This data does not i
164、nclude Puerto Rico.*Includes American Indian,Native Alaskan,Native Hawaiian,Pacific Islander,two or more races,and not disclosed.*Calculated on the day the directors were elected at the annual shareholders meetings in 2020 and 2021.Board*50%White(2020:50%)20%Black or African American(2020:20%)30%Asi
165、an(2020:30%)30Stryker2021 Comprehensive ReportStronger peopleEmployee health and safetyAs a company in the business of keeping people healthy,ensuring our employees safety and wellbeing is a top priority.Its a responsibility that we share throughout the company and one that has evolved to meet the n
166、eeds of our workforce during the pandemic.Employees safety risks vary depending on the roles they perform,so we tailor our safety strategies accordingly.These roles include production work carried out at manufacturing sites,commercial work carried out in the field and administrative work carried out
167、 virtually or in an office,among other categories.In 2021,we maintained an overarching focus on providing employees with resources to stay both physically and mentally well,standardizing and broadening safety practices and cultivating a strong employee focus on health and safety.Manufacturing safety
168、 For our employees working at Strykers manufacturing and distribution sites,offices and remote locations,the cornerstone of our safety practices is our Environmental,Health and Safety(EHS)Policy.The Policy mandates that we collectively meet all regulatory requirements and drive a culture of global s
169、afety and security.It defines four key commitments:a safe workplacePromote Anticipate recognize,evaluate and control environmental,health and safety risksfacility EHS complianceAssure for disaster response and recoveryPrepare Employment typeFull-time vs.part-time 45,483 Full-time 659 Part-timeSalari
170、ed vs.hourly 35,468 Salaried 10,674 HourlyHiring and retention8,562 2021 new hires 31%open roles filled by internal candidates31Stryker2021 Comprehensive ReportStronger peopleemployees by installing protocols that address these site-specific needs.Each manufacturing site is responsible for its facil
171、ity-level EHS compliance and is assigned an EHS Point of Contact(POC),supported by the Global EHS Director.Each POC is responsible for relaying global EHS guidance and directives to its local EHS committees and leadership teams to effectively drive and manage EHS commitments and programs at a region
172、al level.The most common types of work-related injuries for Strykers manufacturing employees include slips,trips and falls,injuries from repetitive motion or ergonomic issues,and struck objects.Since 2019,Stryker has meaningfully decreased injuries related to slips,trips and falls as well as machine
173、ry-related hand cuts by implementing new education and training initiatives.Additional manufacturing risks are site-specific and related to our medical device manufacturing processes.We take special precautions to protect 32Stryker2021 Comprehensive ReportStronger peopleListen.Leverage.Improve.Histo
174、rically,one of the most exacting tasks performed at our manufacturing sites involved the operation of Computer Numerical Control(CNC)machines.Employees use these machines to cut materials like aluminum,titanium,steel and plastic.The safety record relating to our CNC machines in Mahwah,New Jersey was
175、 at the highest level of any facility throughout our manufacturing network.Our EHS Director,Alvis Headen,took notice and visited the facility to learn what made Mahwahs process different.Operators demonstrated a meticulous shut-down and change-out process that reduced risk of injury.The EHS team col
176、laborated with Mahwah employees to produce a presentation that now serves as mandatory annual training for all CNC machine operators.By leveraging employees expertise,we have nearly eliminated all CNC-related injuries,with only one instance reported in 2021.In 2021,we made several program improvemen
177、ts to further enhance our EHS outcomes.These included:-Hiring additional regional EHS leaders and training all EHS managers on a mandatory curriculum based on industry-recognized competencies-Expanding our SAP-EHS Management System into 41 of our manufacturing sites,including four sites integrated t
178、hrough the Wright Medical acquisition-Reducing common manufacturing-related injuries through targeted instruction on topics including slips,trips and falls,machine guarding and hazard communication-Investing more than$6 million in fire safety improvements across manufacturing sites through a compreh
179、ensive risk management and site-wide auditing program-Further developing our lessons-learned program by creating a Global Quality Operations(GQO)Incident Review Board,which holds managers accountable for communicating key lessons from significant safety-related incidents occurring within our manufac
180、turing plantsThese efforts continue to move us toward our goal of zero work-related injuries.Manufacturing safety KPIsIn 2020,in response to the COVID-19 pandemic,we limited occupancy and reduced work hours to mitigate virus transmission and keep our people safe(read more about our COVID-19 response
181、 efforts).Work hours represent a critical multiple in calculating injury rate,causing this key performance indicator(KPI)to drop in 2020.In lieu of comparing our injury rate during a pandemic to full scale operations,we have elected to compare our 2021 injury rate to the 2019 production yeara more r
182、ealistic comparison.Our 2021 injury rate is roughly two-thirds the injury rate of 2019.Additional safety data and details on our safety progress can be found in our GRI Index.At Stryker,EHS is a collective responsibility,meaning all employees are expected to contribute to our process of anticipating
183、,recognizing and controlling safety risk.Safety observations represent a key indicator of employee engagement.Safety observations can be in the form of positive feedback such as employees recognizing the correct use of personal protective equipment or correcting a safety deficiency such as cleaning
184、a wet,slippery floor.We strongly believe that high EHS observation counts are indicative of an engaged workforce,committed to reducing injuries.Near miss frequency rate*Manufacturing safety KPIsSafety observationsRecordable injury rate(per 100 employees)33Stryker2021 Comprehensive ReportStronger peo
