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Telecom-Orange was actively involved in CSR and sustainable development by adopting and by adhering to various policies like following AA1000 APS (2008) standard and principles defined in ISO 26000. Their proof of performance is ranking of 56/100 by Vigeo rating. In order to implement laws and regulations across the board its managers have travelled to the respective branches around the world to impart education on the issue. Its suppliers were required to follow the strict guidelines pertaining to the child labor and its policy. Interaction and services to customers won them various accolades. It is open to CSR initiatives which reflect in its financial and CSR reports. Despite various efforts in terms of CSR, some wrong doings in terms of violation of employee’s health and safety environment, corruption and barriers to entry for new players were present. Hence, in order to achieve CSR objective company has to cover long distance.
Orange is a MNC roughly with roughly 170,000 employees in more than 100 countries. The company was founded in 1994 in U.K. and was bought by France Telecom Company in the year 2000. Its revenue growth was worth €45 billion in 2012 and net Income was €820 million while its expenditure on CSR was €902 million. The company follows AA1000 APS (2008) standard and also adopted the principles defined in ISO 26000. (Telecom-Orange, 2012)
CSR strategy, profile initiatives, performance and success
Realizing the importance of Social responsibility and its success of its implementation in the company, Telecom Orange created its approach to CSR shaped by four basic commitments; recognizing and supporting employees, ensuring transparency in quality, security and safety for its customers, sharing the benefits of the digital world with the greatest possible number of people and finding innovative solutions for a greener world.
2011 global score: 56/100 Vigeo rating; the European leading expert in responsible performance. (Telecom-Orange, 2012) It measures the performance and risks of companies in 6 domains of CSR.
Compliance with Laws and Regulations
Telecom-Orange follows all principles of the United Nations along with national and regional laws where-ever they operate. The company created policy/program developed in 2006 in order to prevent fraud and diminish consequences thereafter. The company's statements emphasized importance on following international and national rules. To provide law compliance in the company, management travelled to 22 countries to spread awareness among governance teams on the main risks of fraud and corruption.
On the information side ESG insider disclosed an illegal deal about purchasing a 3G license.
Corruption investigation was launched in Tunisia against Telecom-Orange in 2011(CORPORATE GOVERNANCE, SOCIAL, 2013). The company was also penalized €60 million by the Competition Authority for creating illegal barriers using its dominant position against new entrants in 2013. (French court confirms overseas telecoms fines, 2014).
Treatment of Employees
One of the primary goals of the company is to integrate the quality of employer-employee relations at the heart of the daily running of business. The company created and implemented annual social barometer in order to measure employees' satisfaction. The company also provides roll-out and promotion to all employees in 23 Group countries and in 2012 the Group launched new health and safety policy. The company continues to mitigate discrimination of women by increasing their number in the Group simultaneously supporting freedom and rights of lesbian, gay, bisexual and transgender. However, negative aspect was found in the company’s performance as several cases of suicides by the company's employees. Labor Inspection revealed that the most of the employees worked in an inappropriate conditions and exposed heat.(News, 2014)
Treatment of Suppliers & Contractors
In 2006, Telecom-Orange signed a global agreement with Global Union in terms of respect for human rights and its relation with their suppliers and contractors. These suppliers and contractors are selected by using several parameters; strict compliance with the applicable laws and regulations as well as with the environment, social and societal criteria adapted to use fair price. In addition to assessing quality, lead times and costs, the Group emphasized the admissibility of using any forms of compulsory or forced labor, child labor and any discrimination. Contractors' practices are monitored on regular basis by using several systems to ensure fulfillment of their commitments.
Treatment of Customers
The company measures customers’ satisfaction when they go into a store, when they contact a call center, when they use an Orange product or service, etcetera. The Group provides various number of employee's courses in order to increase quality of services. The company also launched a program to improve pre-sale information and teach customer how to benefit from the services. As a result of this policy, Orange was ranked number one in mobile network on the quality of voice and data services of mobile operators in France. Orange Business Services won 3 awards at the 2012 World Communication Awards: Best Global Operator, Best Cloud Service and the Users' Choice Award. Orange was recognized as the most remarkable innovative across the telecoms industry in Africa.
Despite all efforts in order to satisfy customers, the company still faces criticism from clients. False advertising, limitation of downloads and additional fees are cause of the complaints. (Consumer group hits Orange, 2014)
CSR Plans, Programs & Initiatives
The Orange Foundation which was launched to promote CSR has a variety of initiatives, plans and existing projects in place to encourage and reward the Group’s employees and retirees to actively participate in community service programs such as charitable activities, project sponsorship etc. Around 7000 employees involved to help and support people with autism, seniors, people with disabilities, unemployed women etc. Telecom-Orange is also a member of the following initiatives such as the Mobile Alliance Against Child Sexual Abuse Content, the CEO Coalition to make the Internet a better place for kids, the ICT Coalition, the Privacy Design Guidelines for Mobile Applications (Telecom-Orange, 2012).The Group continues to contribute to countries in order to increase level of child protection and educate children of the risks they can face in using internet.
The Company plans to reduce the energy consumption by 7% in 3 years. Thus, reducing negative impact on the environment. It decreased level of CO2 by 12% in 2012.
Impact on the Environment
The Group encourages customers to buy green products by eco-labeling products and providing eco-design. The Group collects and recycles phones and other electronic devices. Optimization of internal waste generation allows the company reduces its carbon footprint.
Treatment of Shareholders & Investors
The Group practices to provide clear and disclosed information for shareholders also conducts an annual audit by involving independent agencies. Orange upholds a systematic dialogue with financial experts and socially responsible stakeholders. €3.7 billion of dividends was distributed among investors in 2012. France Telecom-Orange has set in practice a value sharing model that allocates the wealth produced among all the stakeholders objectively. (Telecom-Orange, 2012)
Telecom-Orange initiated their CSR in the year 1996 and by 2000 was the first company to sign up for UNGC. Their CSR spending of euro 902 m exceeded net income of euro 820 m. Despite of compliance pertaining to laws, employees, customers and suppliers; company faced various suits and issues which had an impact on their reputation. However, their environment initiatives and transparency with investors were credible and appreciated.
Telecom-Orange. (2012). Corporate Social Responsibility. France: Labrodor.