OUR MANAGEMENT APPROACH

Corporate Citizenship forms an integral part of the BMW Group's vision of itself as a business enterprise. We place the focus of our Corporate Citizenship activities on those areas in which we can apply our core expertise to achieve specific and measureable improvements.

Our aim is to help in areas in which we can utilise our expertise. Because we believe that this is where we can be most effective. In 2012, we continued to hone our profile in this respect. Whereas in the past we focused on education, intercultural understanding, road safety, health, community relations and cultural issues, we will be concentrating on two main areas in the future: efficient use of resources and intercultural innovation and social inclusion. In October 2012, we decided to adapt our strategy accordingly.

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Due to economic growth and a rising global population, today's society faces the challenges posed by scarce resources. We believe that we can play a part in overcoming this challenge. The BMW Group has a wealth of engineering expertise and knows how to turn innovations into market reality. We can also offer our experience in recyc­ling and sustainable raw material extraction.

Preventing intercultural conflict and social instability is another global challenge. As a company that is active in over 140 countries, intercultural understanding is an integral part of our day-to-day work. Many of the markets we serve are characterised by high levels of inequality. We know what is really happening in these regions. This is why we believe we can contribute towards more intercultural understanding and social inclusion.

We aim to be a good corporate citizen by focusing our Corprate Citizenship activities on these two areas. We also believe that our Corprate Citizenship activities will enable us to gain new expertise which, in turn, will be of benefit to our core business.

Our commitment in this area is based on the principle of "helping people help themselves". Our solutions are inter­nationally transferable and will have tangible long-term effects. In addition to our two global themes, we will continue to carry out Corprate Citizenship activities in the neighbourhoods around our locations in order to make a contribution towards community development at a local level. Corporate Communications in close collaboration with the department for sustainability strategy and control is responsible for managing our social commitment activities.

MANAGING SOCIAL RESPONSIBILITY ACTIVITIES
The job of managing our social responsibility activities lies with central Corporate Communications in close cooperation with the people responsible for sustainability strategy. Local initiatives are taken care of by local production and sales organisations, although the focus of these is agreed upon with Group headquarters. We are also active in corporate networks, such as UPJ (the German national network of engaged businesses and non-profit intermediary organisations) and WIE (Wirtschaft. Initiative. Engagement ? Business. Initiative. Commitment), where we are committed to promoting cross-sector collaborations. Since 2010, we have been measuring the results of our CSR activities using the so-called iooi method, which was developed in cooperation with other DAX-listed corporations in a working group established by the Bertelsmann Foundation.

In 2012, we spent a total of ?31,978,858 million on our Corporate Citizenship activities. ?9,637,598 million of this took the form of donations. Figures 31 and 32 show how these funds were allocated to our various areas of focus.

CSR ACTIVITIES AT A LOCAL LEVEL
The BMW Group has 29 manufacturing and assembly plants in 14 countries. Our sales network is made up of 42 National Sales Companies. Wherever we are represented in the world, we are committed to social responsibility. While our local activities generally follow strategic guidelines, we also provide immediate assistance when major disasters occur. In 2011, for example, we donated ?1 million to the victims of the earthquake in Japan via the Japanese Red Cross and "Save the Children".

Our disaster relief activities have sometimes evolved into longer-term commitments as well. One example of this is the BMW Warm Heart Fund, which was established by the BMW China and Brilliance Automotive joint venture partners in 2008 to provide aid and support development in the Sichuan province, where 80,000 people died and around 400,000 were injured in an earthquake.

With start-up capital of ?930,000 provided by the BMW Group, the BMW Warm Heart Fund in China went on to collect donations totalling RMB 78.6 million in June 2012. This money goes towards funding education, culture, environmental protection and social programmes. For instance, the BMW Joy Home childcare programme was set up in 2011 to help children from economically disadvantaged regions to develop their potential. Each Joy Home has 10,000 books as well as computers and sports equipment. By the end of 2012, Joy Homes had been established at 52 Chinese schools. Over 50,000 children have taken part in the programme.

Another example of our activities at local level is South Africa, where we have had a production facility in Rosslyn since 1975. Almost one in five people there have HIV/AIDS. To combat this, the BMW Group introduced a HIV/AIDS programme to test employees and their families at their workplace and provide them with medical care.

