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Lufthansa Group Balance 2014 EN

The 10 principles of the UN Global Compact Ú Human rights Businesses should support and respect the protection of international human rights within their sphere of influence and make sure their own corporations are not indirectly linked to human rights abuses. Labor Businesses should uphold the freedom of association and the effective recogni- tion of the right to collective bargaining; eliminate all forms of forced and compul- sory labor; effectively abolish child labor; and eliminate any discrimination in respect of employment and occupation. Environment Businesses should support a precau- tionary approach to environmental challenges; undertake initiatives to promote greater environmental responsibility; and encourage the development and dif- fusion of environmentally friendly technologies. Anti-corruption Businesses should work against corrup- tion in all forms, including extortion and bribery. cations, Investor Relations, Controlling, and Corporate Sourcing departments. The CRC reports directly to the Executive Board of the Lufthansa Group. In addition, a working group established within the Group and comprising representatives from all sustainability-related departments meets regularly to discuss cur- rent topics and questions relating to corporate responsibility. This working group reports to the CRC. Ú Linking corporate responsibility to financial incentives Executive Board members and managers receive their variable remuneration in part on the basis of cash value added and such sustainability parameters as fuel efficiency and CO2 emissions, but also on the basis of customer and employee satisfaction. The ­Lufthansa Group ensures its economic suc- cess by regularly studying the critical opportu- nities and risks facing the company and factoring the results into its corporate man- agement decisions. This prepares us for both positive and negative influences and enables us to respond to them with flexibility. Detailed information on how we manage risks and opportunities may be found in the 2013 Annual Report, beginning on page 97 in the “Opportunities Report” chapter, and begin- ning on page 102 in the “Risk Report” ­chapter. Ú For us, compliance with the law goes ­without saying The Lufthansa Group defines corporate gover- nance first and foremost as corporate man- agement and control that is informed by an awareness of the company’s responsibilities and aimed towards sustainable value cre- ation. It meets high international standards and is crucial for maintaining transparency towards shareholders and trust in the com- pany’s management. The German Stock Corporation Act and the German Corporate Governance Code are key elements on which it is based. Further information on the subject of corporate governance and compliance begins on page 28. Particularly in the social sphere, our scope of action is defined not only by current laws but also by the Lufthansa Group’s own commit- ments. These include our membership in the UN Global Compact, the largest initiative in the world for responsible business manage- ment. In 2002 Lufthansa became the first avia- tion company to join the initiative, which had been launched two years earlier by then UN Secretary General Kofi Annan. The participat- ing companies have agreed to align their business activities and strategies with 10 universally accepted principles concerning human rights, labor standards, environmental protection, and anti-corruption measures. The Lufthansa Group supports the principles of the UN Global Compact with numerous programs and activities. The Lufthansa Group is committed to fostering a culture of diversity within the company and—with its membership in the UN Global Compact, the International Chamber of Com- merce, Transparency International, the Ger- man Business Ethics Network, and institutions devoted to particular aspects of human rights—expressly embraces compliance with the various applicable standards and, ulti- mately, the cause of human rights. In 1951 Lufthansa’s home country, Germany, signed a commitment to comply with the ILO stan- dards, whose rules—which for our Group are a matter of course—are therefore binding on Lufthansa as well. In countries where acceptance of human rights cannot be taken for granted, we make every effort to encourage positive develop- ment by setting an example through our conduct towards our own employees. Although realization of the human rights formulated in the UN Charter is a matter of national, and hence country-specific, stan- dards, Lufthansa is nevertheless making a contribution towards securing the following rights through its exemplary treatment of its employees: The right to freedom of assembly and association The right to social security The right to work, to free choice of employ- ment, and to just conditions of work The right to equal pay for equal work, the right to form trade unions The right to rest and leisure and regular paid vacations The right to a standard of living adequate for health The right to an education and to freely choose the form of one’s education ß Sustainability Report Balance // Issue 2014 // Lufthansa Group // 27

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