Business and Customers

 

Satisfied customers, economic stability, value-creating growth and social acceptance are the focus of all Porsche's corporate activities. Corporate responsibility begins with the self- image of making an active contribution to the protection of the natural living conditions on earth as well as to our social environment. Economic efficiency, ecological awareness and social responsibility are not mutually exclusive. On the contrary, together they create added value for the stakeholders of Porsche. As a company, Porsche is an integral part of society. Ethical behavior is therefore essential. Porsche lives the fair competition and is not only legal, but also legitimate. The company systematically opposes corruption, respects compliance with internationally recognized human rights and categorically rejects any form of forced and child labor.


Customers & Dealers

Customer relationships 
The most important partner for every company is its customers. At the same time, they are the driving force and prerequisite of any economic activity. Porsche places great demands on maintaining its customer relationships and strives to inspire them for the product worlds of exclusive sports cars and smart mobility. Not only the buyers and prospective customers, but also the own employees, the suppliers as well as the service providers include the company. Sincere cooperation creates trust. And trust creates economic stability as well as long-term preservation and job creation to promote the regional economy. Porsche AG's revenue, operating result and deliveries reached their highest levels in the reporting period, as did employment. The year 2017 was the most successful business year in the company's history. In total, 246,375 units handed over more new vehicles to customers than ever before in the history of Porsche. Growth compared to 2016 was four percent.

Interaction and dialogue with its customers are therefore an essential strategic dimension for Porsche. An own main department bundles the tasks from the worldwide customer market research over the customer data management up to the individual treatment of customer concerns. As a cross-departmental function, it supports all core processes of prospective customer and customer service in cooperation with the respective departments.

In addition to classic communication channels, the company is constantly expanding new contact opportunities for its customers. Apps, social media channels, chat functions, but also the comprehensive personalized customer portal My Porsche serve not only the uncomplicated and quick information of the customers, but also the individual interaction with the company. Of course, personal contact also remains important in order to establish and maintain long-term customer relationships. Constructive criticism is an opportunity for Porsche to continually optimize its products and processes. The aim of Porsche's worldwide customer market research is to find out about customer needs and expectations, to take them up, to interpret them holistically, and to incorporate them into the development of products and services at an early stage. More than 200,000 customer surveys per year serve this purpose worldwide. The result of efforts in customer service and communication with the trading partners: In the APEAL study of the US opinion research institute JD Power, Porsche took 2017 for the thirteenth consecutive year the first place in the overall standings.

Forum product quality and customer satisfaction 
Knowing and addressing customer concerns are very important to Porsche. In the "Forum Product Quality and Customer Satisfaction" the needs and concerns of the customers are the focus. At the board level technical quality topics are discussed and the drivers of customer satisfaction and customer enthusiasm are also discussed. Causes that can lead to dissatisfaction are addressed openly, so that quick solutions are found in the interests of the customers. The close cooperation of technicians, representatives of the quality management as well as the areas of customer relations and after sales accelerates the processes and causes a focus on the concrete needs of the customers. In this way, it is possible to make well-founded, rapid decisions by the Executive Board across all divisions and to ensure swift implementation for customers. Product and service quality go hand in hand.

Service Excellence Standards Committee 
Excellent service is a central concern for Porsche. Accordingly, the company is involved in the field of customer relations at German and European level in the area of ​​"service excellence". At the European level, Porsche has about the German Institute for Standardization e. V. (DIN) in the project committee "Service Excellence Systems", which develops guidelines for excellent service with the goal of continuous customer enthusiasm. At the same time, the ideas that result from working with representatives of various companies and organizations in other European countries are incorporated into their own customer processes and thus benefit the Porsche customers again and again.

Dealer Sustainability Initiative 
With the "Dealership Sustainability Initiative", Porsche AG supports trading companies worldwide in the planning, construction and operation of ecologically sustainable Porsche Centers.Porsche provides its international network with a comprehensive planning manual. The manual addresses all areas of environmental sustainability and energy efficiency and presents solutions specifically tailored to the Porsche architecture. The topics range from water saving through building construction, building technology and renewable energies to information on handling dangerous goods.

