BMW Group Corporate Governance

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The document discusses the structure and governance of BMW Group including its organs, shares, and adherence to the German Corporate Governance Code.

The three organs of BMW AG are the General Meeting, the Supervisory Board, and the Board of Management.

The purpose of the German Corporate Governance Code is to promote trust in the management and supervision of German public corporations among international and national investors, customers, employees and the general public.

BMW Group

Corporate Governance Code.


Principles of Corporate Governance.

Submitted by:
Ameya D.

INTRODUCTION
Basic information about the BMW Group

The designation BMW Group comprises Bayerische Motoren Werke


Aktiengesellschaft (abbreviated to BMW AG) together with its
affiliated companies. BMW AG was founded in the year 1916. The
companys registered office is located in Munich and the Company is
registered with District Court of Munich under the number HRB
42243. The object of the Company is primarily the manufacture and
sale of engines and all vehicles equipped with engines.
As a German stock corporation governed by German stock
corporation law BMW AG has three organs: The General Meeting, the
Supervisory Board and the Board of Management. Their powers and
duties are set out in the German Stock Corporation Act and BMW
AG's Articles of Association, the full text of which is published on the
BMW Group's website. As the Company's owners, the shareholders
exercise their rights in the General Meeting.
The Board of Management manages the Company under its own
responsibility. As part of a dual leadership system, the Board of
Management is advised and supervised by the Supervisory Board.
The Supervisory Board appoints the members of the Board of
Management and, if there is good cause, can remove them from
office at any time. The Board of Management keeps the Supervisory
Board informed and reports to it regularly, without delay and
comprehensively according to the principles of diligent and accurate
accountability in accordance with the law and the reporting duties
laid down by the Supervisory Board. For certain important
transactions the Board of Management requires the consent of the
Supervisory Board. However, the Supervisory Board is not
authorized to take any management measures.
In accordance with the provisions of the German Co-Determination
Act BMW AG's Supervisory Board consists of ten shareholder
representatives elected by the General Meeting and ten employee
representatives elected by the employees.

BMW AG's shares are listed on, inter alia, the regulated market of
the Frankfurt Stock Exchange, Segment Prime Standard. The shares
are bearer shares, each with a par value of 1 euro.

German Corporate Governance Code


The Government Commission established for this purpose for the
first time on 26 February 2002 introduced the German Corporate
Governance Code and was most recently updated in the version of
18 June 2009. It sets out the main statutory regulations for the
organization of German listed companies and contains
internationally and nationally recognized standards for good and
responsible governance. The purpose of the code is to promote the
trust of international and national investors, customers, employees
and the general public in the management and supervision of
German public corporations.

The Corporate Governance Code of the BMW Group


In conjunction with the adoption of the German Corporate
Governance Code by the German Government Corporate
Governance Code Commission, the Board of Management and
Supervisory Board of Bayerische Motoren Werke Aktiengesellschaft
adopted a corporate governance code for the BMW Group for the
first time on 3 December 2002, based closely on the German
Corporate Governance Code. In line with the German Corporate
Governance Code, it describes the important statutory framework
provisions and the more far- reaching principles of good and
responsible corporate governance applied by the BMW Group. The
aim is to provide shareholders and other stakeholders with a
comprehensive and stand-alone document covering the corporate
governance practices applied by the BMW Group. The Corporate
Governance Code of the BMW Group is normally reviewed annually
and revised to take account of recent developments, in particular

changes in legislation and new recommendations and suggestions


of the German Government Corporate Governance Code
Commission.

1. Shareholders and Annual General Meeting of BMW AG


1.1 Shareholders of BMW AG

The ordinary and preferred shareholders exercise their rights

at the Annual General Meeting.


Each share of common stock in BMW AG carries one vote.
There are no shares with multiple voting rights, preferential
voting rights ("golden shares") or maximum voting rights.
Except for voting rights in the General Meeting, non-voting
shares of preferred stock give the same rights as shares of
common stock. In accordance with the Companys statutes,
non-voting shares of preferred stock have a preferential right
in terms of the allocation of profit.

