Global Compact International Yearbook 2015

Bosch
Requirements aLONG
the SuPPLY Chain
By Bernhard Schwager and Axel Zerinius, Bosch
To strike a balance between economic, social, and ecological interests, Bosch must take its entire
value-added chain into account. This is why the global provider of technology and services
actively involves its suppliers in its sustainability activities, both in regulatory and operational
terms. Together with its suppliers, the company aims for continuous improvement.
The Bosch Group is a global provider of
technology and services. Its operations
are divided into four business sectors:
Mobility Solutions, Industrial Technology,
Consumer Goods, and Energy and
Building Technology. With some 360,000
associates, Robert Bosch GmbH and its
440 subsidiaries and regional companies
has locations in around 60 countries. If
its sales and service partners are included,
then Bosch is represented in roughly 150
countries. This worldwide development,
manufacturing, and sales network is the
foundation for further growth. In 2014,
Bosch applied for some 4,600 patents
worldwide.
Bosch sees sustainable business practice
as an established part of its corporate
strategy. The company’s values are
deeply rooted: Over the course of its
development, Bosch has stayed true
to the ethical principles of its founder,
Robert Bosch. Today, the company’s
sustainability activities are focused in
four main areas: environment, products,
associates, and society. These activities
include the value-added chain, which is
why Bosch actively involves its customers
and suppliers.
The importance of the supply chain
The Bosch Group’s strategic aim is to
develop solutions for a connected life.
With innovations as well as products
and services that spark customer enthusiasm,
Bosch helps improve quality of
life around the world. These technically
sophisticated products not only call for
Sustainability in the supply chain
Regulatory aspects
Contracts
Strategy
and further
development
Operational aspects
Cooperation
and motivation
Supplier
assessments
and audits
high-quality materials and components,
they must also meet sustainability criteria.
This is why the company makes
such criteria mandatory for its suppliers.
With a sales volume of almost € 25
billion in 2014, some 300 million parts
were delivered to 267 manufacturing and
development locations around the world
each day. To make sure that suppliers
meet sustainability requirements, they
are laid out in contracts and monitored
through audits.
Contracts
The sustainability standards that Bosch
expects its suppliers to meet are a firmly
established part of the company’s purchasing
conditions. They include respect
for human rights, the right to wage
negotiations, support for the abolition
of forced or child labor, the avoidance
of discrimination in hiring practices
and the workplace, environmental
responsibility, and the prevention of
corruption. Compliance means, for
instance, that “suppliers commit to
meeting legal standards that apply to
the treatment of employees, environmental
protection, and occupational
safety. They must also work on reducing
the human and environmental impact
of their activities.”
108 Global Compact International Yearbook 2015