Social performance indicators.

Indicator Reference Status

Social performance indicators: Labor practices and decent work

LA1 Workforce by employment type and region icon
LA3 Benefits to full-time employees icon
LA4 Employees with collective bargaining agreements icon

Human Resources Report, p. 32 f.

In Germany Telekom has agreed most of the conditions of employment for its employees with its employee representatives on the basis of collective bargaining. There are exceptions for senior executives and a few small companies not covered by collective agreements. Internationally, Telekom aligns itself to the participatory culture of the relevant country. This means there is a diverse landscape of collective bargaining agreements in the various international Group companies. The responsibility for the negotiating and signing collective agreements lies with the management of the relevant national company.
Around 79,900 of 121,600 employees with permanent employment contracts were covered by collective agreements in 2011. This is a share of 66 percent.

LA5 Minimum notice period(s) regarding operational changes icon

Human Resources Report, p. 61, p. 32 f.

In the case of significant operational changes, the relevant works councils are informed and involved according to the legally applicable provisions such as the German Works Constitution Act.
In addition, there is a regular exchange with the employee representatives, both on the national and international level. We established a Global Employee Relations Management (ERM) unit at Group level in 2010. It provides guidance and promotes an exchange of experiences for building the diverse employee relationships in various countries. It is also a central contact for all international employee and employer committees and the labor unions.

LA6 Workforce represented in joint health and safety committees icon

Telekom has various committees on occupational safety and health involving both employee and employer representatives.

LA7 Occupational diseases, lost days, and number of fatalities icon
LA8 Training on serious diseases icon

Health management
Human Resources Report, p. 34.

By setting up universal standards and guidelines throughout the Group, we anchored this key topic firmly in our company and management structures as early as 2007. Employees can utilize advisory and training services, as well as preventive medical check-ups, as part of our health management.

LA9 Trade union agreements on health and safety icon

Industrial safety issues are also addressed in negotiations with the employee representatives.

LA10 Training per employee icon

In 2011, our employees received on average 36 hours of training.
A breakdown by employee category is not relevant for Telekom as the training and development offers are open to all employees equally.

LA12 Regular performance and career development reviews icon

HR development
Cultural change
Human Resources Report, p. 38.

From 2008 to 2011, all employee groups that take part in the target agreement process received a variable salary component based among other things on their service performance. For all senior executives, service targets are part of the medium to long-term, pay-related targets (variable pay). Since 2012 other employees in service functions have received the variable remuneration based on service performance.
 
Percentage of employees who receive regular performance assessments: performance and career development review indicators
All employees = 81.5 percent
Senior executives = 100 percent
Employees outside the collective bargaining system = 84.4 percent

Development planning:
All employees = 85.4 percent
Senior executives = not yet available
Employees outside the collective bargaining system = 78.4 percent; due to recent introduction for this target group

LA14 Gender pay disparity icon

Remuneration

In harmony with our Group-wide Diversity Policy, remuneration at Telekom is not gender-related.

Social performance indicators: Human rights

HR2 Supplier screening on human rights icon
HR3 Training on human rights icon

Compliance
Supplier selection

Within the framework of our sustainable procurement strategy, we offer training courses for procurement managers and joint workshops with suppliers. The new e-learning tool in the CR area will also introduce CR and the associated human rights issues to a wide range of employees.

Intranet-based e-learning programs are also available to all employees in Compliance Management. These are supplemented by risk-specific on-site training.
Quantitative information on this indicator is not available at present as the majority of training programs are completed on a self-study basis on the intranet.

HR4 Incidents of discrimination icon

There was no confirmed incident of discrimination in the reporting period.

The Code of Conduct and the Group-wide Diversity Policy ban discrimination on the basis of gender, age, disability, ethnic origin, religious beliefs and sexual orientation. The "Tell me!" portal was set up as an inbox to submit information regarding violations of the codex, in case discrimination occurs despite the standardized processes.

HR5 Freedom of association and collective bargaining icon

We are not aware of any incidents of this nature.

Deutsche Telekom recognizes the fundamental right to freedom of association and the right to collective bargaining within the scope of national regulations and existing agreements. These basic rights form an integral part of the Social Charter , are binding for the entire Group, and must be confirmed in writing annually by the Group companies.

Employee involvement

HR6 Child labor icon

2011 audit results
Work and ethics

We work to counter risks relating to child labor by auditing selected strategic and particularly high-risk suppliers.

