Andreas Ronken, the CEO of the Alfred Ritter GmbH, introduces participants into the world of chocolate. It's interesting to note that the largest subsidiary of the square chocolate manufacturer, which ranks third in the world, is located in Russia – despite some difficulties. In 2012, an important step towards sustainability was taken with the acquisition of a plantation in Nicaragua, where 400 employees harvest 60 million fruits annually. "We want to take responsibility for the entire supply chain" without slash-and-burn farming, without child labour, and with fair conditions for the workers, Ronken said. Nowadays, especially the younger generation wants to know: How is something produced? Where does it come from? These are questions that companies have to be able to answer.
These and similar findings coincide with deliberations made by the German Federal Ministry for Economic Cooperation and Development (BMZ) when considering the most bind- ing regulations of corporate responsibility in the supply chain. The so-called Supply Chain Act is intended to force German companies who produce abroad to ensure good working conditions on the ground. At best, it is intended to prevent child labour, guarantee living wages, and prevent environmental damage. For human rights organisations, the project is an important step towards more justice in a globalised world. A draft bill is being prepared; in France, a corresponding regulation has been in force since 2017.
Sustainability will also play a greater role for financial institutions. "What happens if certain combustion engines are no longer permitted in China, the world's most important market," asks. Today, regulations require that greater attention be paid to the sustainability of products when banks seek to finance companies – it's part of risk management. Companies who do not focus on sustainability will have a harder time finding financing in the future. "Sustainable Finance" is a mandate from the supervisory authorities; a corresponding advisory board has been set up at the Federal Ministry of Finance.
More Women in Leadership Positions
In Germany, one in four people is dependent on exports; that represents about 11.2 million employees. This also includes the activities and employees of German subsidiaries abroad. Nontheless, the economic shift to the east continues unchanged. By 2050, India, Vietnam and Bangladesh could become the fastest growing economies. Globalisation is becoming more ruthless and the big players are setting their own rules. This is especially true for the USA; meanwhile, the World Trade Organisation is weakening. There are estimates that Germany will be lacking four to five million skilled workers by 2030. The Baby Boomers will soon be retiring, the next generation is already alive, and the current availability of resources is already estimated - in terms of numbers, it's at a low level. We need immigration in order to maintain economic strength. We also need female specialists to be more involved; it is still often the case that women are only promoted when they have already achieved something, whereas for men their perceived potential is often sufficient.
Malaika Mihambo, who was the champion in long jump at the world championships in Doha last year and was voted "Sportswoman of the Year" in Germany, also provided in- teresting insights. She talked about her master's degree in environmental sciences, as well as the ups and downs of her career, in a very calm, almost reserved way. She had three shots in Doha: the first was too short. The second one was invalid. After that, she was about to give up and go down in history as the failed one-time favourite when she managed a phenomenal jump of 7.30 metres. "If you want to succeed, you have to listen to yourself, trust in yourself. I also meditated while I was in the middle of the competition," the likeable athlete said. As she spoke, the 500 or so listeners were absolutely quiet. Perhaps some managers, 80 percent of whom are male, were thinking about the opportunities that female managers and people with an immigrant background could also create in executive positions. Small and medium-sized companies are still lagging behind, and they have to become more open if we want to remain globally successful.
A relatively new approach could present new mobility alternatives: Could cable cars become the method of transportation for the future? Could they provide elevated relief in crowded cities? In La Paz, the capital of Bolivia, the Doppelmayr company from Wolfurt, Austria, already operates ten lines that cover about 30 kilometers, transporting an average of 300,000 commuters a day. Regular bus lines could be scaled down, and cable cars are powered electrically. The cable car stations also encourage the development of urban life. Today, La Paz is home to the world's largest urban cable car network. Similar projects can also be found in Bo- gota, London and Portland, among others. Cable cars are also soon meant to supplement public transport in Mexico City. Within the context of continuing urbanisation, the CEO of Doppelmayr Thomas Pichler presented the cable car as a resource-saving transport alternative in major cities. At present, a maximum of 5,000 to 6,000 people can be transported per hour in a cable car, and the construction of the system can be completed within 18 months.
The Climate, China, and Gaia
Economy meets politics. The mutual influence of these forces was palpable at the event, even though business representatives from small and medium-sized enterprises don't usually get involved in the political out of personal priority. Using the example of the controversial coal compromise, CDU chairwoman Annegret Kramp-Karrenbauer warned that climate issues must not become a divisive issue for society. She made a clear commitment to combustion engines and to diesel, and she emphasised that the preservation of production operations and environmental protection were also part of the "C" in the party name.
Foreign affairs crises are now also affecting domestic policy. An example of this is the different ways in which Europe is struggling with the inclusion of the Chinese tech giant Huawei. While one position warns against dependence on the Chinese Communist Party and is strictly against commissioning from Huawei, others are less restrictive and simply demand that we set our own security standards and ensure they're met. The EU Commission is leaning towards the latter. The Chinese company will be approved, but with restrictions. In doing so, the EU is following the example of Great Britain and going down a similar path envisioned by the Americans. Perhaps this view also mitigates possible conflicts in the run-up to the planned EU-China summit, which will occur during Germany's upcoming EU presidency on June 1st.
And what about immigration? According to Kramp-Karrenbauer, we've been a coun- try of immigrants for a long time, which is good because we need skilled workers from abroad. For a long time, regulations in this regard were controversial, and on March 1st, the new Specialist Immigration Act will come into force. This enables qualified employees from non-EU countries to come to Germany in a regulated way. Professionally qualified skilled workers will be able to work and live in Germany if they can show that they have a job and sufficient German language skills. The 2030 Industrial Strategy, which was presented last year, has been revised and is now also supported by the German Trade Union Confederation (DGB) and the Federation of German Industries (BDI). Another project is particularly close to the heart of Peter Altmaier, the German Minister of Economics and Energy: "GAIA-X", the planned European Cloud, which aims to return digital sovereignty in data infrastructures to the EU's next generation. 150 companies across Europe would participate in the development, but the project itself still seems a long way off.
Per Ledermann, CEO of the edding Group, which is the market leader in felt pens, had some words of advice for start-ups. The company is in the process of opening the first company-owned tattoo studio in Hamburg: "If you want to promote something new and you can't do it anymore, you've only done two percent of the necessary communications work! How do you keep your momentum? By knowing that your product is good."
About the Author:
Ferry Wittchen is a lawyer and accountant in the Stuttgart region and advises especially medium-sized enterprises within the context of internationalisation.