Where next? Corporate Responsibility Report Vodafone UK 2006/07 Contents 02 Introduction by Nick Read, CEO 04 Ethics and values 06 Stakeholder engagement 08 Socially significant products 10 What matters to our customers 14 Environment 18 Our network 20 Mobile phones, masts and health 22 Our people 25 Supply chain standards 26 Social investment 28 Independent assurance 29 Performance and data summary 30 Progress against commitments Welcome to the Vodafone UK Corporate Responsibility (CR) Report 2006/07. In this report, we explore the issues that matter to our business and our stakeholders. We report our progress and achievements, as well as the areas where we still have more to do. We think it is important to give an account of our progress to date – but we don’t want to be backward looking. Where next? is the theme of our report this year and, throughout, we have explored our intentions for the future and the challenges and opportunities that lie ahead. “I look at everything that Questions & Answers with Is Vodafone doing anything to help people What is Vodafone doing to tackle Nick Read, Vodafone UK’s CEO in the UK adopt more sustainable lifestyles? climate change? passes my desk through I’m hugely excited about the potential of This year has seen a major shift in attitudes to several lenses: how it affects Why is corporate responsibility important communications technology to create social climate change. It is now widely recognised as for Vodafone UK? and environmental benefits for the UK. one of the most urgent global issues on which our customers and our Our goal is to be the UK’s communications everyone – including individuals, governments With the right technology, people can work leader. To win in the marketplace, we need to and businesses – has to act. employees, and what the create a brand that customers feel an emotional effectively and securely from anywhere – they financial implications are. connection with; that employees want to do don’t have to be in the office. We are researching We’re working hard to minimise our impact on And importantly, I use a their best work for; and that is widely recognised and launching a range of mobility products that the environment. For example, we have reduced as a leader for the quality of its products and make remote working easier. This can reduce our paper consumption by 21% over the last year, corporate responsibility lens. services and the contribution it makes to the environmental impact of business travel, and 55% of waste from our Newbury and Theale Will this protect and build our society. Corporate responsibility (CR) supports keep people closer to their families and allow offices was recycled – a good result against an all these goals, and helps to give energy and companies to improve productivity and reduce industry figure of between 20% and 32%. reputation? Is this aligned with office space. Given that offices and business purpose to the business. We know there is more we can do in our travel account for a significant proportion of the our goal to be a leader in operations and to help customers to reduce What does CR mean to you? UK’s total carbon footprint, this could have major their impact so we’re currently reviewing our corporate responsibility?” It has a number of components. It means being environmental benefits. Vodafone has nearly a good citizen in all areas of our business. strategy in this area. Nick Read, CEO, Vodafone UK 50% of the market share among enterprise mobile We need to embed CR into our thinking so all customers in the UK (from large corporates to You may be entering into an agreement to decisions take into account opportunities to small businesses) so this is a major commercial share your network with Orange. What are enhance our reputation. It is also one of the ways opportunity for us. the CR implications of this change? we differentiate Vodafone from our competitors. The proposed joint venture may enable us to Healthcare is another area that could benefit. For example, we are one of the strongest significantly reduce the number of masts We’re currently testing a device that would allow companies on content standards and child needed in the shared network. This could be doctors to process patient records on the move. protection, which adds value for our customers. very beneficial in environmental terms – Other potential services include remote reducing energy use and the visual impact of I look at everything that passes my desk through monitoring for patients with chronic illnesses or masts. However, there may be some difficult several lenses: how it affects our customers and a text message service that reminds people decisions to make on the employment side. our employees, and what the financial about their doctor’s appointment. implications are. And importantly, I use a CR We always try hard to minimise job losses and Nick Read lens. Will this protect and build our reputation? Mobile technology can also facilitate access to we will be open and transparent with any Chief Executive Officer Is this aligned with our goal to be a leader in CR? banking services. Many foreign workers in the employees affected by the network share. UK regularly send money back to their families – Vodafone UK How will you continue to protect young What do your employees think of CR? and that’s a really important source of income in people as you introduce new mobile Do they understand it, and is it important developing countries. We’re working with internet services? to them? Citigroup on a new service enabling people to We are opening up the true internet experience These issues are very important to employees send money via their mobile phone – making it to Vodafone customers – giving them access to although they may not talk about them under easier and quicker. It is now being tested in the sites like MySpace and YouTube. This is a great the heading ‘CR’. Our people expect us to UK and Kenya, and we hope it will enable more business opportunity for us and something engage with social issues and show leadership. people to share in the benefits of globalisation. They are passionate about our brand and we expect to be very popular with customers. reputation, and would be very upset if we were But we need to do this responsibly and ensure ever seen to compromise our standards. that child protection remains a priority. I’m frequently approached by employees with We are currently a leader in this area and need questions and ideas on CR issues. to ensure that any new online services live up to our standards. We would like to know what you think about our progress and plans. Please email your feedback, praise or criticism to [email protected]. This report covers our activities in the UK. To find out more about our worldwide responsibility programme, please see the Vodafone Group Corporate Responsibility Report 2006/07 available at www.vodafone.com/responsibility. We work hard to make sure We report progress to the UK senior management In 2006/07, this included: team every month and to Vodafone Group • Induction training on our business values, everyone at Vodafone quarterly. The Vodafone UK CR team meets available for new employees through an understands and implements regularly with the Group CR Director. CR interactive e-learning programme managers from all Vodafone operating companies • Regular CR features on our intranet site and our values. attend a global CR conference twice a year to responses to press coverage of Vodafone share best practice. • CR targets being built into the performance dialogues and personal objectives of all Our vision and values See www.vodafone.co.uk/responsibility line managers Being a responsible business is one of our six for more information. strategic goals. We have established performance • Regular CR campaigns, eg 225 employees indicators and commitments on key CR issues to attended a special screening of Al Gore’s climate help us to achieve this goal. These are included Materiality change documentary, ‘An Inconvenient Truth’ on page 30 and throughout this report. CR covers a very wide range of issues. We • Encouraging employees to volunteer their manage and report our progress on the issues of time to charity through the Let’s Give! website. most significance and relevance to our business We assess our progress on embedding CR CR management and to our stakeholders. CR issues and strategy are managed at both through our employee survey. In 2006/07, 71% Group and operating company level. Vodafone Group has determined the most of employees said they had clear opportunities material issues for the Group through extensive to be socially and environmentally responsible Vodafone Group stakeholder engagement. In addition, we use the at work, compared with 76% in 2005/06. We will Vodafone Group sets policies and goals to drive following sources of information and our undertake focus groups to gain a better improvements across all Vodafone companies. knowledge of our business to set priorities for understanding in this area. We have set a target Some CR issues are also managed at Group level, Vodafone in the UK: to raise awareness and increase employee for example supply chain standards. • Stakeholder feedback involvement in appropriate CR activities. Vodafone UK • Media coverage Vodafone UK implements Group strategies, • CR-related enquiries and comments from taking into account UK-specific issues and local customers and other stakeholders stakeholder needs. We also set UK CR policies, • Discussions with Vodafone Group targets and key performance indicators. • The assurance process for our CR report. CR is managed within our four business functions: consumer, enterprise, technology Embedding CR and support.