1. OPEN DAYS workshops 9 – 12 October 2006, Brussels Corporate Citizenship of local utilities in Germany Wolfgang Prangenberg Zelal Ates

2. 29.06.2006 2/13 Corporate Citizenship of local utilities in Germany 1.Local utilities play an active role in the local economic and social development 2.In spite of increasing competition, local utilities should be regarded by the owners as an active element of urban development policy 3.Social commitment of local utilities should be classified in this context: local utilities mainly perform economic duties but at the same time produce a social added-value

3. 29.06.2006 3/13 Corporate Citizenship of local utilities in Germany CSR-Commitment of local utilities The relation of companies and society is in state of flux: The social and cultural infrastructure cannot continue to be state-financed to the same extent as it has been up to now; it will increasingly show gaps. Schools, kindergartens, streets are often in a very bad condition; the equipment of the state-run education sector is very often not up to modern standard. Local utilities witness these location problems due to their local proximity and knowledge. Because of their responsibility for the region and as a public company, local utilities provide assistance in manifold ways. Everybody speaks about Corporate Social Responsibility (CSR) – local utilities put it into practice. Local utilities are - as an economic factor on the ground - the economic backbone and - with their social commitment - also the heart of towns and cities; this is proven by the online survey of VKU.

4. 29.06.2006 4/13 Corporate Citizenship of local utilities in Germany Objective of the VKU Online Survey To demonstrate vis-à-vis customers the social commitment of local utilities in their municipalities in times of increasing competition (e.g. gas and electricity sector) To point out vis-à-vis governmental authorities: Everybody speaks about corporate responsibility – local utilities put it into practice To record and communicate vis-à-vis the public that local utilities play an important social role in the municipalities - far beyond their role as technical providers

5. 29.06.2006 5/13 Corporate Citizenship of local utilities in Germany In which areas is your company involved? – Overview Sponsoring: Clubs, Urban Culture, Sports

6. 29.06.2006 6/13 Corporate Citizenship of local utilities in Germany In which areas is your company involved? – Environmental protection Environment: Good Feedback n = 164

7. 29.06.2006 7/13 Corporate Citizenship of local utilities in Germany In which way does your company usually get involved ? Money and Commitment n = 162

8. 29.06.2006 8/13 Corporate Citizenship of local utilities in Germany How far is the geographical scope of your social activities? Clearly rooted in municipalities n = 158

9. 29.06.2006 9/13 Corporate Citizenship of local utilities in Germany Does your company foster co-operations in the field of corporate citizenship? Co-operation is important n = 157

10. 29.06.2006 10/13 Corporate Citizenship of local utilities in Germany Why does your company get involved in charity projects? Sense of responsibility for the municipality n = 157 We see advantages in CSR-projects in terms of image and reputation. As a local utility we would like to fulfil our social responsibility on-site in a special way. We see advantages in terms of marketing (e.g. brand enrichment by social features) We see advantages in urban and regional development. We see internal advantages in the development of our corporate culture. We see economic advantages in social citizenship. absolutely true mostly true

11. 29.06.2006 11/13 Corporate Citizenship of local utilities in Germany What was approximately the range of expenses for corporate citizenship of your company in 2004? – voluntary commitment Voluntary Engagement n = 98

12. 29.06.2006 12/13 Corporate Citizenship of local utilities in Germany How is the allocation of promotion of your company to the respective areas (average percentage)? Sports rank first n = 121

13. 29.06.2006 13/13 Corporate Citizenship of local utilities in Germany Conclusion of the survey Corporate Citizenship of local utilities is extensive and more than a mere public relations activity. Local utilities prove with their CSR-Commitment that they regard themselves as part of the region and want to stand out with these activities from private competitors. CSR-Projects are not sufficiently implemented into corporate concepts. Guidelines which can be used as decision criteria for a CSR-Engagement are missing VKU has developed such a manual with best-practice-examples, including tips and hints concerning the appropriate corporate communication policy so that local utilities keep on being an example for Corporate Citizenship.