The basis for successful HR work is Porsche’s continual positioning as an attractive employer. Firmly anchored in Porsche’s HR strategy, employer attractiveness is one of four central priorities enshrined in the overarching Porsche Strategy 2025 Plus. The benchmarks in this regard include five defined strategic fields as well as the corporate guidelines.
The continuous development of its corporate culture is exceptionally important to Porsche, particularly against the backdrop of the strong growth in staff numbers in recent years and the company’s realignment in response to the digital transformation. Following the introduction of the Porsche code – which draws on the new culture guidelines comprising the four elements of dedication, pioneering spirit, sportiness and family – a series of dialogue events labelled “leadership labs” were held during the reporting year with the objective of developing and enhancing this code. These were attended by over 1,500 managers – from foremen to members of the Executive Board – who developed a common understanding of leadership over the course of the workshops.
Porsche strives to ensure that its staff can achieve a work–life balance. Employees receive support through a wide variety of different measures and options. In this way, local cooperation partners ensure that sufficient childcare places are available in nurseries close to the company’s sites. In addition, employees’ children can take part in a series of summer events covering the entire school holiday period. On top of this, the Porsche family service provides free personal advice and support relating to all aspects of family life. A collaboration with DHL also saw package delivery stations come into operation in the reporting year at the Weissach and Zuffenhausen sites, making it much easier for employees to collect or drop off their parcels and save valuable time in the process. These stations are, of course, also available to all other DHL customers.
Porsche considers employees’ individual needs and promotes flexible working options with respect to workplace and working hours, thereby ensuring maximum flexibility whatever the situation. As a result, a works agreement has been put in place to enable mobile working. This grants employees the flexibility to decide where and to a certain extent when they complete their tasks away from the Porsche operating sites. Further options range from flexitime aligned to the employee’s current phase of life through to care leave that enables them to support family members. Employees may also take voluntary sabbaticals or work part-time. In addition, many opt to take parental leave. Porsche then helps these individuals make a smooth return to work, also informing them during their parental leave of further qualifications that could simplify the process of returning to work. The reporting year saw a total of 1,322 (2018: 1,205) employees taking parental leave, of which 243 (2018: 253) were women and 1,079 (2018: 952) were men.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of attractive employer in this report contributes to the reporting requirements of GRI 401: Employment. This is measured and reported on the basis of the following key figures: total workforce, employee structure, new hires and employee turnover, and parental leave claims.
Equal opportunities and diversity
Safeguarding and promoting equal opportunities and diversity is highly important to Porsche and is therefore anchored as a corporate principle. The company takes it as a given that all people should be offered the same chances and rejects all forms of discrimination. It is committed to diversity, takes an active approach to inclusion and creates an environment that promotes everyone’s individuality in the interests of the company. As a member of the wider Group, Porsche has also signed up to the applicable standards for promoting and safeguarding diversity and equal opportunities within Volkswagen AG’s Together4Integrity change programme.
By adding their signature to the “Charta der Vielfalt” (diversity charter) in the reporting year, the Executive Board and employee representatives clearly demonstrated their appreciation for the importance and added value of equal opportunities and diversity within the workforce and wider society. Respectful, tolerant interaction and a positive approach to a wide range of perspectives – such as different skills, experiences and viewpoints – both target the achievement of maximum productivity, competitiveness, innovative capacity, creativity and efficiency. At Porsche, employees are chosen, appointed and promoted on the basis of their qualifications and abilities.
A core success factor for promoting a corresponding corporate culture is to engage in sensitisation across the company, thereby creating awareness of the importance and added value of equal opportunities and diversity both at management level and within the overall workforce. The most senior levels of management should serve as a particular point of focus, using their status as role models to have a positive influence on the behaviour of the workforce. Equal opportunities and diversity are promoted to ensure heterogeneity on all decision-making levels – for example, in terms of gender, age, skills, experience, internationality and other similar aspects. The importance of this topic is reflected in the equal opportunities target agreement that entered into force in 2013, is linked to the awarding of bonuses, and aims to boost the proportion of management positions occupied by women in accordance with equal opportunities. Leadership labs, diversity cockpits and special tools for identifying, implementing and expanding diversity are used to qualify and sensitise the management to dealing with a wide range of perspectives.
