Responsibility requires responsible people

Our management system is one of a kind. Sustainability is an integral part not only of our business strategy, but also of our organisation. We have placed the responsibility of sustainably developing our business activities in the hands of our departmental employees – at every level of the hierarchy. Reporting directly to the CEO, our central Corporate Responsibility department supports departmental employees in their efforts, functioning as an internal business consultancy team.

We would like to demonstrate how our management system functions by means of the following examples, based on our objective of switching from conventionally produced to sustainable raw coffee. This approach applies to all of our product lines and major processes.

Stage 1: Creating and adopting goals

Our stated aim of selling only sustainable coffees was developed by the marketing/product development department for coffee and the purchasing department for raw coffee on the basis of the “Building Our Future on Tradition” company strategy. The departments instructed the Corporate Responsibility department to check the feasibility of this goal and to develop projects to make the shift from conventional to sustainable raw coffee in cooperation with standards organisations such as the Rainforest Alliance, Fairtrade and 4C as well as raw coffee suppliers.

Additionally, the marketing/product development department for coffee involved experts from other departments in the goal-setting process, particularly the production department for the later roasting processes and the logistics department for shipping processes as well as the legal department for contractual agreements.

The goal, along with all of its interim objectives and further core objectives, was presented to the CEO and the Management Board, who approved it. Thus, sustainability targets become part of the personell objectives of the department staff together with their superiors.

Stage 2: Implementation

All departments involved share equal responsibility for implementing the measures necessary to achieve the goal and its interim objectives. Interdepartmental working groups are set up wherever necessary. The Corporate Responsibility department coordinates all measures required for implementation, in particular by lending support to the raw coffee purchasing department to carry out the projects intended to make the shift from conventional to sustainable qualities.

Stage 3: Assessing achievement of objectives

The Corporate Responsibility department’s main responsibility is to monitor our progress in attaining the goal and interim objectives. After hearing from all of the involved departments, Corporate Responsibility reports the current situation to the CEO and Management Board. This happens several times a year within the framework of regular feedback talks and since 2011 once each year in late autumn in Task Fulfilment/Task Planning, in which all department heads report back on the progress made towards the implementation of all company goals. The “review” also confirms and, if necessary, revises ongoing goals and announces new objectives.

The CEO reports on sustainability goals and our progress towards reaching our objectives at least once a year to the Tchibo GmbH Supervisory Board as well as to the Management and Supervisory Boards of our proprietor, maxingvest ag. The works council is also included in this communication.

Stage 4: Integrating products into the sales mix and communication

In the final stage, sustainable coffee products are integrated into our product range and marketed. Integrating products into the sales mix falls under the responsibility of the marketing/product development department for coffee. Department heads in the various areas of communication, such as corporate communication, marketing for coffee and consumer goods, umbrella marketing and sales marketing, are responsible for communication.

The following diagram illustrates the sustainability management system for all products and major processes.

The Corporate Responsibility department: One team – diverse responsibilities

The Corporate Responsibility team possesses knowledge and experience in the fields of environmental engineering, natural sciences, food sciences, social sciences, marketing, law and communications. It takes on the following responsibilities.

• Advising and coordinating: Corporate Responsibility employees support the departments as they develop sustainability goals and take concrete measures to attain goals and interim objectives. They have an overview of all activities, which they also coordinate.
• Central contact: The Corporate Responsibility team is the first contact for all questions or ideas related to sustainability at Tchibo. Together with the Corporate Communications department, the team maintains contacts and leads communication with stakeholders.
• Outward representative: The Corporate Communication department represents the company in committees, at conferences and at round tables with a focus on sustainability.
• Data protection: Since mid-2009, data management has been centrally assigned to Corporate Responsibility and as such has direct access to corporate management.
• Issues management: A further responsibility is issues management. This involves identifying new sustainability issues which are relevant to Tchibo. In this context, the team analyses societal trends and legislative initiatives. The employees also regularly communicate with Tchibo’s market research experts, who also collect and analyse significant trends.