Business Principles

In 2008, the Business Principles channels received 169 reports from employees. As a consequence of the investigations carried out due to possible breaches of the Principles, 358 disciplinary actions were taken.

Telefónica is seeking to consolidate a new internal culture based on the maximisation of its Business Principles.

The Business Principles are the Company's ethical code, which establishes the guidelines for its relationship with its interest groups (employees, customers, suppliers, shareholders, Public Administrations and society as a whole). In order to include its Principles in its daily activities, the Company develops internal regulations, the objectives of which are:

• Define guidelines and general criteria for day to day procedures.

• Support the areas directly related to the fulfillment of the commitments acquired with the interest groups.

• Manage risks to the Company's reputation, identifying priority areas in which action needs to be taken.

The Company's objectives regarding management integrity seek to ensure coherence in its actions so that, in both highly visible areas (social and cultural action, products and services that have a social impact, etc) and internal management (including the training of employees in the Business Principles and the development of the necessary policies and regulations for the complete implementation of the former), public and social considerations are taken into account in addition to profits.