CHINA - MORE THAN A MARKET Catalyzing Engagement of German Companies in Chinese Society

LEADERSHIP ROUNDTABLE REPORT March 20th 2015

OUTCOMES - FOLLOW-UP - DOCUMENTATION

1 ROUNDTABLE BRIEF & INITIATIVE INTRODUCTION

2 KEY OUTCOMES & INITIATIVE NEXT STEPS

3 ROUNDTABLE IMPRESSIONS

Report

TABLE OF CONTENT

1 ROUNDTABLE BRIEF & INITIATIVE INTRODUCTION BACKGROUND

The German Chamber of Commerce Shanghai, the Bertelsmann Stiftung and the German Consulate in Shanghai

extended an invitation to 40+ German companies for the kick-off of the initiative‚ China - More than a Market‘ with a

strategy roundtable that took place on March 20th, 2015.

This roundtable was a milestone in a dialogue process started in June 2014, with the mapping study

‘China – More than a Market: How German Companies are growing roots in Chinese society.’ This study was

conducted by Bertelsmann Stiftung with the support of the German Chamber Shanghai. This mapping study

showed that a critical number of companies were interested in more joint action in CSR.

Hence the organizers kick-started an initiative to bundle efforts, render them visible and catalyze joint action. The

organizers presented their ideas for the initiative and participants were invited to bring in their suggestions to jointly

develop a roadmap for the initiative.

ROUNDTABLE AIM:

To start and shape the initiative of German industry in China.

KEY QUESTION OF THE DAY:

How can the initiative bring value to both society and German companies in China?

OBJECTIVES:

Refine the activities suggested by the initiators. Generate and define further ideas for joint action.

OUTCOME OF THE DAY:

A co-designed outline of the initiative and a commitment from the main organizers to work on its implementation,

in particular the inaugural award to be handed out in 2016.

Leadership Roundtable

PARTICIPANTS

More than 40 CEOs and representatives of German companies from the Greater Shanghai area responded to the invitation!

WHAT:

Initiative to position further German companies as valuable contributors

to the Chinese society, by:

HOW:

SHOWING and BUNDLING good examples

FILTERING and AWARDING the best ideas

SUPPORTING and DEVELOPING new projects

WHY:

JOINING FORCES to increase IMPACT and VISIBILITY

GROWING ROOTS in Chinese SOCIETY.

TECHNOLOGY + QUALITY + SOCIAL VALUES

= INNOVATION MADE IN GERMANY

Initiative

SUMMARY

The organizers

Offer basic support

Organize the award

The companies

Implement joint projects

Plug in their individual activities

Initiative ROADMAP & FRAMEWORK

DEVELOP

CONNECT

LEARN

SHOW

Set

ONLINE PLATFORM

LAUNCH

CALL FOR IDEAS

STORY TELLING

WORKSHOP

Joint WS BuSo & HR

EMPLOYEE ENGAGE-

MENT

Joint WS BiuSo &

Young Leaders

SOCIAL BUSINESS

SOCIETY CONNECT @SONG QINLING

FOUNDATION

SOCIETY CONNECT

@CONSULATE

WS BuSo

DIVERSITY

WS Machine Building

& Plant Construction

SUSTAINABLE SUPPLY CHAIN

KICK OFF SUMMER

CAMP

KICK OFF FUSSBALL

IDEA LAB RESOURCE EFFICIENCY

STORY MAKING VIDEOS

+ Coordination of activities and helpdesk for support (information, contacts, ideas)

+ Communication campaign for visibility (communication strategy and branding in the making)

WS Business &

Society INITIATIVE

FOLLOW-UP EVENT

WS Marketing

& Sales SOCIAL

BRANDING

WS BuSo

Topic to be announced

WS Construction

& Building Operation

URBANIZATION

In process

CEREMONY FIRST

AWARD

2 KEY OUTCOMES & NEXT STEPS

SUPPORTING ACTIVITIES

MAY JUNE JULY SEPT NOV

MAY 2016 STARTING SECOND HALF 2015

MISSION

The initiative should be a platform to:

Support sharing and learning among companies

Promote transferability of good practices

Help companies to connect and collaborate

Pool resources of companies for more impact

Bundle actions to generate high volume of engagement

Increase visibility (catchy name)

Have a broad geographical outreach

Improve trust, reliability and accountability

Create value for all

Foster government partnerships

Raise awareness

Help root in Chinese society

Address priorities of the Chinese government

MODEL

The initiative should be an umbrella

brand for all activities and

organization and be:

Action oriented

Target oriented

Think big!

Long term, with short and

medium term goals

Easy to join

Transparent

Sustainable (business model)

Innovative Based on German values

Roundtable outcomes EXPECTATIONS

Participants of the roundtable voiced out key expectations towards

the initiative, both in terms of operating model and mission.

