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 every three years. The majority of these audits are conducted within the scope of the Joint Audit Cooperation (JAC).
Further information on requirements for suppliers
A total of 535 violations of Deutsche Telekom supplier requirements were identified during the audits conducted in 2016, 17 of which were unacceptable incidents. The audits also uncovered additional critical findings at 49 suppliers – 197 individual cases in total. Click here for some examples of unacceptable and critical violations as well as the measures taken to improve these situations.
468 of the identified violations (52 of which were critical) were remedied by the end of 2016. The improvement measures had not yet been effectively concluded in the other cases. Most of the violations related to occupational health and safety (47 percent), This reflects an increase of 3 percentage points compared to 2015. The number of corporate ethics violations also increased slightly (from 16 to 18 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. Working hour violations came in third with 12 percent (2015: 12 percent).
Examples of problematic findings
|Area||Findings at suppliers||Initiated improvements|| Status |
(end of 2016)
|Business ethics|| |
No process in place to protect intellectual property or confidential information.
Introduction of a process to protect the intellectual property and confidential information of the supplier and its customers.
|Discrimination||All male employees interviewed said they were checked for tattoos during the application process.||Making sure that applicants are no longer checked for tattoos.||Ongoing|
|Conducting pregnancy tests during recruitment.||Removed pregnancy test item from health certificate report.||Completed|
|Environmental protection||No environmental permit or similar permit obtained from local authorities.|| |
An environmental permit was issued.
|Improper disposal of hazardous waste from sludge containing aluminum.||Making sure that hazardous waste from sludge containing aluminum is disposed of by a qualified specialist.||Ongoing|
|Health and safety||No effective fire alarm system installed.||Purchased and installed a fire alarm system.||Completed|
|Emergency exit signs were hung in the wrong places.||The emergency exit signs were repositioned and hung in compliance with legal regulations.||Completed|
|Wages and performance-related remuneration||Overtime was not recorded, making it impossible to assess whether employees were being paid overtime rates specified by law.||Making sure all employees are paid overtime rates specified by law.||Ongoing|
|Due to a structural calculation error, employees were receiving insufficient basic wages for full hours worked if they did not show up to work on all work days in a month.||Making sure all employees are paid the wage rates specified by law.||Ongoing|
|Overtime rates for temporary workers were too low.|| |
Temporary workers are no longer being hired.
Employees being let go were not being paid their final salary payment within seven days as required by law.
Making sure that employees leaving the company receive their final salary payment within seven days.
|Employees did not start receiving social security coverage from their employer until they had completed a two-month trial period.|| |
The local social security office confirmed that this regulation is permitted by law.
|No union organizations or works council in place.||A union organization or works council is being formed.||Ongoing|
|Not all employees had full social security coverage and a retirement plan or full maternity leave.||Making sure all employees have full social security coverage as specified under law.||Ongoing|
|Employees had to pay a certain amount of money as a deposit on work clothes loaned to them by their employer.|| |
Making sure that employees no longer have to pay a deposit for work clothes or similar.
|Part of the wages exceeding minimum wage as well as overtime were being paid in cash. Payments were documented.|| |
Wages need to be regularly reviewed as to whether they are fair or at least in line with the subsistence level.
|Working hours||Considerably more overtime was being worked that permitted by law.||Measures were taken to gradually reduce overtime so that compliance with national working hour regulations can eventually be achieved.||Completed|
Child and juvenile labor
|Young employees had to pay the costs for a health test conducted during recruiting themselves.|| |
Making sure the costs for the health test are paid by the company.
Young employees were working night shifts and overtime.
|Making sure that young employees no longer work night shifts or overtime.||Ongoing|
|Disciplinary measures||Fines were being used as a disciplinary measure. Employees not in compliance with internal guidelines were subject to pay deductions.||Making sure fines are no longer used as a disciplinary measure.||Ongoing|
|According to work instructions and the employment contract, employees are under the obligation not disclose the amount they are being paid. Violation of this regulation is seen as a serious matter that can lead to termination of employment; it also makes it difficult to exercise the right to collective bargaining.||The reasons specified in the work instructions for determining a serious violation are being reviewed and adjusted as necessary. This particularly applies to the requirement that employees refrain from disclosing wages.||Ongoing|