Study: Corporate Citizenship | Page 13

13 04 CORPORATE CITIZENSHIP OF DAX 30 COMPANIES 5 GENERAL OBSERVATIONS STRATEGY The Corporate Citizenship strategy sets the scene for all related activities and is essential for successful Corporate Citizenship engagement. In our view, best-in-class Corporate Citizenship strategies exhibit a distinct focus on a core subject matter. This core topic and its related activities are connected to the company’s core competencies to ensure the best possible leverage of skills and resources, and are embedded in an effective overall social value chain that includes other members of society. Some companies are hesitant to engage in areas close to their core business as they fear that this engagement could be interpreted as “greenwashing” or “whitewashing”. Obviously, Corporate Citizenship may not be misused to “whitewash” any misconduct. However, we encourage companies to engage in areas they have the most expertise in to improve people’s lives as effectively as possible. We also suggest companies should show a high level of transparency on their engagement to demonstrate that their activities are legitimate. Looking at the results of our analysis, it is apparent that most companies have not yet strategically planned their Corporate Citizenship approach. In general, they appear to work in areas of engagement adopted over time, as opposed to strategically choosing them. Missing link between corporate expertise and social engagement Despite their potential to leverage knowledge and expertise to foster social change, we see that two thirds of DAX 30 companies engage in activities that are unconnected to the company’s strengths and characteristics. For instance, an expert in technology solutions supports the installation of musical objects, while another DAX 30 company active in the mobility sector funds dancing classes. These activities certainly represent positive societal contributions, yet the bottom line is that they fail to draw on the company’s core competencies and thereby fail to unlock the full potential to achieve social impact. >> LINK OF CORPORATE CITIZENSHIP ACTIVITIES TO DAX 30 COMPANIES’ CORE BUSINESS 6 23% 33% engage in activities WITHOUT THEMATIC OR GEOGRAPHIC LINK to their core business support activities FULLY LINKED to their core business 43% support activities WITH A THEMATIC OR GEOGRAPHIC LINK to their core business 5 All information used in this analysis was derived from extensive research of publicly available data and information, namely corporate publications such as press releases, annual reports and sustainability reports, and complemented by the results of an investor relations survey of all DAX 30 companies. 6 Rounding differences