185、ple*Data updated Jan.11,2022Field and commercial safetyFor our commercial team,its all about meeting clients where they arefrom hospitals and medical facilities to site and mobile labs to educational institutions.They use their expertise to represent Strykers products and services,provide testing an
186、d education and,in many cases,facilitate product implementation.Field-based employees are unique in the sense that they share EHS responsibilities with the hospitals and other locations they enter.Sales representatives complete an in-depth onboarding process that includes risk management and divisio
187、n-specific trainings.The types of risks our commercial team faces are tied to their division,products and customers.Representatives from our Medical divisionwhose product lines include beds,wheelchairs and patient room furnitureare more prone to ergonomic risks associated with lifting,pulling or pus
188、hing heavy equipment.Those involved in testing,demonstrating and implementing handheld medical and surgical products may face other types of risks.We keep field and commercial employees safe by focusing on three main principles:-Safety culture-Education and awareness-Systems and processes These ongo
189、ing measures work to ensure commercial and field employee safety.Another important focus has been protecting field-based employees,as well as the clients and medical professionals they engage with,throughout the COVID-19 pandemic.34Stryker2021 Comprehensive ReportStronger peopleCOVID-19:Our response
190、 effortsProtecting our employees and steering them through the challenges posed by the global pandemic remain a collective and ongoing priority.We continue to base COVID-19 safety protocols and operations on case rates,government regulations and guidance from regulatory bodies in locations where we
191、operate.We have teams focused on protecting our employees at the global,regional and local levels.Local Incident Response Teams(LIRT),rolling up to a Centralized Incident Response Team(CIRT),remain in place to ensure a coordinated response.Because the risks and guidelines associated with COVID-19 sh
192、ift in different regions at different times,in 2021 we focused on a localized response for most day-to-day procedures.For large-scale protocols,Strykers leadership team provides ultimate oversight,with guidance from our COVID-19 response review board of medical,legal and business experts.Employee we
193、llbeing and mental healthAs the pandemic continues to transform the ways we work and interact,we are focused on supporting employees overall wellbeing and finding a balance between providing workplace flexibility and maintaining connection.To ensure the physical and mental wellbeing of our employees
194、,we:-Expanded our LifeWorks Employee Assistance Program(EAP)globally,which offers 24/7 support on topics including mental health,grief,elder care,addiction and more-Introduced three new partners for U.S.members of Strive,our wellbeing program that helps employees learn about,create,implement and sus
195、tain healthy habits -Offered new self-service resources on mental health,wellbeing and flexible work-Promoted the importance of preventive care visits to our employees and their families-Equipped managers with educational resources and tools to support their employees in navigating our new normal We
196、 also conducted two employee pulse surveys in 2021 on topics related to employee connection and wellbeing.These surveys are intended to be quick check-ins between managers and employees that provide insight into what support employees need to be successful.Accompanying the launch of both pulse surve
197、ys were question-by-question resources offering additional support.35Stryker2021 Comprehensive ReportStronger peopleEmployee career developmentStryker is growing,which means more opportunities for employees to grow.We invest deeply in training employees in new skills and processes while supporting t
198、heir individual goals and passions.From onboarding new hires to developing existing talent to integrating those who join us through acquisitions,our talent offense helps us to identify employee development needs and guides the design of new learning opportunities.Development at Stryker is extensive
199、and exists at all levels of the organization,including companywide training on topics ranging from our code of conduct and job-related technical training to leadership development.We design our talent programs around a 70/20/10 development model and include management and leadership training,peer-to
200、-peer learning,mentoring and partnerships with outside experts on key topics and“action learning”where employees apply their new insights to solve real-time business opportunities and challenges.A unique aspect of our career development offerings is our internal network of coaches.We have over 280 c
201、ertified coaches globally with whom employees can connect for additional individualized development.As we acquire and integrate additional companies,HR leaders use our integration playbook to provide employees at various levels with the appropriate training,development opportunities and immersion in
202、 Strykers culture.36Stryker2021 Comprehensive ReportStronger peopleWe manage training at the local,business or global level,depending on training type.Functional learning is managed by each department or functional group.The Talent Management Center of Expertise designs and delivers management and l
203、eadership development offerings,and in 2021,provided approximately 320 offerings for more than 7,800 participants.Our partnership with LinkedIn Learning also gives employees access to over 16,000 online courses taught by real-world professionals.Additional 2021 highlights include:-New executive deve
204、lopment programs including our Leadership Masterclass(offered to new vice presidents),Director Roundtables and the reintroduction of our Growth Academy for senior commercial leaders-Expanded Global Leadership Development curriculum including Lead 100(fundamentals of leadership),Leading in a Matrix a
205、nd Building a Culture of Coaching and Feedback-Virtual development resources including our LinkedIn Learning partnership,Learning Sprints,Talent Talk podcasts and virtual one-on-one leadership coaching 37Stryker2021 Comprehensive ReportStronger peoplePerformance managementOur approach to performance
206、 management is based on a culture of continuous improvement and coaching.Managers are responsible for attracting,developing,engaging and aligning their teams to ensure they feel connected to each other and our mission as part of our talent offense approach.Our employees undergo annual performance re
