the world around us · 2020-02-06 · the world around us. they also embody our commitment to the...

The world around us

Vodafone Group Plc

Corporate Social Responsibility Report 2001-02

VOD584 CSR Document A/W 8 17.06.02 3:36 pm

Contents1 Vision and Values:

Statement by Chief Executive

2 Snapshot of CSR Progress

3 Introduction to Key CSR Issues

4 CSR and Our Business Principles

6 CSR Governance and Responsibility

7 Delivering Our Values: Statement by Group Chief Operating Officer

8 Delivering Our Values: Society

12 Delivering Our Values: Environment

15 Delivering Our Values: Economy

18 Delivering Our Values:Employment/Training/Health and Safety

20 Summary of Objectives and Commitments

Further Information

Vodafone Group Plc is determined to achieve the highest standards ofcorporate social responsibility (CSR). To us, CSR encompasses our totalimpact as a company in three main areas - society, environment andeconomy. This, our second report on CSR, summarises our progress on thecommitments we made last year and outlines our plans for the future.

As a world leader in telecommunications we are committed tocommunicating effectively and comprehensively. In addition to this report,we have also launched dedicated CSR web pages –www.vodafone.com/responsibility. This expands on the information inthis document and will be updated regularly with news and case studies.

Vodafone at a Glance

• As at 31 March 2002, we served over 101 million proportionate customers in 28 countries across five continents. Including all of the customers served byVodafone’s subsidiaries and associate networks, we helped connect over 229million customers. This is the equivalent of one in every four mobile phone usersworldwide – an unrivalled global presence in mobile telecommunications.

• The Vodafone Group contains 16 cellular network operators where Vodafone hasmore than 50% direct equity interest and in which we have direct control overgovernance and management. There are also 12 companies in which Vodafoneholds an equity stake. All Vodafone Group policies, principles and guidelines onCSR apply directly to our subsidiaries and we actively encourage our associatesto join us in developing and promoting a strong position on CSR.

The information on the Vodafone Group contained in this report relates toVodafone Group Plc and its subsidiaries unless otherwise stated.


that is beginning to happen with reference tomeasurable achievements. We have made realprogress and, most importantly, we have put in placethe structures, mechanisms and patterns ofbehaviour that will deliver much more over time.

We have no intention of standing still. Ours is a dynamic business and our vision for the VodafoneGroup is one of constant improvement. Ourenthusiastic commitment to CSR, reflected in thisreport, is no less ambitious.

Sir Chistopher GentChief Executive

Throughout Vodafone there is a deep passion for what we do and how we do it.

Our shared vision is to be the world’s mobilecommunications leader – enriching customerslives, helping individuals, businesses andcommunities be more connected in a mobile world.

Vision and ValuesStatement by Sir Christopher Gent, Chief Executive

Sir Christopher Gent and Julian Horn-Smithcome face to face with Vodafone people at a

‘Passion for Vodafone’ Roadshow.

Our vision has guided us consistently during the pastfive years of the company’s remarkable growth. It isunderpinned by core values that define what we areas a business and how we behave as individualemployees. With all the uncertainties and challengescurrently facing multinational businesses theseshared values help us to retain our focus andconsolidate our strengths.

Over the past 12 months we have refined andarticulated these core values more clearly than everbefore. They have become Vodafone’s ‘four passions’– for customers, for results, for our people, and forthe world around us. They also embody ourcommitment to the goals of CSR. Delivering themmeans maximising the benefits that mobiletelecommunications can bring while minimising anynegative impacts. Our corporate value of Passionfor the World Around Us, in particular, expressesour belief in the positive contribution we have tooffer - a contribution with a potential undreamt ofeven 20 years ago.

The global reach of Vodafone’s technologies andservices brings real value to people’s lives. As thisreport demonstrates, it is also delivering wider

social, environmental and economic benefits. Indoing so, we are returning value to the company.For example, if the Vodafone Group minimises itsenvironmental impact it will achieve efficiencieswhich will help cut our costs; and by instituting aCSR management system it means we will be ableto manage environmental and social risks that much better.

The message of our Vision and Values, which GroupChief Operating Officer Julian Horn-Smith and I havepersonally delivered throughout the Vodafone Group,has received an impressively enthusiastic responsefrom our people. From Newbury to Milan to Sydneythey have shown their determination to deliver valueto the company and to the world around us in realand practical ways. In this they are beingencouraged and helped by one of many significantdevelopments of the past year – our global CSRnetwork. It is made up of key individuals who arenow actively championing the CSR agenda in everyone of our subsidiary operations.

This time last year, I said that we were determined touse Vodafone’s success as a force for good. In this,our second report on CSR, we can demonstrate how

Vodafone Group PlcThe World Around UsVision and Values: Statement by Sir Christopher Gent, Chief Executive 1


Vodafone Group Plc The World Around Us Section Title In Here2 Vodafone Group Plc Snapshot of CSR Progress

Snapshot of CSR Progress

Environment• Review of key impacts – first set

of Vodafone Group baseline data

• Established basis for setting keyperformance indicators

• Strategic partnerships andstakeholder engagement – VodafoneGroup joined World Business Councilfor Sustainable Development,Global e-Sustainability Initiative and Business in the Community

Economy• Initial review of ‘cash value added’

distribution

• Acknowledgement of importance ofDigital Divide issue through VodafoneGroup involvement in Digital Europeresearch project

• Global employee share ownershipexpanded

Workplace Health and Safety• Appointment of Director of Group

Health and Safety

• Health and Safety initiativesimplemented across Vodafone Group subsidiaries

• In this report, we record our progress on CSR issues and set out ourobjectives. We also set out Vodafone Group data, much of which will provide a basis for quantitative targets and performance goals for future reporting.

We’re moving forward...

• £9.3m voluntary contributionsto community programmes

• 800 employees involved incommunity projects

• € 7 million committed forresearch into health and radiofrequencies

• Networks comprise 67,000base stations

• 1,800 million kWh electricalenergy used acrosssubsidiaries

• Of all energy consumed,80% is used by networkinfrastructure, the remainder byoffices and shops

• Global emissions ofapproximately 1 million tonnes carbon dioxidethroughout the Vodafone Group

• 310 tonnes of handsetsreturned, mostly for re-use or recycling

• £22.5 billion revenuegenerated of which £16.8billion is distributed in taxes,salaries, dividends, interest and to the many thousands ofsuppliers who work withVodafone

• Vodafone Group listed in FTSE4Good and the Dow Jones Sustainability Index

Data HighlightsFor the financial year ended 31 March 2002,and for Vodafone subsidiaries only.

CSR Management and Governance• Launch of core internal value –

Passion for the World Around Us

• Business Principles published

• Global CSR network established, twoglobal workshops held and an expandedcentral team dedicated to CSR

• CSR integrated into Vodafone Group riskmanagement process

• Commenced engagement on CSR withkey suppliers and partners

Society• Group Foundation established

• Policy on Social Investment published

• Review of key policies across Vodafonesubsidiaries – from communications onhealth concerns to handset theft

• Independent research into radiofrequencies and health supported

• Major additional investment in supportof independent research into radiofrequency (RF) and health in UK andGermany

• Policy on independent radio frequencyfield monitoring established

• Active support for initiatives for mobilehandset manufacturers to publishSpecific Absorption Rate (SAR) levels

• Engagement with Governments toensure best possible regulatoryframework on RF is in place andimplemented promptly


Vodafone Group PlcThe World Around UsIntroduction to Key CSR Issues 3

Introduction toKey CSR Issues

Vodafone is a leading provider of mobile communications network services for all types of business, contract and non-contract customers. Our core operational areas are theprovision of network services, the development and management of infrastructure,IT systems and support, customer services and retail outlets.

Over the past year, through extensive internalconsultation with Vodafone Group subsidiaries andassociates, we have identified key Vodafone GroupCSR issues on which we will concentrate. These areshown schematically below.

This is not an exhaustive or exclusive summary of keyCSR issues. We will continue to review these internallyand externally with all our stakeholders.

Throughout this report, we introduce our objectives.In the Summary of Objectives and Commitmentssection on page 20, we set out specificcommitments.


