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Case Study: Purifying an Image
Peter Chang
College of Professional Studies, Northeastern University
ENG3107 Writing for the Professions – Business & Social
Professor Yurchak
February 9, 2024
Introduction
Baxter International is a $7.7 billion healthcare products organization headquartered in
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Deerfield, Illinois, outside Chicago. Its product line is divided into three divisions:
Bioscience, Medication Delivery, and Renal. On August 15, 2001, Baxter International faced
a major crisis when dialyzers manufactured by their subsidiary Althin Medical caused several
patient deaths in Spain. Baxter took immediate action to investigate the cause and contain the
crisis. The solutions Baxter International implemented to solve the crisis of death caused by
dialyzers did work effectively because Baxter International reacted fast enough to put a halt
on all production, recalled products, and compensated victims' families. Most importantly,
Baxter International was transparent in communicating with the public. This quick and
responsible crisis management helped Baxter preserve their reputation.
Evaluation of Solution
Baxter's crisis response can be evaluated positively overall. When the first two dialysis
patient deaths occurred in Spain, Baxter did not immediately respond since both patients were
elderly. However, as more deaths accumulated, Baxter initiated a thorough investigation.
They discovered an issue with perfluoro hydrocarbon fluid in the dialyzers which turned
gaseous when heated and caused fatal embolisms.
Once the problem was identified, Baxter recalled all potentially contaminated products. By
doing so, Baxter International may have prevented many more deaths and showed
responsibility and reliability to the public that they value health over profits. Baxter also
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closed the Althin and halted all dialyzer production until safety was assured. Their
willingness to lose business to protect patients' health demonstrated their dedication to ethical
behavior throughout the crisis.
Baxter's CEO issued a public apology and assured the public that all productions would be
halted while investigations were conducted. Keeping the public informed rather than
minimizing the incident allows them to build trust with their stakeholders. Following the
event, Baxter International accepted responsibility and even refused to blame its suppliers,
claiming full accountability as the manufacturer. It was a successful strategy for restoring
stakeholder trust.
Not only was Baxter International transparent in communication with the public, but they
were also financially assisting victims’ families affected by contaminated dialyzers which
was a great strategy to earn the public’s trust. Although the compensation could not undo the
tragedy, it showed Baxter accepted responsibility and they expressed their deepest
condolences to their victims’ families. According to an attorney of one family, this gesture
was appreciated in their time of grief, and they felt like Baxter International was by their side
throughout the darkest time of their lives. The $189 million payout was costly for Baxter, but
it helped to relieve public resentment.
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Internally, Baxter’s employees maintained focus on resolving the issue which enabled a quick
turnaround. The cooperative crisis response from Baxter’s internal stakeholders such as its
leaders, employees, and investors was exemplary. The lawsuits against Baxter International
were settled immediately mainly because of Baxter’s willingness to take a financial hit to
protect public health and provided full transparency throughout the occurrence of the crisis.
Overall, Baxter’s rapid and responsible reaction to a potentially catastrophic issue should be
considered an effective crisis response. They prioritize ethics and public safety over profits
and communicate openly throughout the process. As a result, Baxter bounced back with the
apparent surge in sales and stock price recovering within months.
Conclusion
When dialyzers took several lives in 2001, Baxter International faced a major scandal but
responded efficiently. They immediately conducted full investigations, recalled products
globally, shut down production lines temporarily, compensated victims’ families financially,
communicated transparently, and focused internally on solutions. The fact Baxter prioritizes
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and values their stakeholders’ well-being over profits is an exemplary crisis response. These
ethical and responsible choices led Baxter to resolve the crisis and restore the public’s trust.
Reference
Davis, J. A. (2006). Purifying an image: Baxter International and the dialyzer crisis. Case
studies in organizational communication : ethical perspectives and practices.
