Cyta’s Approach to Corporate Social Responsibility

1. Cyta’s Approach toCorporate Social Responsibility Multi-stakeholder Forum The State of Sustainability: CSR, SRI & ESG 4 June 2010 Maro Hadjisophocleous Head of CSR

2. What is CSR? • Confusion • Many names, many definitions • Means different things to different people • CSR = Sponsorships • A bunch of ad-hoc activities for society/community • A fancy term for donations (handing out money) • Cynicism/Criticism • A Marketing and Public Relations tool • “A smokescreen behind which companies can hide their bad practices” • Trend • “Corporate Responsibility” & “Sustainability”

3. What is CSR? Environmental CSR Economic Social • Beyond maximising profits • Beyond what the law requires • Voluntary • Holistic • Considers the needs of all stakeholders • Considers the social, environmental and economic impacts • positive and negative

4. Our journey towards CSR

5. How we started Cyta was created to serve society “invisibly/subconsciously” contributing to society for years e.g. Caring for its employees, Supporting education, welfare and charities 2001: on its 40th anniversary Cyta increased contribution to society Numerous projects and events: society, culture, environment, sports, education, young people & business community Focused mainly on building corporate image 2001: EFQM Self-Assessment Lowest scoring Criterion 8 “Society Results” 2001: EFQM Benchmarking Group “Society Results” Focused on how to measure and improve organisation’s performance and society’s perceptions of the organisation in area of Society Results Identified the need to adopt a systematic approach and address social/environmental issues in all EFQM Criteria 2002: Development of Methodology & CSR Survey To measure society’s perceptions – Criterion 8 First specialised CSR Survey of general public

6. ETNO “Sustainability Charter” • 2004: Signed by 19 European Telecommunications Operators including CYTA • CSR is the business contribution to Sustainable Development • Signatories committed to Sustainable Development via: • A sustainable provision of products and services with significant environmental, social and economic benefits • A determined effort to integrate in our business activities environmental, social and economic responsibilities – minimising, where practicable any negative impact these activities may generate

7. We realised . . . . . . that our activities in the past: • Focused mainly on: • some stakeholder groups (employees, society & customers) • some of the issues/concerns • Were mostly on an ad-hoc basis • Were fragmented • many small initiatives with low impact • Were mostly sponsorships • focused on building corporate image • Some bigger projects had a greater impact

8. We recognised that . . . • CSR is a WHOLE LOT MORE than • Sponsorships, philanthropy, doing something good every now and then • We needed to manage CSR so that we: • systematically address the needs/expectations of other stakeholder groups • Customers, neighbours, suppliers, government, regulators etc • consider • all three dimensions (environmental, social and economic) • both positive and negative impacts • integrate CSR into the way we do business • This way we can: • Overcome misconceptions and criticism and gain credibility and trust • We ensure long-term survival (sustainability) of the organisation

9. Our CSR Strategy

10. CSR Strategy Development Process • 2008: CSR Self Assessment Workshop • Top management participation • Using “EFQM Framework for CSR” • 2008: Consultant presented • CSR Self-Assessment Results • Draft CSR Strategy • 2009: Final Proposal of CSR Strategy • 2009: Approval of CSR Strategy by top management • 2010: Approval of CSR Organisational Structure • 2010: 1st Steering Committee Meeting • Approved CSR Strategy • Assigned Ownerships of CSR Strategy projects and KPIs to Members

11. Stakeholder Mapping EMPLOYEES Men/Women Trade Unions Age Groups People with Disabilities Educational orgs, NGOs & Bodies in areas of Health, Culture, Sport, Environmentetc InternationalPress Media Journalists Publishers, TV channels SOCIETY Local Communities Neighbours of buildings Political Parties OWNERS Finance Ministry Cabinet Parliament GOVERNMENT & AUTHORITIES Regulator, Competition Comm/tee Ministry of Comms&Works Data Protection Commissioner COMPETITORS Other Electronic Comms companies PARTNERS & SUPPLIERS Local/InternationalSuppliers Local/InternationalSub-contractors CUSTOMERS Home customers, SMEs Business customers Vulnerable groups PRIMARY STAKEHOLDERS Secondary Stakeholders