Vodafone Group Plc The World Around Us4 CSR and Our Business Principles

Vodafone’s Vision and Values demonstrate our commitment to CSR – to attain the higheststandards on social, environmental and ethical issues. Our Passion for the World Around Ussets the framework for CSR performance in a global context, supporting our brand and buildingsustainable business practice as we deliver the full potential of mobile communications.

CSR and Our Business Principles

Value CreationWe believe that competition in amarket economy, pursued in anethical way, is the best way ofdelivering benefits to ourstakeholders.

We are committed to providing thebest possible return for ourshareholders.

The criteria for our investmentdecisions, acquisitions and businessrelationships will be primarilyeconomic but they will also includesocial and environmentalconsiderations.

Public PolicyWe will voice our opinions ongovernment proposals and othermatters that may affect ourstakeholders but we will not makegifts or donations to political partiesor intervene in party political matters.

CommunicationsWe will communicate openly andtransparently with all of ourstakeholders within the bounds ofcommercial confidentiality.

CustomersWe are committed to providing ourcustomers with safe, reliable productsand services that represent goodvalue for money.

We will work to understand,anticipate and respond to the needsof our customers and to provide themwith innovative products andservices.

We value the trust our customersplace in us and will safeguard theinformation provided to us inaccordance with relevant laws.

Employees Relationships with and betweenemployees are based upon respectfor individuals and their human rights.

We will pursue equality of opportunityand diversity throughout employmentpolicies.

We will encourage our employees toreach their full potential throughtraining and development.

We will promote employeeparticipation in share incentive plans.

54321

This year, we have developed a new Social Responsibility section withinwww.vodafone.com/responsibility to communicate on CSR issues.We are using the web to disclose more information than is possible withina printed report. Our aim is to make the information interesting to ageneral audience with news, comment and features.

In 2001, Vodafone coverage near Galashiels in the Scottish Borders wentdown. Since the site was snowbound and isolated area, Les Weddell, abase station engineer, could not access the site initially. But with approvalgiven, he waded uphill, off-track, for seven miles through waist-highsnowdrifts to reach the site. Once the site was accessed, Les identifiedthe problem and restored service before retracing his steps.

His efforts were recognised in the first series of Local Hero posters whichexemplify the four corporate values.


Vodafone Group PlcThe World Around UsCSR and Our Business Principles 5

Our Vision and Values are at the heart of Vodafoneas we move from being a portfolio of nationalbusinesses to an integrated multinationalorganisation. Performance against these values isnow being incorporated into work programmesthroughout the Vodafone Group. In the coming year,we will also be assessing each individual’scontribution to living the values.

Instrumental in helping to turn our values - forcustomers, for results, for our people as well as forthe world around us – into corporate behaviour has

been the introduction of Vodafone Group BusinessPrinciples. This was an important commitment madein last year’s CSR Report and was introduced earlierthis year throughout the Vodafone Group.

These Business Principles define our relationshipswith all our stakeholders - shareholders, employees,customers, business partners and suppliers,communities, governments and regulators.They also guide the business decisions that affectsociety and the environment. They are beingimplemented locally by Vodafone subsidiary

companies so that every employee in the VodafoneGroup understands what is expected both of thecompany and of the individual.

We expect to be judged on whether we live up tothese principles. We have undertaken a formalassessment of this through our business riskidentification process. All Chief Executive Officers ofour subsidiaries are personally committed toimplementing these principles. We will also promoteexamples of local good practice throughout theVodafone Group and with our key suppliers.

Individual ConductWe expect all our employees to actwith honesty, integrity and fairness.No form of bribery, including improperoffers or payments to or fromemployees, will be tolerated.All employees are expected to avoidany contacts that might lead to, orsuggest, a conflict of interest betweentheir personal activities and thebusiness of Vodafone.All employees are expected to avoidaccepting hospitality or gifts thatmight appear to place them under anobligation.

EnvironmentWe are committed to sustainablebusiness practices and environmentalprotection.We will use finite resources carefully.We will promote the use ofoperational practices that reduce theenvironmental burden associated withour activities.We will support innovativedevelopments in products andservices that can offer environmentaland social benefits.

Communities and SocietyWe accept our responsibility toengage with communities and we willinvest in society in a way that makeseffective use of our resources,including support for charitableorganisations.

Health and SafetyWe are committed to the health andsafety of our customers, employeesand the communities in which weoperate.We will disclose any information thatcomes to our knowledge whichclearly demonstrates that any of ourproducts or services breachinternationally accepted safetystandards or guidelines.

Business Partners and SuppliersWe will pursue mutually beneficialrelationships with our businesspartners and suppliers.We will seek to promote theapplication of our Business Principles by our business partners andsuppliers.

109876

For full Business Principles document seewww.vodafone.com/responsibility

Air conditioning facilities are an integral part of mobile switching centres,being necessary to prevent computer hardware and other electricalequipment from overheating. This air conditioning also has an energydemand derived from compressors and ventilators required to produce andcirculate cool air respectively. Engineering experts in Vodafone Germanyhave successfully cut this energy demand by increasing the use of ‘freeflow cooling’, a process that exploits the cooling energy potential of airoutside the switching centre. Over a four year period, the amount of timeusing free air-cooling has been increased from 25% to 77%, greatlyreducing the running time for compressors.

Vodafone Omnitel in Italy, in collaboration with the Association of BloodDonors Friends of Milan Polyclinic, has launched a service whereby over16,000 voluntary, registered blood donors are alerted to blood donorsessions in their area in the Milan region. The hospital can send out anSMS to donors registered on its database through the Vodafone Omnitelshort message centre, direct to donors’ handsets, regardless of whichoperator they use and free of charge. Confirmation of successful deliveryof the SMS is given to the hospital. Donors will shortly be able to confirmtheir attendance by sending an SMS by return.


Vodafone Group Plc The World Around Us CSR Governance and Responsibility6

Management StructuresA cornerstone of our approach has been thedevelopment of an internal governance and reportingstructure, centred around two Group committees –the Group Policy Committee and the GroupOperational Review Committee. These committeesare chaired, respectively, by the Chief Executive andthe Group Chief Operating Officer, with membersdrawn from among the most senior management inVodafone. Between them they address both policyand strategy issues, including risk management, aswell as ensuring delivery at the operational level.

The CSR team based in the Group headquarters has,over the past 12 months, established a network ofsome 80 CSR representatives in Vodafone

subsidiaries all over the world. This global networkmeets regularly to shape and drive the CSRprogramme for the Vodafone Group. Over time, thenetwork will become the knowledge base for CSRthroughout the Vodafone Group, identifying andpromoting best practice, sharing perspectives on keyissues, and bringing strong operational experience tobear as specific CSR initiatives are brought forwardfrom the higher level Group committees.

As well as reporting to and supporting these twoGroup committees, an ongoing objective of the CSRteam is to build awareness and commitment to CSRin the workforce.

See Summary of Objectives and Commitmentson page 20.

CSR Governance and Responsibility

Vodafone’s commitment to CSR is characterised by strong leadership and robust but flexible management structures and systems.

GROUP OPERATIONAL REVIEW COMMITTEE GROUP POLICY COMMITTEE

WORLD AROUND US STEERING COMMITTEE

MONTHLY REVIEWSTWICE YEARLY REPORT TO

GORC & GPC

CSR TEAM

VODAFONE GROUP PLC BOARD

Management SystemsOur goal is to build, by the end of 2003, a VodafoneGroup CSR management system that reflectsVodafone’s organisational structure and provides theframework for measurable performance on CSR.Significant progress has been made this year inlaying the foundations for this system. In addition tothe Business Principles, Group CSR reportingtemplates have been developed by the CSR networkto measure and report key environmental and socialimpacts in a consistent way. Some of the datagathered so far is presented in subsequent sectionsof this report.

A proprietary web-based data collection tool hasalso been identified (called ENVOY) and will bepiloted as a means of gathering CSR data andallowing both the Group CSR team and the Vodafonesubsidiary participants to view relevant information.This system will be assessed for its application as atool to manage CSR information at the VodafoneGroup level.