The Equal Opportunities department, which is anchored in the area of HR development and talent strategy, serves as a catalyst and expert partner for the long-term implementation and safeguarding of equal opportunities and diversity.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of equal opportunities and diversity contributes to the reporting requirements of GRI 401: Employment. This is measured and reported on the basis of the following key figures: total workforce, employee structure, new hires and employee turnover, and parental leave claims.
To be optimally prepared for the challenges posed by the digital transformation, Porsche identifies and retains qualified professionals and managers. Key pillars of HR development at Porsche include training that focuses on future requirements, ongoing skills acquisition, and options and routes for internal development.
Staff development is founded on professional training as well as the support and qualification of students – for example, through dual-study programmes or the Porsche Trainee Programme. Another important component is hiring all apprentices who pass their final examination on permanent contracts. Throughout their careers, employees have access to a diverse range of programmes for their systematic professional development on all levels. These include the Warm-Up introduction programme, the Porsche Development Programme to prepare candidates to take on management roles, and specific qualification and talent promotion measures tailored to the target group in the field of production. To this end, the Fit for the Shop Floor induction programme was introduced in the reporting year for first-level operational managers. The Porsche Professional Programme for newly appointed managers from the second reporting level has complemented the existing modular and international management qualification options since 2019.
Employee support and qualification is not only a central component of the Porsche culture and code but also firmly anchored in the Porsche Strategy 2025 Plus. The digital revolution in particular is placing new demands on the workforce. With this in mind, the Fit for Digit@l initiative launched in 2017 was rolled out at a series of additional company sites. In the reporting year, the primary focus was on the communication of external trends and the acquisition of in-depth knowledge within the Porsche action areas as part of the digitalisation strategy. The high level of interest across the workforce is reflected in the more than 12,800 completed digital learning modules on topics such as agile working at Porsche and automated driving as well as the 500-plus attendees at seminars and workshops on the digital transformation at Porsche.
The comprehensive range of training opportunities is continuously being expanded and optimised. Here, too, skills relating to the digital world and the digital mindset are crucial. In 2019, Porsche began realigning the content and didactics of its management training options while also expanding the existing training portfolio for all employees to include new courses featuring the blended learning approach, such as working in virtual teams. In this process, the annual qualification and development appraisal represent the key foundation for individual qualification and development planning. Core resources for digital learning are the Porsche learning platform introduced in 2017 and the media laboratory opened the following year. These enable the departments to design and produce their own digital learning formats with the help of HR development. The fact that there are now over 26,000 active user profiles illustrates how intensively employees use the platform and engage in self-managed learning to actively advance their skills.
The Porsche learning platform is also increasingly being used for qualification projects with a broader scope. For example, the digital learning module “High voltage instruction – vehicle technology basics” introduced at the start of the reporting year is intended for all employees of Porsche AG and its German subsidiaries. This module aims to familiarise the workforce with the topic of high voltage in a legally sound manner while communicating basic knowledge of high-voltage applications and the fundamentals of electromobility. This departmental and HR development joint project won the ComeniusEduMedia Award.
Against the background of the Porsche Strategy 2025 Plus and the far-reaching changes in the automotive industry, the structured creation and expansion of future-oriented skills among all employees is a vital aspect of HR development activities. The strategic skills management methodology has been developed accordingly. Based on current and anticipated future roles, the required skills, job descriptions and requirements are qualitatively and quantitatively recorded and compared with one another in a systematic process. Any identified skill gaps can thus be addressed at an early stage through targeted retraining and further training, recruitment and new priorities in ongoing training. Strategic skills management enjoyed a successful roll-out in the technical development of Porsche AG during the reporting year and was transferred to regular operations. It is set to be implemented in all areas of Porsche AG from 2020.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “staff development” contributes to the reporting requirements of GRI 404: Training and Education. This is measured and reported on the basis of the following key figures: the number of participants in training measures and the average training hours per employee.
