Strategy and Management

In dialogue with our stakeholders

As an internationally operating company, we know that social acceptance of business activities cannot be achieved without communication with stakeholders in transparent and open dialogue. Sustainability and mutual acceptance can only be attained together.
That’s why we specifically seek dialogue at the local, national and international levels with representatives from politics, industry and society. Our conversation partners are our stakeholders – employees, customers, suppliers and investors. Of equal importance to Bayer are public interests – those of our direct neighbors at our sites and of non-governmental organizations (NGOs), politicians and the general public. Last but not least, Bayer operates within a scope of activity that is heavily influenced by scientific institutions and public administration bodies, as well as by legislation.
We see dialogue with our various stakeholders as the basis for building mutual understanding and trust, and as an opportunity to openly communicate to each other points of view and courses of action. It helps us to identify challenges and view them from various perspectives. We want cooperative dialogue to create value for all partners. We take the suggestions of our stakeholders seriously, as they provide important impulses for our company. They help us to avoid risks, as well as to recognize at an early stage both trends and markets – and thus also to define focus areas for our activities. Systematic dialogue therefore makes an important contribution to both innovation and risk management. This results in sustainable solutions that account for a broad spectrum of interests.
Our Sustainability Program illustrates the implementation of this conviction: all our lighthouse projects in the areas of health care, nutrition and climate change are based on dialogue and partnership.

Intensive cooperation

We work closely with our stakeholders on a number of initiatives. The topics of these initiatives and the perspectives of the various stakeholder groups are extremely diverse. Although sustainability issues are global, they can vary widely with respect to regional priorities or perspectives. We constantly strive to view the various challenges in a differentiated manner and take account of context in order to develop solutions on a case-by-case basis that satisfy the framework conditions. For this reason, stakeholder dialogue is an important task for the various functions, organizational units and regions.
Our stakeholder activities range from local projects through participation in committees and specialist workshops to comprehensive information programs and collaboration in international initiatives. The table on the right provides examples of the activities we participate in with various stakeholder groups.

Analysis of stakeholder feedback

We regularly verify that our reporting satisfies the information needs and concerns of our stakeholders. Between June 2009 and January 2010, some 250 of our most important stakeholders (NGOs, associations, regulatory authorities, analysts and investors, customers, suppliers and politicians) took part in our global online survey. This survey determined, among other factors, which sustainability issues are considered to be of particular importance to our stakeholders as regards Bayer. The results confirm that Bayer focuses on the right societal megatrends: a responsible approach to drinking water, children’s health, energy-efficient and environmentally friendly production and innovation are viewed as crucial issues, as are climate change and climate protection, sustainable health care and safety at the workplace. The transparent implementation of these issues is detailed particularly clearly in the focus issue sections but is also demonstrated in the Performance Report.
The stakeholders’ preferred method of dialogue is discourse in discussion events, followed by issue-related workshops and discussion sessions with individual stakeholder groups. We aim to further expand these communication channels in the future.
To further improve and more tightly shape dialogue with our stakeholders, we are currently working with HHL (Leipzig Graduate School of Management) on a project aimed at developing a new approach to stakeholder analysis and prioritization, the results of which will be taken into account in our stakeholder management process.