1.2 The Annual General Meeting of BMW AG

The Management Board submits the Annual Financial


Statements and the Consolidated Financial Statements to the
Annual General Meeting. The Annual General Meeting resolves
on the appropriation of net profit and the discharge of the acts
of the Board of Management and the Supervisory Board. It
elects the shareholders' representatives to the Supervisory

Board and the auditors.


The Annual General Meeting also resolves on amendments to
the Articles of Association, the objects of the Company and
significant corporate measures such as the conclusion of
Control and Profit and Loss Transfer Agreements, the issue of

new shares, convertible bonds or bonds with warrants and the


authorization to purchase own shares.
As a general rule, when new shares are issued, shareholders
have pre-emptive rights corresponding to their share of issued

capital.
Each person satisfying the participation requirements set out
in German law and the Companys Articles of Incorporation
relating to notice of participation at the Annual General
Meeting and proof of share ownership, is entitled to
participate in the Annual General Meeting, to take the floor on
matters on the agenda and to submit relevant questions and

proposals.
The Chairman of the Supervisory Board chairs the meeting
and provides for the expedient running of the Annual General
Meeting. In this, the Chairman should be guided by the fact
that an ordinary general meeting should be completed after 4
to 6 hours at the latest.

1.3 Invitation to the Annual General Meeting of BMW AG, proxies

The Board of Management will convene the shareholders


Annual General Meeting at least once a year at which stage
the agenda of the meeting is made known. Shareholders who,
together, hold 5% of the issued capital are statutorily entitled
to demand that a General Meeting be convened and that the

agenda be extended.
The extension of the agenda can also be demanded by
shareholders who, together, hold shares with a par value of
500,000 or more provided that the statutory formalities are

complied with.
The Board of Management will post the reports and
documents required by law, including the Annual Report, on
the website of the BMW Group (www.bmwgroup.com) together

with the agenda.


BMW AG will inform all relevant domestic and foreign financial

services providers, shareholders and shareholders'


associations that the Annual General Meeting has been
convened and will distribute the documents relating to the

invitation to the meeting via electronic channels.


BMW AG will facilitate the personal exercising of shareholders'
voting rights. BMW AG will also assist the shareholders in the
use of proxies. The Board of Management will arrange for the
appointment of a representative to exercise shareholders'
voting rights in accordance with instructions; this
representative will also be reachable during the Annual

General Meeting.
The speech of the Chairman of the Board of Management will
be broadcast over the Internet.

2. Cooperation between the Board of Management and Supervisory


Board of BMW AG

The Board of Management and the Supervisory Board


cooperate closely and in a spirit of trust to the benefit of the

enterprise.
The Board of Management runs the business and bears
responsible for managing the group. It coordinates the group's
strategic approach with the Supervisory Board and, at regular
intervals, discusses the current state of strategy

implementation with the Supervisory Board.


For transactions of fundamental importance, the Supervisory
Board has stipulated specific transactions, which require the
approval of the Supervisory Board. This includes decisions or

measures, which are of fundamental strategic significance.


The provision of adequate information to the Supervisory
Board is the joint responsibility of the Board of Management

and Supervisory Board.


The Board of Management of BMW AG informs the Supervisory
Board regularly, without delay and comprehensively, of all
issues important to the group with regard to planning,

business development, risk situation, risk management and


compliance. The Board of Management points out deviations
of actual business development from previously formulated

plans and targets, indicating the reasons for such deviations.


The BMW Supervisory Board has laid down detailed
instructions covering the information and reporting duties of
the Board of Management. As a general rule, in the case of
reports required by dint of law, the Board of Management
submits its reports to the Supervisory Board in text form.
Documents required for decisions, in particular, the annual
financial statements, the consolidated financial statements
and the auditors' report will be sent to the members of the
Supervisory Board, to the extent possible, in due time before

the relevant meeting.