One of the key pillars of Porsche’s corporate culture is corporate co-determination. Porsche benefits from continuous dialogue, even on critical issues, as well as open, direct communication across all levels of the organisation. The employer and the Works Council have traditionally engaged in a continuous exchange on all issues affecting the staff and the company. There are numerous ways for employees to bring their suggestions, problems or complaints to the attention of committees and decision-making bodies, be it openly or discreetly through special channels.
The exceptional role played by corporate co-determination is also reflected in the age of digitalisation. Employee representation at Porsche is incorporated early in the design process to ensure optimum and lawful coverage of areas with essential relevance to corporate co-determination, such as the introduction of IT systems that can monitor the behaviour or performance of employees, data protection measures and regulations pertaining to electronic communication media. Close cooperation between the employee representatives and the company itself is also crucial to the process of identifying corporate solutions for the new digital working environment. Internal media keep staff up to date on current issues – additionally and particularly from the perspective of employees and their elected representatives. In addition, the Works Council offers employees a platform for comprehensive information and open discussion with its works meetings, which take place at the individual Porsche sites in Germany. It is also established practice at Porsche to inform employees and their elected representatives about important operational changes, doing so in as timely and comprehensive a manner as possible. This is done in compliance with national laws, applicable collective bargaining agreements and works agreements. Adherence to this corporate practice is ensured in a number of other ways, including through a supervisory board with equal representation, the Works Council committees and the works agreement database on the intranet.
All company employees are covered by collective wage agreements and works agreements. At Porsche, it is the respective role based on the remuneration framework agreement that is used to determine equitable and fair pay. An additional package agreed in relation to the future labour market combines a variety of working time regulations such as flexitime, voluntary sabbaticals and care leave. As a member company of the Südwestmetall employers’ association, the company also participates actively in the social partnership between the metal and electrical industry and the IG Metall trade union.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “corporate co-determination” in this report contributes to the reporting requirements of GRI 402: Labor/Management Relations and GRI 407: Freedom of Association and Collective Bargaining.
Occupational health and safety
A motivated and capable workforce is Porsche’s most important resource. Porsche health management has a key role to play in ensuring that the company can continue to develop, produce and sell exclusive cars in the future, too. Alongside the occupational healthcare provided to employees at the various sites, new occupational health promotion measures are now also available to certain areas. For example, Porsche employees may also arrange to have a thorough medical check-up and obtain preventive medical advice on any health issues. This voluntary health check is carried out by qualified doctors during working hours. The Porsche health management system also includes courses on optimum nutrition, relaxation techniques and effective self-management. Employees can also access individual physiotherapy advice at the workplace.
Occupational safety is a top priority for Porsche and its employees. An organised and structured system for occupational health and safety ensures a uniform approach and the implementation of legal provisions. This system helps to prevent accidents at work and occupational illnesses as far as possible.
The central processes are standardised and regulated by the Group guideline on occupational safety. This guideline represents an essential element of the company’s compliance management system and applies to all employees. The managers ensure that their employees are familiar with and comply with the provisions of this guideline. Specialists in occupational safety and works doctors are available to all employees in an advisory capacity. All staff members are also represented through the legally defined representatives in the occupational safety committees in accordance with the Occupational Safety Act.
Safety experts design workstations, equipment and installations with the focus on prevention and safety. The observation and monitoring of construction and installation sites by special construction site experts exceeds the statutory requirements, with the safety standards being permanently updated in the process.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “occupational health and safety” contributes to the reporting requirements of GRI 403: Occupational Health and Safety. This is measured on the basis of the following key figures: number of accidents, workdays lost and cases of death, as well as injury rate. The key figures are currently being gathered for Porsche AG and Porsche Leipzig GmbH with an expansion to include the Porsche AG Group planned for the future.
Compliance and integrity
Compliance with applicable laws and acting with integrity are essential to responsible operations. The relevant guiding principles present integrity as an internal attitude, while compliance is framed as conforming to rules.