Since a look at energy efficiency and sustainability also pays off for existing buildings, one chapter of the manual focuses on optimization during operation. The packages of measures can be applied in a variety of ways and, in addition to short-term approaches such as user training, the use of water-saving valves or a conversion to green electricity, also include extensive remediation options such as the replacement of the heating or cooling system.

Another pilot project for the ecologically sensible design of Porsche dealerships is the modular photovoltaic carport. Porsche has developed this modular carport together with the CIP Architekten Ingenieure office in Stuttgart. With its filigree support structure with integrated Porsche universal chargers (AC) and a roof surface made of semi-transparent glass-glass photovoltaic modules, the building enables the charging of plug-in hybrid and electric vehicles with locally regenerative electricity. A carport module with a roof area of ​​33 square meters enables the generation of more than 3,000 kilowatt hours of energy per year. This is sufficient for over 200 battery charges of a Panamera 4 E-Hybrid and allows the equivalent of a purely electric range of 10,000 kilometers. In the 2017 reporting year, the first photovoltaic carport was commissioned at the new Porsche location on Sylt. The filigree support structure with integrated Porsche universal chargers and a roof surface made of semitransparent glass-glass photovoltaic modules generates more than 3,000 kilowatt hours of energy per year - sufficient power for around 200 battery charges of a Panamera 4 E-Hybrid or the equivalent of around 10,000 kilometers. As part of the commitment on the island of Sylt, Porsche has already installed nine charging stations on the North Sea island. The aim of the initiative is to provide drivers of hybrid vehicles with a sufficient charging network on the island. The charging stations are not only for Porsche drivers usable, but the universal AC charging stations can be used with the usual hybrid vehicles.

Through global customer market research, Porsche ensures that customer needs are incorporated into the development of products and services at an early stage - and thus also enable long-term customer loyalty. Each year, the company conducts over 150,000 customer surveys worldwide.

In order to design and implement optimal customer care processes for customers and prospects around the world, Porsche is continuously developing its worldwide customer relationship management system "CRM @ Porsche". The high number of system users worldwide impressively documents the high acceptance of this highly integrated, innovative platform and the endeavor of individual and long-term customer processes at all distribution levels and across all channels.

Porsche sees critical customer feedback as an opportunity to develop further in the sense of a learning organization and to expand its customer orientation. The company is constantly looking for individual solutions in order to meet the requirements of long-term customer loyalty, even in special situations, true to the motto "car for life - customer for life".


Suppliers

Sustainability in the supplier relationship 
Porsche Procurement centrally purchases production material, services and capital expenditures. In view of the steadily increasing sales of Porsche vehicles in recent years and the associated demands on procurement, this division has increasingly become the focus of sustainability management. The cooperation between Porsche and its suppliers is based on trust and shared values.The core and central criterion for cooperation is compliance with sustainability requirements along the entire value chain.

Porsche AG does not tolerate any human rights violations. Therefore, according to the UK Modern Slavery Act, Porsche publishes the "Slavery and Human Trafficking Statement". Further information can be found here .

Organizational structure 
As part of the integration of the company into the Volkswagen Group, the purchasing department of Porsche AG was largely integrated into the Group-wide procurement organization.Appropriate structures, processes and systems have been established for joint procurement. The awarding decisions made by Porsche are therefore coordinated and coordinated extensively with the Volkswagen Group. Since 2013, Porsche has been an active part of the Group-wide procurement network Sustainability and is fully integrated in the concept of "Sustainability in Supplier Relationships". The Group-wide organization of procurement and the cooperation between the individual brands and regions enable Porsche to draw on the entire expertise and global capabilities of the Volkswagen Group. For example, Porsche also uses these resources to sensitize employees and executives to the topic of sustainability.

Sustainability concept and strategy 
Within the Volkswagen Group, the concept of "sustainability in supplier relations" ensures that the high environmental and social standards are also taken into account by the business partners.The concept is based on three pillars:

Sustainability requirements for suppliers, which all suppliers must take note of before submitting an offer via the Group Business Platform and which are contractually fixed as part of the commissioning

Early detection system to identify and minimize risks along the value chain

Supplier monitoring and development

The effectiveness of this concept is regularly checked by benchmarks with other companies as well as by intensive analysis of the results of sustainability ratings. In addition, the Volkswagen Group is organizing a one-day stakeholder dialogue on sustainability in the supply chain. Porsche also exchanges views with business partners, associations and NGOs, thus gaining valuable information for further optimization and development.