Good corporate governance requires an open discussion both
within the boards and between the boards. Full confidentiality
is of paramount importance. When the services of staff
members are called upon, the members of the two boards are
responsible for ensuring that the relevant staff members

observe the requirement of confidentiality.


The representatives of the shareholders and of the employees
prepare the Supervisory Board meetings separately, and if

need be, together with members of the Board of Management.


When necessary, the Supervisory Board of BMW AG meets

without the Board of Management.


In the event of the receipt of a takeover offer, the Board of
Management and Supervisory Board will submit a statement
of their reasoned position so that the shareholders can make

an informed decision on the offer.


After the announcement of a takeover offer, the Board of
Management will not take any actions outside the ordinary
course of business that could prejudice the success of the
offer unless the Annual General Meeting has specifically
authorized the Board of Management, or the Supervisory
Board has given its approval. In making their decisions, the

Board of Management and Supervisory Board are obliged to


act in the best interests of the shareholders and of the

enterprise.
In appropriate cases, the Board of Management will convene
an Extraordinary General Meeting at which shareholders can

discuss the takeover offer and decide on corporate actions.


The Board of Management and the Supervisory Board are
required to comply with the rules of proper corporate
governance. If they violate the due care and diligence owed
by prudent and conscientious board members, they are liable
to BMW AG for damages. In the case of business decisions, the
duty owed is deemed not to have been violated if the Board of
Management or Supervisory Board member could reasonably
have assumed that he/she was acting for the benefit of the
enterprise on the basis of appropriate information (the so-

called business judgment rule).


Appropriate excesses have in each case been agreed under a
D&O insurance for the members of the Supervisory Board and
the members of the Board of Management. The statutory
requirements regarding the amount of the excess payable by
members of the Board of Management and which will apply to
existing insurance policies as of 1 July 2010 will be complied

with.
The provision of loans by BMW AG or group subsidiaries to
members of the Board of Management and the Supervisory
Board or their relatives requires the approval of the

Supervisory Board.
The BMW AG's Board of Management and Supervisory Board
report each year on the group's corporate governance in the
Annual Report (Corporate Governance Report). Said Report
forms an integral part of the declaration on the Company's
corporate governance. This includes an explanation of any
deviations from the recommendations of the German
Corporate Governance Code. The Company will ensure that

each Declaration of Compliance to the German Corporate


Governance Code is available on its website for a period of
five years.
3. The Board of Management of BMW AG
3.1 Tasks and responsibilities

The Board of Management manages the enterprise under its


own responsibility with the objective of creating sustainable
added value and in the enterprise's best interests, i.e. taking
into account the interests of the shareholders, the employees

and other groups associated with the group (stakeholders).


The Board of Management develops the enterprise's strategy,
coordinates it with the Supervisory Board and ensures its

implementation.
The Board of Management ensures that all provisions of law
and internal regulations are abided by and works to achieve

their compliance throughout the group.


The Board of Management ensures that an appropriate risk
management and risk controlling system is in place
throughout the group.

3.2 Composition and compensation of the Board of Management

The Board of Management consists of several persons with


one chairman. Terms of reference are in place to regulate
cooperation within the Board of Management, in particular the
allocation of tasks and responsibilities between the individual
members, the specification of matters to be dealt with by the

full board and voting procedures for board resolutions.


Upon proposal by the Personnel Committee, the plenary
Supervisory Board fixes the total compensation of the
individual members of the Board of Management and resolves
and regularly reviews the compensation system applicable to
the Board of Management.

The plenary Supervisory Board based on performance criteria


and taking into account any remuneration from group
companies fixes the compensation of the members of the
Board of Management. The principal criteria for determining
the appropriateness of compensation are the nature of the
tasks allocated to each member of the Board of Management,
an assessment of the performance of those tasks as well as
the economic situation, performance and outlook of the BMW
Group as well as the customariness of the compensation
taking into account the comparable environment and the
compensation structure that otherwise applies in the

Company.
In the event that the Supervisory Board uses an external
compensation expert to assess the appropriateness of the
compensation, care shall be taken that said expert is

independent of the Board of Management and of the group.


