DaimlerChrysler Communication on Progress (COP) for the Global Compact DaimlerChrysler is a leading supplier of superior passenger cars, sport-utility vehicles, minivans and pickups, and the world’s largest manufacturer of commercial vehicles. With its strong brands (like Mercedes-Benz, Chrysler, Dodge and Jeep) and a comprehensive portfolio of automobiles ranging from small cars to heavy-duty trucks, supplemented by tailored financial services along the automotive value chain, DaimlerChrysler is active in nearly all countries in the world. The Group has production facilities in a total of 20 countries. As a multinational corporation we take our worldwide responsibility towards our customers, shareholders, and employees just as seriously as our responsibility towards socio-political institutions at local, regional, national, and international level. The principles governing social responsibility introduced by the DaimlerChrysler AG Board of Management together with the Global Works Council reflect DaimlerChrysler’s commitment to the catalogue of principles of the “Global Compact.” Taking this commitment serious, the company communicates its commitment to the Compact and both internally and externally initiated several actions. Public support for the Global Compact Daimler Chrysler communicates with its stakeholders on corporate citizenship and on the Global Compact, next to personal dialogue, though its report "Corporate Social Responsibility in 2004", the "Environmental Report", the "Annual Report 2004" (see page 80-81) and since this year also with the “Sustainability Profile 2005” In the CSR Report e.g., Prof. Jürgen E. Schrempp, Chairman of the Board of Management, reiterates the company's support for the Global Compact (page 5) and many of the described initiatives illuminate what the company does to implement the Global Compact principles and to support the initiative (e.g. page 12 and 13). Also in the new “Sustainability Profile”, the Chairman underlines the support for the UN Global Compact (page 7). This GRI-oriented Profile is a completely newly Dr. Wolfram Heger DaimlerChrysler AG Ph. +49 711 17 93224 designed Corporate Report. It bundles facts and figures in the field of sustainability focusing on our strategies, guidelines and tracking systems – including available performance data and activities. Within that report, the Global Compact principles are prominently highlighted as “Principles guiding our activities” and basis for numerous subsequent policies and guidelines. Global Compact as internal guiding principle In order to establish both management and employee awareness of the Global Compact, the company has developed jointly with the "World Employee Committee" - based on the principles of the Global Compact - the "DaimlerChrysler CSR Principles", which complement the internal Integrity Code of the company. Furthermore, with the “Business Practice Office” (BPO) DaimlerChrysler has established another corporate wide powerful institution to ensure continuous implementation of the Global Compact and internal principles (including e.g. a whistle blowing process). The BPO initiates, coordinates and monitors any investigation undertaken in response to complaints or comments, and report its findings and any corrective measures. Our CSR related principles are furthermore made accessible to all employees and their representatives. Managers in the DaimlerChrysler Group are responsible for their observance. Social responsibility is also audited by the Corporate Audit department. Corporate management regularly briefs and consults with the World Employee Committee on the observance of social responsibility within the company. To ensure the implementation of the principles on social responsibility in all areas and at all corporate levels, we have integrated the principles into the Integrity Code of the DaimlerChrysler Group. Dr. Wolfram Heger DaimlerChrysler AG Ph. +49 711 17 93224 Actions supporting the Global Compact Goals DaimlerChrysler has undertaken many init both in bringing the Global Compact itself forward (like being a supporter of the Global Compact China Summit in November 2005) and by using its core competencies in Global Compact related initiatives. A main and constant focus of our CSR activities is the fight against HIV/AIDS. Our – in the meanwhile – long term experiences from the HIV/AIDS workplace initiative in South Africa have been shared with other Global Compact members through a case study for the GC learning forum. We have strong non-discriminatory policy in place providing our employees living with HIV, with antiretroviral treatment and effective prevention and care. No one infected must be stigmatized or experience any discrimination in the workplace. We will move on from there and introduce programs well adapted to local needs in other places, focusing on Russia, China, South-East Asia and India. Prevention programs are effective already in Brazil, Malaysia, and Nigeria. In December 2005, the company additionally published its newly developed “HIV/AIDS Policy”, which is supporting this transferral in other countries where the company operates. Another focus is our contribution to sustainable mobility in automobile making in line with the aims and principles of the UN Global Compact - for example through the commercial utilization of Abaca fibers derived from a special type of banana plant in the Philippines. Moreover, through the reforestation of eroded landscapes and putting natural fibers to industrial use, from a social point of view, DaimlerChrysler is also observing the Global compact principles for poverty alleviation in addition to protecting the environment. The Abaca initiative is anchored in the Global Sustainability Network of DaimlerChrysler through the targeted combination of economic, ecological, and social objectives. The network provides the framework for promotion of renewable materials, alternative fuels and sustainable mobility. The sustainability network includes the Abaca project, as well as projects such as the POEMA cocoanut fiber project in Brazil, the Jatropha Biodiesel Project in India and the joint exploration of the possibilities for producing synthetic fuels from biomass with the Choren company in Freiberg, Saxony (Germany). These sustainability initiatives create new jobs and contribute to reducing the dependency on fossil fuels and lower CO2 emissions. Dr. Wolfram Heger DaimlerChrysler AG Ph. +49 711 17 93224