Stryker Social Responsibility Overview

2009
Stryker Social Responsibility Overview
Our Commitment
At Stryker, we are committed to:
•Our customers and the patients they serve — we will provide them with
safe and effective products, and strategies for improved clinical efficiency.
•Our employees — we will provide them with a great workplace that is
inclusive and rewards acting with integrity.
•Our communities — we will support those in need where we live
and work.
•Our environment — we will use natural resources wisely and protect
the environment.
•Our shareholders — we will govern our company in an ethical and
transparent manner.
1
A Message from Our President
and CEO, Steve MacMillan
We are pleased to present Stryker’s first publication discussing our corporate
social responsibility activities. Historically, Stryker’s public reporting has
focused primarily on our financial performance. We have more quietly gone
about the other aspects of our business — our design and manufacture of
innovative products that help caregivers restore health to patients, the
exceptional service we provide to our customers, the top talent we hire and
develop, our respect for the environment, and our philanthropy.
The importance of these aspects of our business is clear to us and to our
stakeholders. We know that people care about how Stryker acts as a corporate
citizen, and we know that dialogue on these issues generates opportunities for
improvement. As a result, we are increasing our communication
inliquidity
this
area,
review of our
In a year where
and cash
flow wereand
vital, ourthis
free
cash flow grew a healthy 22%, and exceeded $1.0 billion for
the first time ever. Whileand
our earnings
growth fell short of Our sales and earnings
activity opens the dialogue with our customers, investors, employees
others.
the 20% we were aiming for at the start of the year, our sales
and earnings performance still ranked at the very top despite
performance still ranked at the
very top, and we achieved
these challenging times.
Stryker is a global medical technology company with over 17,000
employees.
We
to make
a year of doubleFor perspective,
we invested over $50 million
morestrive
than
our eighth
straight
budgeted in quality and compliance initiatives. Importantly,
we couldefficient,
have delivered the original
20% goal by taking
an digit revenue
growth. and
difference by partnering with our customers to help them run
effective
healthcare
systems
action that many companies took in 2008—by eliminating
the Company’s discretionary contribution to our 401(k)
ultimately give active and healthy lives back to their patients.
don’t
just
“products” — we make
plans,We
which provide
retirement
benefitsmake
to our U.S. employees. In an era where many big companies risk undermining We are also very proud of achieving an eighth straight year
employee loyalty for short-term gain, and at a time when the of double-digit revenue growth. To put this accomplishproducts and we provide services that help people.
hard-working middle class in America is facing greater challenges, we are confident this decision will pay off in the years
ment into perspective, it appears that only around a dozen
companies in the Fortune 500 have achieved this goal for
through the continued loyalty and hard work of our eight consecutive years—putting us in a very select group.
Our business is built on sustainability — making long-termahead
contributions,
in toadeliver
responsible
to our
teams.
While we certainly feel the pressures
in the Furthermore, weway,
are one of only two manufacturing comshort term, we also continue to manage the Company for the panies on this list, and the only healthcare manufacturer. In
long term, and hope you
support us
decision.
customers and their patients, to our employees, to our communities
and
toin thisour
shareholders.
a period when many manufacturing industries face great
challenges, we think this accomplishment reflects the hard
work of our teams around the world.
We have a broad range of product and service offerings, global locations and a diverse workforce. This
means that we have different types of activity within our business and, therefore, different ways in
which we demonstrate socially responsible behavior. We believe that decisions about our business and
social responsibility should be made by the people in our business who are closest to our customers and
communities. Regardless of the product, location or employee involved, our global commitment is
to design, manufacture and sell safe and effective products, and to conduct our business with the
highest level of integrity.
490494.P.CS3.indd 3
This review describes various activities at Stryker and shows the breadth of our approach to social
responsibility. In over 60 years of business, we have focused heavily on our workforce and our products,
with a substantial amount of philanthropic activity as well. We will continue to focus on those areas as
part of our commitment to social responsibility.
We are using 2009 and 2010 as our timeframe for collecting data and setting specific goals in key areas
of social responsibility. We will seek to adopt and expand socially responsible strategies that support our
business goals, and will engage in dialogue with our customers, employees, communities, investors and
others who count on Stryker in order to improve our achievements in the realm of social responsibility.
We look forward to achieving our goals and reporting on our progress.
As a healthcare company, we understand the trust placed in us. Delivering on that trust is what social
responsibility is all about. As a leader in medical innovation, we are deeply committed to earning that
trust in all that we do. Our ongoing commitment is to continue our efforts to make our company, our
employees, the healthcare professionals and facilities we serve, and our global community better for
future generations.
We welcome your comments and suggestions.
You may direct your comments and questions
concerning social responsibility at Stryker to [email protected].
2
3
2/26/09 9:05:09 PM
Table of Contents
Page Number
Company Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Who We Are and What We Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Our History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Our Products — Stryker’s Commitment to Quality and Innovation . . . . . . . . . . . . . 6
Product Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Product Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Our Products Promote the Health of Patients and
Healthcare Professionals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Our Products Contribute to Healthcare System Efficiency . . . . . . . . . . . . . . . 10
Our Commitment to Professional Medical Education . . . . . . . . . . . . . . . . . . . . 11
Our Employees — Stryker’s Commitment to Our People . . . . . . . . . . . . . . . . . . 13
Our Commitment to Our People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
The Right Fit — Our People and Our Values . . . . . . . . . . . . . . . . . . . . . . . 14
An Inclusive Culture at Stryker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Our Commitment to Community Support and Philanthropy . . . . . . . . . . . . . . . 18
Our Commitment to the Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Our Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Our Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Our Commitment to Ethics, Compliance and Governance . . . . . . . . . . . . . . . . . 24
Our Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Appendix A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Our Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Company Profile
Who We Are and What We Do
Stryker is one of the world’s leading medical technology
companies with the most broadly based range of products in
orthopaedics, and a significant presence in other medical
specialties.
We work with medical professionals and healthcare
providers to help patients regain healthy and active lives.
The Company’s products include implants used in joint
replacement, trauma, craniomaxillofacial and spinal
surgeries; biologics; surgical, neurologic, ear, nose & throat
and interventional pain equipment; endoscopic, surgical
navigation, communications and digital imaging systems;
as well as patient handling and emergency medical
equipment. For more information about Stryker, please see
our list of representative products in Appendix A, or visit
http://www.stryker.com.
Stryker is a Fortune 400 and BusinessWeek Top 50 company
with a record of strong growth. Stryker’s sales have increased
from $17 million in 1976 to $6.7 billion in 2008 — a 21%
compounded annual growth rate. We have delivered 25%
compounded annual net earnings growth during that same
period. Stryker is traded on the New York Stock Exchange
under the symbol SYK.
Headquartered in Kalamazoo, Michigan, Stryker operates
through 12 manufacturing and distribution divisions
that employ over 17,000 people in 120 countries around
the world.
4
Our History
Dr. Stryker’s desire for improved patient outcomes and
clinical efficiency served as the catalyst for him to form our
company. As the Company’s product lines became more
diverse, Dr. Stryker insisted that each product accomplish at
least one of his key goals: improve patient outcomes,
improve the efficiency of the caregiver or reduce the cost of
providing treatment.
Stryker’s commitment to providing our customers with safe
and effective products and strategies for improved clinical
efficiency is deeply rooted in our history. Dr. Homer Stryker
founded the company in 1941, which allowed him to
combine his lifelong passion for precision technology with
his understanding of how surgical procedures could restore
quality of life. Dr. Stryker suffered a farm accident as a
young boy in Athens, Michigan, which left his dominant
hand severely injured. Over the course of several surgical
procedures, Dr. Stryker’s range of motion was greatly
restored. The experience left him with an appreciation for
how doctors restore function to the human body, and the
importance of design and manufacture in creating high
quality equipment.
In the words of Ronda Stryker, Dr. Stryker’s
granddaughter and a member of
Stryker’s Board of Directors, “My grandpa
was innovative and took risks. He was
always trying to improve what he had and
cared more about helping people than he
cared about the money he made.”
In his orthopaedic surgical practice, Dr. Stryker saw great
need and room for improvement in medical products — he
determined that medical products were less effective than
they could be in terms of meeting patients’ needs and
improving caregiver efficiency. Among other products, Dr.
Stryker invented the “turning bed” and the cast cutter,
products that accomplished desirable clinical outcomes, and
reduced the number of healthcare personnel involved in
delivering care.
Today, the goals of Dr. Stryker continue to guide our
Company. We are committed to producing products that
restore health to patients and support the effectiveness and
efficiency of the entire team caring for each patient. We hire
people who share our commitment, and we serve customers
who have a mission strongly aligned with ours.