207、views and are encouraged to create individual development plans,in partnership with their manager,on an ongoing basis.We support this by providing employees and managers with resources to communicate and share feedback throughout the year using our Workday platform.Employee goalscomprised of perform
208、ance goals and leadership expectationsdrive focus on outcomes and behaviors.22,000+hoursEmployees spent81,000+LinkedIn Learning courses in 2021viewing CommunitiesAccess to good health shouldnt be determined by factors like area code or incomeand neither should opportunities to get a job.To combat th
209、ese inequities,we engage communities around the world,providing support to those who need it most.Our approach links directly to our DE&I strategy and centers on partnerships with community members and organizations whose work aligns with our mission and values.We also leverage the talent and passio
210、n of thousands of Stryker employees to raise funds and provide support through volunteer efforts,mentorship programs and educational opportunities.Giving and volunteering programsStrykers employees fuel our companywide passion for improving the lives of others.Whether its by volunteering locally or
211、donating globally,our people are driven to give.To improve quality of life for people around the world,we advance healthcare,education,the arts and environmental sustainabilitywhile keeping equity top of mind.We also care about the unique causes that motivate our employees,and this year we made it e
212、ven easier to give back and get involved.Strykers global supportStryker supports organizations that align with our community giving goals.38Stryker2021 Comprehensive ReportStronger peopleIn 2021,our businesses and their teams gave back through educational outreach,pledge walks and other activities t
213、hat raised funds for organizations including Operation Smile,Operation Walk,the National Brain Tumor Society and the Thi Nghe Orphanage.We also provided product donations to healthcare organizations including the Foundation of Orthopedics and Complex Spine(FOCOS)Orthopedic Hospital.In total,Stryker
214、donated$6 million in products and$9 million in monetary support in 2021.39Stryker2021 Comprehensive ReportStronger peopleOperation SmileFor nearly four decades,Operation Smile has provided critically needed surgical and comprehensive care for children with cleft and other conditions in low-and middl
215、e-income countries.Stryker has supported these efforts through cash,in-kind donations and mission volunteers since 1999.Our annual Smile Maker campaign benefits Operation Smile by raising money to fund life changing surgeries.The 202021 campaign included a dollar-for-dollar match on employee Career
216、Right Here We believe that reaching our own potential starts by helping our neighbors reach theirs.In Kalamazoo,Michigan,home of our worldwide headquarters,our community faces a local poverty rate well above the national average and an average household income well below it.In 2021,we launched Caree
217、r Right Here to help close this equity gap while creating a talent pipeline that better reflects the diversity of our local population.The program supports Kalamazoo job seekers by increasing clarity around job eligibility criteria and communicating available positions.We also connect them with loca
218、l educators,skills providers and non-profits to prepare them for the future.The program creates opportunities for our employees to get to know their neighbors,and we work with other local employers,nonprofits and community members to share what we learn.Career Right Here is a powerful talent initiat
219、ive that will offer career readiness programs,connect us with untapped talent and strengthen our community.”Kevin Lobo,Chair and CEO donations and provided support for patient care programs,COVID-19 relief efforts and more.Together with our employees,we helped Operation Smile reach over 15,000 child
220、ren and adults worldwide who needed care.More than 1,000 employees serve as Operation Smile ambassadors who engage with the program by educating their local communities and raising funds.Over the years,Stryker employees have also served on Operation Smile missions,supporting the medical team,patient
221、s and families.While the organization suspended large-scale medical missions in 2020 due to COVID-19,patient care has since resumed in 33 countries,spearheaded by in-country medical volunteers and Operation Smile offices.Stryker also funds innovative medical education programming for healthcare work
222、ers across the world,including in Rwanda,where wait lists for skin and plastic surgery can extend to several years.In 2021,part of our support helped Operation Smile launch a new medical education program that will train 60 anesthesia clinical officers in safe anesthesia administration practices.By
223、creating more surgical capacity and helping to improve patient outcomes,Strykers funding of the program is strengthening Rwandas healthcare systems at the national level.Introducing ImpactIn 2021,we launched Impact,a new global giving and volunteering platform that allows Stryker to support causes t
224、hat our employees are passionate about.Stryker matches employee donations through this platform,and in 2021,we celebrated the launch by offering a limited-time,two-to-one match.Impact also provides employees with personalized volunteer options,including virtual,skills-based and in-person opportuniti
225、es.In addition,when disaster strikes anywhere across the globe,employees can support relief efforts and get funds to the places that need it most.Eligible employees in the U.S.can request a volunteer leave of absence for one day per year to receive pay while volunteering with a qualifying organizati
226、on during their normal work schedule.40Stryker2021 Comprehensive ReportStronger people$1.8Mdonated in six months(employee donations and company match)1,660nonprofits received donationsGoodbusiness41Stryker2021 Comprehensive ReportGovernanceWe are committed to doing whats right.Strong corporate gover
227、nance is essential to living our value of integrity.We conduct our affairs in compliance with all applicable laws and regulations and according to the highest ethical standards.Stryker regularly engages with shareholders and considers their proposals,when properly submitted,based on our mission and
