Vodafone 2007 Annual Report Download - page 78

76 Vodafone Group Plc Annual Report 2007
Corporate Responsibility and Environmental Issues
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•Building on M-PESA, Vodafone is piloting an international transfer service
with Citigroup, enabling people to send money abroad and collect
remittances via their mobile phones.
•Vodafone and HSBC launched Vodafone Cash in Egypt in February 2007.
This links a prepaid bank card to mobile phone air-time. The Vodafone
Cash service is designed to give customers with no bank account an easy
way to deposit, transfer and withdraw cash.
Parental controls
All mobile operating companies that offer age-restricted content have
implemented parental controls. These block access to age-restricted
content on the Vodafone live! domain to those under 18 years of age.
Internet filters are offered by five operating companies. This enables parents
to prevent their children accessing inappropriate age-restricted content on
the internet via their mobile phones. The mobile operating companies that
have not implemented the filter will remove individual access to the
internet completely on request.
Vodafone has signed the European Framework for safer mobile use by
younger teenagers and children. Signatories to the framework are
committed to develop national self-regulatory codes on child safety and
mobile phones.
Earning the trust of customers
Vodafone’s reputation depends on earning the trust of its customers. A
range of issues are key to maintaining trust in Vodafone and our services.
These include responsible marketing, clear pricing and protecting
customers’ privacy. During the year, Vodafone has focused on the clarity of
marketing communications and the way in which the Group handles
customer privacy, particularly in relation to the launch of mobile advertising
services announced in May 2006 and in response to increasing demands
from law enforcement agencies relating to the threat of serious crime
and terrorism.
In response to concerns raised about freedom of expression and the
internet, Vodafone is participating in a stakeholder engagement to draft
principles on privacy and freedom of expression. More than 20 academics,
investors, companies and nongovernmental organisations are also involved
in this process.
The Group drafted guidelines on its mobile advertising activities to ensure
that advertising content in national markets will meet its customers’
expectations and that customers’ privacy will be protected, by ensuring that
customers’ personal information will not be used for advertising services
without obtaining customers’ consent.
In January 2007, Vodafone Greece was fined in respect of breaches of
communications privacy legislation. Refer to page 26 in the “Business
Regulation” section for further details of the case.
Supply chain
The Group continues to implement Vodafone’s Code of Ethical Purchasing,
which sets out environmental and labour standards for suppliers.
•A total of 290 suppliers, including approximately 45 strategic global
suppliers, have been assessed using the Group’s supplier evaluation
scorecard, in which CR accounts for 10% of the total. The scorecard
evaluates the supplier’s CR management systems, public reporting and
approach to managing their suppliers. 17 site evaluations of high risk
suppliers have been completed.
•A supplier qualification process, incorporating CR, has been implemented
in all mobile operating companies.
•A “Speak Up” programme to provide suppliers with a means to report any
ethical concerns has been introduced in all mobile operating companies.
Less than ten incidents have been reported to date; all have been
investigated and resolved satisfactorily.
Social investment
The Vodafone Group Foundation and the unique network of 19 local
operating company and associate foundations have continued to
implement a global social investment programme.
During the 2007 financial year, the Company made a charitable grant of
£31.5 million to the Vodafone Group Foundation. The majority of funds
were distributed in grants through local operating company foundations to
a variety of local charitable organisations. The Vodafone Group Foundation
made additional grants to charitable partners engaged in a variety of global
projects, notably for disaster relief and preparedness. In addition, local
operating companies donated a further £13.0 million to their foundations
and a further £3.7 million directly to a variety of causes. These donations
total £48.2 million and include donations of £0.7 million made as required
by the terms of certain network operating licences.
Environmental Issues
The Group continues to monitor and manage the impact of its activities on
the environment and is committed to minimising adverse impacts in an
appropriate manner. Over the last 12 months, progress has continued to be
made across a series of projects that address environmental issues.
Mobile phones, masts and health
Vodafone recognises that there is public concern about the safety of Radio
Frequency (“RF”) fields from mobile phones and base stations. The Group
contributes to funding independent scientific research to resolve scientific
uncertainty in areas identified by the World Health Organisation (“WHO”). In
the 2007 financial year, the WHO identified the main gaps in scientific
knowledge, including long-term exposure and issues relating to exposure of
children. The WHO reported that further research into RF fields from mobile
base stations is a low priority due to the very low exposure levels from this
source.