Living Partnership: The History Of The Bertelsmann Essentials

A corporate culture in which employees, executives and shareholders work together as partners would be inconceivable if the parties involved did not come up with shared, binding values and fundamental goals. That is what the Essentials do. They build on the principles of a corporate culture – shaped by Reinhard Mohn – that has evolved over decades at Bertelsmann. They create transparency and orientation for all and a basis for identifying with our company and our shared goals.

Let’s take a look back in time: In 1960, Reinhard Mohn formulated the “Bertelsmann Principles and Company Regulations.” Its key points were “Responsibility towards the Company,” “Leadership/Management,” “Personal Initiative,” “Planning for the Future,” “Promotion Prospects,” “Work and Its Rewards,” “Profit and Its Limits,” “The Company’s Income,” and “Ownership Comes with Obligations.” In 1973, following hefty growth, first ventures beyond Germany’s borders, the introduction of profit participation and the company’s incorporation, the “Bertelsmann Corporate Constitution” was adopted – following a thorough nine-month discussion process throughout the company. The first amendment was made to the constitution seven years later, again based on a broad discussion process. The second amendment in 1985 added the company’s continuity as a goal. Three years later, at the “Management Symposium,” the “Bertelsmann Corporate Concept” – a description of the successful “Bertelsmann model of mutual partnership“ – was presented to the company’s executives from all over the world as a prelude to an international discussion about the corporate culture of our media company.

The term “Bertelsmann Essentials” was coined in 1998. Discussed and adopted at the Management Congress, where Bertelsmann’s top executives came together, the Essentials presented an up-to-date self-conception of the company’s shared goals and core values. Without replacing the corporate constitution that they build on, they would serve primarily to explain and disseminate Bertelsmann’s corporate culture at the international level. The two-year process of drawing up the English original of the “new Essentials” involved the Executive Board, as well as the Corporate Works Council, the Bertelsmann Management Representative Committee and local groups from several countries. Finally, this version was translated into ten languages.

The new version presented in early 2006 distills the elements of the earlier Bertelsmann Essentials to their essence. In terms of content, the revised wording is consistent with the 1998 version. The economic goals were formulated more precisely in the new Mission Statement. Instead of “appropriate returns on the capital invested” it now reads “ returns on capital that guarantee the growth and continuity of our corporation.” A clear statement of obligation was added: “ We expect everyone at Bertelsmann to adhere to this mission and these core values.” The basic values previously described in twelve sections are now summed up in four sections.

The new Bertelsmann Essentials were born of a two-year, comprehensive discussion process at all levels of the corporation. Everyone involved agreed that these numerous and in-depth discussions about the core elements of Bertelsmann’s corporate culture alone increased both awareness and effectiveness of the Essentials. In 2003, the Executive Board had commissioned the revision of the Essentials. The following year, the Corporate HR department and the Executive Board first discussed a joint draft with the Corporate Works Council and the Management Representative Committee. They agreed to a draft that was presented to the company’s Top 100 executives at the Year-End Meeting 2004 – with the request that they continue the discussion in their respective departments.

The responses showed a high degree of approval. However, the top executives also had some valuable suggestions, which were again discussed by the Executive Board, Corporate Works Council and Management Representative Committee and in many cases incorporated. The resultant final draft was approved by the Bertelsmann AG Supervisory Board in July 2005