Bertelsmann’s geographic core markets are Western Europe – especially 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 aims to achieve a faster-growing, more digital, more international and more 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 rapidly expanding education business is being developed into the third earnings pillar alongside the media and service businesses. The Group strategy comprises four strategic priorities: strengthening the core businesses, driving the digital transformation forward, developing growth platforms and expanding into growth regions. In the financial year 2018, steady efforts continued to focus on implementing the strategy in line with these priorities.

Annual Report 2018 (Financial Information), pp. 6-7 

Revenues by division

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Consolidated revenues by region

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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 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.

Annual Report 2018 (Financial Information), p. 45 

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 countries 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 tendering procedures and the revocation of permits. Business customers are also increasingly demanding evidence of effective anti-corruption compliance measures as a prerequisite for cooperation. Responsible management must therefore also include measures to prevent corruption.

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. It also handles the global management and further development of the issue of corruption prevention. The Integrity & Compliance department is subordinated to the CCC and advises and supports it.

The head of the Integrity & Compliance department reports to the head of the Corporate Legal Department and 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, 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 could harm the company’s assets or those of business partners or third parties, is strictly prohibited. Both the Bertelsmann Code of Conduct and the Executive Board Guideline on Anti-corruption & Integrity expressly prohibit all forms of corruption and bribery. This 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.

Major anti-corruption results in 2018 included:

• Advising executives and employees on the subject of anti-corruption;

• Processing reports of suspected violations related to anti-corruption;

• Reporting of measures taken as well as case indicators to the Executive Board and Supervisory Board in the Compliance Report.

Bertelsmann is committed to the principle of fair competition and condemns antitrust violations and anti-competitive behavior. The company takes action against any contravention. An extensive training program (face-to-face training, online training for refresher courses) is designed to prevent antitrust violations.

The Executive Board approved a “Group Guideline on Compliance with Antitrust Regulations.” There is an obligation to report any antitrust violations. The Corporate Legal Department offers antitrust training programs to corporate divisions and the management and employees of these divisions. A comprehensive compulsory training program for employees working in antitrust-related areas, which was also implemented in 2018, is intended to identify antitrust risks at an early stage and to prevent antitrust violations.