Sustainable Conduct

Corporate Culture: Dialogue, Diversity, Innovation

Ethical standards established

Fairness and respect are central elements of our corporate culture. That includes observing Group-wide standards of conduct and protecting employees from discrimination, harassment and retaliation. These standards are set forth in the new corporate policy on Fairness and Respect at Work.

Communication at all levels

We involve our employees in business processes through active dialogue and further develop employee communication formats. The previously separate intranet sites for different countries and companies have been combined in a single platform covering all employee needs. Informing staff promptly and extensively about upcoming changes, in compliance with the applicable national and international regulations, is very important to us. We engage in open and trustful dialogue with employee representatives.

Online Annex: A 1.4.1-4

limited assurance

The main dialogue formats are regular employee assemblies, information events for managers and the European Forum, where employee representatives from all European sites engage in discussion with the Board of Management on issues of central relevance to the company.

Our employees actively use opportunities to discuss company-specific issues and scope for optimization via various communication channels. For example, Bayer fosters a culture of innovation at the workplace through two platforms for employee suggestions: the Bayer Ideas Pool and the Ideas Forum. The suggestions made by employees on improving processes, occupational safety and health protection are rewarded and utilized. In total, 3,408 ideas were submitted in 2016. Around 45% of the suggestions for improvement evaluated in 2016 were implemented. In the first year of implementation alone, those improvements that led to quantifiable benefits generated savings of more than €13 million. In 2016 Bayer distributed bonuses of around €1.7 million for the implemented proposals. Another example of employee participation is the Board of Management’s appeal to all employees to submit suggestions on improving the Group-wide performance management system via the “WeSolve” platform.

Diversity and internationality are hallmarks of Bayer

A diverse employee structure is vital for our company’s competitiveness. By embracing Diversity designates the variation within the workforce in terms of gender, origin, nationality, age, religion, sexual orientation and physical capability. we improve our understanding of changing markets and consumer groups, gain access to a broader pool of talented people and benefit from the enhanced innovative and problem-solving abilities that are demonstrably associated with high cultural diversity. Mutual understanding and a gender and cultural balance, especially at management level, are important success factors. We have an inclusive approach: diversity is integrated into all relevant human resources processes and driven forward by the management.

Online Annex: A 1.4.1-5

limited assurance

Bayer has officially adopted the United Nations’ Women’s Empowerment Principles, a set of seven principles that sum up how women can be strengthened in the workplace, on the employment market and in the community. The company is also a founding member of the German “Chefsache” network sponsored by the German Chancellor Angela Merkel. Its members are committed to working together to develop practically oriented strategies to drive diversity and gender balance in their organizations.

Group target 2020:

increase in the proportion of senior managers from outside the European Union, the United States or Canada to 25%

Overall, the Bayer Group employs people from around 150 different nations. Around 21% of our senior management come from outside Western Europe, the United States and Canada. We aim to increase this to 25% by 2020 in accordance with our Group target. At our Significant locations of operation A selection of countries that accounted for more than 80% of total Bayer Group sales in 2016 (United States, Germany, China, Brazil, Japan, France, Canada, Italy, Mexico, U.K., India, Spain, Australia, Russia, Switzerland, Poland, Turkey, Argentina and Belgium). we hired 390 employees for senior management, 70% of whom are employed in their country of origin.

Group target 2020

increase the proportion of women in senior management to 35%

Group-wide, Bayer had raised the proportion of women at senior management level to around 29% by the end of 2016 (2015: 28%). Without Covestro the proportion was 31%. Our aim is to raise this further to 35% by 2020.

Online Annex: A 1.4.1-6

limited assurance

Of the members of our Group Leadership Circle – the senior management level below the Board of Management – in which 31 nationalities are currently represented, around 67% come from the country in which they are employed. The proportion of women also increased in the Group Leadership Circle. By year-end 2016, it was made up of 84% men (2010: 93%) and 16% women (2010: 7%).

The next table shows the proportion of men and women in various employee categories.

Bayer Group Workforce Structure1

 

 

Women

 

Men

 

Total

 

 

2015

2016

 

2015

2016

 

2015

2016

2015 figures restated

1

Number of employees converted into full-time equivalents (FTE) and rounded to the nearest hundred

Senior management

 

3,100

3,300

 

8,000

8,100

 

11,100

11,400

Junior management

 

11,300

11,400

 

16,600

16,600

 

27,900

28,000

Skilled employees

 

29,200

28,400

 

48,400

47,400

 

77,600

75,800

Total

 

43,600

43,100

 

73,000

72,100

 

116,600

115,200

Apprentices

 

800

800

 

1,800

1,800

 

2,600

2,600

Proportion of Women in the Workforce 2016
%

Proportion of Women in the Workforce 2016 (bar chart)Proportion of Women in the Workforce 2016 (bar chart)