Sustainability requirements 
The basis of this concept is the "Requirements of the Volkswagen Group for Sustainability in Relations with Business Partners (Code of Conduct for Business Partners)". These requirements also apply to all Porsche suppliers and the goods and services procured by Porsche. In doing so, any corrupting and company-damaging behavior in everyday business is rejected, as are violations of environmental and social standards. Adherence to competition and antitrust law is required and checked. The requirements are based inter alia on respect for internationally recognized human rights, the Charter of the International Chamber of Commerce and the OECD Guidelines for Long-term and Sustainable Development. In addition, the relevant core labor standards of the International Labor Organization (ILO) form the foundation of sustainability requirements. These include respect for the right to freedom of expression, protection against arbitrariness and prohibition of discrimination at work, the prohibition of forced and child labor, the fundamental right to freedom of association and the right to equal treatment and remuneration. It is also expected that all suppliers will comply with the OECD Due Diligence Guidance on Promoting Responsible Supply Chains for Minerals from Conflicts and High Risk Areas. As a matter of principle, Porsche expects all suppliers to ensure that their suppliers have a high regard for sustainability issues.

Risk analysis 
New suppliers and business partners go through an integrity check at Porsche. The goal of the process is to gain knowledge of the potential business partner in advance of a business relationship in order to reduce the risk of business and company-damaging cooperation. This so-called "Business Partner Check" is carried out prior to the activation of new suppliers on the Group Business Platform.

In addition, with the support of independent institutions, the Volkswagen Group has undertaken a country risk analysis to which Porsche has access. According to them, there is an increased risk of non-compliance with the sustainability requirements in Brazil, India, China, Mexico and Russia. For this reason, the Volkswagen Group places particular emphasis on supplier development in these countries. Another problem area is the so-called conflict minerals. Therefore, information on minerals or refineries used by the supplier or sub-supplier must be provided on request. For this purpose, the use of the standardized reporting template of the Responsible Minerals Initiative (RMI) is recommended. Using the data from the RMI, the Volkswagen Group then informs suppliers who are in business relations with a conflicting smelter or refinery about the possibility of using a conflict-free melt or refinery.

Integration into the procurement process - Group Business Platform 
The Volkswagen Group Business Platform is the central system for interaction with suppliers. Here the central procurement applications are summarized. In addition to the interactive functionality for everyday business, the Group Business Platform is also an information medium. Here, suppliers will find the "Requirements of the Volkswagen Group for Sustainability in Relations with Business Partners (Code of Conduct for Business Partners)" as well as all information on the concept of "Sustainability in Supplier Relationships". All Porsche suppliers must take note of the sustainability requirements at the first submission of tenders and at least every twelve months thereafter. Without notice, a supplier can not make an offer. The sustainability requirements are also enshrined in the Porsche supply contracts as a binding component and further additional requirements with regard to minimum wages and compliance are integrated into Porsche's General Terms and Conditions of Purchase.

supplier monitoring 
All suppliers are invited to complete a questionnaire on sustainability. In the case of unsatisfactory answers, the supplier will be asked for a direct written opinion. This also applies to justified suspicions and possible deviations from the existing sustainability requirements. The opinion will be reviewed by experts in the field concerned. If the answer is unsatisfactory, further measures are defined and taken. Porsche has its own ad hoc expert team for these cases. In addition, the responsible Porsche brand representative is in close contact with the other representatives of the brands and regions of the Volkswagen Group in the event of suspicion and can thus access additional local resources. In 2017, there were five ad hoc cases under the leadership of Porsche.

Since the beginning of 2016, Porsche has also taken advantage of the opportunity to review selected business partners with a sustainability audit by an independent audit service manager. If violations or development potentials are identified during the auditing, Porsche, in cooperation with the supplier, will agree on an improvement plan. If required, Porsche also supports the implementation. In the event of grave violations, an ad hoc case will also be opened. In 2017, an independent service provider has a total of   carried out eleven audits. Porsche plans the further expansion of this instrument for the following years.

