Vodafone 2003 Annual Report Download - page 69

Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 67
CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL ISSUES
Corporate Social Responsibility
Business success is based on the ability to create and maintain meaningful
relationships with key stakeholder groups. These groups include customers,
shareholders, employees, suppliers, regulators and local communities. These
groups have interests that extend beyond short term financial results and are
influenced by social and environmental issues in a broad context.
The Group recognises these issues and regards a strong corporate social
responsibility, (“CSR”) programme as an important part of achieving sustainable
business success. This is recognised in the establishment of one of the four corporate
Values, “Passion for the world around us”and in the personal commitment made by
the Chief Executive and Group Chief Operating Officer in taking the message directly
to over 27,000 managers and staff since the launch of these Values.
Members of the Board are involved in aspects of CSR in several different ways.
For example, CSR policy-related matters are managed through the Group Policy
Committee, chaired by the Chief Executive. Seven high priority initiatives on
environmental and other CSR-related issues have been approved. Each of the
initiatives is sponsored by an operating company chief executive officer, or senior
Group executive, and they are monitored on a regular basis by the Group
Operational Review Committee, chaired by the Group Chief Operating Officer. The
Group’s Council Member on the World Business Council for Sustainable
Development is the Group Strategy Director.
The basis of the Group’s approach to CSR is a thorough understanding of how
and why CSR-related issues have significance for the Group. This is developed
through the expertise of dedicated managers at Group and operating company
level and through broad consultation with both internal and external stakeholder
groups. Engagement has included in depth survey work, and meetings with
prominent members of the socially responsible investment community and
certain non-governmental organisations.
The Company is publishing its third separate CSR Report. CSR web pages can be
found at www.vodafone.com. The CSR Report covers many of the issues set out
in this section in more detail and provides an update on progress against
commitments made last year.
For example:
•The Group has organised a major conference for its key global suppliers with
the purpose of developing closer co-operation on CSR-related matters.
•The Group and operating companies have implemented new environmental and
community data gathering systems and procedures and these will be used to
underpin monitoring and reporting of performance against commitments.
•An organisational learning strategy for CSR is being developed. This will
address learning at all levels within the business, including further integration
of CSR matters into global management development programmes. At the
same time, CSR features in the global competency framework that has been
established to support the development of people across the Group.
•A preliminary model of how to assess and measure the social and
environmental value that comes from certain mobile applications has been
developed and tested in the UK with a view to extending it to other operations.
•The Vodafone Group Foundation was formally launched in June 2002 and has
implemented a programme of grant making activity in accordance with its
mission statement published last year. There are now twelve local foundations
across the Group to support local communities at country level. Twenty-one
global projects and numerous national level projects have now been funded
and launched. Further details of the Vodafone Group Foundations’ activities
are available in the CSR Report.
•The Company has retained its position in both the FTSE4Good and Dow Jones
Sustainability Indices.
•Last year the Group reported the publication of its Business Principles. This
year has seen the roll-out of these across the Group and the continuing
development of a process to gain assurance that these principles are at the
centre of business activities.
To progress towards more detailed assurance in relation to CSR reporting, Deloitte
& Touche has carried out an assessment of the environmental, occupational
health and safety and community data gathering and collation processes at Group
level. Their findings can be found within the Company’s CSR Report. They have
also reviewed this statement to check for consistency with the findings of their
work. The London Benchmarking Group has also issued an assurance report in
relation to our charitable giving and community engagement.
In addition to the CSR report, Vodafone Italy has also published its own CSR
report and the Company will be encouraging other operating companies to do so
in the future.
The next years will see a strong focus on further delivery against our commitments
and increasing the integration of CSR into our core business processes.
Environmental Issues
The Group recognises that most business activities have an interaction with the
natural environment and that any associated negative impacts are a legitimate
concern for society as a whole. The negative impacts that arise from mobile
telecommunications companies are, arguably, less significant than those that
arise in certain other sectors. Nevertheless, the Group is committed to identifying
and minimising these impacts in an appropriate manner.
Over the last twelve months, the Company has put in place a series of
programmes that address significant environmental issues. These include
addressing the concerns related to the perceived link between radio frequencies
(“EMF”) and health, the use of energy across the Group’s operations, the reuse
and recycling of handsets and accessories, the management of waste and the
use of ozone depleting substances used in our operations. Progress is being
made across all of these projects.
For example:
•All operating companies now provide information about radio frequency levels
on request. In addition, seven operating companies are now running field
monitoring schemes based on the success of a project in Cassiopea, Italy.
Best practice in relation to communication about radio frequency levels will be
further promoted.
•
Schemes to re-use and recycle handsets and accessories are now in place
across over 90% of the customer base. A target has been set of achieving a 10%
increase in the number of handsets returned for reuse or recycling by 2005.
•A series of operational improvements for saving energy have now been
identified by cross-functional teams in the operating companies.
• An independent review of management practices in relation to waste and
ozone depleting substances is underway in three operating companies and
best practices will be promoted across the Group.
In relation to radio frequencies, the Group continues to recognise concerns
relating to potential health risks and has continued to monitor any scientific
developments in this area. The Group has also committed 18 million to
independent research in this area at both the international and national levels.
The Group commits to disclosing any information that comes to its knowledge
that clearly demonstrates that any of its products and services breach
internationally accepted safety standards or guidelines.
Further details of these initiatives, and progress against environment-related
commitments made last year, are provided in the Company’s 2002/03
CSR Report.