Examples of dialogue with various stakeholder groups in 2009

 
Employees
  • Dialogue with sustainability experts (round table for Group Leadership Circle members)
  • 18th European Forum: dialogue with local employee representatives
  • Bayer Executive Sustainability Summit (USA)
  • Managerial employee survey on sustainability issues
  • Continuing education seminars for our employees in the areas of compliance, human rights, sustainability in purchasing, and diversity
  • Innovation Community Workshop
Public-private partnerships
  • Collaboration with the WHO in the area of “neglected tropical diseases” (Chagas, African sleeping sickness)
  • Global Alliance for TB Drug Development (tuberculosis)
  • Collaboration with the initiative “Drugs for neglected diseases” (DNDI)
  • Cooperation on malaria issues with the International Vector Control Consortium (IVCC), part of the Bill & Melinda Gates Foundation (BMGF)
International initiatives
  • Cooperation with the United Nations (UN): UN Global Compact with the initiatives “Caring for Climate” and CEO Water Mandate; United Nations Environment Programme (UNEP); Sustainable Buildings
    and Climate Initiative
  • Collaboration by BHC with the U.S. Agency for International Development (USAID), the UN Population Fund (UNFPA) and the International Planned Parenthood Federation (IPPF)
  • Organizational stakeholder in the Global Reporting Initiative (GRI)
  • Participation in the WEC (World Environment Center)
Politics 
  • Participation by BHC in the EPAA (European Partnership for Alternative Approaches to Animal Testing)
  • Participation by BMS in the “NanoDialog” between the German government and industry
  • Participation by BHC in a dialogue event for water protection in North Rhine-Westphalia
  • Anti-cancer workshop featuring the E.U. Health Commissioner and E.U. parliamentarians (BHC)
  • Brussels Academy: dialogue platform of BCS in cooperation with the European Training Institute
NGOs
  • Support of “HOPE” in the area of diabetes during a training supervisor project in India
  • Project with the German Foundation for World Population (DSW)
  • Collaboration with “Engender Health” in the area of contraception
  • Cooperation with Vigyan Ashram, Prajayatna, Naandi and Vignana Jyothi in India on the “Learning for Life” initiative
  • Biodiversity collaborations: “Ducks Unlimited” (United States), “Stiftung Rheinische Kulturlandschaft” (Germany), “Sociedade Humana Despertar” (Brazil)
  • Cooperation with and assistance of “Die Arche e.V.” children’s and youth welfare organization in Berlin
Society / Neighborhood
  • Sustainability News Conference
  • Bayer experts’ round table on sustainability featuring international speakers
  • “Brainstorming for Berlin” dialogue series (BHC)
  • Discussions with neighbors, public authorities and elected officials on topics such as the CO pipeline (BMS / Currenta)
  • “Chemistry is the future” dialogue series between the German Mining, Chemical and Energy Industrial Union (IGBCE) and BMS
  • Neighborhood dialogue with local government representatives, companies and residents at the BHC site in Shiga, Japan
Science and research
  • Cooperation by BCS with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) on wheat research
  • Cooperation by BCS with the China National Rice Research Institute (CNRRI) and the International Rice Research Institute (IRRI)
  • Participation in scientific bodies such as the Society of Environmental Toxicology (SETAC), the International Life Science Institute/Health and Environmental Science Institute (ILSI / HESI) and the European Center for Ecotoxicology and Toxicology of Chemicals (ECETOC)
  • Partnership of BHC in the Juvenile Diabetes Research Foundation (JDRF)
  • Forums and conferences with participation by industry and government in cooperation with the Chanzhou Coatings Research Institute (China)
  • Professorships at universities in the fields of medicine, pharmacy and chemistry
  • Strategic collaborations with universities in Cologne (Germany), the NUS (Singapore), Tsinghua University (Beijing, China) and the DKFZ (Heidelberg, Germany)
  • Presentations and discussions on sustainability at BayKomm with visiting student groups from Germany and abroad
  • BHC as an industry partner to the international Graduate Research Training (GRT) Program on Pharmacometrics & Computational Disease Modelling
  • Assistance and presentation at the World Health Summit 2009 in Berlin
Investors /Analysts
  • Meet Management 2010 – investors and analysts pursue direct dialogue with Bayer management
  • Participation in the task force of the Society of Investment Professionals in Germany (DVFA) for the development of non-financial reporting indicators
  • Participation in podium discussions/events on the subject of sustainable investment
Customers
  • Participation in the dialogue circle of the Global Automotive Stakeholder Group (BMS)
  • Customer satisfaction survey for farmers and product dealers in Poland, Austria and the Netherlands (BCS)
  • Customer satisfaction survey (farmers) on Arize® hybrid rice in Vietnam (BCS)
  • Participation in World Diabetes Day and World Contraception Day through presentations and activities (BHC)
Schools
  • Expansion of the Bayer education program “Making Science Make Sense”
  • “Baylab” school laboratories with programs maintained by the subgroups in Leverkusen, Monheim, Berlin and Wuppertal (Germany)
  • “Bayerchios Program” in Colombia: promotion of scientific teaching at public schools by Bayer employees
(Industry) associations
  • Chairmanship of the European Federation of Pharmaceutical Industries and Associations (EFPIA)
  • Chairmanship of the German Association of Research-Based Pharmaceutical Companies (VFA)
  • Participation in numerous national, European and international associations, including the Federation of German Industries (BDI), the German Chemical Industry Association (VCI), the American Council on Chemistry (ACC) and the European Chemical Industry Council (CEFIC)
  • Continuous participation by the subgroups in their respective industry associations
  • Membership of the Board of Management of the sustainable development forum of German industry (econsense)
Suppliers
  • Supplier Days 2009: e.g. Bayer HealthCare in China and Germany
  • Logistics suppliers workshop on transport safety in China (BMS)
  • Annual presentation of a supplier award for outstanding sustainability performance by Bayer suppliers in India
http://www.sustainability2009.bayer.com/en/stakeholder-dialogue.aspx

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