Vodafone 2007 Annual Report Download - page 23

Vodafone Group Plc Annual Report 2007 21
In addition, Vodafone has added another specific area of focus this year:
•To create an environment where people are attracted to work for
Vodafone and are truly engaged to grow and deliver their best efforts. This
goal is supported by the rollout of the Vodafone People Strategy. During
the 2008 financial year the Vodafone People Strategy will be
communicated to all employees, with the ultimate goal that employee
engagement levels will be in the top quartile in every market in which the
Group operates.
Employment policies
The Group’s employment policies are consistent with the principles of the
United Nations Universal Declaration of Human Rights and the International
Labour Organisation Core Conventions and are developed to reflect local
legal, cultural and employment requirements. High standards are
maintained wherever the Group operates, as Vodafone aims to ensure that
the Group is recognised as an employer of choice. Employees at all levels
and in all companies are encouraged to make the greatest possible
contribution to the Group’s success. The Group considers its employee
relations to be good.
Equal opportunities
Vodafone does not condone unfair treatment of any kind and operates an
equal opportunities policy for all aspects of employment and advancement,
regardless of race, nationality, sex, age, marital status, disability or religious
or political belief. In practice, this means that the Group is able to select the
best people available for positions on the basis of merit and capability,
making the most effective use of the talents and experience of people in
the business and providing them with the opportunity to develop and
realise their potential.
The disabled
Vodafone is conscious of the difficulties experienced by people with
disabilities. Every effort is made to ensure ready access to the Group’s
facilities and services and a range of products has been developed for
people with special needs. In addition, disabled people are assured of full
and fair consideration for all vacancies for which they offer themselves as
suitable candidates and efforts are made to meet their special needs,
particularly in relation to access and mobility. Where possible, modifications
to workplaces are made to provide access and, therefore, job opportunities
for the disabled. Every effort is made to continue the employment of people
who become disabled via the provision of additional facilities, job design
and the provision of appropriate training.
Health, safety and wellbeing
The health, safety and wellbeing of the Group’s customers, employees and
others who could be affected by its activities are of paramount importance
to Vodafone and the Group applies rigorous standards to all its operations.
The health and safety management in each operating company is audited
annually and the results are submitted in a report for discussion by the
Board. The Group’s annual global health and safety audit has been recently
upgraded in line with the new health and safety management system. This
online system provides improved detailed assessment and management
reporting. The system, which includes global policies, standards and best
practice samples, provides easy to access guidance and supports
governance requirements, particularly for Vodafone businesses in
developing markets.
The Vodafone People Strategy includes health, safety and wellbeing as a
central part, with employee wellbeing a major focus as the business moves
forward. The 2008 financial year will see Vodafone health, safety and
wellbeing professionals focusing on three key initiatives to support this
strategy: implementation of employee wellbeing initiatives, emphasis on
communication and implementation of updated mobile phone and driving
policy requirements and the continued development of group standards for
the selection and evaluation of appropriately trained and qualified
contractors and service providers.
Supply chain management
Handsets, network equipment, marketing and IT services account for the
majority of Vodafone’s purchases, with the bulk of these purchases from
global suppliers. The Group’s Global Supply Chain Management (“GSCM”)
team is responsible for managing most of the Group’s relationships with
these suppliers.
The ongoing transformation of the supply chain organisation under one
leadership and global material strategies has enabled savings across all
operating companies. This is supported by a uniform savings methodology
applied across all operating companies. Enablers such as eAuctions and
seamless B2B applications form a vital part in leveraging the Group’s
scale further.
Vodafone’s eSourcing programme continues to drive and create significant
benefits for the entire organisation. Amongst its successes in the 2007
financial year, the programme has established world class benchmark prices
in hardware procurement.
GSCM continues to implement best practices across the Group’s mobile
operations with the aim of harmonising business processes, which will bring
the benefits of further reducing procurement costs and reducing time to
market.
Global suppliers are required to comply with the Group’s Code of Ethical
Purchasing which sets out the labour and environmental standards the
Group expects suppliers to meet. The Code is based on the Group’s values
and international standards, including the Universal Declaration of Human
Rights and the International Labour Organisation Conventions on Labour
Standards. GSCM has implemented a consistent supplier performance
management process that ensures that key suppliers are evaluated across
six areas, covering aspects of financial stability, technological and
commercial criteria, delivery and quality management requirements and
corporate responsibility.
Consistent with GSCM’s pro-active approach to strategic sourcing, Vodafone
launched the China Sourcing Centre based in Beijing in March 2007, which
will act as the GSCM competency centre for low cost sourcing and emerging
suppliers.
It is the Group’s policy to agree terms of transactions, including payment
terms, with suppliers and it is the Group’s normal practice that payment is
made accordingly. The number of days outstanding between receipt of
invoices and date of payment, calculated by reference to the amount owed to
suppliers at the year end as a proportion of the amounts invoiced by suppliers
during the year, was 34 days (2006: 36 days) in aggregate for the Group.
Research and Development (“R&D”)
The Group R&D function comprises an international and multicultural team
for applied research in mobile and internet communications and their
applications. The majority of the work of the Group’s R&D function is
undertaken through the Group’s research centres, located in Newbury,
Maastricht, Munich, California and Madrid, and in an associate centre in Paris
belonging to Vodafone’s associated undertaking in France, SFR. In the 2007
financial year, the R&D centre in Milan was re-absorbed into the Italian
operation and ceased to engage in research and development for the Group.
Governance is provided by the Group R&D Board, which is chaired by the
Group R&D Director and consists of the chief technology officers from six of
the operating subsidiaries in Europe, the heads of Business Strategy and
Global Terminals and a representative from EMAPA.
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