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Siemens–Global network of innovation
Siemens, headquartered in Berlin and Munich, is one of the world's largest electrical engineering and electronics companies. Sustainability has been a hallmark of the company ever since it's founding more than 155 years ago. At Siemens, sustainability means long-term economic success coupled with environmental awareness and the social responsibility that goes with being a good corporate citizen. In fiscal 2005 (ended September 30), the company had roughly 461,000 employees and posted sales of €75.445 billion from continuing operations. Net income for the year totaled €3.058 billion. Siemens generates around 80 percent of its sales outside of Germany.
With activities in more than 190 countries and some 600 plants, research facilities and sales offices worldwide, Siemens has a strong international presence. Company businesses are focused on six key areas: Information and Communications, Automation and Control, Power, Transportation, Medical and Lighting. Global business operations at Siemens are the responsibility of 13 Groups, including the financing arm and Siemens Real Estate. In addition, Siemens is also a partner in joint ventures – with Bosch in the household appliances sector (BSH Bosch-Siemens Hausger?te) and with Fujitsu in computer systems (Fujitsu Siemens Computers).
The company has a well-balanced business portfolio in the field of electrical engineering and electronics. Siemens' activities are influenced by a variety of regional and sector-specific factors. In addition to internationally oriented businesses, such as Power Generation, Power Transmission and Distribution, Medical Solutions and Transportation Systems, which are generally subject to long-term business cycles, other sectors – for example, the consumer goods businesses in legally separate parts of Information and Communications and Osram, and the capital goods business of the Automation and Drives Group – are subject to short-term business trends and immediate economic conditions. A well-balanced portfolio helped Siemens master the challenges posed by the difficult business environment of fiscal 2005.
Moreover, our six business areas reflect the megatrends of the future. Siemens is developing solutions for the major challenges of the future in the fields of healthcare, energy, water, communications, mobility, security, logistics and automation.
As a global network of innovation, Siemens successfully leverages synergies across its broad portfolio and operates with a central strategic orientation and decentralized entrepreneurial responsibilities and organizational structures, combined with local value creation. The company's traditional strengths are its power of innovation, its strong customer focus, its global presence and its financial solidity.
Siemens' activities are focused on the world electrical market, which has an annual volume of roughly €2.690 trillion in 2005. As a result of the expected slight cooling of the world economy, the pace of growth in the global electrical and electronics market could slow somewhat in 2006. At roughly 7.5%, however, it should still lie in the long-term growth corridor. .
Innovation is a top priority for a world-class company in the field of electrical engineering and electronics. In 2005, the company invested €5.2 billion in R&D in order to remain at the forefront of technology. Last fiscal year, Siemens researchers and developers turned out around 8,800 inventions – a 7% increase – and applied for patents for two-thirds of them. The company is the largest patent applicant in Germany, is in second place in Europe, and among the top ten in the United States. Most of Siemens' approximately 47,000 researchers and developers are working on software projects, making the company one of the world's largest software houses. Siemens continues to concentrate on expanding the range of services, solutions and systems that complement its product portfolio.
Transparent and responsible company management and monitoring structures – oriented toward achieving sustainable growth in company value – are indispensable for earning and maintaining trust in Siemens and its business policies. Siemens has traditionally attached great importance to respecting and protecting shareholders' rights, providing transparent and timely information about the company, and ensuring close cooperation between its Managing and Supervisory Boards. International and national corporate governance standards have long been complied with. As a good corporate citizen, we also help improve the quality of life wherever we operate. We support the education and training of youth, work to alleviate social problems, and promote the arts and culture.
With over 900,000 shareholders, Siemens is one of the world's largest public corporations. Just over 55 percent of the company's share capital is held outside of Germany. Since March 2001, Siemens shares have also been listed on the New York Stock Exchange (NYSE).
Committed to Good Corporate Citizenship in China
A strong commitment to good Corporate Citizenship is a core value of Siemens that Is based on the recognition that the company’s activities have a wider impact on the society in which it operates, and that developments in society in turn impact the company’s ability to pursue its business successfully. Siemens therefore actively manages the economic, social and environment impact of its activities, and realizes long-term benefits by working with local communities, government organizations and other key stake holders.
