CORPORATE PRINCIPLES. Corporate Principles of the Witzenmann Group. Witzenmann GmbH
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1 CORPORATE PRINCIPLES Corporate Principles of the Witzenmann Group Witzenmann GmbH Östliche Karl-Friedrich-Str Pforzheim Phone Fax uk/2/06/14/3,5
2 THE WITZENMANN GROUP 2 3
3 FOREWORD These corporate principles are the foundation for our Group's activities and future developments. They convey our corporate vision and describe the corporate goals and strategies with which we intend to realise our vision. To achieve this, the corporate principles are the principles by which we orient our activities as well as the leadership principles which our managers use to properly carry out their responsibilities. Vision, goals and strategies determine our actions across the longer term. They are impacted by social and technical change and market developments, and therefore need to be examined and modified on a continual basis. Over the past few years we have achieved a lot together; we have succeeded in becoming the world market leader in our sector a milestone in our company's history. The key challenges in the coming years will be the ongoing integration of the international markets, increasing demand for sustainable and resource-efficient business and efficient technologies as well as worldwide demographic shifts. We will meet these challenges actively head-on and with an eye to the future. With this in mind, we have together with the Witzenmann Group executive directors formulated a compelling and challenging corporate vision for the year This corporate vision sets the course for further internationalisation, innovation and technology leadership, and profitable growth. We have expanded our corporate goals around the goal of sustainability, revised and partially re-formulated our corporate guidelines and leadership principles. We are confident of having created in these corporate principles a future vision of the Witzenmann Group that is worthy of personal use. Together, we want to undertake the actions required to be the economically successful and cosmopolitan company described in our corporate principles, and to realise our corporate vision. Dr. Gerhard Flöck Dr. Hans-Eberhard Koch Dr. Andreas Kämpfe Dr. Hans-Eberhard Koch Chief Executive Officer Dr. Gerhard Flöck Chief Financial Officer Dr. Andreas Kämpfe Chief Technical Officer 4 5
4 Dear employees, Our company has taken on the challenges of the global economy in the 21st century and is taking great care in shaping its future. This task requires entrepreneurial courage, a continuous increase in innovation, clear ideas about the goals to be achieved and in particular, your active involvement in creating a sustainable future for our company. Our vision is, in the global integrated economy of the coming decades, to secure and strengthen our position as a world-leading group of companies in flexible metal elements. These corporate principles provide information on the corporate mission, goals and strategies that will be followed to implement this vision, and the challenges and opportunities these will bring for each and every employee. The corporate principles express the desire of the shareholders and the management, to continue running the corporate group in the ownership and corporate responsibility of the Witzenmann family. Family-owned companies in Germany make an outstanding contribution to the prosperity and the future security of our society. In particular family-owned companies in the Baden-Württemberg area of Germany play a very important role here. Members of the Witzenmann family have held business responsibilities at our family business for over 150 years. Three generations of employees work together under the same roof at the Pforzheim site. As a result, over the years we have become a family company together with you in a broader sense. As in the past this means we rely on your outstanding assistance in achieving the successful ongoing development of our company in future. With the corporate principles we want you to be involved and make a real contribution in future years working together at our Pforzheim headquarters and in subsidiary companies. The key to all this is implementing the corporate principles of the Witzenmann Group in everyday operations and allowing them to become reality. Prof. Dr. Herbert Paschen Chairman of the Supervisory Board Dr. Jakob William von Trotha Vice Chairman of the Supervisory Board 6 7
5 CORPORATE PRINCIPLES Chapter 01 CORPORATE VISION Chapter 02 CORPORATE GOALS Chapter 03 CORPORATE MISSION Chapter 04 CORPORATE GUIDELINES Chapter 05 CORPORATE STRATEGIES Chapter 06 LEADERSHIP PRINCIPLES BUSINESS AREAS CENTRAL DEPARTMENTS 8 9
6 CORPORATE VISION 2025 "By 2025 we secure our global presence via market leadership in America and Asia as well. The annual turnover of the Witzenmann Group will by then exceed one billion euros." 1 BN 7 in
