Page 2 - Freudenburg-Group-Guiding-Principles

FREUDENBERG
VALUES AND PRINCIPLES
When the company’s founder, Carl Johann Freudenberg, introduced his two sons as business partners in 1887, he expressed initial guidelines in his General Observations. Modesty, honesty, financial solidity and the ability to adjust to changing conditions are fundamental values of a successful entrepreneur. In 1994, 10 Business Prin- ciples, derived from Freudenberg’s successful history, were written down for the first time. These Business Principles were considered a framework and a legacy for future generations of Members of the Board of Management.
The Guiding Principles are based on the Business Princi- ples and define the value basis for all our conduct vis-à-vis employees, business partners, other stakeholders and third parties.
Since then, Freudenberg has become a more international company in many senses. Portfolio decisions, new business developments, increased regional and cultural diversity as well as rapid changes in the general business environment have challenged the group’s traditional ability to adjust to new market needs. In the face of such changes, our core principles and values continue to provide guidance and orientation.
The Business Principles state that Freudenberg will remain a 100 percent family-owned enterprise. That principle goes beyond pure legal ownership. Our corporate governance structure, with its system of checks and balances, the delegation of responsibility between the Partners, the Partners’ Board and the Board of Management, ensures a strong commitment to values, responsible behavior and ethical standards. These include, among others, a ban on the manufacture and distribution of products intended to harm people. The Business Principles also state that the Freudenberg Group must remain broadly diversified. This serves as a stabilizing factor, along with the requirement to uphold a minimum equity ratio of 40 percent. Such stability, combined with Freudenberg’s openness towards stra- tegic alliances, allows us to maintain a high degree of independence.
Upholding long-term profitability serves as a precon- dition for achieving all other goals in a wider social context and assures sustainability: Economic efficiency, social responsibility and environmental protection are firmly linked.
The Guiding Principles reflect our common, consistent and firm value basis. To foster a better understanding and ensure consistent interpretation, further explana- tions entitled “Conduct and Behavior” have been added.
It is our expectation that all employees will make this document a part of their daily working conduct and behavior. In doing so they set an example and spread the spirit that makes our company unique!
The above Guiding Principles are based on the Business Principles of the Freudenberg Group, dated December 1994.
December 2022
Freudenberg Board of Management Freudenberg Partners’ Board