Vodafone’s global CSR management system will setthe overall direction and parameters for CSRperformance while retaining operational flexibility fordelivery at local level. This will be in keeping with ourapproach to all areas of our business – sharing avision, setting common standards, but allowingVodafone people who understand local context and local needs the freedom to deliver their Passion for the World Around Us.

Four Vodafone Group subsidiaries already haveISO14001 and others will be reviewing andassessing the contribution that this managementstandard might have for their own operations.


Vodafone Group PlcThe World Around UsDelivering Our Values: Statement by Julian Horn-Smith, Group Chief Operating Officer 7

We also believe that our mobile telecommunicationsinfrastructure has unique potential to deliver widersocial, environmental and economic benefits. As theVodafone Group consolidates under a global brand,centred around our Vision and Values, we aredetermined to grow in ways that are economicallysustainable, yet compatible with our commitment toCSR. The following sections report on how we areputting our commitment into action; we are nowready to move forward with initiatives that will deliver

measurable results. By the end of 2003, I envisagethat our subsidiaries will be systematically managingthe impact of their businesses on the world aroundthem and be engaged in making important socialand environmental contributions.

On the following pages we introduce our CSRprogramme and set out the goals we aim to achieve.At the end of this report we introduce specificcommitments, many of which will be the basis onwhich quantifiable targets are set in the coming

years. Having established the cornerstone of our

CSR programme, we look forward to reporting on

our progress in the future.

Julian Horn-SmithGroup Chief Operating Officer

Delivering Our ValuesStatement by Julian Horn-Smith,

Group Chief Operating Officer

VISION GOVERNANCE STRUCTURE

SUBSIDIARIES'MANAGEMENTSYSTEMS

BUSINESS PRINCIPLES

VALUES GROUP POLICIESBUSINESS PRACTICES & BEHAVIOURS

VISION AND VALUES ACTION

Vodafone has been an influential pioneer in deliveringmobile telecommunications to the mass market. Weconstantly strive to provide our customers with new servicesand applications that offer imaginative solutions to thechallenges of living and working in the modern world.


Vodafone Group Plc The World Around Us Delivering Our Values: Society8

Delivering Our Values: Society

Vodafone Group inevitably has an impact on the societies in which it operates. That is why weare committed to acting responsibly by engaging with, and investing in, local communities.By making effective use of our resources, we believe we can add value, develop newopportunities and, ultimately, make a positive difference to the World Around Us.

Social InvestmentIn last year’s CSR report, we committed to developing acorporate community investment programme to reflectthe ambitions and values of our business. This year, wepublished a Vodafone Group Social Investment Policy andlaunched The Vodafone Group Foundation in late 2001.

Vodafone’s social investment policy is:

• At the heart of our business. Vodafone’s commitment to thecommunity flows from our core values and principles. To us, socialinvestment is not an add-on to business activities but is at theheart of how we engage with the communities where ourcustomers, employees, investors and suppliers live. It is:

• Global in scope, local in focus

• Consistent, clear and accountable

• More than just financial contributions

• Based on our areas of expertise

Our social investment will focus primarily on:

• Reaching the excluded. We believe the benefits ofdevelopments in mobile telecommunications should be shared aswidely as possible. We want to help remove the barriers thatprevent people from participating fully in society and will supportprogrammes that seek to improve access to mobile technology by:

• Developing skills. We want people of all ages to have theopportunity to acquire the skills that will allow them to usenew technologies.

• Including those with special needs. We want to supportadaptations of technology to meet the needs of those withphysical and mental disabilities.

• Reaching out. We want to extend the benefits of mobiletechnology to communities worldwide, in countries where weoperate and in those that have not yet shared in ourtechnological developments.

The Vodafone-US Foundation together with the VodafoneUK Charitable Trust contributed $1 million to the LibertyDisaster Relief Fund of the American Red Cross to helpvictims of September 11th and other disasters.

In the United States, our Foundation completed its first yearas the renamed Vodafone-US Foundation. With a vision of,“Helping People Help Themselves,” and a renewed focuson families, children and youth, the Foundation distributedgrants totalling over $1.3 million.

The Vodafone Telecel Foundation in Portugal is supportingInternet access at a youth centre in Dili, East Timor.

The Fr. Antonio Veira Youth Centre is a joint projectbetween the 12 November Association and the Companyof Jesus and Movjovem, which provides study facilitiesand organises occupational training courses, usinginformation technology to support its activities.

It is open to the whole community and in particular to youngTimorese to help their personal development and enablethem to play a part in the reconstruction of their country.

The agreement to provide support for the Internet accesswas signed by both the CEO of Vodafone Portugal and theChairman of the Vodafone Telecel Foundation.


Vodafone Group PlcThe World Around UsDelivering Our Values: Society 9

Selected Partnerships During 2001• Vodafone joined the Global e-Sustainability Initiative (GeSI).

This global project promotes sustainable business practices with the support of the United Nations EnvironmentProgramme and the International Telecommunications Union.For further information see www.gesi.org

• As a member of Business in the Community, we are committed to developing business and communityexcellence. For further information see www.bitc.org.uk

We will also support programmes that attempt to increaseaccessibility or that make creative use of our technology in theareas of arts and culture, community health, education andemployability.

• Promoting sustainable business practice andenvironmental protection. We want to help protect the naturalenvironment, globally and in the communities where we operate.We also want to support programmes that use our technology tohelp solve environmental problems.

• Supporting the personal involvement of our employees intheir local communities. We believe that our employees are ourstrongest link with local communities. We want to support theirvoluntary efforts to improve those communities.

Within this framework, local Foundations and communityprogrammes will retain the flexibility to identify and respond to themost local pressing needs and interests.

• Dedicated to continuous improvement. We are committed toaccurate measurement and reporting of the value of socialinvestment, the benefits it generates for communities and thecompany and its longer-term effectiveness in meeting communityneeds. We will consult with our stakeholders and communitypartners on how we can improve our social investmentperformance. Vodafone will encourage suppliers to developappropriate programmes of social investment. We will regularlyrethink and adapt our approach as we aspire to be at the leadingedge of corporate social investment.

For full text see www.vodafone.com/responsibility

The Vodafone UK Foundation flagship project, YouthNet,has received £3 million. YouthNet provides access tounbiased information, help and advice for young peoplethrough www.TheSite.org so that they can make informedchoices for themselves. The funding has facilitated:

• 1.2 million PIs (page impressions) per month on theweb site - 300% over target in the first 8 months

• Development of a National Youth Census, the first of itskind in the UK, which will collate young people’s attitudestowards issues such as health, sex, work and careers

• Launch of TheSite.org internet kiosks (Surf-it)-designedto take free internet access to young people through amix of drop-in centres and commercial venues

• Launch of the first e_bus> which provides free mobileaccess to the internet. It will visit places and eventswhere large numbers of people congregate.

Canteen, a New Zealand charity for teenage cancersufferers, recently received a NZ$1 million donationfrom Vodafone New Zealand to mark the company’sone millionth customer in New Zealand. The funds willbe used for education and recreation programmes.

The money was donated after the New Zealand publicwas asked to nominate five favourite charities.Vodafone New Zealand customers competed for thechance to choose the charity from the top five byentering the Million Dollar Question competition,answering five questions via a text message or entry form.

More than 85,000 votes were cast for the top fivecharities. The runners up shared more than NZ$11,000raised by the text voting and each charity received10,000 minutes of free Vodafone airtime.

Stakeholder EngagementA key component in the development of Vodafone`sCSR strategy, and one of our main commitmentsfrom last year, has been our continuing engagementwith stakeholders. This has been open and two wayand has seen significant consultation both externallyand internally across the Vodafone Group. We havebeen actively involved in public policy forums – forexample, through the appointment of our Director ofCorporate Responsibility to the UK Government bodythat advises on environmental issues connected withthe development of consumer products.

We have developed partnerships with organisationssuch as Forum for the Future and Fauna & FloraInternational, leading non-government organisationsin sustainable development and conservationrespectively.

This year, we have also joined the World BusinessCouncil for Sustainable Development, a coalition of160 companies with a shared commitment tosustainable development through economic growth,environmental protection and social progress. Thiswill provide an opportunity to work with otherorganisations on relevant projects and to exchangelearning and best practice. We have also joined theGlobal e-Sustainability Initiative and Business in theCommunity (see above). Through organisations likethese we can contribute to important projects, suchas the ongoing development of the Global ReportingInitiative, putting us in a position to assess accuratelytheir relevance and application to our ownprogrammes.

