Corporate Responsibility

The following constitutes TDC's statutory reporting on Corporate Responsibility in accordance with Section 99a of the Danish Financial Statements Act.

As in 2009, and as a supplement to the statutory reporting on social responsibility, TDC has prepared a CR report, which is available at www.tdc.com/csr. The CR report has been prepared in accordance with the Global Reporting Initiative's sustainability reporting guidelines (G3).

As a member of the UN Global Compact, TDC will also submit a Communication on Progress (COP) to the UN for the financial year 2010. The COP will constitute TDC's CR report prepared in accordance with the abovementioned G3 guidelines. TDC could therefore have chosen to omit a report on social responsibility from the Management's Review, but with its focus on clarity and transparency, has decided not to apply the exemption provision.

Corporate Responsibility supports TDC's business

In 2010, TDC's Corporate Management Team (CMT) and TDC's Board of Directors approved and adopted a new Corporate Responsibility (CR) strategy. This new strategy applies to the entire TDC Group, including Nordic and Danish subsidiaries. The strategy supports TDC's ambition to be the best of the comparable European telecommunications in 2012 in relation to earnings as well as customer and employee satisfaction, while remaining the backbone of Denmark's IT society.

More specifically, TDC has chosen five focus areas, with a number of people responsible for securing progress and fulfilment of the objections set for each area. With one exception, the people responsible are all members of TDC's top management team.

The five focus areas are:

  • Digital Denmark
  • Customer security and confidence
  • Climate and environment
  • Employee health and diversity
  • Social partnerships

The concrete policies of the five focus areas and how action will be converted into results are described below with the results for the year.

Responsibility systematised

The new strategy defines a number of ambitious Corporate Responsibility objectives and enables the Group to build on the results achieved in recent years while strengthening a number of areas.

All objectives and results are reported every three months to the CR Board, which we have set up to support and secure that the strategy is implemented across the TDC Group. The CR Board comprises TDC's Chief HR and Strategy Officer, Head of Communications, Head of Legal & Regulatory Affairs, Head of Marketing and Public Account Manager in TDC Business and reports directly to the Executive Committee.

All objectives and results are also reported to the CMT every three months, and every six months to TDC's Board of Directors. Objectives and a more detailed review of TDC's Corporate Responsibility can be found in the CR report, which is available at www.tdc.com/csr.

Digital Denmark

TDC's objective

With its new CR strategy, TDC is focusing on the digitalisation of Denmark.

For many years, Denmark has been featured at the top of many international surveys on the penetration of broadband and digital solutions. This position is based largely on TDC's intensive roll-out of both landline and mobile networks. However, at TDC, we want to secure continuous development of Denmark as a leading digital country. We have therefore decided to invest DKK 25bn in Danish IT infrastructure over the next ten years.

In addition, we want to focus specifically on extending IT to Danish schools and supporting the expansion of telemedicine and other welfare services that we regard as prerequisites for maintaining and developing the high level of welfare expected by the Danish population.

Actions, results and objectives

In 2010, we increased the bandwidth of our mobile broadband network by up to 42 Mbps, and with the roll-out of the Long Term Evolution (LTE) network in 2011 we can now offer our customers an even better mobile data experience in the future. We also increased our share of customers who can receive up to 20 Mbps via cable, fibre or the copper network to approximately 85% of the Danish population in 2010.

The ever-increasing speeds of both mobile and landline broadband are opening up new opportunities for digitalising our public services.

In 2010, TDC promoted the extended use of IT-based teaching materials. Specifically, we supplied smartphones to schools in Ganløse and Vinderslev and signed an agreement with the Danish e-Learning Centre promoting Mingoville mobile-based teaching material, which enables pupils to use their mobile phones as integral elements of English lessons.

IT-based teaching enables schools to differentiate the teaching of individual pupils more clearly. It also facilitates teaching across classes, schools and age groups. The goal is to raise teaching standards and ensure that costs at the schools are reduced to a minimum.

TDC expects to further invest in IT-based projects in Danish schools over the next three years.

TDC also envisages great opportunities for extending telemedicine solutions across Denmark. These are expected to reduce the number of hospitalisation days for several groups of patients, enabling tele-examinations of so-called chronic patients. This will improve the life quality of the individual patients and significantly reduce National Health Service costs.

TDC expects to supply minimum 1,000 new data lines for telemedicine purposes in 2011 and 5,000 in 2012.

Customer security and confidence

TDC's objective

Since mid-2009, TDC has worked on developing the 'TAK' concept, which promotes taking responsibility for our customers and thereby ensuring improved customer satisfaction - another element of TDC's general ambition.

Customer dialogue is a top priority among our many initiatives. In 2010, we initiated a proactive dialogue with our customers through social media such as Facebook and Twitter, where we invite our customers and Danes in general to give us feedback on products, suggest improvements or express their happiness with TDC, etc. We also established TDC Forum - a customer-to-customer forum on www.tdc.dk, which helps customers seek assistance from each other and come closer to TDC and our products.

Actions, results and objectives

In 2010, TDC gained more than 2,600 Facebook friends, generating over 2,500 postings a month. We asked our friends on Facebook hundreds of questions and engaged in dialogues on various social media more than 600 times. We also set up a taskforce, which meets on a regular basis to solve the problems revealed in dialogue with our customers. The results include a new top limit on mobile data for private customers and the introduction of direct dialogue with customers via SMS texting in connection with installations, repairs and fault corrections.

