Vodacom
Sustainability
Strategy
Transforming
societies and enabling
sustainable living for all
Contents
About this strategy: a message from our Leadership
1
Methodology
5
The context of sustainability and business
7
Vodacom's strategic sustainability priorities
10
Strategy implementation and next steps
20
Further Information
23
About this strategy: a message from our
Leadership
Integrating sustainability into business strategy
Embedding sustainability in the way we do business
At Vodacom, our sustainability journey is our business
journey. We do not see sustainability as separate to
our core business, nor do we see it as a discrete set
of issues that need to be ‘managed’. Rather, we
continue to unlock value in our business by using it as
a lens through which to identify the risks and
opportunities that affect our ability to continue to add
value to our stakeholders and to fulfil our purpose.
This belief is what has informed the approach to this
sustainability strategy, and I trust that you will see the
link between our business and the strategic
sustainability priorities contained in this document.
We live out Vodacom’s commitment to sustainability
through the decisions we make and actions we take
on a daily basis. The sustainability priorities contained
in this document guide the issues that we dedicate
our attention to because they are important to our
stakeholders and our business strategy. It is my hope
and intention that the initiatives we invest in and the
actions we take flow from these priorities to live out
our commitment in everything we do.
There are a number of practical pillars that support
the strategic sustainability priorities contained in this
document. We are embedding key performance
indicators into the various aspects of how we manage
our business. We are also enhancing our ability to
track the impact of the different initiatives and to
report back to stakeholders on our performance.
Finally, we continue to search for partnerships that
provide opportunities to create shared value through
various initiatives.
Our industry is fast-paced and exciting, with an everincreasing rate of change and increasing complexity.
The issues that matter to our business and our
stakeholders will continue to evolve, as will our
strategy to deal with them. The priorities and
initiatives contained in this document will live and
grow with these changing times, and it this flexibility
is built into the design of the strategy process. We will
continue to engage our people and external
stakeholders for the issues that matter most to them,
and develop a response that moves our business
forward and fulfils our purpose in society.
I would welcome any feedback on this document and
contributions on how to take our sustainability
journey even further.
Maya Makanjee
Head, Corporate Affairs
I encourage you to engage with the sustainability
priorities contained in this document and to share
your views on our strategy with me or any member of
my Executive team.
Shameel Aziz Joosub
Chief Executive
Vodacom Sustainability Strategy
1
Executive Summary
Background and objectives of the strategy
This document sets out Vodacom’s approach to managing the business risks and opportunities presented by
sustainability issues. It presents the outcome of a structured process undertaken to identify the most material
sustainability issues for Vodacom, distil them based on the importance of the issues to the business strategy and
key stakeholders, and present them in the form of strategic sustainability priorities that represent risks and
opportunities for the business. In doing so, this strategy is intended to guide the integration of sustainability
issues into business strategy, and to function as a living document that is constantly updated to reflect the most
pressing issues in the external environment that can affect the business.
Methodology adopted in developing the strategy
To place Vodacom on the journey to achieve the alignment between sustainability issues and the business
strategy, this document has been developed using a structured approach that uses the same tools that inform
the manner in which we set the objectives for our business, run our operations and report on our performance.
The process of developing this strategy involved four key steps, namely; identifying the inputs that would feed
into the strategy, collecting data from the various sources that represent the different inputs, analysing the data
using a set of defined criteria, and developing a set of strategic sustainability priorities. The following graphic
summarises these steps.
Context of the strategy
The importance of recognising the impacts of sustainability issues on the business in the form of a strategy
document is reflected in how the business environment has evolved in the past 20 years, and how it is expected