The compensation structure is geared towards a sustainable
corporate development. The monetary compensation of
members of the Board of Management comprises fixed and
variable components. The Supervisory Board ensures that in
principle the variable compensation components are assessed
on a multi-year basis and that its composition takes into
account positive as well as negative developments. The
variable compensation components are based on exacting,
relevant comparators. Performance targets and comparators
are not amended retrospectively. Upper limits are agreed for
all members of the Board of Management. Furthermore, the
Supervisory Board ensures that all compensation components
are reasonableindividually and altogether and do not give rise

to any inducement to enter into any unreasonable risks.


No contractual promises of severance pay exist for the event
of any early termination of the services as a member of the
Board of Management without good cause; nor do any
promises exist for the event of early termination of the

services as a member of the Board of Management as a

consequence of a change of control.


A description of the compensation system, presented in an
easily comprehensible manner, will be published on the BMW
Group website and in the Compensation Report (included in

the Corporate Governance Report within the Annual Report).


The Chairman of the Supervisory Board at the Annual General
Meeting thereto will explain the principles of the

compensation system and any changes.


The total compensation of each individual member of the
Board of Management will be disclosed in a Compensation
Report, broken down into fixed and variable compensation
components and stating names, which Compensation Report
will also explain the compensation system in an easily

comprehensible manner.
The same applies with regard to promises of payments or
benefits in the event of early or regular termination of the
services as a member of the Board of Management, which
have been granted or amended during the financial year.

3.3 Conflicts of interest

During their period of employment for BMW AG, members of


the Board of Management are subject to a comprehensive

non-competition clause.
Members of the Board of Management and employees may
not, in connection with their work, demand nor accept from
third parties payments or other advantages for themselves or
for any other person, nor grant third parties unlawful

advantages.
The enterprises best interests bind members of the Board of
Management. No member of the Board of Management may
pursue personal interests in his decisions or take advantage of

business opportunities intended for the enterprise.


All members of the Board of Management must disclose
conflicts of interest to the Supervisory Board without delay

and inform the other members of the Board of Management


thereof. All transactions between the enterprise and members
of the Board of Management (including related parties) must
comply with standards customary in the sector. Important

transactions require the approval of the Supervisory Board.


Members of the Board of Management may only undertake
ancillary activities, in particular supervisory board mandates
outside the BMW Group, with the approval of the Supervisory
Boards Personnel Committee.

4. The Supervisory Board of BMW AG


4.1 Tasks and responsibilities

The task of the Supervisory Board is to advise regularly and


supervise the Board of Management in the management of
the BMW Group. It is involved in all decisions of fundamental

importance for the BMW Group.


The Supervisory Board appoints and dismisses the members
of the Board of Management. When composing the Board of
Management the Supervisory Board shall also have regard for
diversity. Together with the Board of Management, it ensures
that long-term successor planning is in place. The Supervisory
Board has delegated the preparation of appointments to the
Board of Management to a committee (Personnel Committee)
which also handles the terms and conditions of employment

contracts including compensation.


For first-time appointments the maximum possible
appointment period of five years is not the general rule. A reappointment prior to one year before the end of the
appointment period with a simultaneous termination of the
current appointment only takes place under special
circumstances. An age limit for members of the Board of

Management has been specified.


The Supervisory Board has issued terms of reference for itself.

4.2 Tasks and authorities of the Chairman of the Supervisory Board

The Chairman of the Supervisory Board coordinates work


within the Supervisory Board, chairs its meetings and handles

the external affairs of the Supervisory Board.