TDC is also focusing on reducing customer insecurity when using our media. As a result, TDC takes part in the Danish National IT and Telcom Agency's annual campaign 'Netsikker Nu' (Netsafe Now) via the website www.opdaterdinpc.dk, which was set up in cooperation with Microsoft, the Danish Bankers' Association and DK-Cert.

We also launched a new security package to provide extensive protection for our customers' PCs. This is an addition to TDC's general spam and virus filter, which stops more than 320m spam mails a month before they reach our customers' inboxes.

Employee health and diversity

TDC's objective

In 2010, TDC adopted a new diversity strategy for its employees. For many years, TDC has endeavoured to be a diverse workplace that welcomes all types of employees. We focus on diversity because we need all types of competent employees irrespective of gender, ethnicity, functional capacity and sexual inclination. As TDC is also a company that many Danes trade with, we would like our company to reflect Danish society.

With our new diversity strategy, which is also valid for YouSee, we have established a framework for systematic diversity efforts.

At TDC, we also believe that our employees' well-being is closely linked to their health. Consequently, we have a health, safety and working environment policy with clear targets for reducing work-related accidents and long-term absence due to illness.

Actions, results and objectives

TDC has defined clear targets for more women in management and for managers with different ethnic backgrounds. For example, at year-end 2015, 33% of the top 250 managers in TDC Denmark must be women, and 3.8% of all managers must have an ethnic background other than Danish.

In 2010, TDC also signed the Danish Ministry of Gender Equality's 'Operation Kædereaktion' (Operation Chain Reaction), in which TDC commits to work to recruit more female managers onto the Board of Directors.

TDC also improved the conditions of homosexual parents in 2010 by giving them the same parental leave options as our other employees. For example, the 'Fars Kram' (Father's Hug) scheme allows fathers to take up to 13 weeks of paternity leave - an offer that 71% of new fathers made use of in 2009 and 2010.

TDC also cooperates with the Specialists, an enterprise that employs people with autism spectrum disorders who solve special tasks offering TDC a zero tolerance of errors. TDC has cooperated with the Specialists since a former TDC employee, Thorkil Sonne, founded the enterprise in 2004.

TDC succeeded in reducing absence due to long-term illness by 2.33% in 2010 - a result achieved through TDC's health insurance, which enables all employees to contact e.g. a chiropractor or physiotherapist on TDC's account. The achievement was also due to management's early attention to stress symptoms and the opportunity of preventive treatment of physical injuries. TDC expects to reduce the number of sick days by 12% in 2011 among employees suffering from long-term illnesses.

Climate and environment

TDC's objective

TDC adopted a climate plan in 2008 and has since been deeply involved in promoting a better environment. In 2010, TDC once again signed the EU's Code of Conduct for broadband equipment and the Code of Conduct for data centres, which lay down strict requirements on power consumption for many of our products.

Actions, results and objectives

TDC's climate plan outlines a 5% reduction of the Group's CO2 emissions by 2014 in the form of concrete energy reductions. Over the past two years, TDC has already managed to reduce its impact on the climate by 20.3% due mainly to energy savings in networks and buildings, reduced vehicle fuel consumption and use of video conferencing equipment. Consequently, in 2011 we will decide whether to change our target.

New travelling rules were adopted in 2010 to reduce motoring between Danish locations by encouraging employees to take the train instead of their car and by increased opportunities for video conferencing. For that purpose, TDC has invested in new video conferencing rooms, which means that we now have more than 60 video conferencing options in the TDC Group, including the Nordic subsidiaries. All in all, it has reduced CO2 emissions due to work-related driving and travelling activities by 1,050 tons.

TDC also worked intensively on improving the collection of data, which means that we are now able to make a consolidated environmental account for the entire Group, including the Nordic subsidiaries. In 2011, we will step up our environmental efforts so that TDC's environmental system will cover the entire Group, including our Nordic subsidiaries.

Social partnerships

TDC's objective

Since 2008, TDC has established partnerships with a number of NGOs in the belief that through partnerships we can learn most about NGOs, while contributing most to the relevant work by investing personal engagement and the competences of our employees in the partnership.

Actions, results and objectives

The most outstanding achievement is our cooperation with the Danish Red Cross. In 2010, TDC added a new dimension to the collaboration, which had previously been limited to helping set up their disaster preparedness within IT and telecommunications in connection with disasters. When the earthquake hit Haiti, TDC sent two employees to the country as part of the Red Cross team in connection with reconstructing the island after the earthquake destroyed most of the digital infrastructure in one of the world's poorest countries. It is TDC's goal to increase the number of employees stationed abroad to a minimum of five before the end of 2012.

TDC also achieved impressive results both for the national fundraising campaigns of the Danish Red Cross in October 2010 and 'Danmarks Indsamlingen' (the national emergency relief show) in January 2010.

During the Danish Red Cross national fundraising campaign, TDC employees collected a grand total of approximately DKK 600,000.

At the same time, TDC changed its policy for donations in connection with fundraising campaigns so that in future we will charge no fees for either SMS donations or calls to surcharged services for collections approved by the police for organisations approved to receive donations under Section 8a of the Tax Assessment Act. In 2010, we donated more than DKK 1.3m to fundraising campaigns run by organisations with Section 8a approval.

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