The principles Dr. Stryker embraced are the firm foundation
of our past success, and we believe they will continue to
serve as the basis for the future success of our Company.
Dr. Stryker demonstrates the Circ-O-Lectric
bed, which he introduced in 1957.
Revolutionary for its time, Dr. Stryker noted
that the bed “allowed and encouraged a
patient to do more for himself and also
enabled the nurses to do more for the
patient.”
5
Our Products — Stryker’s
Commitment to Quality and
Innovation
Designing new products and manufacturing them to the highest quality
standards is the essence of Stryker’s commitment to patients and those who
care for them.
Product Quality
Hospitals, physicians, surgeons, emergency medical
personnel and other healthcare professionals use Stryker
products to restore health and wellness to people. Our
customers count on Stryker to deliver products of the
highest quality, and we do our best to earn their trust.
Stryker’s internal quality standards are high, and our
products are required to meet the rigorous standards of
regulatory bodies around the globe. As Stryker has grown in
size and the breadth of our business has expanded over the
past 60 years, we have developed quality systems for many
of our products and manufacturing facilities.
We have adopted in recent years a more coordinated global
approach to quality and established a corporate-level
executive position to lead our efforts in this area. Our goal
is to bring all of our divisions to the same level of quality
excellence, so that our products offer the best possible
results to our customers and their patients.
Making top-quality products is just one aspect of Stryker’s
commitment to quality. Our product training and service
activities are also expressions of our commitment to quality.
We educate healthcare professionals concerning the safe and
effective use of our products, and we provide that education
knowing that it is critical to successful patient outcomes. We
have robust training programs to accomplish this goal at a
number of learning centers around the globe.
We have invested considerable resources and energy to
develop more robust systems for documenting, investigating
and remediating deficiencies in our quality systems. Quality
is closely managed within our manufacturing divisions,
where the people closest to the products can ensure that we
meet all applicable quality standards. We look to preserve
the benefits of a decentralized approach to production,
while gaining more assurance that consistently effective
quality systems are in place throughout the company.
To ensure that the service we provide to our customers is of
the highest possible quality, we educate our employees in
extensive product training programs and encourage them to
attend live surgery to understand more fully how skilled
medical professionals use our products.
Stryker considers product quality, performance criteria,
price and other factors in the selection of our suppliers, and
we are incorporating additional quality standards going
forward. Stryker’s manufacturing divisions regularly
perform supplier audits, and this will continue to be an area
of focus in our drive to improve quality.
6
Product Innovation
The Stryker Global
Technology Center
(SGTC) has the crucial
mission of helping our
divisions to propel
innovation in medical
technology to reduce
costs while raising
quality. The SGTC is
strategically located in
India because of the
availability of technical
talent in a growing
market.
Our Research and Development (R&D) teams at each
manufacturing division are at the center of product
innovation at Stryker. Our R&D teams engage extensively
with customers and thought-leading experts to understand
how new and improved products can enhance patient
outcomes, caregiver safety and the efficiency of the
healthcare delivery system. Stryker engages surgeons and
other healthcare professionals to advise us on the design,
material composition and other aspects of many of our
products. We also retain these professionals to assist us as
we educate our sales force and new customers so that our
products are used safely and effectively.
Currently in some Stryker divisions, and soon in all
divisions, we formally survey our customers periodically,
and in all of our activities globally, we solicit and encourage
informal feedback from customers. The feedback we receive
is used throughout the Company to improve the quality,
safety, effectiveness and efficiency of existing products, and
to stimulate our development of new products. The shared
goal for our customers and for Stryker is optimal patient
outcomes.
Few locally educated engineers have direct training
in medical technology, giving Stryker the opportunity
to develop our own leaders. We are investing in
India’s best engineering talent through a network of
Stryker mentors and by providing education and
leadership development training in collaboration with
Stanford University, the Indian Institute of Technology
and the All India Institute of Medical Sciences.
The SGTC also attracts engineering leaders who
have had U.S. experience. Amit Guliani, an
electronics engineer, earned a U.S. graduate degree,
and Sathiya Prabaharan, a mechanical engineer,
worked at a U.S.-based Stryker division before
returning to India. Both point out that while India has
a constrained economy, its people want the highest
quality healthcare — a powerful motivation for
everyone at SGTC.
Stryker is dedicated to innovation and continuous improvement on behalf of our
customers and their patients. No one exemplifies this spirit better than Ray Umber,
Ph.D., business development manager at Stryker Neuro, Spine & ENT. Dr. Ray, as he
is known by his Stryker colleagues, has devoted his career to developing and
perfecting air drills for neurosurgery procedures.
Thanks to Dr. Ray, our Maestro Drill provides greater power at lower pressure so that
neurosurgeons can cut through bone quickly and precisely. The drill protects the
brain tissue beneath the bone and keeps the surgeon’s hand from tiring before the
delicate work begins.
Today, Dr. Ray spends much of his time training surgeons to use our neurosurgery
instruments effectively. In hands-on workshops, he gauges their ability to use the
Maestro Drill by having them cut away the shell of a fresh egg — and leave the
membrane intact. The vast majority of surgeons fail the egg test on their first try. But,
Dr. Ray notes with satisfaction, with practice they gain the control and confidence
to succeed.
7
A Proven Design, Refined
Our Products Promote the Health of Patients and Healthcare
The Stryker S3 is based on the patient platform that is preferred by
Professionals
more hospitals than any other, the Secure line of hospital beds. Years
We design and of
manufacture
our and
implantable
to
refinement
input products
from caregivers
have evolved the Stryker S3
return and sustain healthy, active lives to our customers’
into the med/surg bed that makes everyday care safer and easier for you
patients. We design these implants to be long-lasting, and we
your
have decades ofand
clinical
datapatients.
to support their safety and
Stryker introduced the Exeter
efficacy. We also look to sustain patient health andStryker
minimizeS3 is safe. Reduce the risk of falls with iBed™ Awareness
®
and the Chaperone® Bed Exit System. iBed Awareness
your smart
Totalmonitors
Hip System
almost
40
surgery through technologies, such as hip resurfacing,
which
bed configurations, displaying amber or green indicators.
Theand
Chaperone
years ago,
this product
delay and may eliminate the need for hip replacement.
Bed Exit System monitors three zones, activating an alert when the patient
continues to provide patients
moves out of position. Chaperone is so effective that Stryker provides a
We design many Stryker products to reduce risks to the
with excellent clinical results.
performance-based guarantee, pledging a fall reduction of at least 30 percent
healthcare professionals who use them, enhancing within
and the first year of use.
sustaining employee health and safety at our customers’
Stryker S3 is simple. Each control is intuitive, easy to access
hospitals and healthcare facilities.
BackSmart design makes
and out of the way of bedside stands and other hospital equipment. Highvisibility data screen and one-touch scale provide information at a glance.
The open architecture of the Stryker S3 accepts any 35 x 84-inch support
surface including those for patient positioning, pressure redistribution, and
pulmonary therapy. It accepts almost any form of traction, and is compatible
with the vast majority of nurse call and networking systems.
Stryker recently
received
a Medical
Design Excellence Award (MDEA)
everyday
tasks safer
and easier.
Stryker
S3 is secure. Be everywhere at once and know the
The Stryker
S3 bed
from the Medical
Device
andreduces
Diagnostic Industry
magazine for our S3
status of all patient beds with Stryker S3. Stryker S3 can be a part of a
risk ofhospital
injury withbed.
siderails
medical-surgical
Thethat
S3 bed was
recognized
for its
Connected
Hospital® system
that links beds, to patients, to caregivers, to
have to
an improve
intermediate
supportoutcomes
mobile
using an
cost-effective system. This
safety, its ability
patient
anddevices
its ability
toopen-architecture,
improve
remote monitoring of Stryker beds in real time from multiple
for patient
the efficiencyposition
of nurses
and assistance
other healthcareenables
professionals.
during bed entry and exit.
locations, especially a nursing station, as well as instant notification of
a change in status.
Retractable Bed Frame Exclusive retractable frame allows proximal location to remain
essentially unchanged when the head of the bed is raised, reducing the need for
patient repositioning.
The Stryker S3 bed is truly safe and secure as it monitors the patient’s position
in three zones and 30-degree Head Of Bed angle to reduce the risk of ventilatorassociated pneumonia. The Stryker S3 offers one-hand operation of siderails,
center-mounted brake, one-touch in-bed scale and superior ergonomics to
reduce bending and twisting that can injure caregivers.
8
Backsmart
With hospital staff back strain and injuries rising due to the physical demands of patients who are heavier and older, Stryker
designed Backsmart beds, stretchers and surfaces. These products reduce or eliminate tasks that can cause strain or injury to
the back, arms and shoulders. Backsmart products aid caregiving, improve safety and enhance healing.
