What defines good corporate governance?

Last week, I had a very special and memorable evening. I was awarded the 'Good Corporate Governance Award' by Deutsche Schutzvereinigung für Wertpapierbesitz e.V. (DSW), Germany's leading association for private investors. I would like to thank the members of the DSW and President Ulrich Hocker very much for this choice. Being the 13th awardee is a great honor for me.

On this occasion, I would also like to congratulate the DSW on its 75th birthday, which was also celebrated that night. Founded in 1947, DSW remains a strong and distinctive voice for private investors' rights and equity culture in Germany. To me, the DSW is a critical but always constructive sparring partner. Happy Birthday – and many, many successful years to come!

The festive event took place in the prestigious Industrie-Club Duesseldorf. One thing I was particularly grateful for: I got to see many people who have been with me throughout my career, some of them for decades, and who have come to shape the person I am today. It was therefore a perfect opportunity to say thank you to people like Jim Hagemann Snabe , Werner Wenning, Gerhard Cromme, Michael Gaul, Werner Brandt and Rolf Martin Schmitz, to name just a few. It was Werner Brandt who gave the laudatory speech, and by his words, I was truly moved.

In my acceptance speech, I made three points about good businesses and good governance:

What defines a good company?

1.????A good company is relevant. It adds value to society and serves society through all of its actions.

2.????A good company is strong: economically and sustainably. Only by having a solid economic foundation, only by creating sustainable value and being profitable, can a company give back.

3.????A good company is adaptable. It is neither the big ones who make the race – nor is it always the fast ones. It is those who are willing and able to change. That is as important as ever, especially in these times of technological, social, geopolitical and geo-economic change.

At Siemens, we have succeeded in establishing three good companies - the "new 西门子 AG", 西门子医疗 and 西门子能源 . They already lead their respective industries or have what it takes to do so.

What defines good corporate governance? It gives direction. It takes responsibility. It sets standards for integrity and impeccable behavior. Loosely based on Joseph Schumpeter, it also involves "creative destruction" when it comes to repurposing a company – or even breaking it up to create value. That is why leading a company toward a new era is as much about listening as it is about communicating clearly. You can't stop halfway. And you have to look out for an intact corporate culture with integrity, upon which to build a convincing strategy: "Culture eats strategy for lunch." There's a lot of truth in that.

Today, good corporate governance means focusing on ambitious ESG goals. In the future, all corporate decisions will be measured against their contribution to achieving ESG goals. In other words, CEOs must also be leaders in sustainability. What is still missing is a uniform, globally valid ESG framework. I believe the Accounting Standards Boards in Europe and the U.S. should establish criteria for ESG internationally, according to which companies can define their own targets. I'm hoping for some significant progress here.

This award is also my commitment to keep advocating for good corporate governance: sometimes unconventionally, but always putting my heart and mind into it.

#ESG #Sustainability #EquityCulture #CorporateGovernance #Entrepreneurship