228、values.Proposals come to a vote at our annual meeting when common ground is not found.42Stryker2021 Comprehensive ReportGood businessCorporate governance information,including our bylaws,charters,guidelines and policies,is available on ,and we include further details about governance topics in our p
229、roxy statement.We also provide periodic disclosures in our SEC filings.Board of DirectorsKevin A.Lobo*Allan C.Golston Mary K.Brainerd Giovanni Caforio,M.D.Srikant M.Datar,Ph.D.*Sherilyn S.McCoy Andrew K.Silvernail*Lisa M.Skeete Tatum*Ronda E.Stryker Rajeev Suri*John W.BrownChairman EmeritusFormer Ch
230、air,President and CEOHoward E.Cox,Jr.Director Emeritus*Chair of the Board Lead Independent Director*Audit Committee Compensation Committee Governance and Nominating CommitteeMore information about our directors experience is available in our proxy statement.See page 30 for Board diversity metrics.43
231、Stryker2021 Comprehensive ReportGood businessLeadership team*Kevin A.Lobo Chair,Chief Executive Officer and PresidentYin C.BeckerVice President,Chief Corporate Affairs OfficerGlenn S.BoehnleinVice President,Chief Financial Officer M.Kathryn(Katy)FinkVice President,Chief Human Resources Officer Rober
232、t S.Fletcher Vice President,Chief Legal Officer Viju S.MenonGroup President,Global Quality and Operations J.Andrew(Andy)Pierce Group President,MedSurg and Neurotechnology Spencer S.Stiles Group President,Orthopaedics and Spine*38%of our senior leadership team identifies as racially/ethnically divers
233、e,and 25%of our senior leadership team identifies as female.With appreciationTimothy J.ScannellPresident,Chief Operating OfficerWe sincerely thank Tim Scannell for his 31-year service to Stryker.During his time as president and chief operating officer,Tim accelerated our global growth,facilitated co
234、mpanywide synergies and assisted with the development of many of our leaders.Throughout his career,Tim supported his teams in developing business strategies that contributed to our category leadership positions through market-leading sales growth,consistent product innovation and a steady flow of va
235、lue-building acquisitions.Tim focused on developing a culture of sales and marketing excellence and valued the privilege of interacting with our clinical customers.David G.FurgasonVice President,TaxWe express our gratitude and appreciation to David Furgason for his 17 years of service and contributi
236、ons to Stryker.Under Davids leadership,the Tax department expanded its global role to be an integral business partner by increasing collaboration,driving innovation and delivering meaningful results.44Stryker2021 Comprehensive ReportGood businessOther officersOther leadership membersWilliam E.Berry
237、Jr.Vice President,Chief Accounting OfficerJeanne M.Blondia Vice President,Finance and Treasurer Irene B.Corbe Vice President,Internal Audit Robert A.CummingsVice President,TaxAlan E.DouvilleVice President,Chief Information Officer and Chief Information Security OfficerSean C.EtheridgeVice President,
238、Corporate SecretaryDana S.McMahonVice President,Chief Compliance OfficerJody K.Powell Vice President,Global Regulatory Affairs and Quality Assurance Preston W.WellsVice President,Investor RelationsDivisional leadershipJ.Michael CarlinCustomer SolutionsRobert C.CohenDigital,Robotics and Enabling Tech
239、nologiesDylan B.CrottyInstrumentsBrent W.LaddEndoscopyDavid M.MercadoCraniomaxillofacialMichael H.Panos Trauma&ExtremitiesMark H.Paul NeurovascularDonald E.Payerle Joint ReplacementCharles E.Robinson,Jr.SpineBradford L.Saar MedicalRegional leadershipJohn P.Collings Asia PacificMaurice Ben-Mayor Sout
240、h Pacific Wesley B.Grant East Asia Gregory F.HolmanChina Satoshi MizusawaJapan Meenakshi Nevatia India Stuart A.J.Silk EMEA,Canada,Latin AmericaSilvia Braga Latin America Dragana Bunjevac EEMEA Christophe J.M.DujardinEuropeLindsay A.WilliamsCanada 45Stryker2021 Comprehensive ReportGood businessCorpo
241、rate responsibility governanceOur mission and values,company strategy,code of conduct and code of ethics are the foundation from which we embark on our corporate responsibility(CR)journey.In enterprise risk management and strategy development,our Board of Directors considers environmental,social and
242、 economic risks.The Board entrusts responsibility to Strykers leaders who direct local management responsible for implementation.In February 2021,we amended our Governance and Nominating Committee Charter to give this Board committee oversight of CR matters.Stryker anticipates including ESG metrics
243、in the compensation plans of select Named Executive Officers(NEOs)in the future.The details of our NEOs compensation plan for 2022 will be disclosed in the proxy statement for our 2023 Annual Shareholders Meeting.Our CR Steering Committee includes three executive officers who report to the CEO.This
244、committee,along with other leadership team members,provides regular updates to Strykers leadership team,updates to the Governance and Nominating Committee three times per year,and annual updates to the full Board of Directors.The Steering Committee is guided by its charter,which also provides accoun
245、tability.Risk assessmentStryker has a variety of programs and processes in place to identify and assess a range of strategic,financial,operational and compliance risks,including the risk of anti-competitive behavior,anti-trust and monopoly practices,and information security threats.The Board and the
246、 Audit Committee and the Governance and Nominating Committee meets regularly throughout the year with our Group Presidents and our Finance,Information Security,Tax,Treasury,Internal Audit,Legal and Compliance management teams to assess the financial,legal/compliance,cybersecurity and operational/str
247、ategic risks throughout our businesses and review our insurance and other risk management programs and policies to enable the Board to exercise its ultimate oversight responsibility for the companys risk management processes.Our risk programs,related activities and governance are designed to oversee
248、 efforts to identify emerging risks and implement comprehensive initiatives to manage them where appropriate.Corporate governance at StrykerBoard Governance and Nominating CommitteeOversees CR mattersCEO and senior leadershipDirect local management who are responsible for implementing the Boards ris
