By: HT Corporate Responsibility Team: Maja Weber, Director of the Public Relations Department Nina Bertapelle, Public Relations Department, Team Coordination Lada Aškić, Public Relations Department Mirna Biondić and Krunoslava Gerbl, HR Competence Centre Sector Ivana Frankol, Marketing Communications Department Ružica Gajić, Investment Management and Operating Support Sector - Environmental Protection Branka Grendov, Controlling Sector Darja Lončar Dušanović, Data Protection Officer Dorotea Pečarić Truntić, Procurement and Logistics Sector Maša Serdinšek, Corporate Strategy and Business Development Sector Tvrtko Štefanac, Supervisory Board and Management Board Office Ana Žiher, Compliance Department The Institute of Economics, Zagreb Paul Stubbs, PhD Denis Redžepagić, PhD, MEB Contents 1 About the report 5 Workplace About the report 4 Workplace 58 Statement of the CEO 7 Competitive workplace 63 Group Profile 8 Culture of helping 70 Awards and recognitions 10 GRI 3.1. Index 11 6 Cooperation with suppliers Progress report GC 23 Cooperation with suppliers 72 External assessment 24 Sustainability strategy for suppliers 73 Contacts and help in using this report 27 Use of raw materials 73 Selection of suppliers 74 2 Strategy and management Managing the supply chain 75 Values and management 29 Strategy of corporate social responsibility 32 7 Impact on the environment Risk management 34 Managing the impact on the environment 77 Stakeholders 36 Indicators of the impact on the environment 79 Relationship with the government and regulatory requirements 38 Biodiversity 85 Added value 39 8 Key indicators and objectives 3 Impact in the community Key indicators and objectives 87 Impact in the community 42 Expansion of network and infrastructure 43 Active role of the employees 43 Mobile communications and health 44 Investment in the community 45 4 Care for customers Care for customers 51 Basics of product design and development 52 Products and services - minimal impact on the environment 53 Products and services without limitations 54 Recycling (recovery) 54 Customer protection 55 Customer satisfaction 56 Artist: Sanja Bachrach i Mario Krištović Art piece: Up close and personal [email protected] competition, 2011 About the Report InTRoduCTIon / ABOUT THE REPORT About the Report 1.1. Communication is the basis of our daily lives. Every business and eve a constant increase in positive synergistic effect which the Company personal relationship is based on the interaction of its participants. strives for. Social responsibility does not imply only specific performed Hrvatski Telekom (Croatian Telecom), Croatia’s largest telecommunica- activities; it is a continuous process. Thus, this report is yet a further step tions company, seeks to facilitate and improve communication, making of this Company, in this environment, and on the way towards sustaina- it easier and more effective. The success of HT lies not only in innovation, bility in the broadest sense of the word. introduced to the market through new technologies and services. The Company’s success includes the appreciation of the role it plays within HISTORY OF REPORTING the community in which it operates that stems from the understanding 1.6. Hrvatski Telekom has been reporting regularly for four years on the that responsible business represents a substantial long-term strategic achievements of the Company in the field of corporate social responsi- advantage. Sustainability of business operations, through a responsible bility. As a member of a global United Nations agreement, Global Com- approach to the society in which we operate, is an integral part of our pact, HT has twice reported on its progress: firstly for 2007/2008 and Company. Every day we implement a number of activities in order to then secondly for the year 2009. In 2011 it published its first sustain- build and maintain the trust of our customers and stakeholders, thereby ability report, on a much more detailed and wider scale: the Corporate justifying the confidence that the Company enjoys by a responsible app- Social Responsibility Report for 2010. This report continues the prac- roach to the community in which it operates. tice of communicating strategies, activities and outcomes in the field of sustainability to the Company’s stakeholders - this time according 1.2. Corporate responsibility means that the Company uses its own to the GRI guidelines, internationally accepted standard of reporting advantages and strengths to enrich everyday life and knowledge of the on sustainability. The Company plans to continue this practice in the community in which it operates, in order to convey corporate values following period. to all stakeholders it exchanges experiences with, on a daily basis. For example, the common denominator of donation projects in which HT SCOPE AND FRAMEWORK OF THE REPORT participates is the orientation towards charity, education and projects 1.7. This report covers the reporting period of 2011 and sees the first ever whose crucial element is modern technology. Most