Vodafone 2009 Annual Report Download - page 47

Performance
Vodafone Group Plc Annual Report 2009 45
“Being a responsible business” is one of Vodafone’s enduring goals, recognising that responsible behaviour
underpins the value of the brand. The Group’s approach to Corporate Responsibility (‘CR’) is to engage with
stakeholders to understand their expectations on the issues most important to them and respond with appropriate
targets, programmes and reports on progress.
More detail on CR performance for the year ended 31 March 2009 will be available in the Vodafone 2009 CR report
and at www.vodafone.com/responsibility.
During the year, Vodafone’s 2008 CR report won three Corporate Register Reporting
Awards for the best report, relevance and materiality and credibility through
assurance. Vodafone is included in the FTSE4Good and Dow Jones Sustainability
Index and rated first in the Global AccountAbility Rating, published by Fortune.
Strategy
A broad range of stakeholders is increasingly interested in how Vodafone manages
CR 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.
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. The CR strategy,
which addresses CR issues material to the Group, has the following main strands:
to capture the potential of mobile communications 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 business practices are implemented responsibly across the •
Group, underpinned by Vodafone’s values and business principles.
CR governance
The Group’s main focus is on implementing its CR programme across local operating
companies. 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. For the first time, it includes information on India but, given the scale of
operations and the challenges of bringing India in line with the Group’s CR practices,
which may ta ke some time, t he CR infor mation and data disclosed for I ndia is preliminary.
The newly acquired businesses in Ghana and Qatar are excluded and it is intended
to include them in reporting for the 2010 financial year. The Group recognises that
it has influence with joint ventures, associates, investments, partner networks
and outsourcing partners. In the 2009 financial year, the Group reviewed its role
in promoting CR with these partners and the result of this analysis is available at
www.vodafone.com/responsibility.
Vodafone’s approach to CR is underpinned by its business principles which cover,
amongst other things, the environment, employees, individual conduct, community
and society. The business principles are available at 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 six
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. 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, regulators and non-
governmental organisations. Established in 2007, the Vodafone Corporate
Responsibility Expert Advisory Panel comprises opinion leaders who are experts on
CR issues important to Vodafone. The Panel met twice during the 2009 financial year
and discussed the results of research on the socio-economic impact of mobile
communications in India, climate change, the limits of Vodafone’s responsibility and
embedding business principles into company culture. In addition, the Group has
continued to hold formal stakeholder engagement events, this year focused on
climate change and mobile advertising. The Group has also published a CR dialogue
on waste.
Vodafone’s CR programme and selected performance information, as reported in the
Group’s 2009 CR report, will be independently assured by KPMG using the International
Standard on Assurance Engagements (‘ISAE 3000’). The assurance process assesses
Vodafone’s adherence to the AccountAbility1000 Principles Standard (‘AA1000APS’)
addressing inclusiveness, materiality and responsiveness, and the reliability of
selected performance information. KPMG’s assurance statement outlining the
specific assurance scope, which excludes India, procedures and assurance opinion
will be published in the Group’s 2009 CR report.
For the 2009 financial year, the Group’s CR reporting comprises online information
on CR programmes and a performance report. Thirteen operating companies have
at some time produced their own CR reports.
Performance in the 2009 nancial year
Access to communications
Access to communications offers a significant opportunity for Vodafone to make a
strong contribution to society, with a considerable body of research showing that
mobile communications has the potential to change people’s lives for the better, by
promoting economic and social development.
Emerging markets
In January 2009, Vodafone published research on the socio-economic impact of
mobile phones in India. The report found that the GDP of Indian states with higher
mobile penetration can be expected to grow faster than states with lower mobile
penetration at a rate of approximately 1.2% per 10% of penetration. Vodafone’s Social
Investment Fund was set up in 2007 to promote the development of products with
high social value that may not otherwise be seen as commercially attractive. Since
the fund was established, eight initiatives have been supported across the Vodafone
footprint in areas such as mobile health, mobile transactions, and entrepreneur and
small and medium enterprise development.
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
Corporate responsibility