Human Resources, Corporate Reputation and Responsibility Committee

Since June 2002, the Board of Directors of Telefónica has had a Committee in place responsible for developing Corporate Reputation and Responsibility (CRR) projects. Among its various functions, this Committee is responsible for analysing and examining issues related to Human Resources.

The Human Resources, Corporate Reputation and Responsibility Committee met five times in 2008. The functions of this Committee, comprising 6 Directors (4 independent and 2 proprietary), regarding matters related to corporate reputation and responsibility, are the following:

1.- Drive development of the Corporate Reputation project:

• Monitor risks to reputation.
• Monitor stakeholder perceptions.
• Convey the results of reputation studies to the Board of Directors.
• Foster participation by Telefónica in initiatives and forums, especially by monitoring the Company's presence in socially responsible investment indices.
  

2.- Drive forward the establishment of Company values:

• Develop the relationship between Telefónica's values and its identity.
• Supervise the inclusion of values in business operations, particularly in areas linked to management of intangible assets.
• Know the level at which stakeholders identify with values. 

3.- Ensure ethical and responsible behaviour on the part of Telefónica:

• Supervise the distribution and introduction of Business Principles across all business lines and countries in which the Group operates.
• Develop the adoption of common corporate policies, with regard to CSR, which derive from Business Principles.

4.- Understand and drive forward verification of the Group's CSR Report or its intangible assets:

• Stimulate measurement of Telefónica 's intangible asset management performance (ethics, values, sustainability, identity…).
• Drive transparency through CSR Reporting, monitoring the scorecard of indicators which affect Telefónica's relationship with its stakeholders.
• Communicate results achieved to the Board of Directors and report those results to government bodies.
• Receive the opinion of external auditors on verification of CSR reports.