I would rather lose money, than Trust - Robert Bosch

An Admirable Business Leader, who walked the talk

LIFE & WORK

Born on September 23, 1861 in Albeck,Germany 11th of twelve children Parents owned a farm and also ran an inn Started career with apprenticeship as precision mechanic in Ulm 1884, travelled to U.S and found a job at Edison Machine Works 1885, worked for Siemens at U.K 1886 Robert Bosch opens his Workshop for Precision Mechanics and Electrical Engineering in Stuttgart on November 15 Married to Anna Kayser

LIFE & WORK

Had four children, a son and three daughters Nature lover, hunter and farmer Son died in 1921 due to illness Divorced at the event of death of their son Remarried Margarete Wrz Had two children, a son and a daughter Died on March 12, 1942

THE ROAD TO AN INTERNATIONAL COMPANY

1886 Opening of the Workshop for precision and electrical engineering in Stuttgart 1898 First foreign subsidiary (London) 1906 First subsidiary in the USA (New York) 1906 First subsidiary in South Africa (Johannesburg) 1908 First subsidiary in South America (Buenos Aires) 1909 First subsidiary in Asia (Shanghai) 1910 Production starts in the USA (Springfield, Mass.) 1922 First subsidiary in Australia (Sydney) 1953 Start of production in India 1955 Start of production in Brazil 1956 Start of production in Australia 2005 Bosch is active on every continent and has subsidiaries and associated companies in more than 50 countries. Bosch operates roughly 260 production sites worldwide, of which nearly 200 are located outside Germany in Europe, North and South America, Africa, Asia and Australia.

VALUES AND PRINCIPLES

Commitment to quality

"I was always plagued by fears that someone would check my products and prove that I had made something of inferior quality. That is why I have always thought to only release work that has passed all objective tests, in other words, that is crme-de-la-crme.`

Robert Bosch placed great importance on thriftiness, quality, punctuality, and discipline. For him, it was absolutely crucial that his customers should be offered work of the very highest standard. In 1919, he outlined this principle in the Bosch-Znder, the associate newspaper: I have always acted according to the principle that, I would rather lose money than trust. The integrity of my promises, the belief in the value of my products and in my word of honor have always had a higher priority to me than a transitory profit.

VALUES AND PRINCIPLES

Commitment to quality

Robert Bosch would no doubt have approved of the companys slogan Invented for life. Writing in 1932, he said: [...] Advances in technology in the widest sense of the word serve to bring the greatest possible benefits to mankind. Technology is designed and has the capability to help the whole of mankind make the best of their lives and find happiness in life.

VALUES AND PRINCIPLES

Associate Satisfaction

Associates, not wage earners

For Robert Bosch, it was extremely important that his associates should be able to apply their skills and use their potential to the full. As a socially-minded entrepreneur, he was committed not only to giving his associates the best possible opportunities to advance their careers, but also to improving their working and living conditions. This made him a father figure to his associates.

To celebrate the completion of his thousandth magneto ignition device, Robert Bosch (back row, third from left) took his associates on a company outing, 1896.

VALUES AND PRINCIPLES

Associate Satisfaction

I dont pay good wages because I have a lot of money. I have a lot of money because I pay good wages.

Work environment Richard Schyle who worked for Bosch between 1891 & 1930, in his memoirs provide an insight into the atmosphere in the Bosch workshop and records some of the lighter moments. For example, he relates that on one particular summers day when the heat in the workshop had become unbearable, Robert Bosch suddenly decided to shut up shop and give his staff the day off. To provide associates with the equipments they need, he invested the companys meagre profits in the very latest machines and tools.

Wages Richard Schyle recounts that, orders were sometimes sparse during the early years, Robert Boschs workers may have been in a better financial position than he was at that time.

SOCIAL COMMITMENT OF ROBERT BOSCH

1894 Introduction of the nine-hour working day 1906 Introduction of the eight-hour working day, to mark the delivery of the one hundred thousandth magneto ignition 1910 Free Saturday afternoon and graded vacation arrangements to mark the delivery of the five hundred thousandth magneto ignition 1913 Foundation of an apprentice training department with an industrial apprentices workshop 1919 First issue of the in-house newspaper Bosch-Znder 1921 Foundation of Robert Hilfe (foundation for war orphans) 1922 Establishment of the Angestellten-Hilfe (associate welfare) 1924 Establishment of a training scheme for skilled associates 1927 Foundation of Bosch-Hilfe(welfare scheme for old age and dependents insurance) 1928 Training of commercial apprentices begins 1932 Robert Hilfe extended to include the children of financially needy Bosch associates 1934 First payments made under the work bonus scheme 1936 Foundation of Robert Bosch Siedlung gGmbH (SIGE), known since 1993 as Robert Bosch Wohnungsgesellschaft mbH (WOGE) (housing association) 1938 Establishment of the Bosch-Jugendhilfe (youth welfare)