projects are long- implementation of the GRI 3.1. guidelines for sustainability reporting at the term, which guarantees their greater effectiveness, and many have an level of GRI G3.1 B+ reporting standard. The report on the progress in internal and external nature, which means HT employees are directly implementing the Global Compact agreement forms an integral part of involved in helping the community. this report. Also, a part of this report is the result of an independent veri- fication of the presented data. HT plans to continue the practice of repor- 1.3. The outlined strategy of environmental protection has a special place ting on sustainability in two-year cycles using the GRI guidelines, there- in terms of elements of responsibility. As an example of its activities as fore the next sustainability report will cover 2012 and 2013. a leader, HT participates in digitization projects in society or provides Company resources for socially useful purposes. Its presence in the 1.8 In this report, which covers the reporting period of 2011, HT presents community is at the same time justified by numerous sponsorships the its results in terms of economic, environmental and social performance Company makes, especially in the field of culture. in accordance with GRI guidelines, while trying to make the presented data accurate, balanced, comparable, up-to-date as well as clear, relia- 1.4. Hrvatski Telekom has great expectations from its suppliers, not only ble, comprehensible and accessible. Although this is the first report of providing its customers access to the highest possible level of quality, this kind, we seek to establish the continuity of the collection and veri- but equally in order for them to adopt corporate values, strengthen fication of information in the report, which is the reason the report has cooperation for mutual benefit and together with HT contribute to the been verified by independent auditors. An external assessment forms community now and in the future. an integral part of this report. In addition, we plan to carry out an audit for following reports. 1.5. This sustainability report focuses on presenting the ways in which HT communicates with its surroundings and the stakeholders, with which 1.9 The sustainability report covers the operations of Hrvatski Telekom it enters into a creative and quality relationship, so as to encourage the d.d. within the Republic of Croatia. The contents of this report cover the exchange of views with the aim of general well-being, as well as to achi- activities of HT d.d., but not all members of the HT Group. It does not in- 4 InTRoduCTIon / ABOUT THE REPORT clude HP d.o.o Mostar, where HT has an ownership interest of 30.29%, The second thematic section presents the principles of management and or HT d.d. Mostar, where HT has an ownership interest of 39.1%, both approach to sustainability. It contains all relevant rules and procedures outside the Republic of Croatia. The operations of its affiliates, Iskon d.o.o. of conduct in approaching corporate social responsibility. It also iden- and Combis d.o.o., are not the subject of this report, since these compa- tifies various significant impacts and risks in operations, which are a nies do not form an integral part of the organization, but rather operate reflection of the themes, inspired by stakeholders and experts, and all as independent companies. Nevertheless, HT actively supports the initi- in order to transparently present our approach to sustainable business. atives of corporate social responsibility in these affiliates. Communication with stakeholders is an exceptionally important element of the Company, which is the reason we have presented key stakehol- 1.10 Given that socially responsible business is HT’s long-term business der groups with whom we exchange opinions on a daily basis. With the strategy, the present report aims at standardization of data in order to presentation of the relevant areas in the report, we have also presented achieve the highest degree of comparability in the future. performance indicators that reflect the long-term effects of our business on sustainability and also the impact on our business. 1.11 To the extent possible, all the data in this report are expressed in Croatian Kuna (HRK). The financial and other performance indicators In the second group we have presented the achieved results in relevant can be found in the Company’s regular financial and other reports on areas: the impact on the community, customer care, the impact on the the Company’s website: www.t.ht.hr/investitori. Other data are expre- workplace, collaboration with suppliers, and the impact on the environ- ssed in the appropriate standard units of measurement, with the use of ment. These are areas in which the Company co-operates with its stake- multiple measurement devices, for example in the field of environmen- holders, but also areas of significant importance for the long-term susta- tal protection, or an internal procedure of data collection in different inability of the business.