The company has put in place a compliance structure based around its business model to ensure that it acts lawfully, with legally secure processes and preventive and reactive measures. The Porsche compliance management system encompasses six areas of compliance, such as anti-corruption measures and money laundering prevention. In order to avoid any infringements of the law and to help its employees act in accordance with legal and statutory provisions, Porsche has had a compliance system in place for many years now. This system includes a chief compliance officer, compliance officers at Porsche AG and local compliance officers at the Group member companies. The compliance programme encompasses a range of different preventive and reactive measures.
Regular risk analysis is carried out to define areas that require action and preventive measures. The company’s business model, relevant environmental conditions and the relationships with business partners are all taken into account. Key preventive measures at Porsche include the adoption and communication of binding rules, while managers and employees have access to confidential advice as well as training and information on relevant compliance issues. Ultimately, the code of conduct sets out the most important rules to be applied at Porsche in accordance with the company’s business model. This code documents the expectations of managers and staff in terms of the responsibility they must assume for compliance as a member of society, as a business partner and at the workplace. The rules are also set out in guidelines, covering such areas as how to avoid corruption or violations of antitrust law, how to handle conflicts of interest or the receipt of gifts, and how to prevent money laundering. To ensure and promote lawful behaviour over the long term, all managers and employees are given regular information and training tailored to the specific risks and target groups.
Porsche’s central compliance help desk offers information and advice on compliance issues internally, providing expert answers to all questions from managers and employees alike. The help desk can also be contacted confidentially to report (possible) breaches of the rules, such as criminal acts or serious irregularities. Outside the company, Porsche managers, employees, customers and business partners, as well as public officials and other external individuals, can report legal violations anonymously to two ombudspersons. All of the information received is carefully examined according to the requirements of data protection law, and any violations found are responded to appropriately in line with the relevant provisions of employment and co-determination laws. This includes introducing suitable countermeasures and sanctioning cases of individual misconduct. The Executive Board of Porsche AG receives regular reports on actions taken by the compliance organisation and on preventive and reactive measures implemented in the Porsche Group.
The compliance officers for each area, together with the HR department, are responsible for compliance training. Most of the training currently being delivered takes the form of classroom-based sessions. In addition, digital learning modules on mandatory topics such as the code of conduct and voluntary options such as data protection are also available. The range of digital learning modules is to be gradually extended to include more compliance issues in the future.
The compliance managers deliver the training on the basis of a subject-specific plan, which uses risk analyses to identify target groups and key areas of content, and also defines organisational aspects such as the number and frequency of events and the capacities needed. A regular programme of set training events is in place for (new) managers and employees, as well as for junior managers and trainees. In addition, training courses are held on current or relevant topics, for the benefit of areas faced by specific risks, or on request.
For example, since the relaunch of Porsche’s programme for junior managers in 2019, compliance training has been available in various formats, covering a range of issues through classroom-based and online modules. Participants can also gain an insight into the company’s compliance culture, management and rules, including the code of conduct, via an online offering. As part of the presentation via Skype for Business, participants can get involved in a live multiple-choice session. The speaker can use the voting results to provide qualitative feedback and respond to any unanswered questions at the end. All compliance issues – including anti-corruption measures, money laundering prevention and antitrust law – are presented by compliance officers during the classroom-based sessions. As well as presentations and case studies, there are also workshop sessions involving group work where case studies and dilemmas are tackled with the help of a board game.
New employees are familiarised with the company’s compliance culture during the Porsche Warm-Up event, an introductory training session generally held monthly. The event is based around the World Café, in which newly hired staff have the chance to look intensively at the code of conduct and basic rules on avoiding corruption, tackling specific cases before presenting their solutions to the full group. In addition, the compliance image film and a presentation of the most important requirements and expectations for employees round off the introduction to the topic of compliance.
All compliance training at Porsche is compulsory. The amount of training undertaken by compliance officers is monitored over the course of the year, with the final status being reported to the Compliance Council, the Executive Board and the Supervisory Board. Since 2018, attendance at compliance seminars has been recorded in compliance employees’ training file.