Through a range of activities, during 2002-03,including the launch of our new CSR website, we willbuild on such relationships, ensuring that thedevelopment of Vodafone’s attitudes and practiceson CSR are well-informed and soundly based.



Vodafone Group Plc The World Around Us Delivering Our Values: Society10

£9.33m

£2.48m

Voluntary Community Contributions

Licence Conditions Contributions

Total Community Contributions 2001-02

Regional Distribution of Community Contributions* £ Million

Northern Europe, Middle East and Africa 6.66Southern Europe 3.11Central Europe 0.47Americas/Asia 1.20Pacific 0.37Total 11.81*These groupings reflect the Vodafone organisational structure

The Vodafone GroupFoundationThe Vodafone Group Foundation is driven by aPassion for the World Around Us.The Foundation, operated from the UK, makesinvestments that help people of the world to havefuller lives by:

• Sharing the benefits of developments in mobilecommunications technology as widely as possible

• Protecting the natural environment and supportingsustainable business practices

• Supporting the local communities in whichVodafone’s customers, employees, investors andsuppliers live.

Many organisations have already benefited from thecontributions made by the Vodafone-US Foundationand the local foundations of Vodafone Groupsubsidiaries in Portugal, Spain and the UK. Vodacom,our associate network in South Africa, also has awell-established foundation. These local foundationswill work with the Vodafone Group Foundation tomaximise the impact of our social investment.

Other Vodafone Group subsidiaries are in theprocess of establishing foundations to formalise theircommitment to community involvement.

During 2001-02, Vodafone Group gave £9.33 millionin voluntary community contributions to a wide range of community projects and programmes.An additional £2.48 million was contributed tocommunities as part of our licence conditions.In 2002-03, the funding for the new Vodafone GroupFoundation alone will be £10 million. An initialreview indicates that over 800 Vodafone Groupemployees are already involved in community projects.

We are also committed to developing and measuringthe quality of our social investment programme. Wehave started to apply the London Benchmarking Groupmodel which measures the benefits of contributionsmade to communities over and above cash donations(see opposite).


Employee InvolvementProgrammeA key expression of our Passion for the WorldAround Us is the development of our employeeinvolvement programme. Vodafone UK is piloting aprogramme to increase employee participationsubstantially during 2002-03. As part of thisprogramme, a network of World Around Uschampions has recently been appointed in the UK.The concept is to provide a model forimplementation across the Vodafone Group.

“Vodafone Group has been an active member ofthe LBG (London Benchmarking Group) for twoyears. The LBG has more than 65 leadingcompanies as members and one of its purposes isto ensure greater consistency and comparability inthe way businesses measure and report theircontributions to the community.

As the manager of the Group, we have workedwith Vodafone Group to review its understandingof the LBG model and its application to the widerange of community programmes around theworld. Our aim has been to ensure that theevaluation principles are correctly and consistentlyapplied. We are satisfied that this has beenachieved. Our work has not been extended to an independent audit of the data presented in this report.

Vodafone Group companies make significantcontributions to local communities around theworld. The Vodafone Group has done acommendable job of measuring and reporting on

its global contributions for the first time. Thecompany has put in place a system for themanagement and measurement of contributionsto social projects that will include setting projectobjectives, providing guidance on evaluation,training operational managers and collatinginformation on the costs, leverage, communitybenefits and business rationale.

One notable challenge for Vodafone Group hasbeen to distinguish between purely voluntarycontributions and those which are mandatory inthat they are part of licence conditions in certainmarkets in which the company operates. Webelieve this aids comprehension about the truescale of contributions made to social projects.We commend the practice to other companiesoperating in regulated industries.”

Michael TuffreyThe Corporate Citizenship Companywww.corporate-citizenship.co.ukLondon May 2002

Working together

London Benchmarking Group Assurance Statement


Vodafone Group PlcThe World Around UsDelivering Our Values: Society 11

Addressing Health ConcernsVodafone Group is committed to providinginformation to stakeholders in a clear and open wayon health concerns associated with the use ofhandsets and radio base stations; to developing aconsultative approach with local communities inbuilding its networks around the world; and to fundingindependent research into the radio frequencyemissions from both handsets and radio base stations.

Vodafone’s subsidiaries provide information in avariety of ways: through printed literature, viawebsites and/or through face to face meetings withstakeholders. During 2002, we will issue a VodafoneGroup document which will cover health and otherconcerns. This will be made publicly available in bothprint and at www.vodafone.com

Vodafone supports initiatives for mobile handsetmanufacturers to publish Specific Absorption Rate(SAR) values of their models.

It is also our objective to review marketing policiesand practices from a CSR perspective.


Liaison with Local CommunitiesAcross the Vodafone Group there is regularmonitoring of base stations’ radio frequency emissionlevels by independent bodies. Information is madeavailable to the public through the planning processfor new base stations and, in some cases, throughdedicated websites. Following the success ofVodafone Omnitel’s pioneering ‘Cassiopea’ project indelivering information on radio frequency (RF)emissions from its base stations in Catania, Sicily, tothe public via local press and community websites,the Italian Government, with the support of localenvironmental agencies, municipalities and Italianoperators are to implement a nationwide RFmonitoring network.

In Australia, the public can access a GovernmentAgency website (www.arpansa.gov.au) wheremeasurements of emissions from the base stationsof all network operators are posted.

In conjunction with the other mobile communicationsnetwork operators, Vodafone in the UK hasimplemented the industry’s Ten Commitments tobest practice in base station siting, in response tothe UK Government’s Independent Expert Group onMobile Phones Enquiry (The Stewart Report) intomobile phones, masts and health.

Where possible, we use innovative radio base stationdesigns to minimise visual impact. Working with oursite acquisition and design agents as well as localplanners, we are helping to develop networkinfrastructure which minimises visual intrusion whilemeeting stringent performance standards.

Group Funding of Research andDevelopment on Electromagnetic Fields (EMF)

The World Health Organisation (WHO) maintains itsopinion (stated in June 2000) that “None of the mostrecent reviews have concluded that exposure to theRadio Frequency (RF) fields from mobile phones ortheir base stations causes any adverse healthconsequences” (WHO Fact Sheet 193). However, ithas identified the need for further research to betterassess health risks. (www.who.int)

During the course of the past year the VodafoneGroup has updated its policy on funding of researchinto Electromagnetic Fields (EMF). Vodafone believesresearch is best conducted by independent expertsand has established a funding framework fornational, regional and international researchprogrammes.

Vodafone Group Research and Development hascommitted € 7 million on EMF research programmesand projects already completed, currently underwayor to be undertaken between 1999 and 2007.The Vodafone Group provides funding to the WHOInternational EMF Project (www.who.int) andcontributes to national research organisations, suchas the German Research Association for RadioApplications (Forschungsgemeinschaft Funk).

Participation in joint Government/industry fundedEMF research programmes is also undertaken. Forexample, Vodafone Group is providing over £0.5million of the £3.68 million industry funding share ofthe LINK Mobile Telecommunications and HealthResearch Programme in the UK.(www.mthr.org.uk). The Vodafone Group alsocontributes funding to other research projects inorder to advance the global scientific knowledge base.

A WHO summary of worldwide EMF research can befound at www.who.int/emf

Security of HandsetsTackling mobile phone crime has received highprofile coverage in the UK recently and is anemerging issue in other Vodafone subsidiaries.Initiatives adopted in the UK, including investing intechnology to track and disable stolen phones andexchanging blacklists between operators, will bereviewed with all Vodafone Group companies with aview to creating a global stolen phone database bythe end of 2003.


Disabled and ElderlyCustomersVodafone seeks to provide value to its customersthrough reliable and innovative products and services.In particular, the advent of pre-pay mobile serviceshas brought affordable telephony within reach ofconsumers who were previously not well served.

Vodafone in the UK is now developing a range ofcomplementary products and approaches fordisabled and elderly customers, especially those whoare deaf or with poor hearing, blind, with poor sightor who have poor grip or limited manual dexterity.