Power-Pro
Power-PRO XT EMS cot features Stryker’s battery powered
hydraulic lift to raise and lower patients with the touch of a
button, thus reducing back strain and ergonomic issues for
healthcare workers.
Flyte, T5 and Steri-shield
products — At Stryker, we’ve
devoted 15 years to pioneering
research and development in
personal protection for medical
environments. The Flyte Suit
combines superior comfort and
support with high levels of protection
against contamination, exposure to
infectious bodily fluids and transfer
of microorganisms and particulate
matter. In addition, the Flyte Suit’s
integrated illumination and
communication features provide
cutting edge enhancements aimed
towards improving the surgical
environment.
9
Neptune 2
The Neptune 2 waste management system collects and disposes of surgical waste without
operator assistance. It prevents contact with infectious fluids and surgical plumes and
minimizes risk to healthcare workers.
Our Products Contribute to Healthcare System Efficiency
Stryker designs many of our products to improve hospital and operating room efficiency by reducing time in the operating
room. This reduces surgery time, which is better for the patients and allows for more efficient hospitals. In a hospital
operating room equipped with Stryker i-Suite products, medical professionals can manage a complete system of Stryker
products and technology through a simple interface, programming the setup of the operating room for a wide range of
surgical procedures, allowing the use of the room to be quickly changed for maximum efficiency.
Stryker’s voice activation and device control products combine centralized control over operating equipment without
sacrificing flexibility. Surgical teams can use the centralized touch panel, hand-held tablet or voice recognition to control a
wide range of surgical equipment. Our navigation products provide streamlined software solutions that allow surgeons to
accurately track, analyze and monitor instrumentation relative to a patient’s anatomy during surgical procedures. Each
computer-assisted software package focuses on procedural simplification, open platform solutions and workflow flexibility to
meet the demands of specific surgeons.
Stryker software tools cover a range of
applications which allow for preoperative planning that increases
surgeon efficiency and improves patient
outcomes (computed radiography and
digital radiography software products,
patient archive systems, electronic
medical records, and practice
management software).
10
Our Commitment to Professional
Medical Education
Stryker’s support of professional education for healthcare professionals
improves patient outcomes around the globe.
Stryker supports the education of
healthcare professionals to ensure that
they are able to continuously improve
patient outcomes through the safe and
effective use of products (regardless of
whether they are Stryker products or
those of other companies). Stryker’s
support is provided directly and
through grants to third parties. The
Orthopaedic Research and Education
Foundation, the American Association
of Orthopaedic Surgeons, the
Advanced Cranio-Maxillofacial Forum
(ACMF), the Congress of Neuro
Surgeons, and the Physicians Training
Partnership are among those who
receive financial support from Stryker
to conduct professional education.
The Homer Stryker Center’s education philosophy is to take an integrated approach
to comprehensive learning through a global education network.
Training Centers
Stryker provides professional medical education at locations
in New Jersey, Japan, Hong Kong and Germany.
Stryker’s support of industry associations allows for
many professional education opportunities, including
continuing medical education courses, surgical symposia,
lecture series, hands-on workshops, cadaver training, and
resident training.
In 2007, Stryker opened the Homer Stryker Center, which is
located on the Mahwah, New Jersey campus of our
Orthopaedics product division. The Homer Stryker Center
offers an internationally recognized faculty and interactive
learning processes that focus on skill development with
cadavers, as well as simulated models. This state-of-the-art
facility features the following:
Stryker also supports the Ruth Jackson Orthopaedic Society,
which fosters the inclusion of women in orthopaedic
medicine, fellowships and research pathways, and the J.
Robert Gladden Orthopaedic Society, which supports the
inclusion of underrepresented students in orthopaedic
medicine and research.
• Surgical simulation lab
• Bioskills development lab
• Multi-purpose classrooms and meeting rooms
• Tiered lecture hall
• Innovation center
• Medical library
• Medical writing and editing support center
11
The Homer Stryker Center provides a full curriculum of skill
development programs and technology-based symposia.
Surgeons from around the world can access on-site content,
distance learning and web links to the Center’s programs.
The dynamic curriculum includes educational experiences
that focus on a full range of important orthopaedic and
other issues. The Global Education Advisory Board for the
Homer Stryker Center provides us with valuable insights on
the education needs of healthcare professionals, and its
members serve as faculty at the Homer Stryker Center.
Web-based education
Interactive Hyperguide web sites serve as educational
resources for orthopaedic and craniomaxillofacial residents
and surgeons. The Hyperguides are non-commercial,
scientific and educational initiatives supported exclusively by
an educational grant from Stryker. The sites include online
lectures, clinical tutorials, surgical videos and thousands of
pages of Board-reviewed material authored and edited by
renowned experts in the fields of orthopaedics,
otolaryngology, head and neck surgery, plastic surgery, oral
and maxillofacial surgery, and neurosurgery. With a database
of more than 3,300 test questions, the Orthopedics
Hyperguide provides excellent practice for the Board exam
or recertification. The CMF (Craniomaxillofacial)
Hyperguide is endorsed by more than 20 scientific
associations around the world, with more than 150,000
registered users.
Students at Stryker’s NSK Training Center in Shinagawa,
Tokyo, Japan.
12
Our Employees — Stryker’s
Commitment to Our People
We are committed to our people — they reflect the values of Stryker and they
deliver on our promise.
Our Commitment to Our People
Stryker’s 17,000 employees worldwide carry out our commitment to social
responsibility. We hire people who share Dr. Stryker’s vision for improving
patients’ lives, and improving clinical efficiency and effectiveness. Our employees
understand how Stryker’s mission supports the work of our customers, and how
important that work is.
“Right now, I’m looking at some Stryker business cards on
my desk and know that I can count on each of these
people…The interesting part is that Stryker’s systems work
so well, I usually don’t need to track anyone down.” Dr.
Arlen Denny, Medical Director of Plastic and Reconstructive
Surgery and Director of the Center for Craniofacial
Disorders at the Children’s Hospital of Wisconsin
We expect a lot from our employees, and they know that our customers are
counting on them. Stryker is committed to providing a safe and inclusive
workplace, strong benefits, services, compensation and personal growth
opportunities for our employees in return for their commitment to Stryker and
our customers.
We continuously seek to customize our compensation and employment programs
to improve our employee total rewards and better serve our employees and their
families. We offer comprehensive benefit packages, and we provide a wide range of
learning opportunities to our employees, including a tuition reimbursement
program, mentoring programs and leadership academies, often in partnership
with professional and academic institutions. We offer a comprehensive employee
assistance plan, and we understand and support our employees’ need to integrate
their work and personal lives. For a description of our benefits and careers
programs, please see http://www.stryker.jobs.
Stryker supports our employees in their volunteerism efforts. In many cases, we
provide employees with paid time off for their volunteer activities. Employees
serve a variety of roles in community and charitable organizations, and Stryker
often supports volunteer efforts with product donations or financial contributions.
Stryker also supports our employees who serve in the military, whether they are
on active duty or in a reserve capacity. Our U.S. employees who serve in the
National Guard and Reserves nominated Stryker for the Defense of Freedom
Award in both 2008 and 2009 for our support of them and their families.
13
A firefighter who had two Stryker knee
replacements and regained his mobility
recently spoke to Stryker employees and
told us, “When someone asks you what
you did today, you can tell them that not
only did you help someone walk again,
but you helped him fight fires and save
many other people from harm.” (Captain
David Sumpter, Stryker knee surgery
patient)
The Right Fit — Our People and Our Values
Stryker hires people who share the Company’s passion for making a difference in
the lives of patients. We seek applicants from a wide variety of sources, and we
value inclusion in the workplace. In our hiring process, we assess an applicant’s
talents through interviews and tools we have developed in partnership with The
Gallup Organization over the past 15 years. Our recruiting team identifies the best
candidates who are a good match for our culture and embody the particular
strengths and expertise we associate with success at Stryker.
Stryker recruits on university campuses and has internship and cooperative
education programs to expose students to Stryker and provide an opportunity for
them to consider a career with us.
We strive to provide job applicants with an accurate picture of what it’s like to
work at Stryker, through our careers web site (http://www.stryker.jobs). We use
social networks, digital media and other tools to engage candidates and create
referral networks, as current employees are our best talent scouts.
At Stryker, we solicit input and feedback from our employees through a variety of
formal and informal means, including an annual, anonymous employee
engagement survey. Managers use the survey results to develop action plans with
their employees, to improve employee engagement and satisfaction.
