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Entry form for The European Corporate Responsibility Award 2008

QUESTIONNAIRE
1. Describe the CSR strategy in your company and its relationship to the main subject of enterprise. Vodafones CSR strategy is based on the following vision: Be one of the most trusted companies everywhere we do business. This vision is supported by one of the 6 strategic company goals: Be a responsible company. The strategy applies to the whole Vodafone Group for the 2006-2010 period and is based on a simple principle: Maximize the possibilities of the company and conversely Minimize the possible negative impacts of the company in specific areas. It consists of logically linked levels (see illustration 1): A) Operational and ethical standards that go above the scope of legal obligations (e.g., Ethical purchasing / Responsible building of the network / Care for employees, etc.); B) Fulfillment of promises towards external parties, which the company voluntarily takes on (e.g., commitment to Fair communication with the customers (see question 2 for more) / Collect 1,000,000 mobile phones from our customers per year / Donate a part of the resources to philanthropy - Foundation); C) The flagship topic is Approach to communication, directed at disadvantaged groups of people. Specifically how to make it possible to communicate and utilize the advantages of mobile technologies for persons that are visually (e.g., GSM/GPS navigation center for the blind - see question 8 for more) or otherwise impaired, how to improve the accessibility of mobile services for the underprivileged (e.g., social tariff).
Illustration 1: Vodafone CSR strategy

III. Vodafone CR Strategy (2006-2010)

TRUST
Maximize impact

Flagship Theme
Access to Communications

Delivering on Promises
Costumers / Phone Recycling / Energy Efficiency / Charity

Minimize impact

Consistent Operating Standards


EMF / Content / Supply Chain / Network Rollout / Employees / Environment

Ethical Standards
Business Principles / Stakeholder Engagement / CR Issues Management / Crisis Management

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Vodafone at BLF Pemysl Filip

The strategy supports the vision and is executed via specific programs and initiatives that exist in each area at the level of the entire Vodafone Group and that are always fulfilled by

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

individual national companies. It is up to each local company how it prioritizes individual programs, or even how it expands them depending on their relevance for the given market, and how specifically it fulfills them. For each program, there are measurable goals, whose fulfillment is monitored. The reporting takes place quarterly internally and once per year externally -- at the level of the group, a so called CSR report is published, which summarizes the attained and planned (What we said, What we have, What will be) and summarizes the fulfillment/non-fulfillment of promises. The CSR strategy is logically based on the main subject of enterprise, i.e., the provision of services in the area of mobile telecommunications, as is described above, and the fulfillment of the strategy should help create trust between the company and external parties and thus contributes to the business successes of the company.

2. How does the CSR strategy of your company contribute to the increasing of success in business? The commitment of Fair communication with the customers can be demonstrated on specific cases leading to the increasing of success in business: a) Since 2006, Vodafone, as the first mobile operator and very probably as the first company in the CR, communicates all of its offers clearly and distinctly, without small print and without catches and asterisks (exceptions), which make it possible for the customer to freely decide on the basis of complete and truthful information (see illustration 2). Even today we are still one of the few companies in the CR that principally does not use asterisks, small print, or any other advertising tricks. b) Vodafone, as the 1st company in the CR, has approached both new and existing customers in the same way and has offered all of them the same benefits (i.e., weekend SMS for free from January to April 2007). The advertising campaign with the Chihuahua in 2006/07 thus did not entice just the new customers with gifts, in order to tie them into a contract, but conversely destroyed the ingrained rules with the same approach to everyone (see illustration 3). Also in the next Christmas sheep campaign in 2007/08 we approached everyone in the same way and we rewarded our customers based on the length of time that they have been at Vodafone, whether it was minutes or years. The competition and other companies in the CR followed this approach very soon thereafter.

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

Illustrations 2 and 3: Examples of visuals from the Chihuahua campaign - No fake reindeers, No tricks.

c) Probably as the only large company in the CR, we offer the long-term possibility of being in a relationship with us without the need for signing a contract that binds the customer for years. This approach specifically contributes to business success, since according to 2007 research by the company MillwardBrown, we are the most responsible mobile operator in customer communication, and based on the additions of customers, we are the most successful mobile operator in the long-term.