The Chairman of the Supervisory Board simultaneously chairs
the Personnel Committee (which handles contracts with
members of the Board of Management), the Presiding Board
(which, amongst other tasks, prepares the Supervisory Board
meetings) and the Nomination Committee (which proposes
suitable shareholder-side candidates for inclusion on the
Supervisory Boards proposals for election to the Supervisory
Board at the Annual General Meeting). The Chairman of the
Supervisory Board does not, however, chair the Audit

Committee.
The Chairman of the Supervisory Board maintains regular
contact with the Board of Management, in particular, with the
Chairman of the Board of Management and consults on the
strategy, business development and risk management of the
BMW Group. The Chairman of the Supervisory Board is
informed by the Chairman of the Board of Management
without delay of important events, which are essential for an
assessment of the situation and development of the BMW
Group as well as for the management of the BMW Group. The
Chairman of the Supervisory Board then informs the
Supervisory Board and, if required, convenes an extraordinary
meeting of the Supervisory Board.

4.3 Formation of committees

The Supervisory Board has set up committees with sufficient


expertise based on the specific requirements of the BMW
Group. Such committees serve to increase the efficiency of
the Supervisory Board's work and the handling of complex
issues. The committee chairpersons report regularly to the

Supervisory Board on the work of the committees.


In addition to the statutorily required Mediation Committee,
the Supervisory Board has also set up an Audit Committee.
This committee deals in particular with issues relating to
financial reporting, the internal control system, the risk
management system, internal audit arrangements,
compliance, auditor independence, the engagement of the
external auditor, compliance with the audit engagement, the
determination of specific areas of audit emphasis and the fee
agreement with the auditor. The Chairman of the Audit
Committee is required to have specific know-how and
experience in applying financial reporting standards and
internal control procedures. He/she is independent and may
not be a former member of the Board of Management of the

Company, whose appointment ended less than two years ago.


The Supervisory Board has also established a Nomination
Committee, comprising solely representatives of the
shareholders, which has the task of proposing suitable
shareholder-side candidates for inclusion on the Supervisory
Boards proposals for election to the Supervisory Board at the
Annual General Meeting.

4.4 Composition and compensation of the Supervisory Board

For nominations for the election of members of the


Supervisory Board, care is taken that the Supervisory Board is
composed, at all times, of members who have the required
knowledge, abilities and expert experience to complete their
tasks properly. Attention is also paid to the international
activities of the BMW Group, potential conflicts of interest, the
age limit stipulated for members of the Supervisory Board and

to diversity.
The ability of the Supervisory Board to supervise and advise
the Board of Management independently is also aided by the
fact that the Supervisory Board is required, based on its own

assessment, to have a sufficient number of independent


members. A Supervisory Board member is considered to be
independent if that member does not have any business or
personal relationships with the BMW Group or with the Board
of Management of BMW AG which might give rise to a conflict
of interests. No more than two former members of the Board
of Management may be members of the Supervisory Board.
Supervisory Board members may not exercise directorships or
similar positions or advisory tasks for important competitors of

the BMW Group.


Election to the Supervisory Board is carried out in the form of
an individual vote. An application for a court appointment of a
Supervisory Board member is required to be limited in time to
the next Annual General Meeting. Shareholders will be
informed of proposals for candidates for the position of the

Chairman of the Supervisory Board.


Members of the Board of Management may not become
members of the Supervisory Board before the expiry of two
years following the end of their appointment unless they are
elected upon the proposal of shareholders, who hold more
than 25% of the voting rights in the Company. In the latter
case, a move to the chairmanship of the Supervisory Board
shall be deemed to be an exception that must be justified to

the Annual General Meeting.


All members of the Supervisory Board of BMW AG must ensure
that they have sufficient time to perform their mandate. If
members of the Supervisory Board of BMW AG are also
members of the Board of Management of a listed company,
they may not accept more than a total of three non-BMW

Group supervisory board mandates for listed companies.


