Inequality in terms of income and development opportunities has a direct influence on the life of every individual. But the effects also concern society as a whole: According to a study published by the World Bank, on a global scale, existing inequalities have decreased. This is especially due to the rapid economic growth in some emerging markets, particularly in China since 1978 and India since the 1990s, where the incomes of many people have risen dramatically.
On the other hand, in the wealthy industrial nations, the gap between rich and poor has grown. The promises of the modern market economy in which everyone does well are increasingly being questioned. Careers and professional paths have become discontinuous. In Germany in the 1960s, about 90 percent of all jobs were so-called normal employment relationships – a full-time job with dismissal protection and social security. By 2014, this had reduced to less than 70 percent. At the same time, the number of people doing precarious work has increased.
In the consideration of equality and inequality, companies play a key role. This begins with the question whether equal opportunity and fairness are lived in recruitment and everyday work; for example, whether women are paid the same wages as their male co-workers for the same work. Companies offer jobs, pay wages and salaries, allow social advancement through training and advanced training, and contribute to health care and retirement planning in various ways. As tax payers, companies ensure that the state can fulfill its tasks and can invest in education, infrastructure, and social systems. This creates stability, which is also an important factor in the promotion of economic development.
Regardless of gender, Evonik pays its employees worldwide fair wages and salaries in line with the markets and performance, which always secure their livelihood. This is ensured in the corresponding framework agreements of remuneration and additional benefits. Remuneration is based on objective criteria, such as responsibility, competences, and success.
In Germany, collective remuneration agreements apply to almost 100 percent of the employees and about 70 percent of employees worldwide. The company also has performance and success-based incentive systems. Evonik also offers an employee share program in Germany, Belgium, the USA and, since 2017, also in China and Singapore.
Our employees receive voluntary social benefits. More than 99 percent of Evonik employees are covered by statutory and/or company retirements benefits and health insurance.
Evonik also complies with its social responsibility in terms of fulfilling its tax obligations. Evonik and its employees always obey the relevant national taxation regulations. Being aware of its responsibility to fulfill its tax obligations in a legally compliant manner, Evonik does not use “aggressive tax strategies”, which are used only to evade tax.
With the “Starting a Career” program in Germany we help young people who are not yet ready to begin an apprenticeship. During 2017, 90 positions were filled by young people who were not yet ready to begin an apprenticeship.