Vodafone 2007 Annual Report Download - page 77

Vodafone Group Plc Annual Report 2007 75
GovernanceGovernance
Corporate Responsibility
Vodafone sees corporate responsibility (“CR”) as the
process of understanding the expectations of
stakeholders in the Group and taking appropriate
action to meet those expectations where they are
realistic and legitimate. Stakeholders include
customers, investors, employees, suppliers, the
communities where the Group operates and where
networks are based, governments and regulators and
representatives of civil society.
CR is relevant across all aspects of Vodafone’s
business and being a responsible business is one of
the Group’s long term, strategic goals. Vodafone’s
CR strategy has the objective by 2010 to be one of
the most trusted companies in the markets where
the Group is represented by an operating subsidiary.
The strategy sets clear priorities to:
•Maintain high ethical standards and understand and
respond to stakeholders’ priorities;
•Ensure our operating standards are consistent across
the Group;
•Deliver on our promises in three key areas:
responsibility to our customers; reuse and recycling
of mobile phones; and climate change; and
•Capture the potential of mobile to bring
socio-economic value through access to
communications.
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 briefings.
The Executive Committee, chaired by the Chief Executive, receives regular
information on CR and for the last four years, the Board has had an annual
session on CR. A CR management structure is established in each mobile
operating company, with each one having a representative on their
management board with responsibility for CR. For the purposes of this
section of the Annual Report, all mobile operating companies refers to the
Group’s mobile operating subsidiaries and the Group’s joint venture in Italy.
It excludes the newly acquired operations in Turkey and India. Systems for
data collection on corporate responsibility and environmental issues are
being put in place for the 2008 financial year for Turkey and Arcor,
Vodafone’s fixed-line business in Germany.
CR performance is closely monitored and reported to most mobile
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 mobile 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. The Group
engages with stakeholders in a variety of different ways and this year has
focused on carrying out in-depth discussions on specific, emerging issues
through the Vodafone CR Dialogues programme. For example, during the
financial year, opinion former meetings were held on privacy and climate
change. In addition, the Group held meetings relating to CR issues with
12 investors and face to face meetings were held with nongovernmental
organisations and opinion formers. This is covered in more detail in the
Group’s CR Report for the 2007 financial year, which can be found at
www.vodafone.com/responsibility.
Vodafone has increased last year’s level of independent assessment and
assurance of the CR programme and performance to reasonable assurance.
The scope of work for the Group’s auditors includes a review of the progress
achieved against commitments set out in the 2006 Group CR report and the
management and reporting of CR matters against the requirements of the
assurance standard AA1000 AS, issued by AccountAbility. This identifies, in
all material respects, whether reporting reflects the material CR issues of
the Group as defined by the standard, whether processes are in place to
ensure a complete understanding of the issues, and whether Vodafone is
responding adequately to identified stakeholders’ expectations. The
assurance statement is published in the Group’s CR Report.
Over the last year, progress has been made in responding to the Group’s
stakeholders’ expectations. The most significant developments are
summarised below and further details are provided in the Group’s CR Report
and on www.vodafone.com/responsibility. In addition to the Group’s CR
Report, 11 operating subsidiaries have produced their own CR report.
During the year, Vodafone was ranked first in the Accountability Rating
published by Fortune magazine and Vodafone’s 2006 CR report won the
Association of Chartered Certified Accountants (“ACCA”) Best Report Award
2006. Vodafone is included in the FTSE4Good and Dow Jones
Sustainability Index.
Access to communications
Access to communications offers the single greatest opportunity for
Vodafone to make a strong contribution to society. The Vodafone Social
Investment Fund, launched in 2006, has invested in a range of projects
during the course of the year.
A considerable pool of research shows that telecommunications – and
mobile telecommunications in particular – has the potential to change
people’s lives for the better by promoting economic development. During
the 2007 financial year, Vodafone’s focus has been on mobile
payment services:
•M-PESA was launched in February 2007 by Safaricom, Vodafone’s joint
venture in Kenya. Customers can deposit and withdraw cash at local
M-PESA agents, transfer money to other mobile users via SMS and buy
prepaid airtime credit.
Corporate Responsibility and Environmental Issues