249、k management strategyCR Steering CommitteeOversees ESG strategy,goals and reporting;provides feedback to the CEO and leadership team CR Steering Committee-Mike Anderson,APAC-Yin Becker,Corporate Affairs-Eileen Buckley,Corporate Responsibility-Gemma de Koning,EMEA,LATAM and Canada-Sean Etheridge,Corp
250、orate Secretary-Katy Fink,Human Resources-Jennifer James,Finance-Viju Menon,Global Quality and Operations -Jodie Morrow and Matt Moreau,Commercial Business-Erol Odabasi,Corporate Sustainability -Preston Wells,Investor Relations 46Stryker2021 Comprehensive ReportGood businessInformationsecurity and p
251、rivacyAs a global company supporting operations in more than 75 countries,having an advanced information technology(IT)infrastructure is critical.Our IT organization supports 38,000 requests monthly,thousands of digital meetings weekly and system changes that we must constantly monitor.34 We work di
252、ligently to provide that the organization can operate efficiently,and to protect the interests and privacy of our employees,customers,patients and our stakeholders.Our global chief information officer and chief information security officer brief the Board of Directors at least annually and,beginning
253、 in 2022,will brief the Audit Committee at least three times a year on company policies and practices with respect to cybersecurity risk assessment and risk management.We seek protection of intellectual property that we own and develop,and we respect the valid intellectual property rights of others.
254、We also respect the privacy of our customers,employees and third parties and have processes and policies designed to protect information.47Stryker2021 Comprehensive ReportGood businessCybersecurityMindful that cybercrime is becoming more widespread and sophisticated,our cybersecurity program is mult
255、ifaceted and continuously improving.Our program includes a Security Operations and Cyber Fusion Center that monitors and detects threat activity 24/7 to proactively gather,analyze and act upon relevant intelligence to defend Stryker and our customers.Program activities include risk management,compli
256、ance assurance,data breach management,regulatory and compliance.We continue to evolve and improve the program by conducting security-related exercises quarterly.Further,as an ISO 27001-certified organization,our Quality Management Program includes internal and external security reviews of products a
257、nd systems,and is developed in accordance with security and privacy-by-design principles.Central to these efforts is our CyberSecurity,CyberRisk and IT Compliance(CCI)team,whose goal is to keep Strykers data and assets secure while ensuring a rapid response to cyber threats and mitigating identified
258、 risks to an acceptable level.In 2021,the team advanced this goal in several ways:-Expanded CCIs organizational portfolio to include two new digital and program focus areas-Diversified our global footprint by building a new security operations center in Costa Rica-Responded to new cybersecurity laws
259、 in China by partnering with IT Operations to develop a go-forward strategy that seeks to ensure business operations are secure,functional and compliant with the regions requirements48Stryker2021 Comprehensive ReportGood businessStrykers team of cybersecurity experts follows leading industry practic
260、es and methodologies and leverages artificial intelligence and machine learning to provide state-of-the-art global cybersecurity protection.The team holds over 130 security,risk and compliance certifications.We have strong relationships with government partners,cybersecurity industry partners and se
261、curity researchers to enhance our cybersecurity profile across our highly regulated and controlled infrastructure for facilities,data and assets.Additionally,all Stryker personnel with network access undergo mandatory security education several times a year to better understand security risks and co
262、nfirm Policy compliance,including role-specific security and data protection training.Employees also receive frequent communications around pertinent security topics and policies throughout the year.As we acquire and integrate new businesses,our experts require cybersecurity and privacy assessments
263、on all third parties who integrate with Strykers data,network,systems and products.We also perform supplemental reviews commensurate with the risk associated with vendors,using a combination of our Security Operations Center and external tools.Business ethics and ethical marketingMaking healthcare b
264、etter means conducting all aspects of business ethically and lawfully.Our code of conduct,along with our code of ethics,is in place to support companywide compliance to this commitment.These documents establish policies and standards that guide employees,officers and directors in the performance of
265、their duties and responsibilities.Code of conductOur code of conduct applies to all employees,officers and directors of Stryker and our domestic and foreign subsidiaries.It is available in 23 languages on our website.Failure to observe our code of conduct or any other company policy may result in di
266、sciplinary action,including termination of employment where appropriate.Stryker employees certify to the code of conduct on an annual basis and undertake annual compliance training.In 2021,we launched a project to refresh our code of conduct to reflect our culture,mission and values and provide clea
267、r and practical guidance to empower employees in day-to-day decision-making.The updated code will focus on the core principles underlying our expectations around ethical conduct and include supporting materials that provide further explanation and examples in practice.49Stryker2021 Comprehensive Rep
268、ortGood businessCode of ethicsOur code of ethics applies to Strykers principal executive officer,president,principal financial officer,principal accounting officer and controller,and is supplemental to the code of conduct.The code of ethics addresses transparent reporting requirements and compliance
269、 with applicable laws and regulations.ComplianceAll of Strykers leaders and employees are responsible for compliance.The Global Compliance and Privacy team partners across the organization to reduce compliance risk and enable business growth by providing day-to-day guidance,tailoring the compliance
