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Analysis of Vodafone Group PLC Sustainability ReportAnalysis of Vodafone Group PLC Sustainability Report
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Submitted By: Archana Ashar Deeksha Nigam Jay Karan Singh Chadha Richa Pandey Shwetank Sharma Vinay Arun NMIMS Batch 2011-2013 Submitted to: Prof. Sujata Mukherjee
TTable of Contents
1) Executive Summary ................................................................................................... 43 2) Methodology.............................................................................................................. 54 3) Introduction to Vodafone Group PLC ....................................................................... 65 4) Key Highlights of Vodafone Group PLC 2011 Sustainability report ....................... 76 5) Stakeholders............................................................................................................... 87 6) Triple Bottom Line Approach ................................................................................. 109 i) ii) iii) Social Indicators................................................................................................... 109 Environmental Indicators ............................................................................... 1211 Economic Indicators....................................................................................... 1312
7) Addressing the Challenges Faced .......................................................................... 1413 8) Corporate Governance Design............................................................................... 1514 9) Key Learning and Recommendation ..................................................................... 1817 10) References .......................................................................................................... 1918 1) Executive Summary ..................................................................................................... 3 2) Methodology................................................................................................................ 4 3) Introduction to Vodafone Group PLC ......................................................................... 5 4) Key Highlights of Vodafone Group PLC 2011 Sustainability report ......................... 6 5) Stakeholders................................................................................................................. 7 6) Triple Bottom Line Approach ..................................................................................... 9 i) ii) iii) Social Indicators....................................................................................................... 9 Environmental Indicators ................................................................................... 11 Economic Indicators........................................................................................... 12
7) Addressing the Challenges Faced .............................................................................. 12 8) Corporate Governance Design................................................................................... 13 9) Key Learning and Recommendation ......................................................................... 17 10) References .............................................................................................................. 18
1) Executive Summary
This report outlines the actions, processes and strategies adopted towards corporate social responsibility adopted by Vodafone Group PLC. It starts with the methodology used to analyze Vodafone Sustainability Report 20102011, gives a brief introduction on the company followed by the analysis of the CSR activities as well as the Corporate Governance Strategies of the company. To conclude, the key learning and recommendations are covered.
2) Methodology
This section outlines the methodology used to analyze the company. a) Stakeholder Theory The stakeholder view of strategy is an instrumental theory of the corporation, integrating both the resource-based view as well as the market-based view, and adding a socio-political level. This view of the firm is used to define the specific stakeholders of a corporation as well as examine the conditions under which these parties should be treated as stakeholders. b) Triple Bottom Line Approach The triple bottom line: economic, ethical and environmental bottom line evaluates a corporations performance according to a summary of the economic, social and environmental value the corporation adds. The narrowest meaning of the term is - a framework for measuring and reporting corporate performance against economic, social and environmental indicators. This includes clarifying the corporations purpose and taking into consideration all stakeholders. c) Corporate Governance Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. An important theme of corporate governance is the nature and extent of accountability of particular individuals in the organization.
Vodafone is developing innovative solutions which deliver a triple bottom line: meeting critical societal needs, enabling more efficient use of resources with less waste, and doing better business in the process. Vodafone has won the Best Report award for three years in a row 2008-2010. In 2011 it was awarded the Best carbon disclosure report (not eligible for Best Report award after winning three years running)
5) Stakeholders
Vodafone lists specific stakeholder groups and reports on specific issues raised by them and how these were addressed. 2010-2011 Stakeholder Matrix
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Vodafones Engagement Vodafone meets with investors regularly through events, conference calls and one-to-one meetings to understand their concerns about sustainability risks and help identify potential future issues. Vodafone consults with experts on a wide range of issues to gain feedback about their policies and inform strategy about sustainability. Vodafone consults with NGOs when their campaign or focus is relevant to the business. They do this by organizing face-to-face meetings and meeting representatives at sustainability events. Engagement with consumers is through retail outlets, contact centers and customer research.
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Industry
Communities
Vodafone consults the local community to help them address thetheir concerns they may have with Vodafone networks and practices. Vodafone engages with regulators and governments on a wide range of issues relevant to business and contributes to consultations on sustainability issues. Vodafone gains feedback from employees through Global People Survey and informal internal communication channels and regular meetings Vodafone works closely with its suppliers to ensure they maintain high standards by conducting assessments and holding workshops to help them improve. It also collaborates with key network suppliers to help them cut climate impacts by improving the energy efficiency of their operations
Government
Employees
Suppliers
People
Maintain high ethical standards in their own operations and those of their suppliers Ensure the safety of their employees and contractors Treat their employees fairly and help them develop their talent
Planet
Minimise environmental impacts from their operations and products Communicate transparently with communities and the public on network deployment and mobiles, masts and health, and comply with national and international guidelines on exposure to radio frequency fields
Profit
Earn the trust of customers by safeguarding privacy, promoting child safety online, offering accessible products and services, and ensuring pricing is clear, and marketing and mobile advertising is responsible
i) Social Indicators
(a) Empowering Women
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Vodafones Al Johara program enables Qatari women to learn entrepreneurial skills and earn a living by selling Vodafone products and services to their communities. In India, they support women in self-help groups by training them to become Vodafone retailers, providing finance management tools and offering information about health, hygiene and social issues via mobile. (b) M-Pesa Initiative M-Pesa enables people in emerging markets to send money to their families and pay for goods or services via their mobile phones. It is cheaper than wiring 10