We also support a community centre that combats AIDS in Soshanguve (not far from the Rosslyn plant). The number of patients treated there has increased from 5,000 to 7,500 per month since 2011. We founded the BMW Y-Center in Knysna in collaboration with the LoveLife organisation. The centre offers education and sports programmes as well as advice on AIDS prevention all under one roof. Up to 6,000 young people come to the centre each month.

Each year, a significant amount of money is raised by the Vienna Life Ball for the fight against HIV/AIDS. As one of the largest charity events in Europe, the Vienna Life Ball is working to beat this pandemic. Every year since 2000, the BMW Group has donated a special MINI to the event, created by a renowned designer. It is auctioned for charity after the ball is over. To date, the auctioning of these one-off MINIs has raised over ?500,000 for the fight against HIV/AIDS.

The BMW Family Day was a great success in 2012, with around 75,000 visitors and an infotainment and entertainment programme at all locations in Munich. Over 4,000 employees helped organise the event, and they all worked for free. The ?250,000 they would have normally earned for the hours worked went to five non-profit organisations: Diakonie Hasenbergl und Moosach, Arche Moosach-Allach e.V., Förderverein Kindernotarzt e.V., Klinik Clowns e.V. as well as Björn-Schulz Stiftung.

Since August 2012, the emergency vehicle that the BMW Group donated to the Munich children's emergency services has been on the road 24/7. The BMW X3 xDrive 20d was specially equipped for medical emergencies and has done 2,800 trips so far. In around 25% of these cases, on-call paediatricians arrive at the scene before the ambulances or fire brigade, and can provide essential first aid support.

REWARDING EMPLOYEE COMMITMENT
In 2011, the BMW Group award for employee social responsibility went nationwide in Germany for the first time. In 2012, it went global and employees worldwide could apply. This award is the company's way of thanking those employees who do voluntary work. A total of 131 projects from 14 countries went up for the award. The Doppelfeld-Stiftung also awarded a special prize in 2012 again. This award was set up explicitly for young employees. At a ceremony in the BMW museum, two projects from Panama and South Africa and one from Germany were presented with the award, receiving a financial donation of ?15,000 in total to support their future work. The special prize of ?5,000 went to a French employee.

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CORPORATE CITIZENSHIP

We see ourselves as a corporate citizen and aim to play a role in overcoming the challenges presented by society. Intercultural understanding and responsible use of global resources are two essential ingredients in a joint approach towards resolving the issues that arise between cultures.

We are familiar with the conditions of the countries we work in. We intend to put this expertise to good use in our Corporate Citizenship activities. Long-term educational projects are a suitable tool to pursue and achieve these goals. After all, education leads to more mutual understanding and social inclusion.

The BMW Group itself also benefits from its Corporate Citizenship activities. If we contribute towards reducing inequality we will gain an even better understanding of local social structures. Better intercultural understanding also enables us to address new target groups and to take a novel approach to finding solutions. Our Corporate Citizenship activities make an essential contribution towards remaining a successful global player.

INTERCULTURAL INNOVATION

As a global corporation with a multi-national workforce, the BMW Group has been working for many years now to promote understanding between nations, religions and ethnic groups. Between 1997 and 2010, the BMW Group Award for Intercultural Learning went to a large number of innovative projects and individuals worldwide who support sustainable, open relations in the international community.

In 2011, the Intercultural Innovation Award, a partnership between the BMW Group and the United Nations Alliance of Civilizations (UNAOC), was established. The award is presented to exceptionally innovative projects that promote dialogue and understanding between different cultures worldwide, thus making an essential contribution towards safety and peace in civilised society. In 2012, 514 applicants from 92 countries went up for the award; in 2011, there were over 400 applicants from 70 countries. The chosen projects receive both prize money and mentoring support from the World Intercultural Facility for Innovation (WIFI) network, which was set up specifically for this purpose. The aim is to increase the effectiveness of the projects and make them transferable to other contexts. The WIFI online community is a meeting platform where the awardees of the Intercultural Innovation Award can connect, exchange and share their skills with alumni, partners, mentors and potential sponsors. The mentoring support provided is tailored to the individual needs of the awardees.