270、program to the prioritized risk and strengthening the shared commitment to ethics and compliance across the organization.During mergers and acquisitions,Strykers specialists work closely with local compliance officers and external advisors to evaluate potential acquisition targets and identify any b
271、usiness practices that dont currently align with our high ethical standards.Before the closing of a transaction,the compliance team partners with the Stryker business team to identify practices of the target that will need to be adapted after closing to meet Strykers expectations.The compliance team
272、 also onboards acquired companies into Strykers compliance program through education on compliance policies,implementation of Strykers compliance systems and completion of due diligence on third-party business partners.We continuously monitor integration progress to ensure all timelines are met and
273、processes have been established to escalate any identified risks to compliance leadership.Once complete,every integration is evaluated to identify potential areas of improvement for consideration in future projects.Advice and concernsStrykers ethics hotline provides multiple avenues to raise concern
274、s or allegations of non-compliance.Accessible via the web,telephone and SMS messaging,the hotline allows both employees and non-employees to report their concerns confidentially and anonymously,if desired.The ethics hotline committee has oversight responsibility for the hotline and receives regular
275、reports on key trends and critical issues.In October 2021,a global Integrity Matters week took place that focused on the important role of people managers in fostering a Speak Up Culture and supporting employees who 50Stryker2021 Comprehensive ReportGood businessraise ethical concerns.In addition,St
276、rykers compliance team partnered with other functions to create a framework to use lessons learned from investigations to implement process improvements or additional controls.The chief compliance officer provides the Governance and Nominating and Audit Committees of the Board of Directors a quarter
277、ly overview.Ethical marketing and salesIn our code of conduct,we explicitly state our commitment to accurately represent our products and services and comply with applicable regulatory and legal requirements governing their marketing and sale.Stryker also adopts the AdvaMed Code of Ethics and simila
278、r regional/local industry association codes as guidance for both internal sales force and indirect channel partners regarding ethical interactions with Healthcare Professionals(HCPs).Our Corporate Policy 5:On-Label Product Promotion provides further guidance and direction on our commitment by making
279、 it clear that our employees,contractors,consultants and other third parties acting on Strykers behalf may only promote our products for uses consistent with the label.Likewise,our Corporate Policy#12:Improper Payments addresses topics around appropriate interactions with government officials and HC
280、Ps.We distribute products through both our internal sales force and third parties or indirect channel partners.To maintain global excellence,we must ensure that anyone who sells Strykers products or represents the company exemplifies our mission and values.Our Indirect Channel Management(ICM)team pr
281、ovides global oversight,alignment and consistency in managing indirect channels(IC)across our geographic reach.This team maintains robust processes for sustainable growth and ensures that all IC partners operate to the highest professional standards required by Stryker.Additionally,our Global IC Gov
282、ernance Committee reviews and addresses restricted party decisions and manages the country entry and exit process.In 2021,we completed ICM program onboarding for all regions to adapt our IC business and governance model in a way that aligns with our growth strategy.51Stryker2021 Comprehensive Report
283、Good businessTrainingOur multilayered training and communication efforts focus on strengthening the shared commitment of employees,business partners and the company to business ethics.Initiatives in 2021 included:-Distributing our Global Integrity Matters newsletters to 33,000 employees in commercia
284、l entities worldwide and 5,000 Global Quality and Operations(GQO)employees quarterly.These newsletters are now available in 11 languages.-Circulating new principles-based anti-bribery and anti-corruption training to employees.-Continuing our Speak Up campaign with a Global Integrity Matters Week tar
285、geted to nearly 6,000 people managers.Themed“I listen,I care,I act,”the week included a series of virtual presentations,group sessions and a self-paced LinkedIn Learning path.The activities enhanced managers ability to listen to and act on concerns,create psychological safety for employees and suppo
286、rt a transparent investigation process.-Launching a new Lessons Learned initiative for business and functional leadership.Through Lessons Learned,leadership teams can review and consider ethical challenges faced in other parts of the company,while proactively driving functional improvements in their
287、 own areas.Human rightsStryker respects all peoples rights,values a diverse and inclusive workforce and is committed to treating all employees with dignity and respect.We expect employees and suppliers to maintain a workplace free of discrimination,intimidation and unlawful harassment.And we expect
288、our employees to report suspected or known conduct such as discrimination,harassment,fraud,unethical or unlawful conduct or retaliation.Our vice president and chief human resources officer oversees human rights policies and procedures for Stryker employees.52Stryker2021 Comprehensive ReportGood busi
289、nessProduct quality and safetyOur passion for product quality and safety stems from a companywide goal of creating better patient and caregiver outcomes.Our ability to deliver healthcare solutions that improve safety,efficacy,quality and efficiency creates a growth opportunity by allowing Stryker to
290、 maintain a reputation based on reliability and trust.This reputation is fundamental to our position as a global healthcare technology leader.Aligning closely with our mission and values,our Corporate Policy 9:Quality is how we define quality for employees working throughout our organization.We are
291、committed to meeting global regulatory standards,and we stand behind our products and address issues if they arise.To support this,we have a robust quality data program that includes key process indicators for different dimensions of quality.The data we gather through this program guides us in manag
