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ETHICS
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AND CSR
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SOFTWARE AG
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RAMESH KUMAR SINGH ROLL: 38
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NAME: RAMESH KUMAR SINGH

ROLL: 38

ABOUT SOFTWARE AG:

Founded in 1969, Software AG is an enterprise software company with over 10,000 enterprise
customers in over 70 countries. The company is the second largest software vendor in Germany,
the seventh largest in Europe and among the top 25 globally. Software AG is traded on the
Frankfurt Stock Exchange under the symbol SOW and part of the technology index TecDAX.

SUSTAINABILITY AND RESPONSIBILITY:

Never before has the world been as globally connected as it is today. We are all living in a global
village: anchored to one place, but connected with the world. Information technology is the
foundation, driving globalization and the ever growing political and economic interdependence
between nations.
But a connected world also poses threats. Poverty, hunger, water and energy shortages, terrorism,
and global warming are just a few of the global societys most urgent problems. Some existing
risks have become more serious, while new ones have emerged.
Citizens of the global village demand answers from governments and companies on how these
threats can be minimized. The challenges are daunting and complex. They require a coordinated
approach from the political and business communities. They also call for sustainable and
responsible action on the part of all individuals.

NAME: RAMESH KUMAR SINGH

ROLL: 38

NAME: RAMESH KUMAR SINGH

ROLL: 38

Sustainable and responsible action means being a successful company. We define business
success as follows:
Making our customers globally successful
Researching and developing our own solutions
Setting standards and developing patents
Being a credible and reliable partner
Helping our employees grow with the company
Growing and being profitable
Benefiting society
Maintaining exemplary values and social standards in our day-to-day business
operations
Promoting education and innovation globally and at our location.

CORPORATE CITIZENSHIP PROGRAMME:

Software AG Foundation is the majority shareholder of Software AG. The non-profit

organization shares the
Companys name because the endowment used to start the Foundation consisted of Software AG
stock. Today,
Software AG Foundation holds approximately 30 percent of Software AG stock, and the
organizations are two separate legal entities. Software AG Foundations assets amount to

NAME: RAMESH KUMAR SINGH

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approximately 800 million, about half of which is made up of Software AG shares; the other
half comes from a wide range of other investments. This makes Software AG Foundation one of
Germanys 10 richest foundations. In 2007 it awarded total funding in the amount of 30
million.

SV Darmstadt 98 Dedicated to our region

The SV Darmstadt 98 athletic club is over 100 years old (founded in 1898) and is an established
tradition in the south of Hesse. In autumn of 2007, SV Darmstadt 98 found itself in a state of
financial ruin. Software AG felt a sense of responsibility to its region and thus enlisted to be the
main sponsor of SV Darmstadt 98 as of the 2008/2009 season. This deed contributed to saving
the club from bankruptcy. Our aid is not only intended to help the clubs professional soccer
team. First and foremost, we want to give the entire club the financing it needs for its other
athletic departments and youth teams in various sports. Software AGs athletic sponsorship
underscores our commitment to the Darmstadt region and promotes an important societal
tradition in the region.

NAME: RAMESH KUMAR SINGH

ROLL: 38

Support of tri-athlete Frank Vytrisal Dedicated to our region

We believe that athletic sponsorship plays an increasingly important role in city development.
Because of our close ties to our region, we also promote a local tri-athlete from Darmstadt, Frank
Vytrisal. Thanks to our support, he has been able to take a hiatus from his teaching job to focus
solely on sports. Endurance and world-class performance are traits that Software AG shares with
this exceptional athlete.

Move your feet

Thanks to the participation of Software AG employees worldwide, Software AGs Move your
Feet campaign has been very successful from both an athletic and a charitable perspective.
More than 8,000 kilometers have been run by Software AG staff members at official races
around the world for a charitable purpose in recent years. For every kilometer run, two euros are
donated by Software AG and two euros by Software AG Foundation to a social project. During
the 2007/2008 season, more than 22,000 were run for a project benefiting young people in
Sao Paulo. This is an impressive result which illustrates that Software AGs staff is not only
athletic, but socially responsible as well.

