Telefónica’s commitment to its stakeholders is zero tolerance of fraud and corruption, because we understand that they have a negative impact on business and on society in the long term.
The principle of integrity is, in point of fact, of crucial importance in our internal code of ethics and, as a company adhered to the United Nations Global Compact, we fight corruption in all its forms and develop specific policies related to this theme.
Thus, our Anticorruption Policy forbids any type of bribery and regulates the acceptance and offering of gifts and invitations. We have a standard on conflicts of interest and a reporting channel to help our employees when they face an ethical dilemma.
- We prohibit all kinds of bribery.
- It is not allowed to promise, offer or give any benefit or advantage to anyone, in order to influence decisions of any kind (including governmental, administrative or judicial) or obtain an improper advantage for the Company. We also prohibit any sort of benefit or advantage that may result in a breach of the obligations and duties of our employees.
- We do not offer or accept gifts, invitations or any other inducements that may reward or influence a business decision.
- We avoid or declare conflicts of interest that may precede personal priorities to collective ones.
- We behave with righteousness without looking in any case for any benefit for ourselves or third parties, by misusing our position or our contacts within Telefónica.
In addition, we promote and encourage these behaviour patterns among our partners and suppliers, through our Policy on Responsibility in the Supply Chain.
Telefónica performs a continuous monitoring of the most significant risks that could affect the main companies comprising its Group. To achieve this, we have a Corporate Risk Management Model based on COSO (Committee of Sponsoring Organizations of the Treadway Commission) Risk Management Model, which allows to evaluate both the impact as well as the probability of occurrence.
The most significant risks and uncertainties we face and that could affect the business, the financial condition, reputation, corporate image and brand, and the results, are included in the Annual Report.
We have specific commissions and units to ensure that our commitment to control and transparency is met.
- Audit and Control Committee
- Institutional Affairs Committee
- Global Chief Compliance Officer and Compliance Officer in all countries in which the Group has significant interests
- Internal auditing in all countries in which the Group has significant interests
- Centralised Inspection Unit specialising in fraud prevention assignments and investigation of complaints and other allegations
- Payment Intervention Unit at major companies
- Global management and local sustainability units
- Corporate Risk Management Unit in charge of centralising and reporting risk information received from the local areas of risk management, implemented in the Group’s major operators.
Best international practice
Telefónica’s Business Principles Office, the body responsible for ensuring compliance with our ethical code has been included as a success story in the “Anti-Corruption Ethics and Compliance Handbook for Business”, sponsored by the OECD, UNODC and the World Bank. According to the World Bank, corruption and bribery generate annual losses of between 20 and 40 billion dollars in developing countries.