Professional Documents
Culture Documents
Building on our
market leadership in Germany and Western Europe, we are the number 3 in the global
competitive arena. It is our aim to be the benchmark for our sector. We want to present a
convincing case with our quality, design, innovation, consumer benefits and value in use. Our
products are part of everyday life.
In order to provide our employees and customers with a clear means of orientation, we have
set out our values and goals in a set of corporate principles that describe the way the company
sees itself, and the culture it adopts.
Responsibility
Creating added value for society
For BSH, socially responsible action means contributing to better working conditions and
living standards worldwide. The more countries in which a company operates, the greater the
diversity of requirements it faces. And observing minimum environmental and social
standards is not only a matter of corporate responsibility, it also safeguards a company’s
reputation. Because the company’s responsibilities no longer stop at the “factory gate”, and
BSH has the means to influence and shape matters far beyond these boundaries.
The BSH Corporate Principles enshrine the tenet that every employee’s actions must at all
times comply with laws and statutory provisions. Reliability, fairness and integrity in internal
dealings and contacts with business partners and consumers are an integral element of BSH’s
corporate culture. These principles are also incorporated in the Business Conduct Guidelines
which BSH introduced in 2006 as binding provisions for all BSH employees. In order to
ensure their sustainable implementation, 2008 saw the BSH Group introduce a Compliance
Management function, which is intended to support the operational units in their observance
of the law, BSH guidelines and the Business Conduct Guidelines.
2.5 Number/names of countries with major operations (or of particular relevance to the
sustainability issues covered in the report)
Germany, Belgium, Brazil, China, France, United Kingdom, Greece, Austria, Northern
Europe, Poland, Portugal, Russia, Switzerland, Slovakia, Slovenia, Spain, Turkey and the
USA.
4.5 Linkage between compensation for executive managers and the organization's
performance with regard to sustainability issues
See 4.1
4.6 Processes in place for the governance bodies to ensure that conflicts of interest are
avoided
Annual Report 2009, page 100
4.10 Processes for evaluating the Board of Management's own performance in relation
to sustainability issues
See 4.1
In 2009, BSH conducted its first survey of 200 stakeholders around the world, of
whom 70 responded. Some 72 percent of respondents rated BSH’s commitment to the
environment as better than average, 44 percent felt that our contribution to wider
society was better than average and 33 percent said we were better than average in the
area of commitment to our employees. Overall, 61 percent of those surveyed stated
that our commitment to sustainability was better than average and 33 percent that it
was adequate. The most important concern for the future among those surveyed
turned out to be the ease of use of home appliances for older people (25 percent). Next
came social and ecological standards in the supply chain (13 percent) and good
consumer information (11 percent). See Responsibility for the environment and
society 2009, p. 11
Development of the Protos stove: Deutsche Bundesstiftung Umwelt, Conservation
International, Opportunity International Deutschland, World Bank, USAID,
Gesellschaft für technische Zusammenarbeit (GTZ), Deutsche Investitions- und
Entwicklungsgesellschaft (DEG), International Union for Conservation of Nature
(IUCN), DINARI (Indonesia), TERI (India), Gold Standard Foundation
Corporate Principles
Business Conduct Guidelines
Additional information
EC7 Procedures for local hiring and proportion of senior management hired from the
local community
Not specified
EC8 Infrastructure investments and services provided primarily for public benefit
BSH turned the plant oil stove idea into a mature and marketable product in order to help
prevent exposure to harmful combustion gases and reduce deforestation in developing
countries. The Protos plant oil stove oil provides users in areas where wood has previously
been the main fuel used in food preparation with a healthier and more environmentally
friendly alternative. Adoption of the Protos also entails a local production and marketing
concept that will create jobs in the extraction and processing of oil from indigenous plants, in
the manufacturing of the stove, and in sales. In 2010, series production of the second
generation of stoves will commence in Indonesia.
BSH-Katastrophenhilfe e.V., the company’s disaster relief fund with activities around the
world, was founded in 1999. Since then, BSH employees and directors have donated over
around 1.05 million euros to help people in areas affected by disasters. Most of its resources
in 2009 went to assist earthquake victims in the Philippines and to the Sahana Nivasa
children’s home, our long-term aid project for survivors of the 2004 Indian Ocean tsunami.