These are significant and growing markets for theVodafone Group and we are committed to servingthem thoughtfully and sensitively – customising ourservices, offering a suitable selection of handsetsand trying to ensure that access to our websites isas easy as possible. The Vodafone Group’s intentionis to broaden this approach throughout itssubsidiaries.

As an example, at www.vodafone.co.uk, underprice plans and products, there is a sectioncontaining information on a range of handsets fordisabled and elderly customers as well as specialbundled voice and messaging price plans.

A brochure in statutory large print and in braille isalso available (see below).


Delivering Our Values: Environment

A central pillar of Vodafone’s Passion for the World Around Us and of our approach to CSR is our concern for the environment. One of our Business Principles is a commitment tosustainable business practices and environmental protection throughout our operations.

Data Gathering and ReportingVodafone Group subsidiaries and some of ourassociates have worked together to define aconsistent reporting framework for environmentaldata, allowing us to quantify our baseline performance,identify areas of existing good practice, and set thecontext for demonstrating target-based performance.

For the first time, we have Vodafone Groupenvironmental data extending across oursubsidiaries’ customer base.

For some subsidiaries, the provision of data was aroutine exercise but for others this has been a newtask. Therefore, on a Vodafone Group level, theoverall data quality is mixed. Vodafone’s objective isto have a robust and transparent basis for reportingperformance improvements. Work is required toimprove the data quality.


Based on this first year’s data, we are able to definesome of our key environmental impacts. These aresummarised as follows:-

Energy and Climate ChangeEnergy use and the associated generation ofgreenhouse gases is one of Vodafone Group’s mostsignificant environmental impacts. Data collected thisyear from the subsidiaries indicates that VodafoneGroup used approximately 1,800 million kWh ofelectrical energy to run its network and offices.Thisequates to the annual energy requirement ofapproximately 110,000 UK households.

Approximately 80% of this energy is used to operatethe telecommunications network, the remainderbeing used to run our offices and call centres. Thisamount of energy use represents some 0.98 milliontonnes of carbon dioxide (CO2), most of theseemissions being made by electricity suppliers at thepoint of electrical energy generation (indirectemissions). We also make direct emissions of CO2through fuel consumption in our vehicles and fromdiesel generators that provide stand-by energy forthe network. Our initial estimates for these directsources of CO2 indicate an additional 70,000 tonnesof emissions.

It is possible to examine our energy efficiency in anumber of ways; the insert diagram presentsaverage kilograms of CO2 per minute of callstransmitted or received across the Vodafone Group.The range across the Group is highly variableaccording to the configuration of the network andcall density. As new mobile technologies andservices emerge, we will continue to review energyconsumption patterns associated with ouroperations. Our objective is to improve the energyefficiency of our operations and reduce theassociated emissions of greenhouse gases.


An efficient mobile telecommunications network alsoneeds a back-up power supply. Typically, batterieskept in store or stand-by diesel generators providethis back-up, bringing additional environmentalmanagement issues. In order to help us addressthese across the Vodafone Group, the Vodafone R&Dteam in Germany earlier this year launched a projectto examine the environmental benefits that may comefrom alternative forms of power back-up (see above).

Vodafone Group Plc The World Around Us Delivering Our Values: Environment12

kWh

(milli

ons)

1,500

1,000

500

0

Total Electrical Energy Use

CO2 Emissions

CO2 (

,000

s to

nnes

)

1,000

800

600

400

200

0Indirect Direct

0.000

0.0020

0.0040

0.0060

0.0080

0.0100

0.0120

0.0140

0.0160

0.0180

Average =

0.009 kg/minute

Max

Min

Emissions of CO2 Per Minute of Network Calls*

Network Offices

kg/m

inut

e

We have made significantprogress on the environmentalcommitments we made last year.Our main achievements are:

• A comprehensive baselineassessment of environmentalperformance

• Group data that will allow usto identify and track KeyPerformance Indicators(KPIs), which we will reportagainst in future years.

*Data from indicative range of subsidiaries. Range varies according to the population density,network configuration and type of fuel used for electrical energy generation.

Energy Use Data 2001-02


Network Development andVisual ImpactsIn order to achieve good coverage for their servicesVodafone Group subsidiaries have installedapproximately 67,000 base stations to date. Many ofthese are on structures that are shared with otheroperators or placed on existing structures (such asbuildings or electricity pylons). For example, inGermany and the Netherlands, our initial datasuggest that over 80% of the base stations are onexisting or shared structures. In many cases this canhelp reduce visual impact. The total of 67,000 alsoincludes micro-sites or smaller units that are oftenincorporated into street furniture or within buildings.

In a pilot programme, Vodafone Spain’s ProjectChameleon has developed a methodology to enablesystematic measurement of the perception of thevisual impact of its base stations in Barcelona. Eachbase station is scored against four factors: the typeof environment in which it is sited; the legalprotection given to that environment; the designmeasures required to integrate the antennas andmast into its environment; and the visibility of theaccompanying cabin which houses hardware. The

lower the score, the less the visual intrusion.

Following this pilot programme, the methodology willbe applied by Vodafone Spain across its network.

Vodafone Group is committed to responsible networkdevelopment, working closely with local communitiesand planning authorities to ensure that inappropriatevisual intrusion is avoided. This may include sharingthe installations with other operators where there areopportunities without compromising the quality ofour service.


Refrigerants and FireSuppressantsRefrigerants and fire suppressants perform a vitalrole in maintaining safe and efficient operationalconditions in Vodafone’s offices and networkbuildings. However, we recognise that certainproducts have a significant environmental impact:HFCs in terms of climate change; HCFCs and CFCs interms of ozone depletion. We are therefore committed

to responsible use and, where appropriate, tophasing out these substances. This process hasstarted with a comprehensive update of theinventory of refrigerants and fire suppressants heldin our operations. The insert diagram abovesummarises the typical range of refrigerants held inour networks.

The initial data indicates that approximately 160tonnes of refrigerants are held in the networkinventory, with an additional 17 tonnes in offices.The amount of fire suppressants held is estimated at450 tonnes (network) and 45 tonnes (offices).

We are committed to employing good practice inmanaging potentially harmful substances.


Vodafone Group PlcThe World Around UsDelivering Our Values: Environment 13

Green PowerVodafone Pilotentwicklung in Munich is currentlyundertaking an R&D Project, Green Power, to evaluate thesuitability of alternative fuel technologies for backup systemsin telecommunications cellsites. The initial focus is on fuelcells and photovoltaic elements (see picture left), both ofwhich are clean energy technologies that have becomemuch more efficient in recent years.

Currently, cellsites are equipped with batteries or generatorsusing diesel to maintain telecommunication services duringa power failure of the primary energy supply. Depending onthe type of backup system, service can be maintained forseveral hours before the primary power supply is needed toload up the battery again or the fuel tank of the generatorhas to be filled.

A key objective for Green Power is to show how Vodafonecan reduce the environmental impact of operating itstelecommunication networks. In addition, alternative energysources provide an opportunity to be independent of thelocal energy supply infrastructure, improving airtimeavailability and introducing the possibility of providingnetwork services in regions not served by the grid.

Types of Refrigerants Used in the Vodafone Group Network Buildings

69%12%

14%

3% 1% 1%

HCFC

HFC

CFC

CO2 and other

Ammonia

HC

A Vodafone Spain base stationsited close to Alfabia Gardensnear Soller (Mallorca). Theantennas and mast have beendesigned to simulate the outlineof a cactus with the cabinenclosed in a stone-cladstructure.

Refrigerants Data 2001-02


Vodafone Group Plc The World Around Us Delivering Our Values: Environment14

Waste ManagementThe Vodafone Group, like almost all businesses,creates waste material. Waste is generated by all ofour operations, from network engineering through tooffices and retail outlets. The preliminary dataindicates that total waste generated in the VodafoneGroup is around 18,000 tonnes, the majority of thisbeing classified as non-hazardous waste. To put thisinto context, this is roughly equivalent to the weightof household waste produced by 36,000 people inthe UK in 2000-01. The typical waste streams aresummarised in the insert diagram.

