Social performance indicators.

Indicator Reference Status

Social performance indicators: Labor practices and decent work

LA1 Workforce by employment type and region icon
LA2 Employee turnover icon

Telekom compiles data on natural fluctuation for Group Headquarters, the operating segments in Germany and Europe: 

Fluctuation rate

Natural fluctuation at Telekom in Germany: -1.95%
Group headquarters and Shared Services : -4.06%
T-Systems International in Germany: -2.28%
Germany operating segment: -1.16%
Europe operating segment in Germany: -1.21%
Natural fluctuation in Europe segment (not including Germany): -8.68%



Staff leaving the company (FTE )

Natural fluctuation at Telekom in Germany: 2,375.82
Group Headquarters and Shared Services : 886.78
T-Systems International in Germany: 675.65
Germany operating segment: 807.38
Europe operating segment in Germany: 6.00
Natural fluctuation in Europe segment (not including Germany): 4,993.81

Natural fluctuation figures include termination of the employment by the employer or the employee as well as termination of the employment as a result of retirement or incapacity to work. To calculate the fluctuation rate, we divide the total number of employment contracts terminated (FTEs) by the total number of employees (FTEs) at the end of the previous year. 

Our annual workforce structure report does not state the number of retired employees. We therefore cannot provide a breakdown of natural fluctuation according to gender and age.

LA3 Benefits to full-time employees icon
LA4 Employees with collective bargaining agreements icon

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 executives and a few small subsidiaries not covered by collective agreements. At an international level, Telekom aligns its activities to the culture of co-determination existing in each country, which gives us a different landscape for collective agreements at each of our international subsidiaries. The responsibility for negotiating and signing collective agreements lies with the management of the relevant national company.

78,894 out of 118,840 employees with permanent employment contracts were covered by collective agreements in 2012. This is a share of 66.4 percent. 

LA5 Minimum notice period(s) regarding operational changes icon

The relevant works councils are informed on significant operational changes and involved according to the legally applicable provisions such as the German Works Constitution Act [Betriebsverfassungsgesetz].

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 & safety

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

Our employees spent an average of around 36 hours attending training events in 2012. 

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

Performance management as a basis for transparency and comparability

All employee groups that take part in the target agreement process receive a variable salary component based among other things on their service performance. For all executives, service targets are part of the medium to long-term, pay-related targets (variable pay). All other employees in service functions receive variable pay based on their service performance.

Percentage of employees who receive regular performance assessments and development plans: 

Performance asssessment
for all employees: 86 percent
for executives: 99 percent
for employees not covered by collective agreements: 96 percent

Development plan
for all employees: 93 percent

No data on development planning is available for employee groups in the categories "executives" and "employees not covered by collective agreements." However, we can assume that all employees who receive a performance assessment (99 percent of executives and 96 percent of employees not covered by collective agreements) also received a development plan.

LA14 Gender pay disparity icon

Social performance indicators: Human rights

HR1 Investment agreements icon

Laying down principles and taking responsibility for the supply chain
Supply chain management
Social audits
Sustainable procurement 

Deutsche Telekom requires all of its suppliers to comply with the Group-wide Code of Conduct and the policies contained in the Social Charter . These are based on the values set forth in the UN Global Compact , the guidelines of the International Labour Organization (ILO) and the OECD guidelines for multinational companies.

The Social Charter  contains policies on 

  • human rights and working conditions, 
  • environmental protection, 
  • equal opportunity, 
  • occupational health and safety and
  • the right to set up or join a trade union.

The principles described in the Charter apply to all Telekom business units worldwide. In the Charter, which is an integral part of our General Purchasing Terms and Conditions, we require all suppliers to comply with these basic principles as far as possible.

HR2 Supplier screening on human rights icon

Expanding the Sustainable Procurement CR KPI
2012 audits result
Sustainable Procurement CR KPI

Telekom uses the Sustainable Procurement CR KPI to record the supplier share of our procurement volume that has been checked for compliance with human rights on the basis of voluntary information or social audits.

HR3 Training on human rights icon

Employee training to strengthen compliance and Internet portals for prevention and advice
New online training tool for buyers
Participation in the German Global Compact Network

Within the framework of our sustainable procurement strategy, we offer training courses for buyers and joint workshops with suppliers. The new CR e-learning tool 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. 

Social Charter: Complaying with minimum standards
Employee Relations Policy
Accompanying measures for the Employee Relations Policy
First collective agreement at T-Mobile USA.
Respect for human rights as an ingrained practice
Cooperation with employee representatives througout Germany and internationally 

HR6 Child labor icon

Respect for human rights as an ingrained practice
Social Charter: Complying with minimum standards
2012 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

Respect for human rights as an ingrained practice
Social Charter: Complying with minimum standards
2012 audit results
Work and ethics 

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

Disclosure on management approach icon

Community
Stakeholder involvement
2012 Annual Report > Risk and opportunities management

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.

Corruption
Compliance

Public policy
Government relations and regulatory issues

Anti-competitive behavior
Compliance

Compliance
Compliance
Data privacy

SO1 Impacts on communities icon

Mobile communications and health 
2012 Annual Report >  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 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 116 of 239 fully consolidated companies during the reporting period. We also monitor another 43 companies in a two-year cycle. This corresponds to a rate of 67 percent based on the number of all fully consolidated companies. Most of the companies that were not included in compliance risk assessments have no business operations or are not personalized.

SO3 Anti-corruption training icon

Deutsche Telekom once again conducted an awareness program to communicate key anti-corruption topics in 2012. 

More than 1,700 managers and experts in Germany, from the Board of Management, top management and employees from other selected areas, completed custom anti-corruption training programs in 2012. These face-to-face events, which will continue in 2013, cover the main anti-corruption regulations, using case studies to deepen understanding. The compliance team worked with the various areas in advance to develop specialist case studies so that training courses could be tailored to the specific needs of each area.

Telekom addresses other employee groups with its anti-corruption e-learning module. This e-learning program is designed to teach employees, who were selected on the basis of exposure to risk, about the contents of our Anti-Corruption and Benefits Policies and to help them recognize typical corruption risks in their daily work environment and respond accordingly. Almost 16,000 employees in Germany received this risk group-specific training between September and December 2012. This corresponds to a rate of 15 percent. We are rolling out the e-learning program internationally in 2013.

SO4 Actions taken in response to incidents of corruption icon

Investigations of suspected corruption

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

Disclosure on management approach icon

Customer health and safety
Basics for product development & product design

Product and service labelling
Mobile communications & health
Protecting minors

Marketing communications
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) „GSMA Code of Conduct against Mobile Spam“ (2006) and
(b) „GSMA Mobile Advertising Program“ .

Customer privacy
Compliance
Data privacy 
2012 Data Privacy Report

Compliance
Compliance
Data privacy 

PR1 Health and safety impacts along product life cycle icon
PR2 Non-compliance with health and safety standards icon

2012 Annual Report > Risk and opportunities management

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

PR4 Non-compliance with product information standards icon

2012 Annual Report > Risk and opportunities management

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

PR6 Marketing communication standards icon

Internet portal for prevention and advice
Mobile communications and health
Protecting minors
E-health

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) „GSMA Code of Conduct against Mobile Spam“ (2006) and
(b) „GSMA Mobile Advertising Program“ .

PR8 Complaints regarding customer privacyicon
PR9 Sanctions for non-compliance with product and service related regulationsicon