12. Integrated CSR Strategy RESPONSIBILITY for EMPLOYEES RESPONSIBILITY for the ENVIRONMENT INTEGRATED CSR STRATEGY RESPONSIBILITY for CUSTOMERS Commu- nication & CSR Report AXES RESPONSIBILITY for SOCIETY KPIs • Activities focusing on important areas for improvement • Key Performance Indicators (KPIs) to measure CSR Strategy effectiveness

13. Activities Focusing onImportant Areas for Improvement Reinforcement of the CSR Strategy

14. Activities on important Areas for improvement Priorities • Embed CSR in Corporate Strategy, Vision & Mission • Measurement of customers perceptions • of the social, environmental & economic responsibility of Cyta & its products/services • Revision of our Society CSR Survey questionnaire Already under way • Review of criteria for the evaluation of Sponsorships and Corporate Community Investment Projects • Implementation of CSR Organisational Structure

15. CSR Communication

16. CSR Communication • Slogans • for CSR Strategy • For each axis of CSR Strategy • Public announcement of CSR Strategy • Planning of communication activities on annual basis • Preparation of detailed proposal for CSR Communication which may include: • Annual CSR Report • Special CSR website on Corporate website • Communication focused • on particular groups of stakeholders or • particular topics of interest to particular groups • Other communication activities: • Customised communication serving the objectives of particular CSR projects/activities • Integration of CSR issues in existing communication channels, where applicable

17. CSR Key Performance Indicators Some examples • Customers: Customers’ perception of Cyta’s • social responsibility • environmental responsibility • Employees: Employees’ perception of Cyta’s • social responsibility • environmental responsibility • Society: Society Trust Index • Cyta is a trustworthy organisation • Cyta satisfies my expectations • Cyta contributes to society Environment: Fuel & Electricity consumption Amount of waste recycled

18. Organisational CSR Structure Board CSR Champion CEO CSR Steering Committee CSR Manager CSR Action Teams Environmental Issues Customer/Product Issues CSR Unit Society Issues Employee Issues Network of CSR Liaisons in all Departments

19. Existing Policies/Programmes

20. Responsibility for EmployeesExisting Policies/Programmes Cyta an employer of choice

21. Work-Life Balance

22. Work-Life Balance Policy • Flexi-time • Teleworking • from home or • from Cyta buildings in other cities • Personal work schedules • Unpaid leave of absence • up to one year for personal reasons • Annual Leave “Solidarity Bank” • Employees donate annual leave for use by colleagues facing serious family problems • Social support / Social Worker • Occupational Health Center • Occupational doctor and nurse

24. Responsibility for CustomersExisting Policies/Programmes Cyta offers responsible products/services

25. Cytanet Service – Internet Safety Responsibility for our products/services • Free antivirus and antispam email protection • Free provision of the “Safe Internet” service • Free presentations, training and seminars for safe internet issues and practices • At schools, in cooperation with the Ministry of Education, and for the general public • Training Programme “The Internet and our children – Safe and responsible use” for parents • Participation in the European “Safer Internet Plus” programme • Created the CyberEthics node in Cyprus • Operates a Hotline for reporting internet abuse, web sites with harmful and illegal content etc. • http://www.cyberethics.info/

26. “Safe Internet Service” • Available since 2006 • Filters online content • Helps parents protect their children • from illegal, undesirable & harmful internet content • Software details: • installed on up to 3 computers • 5 different user profiles • more than 30 different categories of content • blocks internet applications • white & black list • provides user statistics and graphics of the filtering results • the service can be managed remotely • Free to all Cytanet customers • Service installed free of charge to all primary, secondary and technical schools

27. “Safe Internet Service” • Only 3% of our customers have installed the service • Reasons: • parents ignorance about internet dangers • many parents are computer illiterate • Actions taken: • educate parents • introduce new version of the service • which is network based and does not require software installation at home

28. Presentations & Seminars • Presentations on safe internet use for other organised groups, municipalities etc. • Media discussions on Internet Safety issues • Participate in other related projects and programmes • Organise seminars for students, teachers and the media • Participate in seminars organised by other bodies • Publication of articles in local press • Prepare printed information • Plan to introduce training course for parents in a lab