There are some excellent examples of re-use andrecycling in the Vodafone Group. In the UK, forexample, Vodafone’s network teams worked withShields Environmental Ltd. to re-use or recycle over97% of obsolete network infrastructure equipment.Looking forward, new legislation such as theproposed EU Waste Electrical and Electronic

Re-used (Handsets and Batteries)

Handsets Reycled (excluding batteries)

Batteries Recycled

Disposal

18975

3313 Figures are in tonnesNetworks

• Electrical Equipment (eg. redundant switches)

• Cables

• Metal (eg. antennas, ironwork supports)

• Wood

• Batteries

Offices, Call Centres andRetail Outlets• Paper

• Packaging material

• Redundant IT equipment

• Toners

• Waste packaging

• Canteen waste

Equipment Directive, will require organisations toexamine waste management issues for the completelife-cycle of products. It is our objective toprogressively increase the efficient use of materials.

Environmental ImprovementThrough Our Technology Beyond managing our own environmental impact wealso believe that our products and services offersignificant opportunities to reduce society’s pressureon the physical environment. Changes in travel,working practices and lifestyle which our technologymakes possible will have significant effects and weare determined that it should be harnessed todeliver positive change. To help us improve ourunderstanding of the issues involved we aredeveloping a range of partnerships andcollaborations.

One example - the result of working with partners inthe auto industry - is the launch of Ford Telematics,

a personal in-car assistant which offers a remoteoperator service, traffic information, emergency androadside assistance and a voice activated handset.

The traffic management system can help improvetraffic flows, thereby reducing emissions – especiallyfrom idling engines in traffic congestion.

Closer to home, we have already taken practicalsteps to make the most of our own technology at theGroup’s Headquarters in Newbury UK. By utilisingGPRS (General Packet Radio Service) we havedeveloped a travel system that will give employeesaccess, either through their PCs or mobiles, to realtime information on the company’s own shuttlebuses. The system will in future be sold as part ofour corporate portfolio under the name VoRTIS(Vodafone Real Time Information System).


Other Resources and MaterialsFor the first time Vodafone Group has estimated theamount of materials and resources used inadministration functions. For example, an estimated2,000 tonnes of paper are purchased across thesubsidiaries, some 1,400 tonnes of which arerecycled after use. Water use across the subsidiariesis estimated at 120,000 m3. Over 12,000 items ofelectronic equipment such as computers andprinters were either re-used or recycled. About halfof the estimated 35,000 toner cartridges that we

used last year were recycled. Local initiatives topromote the efficient and environmentally-preferreduse of materials and resources in offices will beencouraged as part of involving employees in ourPassion for the World Around Us.

Handset Reuse and RecyclingWe believe that environmental stewardship extendsbeyond the point of sale and, in four of oursubsidiaries, handset return schemes are operated.Over the last year, these four subsidiaries processed

See summary of Objectives and Commitmentson page 20.

Handset Reuse and Recycling Data 2001-02

310 tonnes of returned handsets, batteries andaccessories, 297 tonnes of which were re-used orrecycled. This equates to about 500,000 handsets.Over the next year, we are targeting the collection of500 tonnes.


Data relates to four Vodafone Group subsidiaries only.

Waste Management

Typical Waste Streams


Vodafone Group PlcThe World Around UsDelivering Our Values: Economy 15

Delivering Our Values: Economy

In a year when world economic conditions have been particularly challenging for thetelecommunications sector, Vodafone has continued to perform strongly, with renewed vigourand clarity of purpose. Throughout, our belief that mobile telecommunications can help deliversustainable growth for all our stakeholders has remained central to our corporate vision.

CustomersThe total income generated by our customersthrough the purchase of our products and servicesover the last year was £22.55 billion. Our customerbase is unrivalled among mobile operators and is thefoundation on which our economic success is built.Our strategy is to focus on high value customers,building revenue through the provision of productsand services that enrich their lives.

SuppliersOver the last year, Vodafone made payments of morethan £12 billion to our suppliers. These include themany thousands of small enterprises that workalongside our operations around the world, as wellas some of the global players in thetelecommunications sector. Within this network ofsuppliers, jobs are created and wealth is generated.

After payment to suppliers, income is distributedbetween five additional stakeholder groups:employees; shareholders; organisations that havemade loans to Vodafone; governments andregulators; and communities. The remainder isretained for further development of the business.

EmployeesThe average number of employees in VodafoneGroup over 2001-02 was 67,000. Our employeesare a significant recipient of cash expenditure,receiving a little under £2 billion in total. Furthersections of this report provide details of ouremployment policies and principles.

Shareholders This year, returns to shareholders in the form ofdividend payments amounted to some £1.06 billion.Dividend payments have been increasing insuccessive years for a total of 13 years, a trend thatreflects the sustained growth and economic successof the Vodafone Group since the early days of itsexistence.

LendersThis year, net interest payments of £852 millionwere made to lenders.

Governments and RegulatorsIn many of the countries where we operate,Vodafone pays governments and regulators inaccordance with local laws and regulations. This

includes taxes on the profits generated and otherforms of excise duty. In 2001-02, amounts paid togovernments and regulators totalled £545 million.

Community ContributionsOur voluntary donations to communities are detailedin earlier sections of this report. In total during2001-02, and including those payments made fromlocal Foundations set up as part of licenceconditions, our total community contributions amountto £11.8 million. This year we have launched TheVodafone Group Foundation to facilitate global andlocal contributions to community projects andprogrammes. The value generated by theseFoundations will be reported in future years.

Retained for Business GrowthThe technologies that drive the mobiletelecommunications sector are fast moving and anappropriate amount of capital is required to providethe network and services that will continue to delivervalue to customers. A significant proportion of capitalis therefore retained for business development. Thisyear, it amounts to £5.78 billion, or some 26% ofthe revenue generated.

Distribution of Revenue for Year 2001-02

Suppliers

Retained

Employees

Shareholder Dividends

Lenders

Governments and Regulators (Taxes Only)

Community Contributions

5,782

12,302

1,996

1,062

852545

11

Total Income £22.55 billion£ Millions

Our Annual Report and Accounts present a detailed examination of ourfinancial performance in accordance with statutory reportingrequirements. However, we believe it is also valuable to examine froma wider CSR perspective how our economic performance hasbenefited our stakeholders. One approach is to examine how thelevels of cash generated by the business revenue are distributed as apart of our day-to-day business activities. In brief, we can gauge oureconomic contribution by looking at the payments we make tosuppliers, the money we pay employees, taxes and other paymentsmade to governments, the interest paid on money that has beenborrowed, dividends we pay to our shareholders, and the contributionswe make to communities. The following data have been based oninformation presented in full in our Annual Report and Accounts.


Vodafone Group Plc The World Around Us Delivering Our Values: Economy16

Addressing the Digital DivideMobile telecommunications can bring economic andsocial benefits to both successful and emergingmarkets. It provides the infrastructure to enablesocieties to move towards sustainability throughoffering alternative ways to live and work.

One of the greatest challenges facing thetelecommunications sector is that often presented asthe Digital Divide – the uneven distribution of accessto the benefits of new communications technologiesand e-business.

Last year, we acknowledged that bridging the DigitalDivide would be one of the major economic andsocial challenges of the new century. This year,Vodafone Group has started to examine this in moredetail; and, through our involvement as a foundingpartner in the part EU-funded Digital Europe project,we hope to gain a better understanding of the realissues at stake.

A core element of Digital Europe will be a set ofcase studies exploring how each of its partnercompanies are using ICTs (Information andCommunication Technologies) to promote social andenvironmental sustainability. The project is co-ordinated by Forum For the Future (FFF), a non-governmental organisation which focuses onsustainable development. Digital Europe has threemain research areas: eco-efficiency and de-materialisation; social inclusion and sustainableregional development; e-business and corporatesocial responsibility. Vodafone has chosen the thirdarea for project support.

Digital Europe will research the role of mobiletelecommunications in promoting sustainable socialand economic development in eastern Europe, andwill survey the progress of the ‘mobile’ society. Inparticular, it will focus on the role of wireless as aleapfrog technology over conventional fixed line forbridging the ‘Digital Divide’.

Consultation has taken place with many areas of thetelecommunications industry in Poland and withthose interested in Poland’s social and economicdevelopment. Research will continue throughout2002 and will aim to help develop strategies toensure that mobile telecommunication is used to itsfull potential by individuals and businesses.

