Bertelsmann Foundation: Doing Good and Doing Well
The Bertelsmann Stiftung (BST), governing body of Bertelsmann AG (BAG), the media conglomerate, and in 2005 the 4th largest foundation by project expenditure in Germany, was founded in 1977 by Reinhard Mohn, the 5th generation entrepreneur who re-built Bertelsmann after World War II.
This private operating foundation has built tremendous influence as "reform engine" up to the highest circles of political and economic life in Germany and beyond. Its operating principles are based on the founder's ideals of competition, freedom, solidarity and a humane society. It understands itself as a social entrepreneur that takes up the most pressing issues for modern society like demographic change, educational needs and health issues.
The twin role of the foundation as reform engine on the one hand, and as controlling shareholder of Bertelsmann on the other, provides an interesting case to illustrate a) the possibilities of a business family to practice philanthropy and embed these efforts in its family and corporate governance construct, b) how such philanthropic efforts are financed and evolve successfully and c) how this can promote the business and foster the influence of a family as opinion-leader.
This private operating foundation has built tremendous influence as "reform engine" up to the highest circles of political and economic life in Germany and beyond. Its operating principles are based on the founder's ideals of competition, freedom, solidarity and a humane society. It understands itself as a social entrepreneur that takes up the most pressing issues for modern society like demographic change, educational needs and health issues.
The twin role of the foundation as reform engine on the one hand, and as controlling shareholder of Bertelsmann on the other, provides an interesting case to illustrate a) the possibilities of a business family to practice philanthropy and embed these efforts in its family and corporate governance construct, b) how such philanthropic efforts are financed and evolve successfully and c) how this can promote the business and foster the influence of a family as opinion-leader.
Collection: IESE (España)
Ref: DG-1513-E
Format: PDF
Number of pages: 30
Publication Date: Jun 5, 2007
Language: English
What material is included in this case:
Description
The Bertelsmann Stiftung (BST), governing body of Bertelsmann AG (BAG), the media conglomerate, and in 2005 the 4th largest foundation by project expenditure in Germany, was founded in 1977 by Reinhard Mohn, the 5th generation entrepreneur who re-built Bertelsmann after World War II.
This private operating foundation has built tremendous influence as "reform engine" up to the highest circles of political and economic life in Germany and beyond. Its operating principles are based on the founder's ideals of competition, freedom, solidarity and a humane society. It understands itself as a social entrepreneur that takes up the most pressing issues for modern society like demographic change, educational needs and health issues.
The twin role of the foundation as reform engine on the one hand, and as controlling shareholder of Bertelsmann on the other, provides an interesting case to illustrate a) the possibilities of a business family to practice philanthropy and embed these efforts in its family and corporate governance construct, b) how such philanthropic efforts are financed and evolve successfully and c) how this can promote the business and foster the influence of a family as opinion-leader.
Read more
This private operating foundation has built tremendous influence as "reform engine" up to the highest circles of political and economic life in Germany and beyond. Its operating principles are based on the founder's ideals of competition, freedom, solidarity and a humane society. It understands itself as a social entrepreneur that takes up the most pressing issues for modern society like demographic change, educational needs and health issues.
The twin role of the foundation as reform engine on the one hand, and as controlling shareholder of Bertelsmann on the other, provides an interesting case to illustrate a) the possibilities of a business family to practice philanthropy and embed these efforts in its family and corporate governance construct, b) how such philanthropic efforts are financed and evolve successfully and c) how this can promote the business and foster the influence of a family as opinion-leader.
Year: 2006
Geographic Setting: Germany
Industry Setting: Trust, Ecclesiastic and NGO's
Learning Objective
The Bertelsmann Foundation case highlights the structures and procedures in terms of governance and the inner workings of one of the major foundations in Europe, both in terms of its philanthropic efforts as well as in its capacity as majority shareholder of Bertelsmann AG:
o How would you describe the founder of the Bertelsmann Stiftung (BST), Reinhard Mohn, and his role in the historic development of it? Why did he invest in the foundation?
o What are the guiding principles of the foundation? How does it select its topical and geographic footprint?
o What do you think about the project selection of the foundation? Are criteria applied coherently? How does the foundation secure that projects are in line with the objectives of the foundation?
o How do you judge the governance structure of the foundation? Do you observe any particularities?
o Is there anything wrong with the twin function of the foundation as shareholder of Bertelsmann AG?
o Should the project be authorized? Why?
o How would you describe the founder of the Bertelsmann Stiftung (BST), Reinhard Mohn, and his role in the historic development of it? Why did he invest in the foundation?
o What are the guiding principles of the foundation? How does it select its topical and geographic footprint?
o What do you think about the project selection of the foundation? Are criteria applied coherently? How does the foundation secure that projects are in line with the objectives of the foundation?
o How do you judge the governance structure of the foundation? Do you observe any particularities?
o Is there anything wrong with the twin function of the foundation as shareholder of Bertelsmann AG?
o Should the project be authorized? Why?
Leave your rating
"Bertelsmann Foundation: Doing Good and Doing Well"
Register for free with IESE Publishing and enjoy all the advantages
What type of account do you want to create?
Choose account type
Professors
Academic Institutions
Companies
Individuals