After receiving the award and the mentoring support that goes with it, several 2011 awardees have already produced concrete results and have replicated their efforts.

First prize went to the Center for World Religions, Diplomacy and Conflict Resolution for their pioneering initiative to promote peace and intercultural understanding in the Middle East. The Jewish-Arab tourist programme organises individually tailored group tours to Israel, Palestine, Jordan, Egypt and Turkey. With Israeli and Palestinian peacemakers as guides, these trips present an objective picture of the region from various perspectives and bring participants into contact with local activists who are working for change. 500 people participated in these trips in 2012. The project has expanded beyond Israel and Palestine to Egypt, Turkey and Jordan.

Second prize went to the private Maytree Foundation for its project DiverseCity onBoard, which works to establish equality for ethnic minorities in the region around Toronto, Canada. DiverseCity onBoard connects public institutions and non-profit organisations with highly qualified applicants from minority communities and encourages them to see diversity as a fundamental value in a common society. By 2011, 1,500 members and 550 organisations had taken part in the project. 2,000 new members from another six countries are expected to join by mid-2013.

The Vaga Lume Association is a non-profit organisation which promotes cultural exchange and works for the independence of the people and communities of the Amazonas region in Brazil. In 2011, 14 groups of teenagers benefited from the organisation's projects; this number rose to 16 in 2012.

Kickfair uses the global power of football to bring people together. Through the medium of street football, the organisation develops a wide range of projects in the areas of education, intercultural learning and upbringing. Participants learn skills that are important for the game, but even more important for life beyond the pitch. 5,000 youngsters took part in the projects in 2011; in 2012 this figure rose to 33,200, with participants from Germany, Paraguay, Chile, Brazil, Cambodia, Israel, Ruanda and Kenya.

Irenia is a Spanish collective comprising professionals and teachers with many different levels of education and experience. The members of Irenia are committed to creating a new culture of peace by offering educational projects for responsible citizenship. Irenia actively supports and uses teaching and learning approaches based on both emotional commitment and academic knowledge. The Spanish collective has branches in Egypt, Tunisia, Greece, Jordan, Turkey, Italy, Rumania and Palestine.

PROMOTING AN OPEN SOCIETY

The BMW Group supports the Adam Institute for Democracy and Peace – a leading organisation for teaching democratic values throughout Israel. Since 1999, we have been supporting a programme that teaches democratic values in Jewish and Arab schools. We aim to support the education of Arab and Jewish adolescents and thus make a contribution towards intercultural understanding and to securing peace. The BMW Group's long-standing commitment has earned the company the Teddy Kollek Award.

Long-term education projects

Experiencing mobility and sustainability

International university network

One of the BMW Group's largest long-term educational pro­jects is in South Africa. The Schools Environmental Education Development (SEED) project aims to raise young people's awareness of environmental issues and promote social responsibility. Pupils at the participating schools learn skills such as how to grow vegetables and look after a garden. They also learn about hygiene. This project places particular focus on integrating children from disadvantaged areas.

Each participating school is also responsible for an environmental project. The schools are inspected annually and their performance evaluated. They receive a financial reward based on how well they have performed.

The SEED project was launched in 1996 at 15 schools close to the BMW plant in Rosslyn. The project has had a positive impact both on the children themselves as well as on their families and friends. SEED also plays an important role in communities affected by HIV/AIDS. Over 60 schools are now taking part in the project. BMW is reaching an ever-increasing number of children by bringing more schools into the project each year. The company plans to expand the SEED project in the next few years.

To complement our main topic of intercultural innovation and social inclusion, we have many educational projects that promote understanding of cultures, technology and sustainability. One example is the BMW Group's Junior Campus. Together with renowned educators and scientists, the company developed a concept that enables people to use all their senses to discover mobility and sustainability. For example, children are given the opportunity to independently and interactively explore, test and experiment with the sustainability aspects of a car's life cycle. We adapt this international project to the specific needs of the different markets.