3. To what extent do the affected external parties participate in the defining of the CSR strategy at your company? Vodafone has as one of its key CSR approaches the involving of external parties. Interested parties were identified, addressed and they are involved in the life of the company, including the defining of the strategy and its further development. Among these are: - non-profit organizations focused on the environment, handicapped persons, gender issues, protection of public and customer rights, etc.; universities and institutions; and local self-administration. In 2007, the above listed representatives of the external parties were: a) invited to a so called roadshow, which is organized for all employees and partners, including external parties, once per year and they are, in a non-traditional way (e.g., via a theater performance by the company top management) informed about what is happening in the company and what its next direction will be. Subsequently all participants have an opportunity, within so called workshops, to ask the company directors and vice-presidents about the details of the various plans. Also, some company plans are modified based on the feedback of non-profit organizations, universities and others. b) as the 1st company in the CR, we organized a dialog called Round Table with representatives of organizations and institutions, where they were invited to Vodafones headquarters and within the scope of this day we discussed the CSR
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Entry form for The European Corporate Responsibility Award 2008

strategy. Outputs were specific suggestions, such as what we should focus on in the future, how we are perceived externally or how the new partner blog should work (see question 8). The Supervisory Board of the Vodafone Foundation consists not only of Vodafone employees, but also of respected experts from the non-profit sectors, who participate in the creation of the strategy and direction of the Foundation. More on www.nadacevodafone.cz We also give an opportunity for interested parties to express themselves regarding the company direction within surveys, the results of which once again influence the creation of the CSR strategy. The public is also addressed via the www.vodafone.cz/odpovednost website, where there is also an email address for the CSR team and where we receive a number of questions as well as suggestions.

4. What approaches does the top management of your company have for the setting of the CSR strategy? There is agreement among the top management and the CSR team that CSR is not rocket science, but rather the use of common sense. CSR is not just the activities of the CSR team, it is a natural part of the thinking of the people and the company culture. The CSR strategy is set, approved and updated based on this idea (see question 1). In discussions with top management, we have jointly agreed that we will locally profile ourselves in the areas of fair marketing (see question 2), employees and ecology (see question 9 for more) and the involvement of external parties into the companys activities (see questions 3, 7, 8). The top management is continuously informed about CSR results, including via presentations directly at top management meetings. Company management regularly participates in CSR events, promotes and supports CSR activities and is the owner of individual areas. We can document this, for example, via: a) the launching of the volunteer program (see question 7 for more) by the complete top management, where the Chief Executive and 5 Vice-Presidents participated in the renovation of the Life-saving station for animals in the Chrudim region (see illustration 4).
Illustration. 4: Top management participates in the volunteer program

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

b) We participate in the annual all-European event for the support of a sustainable way of life and transportation considerate to the environment (so called mobility week). Specifically, in 2007 we offered transportation schedules in the mobile phone for free for this mobility week, and, for promoting more environmentally friendly travel via public transportation instead of by cars, we used our Chief Executive, who regularly uses public transportation for his journey to work (see illustration 5).
Illustration 5: The Chief Executive travels to work via public transportation

c) The Technology Vice-President approved and signed an action plan for the decreasing of the consumption of electricity in the network (see question 5 for more). He is the owner of this plan and is responsible for the attainment of results.

5. How are the principles and goals of CSR reflected in the business plan? CSR is an integral part of the company business plan; the business model is the proof (see illustration 6). The goals and strategies of CSR are a part of the company culture, everyday thinking and decision making of the employees, including management, and naturally support the attainment of the mission, goals and strategies of the company. Proof is, for example, in 2 of the 5 key strategies (be a leading brand and be the best employer) and 7 company values, where CSR aspects are clearly contained.
Illustration 6: Vodafones business model and CSR
Vodafone CZ Business Plan

Create the future of the mobile industry


We are fresh and original We respect different opinions We stand behind our people We are humans, not machines We keep our word We have courage to stand out

VF CZ strategies
We are at home

Vodafone CZ: Corporate Responsibility as part of our purpose

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

Vodafone was, for example, the initiator of discussions with the other operators regarding the sharing of the network, where one of the motives is also a more considerate approach to the environment. Instead of 3 base stations of 3 operators in various locations, ideally one common station would be built for all operators. Unfortunately the discussions that started in 2007 have so far not lead to a specific agreement, even though Vodafone is very active and has already submitted a number of alternatives for sharing both 2G and 3G networks in various ways. A specific clear example of a CSR goal in the business plan is the 2007 announcement to attain 40% savings on the use of electricity per unit of transferred data, which is a part of the support of the battle against climactic changes and related global warming. Based on this goal, a team was established consisting of representatives of several departments (network building, technology, purchasing, CSR), which, after a thorough analysis of the status quo, proposed an action plan for reaching this goal. The plan was approved and signed by the Technology Vice-President, and it is being gradually implemented step-by-step. Currently, an even tougher goal of the 50% reduction of CO2 emissions by the year 2020 in comparison to 2006/2007 has been set. The goal will be reached on one hand by conservation, and to a larger extent by the purchasing of green energy (i.e., support of renewable resources).

