DCGK/Deutscher Corporate Governance Kodex
The Deutsche Corporate Governance Kodex (DCGK) - German Corporate Governance Code - was drafted by a specially-appointed government commission and published in 2002. This code lays down values and standards for responsible corporate governance. Its most important aim is to increase transparency in corporate governance and monitoring systems in order to strengthen national and international investors' confidence in the management of German companies. The executive boards and supervisory boards of listed corporations must publish a Declaration of Conformity once a year in which they indicate which Code recommendations they did not apply or comply with. Each year the government commission reviews whether the Code requires amendment in the wake of current developments.
See also: CG/Corporate Governance
www.corporate-governance-code.de
Demographic change
The term demographic change refers to changes in a society's age structure. The birth rate, life expectancy and emigration/immigration determine what this change looks like. Demographic change varies greatly throughout the world: Industrialised countries report declining birth rates and longer life expectancies, while rising birth rates are being observed in developing and newly industrialising countries. Because of the impact it is having on the economic system and the welfare system in general and on the working world and the social security systems in particular, demographic change (the ageing society) is an important issue for the political sector, trade and industry in Germany.
Die Verbraucher Initiative
Die Verbraucher Initiative e.V. - The Consumer Initiative - was founded in 1985 as the national association of critical consumers. Its headquarters are located in Berlin. The Consumer Initiative is a lobby organisation that promotes healthy products whose production is environmentally and socially sustainable. This non-profit organisation pursues the aim of providing consumers comprehensive information about goods and background information on how they are produced.
www.verbraucher.org
Discrimination
Discrimination means the unequal treatment of individual persons or groups without objective justification. The ban on discrimination is inferred from the respect for human dignity. This means that individuals and groups must be treated equally irrespective of their gender, sexual orientation, ethnic origin, race, religion or beliefs.
www.institut-fuer-menschenrechte.de
Diversity
The term diversity is used to describe the respect for the individual differences and variety in employees and the positive regard for these differences in organisations. This respect can prevent discrimination, improve equality of opportunity and concomitantly create a positive atmosphere in the respective organisation. Diversity refers on the one hand to external attributes such as gender, skin colour, age or disability. On the other hand it also refers to individual types of orientation, such as religious or sexual orientation. Companies also expect diversity in their workforces to result in greater problem-solving skills, make their organisation more attractive for new employees and increase customer loyalty.
DJSI/Dow Jones Sustainability Indexes
The Dow Jones Sustainability Indexes (DJSI) were launched in 1999 by the Dow Jones Indexes, STOXX Limited and the SAM Group. This stock index is considered to be one of the first global indexes which measures and tracks corporate performance with regard to sustainability. The Dow Jones Sustainability World Index (DJSI World) covers the top 10% of the some 2,500 companies listed in the Dow Jones World Index which lead in the area of corporate social responsibility. These companies are selected on the basis of a sustainability-oriented business valuation which uses general and industry-specific criteria. This makes it possible to describe the best companies in the individual branches. The DJSI lists a total of more than 300 companies.
www.sustainability-index.com
DNWE/Deutsches Netzwerk Wirtschaftsethik
The Deutsches Netzwerk Wirtschaftsethik e.V. (DNWE) - the German Business Ethics Network - fosters a dialogue between practitioners on the ground and science and academia on issues involving economic and business ethics. The DNWE was created in 1993 and today counts some 500 members from the political sector, trade, industry, churches, science and academia. Using the exchange of ideas, this discussion platform seeks to make a contribution toward solving moral dilemmas arising in connection with trade competition. Concepts such as corporate social responsibility, corporate citizenship and corporate governance are frequently-discussed topics. Based on this, the DNWE helps companies, associations and institutions implement moral principles on a practical basis.
www.dnwe.de
Donation
A donation is the transfer of cash resources or physical resources without quid pro quo. Cash donations are the most common form of donation. In Germany, some 83% of the population makes cash donations. Donations in kind include clothing or used computers. The recipients are usually non-governmental organisations or local initiatives that pursue charitable aims. Donations are often an element of corporate citizenship.
Eco-efficiency
Eco-efficiency is an indicator that puts the economic value of a product in relation to its impact on the environment. The product's entire life cycle is examined in the process. Material and energy consumption plus pollutant emissions should be held to a minimum in the product's manufacture, use and disposal. On the other hand, the level of recyclability and use of recycled materials should be increased. At the same time, products and services should be competitively priced, satisfy people's needs and preserve or enhance quality of life. An increase in eco-efficiency goes hand-in-hand with an increase in environmental compatibility.
