Sustainability as a business principle

The Beetles have every reason to smile here, in the Federal State of Tennessee: round about the automobile plant on Volkswagen Drive in Chattanooga they can enjoy life longer than anywhere else because when constructing this plant, which has been granted the top ecological certificates, the roads were covered in a bright surface. This does not heat up so much, and attracts fewer bugs and insects at night so that the number of creatures squashed the next morning is correspondingly lower. That may sound cute – but it is also an effective contribution by VW towards protecting nature. In a programme lasting several years, for each of its locations the car manufacturer tested what effects the factories have on the surrounding biodiversity and how these might be reduced. The findings have been implemented in the “Green Factory” in Chattanooga.

Volkswagen has been setting standards worldwide since 2009 with definite environmental guidelines for all its brands and plants. When it comes to sustainable production and Corporate Social Responsibility (CSR), the car-maker from Wolfsburg is one of the forerunners in Germany. VW was one of the first to integrate such themes in its corporate culture in over ninety production plants worldwide. By 2015, investments of 50 billion euro are to be made in environmentally-friendly models, technologies and manufacturing plants, a visible sign of the company’s dedication to the cause.

Meantime more and more German companies abroad are taking social responsibility in a way similar to that of VW: investing to create jobs and enable higher social standards, to improve environmental protection and train employees. CSR can make an important contribution to a fairer kind of globalization, especially as public debate since the economic and financial crisis is increasingly asking what social and moral demands must be made of companies. For many companies in Germany, social and ecological consciousness is already lived practice, according to the current study by the Bertelsmann Foundation, CSR Worldwide – A Cross-Sectoral Comparison. In this study, the foundation examines how German companies from the six major sectors of automobile manufacturing, banking and insurance, chemicals and pharmaceuticals, electrical and electronic goods, trade and tourism have become socially involved at their respective interna­tional locations.

The conclusion of the study: German companies are gradually realizing that it is worth integrating aspects related to social and ecological sustainability into their core business as this brings competitive advantages with it, both at home and abroad. All in all, the international CSR activities therefore receive a positive appraisal. The most important overarching themes involved – environmental protection, ecologically and socially responsible value chain, promotion of the social setting, and employee orientation – indicated that the companies had the most relevant fields of action on their agenda. Yet the Bertelsmann Foundation still sees scope for further improvements. Hence the proposal: in future companies should focus even more strongly on activities related to shaping their sector’s framework conditions in the context of their international CSR efforts. For many companies, this level of involvement is still not a matter of course.

According to the experts, political support can be helpful here. In October 2010 the Federal Government adopted a national strategy for the social responsibility of companies in the form of an action plan called CSR Made in Germany. One important 
feature of that action plan is to bring about a change of consciousness leading to the realization that CSR is equally worthwhile for companies and society. The Federal Government aims to create stimuli for assuming social responsibility and to offer support in translating the CSR approach into daily business routine. In this way, smaller and medium-sized companies in particular are to be encouraged to integrate their social involvement into their strategic core business. Whereas CSR strategies have been largely implemented by big concerns and are gaining in importance, many smaller and medium sized companies need to catch up.

The Deerberg Company is an example of how German mid-sized companies can take responsibility. The mail-order company 
for natural textiles located in Lower Saxony employs 400 people and has been taking effective measures towards protecting man and the environment for some time now. As a result, Deerberg has gained a positive standing in a branch where companies are often criticized for the bad working conditions at their suppliers’ plants or for too high emissions of harmful carbon dioxide. Deerberg 
uses electricity from regenerative energy sources, exclusively. All deliveries – up to 10,000 a day in 
the high season – are climate neutral. The well-­designed despatch cartons can be used later by 
clients for storage or as shelf elements; if they 
come back to the company with return shipments, they are re-used where possible. The quantity 
of waste at Deerberg has consequently become significantly smaller.

Like VW, Deerberg also has definite company principles and expects its suppliers to adhere to these values and guidelines. This is relatively easy because the company has long-term relations with just a small number of European manufacturers; nevertheless, the sales department does regular on-site checks. As they do not carry out their own material tests, they are happy to rely on certifications or serious product standards.

There can be no question about it, sustainability is more than a trend, it is an entrepreneurial approach determining the actions of a growing number of German companies. Socio-ecological aspects are also gaining in importance in another sector: city and local governments are gearing themselves more and more towards 
sustainable criteria. The jurors of the 2012 German Sustainability Prize assessed a total of 119 local government entries. Tübingen, for example, has included sustainability in the principles of administrative 
action and set itself ambitious goals regarding the reduction of CO2 emissions. Neumarkt in the Upper Palatinate involves its citizens in its City Orientation Process and was the first fair-trade city in Bavaria. The small town has already received three awards in the context of the UN Decade of Education for Sustainable Development. And since 2004 Ludwigsburg in Swabia has been implementing a comprehensive urban development programme with firm strategic objectives aimed at increased sustainability.

These and other examples are reasons for optimism: in addition to governments and NGOs, more companies and local governments are taking active responsibility for man and nature and a future worth living in – good examples that should catch on. ▪

Kay Dohnke