Examples of Siemens’s early corporate citizenship activities in China can be traced back to the Second World War, when Mr. John Rabe, then Siemens business representative in Nanjing and Chairman of the Nanjing International Safety Zone, provided humanitarian aid and shelter for over 250,00 Chinese refugees at Siemens’ property in Nanjing during the “ Nanjing Massacre”. Over the years, the company has been actively contributing to help construct a harmonious society in China by engaging in a large variety of corporate citizenship activities in six core areas including education and training, health care, environmental protection, public welfare, disaster relief as well as employee volunteering.
All of Siemens corporate citizenship activities are executed under the company’s two global umbrella programs “Siemens Caring Hands” and “Siemens Generation21”. “Siemens Caring Hands”, comprises Volunteerism, Social Programs and Disaster Relief to show Siemens and its people as good corporate citizens. “Siemens Geration21”, comprises education activities for pre-schools, schools and universities to help nurture tomorrow’s scientists and engineers.
By supporting young people in education and training, Siemens paves their way to a better future. Over the years, the company donated teaching equipment, books and stationery as well as providing financial aid to many schools located in the poor rural areas of China. In 2004, on the occasion of Siemens 100th anniversary in China, Siemens sponsored the education of 100 children from poor and disadvantaged families. Siemens also supports university education in China. Most recently, in 2005 and 2006, the Siemens Automation & Drives Group provided automation systems to 10 of China’s leading universities worth over 10 million RMB for the construction of Automation System Engineer Accreditation Competence Centers. In 2007, to further promote the development of China’s professional education, Siemens and Nanjing College of Information Technology (NJCIT) signed a cooperation agreement to jointly set up “Siemens Mechatronic Systems Certification Program” (SMSCP).
Given the importance of healthcare in Siemens business activities, contributing to the development of healthcare in China and assisting those in need with donations of advanced medical equipment is a special priority. In May 2006, Siemens donated 2,000 advanced digital hearing aids valued over RMB 10 million to the China Welfare Fund for the Handicapped. To date, over 40,000 hearing-impaired people have benefited from Siemens’ contribution.
With a focus on sustainability and environmental protection throughout the entire business scope, Siemens works to protect the environment and contribute to sustainable development. For example, in 2005, Siemens provided financial assistance to the “Green-up Project” of the Three Gorges Reservoir.
Public welfare activities are manifold and aim to support equitable development and social stability. In December 2005, Siemens, Jiangsu BS Home Appliances Sales Co., Ltd., the Consulate General of the Federal Republic of Germany in Shanghai and Nanjing University jointly funded the renovation of the John Rabe House in Nanjing, which was officially open to the public on October 31 2006. The total renovation cost amounted to RMB 2.25 million. Since 2002, Siemens Electrical Drives Ltd. donated more than RMB 1 million to an Elderly People’s Home in Tianjin to ensure better service and care for senior citizens.
In the area of disaster relief, Siemens offers quick and effective aid in cases of acute need and emergencies. During the battle against SARS, Siemens donated 17 medical ventilators and 200 mobile phones valued at 7 million RMB to China. In the aftermath of the Jiangxi earthquake in late 2005, the company initiated a donation drive to collect winter clothing and other necessities from employees to help the victims.
Siemens encourages and supports employees to provide volunteering services to help those in need with their knowledge and skills. For example, in 2006, Siemens celebrated the 5th year anniversary of “Enlightening the Future“ program, under which Siemens Guangdong volunteers helped to establish libraries and PC labs and provide PC and English training to both teachers and students in the under-developed areas of Guangdong for 5 years.
Siemens engagement in corporate citizenship is publicly recognized through high profile awards like the “Guangming Corporate Citizenship Award” by Guangming Daily received from 2004 to 2006,”China Best Citizenship Conduct Award” by the 21 Century Business Herald received in 2005 and 2006,”The Best Enterprise Public Image Award 2006” and “The Best Enterprise for Corporate Social Responsibility Award 2006” by Guanghua Media in 2007.
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