SOCIAL COMMITMENT OF ROBERT BOSCH

1943 Foundation of welfare scheme for war widows and orphans 1945 Introduction of a welfare scheme for the dependents of missing persons and prisoners (of war) 1952 Gradual introduction of free Saturday without subsequent cut in wages 1952 Foundation of welfare scheme for invalids and dependents 1953 Grndung der Bosch BKK 1953 Establishment of the Joint Shop Council 1956 Reduction of working week in the metalworking industry from 48 to 45 hours 1959 The collectively agreed working week is reduced first from 45 to 44 hours, and subsequently in various phases to 40 hours from 1967 on. 1964 Foundation of Robert Bosch Stiftung GmbH (Robert Bosch Foundation) 1976 Supervisory council made up of 50% worker representatives for the first time (Codetermination Law) 1977 Formation of the Combined Shop Council 1985 Working week reduced to 38.5 hours 1986 Works agreement on Company Assistance Programs for Addiction 1990 Working week reduced to 36 hours from 1993 on and to 35 hours from 1995 on 1998 Conclusion of works agreements on Capital Benefit Plan, reform of company pension scheme 2002 Foundation of the Bosch pension fund and conclusion of a works agreement on conversion of bonuses into pension benefits

THE CIVIC INITIATIVES OF ROBERT BOSCH EDUCATION AND HEALTHCARE

Independence, family tradition, and an early concern with contemporary social issues formed the roots of the civic initiatives championed by Robert Bosch. Robert Boschs actions during the first world war in particular are clear evidence of his willingness to make generous donations in times dire need In view of the widespread hardship and suffering caused by the war, Robert Bosch did not want to profit from the income generated by armaments contracts. This prompted him to set up his largest charitable foundation: When the war came and brought with it new military contracts, [...]it appalled me to think that I was making money while others were sacrificing their lives. At the end of 1916, I decided to use any profits from the war to set up a foundation to support the construction of the Neckar Canal.

In 1935, in the guidelines for the executors of his will, Robert Bosch outlined what his civic initiatives aimed to achieve:

It is my intention, apart from the alleviation of all kinds of hardship, to promote the moral, physical, and intellectual development of the people.

ROBERT BOSCHS PUBLIC ENGAGEMENT

1910 One million German marks donated to the Stuttgart Polytechnic to support research and teaching 1914 One hundred thousand German marks donated to the city of Stuttgart to ease the suffering caused by the First World War 1914 - 1916 Field hospital set up in building F 2 at the Feuerbach plant1916 Foundation of the society to support gifted students 1916/17 Twenty million German marks donated for charitable purposes, 13 million of which for the construction of the Neckar Canal 1918 Foundation of the Society to Support Public Education (adult education) 1920 Establishment of the Markel Foundation (to support gifted students) 1921 Foundation of Vermgensverwaltung Bosch GmbH (Bosch Asset Management) 1923 Foundation of the Association of the Friends of Polytechnic 1936 To mark the fiftieth anniversary of the company and the 75th birthday of Robert Bosch the Elder, the Robert Bosch Hospital is donated to the city of Stuttgart. 1940 Official opening of the Robert Bosch Hospital 1964 Foundation of Robert Bosch Stiftung GmbH (Robert Bosch Foundation) 1972 Foundation of the Dr. Margarete Fischer-Bosch Institute for Clinical Pharmacology by Dr. Margarete Fischer-Bosch, daughter of Robert Bosch 1973 Opening of the new Robert Bosch Hospital1980 Foundation of the Institute for the History of Medicine

Alleviation of all kinds of hardship

Wounded patients and nursing staff at the field hospital,1915 The plant in Feuerbach was converted to a hospital duing the first world war

Promote physical development

Drawing of the HomeopathicHospital in Stuttgart (draft), 1914

Patient in a galvanic bath, c. 1940

Lab technician at the Robert Bosch Hospital,c. 1940

Promote intellectual development

The Bundesverdienstkreuz (Federal Cross of Merit) is conferred to Marianne Weber, 1967. Ms. Weber had worked closely with Theodor Buerle, whose efforts to promote adult education in Germany were strongly supported byRobert Bosch.

Certificate of appointment of Robert Bosch to honorary doctor,honorary senator,and freeman of the Stuttgart Polytechnic, 19

The former residence of Robert Bosch, which now houses the Robert Bosch Stiftung (Robert Bosch Foundation)

OWNERSHIP STRUCTURE
Since 1964, Boschs majority shareholder has been Robert Bosch Stiftung GmbH, a charitable foundation.

Today, the Robert Bosch Stiftung, a charitable foundation, holds a 92 percent stake in the share capital of Robert Bosch GmbH.

The share dividend received by the foundation is used exclusively for charitable purposes, i.e. to support general medical care, international understanding, social work, training and education

HIS FINAL WISHES

BOSCH VALUES ENCOMPASSING CHANGE & CONTINUITY

Bosch has always been a value-driven company. Many of our values can be traced back to our founder Robert Bosch, other values have changed or have arisen over the decades. Now we have put our guiding values in writing. Our values reflect the manner in which we run our business: Our professional ethics in dealing with our business partners, investors, employees and society. Bosch CEO

CSR ACTIVITIES IN COIMBATORE

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