BSH's sites and subsidiaries become involved in numerous local projects too and provide
support in several forms, including product donations for good causes in society.
In Germany, BSH has a particular commitment to supporting measures aimed at raising
awareness of climate change and energy efficiency among young people. Activities in this
area in 2009 included a joint project with the German Institute for Film and Images in
Research and Teaching (FWU).
Environment
Environmental: Management approach and performance indicators
Goals and performance
BSH has set itself the goal of becoming the industry benchmark - including in its handling of
ecological and social issues within its sphere of influence. In order to capitalize on new
opportunities, BSH is concentrating on three action areas:
Environmental policy
Corporate guidelines on environmental management
Occupational health and safety policy
Monitoring mechanisms
In order to reliably achieve its environmental targets, BSH has instituted management
systems and tools. All environmentally relevant sites have environmental management
systems to ensure that all statutory obligations and internal guidelines are complied with. We
operate 28 production sites, 25 of which have now completed certification under both ISO
9001 (quality) and ISO 14001 (environmental management) and record their environmental
performance in the form of indicators. Our occupational health and safety management
regulations have been in strict compliance with the international OHSAS 18001 standard
since the beginning of 2009.
Product environment analysis (PEA) is a tool used in product development since 1996 to
support new development or further development of appliances. Environmental performance
indicators – both product-related and production-related – provide management with a
suitable basis for the successful implementation of ideas.
The code of conduct for BSH suppliers, which is based on the UN Global Compact and the
conventions of the International Labor Organization (ILO), has been included in supply
contracts since 2007. We had obtained an undertaking to uphold the code of conduct from our
direct material suppliers in both A and B categories by the end of 2009. These two groups
together account for more than 95 percent of our total purchasing volume, and we expect all
of our A and B suppliers to have an environmental management system in place. We only
accept new suppliers if they are prepared to recognize the code of conduct and we carry out a
basic audit that includes social and environmental aspects in every case.
Additional information
The company suggestions initiative (Top Idea), established in 14 countries in 2009, provides
us with valuable hints on how we can optimize our processes.
Aspect: Energy
EN17 Other indirect greenhouse gas emissions caused, for example, by business travel
and commuting
The recording of CO2 emissions resulting from business travel includes emissions caused by
flights, business travel by car and rail, and the use of sales and customer service vehicles. The
data for this Scope 3 reporting was extrapolated from verified regional reports (Germany and
Europe). 25 percent of CO2 emissions are caused by air travel, with 73 percent resulting from
business travel by car and two percent from rail journeys. Hire cars and leased cars are used
for most business travel undertaken for customer service, sales and other business purposes.
Social: Management approach and performance indicators
Management approach
1. Energy efficiency: To set the standard in the sector with innovative product and
manufacturing solutions that reduce resource consumption and help to combat climate
change.
2. Responsibility for our products: To continuously improve environmental protection
and health and safety throughout the product lifecycle in dialog with politicians,
retailers, consumers, suppliers and disposal contractors.
3. Knowledge transfer: To offer the best possible living and working conditions to
people the world over through the transfer of BSH standards and experience in
production, product design, training and professional development.
Corporate Principles
Business Conduct Guidelines
Occupational health and safety policy
BSH leadership principles
CECED Code of Conduct
Monitoring mechanisms
The Business Conduct Guidelines of the BSH Group provide employees throughout the
company with a clear code of conduct to which they can refer and to which they must adhere.
All BSH employees have a duty to comply consistently with these rules. As part of their
organizational and supervisory duties, managers take steps to ensure that business is
conducted in accordance with these guidelines.
The code of conduct for BSH suppliers, which is based on the UN Global Compact and the
conventions of the International Labor Organization (ILO), has been included in supply
contracts since 2007. The code requires all suppliers to act in accordance with BSH’s own
principles, so they have to respect human rights, for example, avoid child labor, maintain
good working conditions, encourage environmental protection, and prevent corruption.