7 CORPORATE GOALS 02 GL OBAL SUPP L I E R T E CHNO L OGY AND I NNOVAT I ON LEADERSH I P QUA L I T Y L E A D E R S H I P E X C E L L E N C E O F P E RS ONNE L F I NANC I A L I NDE P ENDENC E S U S T A I N A B I L I T Y Profitable growth We strive for sustained profitable growth, which demands a strong focus on increasing earnings and sales. We ensure our competitiveness via a consistent focus on customer benefit and through the efficient use of the resources available to us. Global supplier Proximity to our nationally and internationally operating customers plays a key role in our activities. We pursue a consistent strategy of internationalisation and global presence and continue to build upon our worldwide valueadded cooperation. Technology and innovation leadership Excellent engineering and innovative development of products, processes and production methods are the foundation of the Witzenmann Group. By continuously searching for new applications for our products, we are committed to securing and building upon our position as a leader in technology and innovation. We work continually and systematically on new solutions to our customers' problems. Changes in technology and markets are opportunities for Witzenmann to be the driver of innovation in the sector. Quality leadership To meet the expectations of our customers, the Witzenmann Group sets the highest standards in terms of product, service and process quality. Continuous improvement of products and processes ensure our quality levels. We carry this notion of quality over into our relationships with our employees and suppliers. Excellence of personnel The qualifications and motivation of our employees and managers are the basis for successful cooperation with our customers. We aim to employ the most highly qualified and skilled personnel in our sector, which is why we support our employees' professional growth and career development, which at the same time demanding from them extraordinary performance. For staff development, we continue to expand on qualification programmes at the Witzenmann Academy. Financial independence To survive in the future as an independent family-owned company, it is imperative for the Witzenmann Group to remain financially independent. Our business partners can count on our healthy economic and financial structure and stability. Sustainability As a company we feel compelled to align ourselves with the concept of sustainability. Sustainable business practices and operations mean for us that nature and the environment must be preserved for future generations and that our economy offers a lasting basis for the achieving prosperity. We follow preventative principles with regard to environmental issues. We implement initiatives to create significant environmental awareness in the use of resources and energy. We support and accelerate the development and distribution of environmentally friendly technologies. To ensure a safe and healthy working environment for our employees, we work continually to improve safety in the workplace and the health of our workforce
8 CORPORATE MISSION Corporate mission The Witzenmann Group is an international partner for challenging engineering issues relating to vibration decoupling, strain gauging, media routing and compensation for inaccuracies in the assembly of pipe systems. As an experienced development partner we offer our customers intelligent and superior solutions with our flexible metal elements. Our corporate mission is reflected in our company motto "managing flexibility"
9 CORPORATE GUIDELINES Responsibility to our workforce and to society Independent family company Reliable business partner Economic long term thinking Knowledge and learning Equal opportunities and cultural variety 16 17
10 Responsibility to our workforce and to society Social responsibility is a particular obligation for Witzenmann. We want to provide our workforce with safe and good jobs as well as stable living conditions. For this reason, we create work processes and paths for professional advancement in the company in such a way that our employees can gain satisfaction from their work and sufficient attention is paid to the needs and requirements of their families. As a family-owned company, Witzenmann is especially committed to the principle of balance between work and family life for both men and women and improving this on a continuous basis. We offer older employees working conditions that allow them a satisfactory working environment even at an advanced working age. We encourage and support staff with an immigrant background in terms of training and professional development. We are aware of our social responsibility. In line with UN s Global Compact we ensure that our company complies with international human rights and we reject all forms of corruption and bribery, as well as forced and child labour. It is a given for us that all employees act within the law. We work closely together with workplace representatives on a basis of trust. We respect the right of employees to freedom of association and collective bargaining. In the context of a culture of commitment to the community, the company is open to sponsoring and supporting activities that benefit society. Independent family company Witzenmann is an autonomous, independent group of companies with headquarters in Pforzheim, Germany and run by descendants of the founding family. Reliable business partner In the Witzenmann Group we advocate fair, trusting and respectful interactions with others. To customers and suppliers, we are an expert, reliable partner, vis-a-vis competing companies, we are a fair-playing competitor. Economic, long term thinking As a traditional family-owned company, we are committed to longterm economic thinking. A "quick profit" mentality is not in keeping with the values of the Witzenmann Group. Knowledge and learning Knowledge, learning and willingness to perform are our greatest assets. A key focus at Witzenmann is on intellectual flexibility, the willingness to change and relishing the opportunity to tackle current and future challenges with creative solutions. Equal opportunities and cultural variety As an employer, Witzenmann affords all its employees the same opportunities, regardless of age, gender, religion, ethnic origin, sexual identity or disability. The cultural diversity of our workforce is an asset to our company and a prerequisite for the success of the corporate group
11 CORPORATE STRATEGIES Growth strategy Globalisation and Group strategy 01 1 BN IN Technology strategy Quality strategy 05 Human Resources strategy 05 Sustainability strategy 06 Finance strategy
