Siemens 2006 Annual Report Download - page 29

Fit4More 29
Based on innovative, future-oriented
products, efficient processes and respon-
sible company management, our sustain-
ability strategy is making a major contri-
bution to increasing our Company’s
long-term value. At Siemens, sustainable
company management means increasing
the value of the Siemens share by ensur-
ing lasting profitability and continuously
boosting growth and performance. Cor-
porate responsibility – which encompass-
es corporate governance, business prac-
tices, sustainability and corporate
citizenship – is one of the four main pillars
of our Fit4More program, which address-
es the global capital market’s growing
interest in sustainable investment.
Our inclusion on the Dow Jones Sus-
tainability Index (DJSI) is a testimony to
our achievements. We’ve been listed on
the index every year since its launch in
1999 – and, as a rule, near the top.
Corporate governance
Corporate governance – clearly struc-
tured and rigorously implemented – has a
long tradition at Siemens. For us, good
corporate governance includes not only
the responsible and value-creating man-
agement and monitoring of Company ac-
tivities but also the effective cooperation
of our Managing and Supervisory Boards,
close attention to the interests of our
shareholders, transparency and responsi-
bility. For a detailed description of corpo-
rate governance at Siemens, see pages
80 ff. of this Report.
Business practices
“Integrity guides our conduct toward our
employees, business partners and share-
holders.“ This statement – one of our Cor-
porate Principles – sums up our commit-
ment to comply with the highest ethical
and legal standards in all our entrepre-
neurial activities. Unambiguous instruc-
tions from Company management to all
employees to obey the law and a clear
warning that unlawful actions will not be
tolerated are the basis of compliance at
Siemens. These instructions are formulat-
ed in our Business Conduct Guidelines. As
the centerpiece of the Siemens Compli-
ance Program, the Guidelines are binding
rules for all employees worldwide. They
comprise not just a general admonition to
employees to obey the law but also spe-
cific rules regarding, among other things,
compliance with competition and anti-
corruption laws, the handling of dona-
tions, the prohibition of insider trading
and the protection of Company assets.
The Compliance Program also includes a
Code of Ethics for Financial Matters, Busi-
ness Consultant Guidelines, and a large
number of other Company-wide regula-
tions.
Our Compliance Program is being con-
tinuously developed and improved to
meet new legal requirements and elimi-
nate any shortcomings that investigations
may reveal. For example, at the end of
September 2006, we launched a new
training program: a comprehensive, inter-
active online compliance course that, in a
first step, must be completed by all senior
Siemens executives in Germany. In
response to recent events, we immediate-
ly introduced further measures. To supple-
ment existing internal reporting and com-
plaints procedures, we established a new
communications channel via an external
ombudsman. Employees and third parties
can contact this neutral individual anony-
mously and on a confidential basis to
report any irregular business practices
that come to their attention within the
Company. We also set up a special task-
force headed by the Chief Compliance
Officer to propose additional measures to
put an end to any lapses on the part of
individuals.
Implementation of the Siemens Com-
pliance Program is handled by a world-
wide compliance organization comprising
a Chief Compliance Officer, who reports
directly to the Corporate Executive Com-
mittee and the Audit Committee of the
Supervisory Board, and Compliance Offi-
cers in the Groups and Regions, who
report to the Chief Compliance Officer and
What’s Siemens’ position on
the UN Global Compact?
Siemens has been a member
of the UN Global Compact,
launched by Secretary General
Kofi Annan, since 2003. The
Compact’s principles have long
been integral parts of our com-
pany culture. We’ve committed
ourselves to helping achieve
the Compact’s development
goals both now and in the
future.