Study: Corporate Citizenship | Page 4

04 CORPORATE CITIZENSHIP TYPOLOGY OF DAX 30 COMPANIES THE DONORS THE SPONTANEOUS $ E.ON Commerzbank Fresenius SE RWE Siemens ThyssenKrupp range of resources, including financial and non-financial, and be driven by a dedicated organization with clear responsibilities to steer its activities. Furthermore, good Corporate Citizenship should be impact-driven and measured against the results the company intends to achieve. According to this conviction, we analyzed the Corporate Citizenship activities of DAX 30 companies using similar parameters to those we would apply to analyze their core business. And we compared the Corporate Citizenship activities of DAX 30 companies with German and international good practice examples to illustrate the vast and yet often untapped potential of Corporate Citizenship in tackling today’s societal challenges. Our analysis shows that every DAX 30 company engages in Corporate Citizenship activities and is therefore in general aware of the need for corporations to contribute to society and help to resolve its current challenges. However, even though our analysis reveals that more than EUR 500 million are donated annually to societal causes, only a few DAX 30 companies take a strategic approach to Corporate Citizenship and fully leverage their resources and skills. 83 percent engage in three or more topics, showing a rather limited focus. Another 83 percent engage in the area of education e.g. by financing a new building or a lecture series. Although certainly positive, this is not connected to the companies’ core competencies and does not build on their strengths. Furthermore, only 17 percent report on the results of their activities with resilient key performance indicators (KPIs), indicating a lack of results orientation. One DAX 30 company even stated it was “not aiming at achieving so-called results”. Overall, only one company, E.ON, is classified as “Spontaneous”, i.e. without a discernible Corporate Citizenship strategy. Five companies are categorized as “Donors”, whose Corporate Citizenship approach is associated with a rather diluted focus, short-term resource planning and the assumption that their monetary donations are being used wisely by NGOs. Next to this group are 17 companies whose Corporate Citizenship approach can be considered “Committed”. They are addressing a number of challenges long-term and have allocated considerable resources for this purpose. However, they tend to be not very ambitious when it comes to results orientation. Seven companies have a strategic Corporate Citizenship set-up with well-defined focus areas and an allocation of substantial resources that are geared towards achieving measurable results.