• Act responsibly. Enable sustainability.
  • 2015 Corporate Responsibility Report
2015 Corporate Responsibility Report

2015 audit results

Content verified by PwCicon_check

A total of 62 social audits, 7 on direct and 55 on indirect suppliers of Deutsche Telekom, were conducted in 2015 through the auditing program set up and managed at Group level. As in previous years, our activities were focused on suppliers in Asia, particularly China and a few neighboring countries such as Singapore, Malaysia and Vietnam. We also conducted social audits in Mexico, the UK and Eastern Europe.

Audited suppliers included manufacturers in the areas of IT hardware, ‑software and ‑services as well as networks and devices. The audits did not find any cases of corruption or bribery nor any critical violations of compliance policies or the right to intellectual property.

Content verified by PwCicon_check
Legend: Area (Number of violations)
Content verified by PwCicon_check

We do not audit all of our suppliers (over 30,000) equally but instead focus on strategically important or high-risk supplier groups. We focus on roughly 200 suppliers that are regularly audited at least every three years. The majority of these audits take place within the context of the Joint Audit Cooperation (JAC).

A total of 661 violations of Deutsche Telekom supplier requirements were identified during the audits conducted in 2015, 17 of which were unacceptable incidents. The audits conducted at 49 suppliers resulted in critical findings – 197 individual cases in total. Click here for some examples of unacceptable and critical violations and the improvement measures introduced.

305 of the identified violations (52 of which were critical) were remedied by the end of 2015. The improvement measures had not yet been effectively concluded in the other cases. Most of the violations related to occupational health and safety (44 percent), a five percentage point decrease compared to 2014. The number of corporate ethics violations increased considerably in contrast (from 6.6 to 16 percent). This can particularly be attributed to inadequate CR management and, especially with regard to procedures and policies, risk assessment, ‑risk monitoring, reporting and training. These are all important in ensuring responsible supplier management, which is why we will be focusing on these aspects more intently in coming years. Environment came in third at 12 percent compared to 10 percent in 2014, followed by working hours at 11 percent compared to 12.6 percent in 2014.

CR report from the previous year

Content verified by PwCicon_check
Area   Findings at suppliers   Initiated improvements
Corporate ethics  

Lack of procedures for preventing corruption:
Bribery and corruption were not included in the risk assessments conducted by suppliers;
suppliers neither did not know how to deal with conflict minerals nor documented their way of handling

  Defining a procedure for dealing with bribery and corruption and integrating this procedure into the risk assessment;
reporting at least once a year on procedure implementation;
raising awareness of conflict minerals through internal and external training and approving an agreement on the topic
Discrimination   "Physical flexibility" was used as an evaluation criterion for promotion, thereby potentially discriminating against other employees (e.g., people with disabilities).   Removing the criterion from the employee assessment form
Environmental protection  

Waste water results such as chemical oxygen requirements, tin and sulfide exceeded local target values;
lack of waste water treatment in soldering and polishing

  Setting up the required waste water treatment equipment
  No environmental impact testing for construction projects   Conducting environmental impact testing in compliance with law and regulations
  Insufficient monitoring or reporting of waste management and waste storage   Improving waste reporting to identify sources and disposal sites
Forced labor   Packaging activities outsourced to workers outside of Germany who have to pay one month's wages as a sign-up fee in violation of the supplier's policy   Introducing appropriate, effective policies and procedures to make sure that every form of forced labor, debt bondage and forced prisoner labor (including human trade and slavery) is prevented
 

Workers without working permits employed in the wake of outsourcing;
temporary work agreements not in line with the work actually being performed and pay roll figures

  Introducing appropriate, effective policies and procedures to make sure that every form of forced labor, debt bondage and forced prisoner labor (including human trade and slavery) is prevented
  Employer keeping ID cards submitted by temporary workers   Making sure that employee ID cards are not kept by contractors, employment agencies or employers
Occupational health and safety   Standard lamps instead of anti-explosion lighting in a storage facility for hazardous waste   Installation of key systems and equipment for inspection, surveillance, explosion protection and other critical safety topics
  Storage area with large amounts of hazardous chemicals such as methanol and alkali situated in the production area;
violation of Chinese regulations regarding safe handling of dangerous chemicals
 

Inspection of chemicals and their storage:
placing hazardous materials in a class A chemical storage facility;
separate storage of hazardous materials according to different categories;
daily inspection of chemical status and storage

  Violation of Chinese regulations regarding fire protection and prevention in buildings   Adjustment of height of fire extinguishers
  Unsuitable exits in the production area;
emergency exits blocked by products;
emergency doors hard to open
  Making sure that suitable, easy-to-open exits that are not blocked are available in all areas (measures completed)
 

No fire safety license for chemical storage facility;
no building permit for production building

  Obtaining relevant permits before commencement of operations
  No conductor protection in hazardous waste storage facility   Installing protective equipment
  Placing flammable chemicals in the assembly lines without suitable process management;
collecting chemical residue in a container for non-hazardous waste, collection not separate;
alcohol containers also being used for waste water without indication of new usage
  Making sure that there is proof of compliance with regulations regarding secure management of hazardous chemicals (measures completed)
Wages & salaries  

No adequate pay for overtime on public holidays;
base pay for some employees below local minimum wage

  Pay for all employees in compliance with local laws
Working hours​​​​​​​   Overtime exceeds limit specified by law and SA8000   Creating a medium and long-term plan to gradually come into compliance with legal requirements
I'm interested in learning more about Deutsche Telekom's activities in the area of...