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2011 audit results.

Measures launched after discovery of violations of supplier requirements.
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Through audit programs set up and steered at Group level, we conducted 27 social audits of Deutsche Telekom's direct and indirect suppliers in 2011. We particularly focused our social audit activities on suppliers located in Asia. However, we also conducted social audits in Latin America and Eastern Europe. T-HT Hvratski Telekom conducted an additional five social audits of its suppliers in 2011. Their results have not been included in the list below.

At a glance: 2011 audit results.

Results and measures for improvement.

In 2011, a total of 27 audits were conducted by external and internal auditors. Fifteen of these audits were conducted as part of the Joint Audit Cooperation (JAC). The suppliers audited included producers from the areas of network infrastructure, fixed-line and mobile devices, office supplies and service uniforms.

We did not find any cases of corruption. However, we identified material weak points and considerable need for improvement particularly in the following areas:

Some of the findings came from third parties, for example from the Joint Audit Cooperation (JAC). We found violations against Telekom supplier requirements in a total of 57 cases, 16 of which must be considered critical. Based on these findings, measures were immediately introduced to improve conditions on site.

CR Report from the previous year

Work and ethics.

Topic	Key findings	Measures and improvements made
Working hours	The audits revealed that a lot of overtime had been carried out. Employees at one production site were scheduled to work 20 days in a row.	A system for automatically recording working hours and providing information to the executive management in compliance with SA 8000 requirements was introduced. A mandatory day off after seven working days was introduced.
Wages and benefits	Immigrant workers were paid different wages than domestic workers. Overtime was not paid in accordance with legal regulations.	Equal pay was specified for native and immigrant workers. Payment of the legal minimum wage was introduced for regular work and overtime.
Child labor	Adolescents were working the night shift.	From now on adolescents will only be employed to handle light-stress jobs and are not allowed to work night shifts or overtime. Regular checks will be carried out to ensure that supervisors comply with the protective measures and adolescents will be asked about the situation on a regular basis.
Discrimination	Female employees had to undergo a pregnancy test before being hired.	Pregnancy tests are no longer being conducted before a female employee is hired.

Environment, health and safety.

Topic		Key findings		Measures and improvements made
Environment		There was no certified environmental management system in production. Suppliers of products involving an increased environmental risk were not being requested to provide environmental certificates.		ISO14001 certification has now been achieved. Mandatory environmental certification was introduced for suppliers of products involving an increased environmental risk.
Occupational health and safety		Risks at the workplace that could lead to accidents, injury or work-related illnesses were not being reviewed. There were no safety specifications for chemicals. There were no informational or training measures on occupational health and safety.		Work processes and stations are now being regularly inspected and documented in consideration of risk factors. All safety specifications for chemicals and hazardous goods are being reviewed and updated. Employees receive regularly training in occupational health and safety measures.

Corporate ethics.

Topic		Key findings		Measures and improvements made
Corporate ethics		Suppliers were not required to comply with ecological, social and ethical standards.		Mandatory environmental and social standards for suppliers were introduced, including regular assessments.