to get more uncertain and complex as a result of sustainability ‘megaforces’. These megaforces are seen to drive
unprecedented risks and opportunities for business, requiring a response that considers the strategic implications
of these changes. The following graphic summarises the megaforces that are used to explain the context of
sustainability and business.
Vodacom Sustainability Strategy
2
Strategic sustainability priorities
The outcome of the process adopted in developing this document is a set of ten strategic sustainability priorities.
These are framed as the actual risks or opportunities presented by the most material issues and are explained in
terms of their importance to Vodacom’s key stakeholders, the impact on the business, and the current and
planned activities that make up the strategic responses in each case. The following graphic summarises the set
of ten strategic sustainability priorities as set out in the figure that follows.
Vodacom Sustainability Strategy
3
Strategy implementation and next steps
This strategy document is intended to be the coordinating point for the various initiatives that make up the
strategic response to each of the sustainability priorities. It is intended to be a living document that evolves as
the landscape of our business changes and the objectives we set for ourselves move in line with the changing
competitive situation. The strategy is brought to life and operationalized through an implementation plan for
translating the strategy into action, and the different steps of the implementation plan have been outlined in this
document.
Vodacom Sustainability Strategy
4
Methodology
This strategy has been developed through a structured process designed to place sustainability firmly within the
context of the overall business strategy. Issues that would fall within the realm of sustainability should not be
seen as distinct or in any way removed from the core business. Sustainability represents a lens through which to
view the risks and opportunities that a constantly changing external environment presents our company. To place
Vodacom on the journey to achieve this alignment, this strategy has been developed using the same tools that
inform the manner in which we set the objectives for our business, run our operations and report on our
performance.
The process of developing this strategy involved four key steps, as follows:
1. Identifying the inputs that would feed into the strategy: at the outset, the various tools and frameworks that
guide the way we govern our overall business were identified to start from the same point of departure as
the business strategy. Four key sources of inputs emerged as the key building blocks; the external business
environment, the issues that our stakeholders consider most material to them, the business strategy as we
have articulated it at present, and the principles of our Enterprise Risk Management (ERM) process.
2. Collecting data from the various sources that represent the different inputs: the process involved consulting
widely from a number of different sources to gather the data that would form the basis for defining our
sustainability priorities. In some cases, these sources were external to the company, such as an extensive
media search and a review of local and international thought leadership on business and sustainability. In
other instances, the sources were internal documents, such as Vodacom’s integrated report and
corresponding supplementary reports.
3. Analysing the data using a set of defined criteria: the bottom-up process of data collection produced a ‘long
list’ of issues that could potentially be material to the company. Subsequently, a structured process was used
to analyse the data and distil the most critical issues using a materiality filter. This filter was made up of
three primary components that made up the criteria against which each of the long-list of issues were
analysed to determine their relevance. The components included; relevance of the issue(s) to the sector,
importance to stakeholders, and impact on the business strategy.
4. Developing a set of strategic sustainability priorities: the process of distilling our most material issues using
the defined criteria produced a set of ten strategic sustainability priorities. These priorities represent the
actual risks or opportunities presented by the sustainability issues and explain the relevance of the issue to
our stakeholders, the impact on our business and our current and planned strategic response.
Figure 1 provides an overview of the methodology followed in developing the strategy and how the various steps
fit together.
Vodacom Sustainability Strategy
5
Figure 1: Overview of the methodology to develop the sustainability strategy
The rest of this strategy document is structured as follows;

