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Social Responsibility SR 26000Corporate Social Responsibility at พเศษCSR กับความยัง่ �ุรกิจองค์ ��ือข่ ายทางสั งคมBITEC, 04 September 2008, BangkokSocial Responsibility SR 26000Mr. Kofi Annan described it as:“Actions of an organization to take responsibility for theimpacts of its activities on society and the environment,through transparent and ethical behaviour”Corporate Social Responsibility (CSR)and Stakeholder Value Balancing economy, ecology and society Contribution to long-term value-added“An initiative which dovetails well with the universal principlesof the UN Global Compact on human rights, labour conditions,the environment and anti-corruption.” Integral part of Bayer‘s corporate policy1

Sustainable Development at BayerCorporate pany founded by F. Bayer and J. F. WeskottCorporate headquarters established in LeverkusenRe-establishment of Farbenfabriken Bayer AGAcquisition of Aventis CropScienceReorganization of the Bayer GroupLanxess AG is spun off from the Bayer GroupTakeover of Schering AG, Berlin, GermanyS t i blSustainableDevelopmentSocietyE0829AEcologyMore than a century of social commitmentat BayerAs of December 3131,, 2007Bayer: Science For A Better LifeOur founding fathers showedfar-sightedness and social responsibility:“If we industrialists do not contribute towardsolving social problems, we have left our mostimportant duty undone.”E0804ACarl Duisberg, 19052

The Bayer Group mission statement:“Science For A Better Life”Our valuesFuture – Goals – Strategygy – Values Innovation and growth Health care, nutrition and high-techmaterials Especially important are: products emerging from Bayer’sown research the consumer health business the grogrowthth markets of Asia biotechnology and nanotechnology Daily activities based on commonvalues and leadership principlesLeadership principlesProgram for Legal Complianceand Corporate Responsibility at Bayer3

The Global Reporting Initiative(GRI)Global Compact within the CSR MovementGovernanceSocietyEnvironmentEconomy A multi-stakeholder governed institutioncollaborating to provide the global standards insustainability reportingResponsible Care (RC)ICC Business CharterGlobal Compact (GC) The Global Reporting Initiative (GRI) is a large multistakeholder network of thousands of experts, inddozensoff countriest i worldwide,ld id whoh participateti i t iniGRI’s working groups and governance bodies, usethe GRI Guidelines to report, access information inGRI-based reports, or contribute to develop theReporting Framework in other ways – both formallyand informally.Sustainable Development (SD)Social Responsibility @ ISO (SR)Socially Responsible Investment (SRI)Global Reporting Initiative (GRI)Sustainable Development andCorporate Social ResponsibilitySD & SROur Common Future" We must meet the needs of thepresent without compromisingthe ability of future generations tomeet their own needs"Social ResponsibilityActions of an organization to takeresponsibility for the impacts ofits activities on society and theenvironment, through transparentand ethical behaviour -E0827ASustainable Development Sustainable production and products Supporting talented young researchers Bayer Climate Program started Group-wide Partnership with the United NationsEnvironment Programme (UNEP) Committed partner in the formulationof standards and strategies forsustainable development Scientific cooperation withNational Geographic Global commitment to the environment,education, health, sports and the arts Fight against diseases,hunger and povertyAs of December 3131,, 20074

Bayer’s commitment to CSR:Integral part of the Mission StatementThe Agenda of Sustainable DevelopmentProtection of natural resources“We acknowledge and accept ourrole as a socially and ethicallyresponsible corporate citizen andare committed to the principles ofSustainable Development.”“We believe our technical andcommercial expertise entails a dutyt worktok ffor ththe goodd off allllhumankind, to demonstrate socialcommitment and to make a lastingand positive contribution tosustainable and environmentallycompatible development.”CSR: a win-win situationCSR benefits the society:- Meeting people's social andecological demandsCSR benefits the company:Sociallyy and environmentallyycompatible products andprocessesContribution to socialdevelopment and compliancewith ethical principlesComprehensive, Targeted EffortsScienceScientific training programs(e.g. “Making Science MakeSense”)Bayer FoundationsAwardsScholarshipsProfessorships- Fostering the corporate image- Part of modern customer retention- Suitable for employee retentionand recruitmentBasic Social NeedsSocial projects in countriesin transitionFighting child laborFighting diseasesDrinking water initiative by Bayerand National GeographicDonationsEnvironmentBayer-UNEP partnershipSustainable agricultureBiodiversitySupport for300 projectsworldwideCulture & SportsSports and cultural clubsSponsoring activitiesCommunity relations projects5

Responsible Care (6 Codes of ManagementPractices)(1) Community Awareness& Emergencye ge cy Reponsreepo s eResponsibleCare (2) Process SafetySix Codes of Management PracticesRESPONSIBLE CARE(3) PollutionPrevention6 CODES OF MANAGEMENT d-StewardshipISO 14001 OHSAS 18001 (Distribution Product Stewardship)Responsible Care (4) Employee Health& Safety(6) Product StewardshipISO 14001 OHSAS18001(5) DistributionDistribution Cradle to the GraveProductStewardshipThe New Responsible Care Global CharterResponsible Care isthe chemical industry’syglobal voluntary initiativeunder which companies,through their nationalassociations, work togetherto continuously improvetheir health,health safety andenvironmentalThe Responsible Care ethic helpsperformance,andourtoindustry to operate safely, profitably and withcommunicate withdue care for future generations, and wasstakeholdersabout theircommended by UNEP asmaking a significantproductsandprocesses.contribution to sustainable developmentat theW ld SitS t i bl Dlti6

