Vodafone 2008 Annual Report Download - page 61

Corporate Responsibility
Business impact
CR issues present both risks and opportunities for Vodafone and a broad range of
stakeholders are increasingly interested in how Vodafone manages these issues.
For example, the Group’s licences to operate are granted by governments that
frequently seek evidence of responsible business practices and in many markets
consumers are becoming more concerned about CR issues, such as climate
change, content standards and mobile phones, masts and health.
The range of stakeholders and the breadth of the issues involved indicate that
CR is relevant across all aspects of Vodafone’s activities and therefore the Group
seeks to integrate its CR approach into all key business processes.
Strategy
The CR strategy, which addresses CR issues material to the Group, has the
following main strands:
to capture the potential of mobile to bring socio-economic value in both
emerging economies and developed markets, through broadening access to
communications to all sections of society;
to deliver against stakeholder expectations on the key areas of climate change,
a safe and responsible internet experience and sustainable products and
services; and
to ensure Vodafone’s operating standards are of a consistent and appropriate
level across the Group.
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CR governance
Vodafone’s approach to CR is underpinned by its business principles which cover,
amongst other things, the environment, employees, individual conduct and
community and society. The business principles are available on www.vodafone.
com/responsibility/businessprinciples and are communicated to employees in a
number of ways, including induction processes, websites and face to face meetings.
The Executive Committee receives regular information on CR and, for the last
five years, the Board has had an annual presentation on CR. A CR management
structure is established in each local operating company, with each one having
a representative on its management board with responsibility for CR. For the
purposes of this section of the Annual Report, “operating companies” refers to
the Group’s operating subsidiaries and the Group’s joint venture in Italy. It includes
information for the first time for Turkey and Arcor, Vodafone’s fixed-line business
in Germany, but excludes the newly acquired operations in India and Tele2 in
Spain and Italy. These newly acquired operations will be included in the 2009
financial year.
CR performance is closely monitored and reported at most local operating
company boards on a regular basis. CR is also integrated into Vodafone’s risk
management processes such as the formal annual confirmation provided by
each local operating company detailing the operation of their controls system.
These processes are supported by stakeholder engagement, which helps to
ensure Vodafone is aware of the issues relevant to the business and to provide a
clear understanding of expectations of performance. Stakeholder consultations
take place with customers, investors, employees, suppliers, the communities
where the Group operates and where networks are based, governments and
regulators and non-governmental organisations. In addition, the Group has
continued the Vodafone CR Dialogues programme of in-depth discussions on
specific, emerging issues. CR Dialogues this year focused on privacy, climate
change, safe internet and emerging markets. More information on this can be
found at www.vodafone.com/responsibility.
Vodafone’s CR programme and performance as reported on the Group’s online
CR report has been independently assured using the AccountAbility 1000
Assurance Standard (AA1000 AS) by the Group’s auditors, Deloitte & Touche LLP.
The AA1000 AS requires Vodafone to report its responses and performance on
material issues. Deloitte’s assurance statement outlining the specific assurance
scope, procedures and “reasonable assurance” opinion is published in the Group’s
online CR report.
The Group’s CR reporting comprises an online report and a printed CR summary
focusing on strategy and trends, while 12 operating companies also produce
their own CR reports.
During the year, Vodafone’s 2007 CR report won the main accolade of the
Corporate Register Reporting Awards for the best report and was commended
by the Association of Chartered Certified Accountants (“ACCA”) for the best
disclosure in Tax and Public Policy. Vodafone is included in the FTSE4Good and
Dow Jones Sustainability Index and rated fifth in the Global AccountAbility Rating,
published by
Fortune .
The Board regards responsible behaviour in all Vodafone’s operations as underpinning the value of
the brand and has established ‘being a responsible business’ as one of the Group’s long term goals.
The Group’s approach to corporate responsibility (“CR”) enables it to understand the expectations
of stakeholders, forecast trends in social, environmental and ethical requirements and to manage
the Group’s performance in an appropriate manner.
More detail will be available in the online CR report with the full CR performance for the year ended
31 March 2008 at www.vodafone.com/responsibility.
Key CR strategic objectives
Core initiative:
Access to communications
Safe and responsible
internet experience
Climate change Sustainable
products and services
Supported by responsible business practices
Underpinned by values, principles and behaviours
Vodafone Group Plc Annual Report 2008 59