The following section on ‘the context of sustainability and business’ provides a macro perspective and an
international view of how the telecommunications sector and the broader business environment is evolving.
This provides the backdrop against which the sustainability priorities are set out to demonstrate the
integration between our business strategy and our most important sustainability issues.

This is followed by an explanation of the set of ten ‘strategic sustainability priorities’ that make up the core
of this strategy document. These priorities are framed as the actual risk or opportunity that the sustainability
issue(s) present to our business. These are explained in terms of their relevance to our stakeholders, the
impact on our business, and the current activities and planned initiatives that make up our strategic response.

This strategy document is completed by a short section on ‘strategy implementation’ which provides a
summary of the process by which this strategy is operationalized in the business. This strategy is meant to
be a living document and to evolve as the context of our business, the needs of our stakeholders and the
objectives and manner in which we run our business evolve.
Vodacom Sustainability Strategy
6
The context of sustainability and business
This section provides the high-level context of this sustainability strategy. It provides a macro perspective on how
the broader business environment has changed and what this means for the manner in which we conduct our
business. It is intended to demonstrate how issues that fall within the realm of sustainability are core to the way
in which international business takes place. There are many specific implications flowing from the megatrends
highlighted in this section that are specific to our industry and the regions in which we operate. These are
emphasised in the section that follows on our strategic sustainability priorities.
This section is split into three broad themes; how the world has changed, the megaforces shaping the business
environment, and the strategic implications for business.
1. How the world has changed
Our business today operates in an ever more interconnected and globalized world. Consumer demands and
government policies are changing rapidly, requiring us to be more nimble and flexible than ever before to
capitalise on the opportunities or else risk getting left behind. Technology is changing rapidly and constantly
innovating is a pre-requisite for survival at the least and a source of defendable competitive advantage if
appropriately managed.
Against this background of complexity we face a new set of challenges. For 20 years or more we have recognized
that the way we do business has serious impacts on the world around us. Now it is increasingly clear that the
state of the world around us affects the way we do business. Figure 2 provides an overview of selected indicators
that define the socio-economic context within which international business takes place.
Figure 2: how the world has changed
Whilst some of these indicators may seem far removed from our core business, they govern the overall context
within which our sector and company operates. It is important to recognise these macro changes and to
subsequently downscale them to the specific impacts on our sector and our operations.
Vodacom Sustainability Strategy
7
2. The megaforces shaping the business environment
Over the next 20 years, businesses like ours will be exposed to hundreds of environmental and social changes
that could bring both risks and opportunities in the search for sustainable growth. These can be summarised in
the form of ten ‘megaforces’ that will influence the manner in which business is conducted and how companies
interact with their stakeholder. In addition to the prominence of environmental issues, these megaforces reflect
transformative changes in the socio-economic structures of societies and highlight critical elements of poverty,
unemployment and inequality that are so critical to developing countries today. Figure 3 sets out the set of ten
megaforces that can be seen to be shaping the future business environment globally.
Figure 3: sustainability megaforces shaping the business environment1
Each has important implications for our business which must be understood, assessed and built in to long-term
strategic planning. These megaforces do not function in isolation from each other in predictable ways. They act
as a complex and unpredictable system, feeding, amplifying or ameliorating the effects of others. As we progress
on our sustainability journey, our challenge is to understand how these megaforces function and how they might
affect Vodacom.
3. Strategic implications for business
Depending on the specific context within which the megaforces play out and the response from an organisation,
the same trend(s) can present both risks and opportunities. Figure 4 demonstrates this by highlighting the types
of risks and opportunities that typically flow from these megaforces.
1
Source: KPMG report ‘Expect the Unexpected’
Vodacom Sustainability Strategy
8
Figure 4: risks and opportunities from sustainability megaforces2
The next section which defines out strategic sustainability priorities frames our most material issues in the
specific risks or opportunities they present to our business.
2
Source: KPMG report ‘Expect the Unexpected’
Vodacom Sustainability Strategy
9
Vodacom's strategic sustainability
priorities
This section presents Vodacom’s strategic sustainability priorities. These represent the specific risks and
opportunities that sustainability issues present to our business. These have been determined by following the
process outlined in the Methodology section of this document. In this section, an overarching framework for the
sustainability priorities is followed by a detailed explanation of each priority, including why it matters to our
stakeholders, how it affects our business and what we are currently doing and planning to do that makes up our
strategic response.
Overarching framework for sustainability priorities
Our vision is to transform societies and enable sustainable living for all.
We create value in the economies in which we operate. Our network transfers information, enables
communication and facilitates business activities. Recognising the impacts of sustainability issues on our
business is key to ensuring that we adequately consider the risks and opportunities that would influence our
ability to create and sustain value now and into the future.
The process outlined in the Methodology section of this document resulted in the formulation of ten strategic
sustainability priorities, represented in figure 5. The order in which they are presented in this document does not
reflect any means of prioritisation, as each of them is considered material to the business strategy and the needs
of our stakeholders.
Vodacom Sustainability Strategy
10
Figure 5: Vodacom’s strategic sustainability priorities
The sections that follow explain each of our strategic sustainability priorities by providing the context for why the
issue matters to our business and stakeholders, and how we are responding to the risks and opportunities which
are presented.
1. Deliver exceptional network quality
The context
Our network is the backbone of our business. The quality of our network allows us to distinguish ourselves from
our competitors. It allows us to attract new customers and also ensures that we retain our existing customer
base. Additionally, with governments and regulators starting to focus more on quality over tariffs alone,
maintaining our network quality allows us to retain our license to operate without interruption. Further, as we
Vodacom Sustainability Strategy
11
endeavour to increase our network access, we are also provided an opportunity to develop innovative network
solutions in rural areas.
Our strategic response
To deliver exceptional network quality, we are:

Securing access to additional spectrum as data usage escalates;

Renewing our radio access network (RAN) to add single RAN (SRAN) and software defined radio (SDR)
technologies to our network. SRAN allows us to accommodate 2G, 3G and LTE on the same base station; and
together with SDR we are able to upgrade our network to newer technologies such as LTE. The RAN renewal
programme also improves energy efficiency, drives down operational cost and helps us expand our data
coverage;