In 2009, The Gallup Organization recognized Stryker for the third consecutive
year with the Gallup Great Workplace Award, an honor awarded to companies
with the most engaged and best performing workforces in the world. We strive to
continue to make Stryker a great place to work and to create an inclusive and
ethical work environment filled with talented people who contribute to our
success.
Stryker was proud to support a
medical mission in which Sharon
Brown, vice president and
general manager of our U.S.
Trauma business, accompanied a
U.S. surgical team to Tanzania,
Africa. This was Sharon’s second
mission trip to Tanzania, and she
brought donated products from
Stryker to help children with
deformities walk again. Sharon’s
experience had a profound
impact − not just on the patients
treated, but on her and others at
Stryker who want to be
connected to a company that
serves the greater good. As
Sharon remarked, “I witnessed
children’s lives change
immediately. The most important
thing is how many patients
benefited from Stryker’s
generosity and compassion.”
14
“The reason that Stryker is a great place
to work is that in my 24 years here, I
focus more and more on customer
service…everything I do here impacts a
human being. Whenever I hear a
recipient of our products tell their story, it
just reinforces the fact that what we all
do is nothing short of astonishing. There
are other reasons such as the 401(k),
the Employee Stock Purchase Plan,
excellent health coverage for us and our
families. But to me, none of these
compare with giving back to someone
their quality of life. I’m hoping to
continue what I do for another 24 years
with a great company, Stryker.” (Marco
Binetti, Team Member, Manufacturing
Hip Instruments & Cutting Tools Team,
Orthopaedics division)
When we combine our diverse candidate
pool with our focus on identifying success
factors, we are able to hire great employees
who can contribute to Stryker’s success.
We seek people who will approach an
opportunity or problem from a variety of
backgrounds, experiences and cultures and
share a passion for achieving great results
with integrity, responsibility and
accountability.
Reinforcing our Values through Leadership
At Stryker we have conducted formal leadership
development programs for over ten years. In these courses,
managers analyze our success in communicating and
living Stryker values. Stryker case studies are used, with
a view toward reinforcing our values when managers
make decisions.
The Stryker Harvard Leadership Academy:
Our emerging and
senior leaders
attend Strykercustomized
programs at the
Harvard Business
School. This
intense course of
study takes
selected leaders
and exposes them
to broad leadership
practices, using
lectures, case
studies and an
action learning
component composed of real Stryker business
issues (including diversity and inclusion
leadership, as well as corporate social
responsibility). Experienced, global mentors from
throughout Stryker work with the program and
model top leadership behaviors.
In 2008, BusinessWeek ranked Stryker
number 114 on its list of the Best Places to
Launch a Career.
Stryker is committed to conducting its affairs ethically and
legally. Our new hires receive a comprehensive orientation,
which includes information about our Company history,
culture, mission, values and product offerings, as well as our
commitment to quality, ethics and compliance.
All new employees receive training on Stryker’s Code of
Conduct, and we conduct annual refresher training for all
employees. We review the Code of Conduct in detail and
clearly establish our expectations for employees to act with
a high level of ethics and integrity in all that they do.
Employees are encouraged to raise any concerns they have
with their managers. We also introduce the Stryker Ethics
Hotline at orientation, and employees are encouraged to
contact the Compliance office through the Hotline if they
ever need to report a violation of ethics or compliance.
Stryker managers and our Compliance office take
appropriate steps to investigate and resolve all compliance
and ethical issues raised by employees or others. (Please see
pages 24 and 25 of this report for more detailed information
on Stryker’s commitment to ethics, compliance and
governance.)
Globalization is a key driver for Stryker’s growth,
and our Harvard leadership program is one way
we foster global strategy and activity. This
program allows our leaders who hold various
positions and work in locations around the world
to broaden their understanding of the Company
as a whole, to build relationships outside of their
everyday work and to learn from faculty and each
other how Stryker can become even stronger.
Stryker’s co-op students at the Orthopaedics
division participate in semi-annual fairs that give
them a chance to describe their work experience to
our employees. “My favorite thing about Stryker is
that everyone supports you as a co-op. They really
make you feel like you’re part of the team.” (Melissa
Troop, Hip Marketing Co-op, and Penn State
student)
As we continue to make progress towards
building a fully inclusive workplace, we have
increased the number of women participants in
the Harvard Advanced Leadership Program to
22% of attendees, and we have a 94% retention
rate for women attendees of this program.
15
An Inclusive Culture at Stryker
Stryker is committed to encouraging and leveraging differences in people and perspectives. The varying backgrounds,
experiences, education, beliefs, skills, cultures and abilities of our employees provide Stryker with many perspectives as we
seek to achieve our goals.
We believe at Stryker that a highly inclusive workplace = highly engaged employees =
highly engaged and loyal customers.
Stryker has taken steps to weave our
values of inclusion and diversity into
every aspect of our employment
practices: candidate recruiting and
attraction, hiring, employee
engagement, employee benefits/
services and employee development.
Each division of Stryker recruits with
diversity in mind, and maintains
relevant metrics to indicate the
diversity of its workforce. Inclusion
activity is reflected in our performance
appraisals and leadership standards.
Women professionals and managers
have grown to one-third of our entire
workforce, and the number of women
in sales roles has nearly doubled since
2001. Stryker is experiencing nearly the
same turnover rates for men and
women in our workforce. Stryker maintains relationships with disabled veterans
associations to ensure that these potential employees are aware of and
encouraged to apply for jobs at Stryker.
Stryker’s Global Technology Center
team, based in Gurgaon, India, gathers
for a team building event.
Our Kalamazoo-based sites join together on an annual basis to hold a Stryker
Inclusion Awareness Conference, focusing on the business case for inclusion,
perspectives on incorporating inclusion deeper into the fabric of our culture and
tools to build a more inclusive work environment.
Diversity and inclusion has been a focus for Stryker’s Board of Directors, not
only concerning our progress in employee diversity and in creating an inclusive
culture, but in Board composition as well. In the 2008 Catalyst Census of Women
Board Directors of the Fortune 500, Stryker joined the elite list of corporations
with 25% or more of its Board seats held by women.
“We hire talented people from different cultural and educational backgrounds. Quality
assurance is one of the most diverse teams, with people from all walks of life. Our team is
made of women and men from different cultures and countries (including Canada, Chile,
El Salvador, India, Mauritius, Nepal and Pakistan). Some of the diverse experiential
backgrounds are from the military, the automotive industry and new college graduates.
The diversity of our team brings a unique perspective to how we view our expectations
of our customers and how we relate to them. We know our customers are very diverse
and so is our team — and this is a great strength we bring to Stryker.”
Lokram Natarajan, Director of RA/QA, Endoscopy division
16
Launch of the Stryker Women’s Network (SWN)
Following a series of Women’s Roundtable
discussions last year, we responded to feedback
from our employee participants and launched
Stryker’s first affinity group, the Stryker Women’s
Network (SWN), in November 2008. The SWN,
which is open to women and men, focuses on
mentoring, development and networking as a
keystone to women’s inclusion and success at
Stryker. Engaged women and men have formed
local chapters and SWN membership now
exceeds 1,400 (of whom 16% are men). The
SWN has chartered subcommittees to focus on
and address special interest areas, such as
mentorship programs and career paths for
women in sales. SWN chapters have engaged in
activities of many types, including a substantial
amount of local community support and
philanthropy, and environmental conservation
projects.
The Stryker Women’s Network affiliate in
our South Pacific region sponsored forty
employees in Australia’s largest fun run
“City2Surf”, in August 2009. The run
benefits various charities. Two Stryker
employees raised hundreds of dollars for
the Breast Cancer Network in Australia.
Christine Malik, a Senior QA Specialist at
Styker Australia and a member of the SWN,
joined in the fun with her children.
The SWN has provided our employees with many
opportunities to identify what is important to
them, step out of their usual work roles, get
involved in addressing matters that concern them,
make progress on issues of work/life integration,
and demonstrate skills and leadership qualities.
17
Our Commitment to Community
Support and Philanthropy
With our global reach and broad product portfolio, Stryker is able to support
those in need throughout the world in a variety of ways.
Stryker supports organizations and activities that promote
health and wellness, education, the arts and a wide range of
other civic, charitable and humanitarian causes. In 2008, we
donated financial and product support for the education of
healthcare professionals, charitable and civic activity and
humanitarian aid. An example of our support is the recent
donation to Glen Oaks Community College in Centreville,
Michigan of Stryker beds, stretchers and furniture, for use in
the College’s nurse training programs for LPNs and RNs.
One area of focus in Stryker’s giving has been the financial
support of healthcare professionals throughout the world as
they continue their professional education or seek our
support in delivering care to patients in need. We are pleased
to support many medical missions, which have included The
International Hospital for Children and Mercy Ships.