The first Junior Campus was opened in autumn 2007 in Munich. Five to 13-year-olds are introduced to topics such as sustainable production or alternative drive train systems. In 2012, we realigned our Junior Campus activities to place even more focus on sustainability. Some 17,100 children and adolescents took part in 1,400 workshops. 21,000 guests visited the open laboratory, where once a day they could interact free of charge with various exhibits to delve deeper into the topic of mobility.

In 2012, we opened our Junior Campus Berlin. It is based on the educational concept of the Junior Campus in Munich and was further developed in cooperation with the Deutsches Technikmuseum by adding the areas of natural science and mathematics. In its first year, 8,126 children and adolescents took part in the workshops.

At the end of 2012, the BMW Korea Future Fund opened the first international Junior Campus in Korea. The new mobile laboratory, which is installed in a truck, contributes towards social inclusion by offering educational opportunities to underprivileged children from rural regions of the country. Junior Campus is designed to serve children at primary schools, community centres, libraries and other public institutions. The modules are based on the model used in Munich, but were adapted to the requirements of the Korean education system. The aim is to awaken an interest in science, technology, engineering, art and mathematics in children between the ages of nine and twelve.

We are currently expanding our partnerships with universities worldwide. Partnership projects range from joint research programmes to integration into the BMW Group's young talent programmes. For example, we cooperate with the universities of Deggendorf, Ingolstadt and Esslingen on our Speedup Bachelor programme. The BMW Group also supports the work of universities through donations.

We are currently expanding our partnerships with universities worldwide. This includes setting up or expanding strategic partnerships with universities such as Technische Universität München, Karlsruhe Institute of Technology, University of St. Gallen, Clemson University, Georgia Institute of Technology as well as Massachusetts Institute of Technology ? all universities that the BMW Group wishes to work with in the area of research and technology transfer as well as the promotion of young talent and industry-relevant education. Partnership projects range from joint research programmes to integration into the BMW Group's young talent programmes. For example, we cooperate with the universities of Deggendorf, Ingolstadt and Esslingen on our "SpeedUp Bachelor" programme. The BMW Group also supports the work of universities through donations. For example, from 2009 to 2011, we made a major contribution to the construction of the Institute for Advanced Study at TU München. We also support universities by installing endowment chairs, providing vehicles for research and teaching purposes as well as having employees engaged as lecturers.

In addition to its work with universities, the BMW Group also cooperates with and supports the work of vocational schools. For example, in 2012 we provided a BMW Active Hybrid 3 – a fully hybrid vehicle – to the vocational school Städtische Berufsschulzentrum für Fahrzeugtechnik in Munich.

The vehicle, worth €52,000, is used at the school for teaching and training purposes. The BMW Group is an important player in Germany's dual vocational training system and had previously provided the same school with a vehicle worth €70,000 in 2008.

SAFETY FOR ALL ROAD USERS

For the BMW Group, it is not only vehicle safety that matters, but also the safety of all road users. We are committed to increasing safety levels around the world through numerous social initiatives.

Since 1984, walks to and from school have become safer every year in Munich. The majority of Munich's year one schoolchildren are provided with School Route Maps. These show children where there is a risk of danger and chart alternative routes to help them get to school safely. In Munich, the number of schools participating has increased from 55 in 1984 to 138 in 2012. According to the Munich police authorit­ies, the number of accidents on the way to and from school dropped in the same period from 357 to 99 – even though the population of Munich is growing constantly. Among the five largest German cities, Munich has the lowest child pedestrian accident rate. According to the traffic authorities in Munich, the School Route Maps have contributed towards this decrease. In 1998, the BMW Group launched the project in Berlin, where around 280 schools have been provided with 146,000 maps so far.

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In the UK, similar efforts have focused on the Internet. Our Safe on the Street programme has provided a designated website for children, parents and teachers since the year 2001. With 237,538 visitors in 2012, the portal received the International Visual Communications Gold Award for its innovative and user-friendly approach.

In the USA, over 15,000 adolescents and adults visit our BMW Performance Driving School each year. As part of a cooperation project with dealers nationwide, the Performance Driving School also offers the Teen Driving School for beginners. The BMW Car Club of America's Teen Driver Safety Program also targets beginners and reaches around 4,000 teenagers in over 90 schools. 2011 saw the launch of an additional campaign called DON'T TXT & DRIVE. This uses the full range of media channels to warn young people of the dangers of distractions at the wheel.

