Companies pay taxes, provide jobs and, with their products or services, often directly help to satisfy needs of local people. They also use the infrastructure of the region in which they operate and benefit from good roads, well-trained people, cultural diversity and the fact that public safety is ensured. Since many companies know that they can only continue to be successful in the medium and long term in a good environment, they get involved themselves with local social and environmental matters beyond their core business activities. In so doing, they strengthen the local community’s ability to proactively handle potential crises and quickly develop solutions to problems together.
What needs to be borne in mind?
This criterion relates to contributions to sustainable development outside of your company’s core business areas. Outline your involvement in local projects and name any support measures through which you assume responsibility towards society. This may be donations to sports clubs, cultural events or social institutions, or partnerships with schools or higher education institutions that involve offering trainee positions to young people or increasing the practical relevance of study courses. Another fundamental contribution to a sustainable infrastructure and corporate citizenship is your company paying corporation taxes in full in the country in which your business is conducted. If applicable, please also consider your company foundation and any special programmes that facilitate corporate volunteering among your employees.
Report on the strategies and concrete measures with which your company contributes to corporate citizenship, in particular by championing social, environmental, cultural and economic issues within municipalities or regions above and beyond its core business and seeking dialogue with individuals, institutions and associations at the municipal and regional levels.
The term corporate citizenship refers to the protection and development of local communities in the regions in which your company is primarily active.
Key Performance Indicator GRI SRS-201-1: Direct economic value generated and distributed
a. Direct economic value generated and distributed (EVG&D) on an accruals basis, including the basic components for the organization’s global operations as listed below. If data are presented on a cash basis, report the justification for this decision in addition to reporting the following basic components:
i. Direct economic value generated: revenues;
ii. Economic value distributed: operating costs, employee wages and benefits, payments to providers of capital, payments to government by country, and community investments;
iii. Economic value retained: ‘direct economic value generated’ less ‘economic value distributed’.
b. Where significant, report EVG&D separately at country, regional, or market levels, and the criteria used for defining significance.
Reporting in line with the German CSR Directive Implementation Act
(German legislation implementing the Directive 2014/95/EU)
If you also wish to use your Code declaration to comply with the reporting obligation in accordance with the CSR Directive Implementation Act (CSR-RUG), the checklist below will give you guidance regarding how the Code Office checks it for formal completeness. You can provide the relevant information concerning social matters under this Code criterion. Questions set in italics are already covered in your responses to the corresponding Code aspects.
1. Report on the management policy pursued:
a. Goals and planned goal achievement time frames.
b. How corporate governance is incorporated into the policy.
c. Strategies and concrete measures for achieving the goals (criterion 18, aspect 1).
d. Internal processes for monitoring implementation of the measures.
2. Report on the results of the policy:
a. Whether and to what extent previous goals were achieved.
b. Whether and how it is determined that the policy needs modifying and what conclusions are then drawn.
3. Report on the risks:
a. How the risks were identified and the material risks were filtered out (due diligence processes).
b. Material risks arising from your business activities that are highly likely to have a negative impact on community environment.
c. Material risks arising from your business relations that are highly likely to have a negative impact on community environment.
d. Material risks arising from your products and services that are highly likely to have a negative impact on community environment.