29. Responsibility for the EnvironmentExisting Policies/Programmes Cyta leads in solutions for the environment

30. Mobile Telephony Concerns

31. Electromagnetic Fields from Mobile Telephony Cyta responds to public concerns about Electromagnetic Fields (EMF) from the operation of mobile telephony • Concerns about possible health effects • Reaction to the presence of mobile base stations/antennas • Cyta • Maintains levels of EMF below the international limits adopted by the EU and Cyprus • Carries out measurements at each and every base station every 6 months (required by law) • Cyprus is the only country in EU where this is done! • Ministry of Communication & Works • Carries out measurements when requested/complains are filed • Maintains website with measurements (that Cyta carries out) of EMF levels at each base station • Cyta responds to concerns

32. Response to public concerns about EMF • From 2003: Interdepartmental EMF Team • to inform public about Electromagnetic Fields from Mobile Telephony • Organise open public seminars • With participation of independent scientists and doctors • 2008: Organised 2 special seminars for • Journalists • Local Authorities & their representatives • Active cooperation and dialogue with: • Local Authorities, Municipalities, Village authorities • Groups of concerned citizens and communities • Ministry of Communications & Works and other Gov. Depts involved in procedures for licensing the installation of Mobile Telephony Base Stations • Participation in events organised by: • Doctors Association - medical conference with a special session on "Electromagnetic Fields and Health" (2008) • Local Authorities in all cities (2009-2010) • Consumers Associations • Groups of concerned citizens (whenever requested) • Schools and Parents Associations (whenever requested)

33. Response to public concerns about EMF • Publication of info booklet : "Mobile Telephony in our Lives" • available at all Cytashops & Cyta website • Includes info: how mobile telephony works, mobile telephony & health, responsible use of mobile phones (e.g. driving, by children, etiquette), Frequently Asked Questions • Publication of Short Leaflets: “Mobile Telephony in our Lives” • Texts finalised, to be published shortly • For distribution through Cyta bills, cytashops & internet • How it works • Mobile Telephony and Health • Mobiles and Driving • Monitoring International/European developments in area of EMF • International Organisations • European Union • Meeting Cypriot Members of European Parliament etc

34. Booklet “Mobile Telephony in our Lives”

35. Responsibility for SocietyExisting Policies/Programmes Cyta is helping society

36. Community Investment

37. Road Safety • Cyta signed the European Road Safety Charter (ERSC) in 2004 • common European goal of reducing the number of road fatalities • Cyta started with cultivating road safety awareness among Cyta drivers and all employees • Accidents with Cyta vehicles decreased by 53% over the last 6 years 2003: 100 2008: 47

38. Road Safety – Training Young People • To cultivate road safety awareness • Cyta organises road safety seminars for: • National Guard conscripts • All Final Year Secondary & Technical School pupils • More than 75.000 young people have attended the training since 2004

39. Helmets for all children visiting the Police Road Safety Park During the last two years more than 45.000 safety helmets have been offered to children visiting the Cyprus Police Road Safety Park

40. Footbridge over Limassol Ave. Nicosia • Near our headquarters • and another one is scheduled to be completed in 2011 in the city of Limassol

41. Responsible Cyta Driver Programme • Sticker on vehicles • Tel. no. for public to report • “Responsible Driver Declaration” • Special training for all drivers

42. Mobile Phones and Driving “Guidelines for Safe Driving” leaflet

43. Cyta as best practice • Since 2005 Cyta has been promoted on the European Road Safety Website IN FOCUS out of 1725 ERSC signatories from all over Europe www.erscharter.eu • Cyta as a model • The Ministry of Communications & Works follows Cyta’s initiative “Responsible Driver” • Cyta was assigned as the ERSC National Correspondent - out of 60 signatories in Cyprus • More information at http://www.cyta.com.cy/interesting_links_odiki_asfalia_en.htm

44. Closing Remarks • Businesses cannot continue to be successful (sustainable) if they do so at the expense of society, the environment or other stakeholders • They must balance the, sometimes contradicting, expectations of different groups of stakeholders • For CSR to be credible & effective • It must be managed systematically • It must be integrated into the core business strategy, processes & operations • For CSR to be sustainable it must be beneficial to the company as well as stakeholders • CSR can be a source of competitive advantage

45. Shift Mindset for CSR CSR as Burden, obligation Risk minimisation CSR as a bolt-on to business operations How we spend our money Win-Lose relationship Possibilities Opportunity maximisation Built-into business strategy How we make our money – how we conduct our business Win-Win for business & all stakeholders From To

46. Thank you maro.hadjisophocleous@cyta.com.cy Tel. : 22 701 633