Econsense
Econsense - Forum for Sustainable Development of German Business is an association of German companies that operate internationally. Econsense was founded in 2000 at the initiative of the Federation of German Industries (BDI). It is comprised of a think tank and a platform for dialogue on the subject of sustainable management, both of which incorporate various stakeholders. This organisation's aim is to pool the corporate social responsibility initiatives of individual companies and communicate trade and industry's expertise in sustainability issues to the public and the political sector. Members of Econsense view sustainable development as a strategy for boosting enterprises' competitive strength on a long-term basis and for preparing them for future challenges.
www.econsense.de
EES/European Employment Strategy
The co-ordination of employment policies has been a priority for the European Union since the Treaty of Amsterdam. The European Employment Strategy (EES) was initiated in this connection in 2007. National labour-market and employment policy measures are brought in line with one another on a Europe-wide basis using the EBS's open co-ordination method. Integrated Guidelines for Growth and Jobs were agreed for the period 2008 - 2010. Accomplishment levels for targeted goals - which include an employment rate of 70% in all Member States - are reviewed on an annual basis and published in the European Union's Progress Report. The EES also includes a number of labour market-related EU directives on, for example, occupational health and safety, on the organisation of working time and on the equal treatment of men and women.
EMAS/Eco-Management and Audit Scheme
The Community system for voluntary environmental management and audits - the Eco-Management and Audit Scheme (EMAS) - was introduced by the European Union in 1993. EMAS is a management tool that European companies can use for planning corporate environmental protection measures. With the help of EMAS, European companies can also monitor and communicate the continuous improvement in their environmental performance. Companies publish relevant data and facts every year in an obligatory environmental statement. When this statement is verified by an accredited EMAS verifier in the course of the environmental review, registration is granted to the particular company which may then use the EMAS logo for communication purposes. A revised version of EMAS went into effect in 2001: EMAS II which is open not only to industrial enterprises but also to the public and service sectors.
www.emas.de
Emissions
Emissions are solid, liquid or gaseous substances, rays, heat and even vibrations or sound that are emitted by a specific source. Emissions often have a negative impact on people and/or the environment. Examples of this are soot particles and particulate matter. Companies are called upon to minimise or avoid emissions that are caused by production and transport processes and during the after-sales phase. Greenhouse gas emissions - which include CO2 - play a particularly important role because of their negative impact on the climate.
EMS/Environmental management system
The term environmental management system (EMS) refers to the anchoring at organisational and personnel level the various environmental policy-related tasks to be discharged in an enterprise or an organisation. In the wake of this, the impact that production has on the environment as well as responsibilities, programmes, aims and measures to reduce negative environmental impacts become key issues. An EMS requires the particular company or organisation to conduct internal and/or external audits on a regular basis and, concomitantly, monitor the continual improvement in its environmental performance and all environmentally-relevant structures and processes within its organisation. In the event that environmental targets are not met, tailored countermeasures should be taken on a timely basis. Companies and organisations can implement an environmental management system on their own or on the basis of a standard such as ISO 14001 or EMAS.
Energy consumption
Energy consumption refers to the amount of fuel or electricity that is needed within a specified period to operate equipment and machines, generate heat, refrigeration and light or even for transportation. In the wake of economic development, energy consumption has tripled worldwide over the past 30 years. In light of the fact that fossil fuels such as coal, oil and natural gas are finite resources and the demand for them is growing steadily, governments and companies have set themselves the goal of reducing dependency on such sources of energy. Industry is responsible for one quarter of global energy consumption. It is therefore an important player here. One approach is to generate electricity from renewable sources of energy such as in the case of solar power, wind power or hydropower. Another approach is to make increasingly efficient use of energy to effect a relative reduction in energy consumption.