Porsche employees can find further information on the courses offered by the compliance officers on the intranet. In addition to relevant Group and company guidelines, this information includes contact persons and ways to report concerns either internally or externally, along with a range of materials such as compliance videos, flyers, notecards and brochures.
The code of conduct was updated in 2019 to reflect the requirements of the Group guideline on compliance management. This code sets out all aspects of employees’ responsibility for compliance:
– as members of society – human rights; equal opportunity and equal treatment; product conformity and product safety; environmental protection; donations, sponsorships and charity; communication and marketing; political lobbying
– as business partners – conflicts of interest; gifts, hospitality and invitations; prohibition of corruption; dealings with public officials and holders of political office; prohibition of money laundering and terrorism financing; accounting and financial reporting; taxes and customs; fair and free competition; procurement; export control; prohibition of insider trading
– Illustrative examples that employees might face on the job are provided for each topic in the workplace: occupational safety and healthcare; data protection; security and protection of information, knowledge and intellectual property; IT security; handling company assets
There is also a self-administered test designed to help employees make decisions in case of doubt. Porsche’s code of conduct is implemented in a variety of ways, such as being published on the Internet and intranet, presented during training and information events, and addressed in the relevant digital learning module. All new employees are also provided with a hard copy in the form of a brochure at the welcome event on their first day.
Integrity means acting responsibly, resolutely and with personal conviction in accordance with ethical principles. As a fixed component of the strategic guidelines of Porsche, a high value is placed on integrity within the scope of collaboration. Acting with integrity is also indispensable in retail, which is why it has been anchored in the Porsche service standards as the highest value. This high awareness of integrity is reflected in its successful implementation in the responsible committees and steering committees. Regular reporting to the Executive Board was also introduced in the reporting year.
An established catalogue of internal communication measures has been deployed in order to progressively sensitise the workforce to the topic of integrity. This is subject to regular improvements. Behavioural integrity within the company organisation is also featured as a topic in the annual Porsche employee survey, known as the mood barometer. In the event of any notable findings, the causes for these will be identified, and suitable measures may also be taken with the involvement of HR and the respective managers.
The topic of integrity is a key component of the personnel development programmes and was further expanded in 2019. Dialogue events relating to Porsche’s values and culture have also been established in the corporate units to sensitise employees to matters of integrity. In addition, classroom-based sessions are used to remind managers of the crucial importance of this topic. These individuals must serve as role models, generate awareness among staff and create a working environment in which each employee can speak their mind openly and honestly.
Integrity management was expanded in almost all areas of the company during the reporting year. One example is the recruiting process, in which aspects of integrity are brought up during candidate interviews. New employees are also sensitised to the topic of integrity in the course of the introductory events. On top of this, the company has also set about establishing a multiplier network that facilitates the exchange of existing integrity initiatives and thus helps identify interfaces and opportunities for synergy.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “compliance and integrity” contributes to the reporting requirements of GRI 205: Anti-corruption, GRI 206: Anti-competitive Behavior, GRI 307: Environmental Compliance and GRI 419: Socioeconomic Compliance.
Responsibility in the supply chain
Economic success, the extension of the product portfolio and the use of new technologies are focusing ever more attention on the supply chain of companies. Two examples that illustrate this development are the higher delivery figures driving growth in supply parts and the responsible procurement of innovative components. Together with its suppliers and sub-suppliers, Porsche makes every effort to ensure its supply chain features maximum sustainability and added value.
When Porsche was incorporated into the Volkswagen Group, much of its Procurement division was integrated into the Group’s organisational structure, and the existing structures and processes were adapted accordingly. This means that Porsche’s procurement decisions are largely coordinated and agreed upon with the Volkswagen Group.
Trust-based cooperation between Porsche and its suppliers is based on shared values and strict compliance with the sustainability requirements defined in the Volkswagen Group. The concept of sustainability in supplier relations and the code of conduct updated in the reporting year compel all parties to observe and comply with the high environmental, social and human rights standards in the International Chamber of Commerce’s charter and the OECD’s guidelines for long-term, sustainable development.