Enhancing our transmission network by installing base stations with fibre-optic cables and high speed IPmicrowave transmission. These initiatives will support the RAM renewal programme;

Modernising our core network technologies across both voice and data to enhance resilience and increase
core network capacity, simplify our network and pre-empt the IP-multimedia subsystem. This will prepare us
for the introduction of Voice over LTE (‘VoLTE’), which is the next step in the evolution of our network; and

Introducing solutions which allow us to analyse our customers’ data and recommend personal value-added
services.
2. Deliver superior customer value and protect our customers’ data and privacy
The context
Our customers are the reason why we exist. It is critical that we provide the highest level of customer service and
continuously increase the value we bring to our customers’ lives. This will allow us to maintain and grow our
position in an increasingly competitive landscape. We are also responsible for protecting our customer’s data,
particularly as we analyse more of our customer’s data to recommend personal value-added services, and enable
customers to transact and exchange sensitive information over mobile networks. In particular, with data being a
key growth driver for our organization, it is important that we create a safe and secure mobile environment to
ensure the safety and security of this increasingly valuable asset. This will reinforce our customers trust and
loyalty in Vodacom as their preferred network service provider.
Vodacom Sustainability Strategy
12
Our strategic response
To deliver superior customer value and protect our customers’ data and privacy, we are:

Expanding our business insight and analytics capability by introducing next best offer prediction, allowing us
to analyse customer data and recommend personalised value-adding services to customers through various
channels;

Planning to consolidate our customer-facing systems to ensure a consistent customer experience regardless
of the interaction channel;

Introducing new online capabilities that exploit interaction channels such as social media, which allow for
more personal interaction with our customers;

Enhancing our current self-service functionality with a focus on mobile self-service through the ‘My
Vodacom’ application available for download on smartphones;

Implementing international security best practice in all our operations, to the same standard as the Vodafone
Global Security Operations Centre; and

Maintaining an information services system that is secure and allows our customers to enjoy an unmatched
experience.
3. Continue to innovate in the way we do business
The context
The Information, Communications and Technology (ICT) sector has grown and evolved exponentially over the past
few decades. It is a solution provider to other industries, improving access to information, facilitating innovation,
and allowing for the development of new products and markets. The opportunity for this sector to provide value
adding services in areas which do not have access to fixed-line telephony is immense
Innovation is core to our business. It allows us to operate in smarter and more efficient ways, and continue
generating value for our stakeholders. Innovation is key to developing solutions that address the needs of our
various customers, and allows us to stay relevant. It encourages customer loyalty and furthers our market
penetration
Our strategic response
To continue to innovate in the way we do business, we are:

Empowering our people to use their skills, talents and resources for the development of new products and
services as well as simplifying and improving existing systems and processes to continue to strengthen our
competitive position.

Embedding a culture where the attributes of speed, simplicity and trust are our overarching guiding principles
for how we work, including when identifying areas of process improvements through the ‘Red Card project’
designed to weed out red tape and inefficiency in our business;
Vodacom Sustainability Strategy
13

Supporting our Innovation team, which is our thought leadership hub of our business and the core structure
to enable the commercialisation of innovation in the business;

Promoting the ‘Catalyst project’ to leverage social media to provide our employees with a platform to develop
and share ideas on processes, systems and products that help us retain or grow our competitive advantage;

Providing channels for reward and recognition of innovations that have a meaningful impact on our business,
including ‘On the Spot’ awards, CEO Awards and Excellence Awards; and

Constantly reviewing the various initiatives designed to promote innovation to ensure their effectiveness and
relevance to our people.
4. Increase penetration in existing markets and expand into new markets
The context
The sustainability megaforces of population growth, wealth and urbanization are creating unprecedented
demand for telecommunication services in the future. These megaforces are driving a market in which billions
more young people seek connectivity, consumers in emerging economies have more money to spend and more
people live in cities where telecommunications infrastructure is most easily available. With six of the top ten
fastest growing economies located on the African continent, the opportunity for expansion into new markets and
growth in subscribers is a key strategic priority for Vodacom. In more mature existing markets such as South
Africa, the opportunity to deepen penetration provides the greatest opportunity for growth. Increasing the
services offered to each client across different platforms and mediums is core to adding value as a service provider
and to growing our revenue base.
We aim to grow the number of customers whose lives we touch. This can be achieved by encouraging our existing
customers to use other Vodacom products and services. It can also be achieved through expanding into new
markets such as Africa, where the demand for cellular communications and mobile internet access continues to
grow.
Our strategic response
To increase penetration in existing markets and to expand into new markets, we are:

