Bertelsmann’s geographic core markets are Western Europe – in particular, Germany, France and the United Kingdom – and the United States. In addition, Bertelsmann is strengthening its involvement in growth markets such as Brazil, India and China. Bertelsmann’s strategic focus is on a fast-growing and high-earning digital, international and diversified Group portfolio. Businesses in which Bertelsmann invests should have long-term stable growth, global reach, sustainable business models, high market-entry barriers and scalability. The education business is being developed into the third earnings pillar alongside the media and service businesses. During the financial year 2020, the Group strategy was further developed and focused on five strategic growth priorities: creating national media champions, expanding global content and service businesses, as well as expanding online education business and investments. Thanks to the successful strategy implementation, Bertelsmann was overall able to minimize the economic impact of the coronavirus pandemic. The Group benefited from the quality of its business portfolio and the high proportion of revenues from digital business models. In the financial year 2020, additional substantial strategic progress was made in the individual divisions.

Bertelsmann Annual Report 2020 (Financial Information), pp. 5-7 

Revenues by division

in € millions

Consolidated revenues by region

in percent

Revenues by category

in percent

Bertelsmann seeks to contribute to the future-oriented development of its surroundings through donations, sponsorship and charitable activities, while at the same time securing acceptance and a broad client base. The goal is to reach as many people as possible and to create a positive impact on society.

Bertelsmann Corporate Center´s donations and sponsorship measures are summarized on the Bertelsmann website  .

For donations and sponsorship measures by the divisions in their respective surroundings: see GRI 413-1  .

For measures to promote media literacy: see MSD Media Literacy  .

Bertelsmann Annual Report 2020 (Financial Information), p. 51 

Corruption and bribery hinder the development of the economy, deter investors and contribute to the persistence of poverty in many countries. For this reason, many states have tightened their anti-corruption laws in recent years. In the event of infringement, executives and employees, as well as the company itself, may face considerable consequences under criminal and civil law, such as imprisonment, fines, confiscation of profits, exclusion from tender procedures and the revocation of permits. In addition, business customers increasingly demand evidence of effective anti-corruption compliance measures as a prerequisite for cooperation. Responsible management must therefore also include measures to prevent corruption. The aim is to mitigate the risk of corruption to a level at which it does not endanger the company’s success.

To avoid violations of laws and regulations, directives, and company guidelines, the Executive Board created a compliance organization. It appointed a Corporate Compliance Committee (CCC) and established an Integrity & Compliance program. The Integrity & Compliance department is subordinated to the CCC and advises and supports it. The department also handles the global management and further development of the issue of corruption prevention.

The Head of the Integrity & Compliance department reports to the Head of the Corporate Legal Department, who also serves as Chair of the CCC. The latter, in turn, reports to the Chairman and CEO of Bertelsmann, who is responsible for matters of compliance within the Executive Board. This organization reflects the relevant standards for compliance management systems that contribute toward mitigating risks in various ways. Its basic elements include the Bertelsmann Code of Conduct, the Bertelsmann Supplier Code of Conduct (see GRI 102-16  ), the compliance guidelines, risk analysis, consultation, communication and training measures, whistleblowing systems, and case management.

Bertelsmann complies with all applicable national and international anti-corruption regulations. Bribery and corruption, as well as conduct that may harm the company’s assets or those of business partners or third parties, are strictly prohibited. Both the Bertelsmann Code of Conduct and the Executive Board Guideline on Anti-corruption & Integrity explicitly prohibit all forms of corruption and bribery. The latter guideline specifies detailed principles and rules of conduct for complying with applicable regulations. Along with instructions for dealing with officials, and guidelines for the granting or accepting of gifts in the context of business relations, it prescribes appropriate due diligence processes in dealing with third parties. It also describes the reporting channels for suspected violations and seeking advice, as well as other prevention and control measures. The Executive Board Guideline for dealing with alleged compliance violations anchors an obligation to report suspected violations of the prohibition against corruption to the Bertelsmann Corporate Center. Another Executive Board Guideline regulates the compliance organization and the role of compliance officers.

The Bertelsmann Supplier Code of Conduct requires Bertelsmann business partners that work for, with, or on behalf of the company to comply with the same strict anti-corruption rules.

In 2020, the most important measures included the revision and updating of the Code of Conduct and the development of a new Code of Conduct tutorial, to be rolled-out in 2021. The results of the Bertelsmann Compliance Risk Analysis 2020 show that the risk of corruption is minimized to the greatest extent possible in view of the measures taken.

Bertelsmann is committed to the principle of fair competition and condemns antitrust violations and anti-competitive behavior. The goal is to reduce the risk of antitrust violations to a level at which they do not endanger the company’s success. The company takes action against any known contravention. An extensive training program (face-to-face training and online training for refresher courses) is designed to prevent antitrust violations.

The Executive Board-approved “Group Guideline on Compliance with Antitrust Regulations” serves to anchor the obligation to report any antitrust violations. With regard to the supply chain, the Supplier Code of Conduct (see GRI 102-16  ) requires Bertelsmann’s business partners to comply with applicable antitrust and competition law. Violations of antitrust regulations can be reported at Bertelsmann by employees as well as by third parties through the reporting channels of the existing compliance management system. The topic of antitrust and competition law is addressed in the annual Compliance Report submitted to the Executive Board. The Corporate Legal Department provides an obligatory antitrust training program to corporate divisions and the management, and employees of these divisions who work in antitrust-related areas. This training program is designed to help identify antitrust risks at an early stage and to prevent antitrust violations. Since April 2020, it has been conducted virtually due to the coronavirus pandemic.