For further information see www.digital-eu.org

Developing Products and Services Global businesses need to ensure that they valueand build on their multinational and multiculturalstrength to benefit their customers, their employeesand their businesses.

With this in mind, Vodafone’s Global Products andServices (GP&S) team was set up in 2001 to identifyand drive the potential of the company’s internationalexpansion by managing a number of operationalareas on a global basis. Its initial focus is on Europe.

Emergency servicesrelied on mobilecommunicationsduring flooding ofRiver Tisza in north-east Hungary in 2001.

Reuters/Laszlo Balogh.


Selected Partnerships• The Vitamin-e network, an initiative which is facilitated by Forum for the Future, brings together

key stakeholders to explore the social and environmental opportunities that digital technologies createand generate practical ventures that use technology in new and exciting ways.For further information see www.vitamin-e.net

• The Prince of Wales International Business Leaders Forum focuses on building partnerships asa more effective and legitimate approach to engaging business in development.For further information see www.iblf.org

Vodafone Group PlcThe World Around UsDelivering Our Values: Economy 17

Sir Christopher Gent, Chief Executive, officiallyopens the Vodafone office in Beijing, China.

Led by the Chief Executive of GP&S, the teamharnesses the skills and expertise of Vodafone’ssubsidiaries to create global ways of working. Interms of product development, GP&S works withVodafone’s subsidiaries and business partners todevelop products and services which have globalappeal, make use of global technology platforms andenrich and enhance customers’ lives. Crucially,product offerings must be easy to use and of thehighest quality.

For example, Virtual Home Environment, launched in2001, gives customers the ease of use andseamless service they enjoy when they are in theirhome country. Fourteen Vodafone subsidiaries havenow integrated this service into their networks. Inaddition, e-wallet and micropayment products are inthe pipeline for 2002 and will enable customers,particularly those who do not have a credit card, tomake transactions via their handsets and encouragethe use of handsets beyond voice communication.

CSR Improvement ThroughWorking With SuppliersWe are committed to promoting our BusinessPrinciples throughout our supply chain, and there aregood examples of how some of Vodafone’ssubsidiaries have started doing this with localsuppliers. For example, in September 2001,Vodafone Australia introduced environmental criteriainto its procurement policy.

The UK supply chain management team, workingwith the CSR team, has been formulating amanagement tool that maps a common performanceagenda between Vodafone and its key suppliers.We believe this will form an excellent basis forestablishing work programmes on CSR issues.


Working With China Mobile(Hong Kong) Limited Vodafone has a small equity stake in China Mobile(Hong Kong) Limited and, in February 2001, bothcompanies signed a Strategic Alliance Agreementreflecting their intention to work together asstrategic partners.

As one element of this strategic alliance, Vodafoneand China Mobile (Hong Kong) Limited haveestablished a working group to identify and examineissues of common interest for both parties in theareas of economic development and corporateresponsibility. This working group will report to thesteering committee, established pursuant to thestrategic alliance, on areas where both parties canexchange knowledge and findings regarding specificissues relevant to our companies and our industry.


Vodafone Group Plc The World Around Us Delivering Our Values: Employment, Training, Health and Safety18

Delivering Our Values: Employment/Training/Health and Safety

Providing a safe working environment which fosters innovation and encourages employees to achievetheir full potential is crucial to Vodafone’s success – that is why Passion for Our People is also oneof our core values. Our Business Principles state that Vodafone Group companies “are committed tothe health and safety of our customers, employees and communities in which we operate.”

Human RightsOperating in different countries across fivecontinents, it is inevitable that Vodafone Groupemployees work within different frameworks ofnational employment legislation. Nevertheless,Vodafone Group is committed to protect and upholdbasic human rights by treating all employees withrespect. Part of that commitment is our support ofthe UN Universal Declaration of Human Rights(UNDHR) and the International Labour Organisations(ILO) Core Conventions.

Equality of OpportunityWe believe that each employee has a uniquecontribution to make to the success of the business.We have put in place policies and procedures toensure that all decisions about the appointment,treatment and advancement of employees are basedon merit.

Under the overall direction of the Group HumanResources Director we have established a set ofVodafone Group policies on human resource issues.These set out first principles, specifying minimumstandards and providing a framework for applicationand development locally throughout the VodafoneGroup. The policies ensure consistency in:

• equality of opportunity

• fair terms and conditions of employment

• employee involvement, communication and tradeunion recognition, and

• a code of conduct

Training and DevelopmentVodafone Group is also committed to offeringchallenging responsibilities and training anddevelopment opportunities to assist all employees todevelop their full potential.

A central example of this is the Global LeadershipProgramme (GLP) which identifies, early in theircareers, those managers whom it is felt have thepotential to fill key leadership roles in the future.The GLP covers all subsidiaries and associates ofVodafone and is designed to provide a structuredlearning path. It combines an MBA with variousforms of projects and assignments.

An important development during 2001-02 was theintroduction of the Vodafone Values and the BusinessPrinciples into training programmes across theGroup. As a result, social, environmental and ethicalissues will be increasingly addressed in training our staff.

For more information please go towww.glp.vodafone.com

Aver

age

Num

ber o

f Em

ploy

ees

(000

s)

2001 20020

10

20

30

40

50

60

70

80Northern Europe, Middle East and Africa

Central Europe

Southern Europe

America/Asia

Pacific

Employees - Vodafone Group Subsidiaries Employees – Regional Distribution


Vodafone Group PlcThe World Around UsDelivering Our Values: Employment, Training, Health and Safety 19

Share SchemesAlthough many companies grant share options totheir directors and senior managers, only a few haveoffered them to all employees - and fewer still to themajority of their employees worldwide.

However, right from the start Vodafone has beencommitted to providing share ownershipopportunities to its employees, enabling them tobecome part owners and to share in the success ofthe company. All UK based and some non-UK basedemployees have for many years had the opportunityto participate in different share plans. During 2001-02, we went one-step further and grantedoptions to all permanent employees in the majorityof our subsidiary companies. This option grant,named Global Employee Options, or GEM Options forshort, builds on the foundations of share purchaseand option plans that already exist in Vodafone andits listed subsidiary companies.

Due to the success of GEM Options in 2001, theCompany has decided to make a further GEM Optiongrant in 2002 to all employees of participatingcompanies, including those in the UK and US. It is

anticipated that this will cover over 55,000employees. As of 31 March 2002, about 85% ofVodafone Group employees either own or have anoption over Vodafone Group shares in VodafoneGroup companies.

The extension of the share plan globally wasrecognised by Vodafone being the joint recipient ofthe 2001 ProShare award for “Most SuccessfulInternational Expansion of Employee ShareOwnership”. (ProShare is an independent not-for-profit organisation which promotes wider shareownership and financial education).

Employee Involvement and CommunicationsThrough a number of key initiatives like theInternational Employee Communications Forum and Vodafone Group employee attitude surveys,Vodafone promotes an open and inclusive style ofmanagement with employees at all levels.

We are committed to monitoring and responding toemployee attitudes and opinion in order to enhance

our status as an employer. Employees are also freeto join trade unions or similar external representativeorganisations.

For 2001-02, the core activity of the Vodafone GroupInternal Communications team has been thedevelopment and implementation of Vodafone’sVision and Values throughout the Vodafone Group.A crucial part of this has been the personalchampionship by Sir Christopher Gent and JulianHorn-Smith, who have addressed over 25,000employees in 13 countries. In addition, a newVodafone Group quarterly magazine, a news-oriented, on-line intranet channel and a staffhandbook are being used to communicate theVodafone’s Group’s Vision and Values.

Vodafone Greecehas introduced a system ofmedical examinationscoupled with a preventivehealth intranet whichtackles issues of health,lifestyle and well-being,targeted towards the resultsof an employees’ healthsurvey.

Health and Safety has beenintegrated in its qualityassurance managementsystem which is externallycertified for BS 8800.

Vodafone UShas updated its health andsafety manual, including asection on violence – anincreasing concern for manycompanies worldwide. It hasalso held ergonomic trainingsessions to help people setup their workstationscorrectly. Vodafone US had ayear free from accidentscausing loss of time.

