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2012 audit results.

  • Measures launched after discovery of violations of supplier requirements.
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A total of 33 social audits were conducted on direct and indirect suppliers of Deutsche Telekom in 2012 through the auditing program set up and managed at Group level. As in previous years, we focused our audit activities particularly on suppliers in Asia. However, we also conducted social audits in Latin America and Eastern Europe.

Among the suppliers audited were manufacturers/suppliers from the terminals, IT services, IT hardware/software and network areas. The audits did not uncover any cases of corruption.

At a glance: 2012 audit results.

Results and improvement.

In 2012, a total of 33 audits were conducted by external and internal auditors. 26 of these audits were conducted within the scope of the Joint Audit  Cooperation (JAC). We did not find any cases of corruption.

However, we identified key weak points and considerable need for improvement particularly in the following areas:

We found violations against Telekom supplier requirements in a total of 166 cases, 42 of which must be considered critical. Based on these findings, measures were immediately introduced to improve conditions on site.

Last year's CR report

Work and ethics.
Issue Key findings Measures and improvements made
Working hours  
  • Systematically exceeding legally permitted normal working hours (including overtime regulations)
  • Unacceptable amount of overtime, in some cases more than 80 per month
  • Employees working on 20 consecutive days without getting a day off
 
  • Introduction of a monitoring system to automatically record time worked and to provide the executive management with adequate information
  • Agreement to gradually comply with national laws regarding working hours, to the extent these exceed the ILO guidelines
  • Introduction of a day-off policy after working seven days in a row
  • SA8000 certification
Discrimination  
  • Conducting pregnancy tests before hiring
  • Selecting employees based on ethnic background as well as religion and sexual orientation
 
  • Elimination of pre-hire pregnancy tests
  • Introduction of a policy for conducting interviews. Ethnic background and religion no longer allowed as part of the selection criteria; interviewers are prohibited from asking questions about sexual orientation.
Disciplinary measures  
  • Deducting pay for mistakes made at work
 
  • Introduction of a policy to regulate disciplinary measures. Deducting pay for mistakes made at work is now strictly prohibited. Introduction of regular informational and training measures for production managers.
Youth employment  
  • 16 - 18 year-olds working the night shift
 
  • Introduction of a policy to regulate employment of young people. Young people only be hired for less strenuous positions; night shifts and overtime are prohibited.
Environment, health and safety.
Issue Key findings Measures and improvements made
Environment  
  • No environmental management system in the production area
 
  • ISO14001 certification
Occupational health and safety  
  • Protective clothing for hazardous working conditions either not available or defective
  • Risks at the workplace that could lead to accidents, injury or work-related illnesses were not being reviewed
  • No safety information available for chemicals
  • No regular informational or training measures on occupational health and safety
 
  • Free provision of adequate protective clothing for hazardous working conditions
  • Regular monitoring of risk factors involved in work processes and conditions
  • Provision of safety information on chemicals and hazardous goods
  • Regular instructions on occupational health and safety for employees
Corporate ethics.
Issue Key findings Measures and improvements made
Corporate ethics  
  • Sub-suppliers were not required to comply with environmental, social and ethical standards
 
  • Introduction of environmental and social standards for suppliers including regular review