12 Growth strategy We achieve steady growth by consistently developing future sources of revenue, mounting sales offensives in our core markets and expanding international project-based business. We can achieve sustained profitability through the unrelenting exploitation of potential sources of future earnings and permanently boosting efficiency. Globalisation and Group strategy The goal of our worldwide presence will also require us to systematically open up strategically important future and growth markets. in addition to expanding the Pforzheim centre of excellence, we will continue to pursue a forward-looking policy in our choice of international locations. Technology strategy The goals of the technology strategy are the integration of efficient product development and more efficient production technology as well as ensuring a continuous, high level of innovation. To reach these goals, we are developing a comprehensive patent strategy, expanding our innovation management, and applying state-of-the-art development methods. Quality strategy Our quality strategy goals are the optimisation of internal process in production, development, and administration, the reduction of quality-related costs, and zero-defect quality in our products Human Resources strategy The human resources strategy is designed to ensure the availability of a sufficient number of the best-qualified employees, working in a highly motivated, effective, and proactive manner to achieve preset goals and display commitment to the success of the Witzenmann Group. Therefore the company is investing in the establishment of a corporate academy, in a performance-oriented incentive and compensation system, in the training of junior staff, and in measures to improve the balance between private and professional life. Finance strategy Our financial independence is guaranteed by good earning, increased equity capital, and optimisation of the company's financing, liquid assets and investments. Sustainability strategy We take account of the idea of sustainability by supporting the ten basic objectives of the UN Global Compact. We strengthen environmental awareness within the company and undertake to implement projects and improvements in the fields of resource and energy efficiency, health management and work safety
13 LEADERSHIP PRINCIPLES Preamble: Cooperative leadership Entrepreneurial activities Performance orientation Responsibility and promotion Integrity and cooperation Implementing changes Health-oriented management
14 06 Preamble: Cooperative leadership In the Witzenmann Group, we maintain a cooperative management style, which is reflected in our leadership principles. As a family business we place great value on the fact that the actions of our managers are in line with our corporate principles, goals and leadership principles. Entrepreneurial activities As managers we represent the interests of the company. We act in a results-oriented way and with a view to the company's success. With our employees we agree challenging, task-oriented goals and set our priorities together with specified targets. As managers we are responsible for implementing and monitoring individual and commonly agreed goals. Performance orientation As managers of the company, we are fully committed. We give our employees challenging tasks in line with their performance capabilities and can create the essential framework in which they can develop their performance. In doing so we ensure that our performance expectations are transparent at all times. Responsibility and promotion As managers we are prepared to take on responsibility and challenging tasks and to delegate to our employees. We therefore encourage our employees to act on their own responsibility and with self-determination. We have confidence in the strengths and expertise of our employees. We highlight development and career opportunities within the company to them and encourage them to develop themselves professionally and personally. As managers, we ensure that employees always receive the same support, encouragement and development opportunities. Integrity and cooperation We always strive to act in an exemplary and trustworthy manner. We deal with employees and business partners with appreciation and respect. We act and create together in a team and in the company worldwide. We support tasks and objectives of other organisational units and impart our knowledge and our information for the benefit of the company. We take care to ensure honest and fair dealings with one other. We practice objective criticism, give constructive feedback and praise achievement and commitment. We always approach errors as an opportunity to improve the company. We are actively against any form of discrimination and harassment. Implementing changes As managers we are always ready to incorporate change. We take the initiative, and initiate and implement changes in the company. We encourage our employees to suggest ways to change and improve the company. We ensure at all times that the company can benefit from these suggestions. We are responsible for the success of intended changes in the company and support our employees in implementation. Health-oriented management Health is a valuable commodity to us. As managers we always ensure that work safety is ensured, and the health of employees, business partners and other parties affected are not negatively impacted by our work processes. Our goal is to create sustainable healthy working conditions. As managers we shape work processes, tasks, goals and performance requirements in our area of responsibility in such a way that our employees are fit for their tasks and that no negative health consequences are incurred
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