6. How are activities in the area of CSR integrated into enterprise processes? Within the scope of the annual process of the planning of the companys next direction, preparation of budgets and proposing of multi-year strategic plans, CSR inputs are also included into these processes. Regular assessment of CSR aspects and possible risks and opportunities is performed with the scope of the Risk management process. Where it is possible and relevant, CSR activities are linked to specific strategies and goals of the company and these are then reflected in specific annual goals of people or departments that are key for their fulfillment. For example, CSR is a part of the processes of Purchasing and Evaluation of suppliers (see illustration 7, Codex of ethical purchasing), Network building and maintenance (Responsible network building policy), Evaluation of projects (part of the project methodology), External and internal communication, Management of the companys reputation or also the Entry training for new employees. CSR is also the basis of the so called Involving of the employees and the acquisition of feedback via surveys or discussion on the intranet forum (intranet employee discussions on any topic). A process for the reporting of relevant CSR data from various company departments has been set up, etc.
Illustration 7: Areas in the Codex of ethical purchasing

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

In 2006, the Vodafone Foundation was established, which processualy executes programs of social investments into society. The establishment of local Vodafone foundations and investment into charitable projects is one of the promises towards the external world (see question 1). Vodafone dedicated a total of 16.3 million CZK for the operation and social investments via the Foundation in 2007. The Vodafone Foundation thus ranked among the top 5 company foundations on the Czech market based on the volume of social investments. Based on the percent of social investments in comparison to gross profit, Vodafone is the unchallenged leader among the mobile operators in the CR (source Donors Forum 2007: Vodafone R 0.74%, Telefonica O2: 0.28%, T-mobile 0.21%). The list of the integration of CSR into the mentioned processes is of course not complete, but it does show the principle of how CSR works in the company. The natural incorporation of CSR into the company business cycle where it is relevant and suitable is thus attained, as well as its execution within the scope of everyday business.

7. What is the role of the affected external parties in the execution of CSR activities and projects? In one word - partner. We strive to find, include and cooperate with partners everywhere it is possible. The first reason is that we do not want to invent the wheel where it has been discovered a long time ago. Many non-profit organizations or institutions have very good knowledge of a specific field or area where we want to execute a specific activity. Another reason is then the mutual enrichment of the company and the external parties by various viewpoints, experience and knowledge. More heads know more and the cooperation of subjects with a completely different focus enriches both sides and brings new ideas. A specific illustration is the volunteer program, where every employee can dedicate 1 day per year to a non-profit organization (from the raking of hay to IT consultations) and he or she will get paid by us. Since the year 2007 we have been cooperating with the Czech Union of Nature Conservation (CUNC) from which we receive tips for suitable activities for our volunteers, especially in the regions where we are active. We have also newly established cooperation with Hestia National volunteer center, where as the first company in the CR we have begun to systematically and on a long-term basis cooperate with this renowned organization. Hestia helps us to administer our volunteer program, we have jointly developed a simple registration application that is accessible via the Internet and we have agreed that Hestia can also use this application for other companies.

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

Another example is our discussion with the Ecological legal service, which we proactively addressed ourselves. We inform them about activities that are being prepared and we get from them their view on various topics from the position of a protector of public and customer rights. Also Gender studies are a very valuable source of learnings in the area of equal opportunity or approaches to the execution of our advertising campaigns. Membership in the Business Leaders Forum gives us the possibility to react to external parties also from the position of Vice-Chairperson of this interest association that strives to support CSR in business. The Supervisory Board of the Vodafone Foundation is composed not only of Vodafone employees, but also of respected experts from the non-profit sector who thus participate in the formation of the strategy and direction of the Foundation. Moreover, the Foundation programs are prepared and executed in cooperation with respected partners and personalities from the non-profit sector. See www.nadacevodafone.cz for more information.

8. Does your company use innovative methods in the area of CSR for the active involvement of the influenced external parties? We strive to use innovative and smart approaches in the utilization of mobile technologies to help the needy and for the involvement of external parties into our activities, including nontraditional communication with external parties. In addition to the partnership approach (described in more detail in question 7), we can illustrate the innovative methods also via other examples: a) GSM/GPS navigation center for the blind The navigation system was developed, as the first of its kind in the world, by the Research and Development Center (joint project of Vodafone, VUT, Ericsson). In 2007, the Foundation supported the building of a call center for the unique GSM/GPS navigation system for the blind. The navigation system thus enables the immediate localization (navigation unit) and navigation (call center) of a blind person in the event of the loss of orientation. The project is being executed in cooperation with the Unified Organization of the Blind and Weak-sighted. The navigation center is currently functioning in pilot operation. Vodafone and the Foundation received the Via Bona prize in 2007 for innovative approach to donorship. b) External parties are actively innovatively involved in communication via our blog (for the general public blog.vodafone.cz ) or partner blog (for registered partners, e.g., among suppliers, non-profit organizations, journalists, etc.). We also supplement the non-traditional possibilities for the involvement of the representatives of external parties at already mentioned roadshows, company events, dialogue at the Roundtable or in the Supervisory Board of the Vodafone Foundation (see questions 3,7).
Illustration 8: Vodafone blog

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

Other interesting examples of innovative methods for involving external parties are an SMS information system that summons blood donors for blood taking, an SMS information system for the prevention of cervical cancer that reminds women who register via a web application of their date for a preventive examination at their gynecologists, or the world unique donor SMS (DMS).