Since 2009, the BMW Group's "Stay Alert. Stay Alive" programme has been promoting the use of safety belts and child seats in the United Arab Emirates. Only one third of drivers in the United Arab Emirates use safety belts, and only 2% of children are protected by child seats. We have raised awareness of road safety with an extensive campaign ranging from radio advertisements to Public Awareness Days at BMW dealers. We also informed around 3,000 students about the consequences of dangerous driving and provided more than 4,500 child seats. The campaign received awards from a number of associations, for example from the Middle East PR Association in 2012 as the best initiative in the area of Corporate Social Responsibility and as Best Integrated Campaign at the Dubai Lynx Awards.

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CULTURAL ENGAGEMENT

The BMW Group has been promoting culture for over 40 years. We support hundreds of projects worldwide in the areas of classical music and jazz, contemporary art as well as architecture and design.

Our commitment to the promotion of culture helps us to meet our social responsibility as a corporate citizen. Our activities in this area also enhance the reputation of our corporate brands and open up dialogue with opinion-makers. They also raise the profile of our company.

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In 2012, we began to implement the BMW Group Cultural Commitment strategy, which standardises our activities in this area. This umbrella strategy will be implemented worldwide and is based on the corporate and brand strategy approved by the Board of Management as well as on the sponsorship strategy launched in 2010. The German market also introduced its own cultural strategy based on this umbrella strategy.

The Corporate Communications and Policy departments select the projects that are to receive funding. However, the individual locations also support local cultural engagement. Within the company, proposals can be submitted to the cultural commitment office. Project proposals can also be submitted to the BMW Group from outside the company. The cultural commitment office reviews the proposals to determine whether they are in line with corporate strategy and either implements them itself or in cooperation with other BMW Group departments.

The challenge here is in choosing suitable cultural partners and in working together to create an appropriate format, as the strategy does not provide for funding of individual events or artists. This requires time and long-term planning.

We are working with the cultural organisations to develop long-term collaborations that do not compromise the independence and artistic freedom of our partners on any project.

In 2012, we successfully expanded our cultural commitment at international level. The feedback we receive from creative artists, customer surveys and in the form of positive media reports demonstrates the high level of public acceptance of our cultural commitment.

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BMW GUGGENHEIM LAB

The BMW Guggenheim Lab, an initiative of the Solomon R. Guggenheim Foundation in association with the BMW Group, is a mobile research lab that travels to a number of cities all over the world. International teams of young people from the areas of urban planning, architecture, art, design, the sciences, technology, education and sustainability work on projects and experiments and engage in public dialogue on issues of modern urban living. The purpose is to carry out research and experiment with new concepts as well as to develop forward-looking solution concepts for city life.

The BMW Guggenheim Lab was launched in New York in 2011. In 2012, it came to Berlin. The general public was invited to visit the lab to find out how tools and ideas developed in collaboration with others can help them to actively design their urban environment. The project has been a success, with 27,000 visitors over 33 days and three long-term urban projects set up as a result. In addition to an interactive biking map for Berlin and a neighbourhood gardening project, an online city map of vacant public property was developed. The aim of this online map is to involve Berlin citizens in the planning of the future use of these public spaces.

At the end of 2012, the BMW Guggenheim Lab moved on to Mumbai.

In collaboration with the Dr. Bhau Daji Lad Museum, the Lab toured six locations throughout the Mumbai metropolit­an area between December 2012 and January 2013, thus reaching the maximum number of people possible with its programmes and participative studies. Just under 23,900 visitors of all ages took part in 165 events over 29 days, participating in design and research projects, surveys, guided tours, discussions, workshops and film screenings.

The Mumbai Lab building, designed by Tokyo architects Bow-Wow in cooperation with SDM Architects from Mumbai, will remain in Mumbai after the Lab has moved on. The L-shaped structure, mainly made of bamboo and specially designed for the square on which the Dr. Bhau Daji Lad Museum is located in Mumbai's Byculla neighbourhood, will become an informal meeting place for the museum and its future visitors.

