CSR Model
Management of corporate responsibility at Telefónica entails a continuous improvement process involving prior assessment of both risk elements and stakeholder expectations.
On the basis of this assessment, we implement improvement actions which we adapt to the specific features of each business line and country. Having identified the degree to which objectives have been fulfilled and having communicated this to stakeholders, we then begin a new cycle so that the entire process is periodically repeated.
The CSR self-assessment process drives continuous improvement through analysis of the risks and weaknesses in our responsible management model vis-à-vis our stakeholders. The results of this assessment are used for planning future Corporate Responsibility activities.
The self-assessment tool comprises 60 criteria associated with management and behaviour processes with regard to stakeholder groups, aligned with Business Principles approved by Telefónica. Our objective is to encourage continuous improvement towards excellence (1,000 points), dividing the grading equally between management and behaviour.
The methodology assesses and grades each criteria on a six-level scale. Assessment of a criterion at levels A, B or C indicates a need to drive forward improvement plans, while a grade of D, E or F indicates the advisability of regular performance evaluation using monitoring indicators. In order to ensure the objectivity of evaluations performed by business lines, evidence must be presented to enable the evaluation of any issue beyond progress.
We want to know the interests and expectations of stakeholders that interact with the company, through consultations, studies, surveys, focus groups, etc.
We want to know the interests and expectations of stakeholders that interact with the company, through consultations, studies, surveys, focus groups, etc.
In this way, we seek to achieve a dual objective
- To enable customers, employees, citizens, shareholders and suppliers to influence the development of objectives and business projects undertaken by Telefónica by expressing their needs and their perception of management aspects that affect them directly, to the company.
- To ensure that actions and projects implemented at Telefónica are consonant with stakeholder expectations and that they are properly directed and generate value.
Corporate responsibility management requires planning of initiatives to be carried out, in accordance with the criteria of efficient use of available resources by the company, as well as the importance of those initiatives for stakeholders.
- The significance of the issue for the company in the opinion of stakeholders. To establish this, discussion panels will analyse, together with stakeholders, press reports, tools that monitor the company's reputation and partnerships entered into or statements made by the company.
- The significance of the issue for achieving long-term value for the company. This will be established based on the opinion of professionals within the company, comparisons with other companies in the sector and the level of compliance with Business Principles.
Once each area has been separately analysed, the two perspectives must be brought together to establish which projects are a priority for the company, completing the strategic planning phase.
Responsibility for introducing corporate responsibility projects rests with the respective business units in different countries, which all face very different social, economic and regulatory conditions.
Principle of "flexibility and adaptability"
The principle of flexibility and adaptability strives to respect the social, political and economic environment of each country and the specific features of each business unit. It does not involve any sudden change to the way business is developed but rather, is concerned with taking advantage of opportunities for redesign and planning in order to gradually introduce the principles and criteria established by corporate responsibility policies.
The reports on this subject, published by Telefónica in each of the countries in which it operates, provide more information on the level at which the strategy has been introduced in actual business operations, observing the principle of flexibility and adaptability.The management cycle is completed by providing stakeholders with information that the company is periodically required to produce. To that end, project fulfilment must be evaluated, corporate responsibility reports must be prepared and the content of reports must be verified.
The CSR Reports are useful when it comes to debating with stakeholders and discussing the issues they are most concerned about, as becomes evident in phase 2: Dialogue with stakeholders
Telefónica's corporate responsibility management model has generated numerous consultations and requests for information. It is departmental policy to deal with all requests for information, consultations or interviews, whenever possible. This mainly concerns: Socially Responsible Investment questionnaires, students, preparation of dissertations and theses, research projects and presentations to CSR forums and conferences, etc.
Telefónica is promoting more widespread presentation of CSR reports
Our CSR reports prepared for each country, particularly those for Latin America, lead the way for other companies to commit to providing transparent information on this subject.
Together with preparation of annual reports, we have been active in supporting the institutional debate on how to prepare Corporate Responsibility reports, particularly by driving the new Global Reporting Initiative (GRI) recommendations.
To present G3 recommendations, the GRI made provision for a series of public meetings in the various countries which prepare CSR reports. In Latin America, provision was made for meetings in Sao Paulo, Río de Janeiro and Santiago de Chile. Telefónica not only supported these meetings (sponsorship and collaboration as speakers) but also proposed to the GRI sponsorship of similar events to be held in Lima, Buenos Aires and Bogotá.
Additionally, in Spain, it participated in the presentation of recommendations on guidelines in Madrid and Barcelona, in collaboration with the Corporate Reputation Forum.