ESF/European Social Fund
The European Social Fund (ESF) is - along with the European Regional Development Fund (ERDF) - one of the European Union's structural funds. The ESF was established in 1957 to help people in Europe improve their chances on the labour market and to create jobs. The aim pursued by the European Union here is to ensure that everyone has occupational prospects. The ESF benefits unemployed persons, individuals undergoing vocational training, disabled persons, employees and entrepreneurs in Europe. A total of EUR 9.4 billion in ESF funds will be available in Germany for the period 2007 - 2013.
www.esf.de
ESG/Environmental, social, governance
ESG stands for Environmental, Social and Governance. This abbreviation is another term for corporate social responsibility. ESG was coined by financial analysts and investors in the Socially Responsible Investment field in order to include environmental and social aspects as well as corporate governance - alongside economic indicators - in business valuations.
Ethical consumption
Ethical consumption describes a type of consumer behaviour in which consumers do not base their buying decisions primarily on price. Criteria such as responsible action on the part of manufacturers and merchants or the social and environmental sustainability of products and services take centre stage. Consumers orientate themselves on the basis of product seals such as BIO or Fairtrade and refuse to buy meat from intensive stock raising. They also consciously opt to use public transportation and electricity generated from renewable sources of energy. Consumers can use their purchasing power to encourage companies to conduct business on a responsible basis.
See also: LOHAS
European Union Strategy for Sustainable Development
The European Union Strategy for Sustainable Development was adopted by the European Council in Göteborg, Sweden, in the year 2001. This strategy envisions the reciprocal strengthening of social, environmental and economic policies with an eye to achieving sustainable growth in the European Union. Its aim is to improve the quality of life for all citizens and all generations. In the wake of this, a third - environmental - dimension was also added to the Lisbon Strategy. The EU Strategy for Sustainable Development calls upon enterprises to support the development of environmentally-friendly technologies more and favours pricing that reflects a product's actual cost to the environment and society. The Renewed EU Strategy for Sustainable Development was adopted in 2006. This revised strategy contains clear targets and measures in a variety of fields.
Eurosif/European Social Investment Forum
The European Social Investment Forum (Eurosif) is a members' association that fosters the planning, execution and development of sustainable and responsible investments. Eurosif members include pension funds, financial service providers, scientific/academic institutions, research associations and non-governmental organisations.
This forum also conducts research on European Union directives and decisions that could influence the execution of sustainable investments. It organises activities on the subject of sustainable investment and participates in pan-European initiatives such as the development of standards for sustainable development.
www.eurosif.org
Fair Trade
Fair Trade is the term for controlled trade that offers producers in developing and newly industrialising countries a fair price that is above the generally very low world market price. This makes it possible for producers to earn a decent living. In addition, Fair Trade operations must comply with internationally-recognised social and environmental standards. Agricultural products in particular - such as bananas, coffee and tea - but also other products such as arts and crafts can be traded using the Fair Trade system. The bulk of these products are exported from developing and newly industrialising countries to industrialised countries where consumers can clearly recognise them by the Fair Trade seal. The market for Fair Trade products reached a global volume of nearly EUR 2.4 billion in 2007.
www.fairtrade.net
Foundation
A foundation is a non-profit organisation that with the help of its assets pursues objectives laid down by its founder. A foundation's work is financed by the returns on its foundation capital which is invested on a long-term basis. Foundations can be set up with different legal structures and for any legal purpose. Most foundations are set up under private law and serve charitable purposes.
FSC/Forest Stewardship Council
The Forest Stewardship Council A.C. (FSC) is an international, non-profit organisation that supports the sustainable management of forests through its certification system of the same name. It was founded in Canada in 1993 in the wake of the United Nations Conference on Environment and Development held in Rio de Janeiro in 1992. The Council has its headquarters in Bonn, Germany, and national working groups in 43 countries. The FSC brings together economic, environmental and social interests through its members who comprise non-governmental organisations, companies and associations. The FSC has defined ten principles for environmentally-friendly, socially-responsible forestry. The FSC monitors compliance with these principles through its certification system. Wood products from FSC-certified forest enterprises are identified by a quality seal. The FSC has certified 93 million hectares of forest worldwide (as of 2008).
www.fsc.org
FTSE4Good
FTSE4Good stands for a group of stock indexes that are published by FTSE, a joint project of the Financial Times and the London Stock Exchange. Only those companies are listed in FTSE4Good indexes that meet certain corporate social responsibility (CSR) criteria. These indexes help institutional investors and other investors make decisions in the area of responsible investments. They also provide a basis of comparison for companies that count as leading companies in terms of CSR or that want to improve their position further.
www.ftse.com/Indices/FTSE4Good_Index_Series/index.jsp
