Shareholders & Investors

Business Principles - Telefónica

Our Business Principles inspire and define how we work. On these principles we build our reputation, we gain the confidence of interests groups and maximize long-term value for our shareholders and for society in general.

These general principles, which are applicable to the entire Telefónica Group, were approved on August 8, 2007 and are the pillars of the following values:

 

-Honesty and trust

All actions with customers, shareholders, employees or suppliers must be taken within a frame of trustworthiness and complete transparency while protecting the confidentiality of all information entrusted to our people.

 

-Respect for the Law

we strive to observe all legislation, regulations, national and international regulatory obligations by promoting a fair and secure market competitive environment that greatly benefits consumers and society as a whole.

 

-Integrity

we propose standards of conduct that follow absolute and stringent ethical principles. In this sense, its intention is to avoid taking position for or against political parties, accept gifts which may influence a decision and avoid any conflict of interests which may lead to divided personal loyalties.

 

- Human Rights

holding the principles of the UN Universal Declaration of Human Rights as well as the declarations of the International Labour Organization in high regard. Thus we promote equal employment opportunities and avoid discrimination.

 

Our Business Principles have been designed with a global vision, aimed at being applicable to all human groups that compose Telefónica, including its employees, customers, shareholders, suppliers and, communities in general. They are specific guidelines within said General Principles intended for each of these groups, which can be broken down as follows:

(i) Employees: We support our people’s personal and professional development and reward them fairly; we do not tolerate any kind of child labour, forced labour, threats, coercion, abuse or violence, providing always a safe and healthy working environment;

(ii) Customers: We offer high-quality products and services, which are innovative and reliable, to ensure that our products comply with manufacturing standards on safety and quality; being honest by always providing our customers clear, practical and precise information when marketing our products;

(iii) Shareholders: We manage the Company in line with the best practices in corporate governance, create value and protect their assets in the best and most efficient ways, facilitate all relevant information, set proper internal controls and collaborate with external auditing and inspections.

(iv) Suppliers: establish controls to avoid conflicts of interests in purchasing processes, guarantee equal opportunities for all suppliers, encourage fair competition and award contracts objectively.

(v) Communities: contribute to the social, technological and economic development of the country, make investments, create Jobs to enhance the quality of life for it’s citizens, while seeking collaboration in civic and non-profit organizations and expressing our commitment in every action to sustainable development and environmental protection.

The implementation of our Business Principles is coordinated by the Office of Business Principles, which was created to divulge, promote and supervise the correct observance of these principles. With the purpose of keeping our employees duly informed and to raise awareness on the importance of relying on these principles for any and all decisions taken within the Group, the employees are given an on-line training course on Formation of Business Principles. Those who pass this course shall be given a “Certificate” of Achievement, valid for 2 years, after which period they will have to retake the course.