Corporate responsibility governance

Corporate responsibility informs how we operate as a company. It also dictates the relationship we have with society as a whole.

But we know that to achieve our ambition of creating a truly responsible company, Corporate responsibility must be rooted in our business at every level. Each of the Telefónica Europe operating companies in each of our main markets, now has direct responsibility for making sure this happens.

This work is overseen by the Board, in line with the requirements of the Association of British Insurers (ABI), who have drawn up disclosure guidelines on how companies report on their management of social, environmental and ethical risks. These guidelines on social responsibility were featured in our Corporate Responsibility Report 2006. All Board members have been given extensive information on social, environmental and ethical matters and we recognise the importance of training directors on these issues.

We have also established explicit Corporate responsibility objectives which we set out in our annual Corporate Responsibility Report. These strategic objectives are endorsed by the Board and help us to take full account of the social, environmental and ethical impact of our business, measured and monitored within a clear and effective system of risk management and corporate governance.

The strategic objectives sit alongside the operational strategy of the Company and are similarly measured by specific key performance indicators.

These objectives, which include stretching targets, are helping us to ensure that corporate responsibility is being managed effectively within each of our operating business. To support the objectives, each of the businesses has committed itself to:

• Integrating the management of corporate responsibility into their individual operations
• Seeking to continually improve their performance
• Establishing an individual area of Corporate responsibility excellence for which they will become renowned

Our overall corporate responsibility activities, our policies, practices and strategic objectives, are overseen by the Board. Reviews are carried out both through an annual conference and at regular Board meetings.

Individual directors take responsibility for different aspects of our programme and act as Champions for the business, led by the Chief Executive who has responsibility for all aspects of our social, environmental and ethical activities. Directors are closely supported in this role by our Corporate Responsibility Forum, click here for the terms of reference.