292、ing day-to-day quality activities and is regularly reviewed with executive leadership.Quality PolicyAt Stryker,quality is first in everything we do.We are driven to make healthcare better for our customers by providing innovative products and services that meet regulatory requirements through our ef
293、fective quality system.53Stryker2021 Comprehensive ReportGood businessQuality management metricsU.S.FDA recalls2018201920202021Number of FDA Class I recalls1010Number of FDA Class II recalls42281728Normalized by revenue(Class I and II per billion dollars in revenue)3.21.91.31.6U.S.FDA Warning Letter
294、s2018201920202021FDA Warning Letters received0000FDA Warning Letters resolved0100Inspections2018201920202021Number of inspections by Notified Bodies and worldwide regulatory agencies94118138186Average findings per audit1.20.90.70.8Number of FDA inspections13624Average observations per inspection0.21
295、.20.00.8Number of internal quality audits conductedN/A*N/A*427497Number of corporate quality audits conducted30302629*Predates consolidated data for this metric54Stryker2021 Comprehensive ReportGood businessFor more information on our quality strategy,please see our website.Designing for qualityStra
296、tegic planning initiatives are tied to our quality planning program.To continually improve,we focus on strategies that will keep Strykers quality at the forefront of the industry while working with customers to make healthcare better.This starts with our new product development process,where we desi
297、gn for quality,manufacturability,serviceability and reliability.Throughout new product development,dedicated quality teams partner with design engineering teams to ensure that quality is baked into the entire product lifecycle.That lifecycle begins at manufacturing sites,where research and developme
298、nt teams focus early in the development process on designing for manufacturability and ensuring ongoing control of the manufacturing process.By putting controls in place during the first phase of development,we reduce rework and scrap,which also lowers manufacturing costs and waste.At the end of thi
299、s lifecycle,feedback from current-generation products is delivered back to the research and development teams to help them improve next-generation designs.Post-market surveillance Foundational to our quality management system is a continuous improvement program.At its core,continuous improvement is
300、designed to empower employees to solve challenges that they encounter in their day-to-day work.Creating this type of environment with employees enables a proactive versus reactive culture within our organization.Customer feedback is a valuable input to our product development and post-market surveil
301、lance process.We use what we believe to be a best-in-class complaint handling process to receive,evaluate and investigate customer complaints,as well as to track and interpret trends from post-market information.The output of these post-market processes informs a corrective and preventive action pro
302、cess for continuous improvement.Learn more about Strykers commitment to quality on our Global Quality webpage.World Quality Week In November 2021,more than 40 Stryker sites around the world came together to celebrate World Quality Weekand if they were lucky,got a visit from our quality mascot,the“Ko
303、ality Bear.”Throughout the week,leaders emphasized sustainability and the“Eight Wastes of Lean”to identify quality initiatives that could benefit Stryker.In-person and online activities,including a video competition,crossword competition,quiz and childrens poster competition,kept employees engaged a
304、nd raised awareness.55Stryker2021 Comprehensive ReportGood businessEight types of wasteTransportationInventoryMotionWaitingOver-processingOverproductionDefectsSkillsSupply chain managementOur supply chain centers on engagement with suppliers who share Strykers focus on quality and integrity.We seek
305、and support strong relationships with a diverse group of suppliers who operate ethically and lawfully with an emphasis on accountability for their people and performance.As the global pandemic disrupted an increasingly complex global supply chain,our procurement team responded by working closely wit
306、h suppliers to navigate supply constraints.Stryker invested in additional technologies and capabilities and created new roles to ensure supply chain continuity and resilience.We continue to collaborate with suppliers to help customers receive the products they need.Stryker formed the Procurement Cen
307、ter of Excellence in 2020,which includes resources dedicated to furthering supply chain transparency and supplier diversity,while initiating human rights and environmental assessments for targeted portions of our supply base,among other programs.In 2021,this team focused on developing a framework an
308、d capabilities to support our procurement team in addressing supplier ESG priorities.By the end of 2027,Stryker will engage suppliers on ESG performance assessments with the goal of covering 85%of our direct spend.56Stryker2021 Comprehensive ReportGood businessStrengthening our focus on supplier ESG
309、We strengthened supplier sustainability efforts by investing in our ESG assessment and monitoring capabilities,specifically in the areas of human rights and labor,environment,ethics and sustainable procurement.This included initiating third-party assessments and ratings among 24.9 percent of our key
310、 direct suppliers and initiating self-assessments with an additional 129 suppliers.The results from these assessments are guiding us to identify priority impact areas where we can engage with our suppliers to build upon their capabilities and performance.We will also consider these findings as part
311、of our procurement decisions and strategies.Conflict mineralsAligning with our value of doing whats right,we support the responsible procurement of all materials that go into our products.These include tin,tantalum,tungsten and gold(3TG)that may come from the Democratic Republic of the Congo and sur
312、rounding nations.We maintain a Conflict Minerals Policy and provide updates on these efforts in our Conflict Minerals Report,filed annually with the SEC.Additionally,we are members of the Responsible Minerals Initiative,whose mission is to unite industry in these efforts and provide companies with t