Some examples of recent medical missions which Stryker has
supported include:
Operation Walk: Operation Walk is a private,
not-for-profit, volunteer medical services
organization that provides free surgical treatment
for patients in developing countries (and
occasionally in the U.S.) who have no access to
life-improving care for arthritis or other debilitating
bone and joint conditions. Operation Walk also
educates in-country orthopaedic surgeons,
nurses, physical therapists and other healthcare
professionals on the most advanced treatments
and surgical techniques for diseases of the hip
and knee joints. This is done in conjunction with
surgeries to help create a lasting contribution to
patient care in developing countries. Stryker
donates products and the time of employees to
support Operation Walk.
An Operation Walk patient, walking for
the first time after her surgery, gets
cheers from her doctor.
18
CURE International: In 1997, Tim Mead, M.D., an orthopaedic
surgeon from Michigan, made what he thought would be a oncein-a-lifetime visit to Africa. Immensely moved by the need he
witnessed, Dr. Mead joined with CURE International to open the
AIC CURE International Children’s Hospital in Kenya and
relocated there with his family. The 30-bed hospital specializes in
treating children with the kinds of physical disabilities that may
otherwise make them social outcasts with limited opportunities.
Unique in East Africa, AIC CURE serves 8,000 people annually
on-site and in mobile clinics. The hospital is also a teaching
center, providing residencies in orthopaedic surgery to African
doctors — a service that helps keep medical talent from leaving the continent and therefore improves the
overall quality of care. Six physicians have completed their residencies, and five more are currently in training
(among them, two physicians who plan to return to their native Ethiopia to practice medicine). Stryker is proud
to support AIC Cure with surgical instruments, instrument repair services and surgeon training materials.
Operation Smile: Founded in 1982, Operation
Smile, headquartered in Norfolk, Virginia, is a
worldwide children’s medical charity whose
network of global volunteers are dedicated to
helping improve the health and lives of children
and young adults. Since its founding, Operation
Smile volunteers have treated more than 130,000
children born with cleft lips, cleft palates and
other facial deformities, and the organization has
a presence in 51 countries. In addition to
contributing free medical treatment, Operation
Smile trains local medical professionals in its
partner countries and leaves behind crucial
equipment to lay the groundwork for long-term
self-sufficiency. Stryker is proud to support
Operation Smile by providing product donations,
volunteer assistance and financial support for the
education of local medical professionals in the
countries served by Operation Smile.
Recently, Stryker committed on a larger scale to
Operation Smile — we agreed to support all of
the 2009 medical missions with financial and
product donation, and also with volunteers from
Stryker (the volunteers donated their time, and
Stryker provided financial assistance for their
travel). We announced this program early in 2009
to our workforce, and many volunteers emerged
from our ranks, willing to travel to Bolivia,
Ethiopia, Vietnam and other locations to provide
support for Operation Smile’s work.
Michaela holding a baby in the recovery room
Stryker’s Michaela Krzywon
(Osteosynthesis division, Freiburg,
Germany) holding a patient from
Operation Smile’s medical mission in
Egypt in April 2009.
19
Jay Stanka (a Stryker CMF sales rep)
works with other former US Military
Special Forces veterans to deliver
humanitarian aid to the people of
Afghanistan, including healthcare,
medical and agricultural training, clean
water, education and employment
opportunities.
Stryker’s support of medical missions reaffirms how much our business goals at
Stryker resonate with our employees — we join together with groups like
Operation Smile, and our customer base in general, to be there for the patients
who count on us to improve their quality of life.
In Kalamazoo, Michigan, where our company headquarters and several of our
businesses are located, we have been a leading “pacesetter” donor to the local
United Way for fifteen years. Stryker also supports local activities for children
(Boys & Girls Clubs of Greater Kalamazoo and Junior Achievement) and several
performing arts organizations in Kalamazoo (including the Civic Theatre, the
Gilmore Festival, the Kalamazoo Institute of the Arts, and the Kalamazoo
Symphony).
In Bergen County, New Jersey, Stryker supports local community colleges and
not-for-profit organizations of many types, including Bergen Community College,
Ramapo College and the Independent College Fund of New Jersey. We also were
named 2008 Company of the Year by the Mahwah Chamber of Commerce for our
partnerships with many charitable, civic and educational organizations.
Numerous blood drives, food drives, holiday toy drives and other fundraising
events occur at Stryker locations globally each year to support those in need, near
and far. Stryker employees volunteer their time each year at the meeting of the
American Association of Orthopaedic Surgeons (AAOS) to build a playground
with the Safe Playground Project near the location where the AAOS annual
meeting occurs. Other divisions of Stryker have participated in events at Habitat
for Humanity locations, shelters, food banks and other sites where we support the
people and groups who assist those in need.
“For more than ten years, Stryker
Orthopaedics has been a good neighbor
and major supporter of Ramapo College
of New Jersey. At every turn, Stryker has
helped foster the growth of Ramapo
College, with capital donations to our
Angelica and Russ Berrie Center for the
Performing Arts, sponsorship of our
Distinguished Citizens Dinner and Golf
Outings, and participation in our
Business Partners Program. Stryker’s
generous support helps fund student
scholarships, faculty development and
grants, as well as student and faculty
research. We are proud of and ever
grateful for our affiliation with such a
civic-minded organization.” Peter P.
Mercer, President, Ramapo College
When natural disasters occur, Stryker responds quickly. Our human resource
employees immediately identify the impact on our workforce to ensure that we
meet housing, food and other needs of our people. Our local employees in the
Stryker distribution channels arrange for expedited delivery of products that we
donate to others, especially trauma products, which are often needed in these
situations.
Our employees seek out other ways in which we can help when natural disasters
occur. For example, when 2009 Australian brushfires resulted in severe housing
losses, Stryker employees in Melbourne held lunchtime fundraisers and
contributed thousands of dollars to assist those in need (employee contributions
were matched by a company donation).
In addition to Stryker’s support noted above, we are pleased to accommodate
many employees in their service as volunteers and emergency responders in their
communities, in organizations dedicated to healthcare professional education and
in other forms of service that make our communities stronger. At Stryker, we hire
people who want to help others, and we encourage them to satisfy that desire not
only at work, but in their lives outside of Stryker as well.
20
Stryker’s Korean team recently put their
financial support and energy towards
the CancerKids charity, and competed in
a marathon which was held on May 5,
Children’s Day in Korea.
Our Commitment
to the Environment
Stryker is committed to the responsible use of natural resources, and
protection of our environment.
Our Facilities
Stryker manufactures at 21 facilities worldwide. Three of these sites are LEED
certified or in the process of obtaining LEED certification. Nine of these sites
currently comply with the environmental management standards of ISO 14001 or
are in the process of becoming compliant with the standard.
Other Stryker sites (such as our warehouses, offices and sales branches) engage in
resource conservation and recycling activities in a variety of ways, with some
external recognition and validation. For example:
Emissions:
• Stryker’s warehouse and distribution facility in Sydney, Australia, underwent a
carbon footprint assessment and is in the process of taking the steps necessary
to result in a zero carbon footprint.
• Styker’s trauma product manufacturing plant in Kiel, Germany, has measured
greenhouse gas emissions and embarked on a reduction process that is focused
on reduced utility consumption, lighting changes, equipment upgrading and
standardization and other operational and logistics changes.
Josef Baumann, Monika Schnetz and
Egón Hermann of Stryker
Osteosynthesis, Freiburg, Germany.
Stryker employees just naturally see ways to make things better, and we
hold ourselves personally accountable for making improvements. Take
JoAnn Grgurich of Stryker Medical, who saw potential in the vast quantities
of bubble and foam packaging from incoming deliveries to the plant. For the
last three years, she has collected these materials for reuse in packing the
service parts that we send to our hospital customers. JoAnn’s efforts jumpstarted the Green Team, which promotes recycling innovations across the
facility. The Green Team, under the leadership of Darcy Nelles-Serba, is
responsible for the plant’s pending application for Leadership in Energy and
Environmental Design (LEED) certification from the U.S. Green Building
Council. Not incidentally, the Green Team’s initiatives reduce costs as well
as waste — for example, saving about $90,000 annually by selling wood
pallets for reuse rather than disposing of them.
21
Energy:
• A portion of Stryker’s utility needs is now met by renewable energy sources, and
we are evaluating expanded use of renewable energy resources.
• Stryker’s corporate information technology group has initiated a virtual server
program, which resulted in a savings of 17% in utility consumption in 2008.
Stryker divisions are evaluating this approach to reduce energy used in our
technology systems.
Other Initiatives:
• Stryker’s Endoscopy division in San Jose, California, has been certified by the
County of Santa Clara for its energy use reduction and recycling activities.