Supplier development with eLearning modules 
In line with the continuous supplier development process, all suppliers are provided with a digital learning module (eLearning) in nine languages ​​on the Group Business Platform. In the learning module, the user first learns about the requirements for environmental and social standards on the part of the Volkswagen Group and what the sustainability requirements are based on. Following the eLearning, the supplier goes through a self-check. Only if this has been successfully completed, the learning module is considered passed.

Training on sustainability in the supply chain 
For Porsche, it is essential that all suppliers comply with social and environmental standards along the entire supply chain. Especially in view of the increasing complexity and global branching of the supply chains, this presents a company with far-reaching challenges. Those responsible must therefore be informed in the best possible way how the company reacts when it violates given standards and what consequences are to be drawn in individual cases. For this reason, more than 20 percent of procurement employees were again trained in the 2017 reporting year in two one-hour training sessions on sustainability in supplier relationships.

In cooperation with the AutoUni in Wolfsburg, lectures and research projects are also offered on a regular basis in order to point out interdependencies and procedures for Group employees . The AutoUni has a total of nine institutes, which are aimed at different departments. All participants can choose between three event formats:

1. One to two-hour lectures give food for thought on different topics.

2. At one to two-day conferences, individual questions are discussed in detail in the expert group.

3. Cooperative study modules and programs deepen scientific topics over several months and reflect them from the company's perspective.

All courses offered are led by renowned speakers from academia, industry and field experts.

Sustainability workshops with suppliers 
In order to intensify the exchange with suppliers on the subject of sustainability, Porsche developed a concept for supplier workshops in the year under review and invited them to two events.Within the framework of the workshops, common approaches to the implementation of sustainability aspects were identified and potential topics for further cooperation were defined. Thus, Porsche implemented another measure of the 2025 procurement strategy. Compliance with sustainability requirements will continue to be the focus of Porsche procurement.


Governance

Compliance 
Porsche has established a comprehensive compliance management system. Further information can be found here .

Data protection 
Porsche takes the protection of personal data very seriously and respects the right to informational self-determination. Data protection is - independently and without instructions - involved in relevant business processes to ensure compliance with legal requirements. In addition, Porsche has committed itself to privacy principles such as data economy, earmarking and confidentiality within its own guidelines. Employees entrusted with the processing of personal data undertake to observe data secrecy. Employees are sensitized to data protection through regular training and awareness campaigns.

Political dialogue 
For Porsche, it is important to work on solutions to existing societal, ecological and economic challenges. For this purpose, Porsche is also involved in association work in order to represent the interests of the company and its employees and to contribute their expertise. All corporate activities in this area are carried out in accordance with existing legal provisions. Porsche is committed to party political neutrality and relies on an open and transparent dialogue culture towards its local, regional and national stakeholders in politics and society. The following list shows a selection of Porsche memberships in mergers and associations:

Association of the Automotive Industry e. V. (VDA)

National Association of Baden-Württemberg Industry e. V. (LVI)

Südwestmetall

Chamber of Industry and Commerce (IHK) Stuttgart

Society for the Promotion of the Institute for the World Economy

American Chamber of Commerce in Germany (AmCham Germany)

New drive and mobility concepts are the topic of public and political discourse. As a locally rooted company, Porsche is involved in a number of regional initiatives aimed at promoting these important topics. These include, for example, the "Automotive Dialogue" initiated by the Baden-Wuerttemberg Ministry of Finance and Economics, the Strategy Dialogue Automotive Industry initiated by the state government and the "Sustainable Mobility Stuttgart" initiative launched by the Stuttgart Mayor Fritz Kuhn.

