Corporate Leadership

To control change processes centrally and strengthen core processes worldwide, Bosch aligns its various management systems under the Group-wide umbrella of the Bosch Business System (BBS).

This includes, for example, the Bosch Human Resources System (BHS), which supports the change processes in human resources around the world, and our integrated management system for quality, environment, and safety. This system is based on Group-wide quality mission and on principles for occupational safety and environmental protection and ensures that we comply with high standards in these areas at all our locations worldwide.

The HR organization uses its human resources strategy to support the divisions in the pursuit of their objectives. This involves the consistent application of the balanced scorecard. This method is used by executives and associates alike to define strategic objectives − and to evaluate their achievement − with regard to processes, finance, and clients (both internal and external).

The HR organization’s mission contains globally applicable guidelines for its work. These are based on the House of Orientation and contribute to closer alignment with the strategic objectives of the company. It has thus become one of the core tasks of the HR organization to provide support for the organizational development of divisions and regional companies and to make them aware of necessary changes.

We use the Bosch Human Resources System to develop and disseminate worldwide standards for effective HR management. Bosch has some 330 HR departments around the world, and wherever they are located, they must apply the same quality standards. We will structure processes in all the central HR areas – planning, resourcing, leadership, rewarding, development, and reorganization – according to the same rules and standards. In this way, associates across the globe – particularly those on international assignments – can be sure that they are treated and, above all, supported in their development and career advancement on the basis of established and standardized principles. To this end, we have initiated and systematically prepared 15 sub-projects. Sub-projects on executive planning, personnel marketing, and associate development, for example, have already been concluded and implemented successfully.

High quality standards are a cornerstone of our corporate culture. We focus especially on providing an integrated quality management system to meet the increasing quality requirements arising from the growing complexity of our products and worldwide networked operations. We place particular emphasis on early error avoidance in the product creation process and the timely identification of non-conformances in the manufacturing process. For this purpose, we integrate key content and processes from our Bosch product engineering system and our Bosch production system into our quality management system.

Step by step, we have been expanding the environmental management systems at our sites since 1996. Now, 213 of our 292 sites have been certified to ISO 14001. This year, we are implementing a maturity model for all manufacturing and development sites, which will serve as the basis for further improvements in environmental protection, occupational safety, and fire safety. We also share best practice solutions that promote international cooperation.

Design for Environment
Our worldwide network of DfE (Design for Environment) coordinators is continuously integrated into the environmental management system at Bosch. The Design for Environment team ensures that energy efficiency, recycling objectives, and material restrictions are factored into the product development processes and that Bosch products help protect the environment and conserve resources. As part of Bosch competence management, a global training concept for Design for Environment is currently being put together. In terms of product-oriented environmental protection, a database helps determine and document relevant data on products and materials for old vehicles. This internal Bosch system is interfaced to the International Material Data System (IMDS). This system makes it easier for developers to enter data and improves data quality by means of integrated test processes.

As globalization gathers pace, our suppliers are also faced with new challenges. In 2007, our purchasing volume amounted to 24 billion euros, with Europe accounting for 69 percent of this sum. In 2015, we expect this proportion to be only around 55 percent. By this time, we are looking to make 25 percent of our purchases in Asia Pacific and 20 percent in America. The presentation of the Bosch Supplier Award, which recognizes our top suppliers, confirms this increasing internationalization. In 2007, 19 of the 47 award winners were located outside Germany.

Agreeing environmental and social standards
We are aware that our responsibility for the environment and society stretches beyond our company boundaries and into the supply chain. That is why our purchasing guidelines are based on the ten basic principles of the United Nations’ Global Compact. We draw up contracts with all our suppliers stipulating that they must comply with the basic labor standards of the International Labor Organization (ILO) and general environmental standards. These include, for example, declaration obligations and the prohibition of materials that are particularly harmful to the environment. Supplier audits are used to check that our suppliers are familiar with these requirements and comply with them. We refuse to work with suppliers who violate these regulations. As from 2008, we expect our 200 or so preferred suppliers to have a certified environmental management system in place.

 

For Bosch, too, China is a rapidly growing market. This is also reflected in ten major building projects initiated by Bosch. These projects include completely new buildings or extensions, for example at the Group's sites in Changsha, Hangzhou, and Suzhou. We carried out the first building projects with local general contractors, as is customary in China, but we found that the project standards did not always fully comply with the globally applicable Bosch values. This was particularly the case with regards to the occupational safety and health protection of construction workers. Consequently, we changed our award procedure and reduced the scope of services of general contractors, so that we are now able to exert direct influence on suppliers when work packages are awarded.

Improvements were quick to come about – not only as regards occupational safety and health protection, but also in terms of quality. Now, scaffolding is put up on time, construction workers live in appropriate accommodation with clean and fully-functioning sanitary facilities, and all workers have access to a canteen. Last but not least, suppliers can be sure that their invoices are paid as agreed, as their orders are processed directly by Bosch.