Our Leadership Principles

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1 Our Leadership Principles B S H B O S C H U N D S I E M E N S H A U S G E R ÄT E G M B H

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3 P R E A M B L E 3 Your leadership makes the difference The BSH Corporate Principles define the values and precepts of our entrepreneurial activities: customer trust, leadership in innovation, employee orientation, increase in company value and responsibility for the environment and society. This value system determines the way we treat each other at BSH and the attitude we expect from our leaders. These expectations are described in our Leadership Principles. BSH is one of the most successful companies in its industry sector. Innovative, high-quality products, profitable growth and unrivaled competitiveness are BSH hallmarks in the global market. The continuation of this success story requires top performance: at all sites, in all functions, at all levels. We pursue a goal which puts high demands on each individual in our company especially on the BSH leaders. We want to be the benchmark of our industry a vision which also applies to the leadership of our employees. This is where you make the difference. The BSH Leadership Principles will provide you with certainty and orientation in your leadership task. Dr. Kurt-Ludwig Gutberlet Dr. Wolfgang Colberg Jean Dufour Prof. Werner Vogt

4 1.BSH acknowledges its social responsibility and strictly adheres to the law. > BSH commits to this principle in its Business Conduct Guidelines and by joining the United Nations Global Compact. All BSH employees actions are compliant with the law in effect in full accordance with human rights as well as with the legal system within which they are operating. But our company s commitment goes even further. BSH bears responsibility for the society in which it operates: by protecting the environment and natural resources. Maintaining integrity and promoting equal opportunities. And by advancing the health of its staff as well as upholding the standards and rules of safety at work. As representatives and decision makers of BSH, our leaders have a special responsibility to ensure that these principles are put into practice.

5 L E A D E R S H I P P R I N C I P L E S 5 From the participation in environmental conservation projects to the compliance with applicable laws and ethical standards: The responsible actions of BSH as a whole depend on the responsible actions of each and every one of us. As a BSH leader, you are especially called upon to act your part. Make yourself familiar with the basic principles of our Guideline on Organizational and Supervisory Duties within the Company and our Business Conduct Guidelines. See to it that these principles are put into practice in your area of responsibility. Inform yourself and your employees about the Compliance Committee s competencies within BSH in order to ensure adherence to the principles mentioned above. Should you require any help, do not hesitate to contact the Head of Office of the Compliance Committee, your Regional Compliance Officer or the external ombudsman. Ensure your employees health and safety in the workplace. Your particular responsibility in this area is regulated by the Guideline on Occupational Health and Safety.

6 2. Our leaders define clear and challenging goals for their staff that are based on the strategies and objectives of the company. > The actions of our leaders are determined by a consistent focus on results as well as on the sustainable implementation of strategies and decisions. Our leaders are aware that granting their employees sufficient freedom for independent action is a decisive success factor as is clear target-setting. They make decisions in a timely manner and take responsibility for their consequences. Working in teams, they develop new ideas and concepts. By implementing them, they drive change in our company and create perspectives for the future.

7 L E A D E R S H I P P R I N C I P L E S 7 Conduct annual dialogs with each of your employees. Apply country-specific standards and agree upon individual goals. Create a supportive framework enabling your employees to reach their defined goals. Regularly discuss the current status of target achievement with your employees. Should you perceive deviations, it is within your responsibility to take adequate measures. Cultivate and promote a result-oriented style of work and facilitate ways of achieving individual goals. Performance reviews should thus focus on accomplished results. By agreeing upon goals, you add clarity and transparency to your tasks this applies to leaders as well as to their employees. Each individual employee can thus be sure to contribute to the achievement of our business objectives.

8 3. Our leaders are responsible for the selection of the most suitable employees for our company, for their retention, and for their development. > They identify talent within BSH, promote its development, and create a work environment that rewards performance. By doing so, our leaders enable their staff to achieve excellent results and help them to learn, to qualify themselves, and to assume more advanced tasks.

9 L E A D E R S H I P P R I N C I P L E S 9 Select new employees carefully. Use the standardized selection tools based on the Competence Model in order to identify the most suitable employees for the job. Entrust your employees with challenging tasks and provide them with opportunities to develop themselves even beyond their present area of responsibility. For an essential set of rules in this context please refer to the BSH staffing guideline Filling of Vacant Posts. Employ additional personnel development tools specific to your site. Attach a high level of importance to thorough and foresighted succession planning. Use existing tools such as our Strategic Management Review. BSH s Human Resources organization has developed a variety of tools for selecting, assessing and developing employees. These tools are based on a consistent, group-wide Competence Model defining the capabilities that are required to be successful within BSH. In the appendix you will find further details regarding the BSH Competence Model. Conduct regular qualification interviews with your employees, agreeing upon actions that enable them to accomplish their tasks even better. The BSH Academy and your local HR department will be glad to support and advise you in this issue. Identify high potentials and systematically support them in their professional development. Our global talent pool concept provides your employees with an opportunity to further enhance their individual strengths.

