Viable and permanent solutions to the challenges of sustainable development can only be found through a dialogue with all social groups. To be able to assess the interests of the different stakeholders and evaluate them in relation to one another on a case-by-case basis, Henkel continuously seeks a dialogue with stakeholders at the local, regional and international levels.

Key stakeholders include employees, shareholders, customers, consumers, suppliers, neighbors, government authorities, politicians, associations, non-governmental organizations (NGOs), scientists, and the general public. One basic principle has always applied: we communicate openly and actively - even when we have made mistakes.

We regard the dialogue with our stakeholders as an opportunity to identify the requirements of our various markets early and define key areas for our activities. This dialogue not only strengthens communication and understanding between Henkel and its stakeholders, but simultaneously makes an important contribution to the Company’s risk management.

Exchanges with internationally recognized sustainability experts play a special role in Henkel’s dialogue with its stakeholders. For its 2004 and 2005 Sustainability Reports, we asked experts from Brazil, China, Germany, Hungary, India, Italy, Mexico, Russia, and the USA to describe the challenges and priorities they see in their countries and regions. We chose these experts on the basis of their knowledge of the challenges their countries face and their experience in corporate sustainability management.

Collectively, the experts’ contributions present a balanced picture of the key issues in emerging economies and industrialized countries. It is clear that, while many of the challenges of sustainable development are similar everywhere, priorities and perspectives differ widely from region to region. Emerging economies, in particular, expect multinationals to contribute to the development of their countries. In industrialized countries, in contrast, maintaining competitiveness is increasingly becoming a key challenge. The table presents the results of our dialogue with the experts in condensed form and gives concrete examples of the varied expectations.