Vodafone 2010 Annual Report Download - page 47

Performance
Vodafone Group Plc Annual Report 2010 45
Our 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. We
understand that responsible behaviour is key to building and maintaining trust in our brand.
More detail on CR performance for the year ended 31 March 2010 will be available in our 2010 sustainability report
and at www.vodafone.com/responsibility.
During the year our 2009 CR report won the Corporate Register Reporting Award
for th e b est repor t. We are inclu ded in th e F T SE4Good and Dow J ones Susta inabi lit y
Index and rated first in the Tomorrow’s Value Rating of the sustainability
performance of the telecommunications sector.
Strategy
There is increasing interest in how businesses are addressing the challenges of
sustainability. Our licences to operate are granted by governments that seek
evidence of responsible business practices. Our research shows that consumers are
becoming more concerned about sustainability. Ethical investors and non-
government organisations remain focused on issues, such as supply chain standards
and privacy, and our corporate customers seek information on our performance
through questionnaires and meetings.
CR is relevant across all aspects of our activities and therefore we seek integration
into all key business processes. The CR strategy focuses on CR issues material to the
Group and 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 our business practices are implemented responsibly, underpinned by 
our business principles.
CR governance
Our main focus is on implementing our 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. Vodacom, Ghana and Qatar are currently not consolidated in our CR reporting
system but we intend to include them in reporting for the 2011 financial year. We
recognise that we also have influence with joint ventures, associates, investments,
partner markets and outsourcing partners.
Our approach to CR is underpinned by our business principles which cover, amongst
other things, the environment, employees, individual conduct, community
and society. During the year the business principles were reviewed and updated. We
have also created a code of conduct which provides a practical guide for employees in
relation to how to comply with the business principles. The new business principles and
the Vodafone code of conduct will be communicated during the 2011 financial year.
The Executive Committee receives a formal update on CR twice a year and the Board
continues to receive an annual presentation on CR. A CR management structure is
established in each local operating company and CR performance is closely
monitored and reported at most local operating company boards on a regular basis.
CR is also integrated into our 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 us to ensure
we are 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 we operate
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 once during the 2010 financial year and discussed the
progress made on identifying low carbon product and service opportunities, and
customer privacy issues.
Our CR programme and selected performance information, as reported in the Group’s
2010 sustainability report, will be independently assured by KPMG using the
International Standard on Assurance Engagements (‘ISAE 3000’). The assurance
process assesses our adherence to the AA1000 AccountAbility Principles Standard
(‘AA1000APS’) addressing inclusiveness, materiality and responsiveness, and the
reliability of selected performance information. KPMG’s assurance statement outlining
the specific assurance scope, procedures and assurance conclusions will be
published in our 2010 sustainability report.
For the 2010 financial year our CR reporting comprises online information on CR
programmes and a performance report. Nine operating companies have produced
their own CR reports during the 2010 financial year.
Information regarding our employees including diversity, inclusion, health, safety and
wellbeing can be found in “People” on page 22.
Performance in the 2010 nancial year
Access to communications
Our access to communications strategy continues to focus on responding to the
needs of customers in emerging markets and increasing the accessibility of our
products and services across demographics and individual capabilities.
Emerging markets
We have aligned the opportunity from mobile products and services in emerging
markets to the United Nations’ Millennium Development Goals – a blueprint agreed
to by all the world’s countries and leading development institutions to meet the
needs of the world’s poorest. Under this framework we set a target to “be recognised
as a communications company making one of the most significant contributions to
achieving the Millennium Development Goals (‘MDGs’) by 2015.”
We have continued to support our local markets to develop commercial products
and services with high social value through our social investment fund (‘SIF’). In the
2010 financial year we adapted the fund criteria to identify propositions that
contribute to one or more of the MDGs and eight projects were conducted under the
SIF the majority of which are relevant to MDG goals such as “eradicate extreme
poverty and hunger” and “combat HIV/AIDS, malaria and other diseases”.
In February 2010 we announced the launch of Vodafone 150, an extremely affordable
handset that retails unsubsidised at below US$15 depending on the local market.
These innovations reduce the cost barriers to the adoption of mobile communication
making new technologies available in developing countries – a target under the
MDGs. In the 2010 financial year we shipped 5.4 million Vodafone branded handsets.
Approximately 55% of these cost less than US$50.
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