We do not audit all of our suppliers (over 30,000) equally, but instead focus on strategically important and/or high-risk supplier groups. We focus on roughly 250 suppliers that are regularly audited every two to three years. The majority of these audits is conducted within the scope of the Joint Audit Cooperation (JAC).
The JAC Guidelines require suppliers to grant their employees the freedom of association and the right to collective bargaining, as well as a healthy and safe working environment. The following minimum requirements are applicable regarding working hours: a maximum of 48 working hours per week, a maximum of twelve hours of overtime each week and one day off after six consecutive days of work. We also demand a fair wage that enables employees a decent standard of living. Compliance with all these requirements is reviewed regularly during our on-site audits. This also includes inspection of the features and quality of the working, sleeping, and cafeteria areas.
We do not require our suppliers to obtain external environmental or social certificates. Based on our audits, however, the majority of our relevant manufacturing suppliers have an external certificate confirming compliance with ecological and social standards. Reviews of the major ecological and social aspects during our audits are compliant with the relevant international regulations and standards, such as the ILO14001 and SA8000.core labor standards, the UN Guiding Principles on Business and Human Rights, and recognized management systems such as ISO
Of the 89 suppliers we audited in 2017 (nine of which were in accordance with the validated audit processes of the Responsible Business Alliance), around 29 percent (26 audits) were direct suppliers and 71 percent (63 audits) were tier 2 and 3 suppliers – that is, indirect suppliers.
In the course of the audits in 2017, a total of 581 violations of Deutsche Telekom's supplier requirements were discovered. In the process, a total of 634 violations were corrected in 2017, including several open improvement measures from previous years. Among the violations were 22 unacceptable incidents and 156 critical findings; 94 violations were rectified. Examples of unacceptable and critical violations, as well as introduced improvement measures, are published here. Critical findings were discovered at 68 suppliers in the areas of occupational health and safety, environmental protection, labor practices, working hours, and wages and performance-related remuneration. There were no critical findings in the business ethics area. Like in past years, most of the violations were related to occupational health and safety (46 percent, compared to 47 percent in 2016), followed by working hours and wages with 17 percent (12 percent in 2016). The business ethics area took the third spot, with 13 percent (18 percent in 2016).