We had obtained an undertaking to uphold the code of conduct from our direct material
suppliers in both A and B categories by the end of 2009. These two groups together account
for more than 95 percent of our purchasing volume. We only accept new suppliers if they are
prepared to recognize the code of conduct and we carry out a basic audit that looks at social
and environmental aspects in every case. We expect all of our A and B suppliers to have an
environmental management system in place.
BSH introduced a compliance management organization at the beginning of 2008 to help
facilitate the consistent implementation of this code – our Business Conduct Guidelines –
across the Group’s various departments and sites. This organization comprises the Corporate
Compliance Committee, the Office of the Compliance Committee, regional Compliance
Officers and an external ombudsman to whom any employee of BSH – and even any third
party for that matter – can turn, anonymously if necessary, to report infringements.
Additional information
The company suggestions initiative (Top Idea), which provides us with valuable hints on how
to optimize our processes, operated in 14 countries in 2009.
Human rights
Management approach
Corporate Principles
Business Conduct Guidelines
Monitoring mechanisms
The Business Conduct Guidelines of the BSH Group provide employees throughout the
company with a clear code of conduct to which they can refer and to which they must adhere.
All BSH employees have a duty to comply consistently with these rules. As part of their
organizational and supervisory duties, managers take steps to ensure that business is
conducted in accordance with the guidelines. We expect our supply chain too to demonstrate
integrity and respect for the law. The code of conduct for BSH suppliers, which is based on
the UN Global Compact and the conventions of the International Labor Organization (ILO),
has been included in supply contracts since 2007. The code requires all suppliers to act in
accordance with BSH’s own principles.
Additional information
HR6 Business activities with a significant risk of child labor, and action taken
Not specified
HR7 Business activities with a significant risk of forced or compulsory labor, and action
taken
Not specified
Society
Management approach
Energy efficiency: To set the standard in the sector with innovative product and
manufacturing solutions that reduce resource consumption and help to combat climate
change.
Responsibility for our products: To continuously improve environmental protection
and health and safety throughout the product lifecycle in dialog with politicians,
retailers, consumers, suppliers and disposal contractors.
Knowledge transfer: To offer the best possible living and working conditions to
people the world over through the transfer of BSH standards and experience in
production, product design, training and professional development.
Corporate Principles
Business Conduct Guidelines
Monitoring mechanisms
BSH introduced a compliance management organization at the beginning of 2008 to help
facilitate the consistent implementation of this code – our Business Conduct Guidelines –
across the Group’s various departments and sites. This organization comprises the Corporate
Compliance Committee, the Office of the Compliance Committee, regional Compliance
Officers and an independent ombudsman to whom any employee of BSH – and even any
third party for that matter – can turn, anonymously if necessary, to report infringements.
BSH’s corporate compliance organization investigated 17 cases in fiscal 2009. In six cases it
was found that there had been no material breach of the guidelines. The other cases are either
ongoing or have been concluded following the implementation of appropriate measures. The
ombudsman received three reports of possible compliance breaches in 2009.
Additional information
SO5 Public policy positions and participation in public policy development and
lobbying
Home appliances are significant contributors to the overall energy consumption of
households. With its products, BSH is particularly well placed to contribute to the protection
of resources and of the climate. This is why, as members of various associations and in our
dialog with politicians and society generally, we are advocating rapid, decisive action. This
includes the activities of the European Committee of Domestic Equipment Manufacturers
(CECED) and our involvement in the European Commission's Sustainable Energy Europe
initiative.
BSH is involved in the sector trade association ZVEI’s Energy Efficiency Initiative, which
aims to raise energy efficiency to the top of the corporate and social agenda, and has
launched its own Group-wide Energy Excellence Initiative to make consumers and
employees even more aware of energy efficiency. BSH CEO Dr. Kurt-Ludwig Gutberlet,
who has taken an especially close personal interest in this matter, continues to call for
consumers to be given better and more transparent information. One of the proposals mooted
is for the EU energy label system to be redesigned to reflect the technical progress of
products more accurately and give consumers a completely reliable way to identify the most
efficient model.
To ensure high quality standards for recycling throughout Europe, BSH has worked with the
relevant trade associations, in its capacity as a member of more than 20 national take-back
systems, to draft and encourage the adoption in practice of voluntary industry standards for
the collection, transport, storage, handling, and processing of refrigerators and freezers.