10 4. Our leaders live a culture shaped by esteem and respect. They actively and regularly engage in dialog with their employees and pass on all required information on time. > Praise and recognition, constructive criticism and support: Prompt feedback on performance and behavior is an essential element of good leadership as is taking appropriate action wherever necessary. Our leaders promote a target-oriented, cooperative work ethic in individual teams as well as across the entire organization. To reach the company s objectives, they identify and bring together different interests. They recognize the individual abilities and strengths of all their staff members and consistently take them into account. Living this culture of leadership, our leadership team creates a positive work environment and the ideal basis for leading intercultural teams and succeeding in different cultures.

11 L E A D E R S H I P P R I N C I P L E S 11 Enter into a dialog with your employees, both informally on a day-to-day basis and in the context of periodic performance and development reviews. Take our employee attitude surveys seriously. Discuss the findings with your employees and jointly develop solutions where there is room for improvement. Create a positive team spirit within your work environment and raise an awareness of intercultural differences and diversity. Establish a leadership culture which allows for the deployment of your employees according to their individual strengths as well as for systematic support in the accomplishment of their tasks. Regularly give praise and recognition for good performance. A fair and appreciative corporate culture cannot be decreed top-down. It has to be cultivated by the individual departments and divisions.

12 5. Only those who can lead themselves can lead others. > Our leaders reflect on their leadership behavior. They are aware of the results of their actions. They continuously improve their skills. And they use their own resources as responsibly as those of their employees.

13 L E A D E R S H I P P R I N C I P L E S 13 BSH expects its leaders to constantly reflect on their own actions and work on the improvement of their leadership behavior. To manage your own and your employees personal resources responsibly is of utmost importance not least thanks to the further extension of our working life. Make regular use of feedback opportunities for leaders. Consult with your employees on how to optimize your leadership behavior. Take advantage of the BSH Academy s qualification program for leaders to improve your leadership competence. The BSH Academy continuously enhances its services in order to support you in the process. Further opportunities range from tailor-made programs to individual coaching sessions. The BSH Academy and the corporate Personnel Development department will be glad to advise you in this issue. In order to sustain productivity in the long run, pay heed to your employees health and to your own.

14 The BSH Competence Model > Derived from practice designed for practice The Competence Model describes 12 behavioral competencies that are in addition to any required professional qualifications relevant to succeeding at BSH. It is deeply rooted within BSH leadership practice and is aimed at essential corporate challenges. Its development was based largely on interviews with executive management members, in which typical leadership situations were identified and analyzed. Naturally, not all of the model s 12 dimensions are equally important for each individual position at BSH. It constitutes, nonetheless, an efficient means to derive clear-cut requirements, forming the basis for selecting, assessing and developing our employees. All standardized HR instruments were adjusted accordingly. As a BSH leader, you should be acquainted with the Competence Model and be able to apply the tools resulting from it.

15 A P P E N D I X 15 The Model Strategy and Management Competencies Process Competence Innovation Competence Customer Competence Leadership and Social Competencies Intercultural Competence Ability to Integrate and Cooperate Leadership Competence Methodological and Problem-solving Competencies Analytical and Conceptual Competence Decision-making Competence Focus on Implementation and Results Personal Competencies Motivation and Enthusiasm Willingness to Learn and Change Identification and Commitment Integrated standards The BSH Competence Model creates the prerequisite for the establishment of consistent standards in our group-wide HR work. To this end it has to be integrated into the operating personnel tools. In case of globally used instruments, this is done centrally by our HR organization. Through disseminators within the individual HR departments, regionally used tools are adapted to the model. For the selection and hiring of the most suitable employees, standardized interview questionnaires and assessment centers have been developed. The Competence Model provides the basis for the annual dialog, which is conducted according to country-specific guidelines. The Competence Model helps to identify members for BSH s Junior Executive Pool, its International Executive Pool and its Senior Executive Program. On the basis of the Competence Model, trainings and qualification programs for various target groups (e.g. leaders or talent pool members) are provided by the BSH Academy. In the context of personnel development and career planning activities, there are Orientation Centers for Junior Executive Pool members derived from the model. Based on the model, feedback instruments for leaders are provided.

16 BSH Bosch und Siemens Hausgeräte GmbH Corporate Personnel, Personnel Development, International Coordination Carl-Wery-Straße Munich

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