The compensation of the members of the Supervisory Board is
specified in the Articles of Association of BMW AG and takes
into account the responsibilities and scope of tasks of the
members of the Supervisory Board as well as the economic

situation and performance of the BMW Group. Chairmanship


and deputy chairmanship of the Supervisory Board as well as
chairmanship of and membership in committees are also
taken into account. Members of the Supervisory Board receive
fixed as well as performance-related compensation. The
amount of compensation will be disclosed in the Corporate
Governance Report for each individual member, analyzed by

component.
If a member of the Supervisory Board takes part in less than
half of the meetings of the Supervisory Board in a particular
financial year, this will be disclosed in the Annual Report.

4.5 Conflicts of interest

The enterprises best interests bind each member of the


Supervisory Board. The members of the Supervisory Board
may not pursue personal interests in their decisions or take
advantage of business opportunities intended for the

enterprise.
Each member of the Supervisory Board will inform the
Supervisory Board of any conflicts of interest which may
result from a consultant or directorship function with

clients, suppliers, lenders or other business partners.


In its report, the Supervisory Board will inform the Annual
General Meeting of any conflicts of interest, which have
occurred, and how they were handled. Material conflicts of
interest and those, which are not merely temporary in
nature, will result in the termination of the mandate of the

relevant Supervisory Board member.


Advisory and other service agreements and contracts for
work between BMW AG and a member of the Supervisory
Board require the approval of the Supervisory Board's
Personnel Committee.

4.6 Examination of efficiency

The Supervisory Board of BMW AG examines the efficiency of


its activities on a regular basis.

5. Transparency

The Board of Management of BMW AG will, without delay, give


notice of any insider information directly affecting BMW AG,

unless exempted in specific cases from this requirement.


As soon as BMW AG becomes aware of the fact that any party
has acquired 3%, 5%, 10%, 15%, 20%, 25%, 30%, 50% or 75%
of the voting rights in the Company, or if these thresholds are
exceeded or no longer met as a result of a purchase, sale or
other transaction, the Board of Management will disclose this

fact without delay.


BMW AG treats all shareholders equally in respect of the
provision of information. All new facts made known to financial
analysts and the Company without delay will also disclose

similar addressees by BMW AG to the shareholders.


The Company uses suitable communication media, such as
the Internet, to inform shareholders and investors in a prompt

and equitable manner.


Any information, which the Company discloses abroad in line
with corresponding capital market law provisions are also, be

disclosed in Germany without delay.


The purchase or sale of shares in BMW AG or related financial
instruments, in particular derivatives, by Board of
Management and Supervisory Board members or by other
persons with senior management responsibilities, who have
regular access to insider information, or by related parties of
such parties, must be notified without delay to BMW AG which
will report the information without delay. Purchase and sale
transactions of this group of persons exceeding EUR 5,000 per

calendar year must be notified.


The ownership of shares in BMW AG or related financial
instruments by individual members of the Board of

Management and Supervisory Board are reported in the


Corporate Governance Report where these directly or
indirectly exceed 1% of the stock issued by BMW AG. If the
entire holdings of all members of the Board of Management
and Supervisory Board exceed 1% of the stock issued by BMW
AG, the total amount will be disclosed separately for the Board

of Management and Supervisory Board.


As part of the groups regular information policy, the dates of
essential regular publications (including the Annual Report,
interim financial and quarterly reports) and the date of the
Annual General Meeting will be published sufficiently in

advance in a "financial calendar."


Information published by BMW AG about the BMW Group will
also be accessible via the BMW Groups website. Publications
are also available in English.

6. Financial Reporting and Audit


6.1 Financial Reporting

Shareholders and third parties are informed mainly by means


of the group financial statements. During the financial year,
information is also provided in the form of interim financial
reports (six-month report, quarterly reports). The group
financial statements and the abbreviated group financial
statements included in the six-month and quarterly reports
are drawn up in accordance with applicable international
financial reporting standards. For corporate law purposes
(calculation of dividend, shareholder protection), annual
financial statements are still drawn up in accordance with
national regulations (German Commercial Code), which also

form the basis for taxation.