Analysis of Vodafone Group PLC Sustainability Report 2010-2011 money, safer than carrying or sending cash, and combats the potential for corruption along the way. (c) Access to Medicine In emerging markets, Vodafone is using mobile to improve access to medicine by, for example, tracking and managing the supply of drugs to make sure they go where they are most needed. Vodafones Mobile Relationship Manager Service, used to manage supplies of malaria drugs, and is the first mHealth solution to be scaled up commercially on a national scale across Tanzania. (d) Mobile Payments to farmers Mobile payment solutions are helping farmers to obtain quick, secure payments for produce and save for seed, fertilizer or against unexpected risks. Vodafones services for farmers in Ghana, India and Turkey offer features such as weather alerts and up-to-date information on crop prices from local markets. More than 280,000 people in Turkey have signed up. (e) Code of Conduct Code of Conduct, rolled out in 2010/11, guides employees on how to implement these in practice and they have a duty to report any suspected breaches. In anticipation of the UK Bribery Act, due to come into force in July 2011, Vodafone also reviewed and reinforced anti-bribery programme with training to be rolled out across the Group. (f) Privacy Vodafone works closely with industry bodies, technical standards organizations, and application platforms and developers to set standards and create guidelines that can help build privacy into the design of new mobile applications, products and services however they may evolve in the future. Privacy by design is one of the seven Privacy Commitments Vodafone established in 2010/11. (g) Responsibilities towards Employees Engaging and Developing Employees through engagement activities in embedding The Vodafone Way the way they expect the employees to work together through a series of workshops, now completed by senior leaders across the Group. Employees define goals and identify development opportunities as part of annual Performance Dialogues with their managers, and Vodafone invested over 55 million in training in 2010/11. Their global leadership development programme for high-potential managers, Inspire, is now in its fourth year and 124 managers have completed the programme. (h) Promoting diversity and inclusion Vodafone aims to promote inclusive working policies and raise awareness among leaders as part of their global diversity and inclusion strategy. Its approach is tailored to meet the needs of each local market, but a priority across the Group is to improve gender balance within the teams and to increase the number of 11
Analysis of Vodafone Group PLC Sustainability Report 2010-2011 women in management. Over 250 of top senior leaders in 18 markets have now been trained on the business benefits of diversity, with a further 10 inclusive leadership workshops held in 2010/11.
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a) How does the team Achieve sustainability? The Group Executive Committee (ExCo) is responsible for Vodafones sustainability performance and receives a formal update on sustainability each year. A report is also made annually to the Vodafone Group Plc. Board. The Group Chief Executive has ultimate accountability for Vodafones sustainability performance. The Group Sustainability Director reports to the Group Director External Affairs (an ExCo member) and heads a team of experts who provide guidance and coordination to the managers and issue owners who implement sustainability initiatives. The chief executives of individual local markets have overall responsibility for sustainability and the Group Sustainability Director regularly meets members of their executive teams. Regular formal meetings are held with the regional CEOs and chief officers of key Group functions. The Group Sustainability team runs monthly teleconferences and annual global workshops for sustainability managers and issue owners from all the local markets to share best practices, ensure consistency across the business and drive progress towards
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Analysis of Vodafone Group PLC Sustainability Report 2010-2011 their strategic objectives. Innovation workshops aim to promote new thinking on specific issues. b) What is the role of the Board?
Hhas final responsibility for the management, direction and performance of the businesses Iis required to exercise objective judgment on all corporate matters independent from executive management Iis accountable to shareholders for the proper conduct of the business Iis responsible for ensuring the effectiveness of and reporting on the system of corporate governance c) The Board has a formal schedule of matters reserved to it for its decision and these include:
Group strategy and long-term plans Major capital projects, acquisitions or divestments Annual budget and operating plan Group financial structure, including tax and treasury Annual and half-year financial results and shareholder communications System of internal control and risk management Senior management structure, responsibilities and succession plans
d) Board meetings The Board meets at least eight times a year and the meetings are structured to allow open discussion. All directors participate in discussing strategy, trading and financial performance and risk management. Directors unable to attend a Board meeting because of another engagement are nevertheless provided with all the information relevant for such meetings and are able to discuss issues arising in the meeting with the Chairman or the Chief Executive. e) Appointments to the Board There is a formal, rigorous and transparent procedure for the appointment of new directors to the Board. Candidates are identified and selected on merit against objective criteria and with due regard to the benefits of diversity on the Board, including gender. f) Information and professional development From time to time the Board receives detailed presentations from non-Board members on matters of significance. Financial plans, including budgets and forecasts, are regularly discussed at Board meetings. The non-executive directors periodically visit different parts of the Group and are provided with briefings and information to assist them in performing their duties.
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Analysis of Vodafone Group PLC Sustainability Report 2010-2011 The Chairman is responsible for ensuring that induction and training programs are provided and the Company Secretary organizes the programs. The Board is confident that all its members have the knowledge, ability and experience to perform the functions required of a director of a listed company. g) Performance evaluation Performance evaluation of the Board, its committees and individual directors takes place on an annual basis. This year the Board undertook a formal self-evaluation of its own performance. The process was led by the Chairman and included a review of the administration of the Board and its committees covering the operation of the Board and its committees, agendas, reports and information produced for their consideration. Using questionnaires completed by all directors, the Chairman produced a report on Board performance which was sent to and considered by the Nominations and Governance Committee before being discussed with the Board members at a Board meeting. h) Re-election of directors Although not required by the articles of association, in the interests of good corporate governance the directors have resolved that, subject to the recommendation of the Nominations and Governance Committee, they will all submit themselves for re-election at each AGM. i) Independent advice The Board recognizes that there may be occasions when one or more of the directors feels it is necessary to take independent legal and/or financial advice at the Companys expense. There is an agreed procedure to enable them to do so. j) Stakeholder Engagement The feedback received from external stakeholders informs Vodafones judgment about sustainability priorities for business and helps to form an appropriate sustainability strategy.
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References
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