BMW 2012 Annual Report Download - page 166

166
152 STATEMENT ON
CORPORATE GOVERNANCE
(Part of Management Report)
152 Information on the Company’s
Governing Constitution
153 Declaration of the Board of
Management and of the
Supervisory
Board pursuant to
§ 161 AktG
154 Members of the Board of
Management
155 Members of the Supervisory Board
158 Work Procedures of the
Board of Management
160 Work Procedures of the
Supervisory Board
165 Information on Corporate
Governance Practices
166 Compliance in the BMW Group
170 Compensation Report
together with employee representatives, issued a “Joint
Declaration on Human Rights and Working Conditions
in the BMW Group”. This Joint Declaration was recon-
firmed in 2010. With the signature of these documents,
we have given our commitment to abide worldwide
by internationally recognised human rights and with the
fundamental working standards of the International
Labour Organization (ILO). The most important of these
are freedom of employment, the prohibition of discrimi-
nation, the freedom of association and the right to
col-
lective bargaining, the prohibition of child labour, the
right to appropriate remuneration, regulated working
times and compliance with work and safety regulations.
The complete text of the UN Global Compact and the
recommendations of the ILO and other relevant infor-
mation can be found at www.unglobalcompact.org and
www.ilo.org. The Joint Declaration on Human Rights
and Working Conditions in the BMW Group can be found
at www.bmwgroup.com under the menu item “Respon-
sibility” (Services / downloads / topics: “Employees and
Society”).
Further information regarding employees is provided
in the “Personnel” section of the Group Management
Report.
It goes without saying that the BMW Group abides by
these fundamental principles and rights worldwide.
Employees have therefore been sensitised to this issue
since 2005 by means of regular internal communica-
tions. Further training was provided again in 2012 on
recent developments in this area. A dedicated helpline –
the “Human Rights Contact” – is available to employees
wishing to raise queries or complaints relating to hu-
man rights issues. The BMW Group also conducted its
own “Human Rights Impact Assessment” in 2012 with
a
view to ensuring that human rights are respected
throughout the organisation.
Activities can only be sustainable, however, if they en-
compass the entire value-added chain. That is why the
BMW Group not only makes high demands of itself
but also expects its suppliers and partners to meet the
ecological and social standards it sets and strives
con-
tinually to improve the efficiency of processes, measures
and activities.
Sustainability criteria play an integral part in all aspects
of our purchasing terms and conditions as well as for
the purposes of evaluating suppliers. Potential suppliers
must submit a full disclosure when completing BMW’s
modularly structured sustainability questionnaire, an
inherent component of the acceptance procedure for
potential new suppliers. The BMW Group also insists
that its suppliers ensure that their sub-contractors com-
ply with set standards. Purchasing terms and condi-
tions and other information relating to purchasing can
be found in the publicly available section of the BMW
Group Partner Portal at https://b2b.bmw.com.
We foster close relations with our suppliers, providing
encouragement and practical assistance to those
interested in wishing to make progress in the area of
sustainability.
Compliance in the BMW Group
Responsible and lawful conduct is fundamental to the
success of the BMW Group. This approach is an integral
part of our corporate culture and is the reason why cus-
tomers,
shareholders, business partners and the general
public place their trust in us. The Board of Management
and the employees of the BMW Group are obliged to
act responsibly and in compliance with applicable laws
and regulations.
This principle has been embedded in BMW’s internal
rules of conduct for many years. In order to ensure to
protect itself systematically against compliance-related
and reputational risks, the Board of Management created
a Compliance Committee back in 2007, mandated to
establish a worldwide Compliance Organisation through-
out
the BMW Group.
The BMW Group Compliance Committee comprises
the heads of the following departments: Legal Affairs,
Corporate and Governmental Affairs, Corporate Audit,
Organisational Development and Corporate Human
Resources. It manages and monitors activities necessary
to avoid
non-compliance with the law (Legal Compli-
ance). These activities include training, information and
com
munication measures, compliance controls and fol-
lowing
up cases of non-compliance.
The BMW Group Compliance Committee reports reg-
ularly to the Board of Management on all compliance-
related issues, including the progress made in develop-
ing the BMW Group Compliance Organisation, details
of investigations performed, known infringements
of the law, sanctions imposed and corrective / preventa-
tive measures implemented. The decisions taken by
the BMW Group Compliance Committee are drafted in
concept, and implemented operationally, by the BMW
Group Compliance Committee Office. The BMW Group
Compliance Committee Office is allocated in organisa-
tional terms to the Chairman of the Board of Manage-
ment.