• In 2009, Stryker’s Orthopaedics division in Mahwah, New Jersey, received
environmental stewardship recognition from the New Jersey Department of
Environmental Protection for its voluntary and proactive measures in the areas
of environmental policy and management systems. This facility was also
recognized by the New Jersey Department of Transportation in 2009 for our
efforts to support carpooling, telecommuting, the use of mass transit and other
efficient commuting alternatives by our employees.
• The Stryker Women’s Network affiliate in Greater China launched the “Styker
Forest Program” in cooperation with Roots & Shoots, to plant a company forest
of 2,000 trees in the Inner Mongolian Desert. These trees will sequester carbon
dioxide and fight desertification in China.
• Several Stryker locations provide on-site cafeterias, where we use eco-friendly
products, and encourage recycling and other waste reduction activities.
• In 2008, Stryker strongly encouraged our employees to reduce air travel, and a
variety of technology tools have replaced many of our in-person meetings. This
has resulted not only in significant savings for the company, but a significant
reduction in our impact on the environment.
Stryker leadership at the
opening of our new
manufacturing facility in
Suzhou, China, which is a
LEED certified facility.
22
Stryker products vary widely to meet
customer requirements, regulatory
standards and other considerations.
They are composed of various materials
that consume different resources, and
they are produced in a variety of ways,
Accordingly, we have made
commitments to environmental
stewardship that vary on the basis of
these factors. Stryker leaders
continuously assess our products and
processes to see where we can
enhance our environmental stewardship,
especially in the areas of our product
design, composition and packaging and
in our manufacturing processes and
facilities. Waste reduction, recycling,
water and energy conservation and
environmental health and safety (EHS)
activities are ongoing at Stryker, as
appropriate for the specific products and
processes involved.
Our Products
Our products range from hospital beds and operating room
equipment to medical devices that medical professionals
implant in the human body. Some Stryker products require
highly regulated sterile packaging, while others do not. The
manufacturing and assembly processes for our products, as
well as the supply chains, vary greatly across our product
lines. When we undertake changes to our systems and
practices we do so carefully, so there is no adverse impact on
the quality of our products.
We encourage our leaders to explore and advance changes
that will enhance our use of resources and reduce the impact
we have on the environment. The following are some
examples of how we are committed to preserving resources
and minimizing our impact on the environment in connection with
the manufacture of our products:
• Stryker lighting sources are also changing for greater energy efficiency and
reduction of hazardous waste. Our L9000 LED Light Source and the Visum LED
Surgical Light use LED technology so that no light bulbs are used or disposed.
LED technology requires very little maintenance, and its energy efficiency
means less power consumption in operating rooms than traditional lighting.
• Our Medical division is designing products to minimize their impact on the
environment. Designs allow for the easy disassembly of the products at the end
of their useful lives. Steel, plastic and other components are easily separated
with only five tools, which makes it easier to recycle them.
• Much of our paper-based activity is moving to electronic, paperless approaches,
such as payroll, customer orders and billing. Additionally, we are converting
purchasing activities in our offices so that we use recycled paper, and we use it
efficiently by making double-sided copies before disposing of the paper through
recycling programs.
• Our packaging is in various stages of improvement, such as blister packs instead
of styrofoam cushioning, recycled content in boxes and plastic and other
modifications.
We also make various single-use products. These products include gowns and
protective equipment for healthcare professionals that are designed to reduce the
likelihood of infection transmission, and preserve the safety and health of the
wearers and those who come into contact with them. Our cutting guides and
other surgical instruments also contribute to the efficiency of surgical procedures
and are designed to provide optimal patient health outcomes. For example, we
manufacture single-use cutting guides to the specifications of the patient involved
in surgery based on his or her MRIs. By using a patient-specific guide, we
eliminate the need to bring many trays of instruments and guides into the
operating room. This eliminates the transportation and sterilization of many trays
of products, both before the operation and after.
23
We are currently manufacturing hospital
beds using a high percentage of
recycled steel. We have also instituted a
“certified pre-owned” hospital bed
program, in which we collect hospital
beds that come out of service at a
customer hospital, put them through a
rigorous 33-point inspection and repair
process, make any necessary
improvements and sell them at reduced
prices. This program not only saves
energy and material, it also has the
advantage of expanding access to
quality products at reduced prices.
Our Commitment to Ethics,
Compliance and Governance
At Stryker, acting with integrity is expected in all circumstances, at all times.
Our Ethics
As the business environment and regulatory requirements
have become more complex for our industry, Stryker has
codified a more detailed set of policies in our Code of
Conduct, covering the following topics:
The medical technology industry relies on input from users
of its technology to stimulate productive innovation. Thus,
our customers and others who make purchasing decisions
may also serve as consultants to Stryker. We recognize that
this, along with the heavily regulated nature of our business,
calls for our employees to make ethical decisions. We
provide extensive substantive training to ensure our
employees are aware of the rules that govern their behavior
and the expectations we have of them.
• Compliance with laws
• Work environment
• Manufacturing products
• Competitive practices
• Marketing and sales
• Recording and reporting information
Each Stryker employee makes choices every day that
contribute to the character of the Company. By making
ethical decisions, we deal fairly with our customers, our
suppliers, our shareholders and with each other. Every
employee is asked to make a personal commitment to
continue to act honorably, with unquestionable integrity and
in full compliance with the ethical and legal standards set
out in our Code of Conduct. Stryker’s official Code of
Conduct (which can be found on our web site at
http://www.stryker.com/investors/codeofconduct) has
been in place for over a decade.
• Payments
• Fair dealing
• Confidential information
• Political contributions
• Corporate opportunities
• Conflicts of interest
• Protection and proper use of Company assets
Our Code of Conduct applies to all Stryker employees,
including officers and directors, and it is available
electronically and in print in 21 languages. Stryker’s
recruitment of new employees includes interviews at an early
stage in the applicant’s interaction with Stryker to ensure that
only applicants with high integrity are considered for
positions at Stryker. Stryker’s Code of Conduct is an integral
part of the new hire orientation process and is part of annual
training programs at Stryker. All Stryker employees have an
obligation to report any violation of the Code.
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Código de Condu
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Código de co
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Política corporat
número uno
In 2008, Stryker expanded our practices to determine
whether our business partners share our commitment to
ethical behavior. We will continue to advise our business
partners of our expectations for them concerning ethical
behavior and will implement more processes and controls to
ensure that our commitment to ethical behavior is shared by
our business partners.
porate Policies
Copies of all Cor
on
may be found
poratepolicies
/cor
com
ker.
www.stry
ard
2825 Airview Boulev
49002
Kalamazoo, MI
f: 269 385 1062
t: 269 385 2600
Policy Date: 6/8/06
www.stryker.com
In the past few years, Stryker and others in the medical
technology industry have faced compliance challenges of
various types that have resulted in government
investigations. Stryker is committed to ensuring that our
employees know what is expected of them, perform their
jobs in accordance with all legal requirements and are held
fully accountable for living up to these expectations.
We translate our Code of Conduct into
21 different languages for Styker
employees, including Spanish, which is
shown here.
24
Compliance
member of any Stryker Board Committee is or ever has
been an employee of the Company.
In 2006, Stryker’s Board of Directors determined that a
corporate-level compliance office should be formed to
oversee the Company’s compliance activities and ensure that
all our divisions have effective compliance programs in
place. Our compliance office now consists of a team of
compliance professionals and internal auditors who work
with designated compliance officers in every Stryker
division. We conduct employee training, investigations and
other compliance activities through this office, and our chief
compliance officer reports regularly to the Board’s Audit
Committee on these matters.
Stryker’s Board of Directors holds an executive session at
each of its meetings at which no member of management is
present. At least once each year, the independent directors
hold an executive session where they are the only members
in attendance.
In addition to the Code of Conduct that binds all Stryker
personnel (employees, officers and directors), a Code of
Ethics also applies to our president and chief executive
officer, vice president and chief financial officer, vice
president and chief accounting officer, and controller.
The Code of Ethics is available on our web site at
http://www.stryker.com/investors/codeofethics.
Stryker also maintains a compliance reporting system, our
Ethics Hotline. The hotline provides an anonymous means
(via the internet or telephone) for bringing suspected
misconduct or compliance concerns to the Company. The
reporting system does not replace the Company’s existing
internal mechanisms for resolving day-to-day operational
issues and concerns. We encourage our employees to
contact their local management to resolve their issues before
filing a report. Through the Ethics Hotline, our employees
can confidentially and/or anonymously report any legitimate
Code of Conduct-related concerns in a safe environment
without fear of reprisal.