Continuously searching for opportunities to expand into new markets on the continent and increase our reach
into under-served markets;

Deepen our penetration in mature markets by enabling the proliferation of smartphones, improve the
affordability of value-added services and enhance data coverage;

Grow our business in the Enterprise market segment through the introduction of new services such as fibre
to the home and fibre to the office; and

Promote the development and uptake of mobile-enabled lifestyle services such as life and non-life insurance,
mobile money and mobile health.
Vodacom Sustainability Strategy
14
5. Manage the environmental footprint of our business
The context
Our business operates in an increasingly resource constrained world. In delivering services to customers and
managing our operations, we consume natural resources such as energy, minerals and water. We generate
carbon emissions, have an impact on the generation of electromagnetic radiation, and the construction of our
network infrastructure has a local environmental impact. It is important that we understand our cradle to grave
environmental footprint, from the production of our products and the provision of our services, to the disposal of
our network and electronic waste.
Our ability to proactively respond to a changing operating environment will influence our resilience as an
organization. We believe that we can provide innovative technological solutions to reduce operational energy
costs and carbon emissions, while providing products and services that help customers to live and work more
efficiently and flexibly.
Our strategic response
To manage the environmental footprint of our business, we are:

Leveraging existing management structures such as the Vodacom South Africa corporate environmental
policy and bi-annual reporting of key environmental data to Vodafone group to drive strategies and actions
to manage our environmental footprint;

Assessing alternative energy options, including commercially-viable renewable energy technologies which,
besides reducing our carbon emissions, will help us serve remote areas;

Setting short-term targets to reduce Vodacom’s carbon emissions by 5% per base station site per year. This
will be achieved by investing in new technologies, free cooling, and using alternative energy sources such
as generator-battery power hybrid units, and wind and solar generation for remote base station sites;

Supporting technological solutions which have the potential to replace traditional, carbon-intensive methods
of doing business, such as cloud computing, video conferencing and machine-to-machine transactions;

Developing a policy standard to ensure the consistent application of processes, procedures and governance
for the management of electronic waste from our operations and universal adherence to our preferred
methods of dealing with waste in the following order of priority; prevention, minimisation, reuse, recycling,
energy recovery and disposal;

Engaging with our stakeholders to provide education and raise awareness, and manage local concerns
around mobiles, masts and health, as guided by the strategy, policies and goals set by the Vodafone Board
on Radio Frequency;

Reinforcing our commitment to managing, designing, siting and constructing operational facilities with
minimal impact on the social, biophysical, cultural and historic environment; and

Ensuring that we follow the stringent guidelines we have set for identifying and decommissioning sites that
are no longer operational and adhere to specific conditions associated with in terms of the initial
environmental authorisation Record of Decision, including restoring and rehabilitating these sites to their
original state.
Vodacom Sustainability Strategy
15
6. Create and sustain value for the communities and markets in which we operate
The context
At a time when trust in business is at an all-time low, companies are facing increasing pressure to demonstrate
how they are creating and sustaining value in the economies in which they operate. With legal and moral
compliance converging, companies are being called upon to meet the spirit and not merely the letter of the law
when it comes to issues of payment of due taxes, compensation of employees and the development of local
communities.
We aim to create and sustain value. We operate in a number of different countries where our network transfers
information, enables communication and facilitates business activities. The value we create is shared with our
stakeholders. We provide salaries and wages to our employees, dividends to our shareholders, corporate taxes
to the governments in the countries in which we operate, support to communities, business to the providers of
financial capital and to our business partners. We are committed to furthering the transformation agenda in
South Africa and encouraging localization in the areas in which we operate.
Our strategic response
To create and sustain value for the economies in which we operate, we are:

Committed to transformation in South Africa by increasing black representation in our top management
categories and continuing the increase in the total training spend on black employees;

Strengthening our focus on preferential procurement, including increasing our spend on exempt micro
enterprises and qualifying small enterprises, and continuing our 15 calendar-day payment terms to qualifying
black-owned small, medium and micro enterprise (‘SMME’) suppliers;