The consolidated financial statements are drawn up by the
Board of Management and examined by the group auditor and
Supervisory Board. The Audit Committee with the Board of

Management before publication discusses the six-month and


quarterly reports. In addition, as part of the tasks mandated to
them by law, the Financial Reporting Enforcement Panel and
the German Financial Supervisory Authority are entitled to
examine compliance with relevant financial reporting
standards (Enforcement). The group financial statements are
made publicly accessible within 90 days of the end of the
financial year; interim reports are made publicly accessible

within 45 days of the end of the reporting period.


Specific details about securities-related incentive schemes of
the Company shall be stated in the Corporate Governance

Report if the Company uses any such schemes.


BMW AG publishes a list of companies in which it has a
shareholding that are not of minor importance to the group.
The list includes the name and registered office of each
company, the shareholding percentage, the amount of
shareholders equity and the net profit/loss for the most recent

financial year.
Details of relationships with shareholders considered to be
related parties pursuant to the applicable accounting
regulations are disclosed in the group financial statements.

6.2 Audit

Prior to submitting a proposal for election, the Audit


Committee will obtain a statement from the proposed auditor
stating whether there are any business, financial, personal
and other relationships between the auditor, its executive
bodies and its employees on the one hand, and the BMW
Group and members of its executive bodies on the other hand,
that could call the auditors independence into question. The
Audit Committee is also responsible for ensuring that this
statement also includes information about the scope of other
services performed by the auditor for the BMW Group during
the past year, in particular in the field of consultancy, or which

are contracted for the following year.


The Audit Committee arranges for the auditor to inform the
Chairman of the Audit Committee immediately of any grounds
for disqualification or impartiality arising during the audit,

unless such grounds are eliminated without delay.


The Audit Committee engages the auditor to carry out the
audit, concludes a fee agreement and arranges for the auditor
to report without delay on all facts and events arising during
the performance of the audit, which are relevant to the tasks

of the Supervisory Board.


The Audit Committee arranges for the auditor to inform the
Supervisory Board and/or include details in the auditor's longform report of facts, which come to light during the audit,
which could entail the Board of Management and Supervisory
Board making an incorrect assertion in their statement on the

German Corporate Governance Code.


The auditor takes part in the deliberations of the Audit
Committee and Supervisory Board on the annual financial
statements and consolidated financial statements and reports
on the significant results of the audit.

SOCIAL RESPONSIBILITY. OVERVIEW.


Responsibility for employees today and tomorrow

Programs promoting work-life balance


Efficient work structures / flexible work hour systems
Demographic change project today for tomorrow
Leadership and qualification
Health management 2020
Diversity

Value orientation in the supply chain

Sustainability requirements as part of purchasing conditions


Selection of suppliers based on sustainability criteria

Societal Commitment

Diverse commitment with a focus on long-term approaches

that are internationally transferrable


Corporate Volunteering
Involvement of foundations

Employees. Key issue Demographic Change.

Physical ability of older workers does not necessarily decrease

over time.
It can be improved and / or stabilized with effective
countermeasures.

Influencing options

Individual healthcare/ nutrition, exercise


Qualification and leadership behavior
Ergonomics, individual working time, flexibility
Social contacts

Social Engagement: Alignment, principles and core topics

Societal programmes for more than 20 years


Objective: shaping the relevant social developments
Not sponsoring, but commissioning body/ initiator of social

programmes
Principle of providing self-help
Support at the companys sites for the community through

donations and contributions in kind (Community relations)


Core themes of societal commitment
o Education for children and youngsters- traffic safety,
mobility, energy and clean energy, automotive
production and natural scientific promotion
o Intercultural understanding BMW Group Award for
intercultural engagement honors outstanding projects
o Road safety school route maps for infant classes;
primary school children in Munich and Berlin get their
own personal school route map, designed to ensure that
they can get safely to school
o Programmes against HIV/AIDS AID for AIDS health

service with extensive care for employees and their


families medication, psychological counseling,
nutrition, lifestyle education, re-integration

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