Our Board of Directors has adopted a Related Party
Transactions Policy, which calls for Audit Committee review
and approval of certain transactions involving directors,
executive officers, principal shareholders or members of
their immediate families or entities controlled by any of
them or in which they have a substantial ownership interest.
This Policy applies to transactions in which the amount
involved exceeds $120,000 and transactions that are
otherwise reportable under SEC disclosure rules.
Stryker monitors public payor reimbursement changes and
pending legislation and regulation concerning a variety of
regulatory matters, but we do not have a political action
committee and the company does not contribute to political
candidates (our Code of Conduct prohibits corporate political
contributions).
A third party maintains the hotline and promptly notifies us
of any reports that it receives. We have established a
protocol in which we track every report and generate data
that allows us to monitor and trend compliance activity.
Hotline reports are handled through our compliance system,
and we engage external legal and accounting assistance
when necessary.
Global Reporting Initiative
Stryker endorses the GRI principles of materiality,
stakeholder inclusiveness, sustainability context and
completeness.
Governance
Stryker’s Board of Directors holds itself to the same high
standards we set for our employees. Stryker’s Corporate
Governance Guidelines are available on our web site at
http://www.stryker.com/investors/governanceguidelines.
In this initial review of our social responsibility activity, our
intent is to provide stakeholders with a sense of the
philosophy that guides Stryker on these matters, and
examples of specific activity.
Seven of our nine Board members are independent, and
each director stands for election annually by majority vote
of the shareholders. Each of Stryker’s Board members
attended more than 75% of the 2008 total meetings of the
Board and each committee on which he or she served.
As we receive feedback and establish specific goals for
socially responsible activity, we will present more
comprehensive data, and will report our activity in a
manner which comports with the GRI principles.
Stryker’s Board of Directors has three principal committees,
with Board-approved charters under which they act: the
Audit Committee, Compensation Committee and
Governance and Nominating Committee. The committees
review and reassess their charters on an annual basis; the
charters can be viewed at http://www.stryker.com/investors/
charters. Other than our current CEO and chairman, no
25
Appendix A
Our Products
Joint Replacements
Stryker provides a wide variety of high quality products and services that help improve patient care. Our products include:
Scorpio NRG Total
Knee System
Triathlon Knee System
Representative Products
Joint Replacements
Total Knees
The most important thing we offer surgeons is the power Primary
to make
a difference in
Stryker’s total knee
systems
their patients’ lives. Our joint replacement portfolio of hip,replacement
knee,
joint
incorporate unique
preservation and shoulder implants focuses on proceduraldesign
andphilosophies
product
to suit varying medical Trauma, Extremities & Deformities
conditions
and
innovations that will stand the test of time. Our goal and the
surgeon’s
goal are the
anatomies, enabling
patients
to better regain
same: the right procedure and the right implant for the right
patient.
Stryker’s total knee replacement systems
incorporate unique design philosophies to
suit varying medical conditions and
anatomies, enabling patients to better
regain function.
Hoffmann ll MRI System
function.
Trauma, Extremities & Deformities
Hoffman II MRI System
In trauma, injuries can’t wait and surgery is not elective. Stryker is oneLower
ofExtremities
the
& Pelvis
EIUS Knee
has solutions
leaders in this critical category because this sense of urgency is part ofStryker
everything
for the repair of fractures
of the lower extremities
we do. We make many of the most successful products in the field — the
ones
and pelvis,
including
Unicompartmental
external fixation, plate
surgeons have come to depend on — but we’re also constantly
improving
and
and screw
systems and
Knee
intramedullary nails.
Our uni knee is designed
enhancing them. We help people regain the use of their hands,
to conservearms,
bone in feet and legs.
Spine
Triathlon Knee System
situations where only
one portion of the knee
joint is worn.
Stryker has solutions for the repair of
fractures of the lower extremities and pelvis,
including external fixation, plate and screw
systems and intramedullary nails.
Spine
XIA Anterior System
Back pain is a growing problem, affecting hundreds of thousands of people
annually. To offer their patients relief from debilitating pain, surgeons in
increasing numbers are choosing Stryker spinal implants. Stryker uses leading
edge technology to design, manufacture and service a full10range of spinal
products, including cervical implants, thoraco-lumbar implants and interbody
devices.
T2 IM Nail Platform
Thoracolumbar
Stryker designs and
Leibinger Universal
manufactures leading
Fixation System
rod and screw systems
for the fixation of the
mid and lower sections
of the spine.
Craniomaxillofacial
Stryker’s craniomaxillofacial implants (products for the face, skull, jaws and
mouth) reconstruct deformities to help people get back to normal lives. We help
children with facial deformities smile. We help people breathe freely who have
never done so before.
14
XIA Anterior System
Stryker designs and manufactures leading rod
and
screw systems for the fixation of the mid
Maxillofacial
Our maxillofacial micro
and
of the spine.
plates lower
and screwssections
repair
fractures and correct
deformities of the head.
Leibinger Universal Neuro 2
Fixation System
CMF Universal Fixation
System
Neuro
Our neuro products
include micro plates
and screws to provide
reliable rigid fixation
of cranial bone
flaps, resorbable plates
and screws and
osteoconductive bone
cement.
22
Our maxillofacial micro plates and screws
repair fractures and correct
deformities of the head.
19
Patient Care & Handling Equipment
Stryker makes hospital beds and stretchers for the comfort and security of
patients. We are an undisputed industry leader in patient handling equipment.
Our innovative, ergonomic and mobile products also help ease the burden on
caregivers, preserving their health and safety, and allowing them to devote more
time and energy to caring for their patients.
InTouch Critical Care Bed
Med/Surg and Critical
Care Beds
Med/Surg and Critical
Care Beds
Our med/surg and
Our
med/surg and critical care beds offer
critical care beds offer
patient security,
patient
security,
intuitive operation and flexible
intuitive operation
and
flexible functionality. A
functionality.
A menu of custom features is
menu of custom
features is available to
available
to meet specific needs.
meet specific needs.
LD304 Birthing Bed
Maternity Beds
Built on our BackSmart
design philosophy that
delivers comfort and
safety for mothers and
caregivers, Stryker’s
maternity beds enhance
the birthing process.
26
49
Power-PRO Powered
Ambulance Cot
Ambulance Cots
and Stair & Evacuation
Chairs
Our cots and evacuation
chairs have built-in
safety features for
patients and responders
and offer optimal ease
of maneuverability.
Emergency Medical Service (EMS) Equipment
When it comes to emergency services, responders need uncomplicated, reliable
equipment that can provide an extra margin of safety. Lives depend on it. That’s
why Stryker involves itself in the daily work of EMS professionals. By first
understanding their needs and then thoroughly researching and scientifically
validating product designs, our ambulance cots, stair chairs and other EMS
products deliver an exceptional standard of quality and performance.
Power-Pro Powered
Ambulance Cots and Stair &
Evacuation Chairs
Stair Chair
Biologics
Our biologics products hold the promise of restoration and healing for patients
suffering from bone, cartilage, and soft tissue injuries and defects. Stryker offers
biologic-based products for a number of clinical specialties, including trauma,
spine, maxillofacial, sports medicine and total joint replacement. We provide
surgeons with biologic treatments that have the potential to produce better
results for countless people.
Surgical Products
Stryker has delivered industry-leading surgical products since 1941. As the first in
the industry to market high-performance cordless heavy duty systems, we have a
legacy of performance-based innovation. We focus our energy on bringing
surgeons the tools needed to make surgery more efficient, as well as to ensure
hospital staff safety and minimize trauma to the patient.
Our cots and evacuation chairs have built-in safety
features for patients and responders and offer
optimal ease of maneuverability.
OP-1 Putty
Osteogenic Proteins
Our osteogenic products
are based on OP-1
/
53
BMP-7, our proprietary
recombinant version
of a natural protein that
induces bone growth
to repair fractures or aid
in spine fusion.
HydroSet HA
Bone Substitute
HydroSet HA Bone
Substitute Biomaterials
Biomaterials
Stryker’s biomaterials
products include bone
Stryker’s
biomaterials products include bone
fillers and substitutes
based on hydroxyapatite,
fillers
and substitutes based on hydroxyapatite,
together with
collagen-based tissue
together
with collagen-based tissue repair
repair products.
products.
CORE Micro Power Tools
Surgical Power Tools
Stryker has a variety
of heavy duty and micro
25
power tools that span
surgical specialties from
total joint replacements
to ear, nose and throat
procedures. We continue
to innovate to produce
instruments that are
highly reliable and simple
to use.
System 6 Heavy Duty
Power Tools
System 6 Heavy Duty
Surgical Power Tools
Oscillating Tip of Stryker
Precision Saw Blade
Stryker has a variety of heavy duty and micro
power tools that span surgical specialties from
total joint replacements to ear, nose and throat
procedures. We continue to innovate to
produce instruments that are highly reliable
27
and simple to use.