The BMW Guggenheim Lab has received a number of international awards and nominations.
The BMW Guggenheim Lab was recognised by the United Nations as a showcase project that motivates people to become more involved in public discussion and projects on important urban topics. It has also received a number of awards, including the following:

• International Design Communication Award 2012: Interactive Lab Logo winner in the Best Logo category

• 2012 MUSE Awards: The Urbanology game receives gold in the Games and Augmented Reality category; the BMW Guggenheim Lab website receives an Honorable Mention in the Online Presence category

• Goldener Bulle 2012 (Art Investor): Winner in the Kunst und Kultur (Art and Culture) category

• "CITATION" for Design Excellence from the jury of the 2012 AIA New York State Design Awards

• Kulturmarken-Award 2012: BMW Guggenheim Lab is a prize winner in the Trendmarke des Jahres (Trend Brand of the Year) category

A VERY SPECIAL MUSICAL EXPERIENCE

Meanwhile, the award-winning Opera for All has been offering the Munich public a very special musical experience since 1997, with a similar format established in Berlin in 2007. These open-air events are organised in conjunction with the Bavarian State Opera in Munich and the Berlin State Opera Unter den Linden, which put on performances in public spaces for an audience that would otherwise probably not have access to opera. For example, a total of around 60,000 people came to Bebelplatz to see a live transmission of "Don Giovanni" on 30 June 2012 and an open-air concert with the Staatskapelle Berlin on 1 July 2012.

We have now gone international with this format. In 2012, the first BMW LSO Open Air Classics concert took place. In the future, the renowned London Symphony Orchestra will be playing live open-air classical music concerts for the general public once a year. Entry is free of charge and 15,000 people came to the first performance on Trafalgar Square in London.

MODERN ART, MUSIC, ARCHITECTURE AND DESIGN

Modern and contemporary art

Classical music and jazz

Design in dialogue

We support a wide range of modern and contemporary art, classical music, jazz, architecture and design.

The Preis der Nationalgalerie für junge Kunst and the Preis für junge Filmkunst in Berlin, established in 2011, are two of the BMW Group's contemporary artist awards. French video artist Cyprien Gaillard received the award in 2011. From 2013 onwards, instead of a purely monetary prize, the winners each year will be given the opportunity to hold their own exhibition, accompanied by a catalogue, in one of the Nationalgalerie locations. This exhibition will take place in the year after the award has been won.

Art Drive! was held in 2012 during the Olympic Games in London. Almost 13,000 visitors came to the free exhibition, which lasted two weeks and showcased 16 of the 17 BMW Art Cars. This collection of cars designed as works of art was exhibited in its entirety for the first time in the UK, in a multi-storey car park in Shoreditch, central London.

We also launched BMW Tate Live in 2012. This collaboration between the BMW Group and the Tate Modern in London is designed to run for several years. It will showcase performances and interdisciplinary art forms that can only be accessed live online. The partnership aims to use new art forms to reach an international audience and to take changing expectations of art into account in the process.

At Art Basel in 2012, we presented the BMW Art Guide by Independent Collectors as the first publication of its type. It lists private art collections worldwide that are open to the public. It is also the first joint publication to result from the partnership between the BMW Group and Independent Collectors, established in 2009. As with other collaborative projects, the guide aims to make privately owned contemporary art accessible to the public.

The BMW Welt Jazz Award was presented for the fourth time in 2012. Six international ensembles took part in the competition which went by the motto Jazz and the City. The award, with prize money of €15,000, has already become an established name in the jazz world. In addition to the BMW Welt Jazz Award, the BMW Group also supports jazz festivals and concerts in various cities in Europe, South America and Asia.

The BMW Group has been the main partner in the Munich Philharmonic's educational programme Spielfeld Klassik since 2011. The initiative aims to awaken an interest in classical music in people from different backgrounds by offering adults and children from as young as five years of age the opportunity to visit concerts, rehearsals, introductory events and workshops. In 2012, the school concert Beethoven und die Freiheit, a project of the Spielfeld Klassik programme, won an award in the 365 Landmarks in the Land of Ideas competition.