Asia Pacific Responsible Care CouncilThe Marketplace Responsibility PrinciplesPUBLIC PRIVATE PARTNERSHIP PROGRAMMESix Codes of Management Practices- The circle closes ! -* Respect your customers* Support vulnerable customersMARKETING* Seek potential customers within excluded groupsPRODUCTION* Manage the impact of product or servicePRODUCTSTEWARDSHIP* Actively discourage product misuse* Actively manage responsibility in your supply chain* Treat suppliers as partnersEND--USEENDDEVELOPMENTRECYCLING* Work with the rule makersRESEARCH* Have consistent standards6 7

TCPASafe Use / IPM in Northern Provinces“Food for Life” ProgrammePartner : Royal Project Foundation Thai Worldview Foundation Thai Crop ProtectionAssociationpAsia CropLife Chiengmai University Department of AgricultureTCPA contributed one full time trainer work in the Royal Project areaCSR: Tradition with a FutureSports and Culture Supporting sports as a social duty Bayer athletes have won 60 Olympic and nearly200 world championship medals Care programs for employeesstarting in 19th century: Social responsibility through cultural involvement Cultural program has built cultural bridges across the world for 100 years 17 cultural societies and ensembles with approximately 1,400 members- Company health insurancefounded in 1877- 1st Kindergarten in 1905- Wastewater commissionin 1901- Sports and cultural clubsfoundedE0828A Enlargement to global socialcommitment todayAs of December 3131,, 20078

Corporate Social Responsibility (CSR)and Stakeholder Value Balancing economy, ecology and society Contribution to long-term value-added Integral part of Bayer‘s corporate policyCreating Benefits for Society, Environment and Business.Corporate Social Responsibility at BayerBayer Group300 subsidiaries500,000stockholders93,000employeesEUR 29.8 billionsales** as at December 31, 2004as at June 30, 20059

Ideas on Corporate Social Responsibility "The Role of the Board of Directors in Corporate SocialResponsibility.“ "L"Long tterm iinvestorstare realizingli i ththatt hhow ththe firmfimanages itsitsocial and environmental impacts and responds to social andenvironmental trends can affect long term firm performance,“ “Companies concentrate more on their corporate social responsibility(CSR) as it relates to operations than on CSR from a governanceperspective. However, this trend is changing as more boards arestarting to consider CSR issues.” "Increasingly boards of directors are starting to integrate social andenvironmental considerations (CSR) into their strategy and riskmanagement. CSR is moving into the boardroom with the growingrealization of the business case for CSR. Once CSR moves into theboardroom, it becomes a factor in board governance."Ideas on Corporate Social ResponsibilityIdeas on Corporate Social Responsibility“Companies had committees that focused on CSR issues,although few of these committees actually had CSR orsustainability in their titlestitles.”"Increasingly directors are coming to understand the CSRbusiness case - there is a growing awareness that pro-activemanagement of a firm's social and environmental risks andopportunities can result in sustainable value creation.""The business case for CSR must be made very clear. Directororientation and training on CSR can help.help ""For successful management of a firm's sustainabilityperformance the board needs to demonstrate its commitmentand oversight of CSR,"Closing Motif"These are key to successful CSR integration and embedment.The board must show its active ownership of this issue and itsawareness of its role,role in the absence of which a firm'sfirm scommitment to effective social and environmental performancemanagement could be suspect.“There are still gaps between what many boards think about CSRissues and what they actually do to act on their �ุรกิจเพื่อสิ่ งแวดล้อมไทย สถาบันสิ่ .th/tbcsd/10

More than a century of social commitmentat BayerMilestones in Bayer ResearchOur founding fathers showedfar-sightedness and social responsibility:“If we industrialists do not contribute towardsolving social problems, we have left our mostimportant duty undone.”E0826ACarl Duisberg, 19051899Aspirin 1991Confidor /Gaucho 1937Polyurethanes1993Kogenate Betaferon /Betaseron *1953Makrolon 1995Baytron 1996Advantage 1997Glucometer Dex /Esprit Mirena *1998Bayrepel 1971Sencor 1975Adalat 1976Bayleton 1985Nimotop 1986 Baycoxy1987Ciprobay Magnevist *1988Puma 1990Bayhydrol /Bayhydur Glucobay /Precose 2002Advantix Atlantis MaisTer 2003Levitra Levasil Ascensia Dispercoll Sproduct linePoncho S EnvidorGamunex /Gamimune 2004Zevalin *Oxygendepolarizedcathode(ODC)technologyMultitec Fandango Proline Advocate /Advantagemulti 2005Vasovist *Oberon Curbix Nexavar Allectus Armada K-O Tab 1-2-3Profender 2006YAZ *Infinito Axiom 1999A l /AveloxAvalox/A l FiberMax 2000Yasmin *Melt--polycarbonateMeltprocess2001Campath /MabCampath *Calypso * Product of the former Schering AG, Berlin, Germany.As of January 1, 2007Kick-OffKick-Off11