NAME: RAMESH KUMAR SINGH

ROLL: 38

With the goal of getting more co-workers in shape and becoming active for a worthwhile
purpose, a long-term project was launched. It is known as From 0 to 42 in Frankfurt 2009
from the couch to the running trail.
Eco-computing: First step toward green IT in cooperation with the Hasso-Plattner-Institute
Darmstadt-based
Software
AG
and
Potsdam-based
Hasso-Plattner-Institut
fr
Softwaresystemtechnik (HPI) have reached a milestone after a one-year research project in the
field of green IT. They collaboratively developed methods and tools for optimizing interaction
between disparate IT systems to ultimately reduce the use of electricity and cost of hardware.
One of the biggest challenges large organizations face today is the high consumption of energy
of their computing centers and the ensuing economic and ecological problems. To solve this, the
department of operating systems and middleware at the Hasso-Plattner-Institut fr
Softwaresystemtechnik and Software AG carried out a project known as SOA Eco-Runtime
Governance. The result was successful. Based on Software AGs CentraSite SOA governance
system, which manages IT systems, innovative processes were developed. The solution enables
administrators of large IT landscapes to define the exact quantity of computing power and thus
how much energy a specific service within a service-oriented architecture is allowed to use. In
this way, organizations can precisely regulate and monitor the cost of energy consumed by
computing. CentraSite allows administrators to centrally define the maximum percentage of total
capacity that can be reserved for a certain service and adjust it according to runtime.

NAME: RAMESH KUMAR SINGH

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Bulgaria: A place to stay for young people

The German association known as Bulgarien Initiative Deutschland e.V. is building a
childrens home and supervised living space in Veliko Turnovo, Bulgaria for young people who
age out of state care and are put out on the street upon turning 16. A suitable and affordable
building for this is, however, in severe need of renovation. Software AG Foundation has already
helped Bulgarien Initiative Deutschland e.V. cover the costs once. And now additional aid is
needed, which is being provided by Software AG and Software AG Foundation.
India: Empowering underprivileged children in India
Software AG Foundation and Software AG are planning to endorse EmpowerKids, a group
which fosters elementary school education in India. Toys and books that encourage creativity and
play are missing from these poor childrens lives. EmpowerKids seeks to provide them with a
minimum of basic school supplies such as uniforms, shoes, books, notebooks, and pencils.
Because schools in rural areas have very few teachers (often two or three teachers to educate the
entire school of kindergartners to fifth graders), the children do not receive the attention that they
need to grow and learn. These children are also at risk of being attracted to child labor to help
earn for their families. For these reasons, EmpowerKids plans to help build an infrastructure and
provide the resources and the environment that will allow children to learn and develop without
being impeded by economic hardships.

DRAWBACKS:

Although there is a lot of philanthropic and ethical activities done by the firm but there is
not much done in terms of legal aspects.
Not much done in health care activities.
Less involvement in R&D activities for CSR initiatives.
CSR initiatives lack long term visions and goals.
Although CSR initiatives are taken in some foreign countries but it is nothing close to the
penetration level of the company which is located in 76 countries.

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RECOMMENDATION:

Firm should focus on CSR activities related to legal parameters. For example: problems
of child labor.
Many children are being abused as child labor and not even provided with basic
education. They can certainly make a mark in in this sector.

Initiatives should be taken in terms of green economy. Like tree plantation, garden
adoption etc. This particular initiative is in congruence with the companys CSR and
sustainability project.

Clinics and small hospitals should be opened by the foundation in the poor economic
countries as there the population dont have money to pay even for the basic activities.

A vision or long term plan must be set by the company to know what they need to do and
what not as all the events conducted by the company until now is not in a planned
fashion.

CSR initiatives should also be taken in foreign countries. If we look at the presence of the
company in the countries. It represents a large number but the initiatives taken by the
company is more prominent only in Germany that is the mother country. But as the
company is earning money from other countries as well they are accountable to them too.
So, much more CSR initiatives should be taken by them in foreign country as well.