COMPANY NEEDS

Major challenges, that companies face, e.g.:

Shortage of skilled employees

High fluctuation of workers

SOCIAL ENGAGEMENT TRENDS

Companies wish to address the following trends in social

engagement:

Active involvement (with time & know-how), not only

donating money

Lower budgets, but growing demand for social

engagement

Make use of new technologies

Roundtable outcomes

ISSUES TO BE ADDRESSED

The company representatives reflected on issues that should be addressed by the

initiative and confirmed the assumptions previously put forward in the More than a

Market publication:

CHINESE GOVERNMENT’S INTERESTS

Environmental protection / Energy efficiency

Conservation

Education/ Vocational training

Food safety

Social Inclusion/ Welfare/ Insurance

Compliance

Healthcare

Urbanization/ Integration of Migrants

Infrastructure/ Traffic management

International Exposure

TRUST

GIVING

BACK TO

SOCIETY

STRONG

PRINCIPLES

Roundtable outcomes

KEY VALUES

Participants in the roundtable were asked for keywords to

characterize German specific added value regarding social

engagement (core values):

HEIMAT

Roundtable outcomes

SUGGESTIONS OF SUPPORTING TOOLS

Invited speakers and guests suggested concrete measures that the initiators, the German Chamber of Commerce,

the Bertelsmann Stiftung and the German Consulate could consider putting in place in the frame of the initiative.

•Online database of good practices showcasing interesting projects to support peer learning.

•Enables to present and make visible the efforts of the German community ONLINE BEST PRACTICE PLATFORM

•Set of guiding principles akin to the Global Compact, but adapted for the local business community.

•Possibility to communicate commitments of German companies, as well as track, report and measure impact.

SHANGHAI BUSINESS COMPACT

•Set up a board with academic and industry representative to advise and assist the initiative and the members.

ADVISORY BOARD

•Engage in a dialogue with the local government on social engagement issues and legal framework for companies.

LEGAL DIALOGUE

•Set standards for companies to follow and offer audit/certification. CERTIFICATION

•Develop supporting tool-kits for companies about measures they can implement in their organizations related to the various areas of social engagement (safety, HR, compliance, etc.)

TOOL KITS

Roundtable outcomes

IDEAS FOR SOCIAL ENGAGEMENT ACTIVITIES

Participants brainstormed possible joint company projects/activities ideas that could be implemented in the frame of

the initiative, both internally, i.e. targeting the employees of German companies (light grey) and externally, i.e.

targeting the community (dark grey).

Pooling alternatives (shuttle busses, car pooling)

Crash-test

Summer school for employees migrant kids

Social activities classes (dancing etc.)

Match making event for single employees

Employee Welfare System (Performance-based insurance for kids & families)

Recycling system for private purposes

Integration of disabled (disabled facilities)

Education about hygiene and environment

Vocational training Educating children (by employees)

Best practice sharing on production & environment, health and safety

Tool-kits for safety Joint initiative for excellent canteen

(food safety)

TRAINING & EDUCATION

SOCIAL SUPPORT

FAMILY & COMMUNITY

SAFETY & ENVIRONMENT

Family days Company to university – education cooperation

Recycling and Cleaning Days

Heritage conservation projects

Cultural events

Qualifying NGO partners

Energy saving competition

Interest clubs

Sino-German Exchange for Youth

Roundtable additional content

SOCIAL ENGAGEMENT IDEAS MATRIX

The prior collection of ideas reflects the idea matrix that had been generated in the study “More than a Market,” shown

below:

PROJECT NAME & SLOGAN summer camp • 5-10 year old kids of migrant + local

employees • 3-4 weeks • 40-80 kids

WHAT IS IT ? • Kindergarten • 6-8 companies + scaling up • Target: summer 2015

RESOURCES NEEDED • Teachers • Facilities • Content/program • Medical support • Transportation

OPEN QUESTIONS • Insurance • Transportation with grandparents • Budget

NEED/ISSUE ADDRESSED • Family reunion • HUKOU problem • Promote family bonding • Employee bonding

ACTION PLAN MAJOR STEPS • Kick off • Core team • Brainstorming the activities • Project plan • Budget plan

VALUE ADDED • Promote family bonding • Employee bonding • Regional cooperation/neighborhood

DRIVER/COORDINATOR • HR departments • Appointed Camp • Bernd Reitmeier will

host the first meeting on May 26th.

CORE TEAM • HR department of

companies • People from the group

PARTNERS NEEDED • Local school & government • Catering producers • Tourism office • International school • TV/media • Local foundations

The team working on the topic generated a project idea that could bring children of migrant workers working in German companies together with their parents in the summer, by organizing a summer camp with educational and fun activities.