Since 2010, the BMW Group has had an installation at the annual international furniture fair Salone del Mobile in Milan. We want to be inspired by the designs of the furniture manufacturers and at the same time present our own ideas. A look beyond our own industry creates headroom for design innovation. In 2012, we presented COLOUR ONE for MINI by Scholten & Baijings. This designer team from the Netherlands is researching the design of a MINI One by looking at how it is put together, right down to the smallest components. So they are literally dissecting the design process. The result is a reinterpretation that questions and puts a new perspective on the laws of vehicle design.

FOUNDATIONS

We believe it is possible to successfully shape a society that is based on social cohesion and innovation if the competencies and skills of each individual are harnessed for the general good and used to implement social change. Our foundations contribute towards making this happen.

THE WORK OF BMW FOUNDATION HERBERT QUANDT

The BMW Foundation Herbert Quant promotes international dialogue and collaborations between government, business, the sciences and citizens. One of its central themes is the role of managers in advancing society.

Since 1995, the foundation's Young Leaders forums have been encouraging upcoming managers to become aware of their responsibility to society. The foundation's forums are held in North and South America, Europe, Asia and Africa. Participants visit social institutions, government offices and companies to gain an understanding of the day-to-day life of local players who want to have an active role in shaping change.

The extent of the contribution these forums can make was clearly illustrated by their collaboration with Matthew Spacie, founder of the non-profit organisation Magic Bus in India. Magic Bus is the largest mentoring programme in Asia for children growing up in poverty. Since learning about the programme at the BMW Foundation in 2009, the Young Leaders have been supporting it with both their expertise and the benefits of their network. Today, BMW Group India also supports the project with €150,000 annually.

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Magic Bus helps 250,000 children get a better education and enjoy better health. They also learn about gender equality and many are working on promising start-ups to secure their future. Some 90% of the Magic Bus children express the wish to continue with their education after tenth grade. With the support of the BMW Group, Magic Bus programmes have been set up in the Delhi and Chennai regions.

The BMW Foundation also collaborated closely with the winners of the BMW Foundation Young Leaders Awards 2012 (Generationsbrücke in Germany, Earth Security Initiative in the UK and Teach Me to Fish in Bulgaria), which aims to leverage creativity and entrepreneurship to create a better society. The foundation was able to convince the Young Leaders to provide pro bono support to the organisations. The foundation's funds amount to €50 million and some €3.5 million were spent on non-profit projects in 2012.

Over the next few years, the BMW Foundation Herbert Quandt plans to set up international locations in cooperation with local organisations. The aim is to support international dialogue on the regulatory framework of society and to exploit the potential of the global Young Leaders network to the full. Since 2012, the foundation has been cooperating with the American Taproot Foundation to work out how to structure managers' volunteering activities for social organisations in Germany in a more professional way. The resulting concept was presented to the public. In September 2013, some 250 participants of the 4th World Young Leaders Forum will deal with the topic "Going Sustainable – Towards Quality Growth in China and the World".

Read more about the work of the BMW Foundation Herbert Quandt at www.bmw-stiftung.de

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THE WORK OF THE BMW AG EBERHARD VON KUENHEIM FOUNDATION

BMW AG's Eberhard von Kuenheim Foundation sees itself as a service provider for initiatives that are important to society. As an incubator for the seeds of social initiatives, it works under the motto "freude am neuwagen" (enjoy your new car) to bring together organisations from many various areas. The aim is to set up forward-looking pilot projects which then, after a successful test phase, become independent.

In 2007, the foundation collaborated with the Boston Consulting Group on launching the JOBLINGE project to support young people without training or employment. The six-month programme helps young people move towards a normal working life by providing them with individual mentoring and practical experience. In 2012, three new locations in Leipzig, Cologne and Essen were added to the four existing ones. The programme has so far supported almost 1,000 young job-seekers, over 60% of whom have succeeded in finding training positions or jobs.

Since the project was launched, the BMW Group has provided over €250,000 in funding and offers participants a large number of training positions and practical experience. In 2012, the project was handed over to the JOBLINGE umbrella organisation and will now be managed independently as a social franchise.

Also in 2012, the education project tat:funk in which schoolchildren organise and produce their own radio programme was handed over to the independent foundation Stiftung Zuhören.