The headquarters in Zuffenhausen is located on the edge of a metropolitan metropolitan area. Porsche is therefore looking for an open and neighborly dialogue with the local residents. At local and regional level too, there is a lively exchange of information with politics in order to ensure a transparent flow of information on construction projects and measures for all involved and to make possible concerns or concerns heard. In January 2015, the Porsche residents' newspaper "targa" was published for the first time with information on the state of planning, with background information on the mission E project and on the development of the parent plant. In March 2017, Porsche provided first-hand information to the neighbors at the Stuttgart-Zuffenhausen production site about the progress of the project as part of an information event. In addition, the company provided information about the project on a project website. Similar resident information events were also held at the Weissach and Mönsheim sites in the year under review. Porsche continues to adhere to the practice of intensive dialogue and offers a contact point for residents' concerns with its e-mail address "nachgefragt@porsche.de".


Economics

Risk management 
In accordance with the German Stock Corporation Act (AktG), the Porsche Group is subject to legal requirements for risk management. In addition to the fulfillment of legal requirements, the establishment of a risk management system involves economic objectives. Porsche's risk management system is an integral part of the planning, control and reporting processes and is essentially divided into four elements: the systemic and the acute risk situation, the internal control system and business continuity management. In the systemic risk situation, the focus is on the transparency of implemented control processes and monitoring activities for the validation of a functioning control system; the acute risk situation focuses on concrete impending target deviations in order to strengthen early risk detection in the Porsche Group. The purpose of the internal control system is to reduce operational risks that can arise from process weaknesses, while business continuity management ensures a rapid and proper response in the event of major catastrophe events through contingency plans. Using appropriate concepts and methods, the risk management system creates transparency on the risk situation, enables adequate measures to be derived, and thus supports Porsche's strategic goal achievement.

There are various interfaces between risk and sustainability management. In the context of risk identification, risk management also makes use, among other things, of the findings of the stakeholder surveys on the topic of sustainability and the materiality analysis carried out accordingly. The results of the surveys of the stakeholders relevant to Porsche are used by risk management to reconcile completeness as part of the risk identification phase. The active exchange between sustainability and risk management at Porsche thus contributes to further optimization and refinement of the process landscape as well as the standards and methods of risk management processes implemented throughout the Group. Last but not least, the exchange will continue to be promoted by the Sustainability Advisory Council, which will be installed in 2016. It will act as a consultant and serve as a catalyst for promoting Porsche's stakeholder dialogue in matters of sustainability. The expertise of the Sustainability Advisory Board can be used for risk management, in particular when dealing with selected key topics, in order to exchange both scientific and practical experience and to integrate it in the individual projects.

Envestments 
Since 2016, the Porsche headquarters in Zuffenhausen have been dominated by the future vehicle generation. After the Porsche AG supervisory board gave the go-ahead for the construction of the first all-electric Porsche at the end of 2015, Porsche is also creating more than 1,200 jobs there and investing more than one billion euros in the location. In the next few years, a new paint shop and its own assembly for the electric vehicle. The engine plant, which opened in July 2016, will be expanded for the production of electric drives and the existing body shop will be expanded. A conveyor system connects the new paint shop with the final production.

With the founding of Porsche Digital GmbH at the end of May 2016, Porsche launched the digital innovation offensive. The new subsidiary identifies and develops digital customer experiences, products, business areas and business processes. Porsche wants to consolidate its position as a leading provider of digital mobility solutions in the premium segment of the automotive industry. In 2017, Porsche Digital participated in the Stuttgart-based technology company Home-iX. It allows automotive companies to offer personalized Smart Living solutions that connect vehicles and the home. Porsche Digital has acquired a 10% minority stake in Home-iX. The collaboration between Porsche and the start-up revolves around concrete solutions that connect a networked home, vehicle, mobile devices and digital assistants.

In the year under review, a new location was founded with Porsche Digital Inc. in Silicon Valley, California. In this way, digitization strategies and trends in the US market are to be recognized more quickly. Porsche Digital Inc. in Santa Clara is to employ around 100 people in the future. In addition to Silicon Valley, Porsche also set up an "Innovation Office" in Israel in the second half of 2017. With the office in Tel Aviv, the Stuttgart sports car manufacturer wants to secure access to technology trends and talents in the top market for IT experts and engineers. In a first step, Porsche invested a double-digit million amount in the venture capital funds Magma and Grove. Further investments in start-ups and funds are planned.