Roundtable outcomes

PROJECT IDEAS FOR FAMILY ENGAGEMENT & NEXT GENERATION

This topic and

project idea was

among those that

resonated best with

many companies.

Commitments

SUMMER CAMP

PROJECT NAME & SLOGAN

Blue Sky Clear Water

WHAT IS IT ?

Create awareness of resource

constraint

RESOURCES NEEDED

• Trainers

• External / internal

OPEN QUESTIONS

• Priorities

NEED/ISSUE ADDRESSED

• Pollution – related issues

• Knowledge transfer

• Behavior change

ACTION PLAN MAJOR STEPS

• Best practice collect & share

• Roll - out plan conference

VALUE ADDED

• Mindset – Action – Position (made in

DE)

• Employees

• Kids

• Public

• Energy efficiency

DRIVER/COORDINATOR

• GCC

CORE TEAM

• Our team

PARTNERS NEEDED

• Schools

• Government

The team working on resource efficiency suggests an education and raising awareness campaign on resources, to be implemented by employees to change mindsets and drive action.

Roundtable outcomes

JOINT PROJECT IDEA FOR RESOURCE EFFICIENCY

Commitments

RESOURCE

EFFICIENCY

This topic and

project idea was

among those that

resonated best with

many companies.

PROJECT NAME & SLOGAN

Fussball!

WHAT IS IT ?

Training of youngsters (8-10 years)

RESOURCES NEEDED

• Beckenbauer

• 100000 Euro (company

sponsors)

• Facilities for training

OPEN QUESTIONS

• School or clubs

• Boys and /or girls

NEED/ISSUE ADDRESSED

• Underperformance in soccer

• low participation in sports

ACTION PLAN MAJOR STEPS

• Senior experts as coaches

• Volunteers from companies

• Organize tournament 2016

• Vorspiel beim Laenderspiel

VALUE ADDED

• Integration

• Health

• Team spirit

• Cooperation

• performance

DRIVER/COORDINATOR

• Suggestion: Michael

Bauer (tbc)

• Host of the first follow-

up session: Michael

Maeder, May 19 or 20

(date tbc)

CORE TEAM

Recruited from partners

PARTNERS NEEDED

• Sports authorities

• Schools / clubs

• Lead sponsors (companies

sponsoring soccer already

)

• German soccer club

The team working on a free topic thought about an area where Germany is particularly strong at and where China could get some support: football! The idea involves a training initiative supported by a team of companies. .

Roundtable outcomes

JOINT PROJECT IDEA FOR FUSSBALL

Commitments

FUSSBALL

PROJECT NAME & SLOGAN

inclusion + workplace

WHAT IS IT ?

Kindergarten / education program for

handicapped children/youth

RESOURCES NEEDED

• Dedicated person

• Qualified teachers

• Sponsored money

• Location

• facility

OPEN QUESTIONS

• Transportation / infrastructure

• Government/legal framework

• Is there specially trained staff?

NEED/ISSUE ADDRESSED

• Parents who could not work

• Employment of the youth

ACTION PLAN MAJOR STEPS

• Demand on the market

• Contact government

• Define mission, vision

• Strategy

• Model – implement

• Institutions accepting this model

VALUE ADDED

• Parents can work

• Integration of handicapped youth

• Quality / sense of life

• Awareness of healthy children/ youth

DRIVER/COORDINATOR

• Committee

• Project Managers

CORE TEAM

• Dedicated person

• Leader

• Committee of diverse

enterprises (3-4)

PARTNERS NEEDED

• Associations industry parks

• Chamber of commerce

The team working on the topic generated a project idea that would enable parents of children with

disabilities to free their time for work by offering care and education programs for children with

disabilities.

Roundtable outcomes

JOINT PROJECT IDEA FOR INCLUSIVE WORKPLACE

Commitments

INCLUSIVE WORKPLACE

PROJECT NAME & SLOGAN

Sino – German SME Dialogue on CSR

Issues

WHAT IS IT ?

Bottom – up Dialogue

RESOURCES NEEDED

• Support by AHK &

Bertelsmann Stiftung

• Government

OPEN QUESTIONS

• Identification of partners

• Chinese interest

NEED/ISSUE ADDRESSED

• Market needs

• Social needs

ACTION PLAN MAJOR STEPS

• Finding partners

• Development of a dialogue

framework

VALUE ADDED

• Networking Chinese partners

• Exchange of ideas & cooperation

DRIVER/COORDINATOR

• AHK

• Business + society

CORE TEAM

PARTNERS NEEDED

• Example young

entrepreneurs association

The team working on the topic generated an idea to support the networking between German and Chinese companies on the topic of social engagement.