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Awards Recognizing
Commitment to the Environment
2010 BSH receives the “Innovation Prize for Climate and the Environment”
2009 In the sustainability report ranking of the 150 largest German companies, BSH occupies 8th
place overall and 1st place in the home appliance sector.
The washing machine plant in Nauen is named “Factory of the Year” in a cross-sector
competition, in recognition of its outstanding resource efficiency
2008 BSH has received the first German Sustainability Award and is Germany’s most sustainable
company for 2008.
For its dishwasher with the innovative zeolite drying system BSH receives the Bavarian
Energy Award
The Neff factory in Bretten receives the “Environmental Prize for Businesses 2008” from the
state of Baden-Württemberg
2006 Dr. Kurt-Ludwig Gutberlet receives the B.A.U.M international special prize 2006 for years of
exemplary commitment to the enviroment
2005 2003/2004 “Environmental and Corporate Responsibility” report awarded first place in its
sector in Capital magazine’s rankings of 150 sustainability reports
2004 Federation of German Industries (BDI) 2003/2004 Award for the Environment for the project
“Consistent implementation of innovative technology and environmental standards in
manufacturing cooling appliances
in China”
Environmental prizes awarded by the Federação das Indústrias de São Paulo (FIESP) for the
project “Aqua Viva” and the project “Environmentally friendly refrigeration appliance”
2003 National Prize of the Spanish Ministry of the Environment “Premio Nacional Empresa y Medio
Ambiente 2003”
2002 Dr. Robert Kugler, as a member of the Management-Board, is voted Eco Manager of the Year
2002 by the environmental foundation of WWF Germany (World Wide Fund for Nature) and
by Capital
2000 The BSH/Environmental Report is ranked as the best German publication in its sector by
German business magazine Capital
The cooling appliances factory in Chuzhou (China) is elevated to the ranks of “Environmental
High Tech Enterprises” by the China Environment Science Association
1997 The Bundesverband der Deutschen Industrie e.V. (BDI), Germany’s industry federation, awards
its environmental innovation prize to Product Environment Analysis
1993 U.S. Environmental Protection Agency (EPA) honors BSH with Enviromental Award
Award-winning quality
BSH is uncompromising when it comes to quality – and that goes for every area, taking in not just products, but
processes and management too. It is BSH’s aspiration to offer its dealers and consumers the best possible quality, in
every area and at all times.
Quality is not something that happens overnight. It requires a long, sustained effort. Proof that BSH has understood this
message from the outset is provided by the many awards it has received for the quality of its products and services over
the years. It is also confirmed by customer satisfaction surveys conducted by independent institutes. German consumer
research organization GfK found, for instance, that BSH is ranked No. 1 for customer service. Customer satisfaction is
without doubt the most important accolade a manufacturer can receive. But not the only one.
Last year, for instance, BSH picked up the “German Logistics Prize” from the country’s logistics association. The award
went to BSH for its successful introduction of a “Total Customer Logistics" initiative which puts the focus of customer
service logistics wholly on customer satisfaction. In recent years this concept has not only reduced costs in spare parts
logistics but at the same time achieved enhanced customer satisfaction.
In the creative, artistic sphere too, the quality of BSH products has attracted attention and numerous awards. Home
appliances must after all convince consumers with their design. Take, for instance, the induction wok from Gaggenau,
which has been singled out as one of the top 100 design classics of the third millennium. BSH carried off 32 awards in
the Household/Living category in the 2006 “iF design awards”, picking up eight of the coveted “red dot” awards.
BSH also scores highly as an exemplary employer, and the magazine “karriere”, in conjunction with Corporate
Research Foundation, ranked BSH a prestigious fourth among Germany’s top employers. The ratings were based on
criteria such as opportunities for advancement, employee satisfaction and market position. In the categories of
employment and promotion opportunities, sustainability/business development, compensation and benefits and working
time models, BSH scored the maximum number of points.
Countless national prizes have also been won in countries where BSH operates subsidiaries. Such accolades are a
cause for justified pride, serving as clear vindication of the company’s approach.