HR7 Forced labor icon

2011 audit results
Work and ethics

We address risks regarding forced labor through audits of strategically selected and especially risk prone suppliers.

HR8 Training for security personnel icon

As a global player, we insist that all our companies and all our suppliers around the world comply with internationally accepted social standards.
We have committed ourselves to this policy in our Social Charter , which is a constituent of the Telekom Code of Conduct. We check for compliance on an annual basis, holding audits in the form of declarations of compliance issued by the management of individual Group units.

HR9 Violations of rights of indigenous people icon

This indicator is not relevant to Telekom.

Social Performance Indicators: Society

SO1 Impacts on communities icon

Stakeholder involvement
Risk and opportunities management
Mobile communications and health
Basics for product development and product design
Climate and environmentally friendly products and services
Research and Innovation
Annual Report 2011 > Risk and opportunities management

Telekom employs an integrated risk and opportunity management system to systematically leverage its opportunities without losing sight of the related risks. This system not only considers legal and financial aspects, but also social and environmental risks.
As part of its risk management, Telekom aims to allay concerns in the general public by means of an objective, scientifically sound and transparent information policy, both at the beginning and at the end of a business initiative.
Telekom is the only company in the world, for example, that has an international policy on electromagnetic fields (EMF) for its mobile communications segment, which sets out minimum standards for information campaigns, transparency, participation and the promotion of research.

SO2 Corruption risks icon

The systematic prevention of white-collar crime is a top priority at Telekom. Compliance with legislation in this area is a requirement that applies to the entire Group, in all countries and to every member of staff. Any emerging fraud risks are systematically analyzed and any cases are documented.
We conducted compliance risk assessments with a special view to corruption risks for 97 of 238 fully consolidated companies during the reporting period. This corresponds to a rate of 40.76 percent. It should be noted that this rate is based on the number of all companies.  However, many of the companies that were not assessed are not operational or are very small companies so that the rate based on revenue or the number of employees is much higher.

SO3 Anti-corruption training icon

The Compliance department kicked off 2008 with an extensive anti-corruption campaign, which was also rolled out internationally in 2009.

The target groups include all members of the Group Board of Management and their direct reports, upper management levels in all Group companies, and departments and functional units selected on the basis of risk exposure.
The training covers laws and regulations applicable in the individual countries. In some countries, we have already trained trainers who can handle the transfer of knowledge within the Group companies.

Data collection has not yet been implemented Group-wide so that the percentage of employees trained in anti-corruption policies and processes cannot be stated for the time being.

SO4 Actions taken in response to incidents of corruption icon

Strategy and management

In order to be able to intervene quickly when corruption is suspected, we have set up contacts in all organizational units and publicize these in a suitable manner.
Potential breaches of internal guidelines, laws or codes of conduct can be reported via the entry portal “Tell me!.” All stakeholder groups — employees, business partners, customers, shareholders and other stakeholders — can approach us via this portal, anonymously if preferred.

SO6 Donations to political parties and politicians icon

It is of paramount concern to Telekom that its relationships with political decision-makers should be characterized by transparency and trust. This also extends to our refusal to support the work of any political party with donations.

SO7 Legal actions for anticompetitive behavior icon
SO8 Sanctions for non-compliance with laws and regulations icon

Social performance indicators: Product responsibility

PR2 Non-compliance with health and safety standards icon

Annual Report 2011

Currently, Group Headquarters is not aware of any significant violation of health standards.

PR4 Non-compliance with product information standards icon

Annual Report 2011

Currently, Group Headquarters is not aware of any significant violation of health standards.

PR5 Customer satisfaction icon
PR6 Marketing communication standards icon

Our commitment to protecting our consumers is based on our Code of Conduct, which was adopted in 2007. It also applies to all of Telekom's sales partners.

Standards for advertising are devised at the national level, in particular by means of self-regulation by the advertising industry, and therefore vary greatly from country to country. Telekom complies fully with all the legal and self-regulatory rules in the telecommunications industry in all company units. This concerns in particular the protection of children and young people and compliance with data protection. Telekom and its international subsidiaries have made major contributions to the development of two global, voluntary commitments by the industry: (a) the GSMA Code of Conduct against Mobile Spam of 2006 and (b) the GSMA Mobile Advertising Program.

PR7 Non-compliance with marketing communication standards icon
PR8 Complaints regarding customer privacyicon
PR9 Sanctions for non-compliance with product and service related regulationsicon

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