As early as 1862 Alfred Krupp gives powers of attorney to a body of management independent of himself. In 1872 he issues the "General Directive" written by him and revised by the management board, which establishes the internal hierarchy from the supervisor and foreman to the company management, defining their specific duties and functions, and at the same time contains regulations concerning the company welfare schemes.
Krupp strives to alleviate the growing social problems brought about by industrialization by introducing company benefits. As early as 1836 a voluntary sickness and burial benefit fund is set up which is converted into a compulsory sickness and death benefit insurance scheme in 1853. In 1855 a pension fund is established, in 1858 a company bakery, which later evolves into the employees' retail store. From 1856 hostels are built for unmarried workers. 1861 sees the introduction of company dwellings for foremen. Workers' housing estates incorporating schools and branches of the retail store follow in 1863 and from the early 1870s grow apace. In 1870 the company acquires its own hospital.
