“There is a lack of transparency”
Saori Dubourg, Executive Board Member at BASF, and Porsche CEO Oliver Blume talk about value balances, a company‘s inner compass and why dividends have nothing to do with the coronavirus.
But is it worthwhile for a company to show consideration for society and the environment? Their groups are members of the recently founded “ Value Balancing Alliance ”. The Value Balancing Alliance is working on measuring the contributions made by companies to society in financial terms.
Ms Dubourg, Mr Blume, in a crisis, is anybody really interested in how values are measured?
Oliver Blume: Two aspects are important, especially in these times: providing sustainable support for society and making this sustainable action more measurable – economically, ecologically, socially.
How do we get better at factoring in macroeconomic values as well as risks, and how do we use this to generate more transparency for investors, thereby contributing to market stabilisation?
That sounds very abstract.
Dubourg: The objective of the Value Balancing Alliance is to also represent the social market economy in terms of a financial balance.
Does this mean that your alliance has unexpectedly gained particular importance during the coronavirus crisis?
Dubourg: Yes, definitively. A company’s values are its inner compass, they must prove their worth now in the crisis more than ever. At BASF, the value contribution is based on three pillars: economic success, social security and environmental protection.
Why? Dubourg: You can see how closely wages and purchasing power are interlinked, as well as the consequences of uncertainty on demand behaviour. In 2017, we calculated our value contribution, along with that of all our suppliers and customers, that is generated by buying power – it amounts to almost 70 billion euros. All that just by paying the wages. This macroeconomic contribution is not yet represented in the financial statements today.
Blume: In this way, we give more importance to ecological and social aspects.
That does not help very much right now when many companies are simply fighting for survival.
Blume: But it will help to offer perspective. Of course, right now the priority is to manage the coronavirus crisis systematically and responsibly. At Porsche, we are concentrating on where we can help as a company. In recent weeks, we have provided support to the crisis task forces of Baden-Württemberg and Saxony in the form of consulting and IT experts.
Jun 08, 2020 at 00:28