Values and Principles of the Körber Group
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1 Values and Principles of the Körber Group
2 Contents 01 Preface 03 Management and Structure of the Group 07 Strategies and Economic Objectives 11 Entrepreneurial Activities 15 Social Responsibilities Preface The principles of companies and groups are largely governed by laws and regulations. It goes without saying that we will abide by these all over the world. Likewise, creating and maintaining material values is just as essential in the business world. However, these are not the types of values and principles we are referring to in the statements that follow. Values and Principles of the Körber Group describes codes of conduct and ethical values, which we believe to be important and worthwhile, and which should be taken into consideration in decision making. All the same, we cannot nor do we wish to evade the rules and conditions of global business. Both material and ethical values are the focus of our attention. We are a Group which must assert itself against international competition, remain flexible and operate profitably in order to endure. As our sole shareholder, the Körber Foundation enables us to pursue long-term strategies and sustain our financial and entrepreneurial independence. This is a precious asset which is worth every effort to preserve. Hamburg, September 2006 Executive Board 01
3 Management and Structure of the Group 02 03
4 Management and Structure of the Group The Executive Board of Körber AG manages the Group. Within its legal possibilities the Executive Board provides the divisions and business sectors with capital resources and develops the overall strategy for the Group. Furthermore, it makes decisions regarding the combination of functions and fosters teamwork within the Group in order to realize synergies. The framework of rules for all companies in the Körber Group is defined in the Group Guidelines. The divisions or business sectors can be divided into business units. Their structures and locations are designed to meet the requirements of their respective markets, to stand out amongst competitors, and to perform with the utmost efficiency. Working within the overall strategy, they set their own strategies and objectives and are responsible for the implementation and attainment. The Körber AG holds the share capital of the divisions and business sectors. These concentrate their activities on the markets in their own and in related business areas
5 Strategies and Economic Objectives 06 07
6 Strategies and Economic Objectives As owner of the Group as well as in its role as shareholder, the Körber Foundation requires that we strive for sustained economic success and increase our corporate value. We fulfill these requirements and develop strategies with ambitious goals. By meeting these goals, we are able to grow profitably and increase our corporate value while at the same time remaining financially independent. The Group s successful long-term development therefore takes priority over maximizing short-term profits. Our strategies may involve buying products, knowhow or companies, or entering into alliances and the financial participation in other companies. Our strategies may also lead us to discontinue certain services and products or to sell companies. If unprofitable parts of the Group cannot restore their competitiveness within a reasonable length of time and achieve sustained profitability, they have to be sold or closed down in order to prevent damage or long-lasting risks to the Group. The strategies of our divisions and business sectors are based on the needs of our worldwide customers. Making an exact analysis of their requirements and offering corresponding products and services at competitive prices are part and parcel of our strategic measures
7 Entrepreneurial Activities 10 11
8 Entrepreneurial Activities Entrepreneurial activities are aimed at ensuring sustained economic success. We expect everyone to adopt an entrepreneurial approach, but particularly those who bear managerial responsibility within the Group. This approach involves: concentrating on ongoing business in order to reach targets detecting and benefiting from economic opportunities taking risks once they have been carefully assessed and deemed acceptable abandoning projects or structures that are identified as unsustainable detecting, disclosing and removing weak points and unproductiveness possessing the appropriate qualifications for the respective specialist and managerial functions. Managers are required to examine the existing situation at regular intervals and make adjustments or changes as necessary. We also expect all employees without managerial responsibilities to adopt an entrepreneurial approach by thinking beyond their immediate area of responsibility, pointing out potential opportunities and risks and, with the approval of their superior, taking the initiative
9 Social Responsibilities 14 15
10 Social Responsibilities Our business activities are based on social principles, which we feel an obligation to uphold when interacting with our employees, customers, suppliers and other business partners as well as with society. Some of these principles are universal, others differ regionally and depend on the respective culture, mentality and legislation. We tolerate, accept and uphold the different local values in all the countries where we do business, and in those in which we maintain business relationships. An important objective is the use of our available capital to provide employment for people. Their work must provide added value which leads to the expected profits. Sustained profitable development of the Group is a prerequisite in order that we can fulfill and cultivate social responsibilities. It is important to us that our employees are always treated fairly. This includes: keeping employees informed about the situation of their company, their division and the whole Group, including opportunities and possible risks acknowledgement of individual achievements and their appropriate remuneration regular employee performance reviews talking openly about possible shortcomings and, where necessary, the need to obtain additional qualifications providing timely information about changes in jobs and requirements
11 Employees are also responsible for furthering their qualifications. The company can offer support and advice. The companies in our Group are not responsible for possible career risks. In dire emergencies, however, aid can be provided for those in need. We make it a priority to ensure that every employee in our Group is treated as a respected human being and not just as a resource. It is also important for society that our companies continue to operate successfully and profitably at their respective locations. Society benefits from our business activities, both through employment opportunities and from the taxes paid at our locations. Through our success we increase the Group s value for our owner, the Körber Foundation. The Körber Foundation s Forum for Initiative organizes numerous charitable projects. With no affiliation to any political party and no commercial objectives to pursue, the Körber Foundation initiates and realizes projects to improve relations between countries and cultures. It is committed to promoting education and the sciences, encourages citizenship and culture, and maintains social facilities. The Körber Foundation pursues its operative foundation work independently of our business activities within the Körber Group. At the same time, however, we maintain an active interest in its goals and projects and support its work
12 Körber AG Nagelsweg Hamburg, Germany Tel.: Fax: September 2006
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