We also provide large bone battery-powered and small bone specialty power
instruments, personal protection and waste management systems and total joint
disposables.
Neurologic & ENT Products
We focus on the specific needs of Neurological and ENT (Ear, Nose and Throat)
surgeons with a comprehensive suite of products developed for the fine tolerances
required by these specialties. Continued product innovation and a specific focus on
the service needs of these specialty care providers allow them to improve their existing
surgical procedures, while exploring new techniques to further advance the surgical
outcomes for patients. Our products include electric and pneumatic drill systems and
accessories, non-stick bipolar forceps, and bio-fragmentable nasal dressings.
Sumex Drill
ESSx
Microdebrider
Maestro
Pneumatic Drill
Maestro Pneumatic Drill
Power Tools
Our micro powered
tools and customizable
attachments enable
surgeons to work
effectively in the tight
confines of the brain,
spine and ENT areas.
Our micro powered tools and customizable
attachments enable surgeons to work
effectively in the tight confines of the brain,
spine and ENT areas.
SilverGlide Non-Stick
Bipolar Forceps
Forceps
Our forceps feature
a nonstick surface that
provides more
accurate and effective
cauterization during
surgery.
NasoPore Bioresorbable
Nasal Dressing
Sinus Dressing
In addition to ENT
instruments, Stryker
provides specialized
surgical dressing
for sinus procedures.
33
27
Interventional Spine
We specialize in early treatment by creating less invasive surgical solutions that
yield more effective pain management. We offer a wide range of innovative
products, from minimally invasive surgical tools to unique pain management
systems. Our goal is to provide surgeons with advanced tools and techniques that
allow them to act early in the treatment process to help reduce patient pain.
Dekompressor Percutaneous
Discectomy Probe
from back and leg
pain due to contained
This method
of removing spinal disc material
disc herniations.
is a new, minimally invasive option for patients
suffering from back and leg pain due to
contained disc herniations.
PCD System with SpinePlex
Navigation
Our surgical navigation system offers surgeons the ability to use electronic
imaging to more accurately track in real time where they should place instruments
relative to a patient’s anatomy during an operation. By combining computers,
infrared cameras and wireless instruments, surgeons have far more accurate
information than ever before in neurological, ENT, joint replacement surgery,
spine and trauma procedures. Our navigation systems are redefining the way
surgeries are performed, for better patient outcomes.
Navigation System
RF Generator
1188 HD 3-Chip Camera
Stryker is the technology leader in the operating room. Our innovative products
help make surgery easier and more efficient for medical professionals so they can
provide better outcomes for patients. We were the first to combine voice
activation, infrared technology and high definition digital capture and display
devices to fully integrate the operating room. Our broad range of products has
made us the leader in minimally invasive surgery in today’s advanced and rapidly
changing operating room environments.
Communications
Communications is about connecting surgeons and other medical professionals
with the information they need. We make systems that link operating rooms with
facilities around the world — and we support them with a range of integrated
surgical equipment, lights and booms. These systems exchange MRIs, X-rays, live
pictures and other kinds of information between operating rooms, doctors’ offices
and teaching institutions everywhere. Our imaging technology optimizes office
workflow and eliminates inefficiencies attributable to managing patient medical
data — ultimately enhancing patient care.
28
Percutaneous Cement
Delivery
Our cement mixing
and delivery system for
the spine offers a
less invasive approach
to treating vertebral compression fractures that
result from osteoporosis
and trauma.
Surgical Navigation Systems
Through digital camera technology, wireless
instrumentation and intuitive software controlled
by the surgeon, our navigation system provides
valuable information on the accuracy of
alignment and cuts, positions of instruments and
precise locations of surgical targets.
Surgical Navigation
Systems
Through digital camera
technology, wireless
instrumentation and
intuitive software
controlled by the
Radiofrequency
surgeon, our navigation
Stryker’s
system provides
valuable radiofrequency
information on the
treatment allows
accuracy of alignment
physicians
to reduce
and cuts, positions
of
instruments pain
and precise
by applying
locations of surgical
controlled heat energy
targets.
to the nerves in the
spinal area.
Navigation Handpiece
Endoscopy
Percutaneous
Dekompressor
Discectomy
This method of
removing spinal disc
Percutaneous
Discectomy
material is a new,
minimally invasive option
Probe
for patients suffering
Smart Instrumentation
Stryker’s unique
Smart Instrumentation
features two-way
wireless communication
between LED-equipped
handpieces and a
digital camera, giving
surgeons complete
control of the software
from the sterile field and
improving efficiency.
35
Video
37
Video
Stryker pioneered the
first high-definition digital
medical video camera,
an advance that
revolutionized minimally
invasive surgery, and
we continue to
constantly improve our
technology.
Stryker pioneered the first high-definition digital
medical video camera, an advance that
revolutionized minimally invasive surgery, and
we continue to constantly improve our
technology.
SIDNE Device Control System
Video Accessories
We support our
leading medical video
cameras with voice
activation systems,
digital documentation,
high-definition
monitors and display
systems and printers.
Surgical Lights
39
Using best-in-class LED’s, the light remains
starkly cool while achieving a combination of
brightness, pure white color, and shadow
resolution that is unmatched in the marketplace.
Sustainability Summary
• Stryker products sustain the quality of life for the patients our customers
serve.
• Stryker products sustain the health and safety of medical professionals, as
well as the effectiveness and efficiency of their healthcare systems.
• Stryker provides sustainable and meaningful employment to our people
around the globe.
• Stryker provides resources that sustain the local and global communities
where we live and work.
• Stryker’s operations are conducted in a way that sustains the environment
and natural resources.
• And Stryker’s governance practices sustain our shareholders’ investment.
Recent Recognition of Stryker:
• Fortune names Stryker the #6 most admired company in the medical and other precision
equipment industry.
• Stryker is #375 on the Fortune 500 list.
• Barron’s ranks Stryker #140 on its list of the 500 largest publicly traded companies in the U.S.
and Canada.
• Stryker is #166 on IndustryWeek’s U.S. 500, a list of the largest publicly-held U.S. manufacturing
companies.
• Stryker wins the Gallup Great Workplace Award for the third consecutive year, when compared
to millions of work teams in more than 100 countries.
• Stryker’s Orthopaedics division named one of New Jersey’s Twelve Great Places to Work, in NJ
Monthly magazine.
• Stryker’s Endoscopy division is named the #13 best place to work in the Bay Area by the San
Francisco Business Times/Silicon Valley Business Journal.
• Hewitt Associates names Stryker’s Global Technology Center the #13 Best Employer in India,
recognizing our worldwide employment and development practices.
• The Sunday Times includes Stryker’s U.K. sales and distribution business on its list of Top 100
Companies, naming Stryker the 51st best mid-size company to work for in the U.K.
• Stryker’s sales office in Duisburg, Germany, receives the TOP JOB award for the second time,
again distinguishing itself as one of the best employers in Germany.
29
Stryker’s Equal Employment Opportunity Policy
Statement
Stryker Corporation or its divisions or other corporate affiliated
entities own, use or have applied for the following trademarks
or service marks: Backsmart, Dekompressor, Exeter, Flyte,
Hoffmann, Homer Stryker Center, HydroSet, Maestro,
Neptune, Power-Pro S3, Steri-Shield, Stryker, System 6, T5,
Triathlon, Visum, Xia. All other trademarks are trademarks of
their respective owners or holders.
Stryker is committed to providing Equal Employment
Opportunity to all employees and applicants for employment
on the basis of skills and ability and without regard to race,
color, creed, religion, sex, age, disability, national origin,
ancestry, citizenship, armed forces service, marital or veteran
status, sexual orientation, or any other impermissible factor.
Our policy of Equal Opportunity and Affirmative Action
applies to all phases of the employment process including, but
not limited to, recruitment, selection, promotion, transfer,
demotion, layoff, termination, compensation, benefits, and
other terms and conditions of employment, and further
requires maintaining a work atmosphere free of bias,
including the prevention of harassment. Harassment includes,
but is not limited to, disparaging remarks, innuendoes, slurs,
demeaning written or graphic material, or demeaning
physical or verbal confrontations based on race, color, creed,
religion, sex, age, disability, national origin, ancestry,
citizenship, armed forces service, marital or veteran status,
sexual orientation, or any other impermissible factor.
Harassment of any nature is expressly prohibited at Stryker.
30
Stryker Corporation
2825 Airview Boulevard
Kalamazoo, MI 49002
Telephone
269 385 2600
www.stryker.com
31