Roundtable outcomes

JOINT PROJECT IDEA FOR SINO-GERMAN POLICY DIALOGUE

• Make social engagement of German companies visible

• Give recognition

• Trigger initiative & promote engagement

• Encourage & inspire

• Recognize projects, not companies

PURPOSE

• All members of the GCC Shanghai SCOPE

• 3 basic award categories: small, medium & big enterprises

• Flexible award categories: e.g. collaborative projects, new projects AWARD CATEGORIES

• Innovative/ creative

• Long-term / sustainable (ongoing projects)

• Transferable

• Visible results (confirmed impact/ define assessment period)

CRITERIA SELECTION

• Establish a jury and online presence

• Call for application and reviewing applications

• Selecting of nominees/ winners

• Celebration ceremony

PROCESS

Roundtable outcomes

SUGGESTIONS FOR THE AWARD – CHINA WE CARE

3 ROUNDTABLE

IMPRESSIONS

WELCOMING

Opening address by Liz Mohn, Vice Chairman

of the Bertelsmann Stiftung, who emphasized

that ‘goodwill is an important key to success for

businesses’ and that corporate society

engagement is all about ‘putting people

at the core.’

Welcome address by Consul General Peter Rothen,

who in his introduction on corporate social

responsibility also brought forward the idea of a

‘Business Compact of the German Industry in Shanghai’.

Roundtable impressions

CONNECTING

A introduction round was led by the hosts of the day, Art de Geus, CEO of Bertelsmann Stiftung, and Titus von dem Bongart,

Chairman of the Board of the German Chamber of Commerce China, Shanghai.

Roundtable impressions

PRESENTING

Oliver Yang, Deputy Secretary General at Shanghai

Soong Qingling Foundation and former head of CSR

and government relations at the AmCham in

Shanghai, introduced current trends in society

engagement in China.

Birgit Riess, Head of Business & Society at

Bertelsmann Stiftung and member of the

steering committee of the CSR-Award of the

German Government, shared her experiences

with responsible business collaboration in

various regions of Germany.

Roundtable impressions

CREATING The afternoon group work was structured into five themes relevant to the topic of social engagement: (1) Resource Efficiency,

(2) Family & Next Generation, (3) Inclusive Workplace (4) Sino-German Policy Dialogue, (5) a free topic, which resulted in

‘Fussball’. One group worked on the design for the “Award – China More than a Market”.

Roundtable impressions

CREATING

Roundtable impressions

STRATEGIZING AND

ENACTING

The Chairman of the Board of the German Chamber,

Titus von dem Bongart, summarized the results and

invited the companies to engage

and partner with the Chamber for the implementation

of the initiative. The Chamber committed to host the

initiative as a coordinator, and to organize a support

process for the members, including the organization

of an award, creating a visibility/ communication campaign,

holding regular sharing workshops and setting up an

online platform for best practices.

Participants, inspired by the various projects,

committed with their name cards on the roadmap.

Roundtable

impressions CELEBRATING The German Consul General

Peter Rothen hosted the

evening reception in his

residence together with Liz

Mohn.

The German Chamber of Commerce in China – Shanghai is part of the official member organization which

represents German companies doing business in China. The German Chamber helps its members to succeed by

providing up-to-date market information and practical advice. It offers a platform for the Sino-German business

community and represents its member‘s interests towards stakeholders, including governmental and public

stakeholders. The Chamber In Shanghai was founded in 1999 and currently has around 1,600 members in East China.

Corporate social responsibility as well as sustainability issues are topics that the Chamber and its Board have been

actively addressing and promoting for many years, not only in its regular workshop “Business & Society,” but also across

other workshops and events.

Contact: Petra Kreuder, Executive Chamber Manager, German Chamber of Commerce Shanghai, kreuder.petra@sh.china.ahk.de

Bertelsmann Stiftung was founded in 1977 and is one of the largest private foundations in Germany. It designs and

implements its own projects dedicated to serving the common good in areas such as education, economy, health and

culture. With its projects in the field of corporate citizenship and corporate culture, the foundation aims at contributing to

the political debate by providing studies, analysis and recommendations on necessary reforms. Bertelsmann Stiftung’s

program ‘Germany and Asia’ is helping to build a solid foundation for relations between Germany and its Asian partners.

Contact: Bernhard Bartsch, Senior Project Manager, “Germany and Asia”, Bertelsmann Stiftung

bernhard.bartsch@bertelsmann-stiftung.de

This report was prepared by Katja Hellkoetter and Magali Menant, CONSTELLATIONS International, who are the co-

authors of the study „China – More than a Market, and who advised and co-designed the initiative and the roundtable

concept. kh@constellations-international.com / mm@constellations-international.com

Next steps

CONTACT

All images copyright by Bertelsmann Stiftung / Jan Siefke