Vodafone Spain has introduced training insafe driving techniques,which it now plans toexpand. It has developed anew system of contractorcontrol to further ensure thesafety of contractor basedoperations.

Vodafone Irelandhas developed the capabilityto train in-house onconstruction safety withover 100 field and facilityemployees havingundergone the training tohold the SAFE PASSqualification.

Vodafone Omnitel in Italy has implemented ahealth and safetymanagement system, whichensures that everyemployee understands thecompany health and safetysystems and receivesspecific training targeted totheir own activities.

Vodafone Australia,Vodafone New Zealandand Vodafone Fijihave developed an online,interactive health and safetyinduction programme. Theyhave developed their healthand safety website to includepolicies, procedures andinstructions as well asforms for incident reportingand investigation.

In healthcare they havefocused a programme onwell-being for call centrestaff including health assess-ments, relaxation techniquesand information on how toachieve a healthy lifestyle.

Workplace Health and SafetyAs a responsible business and employer we take fullaccount of our health and safety obligations to ouremployees, our customers and the communities inwhich we operate. To ensure that we apply highstandards throughout the Vodafone Group eachsubsidiary has developed, implemented andcontinuously reviews a health and safetymanagement system, consistent with local operatingconditions and legislation. Each subsidiary reportsannually to the Board of Vodafone Group Plc onhealth and safety matters, and our Vodafone Grouphealth and safety policies are also audited annually

to ensure that they are keeping pace with best practice.

For 2001/02, all Vodafone subsidiaries were askedto report on the health and safety performance withspecific reference to the numbers of accidents atwork and time lost. We can report that there were nodeaths resulting from work accidents.

Although the incidence of accidents is low, we do, ofcourse, regard any accident as being one too many.We are fully committed to taking the necessaryaction to further reduce the already low levelsaround the Vodafone Group.

To meet our objective of continuously reviewing ourhealth and safety performance, we will develop and

implement a consistent, internal accident reportingstandard.


Occupational health in Vodafone’s call centres istaken very seriously. Across the Vodafone Group, weare committed to providing a good environment andinteresting work for all our call centre people. A goodexample is at Brindleyplace, the largest Vodafonecall centre in the UK, where there are opportunitiesto work across many disciplines - monitoring andmanaging the centre’s workflow, resource andforecasting, on the technical helpdesk and in training.

Examples of Workplace Health and Safety Improvements during 2001-02


Vodafone Group Plc The World Around Us Summary of Objectives and Commitments20

Summary of Objectives and Commitments

Issue Objective Commitment By When

Management A Group CSR management system. Build from data collected in 2001/02, selecting key performance End 2003System indicators that are directly relevant to our business. Other

commitments set out below provide components of a management system.

Involving Build awareness and commitment to CSR with Launch a specific communications programme on End 2002Employees employees and develop employee CSR and monitor employee awareness and commitment.

involvement strategy.

Develop CSR training material and incorporate this into March 2003existing corporate training modules.

Engaging Implement a comprehensive stakeholder Strengthen engagement with key partners and stakeholders and OngoingStakeholders engagement programme on CSR. contribute to business-led initiatives on sustainable development.

CSR Reporting Ensure that the information and data relating to Start a process of internal ‘peer’ review of CSR performance March 2003our CSR performance are comprehensive, between subsidiaries and report on findings.complete and accurate.

Social Investment Measure the social/environmental value Use the London Benchmarking Group model to report March 2003generated by the Group and subsidiaries’ on activities in 2002/03. This will provide a basis forFoundation activities. setting quantitative targets for 2003/04.

EMF and Network Establish greater transparency and access Ensure the public have up-to-date information on RF field strength March 2003Development to information on EMF and SAR for all in selected areas which have been independently determined.

our stakeholders. This will provide a basis for setting quantitative targets for 2003/04.

Issue a Vodafone Group document on health and other concerns. End 2002

Develop Vodafone Group standards on responsible network March 2003development.

Marketing Ensure consistent responsible marketing practices Produce responsible marketing policy document and March 2003across the Vodafone Group in relation to CSR issues. make it available to the public.

Implement training programme for retail staff. This will June 2003provide a basis for setting quantitative targets for 2003/04.

Security of Handsets Offer direct, practical assistance against mobile Create a global database of stolen phones. End 2003phone theft.

Products Promote products and services that bring social Identify and assess these market needs and opportunities March 2003and Services and environmental benefits. and review with a selection of independent stakeholders.

Energy Progressively improve the energy efficiency Complete an assessment of energy consumption in March 2003of our operations. our operations to identify best practice and set a basis

for quantitative targets by 2003/4.

Waste Progressively increase efficiency in the use of Complete an assessment of waste management in our operations March 2003materials and resources. to identify and promote best practice This will provide a basis for

setting quantitative targets for 2003/04.

Refrigerants and Employ good practice in managing environmentally Draw up and implement a time-scaled action plan to replace March 2003Fire Suppressants harmful substances. environmentally harmful refrigerants and fire suppressants

where effective and affordable alternatives exist.

Handsets and Employ best practice in managing the reuse Target 500 tonnes of handsets, batteries and accessories March 2003Accessories and recycling of our products. reused/recycled.

Suppliers Promote CSR best practice in our supply chain. Initiate and report on CSR related initiatives with three of March 2003our global supply partners.

Health and Safety Continuously review our health and safety Develop and implement an internal recording standard for, March 2003performance across the Vodafone Group. and reporting of, accidents across the Vodafone Group, to establish

a baseline for measuring future performance improvements.


“Telecommunications networks have a major role to play in progress towards a sustainablesociety. By connecting people and communities, mobile telephony has the potential to delivernew opportunities for more sustainable social and economic development.

Vodafone has grown massively in the recent past, and now represents the largest community ofmobile telephone users in the world. It has been a real challenge for the CSR team to beginunderstanding the full range of impacts and opportunities that Vodafone’s global businesscreates. This report is testament to the progress that has been made. While it is clear thatVodafone is only at the start of a long road, Forum for the Future welcomes the commitment totransforming Vodafone into a more sustainable business that is evident in these pages.”

Jonathon Porritt, Programme Director, Forum for the Future.

“We were asked by Vodafone Group Plc to read the report “The World Around Us” (“the Report”)and to provide our comments.

The Report covers a broad range of issues, spanning the “triple bottom line” of environmental,social and economic performance, along the Group’s value chain but has not set out to meet anyspecified corporate responsibility reporting guidelines. The Report makes a series of firmcommitments to improve the coverage and robustness of data reporting systems butacknowledges that performance data is incomplete and variable in quality. The informationrelating to the linkage of corporate social responsibility issues and corporate governancestructures and processes is particularly valuable and this area could be usefully explored in moredetail in future reports.

Whilst there are several areas where reporting can be strengthened, it represents a valuabledevelopment in communicating the Group’s values and commitments.

We were not asked to provide an assurance statement of any kind and we have not carried outany work in relation to the reliability of data or statements set out in the Report.”

Deloitte & Touche Environment and Sustainability Services Team, June 2002

We want to encourage the widest participation and would like to hear from you on any aspect ofthis report. Please send any comments or suggestions to our Corporate Responsibility Team [email protected], write to us at the address overleaf, or send us a fax.

We want to keep the environmental impact of the documents in our annual report package to a minimum. We havetherefore given careful consideration to the production process. The paper used was manufactured in the UK atmills with ISO14001 accreditation. It is 75% recycled from de-inked post consumer waste. This document wasprinted by The Beacon Press, which is accredited to ISO14001 environmental management system, using waterlesstechnology and inks which are vegetable based. By undertaking production on one site, further environmental savings in terms of transport and energy are achieved. All the steps we have taken demonstrate our commitment to makingsustainable choices.

Designed and produced by Barrett Howe Plc


Vodafone Group PlcThe Courtyard 2-4 London RoadNewbury, BerkshireRG14 1JXUnited KingdomRegistered in England No:1833679

Tel: +44 (0)1635 33251Fax: +44 (0)1635 674478Email: [email protected]

Printed in the United Kingdom


the world around us · 2020-02-06 · the world around us. they also embody our commitment to the...

Documents