313、ools and resources to make decisions that improve regulatory compliance and support responsible procurement from conflict-affected and high-risk regions.Supplier code of conductOur supplier code of conduct communicates our expectations for suppliers in key areas including:-General business and ethic
314、s-Human rights-Labor and employment-Health,safety and environment-Intellectual property and dataStrict adherence to the code is required for any supplier doing business with us.We updated the code in 2021 to clearly communicate our expectations with suppliers in additional areas of ESG best practice
315、s.Our procurement team completes an annual supplier code of conduct training to ensure they can assist suppliers in meeting our expectations.In 2021,99.7 percent of the team completed this training.We also require that Stryker employees who most frequently visit or interact with suppliers complete a
316、nnual training on the prevention of forced labor and human trafficking in our supply chain,which educates them on risk factors,indicators and reporting methods.In 2021,98.7 percent of these employees completed training.For additional information on our efforts in this area,please see our most recent
317、 disclosures specific to the U.K.Modern Slavery Act of 2015 and the Australian Modern Slavery Act of 2018.57Stryker2021 Comprehensive ReportGood businessSupplier diversityAs we strengthen our global supply chain,were focused on creating a competitive advantage by working with suppliers who reflect t
318、he diversity of our employees,the communities where we work,and the patients and caregivers that our products impact.Specifically,we are committed to increasing representation of minority-,women-,veteran-,disability-and LGBTQ-owned businesses and small businesses.Within these groups,we work to ident
319、ify highly qualified suppliers that are agile,innovative and responsive,which helps us move faster in new product development and accelerate value to our customers.Overall,our strategy aims to expand the reach of our supplier diversity efforts and embed supplier diversity considerations across the b
320、usiness,rather than solely in procurement.Our Supplier Diversity Councilcomprised of senior leaders from across the companyoversees the implementation of our strategy while developing aligned commitments for their functional areas.The council is committed to building awareness;identifying,retaining
321、and growing current diverse suppliers;and identifying new diverse suppliers with potential to support future opportunities.To further reinforce these efforts,in 2021 our leadership released a global expectation that procurement managers seek and consider qualified diverse suppliers for new business
322、opportunities.We support this expectation by making it easier for team members to find diverse suppliers within our procurement systems and through engagements with local and national diversity organizations,such as the National Minority Supplier Development Council,the Womens Business Enterprise Na
323、tional Council and,as of 2021,Disability:IN.Supplier quality management Suppliers with potential to impact quality are managed through our quality-controlled approved supplier list and are classified by category and risk.We work with suppliers early in the engagement process to foster strong connect
324、ions with a shared focus on quality and continue to engage throughout the life of our supplier relationships.Supplier performance is measured both in the short term,for product quality,and in the long term,for overall capability.Our assessment of a suppliers quality risk shapes both the approval and
325、 onboarding process.The approval process may include an assessment of a suppliers capabilities,an initial audit,regulatory certifications and supplier agreements,based on a suppliers risk.Stryker enters into quality agreements with suppliers that focus on quality,change control and communication exp
326、ectations,in addition to definitions of roles and responsibilities,and applicable standards and legal requirements.2021 North America spend$255Mwith diverse-owned businesses$800Mwith small businessesSupplier diversity goalWe are committed to increasing representation of minority-,women-,veteran-,dis
327、ability-and LGBTQ-owned businesses and small businesses in our supply base through purposeful consideration in our procurement strategies and contracting opportunities.58Stryker2021 Comprehensive ReportGood businessWe set expectations with all product and service suppliers for controlling quality-im
328、pacting changes.Suppliers who propose a quality-impacting change use change control communication tools to ensure proper and timely communication,undergo a change review board approval and prioritization process,and collaborate with Stryker on project planning and execution.Our global supplier quali
329、ty team is responsible for monitoring compliance with regulations and standards such as ISO 13485.We track supplier quality performance through data analytics and key performance indicators leveraging our Supplier Monitoring and Quality Performance Review(QPR)process,which subjects suppliers to audi
330、ts tracked in our Supplier Audit Management system.Our QPR tool tracks product and audit nonconformances,corrective and preventive actions,product field actions,supplier defects per million and non-conformances that are not in Strykers control.Based on the results of the monitoring and the QPR revie
331、w,we take additional actions to improve quality performance.In addition to the QPR process,regular process and quality system-based audits on high-risk suppliers drive improvements while also monitoring compliance,quality expectations and sub-tier supplier management.We also perform for-cause audits
332、 on suppliers identified through the supplier quality performance review.In 2021,we completed approximately 1,100 supplier quality audits.Through our supplier quality improvement program,we work with suppliers to improve their quality culture,processes and metrics.59Stryker2021 Comprehensive ReportG
333、ood businessHealthier planet60Stryker2021 Comprehensive ReportOperational impactOur company is working to create a better,healthier worldand the connection between human health and the health of our planet is clear.People need safe,livable environments that arent threatened by increased risk of fires or floods.They need food and water security and access to clean air.To make a significant impact i