9. Does your company motivate employees to participate in CSR activities and projects? We try to educate and involve our employees in CSR in a natural way. For example, the August 2007 We dont stick our hearts into the sand internal information campaign was based on specific examples of how every employee can behave responsibly. During the campaign, we stuck onto objects of common household use -- such as electric kettles, printers or waste baskets in our buildings -- stickers with a specific example of What happens when In this way, our people found out that it is a waste of energy to boil more water than they really need, that with two-sided printing they save so many trees or that plastics that have been sorted in the waste can be used, for example, for the production of a sweatshirt. We also reminded our employees in highly frequented locations, such as kitchens or elevators, that our company will pay them 1 day of volunteering in the nonprofit sector, and that they can easily donate blood or send a donor SMS (see illustration 9).

Illustration 9: Example from the 2007 CSR internal campaign

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

We regularly inform our employees about CSR activities via the employee newsletter and there are corporate responsibility pages on the intranet. They can also participate in the Climate Challenge interactive game, where within a virtual world they modify their usual behavior and find out how subsequently the world changes for the worse (gets more gray) or for the better (gets greener). Via practical examples they are thus confronted with what they themselves do daily and what they can do differently. Many of them are involved in our Day for a non-profit organization volunteer program. In 2007 they worked over 1,000 hours this way and this year the number will definitely grow. The employees can voluntarily support the Foundation by donating so called benefit points, which they could otherwise spend on the enjoyment of sports or culture. Via the special Volunteer Fund, employees can also request and receive financial support for a non-profit organization in which they are active on a voluntary basis. The employees participate in CSR events and react to related topics on the intranet Employee Forum, where they participate in discussions. Some of them also carry over their more responsible behavior outside of the company, which is great. Moreover, some of them, based on these experiences, have begun to work with non-profit organizations also on a long-term basis. Another proof that our approach is working is that even the employees themselves are now coming with ideas. In the kitchens, based on the direct request of the employees, plastic cups were exchanged for glasses and regular cups, so we no longer produce so much onetime plastic waste. Again based on their impulse, we have also included Fair Trade Products (i.e., products with the purchase of which we are helping small producers in the developing world) into the catalogue of company promotional products.

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M.C.TRITON, spol. s r.o.

Entry form for The European Corporate Responsibility Award 2008

10. How is the approach of your company to the increasing of business success via CSR activities innovative? The innovativeness and uniqueness of our approach in based on the combination of factors that have already been described in the specific examples of responses to previous questions and that play a role in the creation of trust between the company and its surroundings and thus contribute to the business success of the company. We will try to summarize them and refer to the examples already mentioned above: Comprehensiveness of the coverage of CSR topics by the company in all 3 pillars: environment, social area, ethics and conduct of company business that comply with the simple principle of Maximizing possibilities and minimizing possible negative consequences (see specific examples in the previous answers); Natural incorporation of CSR into the companys everyday business o strategy, business model, business plan o enterprise processes and projects o Fair marketing, ethical purchasing, decreasing of the consumption of energies, etc. (see specific examples in the previous answers); Partnership with the non-profit sector, external parties and communication with them o roadshow, Roundtable, discussion of specific topics o cooperation of non-profit organizations in the volunteer program o blog, partner blog, surveys (see questions 3, 7, 8); Active involvement of top management and its use for the support of CSR o active launch of the volunteer program by the entire top management o event with the Chief Executive during the Mobility Week o action plan for the Decreasing of the consumption of electricity (see questions 3, 4, 5); Non-traditional methods of involving employees and communication with them o non-traditional internal CSR information campaign, interactive Climate challenge game o various CSR promo events, employee forum o possibility of donating benefit points (see questions 7, 8, 9); Utilization of the ideas of employees themselves; o glasses and regular cups instead of plastics o Fair trade products (see question 9); Philanthropic activity Vodafone Czech Republic Foundation, which is at the top in the CR not only according to quantitative, but as well as qualitative indicators, and is characterized by a systematic and yet innovative approach that has received prizes (see questions 3, 6, 7, 8, 9).

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M.C.TRITON, spol. s r.o.

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