Markus Klier

CSR is Taking Hold in Germany’s business community

Germany is a country where climate protection, environmental aims and social responsibility are historically under the domain of government institutions. Germans often like to sit back and let "Vater Staat" do the job. Personal responsibilities in these fields are proclaimed, but rarely met with consistent action. The German business community was much the same for decades. However, this is changing rapidly now.

In the last couple of years the German business community is waking up to the fact that corporate social responsibility (CSR) is not an "extra," but a way of conducting core business. Generating profits while protecting the environment and ensuring social compatibility is a standard operating procedure. These days, environmental sustainability and CSR are at the top of the agenda for German corporate public relations experts. A 2007 BDI survey (Federation of German Industries) revealed that almost percent of businesses polled believe companies should take an active role on social and environmental issues.

Currently, a few German corporations are becoming world leaders in the CSR community. Global consulting firm SustainAbility reports Adidas, Henkel, and KarstadtQuelle are among the top companies practicing sustainable business worldwide. According to Scoris, three companies listed in the Dax-30 (30 major companies trading on the Frankfurt Stock Exchange) Deutsche Telekom, Henkel, and BMW lead the way in sustainable business practices.

A June 2008 Goethe-Institut article detailed that some of Germany’s large global companies are taking the lead on sustainability practices. BMW South Africa now pays for medical care and offers equal wages for all workers regardless of race. Employee productivity has soared wince these practices were implemented.

Adidas, the sports equipment manufacturer, took the initiative to upgrade working conditions for its direct employers as well as its supplier work force. Adidas takes responsibility for insuring that suppliers adhere to its strict environmental and fair labor standards.  Productivity, public image, and employee satisfaction have substantially improved as a result of these changes.

Sustainability pays off ... in the end!

The European Union as a whole is a mover and shaker in the global climate challenge and socially responsible movements. No longer only the domain of government regulation and intervention, pressure has been on the German business community since 2006 by the German public to practice environmental and socially responsibility business. The Goethe-Institut reports in its publication “Nachhaltigkeit,” that the Deutsche Vereinigung für Finanzanalyse und Asset Management (DVFA), the German Association for Financial Analysis and Asset Management, is working furiously over the past year to establish standard criteria for what specifically constitutes corporate social responsibility and environmentally sustainable practices. The good news is that the German business world is no longer sitting back on its laurels waiting for “Vater Staadt” to do this for them. German consumers and citizenry are calling for a change from the corporate world.

mk 20080907

For previous articles please click archives
 

Markus Klier is a Software Entrepreneur and Educational Counselor from the vibrant German capitol of Berlin. He contributes the Central European perspective to the world of GoodB. Markus is a former German filmmaker and Political Science commentator. He holds a Master's in Political Science from Frei Universitat in Berlin. He is currently a marketing maverick of cutting-edge Central European technology.