The relevant key labour standards from the International Labour Organization (ILO) serve as the foundation for the sustainability requirements. All suppliers are also expected to follow the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Porsche is active in this area in the context of the Group’s Responsible Minerals Initiative activities. These sustainability requirements are enshrined in supply contracts, the violation of which can result in reviews, formal statements and, if necessary, the termination of the business relationship.
Porsche always conducts integrity checks before entering into business relations with new suppliers. Following the introduction of the sustainability rating (S rating) in July 2019, sustainability is now a binding award criterion for all suppliers of production material and in the context of general procurement. This means that sustainability is handled on the same level as costs, quality, technological expertise and logistics within the award process. Risks in the fields of social affairs, environment and compliance are audited – including ethically correct behaviour.
Suppliers must first complete a self-disclosure process addressing defined sustainability criteria and featuring a standardised questionnaire that is well established in the automotive industry. If the results of this self-disclosure are unsatisfactory, then an on-site check takes place. This second step is carried out by an independent sustainability auditor. Should the audit continue to return problematic findings, this results in a negative assessment of the supplier. Porsche then works together with the supplier to establish a corrective action plan for ensuring the prompt elimination of the identified risks. The implementation of the relevant measures is subject to centralised monitoring. The suppliers in question will not be considered during the award process until they have ensured compliance with the sustainability requirements. In the reporting year, 432 employees from the Porsche Procurement department received instruction on the S rating as part of a mandatory training module aimed at anchoring sustainability within operational procurement processes. A digital learning module also enables employees from other company departments to inform themselves about the concept and the monitoring options afforded by the S rating.
In the reporting year, the Volkswagen Group defined high-risk raw materials and successively analysed these over the course of multiple projects. Porsche is undertaking analysis of two of the identified high-risk raw materials in close collaboration with selected suppliers. In this way, the entire supply chain is traced all the way back to the origin of the raw materials. All intermediary suppliers involved are also identified in order to enable early detection of human rights risks and to take measures accordingly. In addition, new approaches are continuously being developed within the Group for the purpose of guaranteeing responsible raw materials procurement.
Porsche is well aware of its supply chain responsibilities and thus rejects child labour, forced labour and compulsory labour as well as all forms of modern slavery and human trafficking. A transparent certificate of origin and contractually binding sustainability requirements are important steps in ensuring fair competition and preventing exploitation linked to raw materials.
As part of the Volkswagen Group, the company is an active participant in the industry dialogue on the German federal government’s national action plan for business and human rights. These talks are aimed at safeguarding humane working conditions right across the supply chain. Via the Volkswagen Group, Porsche is also a member of the World Economic Forum’s Global Battery Alliance. Featuring public and private partners along the entire battery supply chain, the Global Battery Alliance strives to ensure social and ecological sustainability throughout the whole value chain of the raw materials used in batteries. Within the scope of its sustainability requirements for suppliers, Porsche also demands that its battery cell suppliers only use power drawn from renewable energy sources for the production of batteries. Porsche derived a number of innovations from this initiative during the reporting year, including technological approaches to identify the origin of materials. This helped the company launch its first-ever pilot project featuring blockchain technology. Porsche uses this digital technology to enable full-scale traceability within its supply chain, such as for leather cockpit parts. The pilots specifically address the origin and processing of the natural product, which is then subject to further processing at the Porsche saddlery and turned into individually configured interior fittings. These measures are intended to deliver complete transparency within the value chain.
A guideline established in 2017 by the Volkswagen Group to address sustainability within supplier management governs internal processes and responsibilities throughout the entire Group. Porsche applied the corresponding requirements in the reporting year through the adoption of its own brand-specific sustainability guideline, thereby also promoting the implementation of the sustainability requirements within its own supply chain.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “responsibility in the supply chain” contributes to the reporting requirements of GRI 204: Procurement Practices, GRI 308/414: Supplier Environmental/Social Assessment, GRI 408/409: Child Labor/Forced or Compulsory Labor and GRI 412: Human Rights Assessment.