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Over 2,000 schoolchildren in ten German federal states have taken part in this project so far, producing some 250 radio programmes.

At the Lehr:werkstatt workshop, trainee teachers work in tandem with a school teacher for a full school year to improve the quality of lessons. About 100 of these tandem arrangements were carried out at two universities in 2012. More universities will introduce the Lehr:werkstatt concept in 2013/14.

The Junge Vor!Denker pilot project uses a philosophical approach to help raise children's awareness for sustainability issues. UNESCO praised the project for the contribution it has made towards the World Decade of Education for Sustainable Development. In 2012, the schoolbook Wie wollen wir leben? (How do we want to live?) was published. This practical guide provides teachers with philosophically structured units for lessons on sustainability.

In order to strengthen sustainable business operations, the foundation launched the Verantwortung Unternehmen (A Responsible Business) initiative. Participating companies from various industries engage in dialogue on the challenges they face in the area of sustainable operations. They train their managers and exchange advice on how to implement specific measures – for their own benefit and that of society as a whole. To date, 20 companies have taken part in the initiative and have implemented projects in their own core business areas. The initiative was praised by UNESCO for its contribution to the World Decade of Education for Sustainable Development. The BMW Group is participating with the Gesundheitsmanagement 2020 project.

The Eberhard von Kuenheim Foundation spent a total of €1.25 million on its projects in 2012.

With the approval of the Board of Trustees, the foundation revised its investment principles in 2011 to provide more leeway for mission-related investment of foundation funds. With its project "Sinnvestition – Vermögensanlage mit bewusster Wirkung" (Positive Impact through Wise Investments), the foundation aims to further expand this approach in the coming years.

Read more about the work of BMW AG's Eberhard von Kuenheim Foundation at www.kuenheim-stiftung.de

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With a mix of their own projects, long-term funding and advice services, the foundations are highly relevant to society as a whole. It is a challenging task to design projects in such a way that they can continue on their own after the funding and support phase. To meet this challenge, the foundations create a strong structure at an early stage. In 2012, they invested a total of €4.76 million in non-profit programmes and projects. The foundations provide clear and comprehensible evidence of the success of their various activities.

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Both foundations are independent, legally and with respect to their content. They plan and manage their programmes themselves. In some areas, the foundations collaborate with the BMW Group in order to make their commitments more effective. In 2012, the BMW Foundation Herbert Quandt expanded its Young Leaders programme in Africa and Latin America. The Eberhard von Kuenheim foundation also made progress in 2012. For example, the JOBLINGE project, which helps young people who have no training to move towards a normal working life, progressed to the stage where it could become independent.

In addition, the BMW Korea Future Fund was established in 2011. This foundation, run by BMW Korea, promotes initiatives for environmentally friendly mobility.

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FORECAST

  • OUR MANAGEMENT APPROACH

    In 2012, we decided to focus on the two areas intercultural understanding and social inclusion as well as efficient use of resources. In 2013, we will add further detail to the content and structure of these two areas. The aim is to integrate the BMW Group's core competencies even more comprehensively into our Corprate Citizenship activities. In the coming financial year, we will also define goals to work towards in this respect.

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  • CORPORATE CITIZENSHIP

    We will continue to expand our main areas of intercultural innov­ation and responsible use of resources to enhance our contribution towards better intercultural understanding. Our educational pro­jects are the tool we use to promote this understanding. In the area of road traffic, we will continue to work at local level, placing the main focus on children and learner drivers.

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  • CULTURAL ENGAGEMENT

    We intend to further expand our cultural commitment activities in 2013. In addition to our hundreds of partnerships worldwide, a number of new projects are planned: Kino der Kunst, a film festival with an exhibition and a competition open to entries from all over the world, will offer young international artists a forum to present current artistic trends. BMW Tate Live will add in-gallery perform­ances and think tanks to its programme in 2013. We also plan to participate in international art fairs with a range of different non-commercial formats and will be at Paris Photo Los Angeles for the first time. We aim to further expand the education concepts Spiel­feld Klassik and Opera for All to help break down inhibitions when it comes to enjoying culture.

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