Promoting enterprise development by investing 5% of Net Profit after Tax (NPAT) in enterprise development
activities; and

Investing in socio-economic development through investing 1% and 0.5% of Net Profit after Tax (NPAT) in
ICT-driven and general Corporate Social Investment (CSI) projects respectively.
7. Provide a stimulating and rewarding environment for our people
The context
Today’s young working population and the ‘Millenials’ search for greater meaning in their work and for a higher
purpose in their jobs, in addition to being rewarded and recognised fairly for their efforts. To create a productive
working environment that allows people to fulfil their potential, companies need to enable employees to find a
path that links their daily jobs with something that makes an impact on the issues that people feel passionately
about. At a more fundamental level, governments and citizens are increasingly concerned with ensuring the
protection of basic human rights, and this has important implications for the investment attractiveness in the
different regions that we operate in.
We depend on our people. We need the right people with the right skills to operate our business effectively and
create value. To do this we need to attract and retain the right people by creating a safe and rewarding
environment, and to create the right culture and environment where employees can thrive and have the freedom
to pursue their higher purpose through their work. We are also committed to employment equity to further South
Vodacom Sustainability Strategy
16
Africa’s economic development and to the protection and furthermost of human rights in each of the regions
where we operate
Our strategic response
To create a safe, stimulating and rewarding environment for our people, we are:

Continuously engaging our employees through a formalized process of regular performance management,
reward and recognition and monitoring & evaluation through our annual people survey;

Supporting our employees in managing their work-life balance and promoting all-round development through
a dedicated employee wellness Centre at our Midrand campus, a confidential employee counselling line and
various campaigns to create awareness of personal development issues;

Enabling the management of HIV and AIDS through education and awareness programmes, full and fair
application of our policy on fairness and non-discrimination, and protection and support for affected
employees;

Promoting equality and fairness in recruitment and performance management through the application of our
resourcing policy, which is designed to further these aims; and

Preventing unfair discrimination through the full, fair and objective application of our disciplinary policy,
ensuring equal treatment of employees irrespective of union membership, communicating standards of
acceptable behaviour and consequences of non-compliance to all employees, and ensuring the resolution of
all reported matters within five days as per our grievance policy.
8. Proactively engage with our key stakeholders
The context
Our business touches many lives and we have a wide range of stakeholders, with vastly differing views that are
important to the sustainability of our business. We operate in an industry constantly in flux and with everchanging risks and opportunities. Consequently, being able to pre-empt the changing needs of our stakeholders
in this dynamic environment is key to retaining and growing out competitive advantage. We believe that simply
answering and responding to our stakeholders is neither sufficient nor a fulfilment of our role as a responsible
corporate citizen. Rather, we undertake to proactively engage with our stakeholders to understand their needs
and take deliberate steps to fulfil our responsibilities.
A key element of our ever-changing environment is regulation which, when designed and implemented
appropriately, is a powerful tool to maximise the value that the sector generates for companies and their
stakeholders. However, there is a general increasing trend in the complexity of regulation across most sectors,
including in mobile communications. Complying with this growing body of regulation is often becoming more
onerous, and the costs of non-compliance are ever-greater.
As a telecommunications company operating in different countries, we need to comply with an assortment of
regulations. The regulatory requirements continue to evolve as we diversify to offer value added services in areas
such as health and financial services. It is important that we proactively engage with regulatory bodies to
understand, help to inform and respond to a changing regulatory environment.
Vodacom Sustainability Strategy
17
Our strategic response
To proactively engage with our key stakeholders, we are:

Guiding our interactions through our existing stakeholder engagement framework, which affirms our
standing commitment to build and manage our engagements with all our stakeholders and shapes our
interactions with each individual and group.

Leveraging our existing Future Agenda Seminar series to engage with our stakeholders through creating an
objective platform to discuss trends, future challenges and the importance of mobile technologies.

Engaging with regulators and governments through our specialist regulatory and government relations
teams, ensuring that their deep functional and industry expertise is leveraged for effective engagement with
government;

Actively participating in the development of industry regulations through written submissions and
attendance at formal hearings on legislative and regulatory changes; and

Leveraging the international experience and network of our parent company, Vodafone, to contribute to
policy development and ensure regulatory compliance.
9. Ensure the protection and furtherment of human rights
Despite unprecedented socio-economic progress around the world in the last half-century, there continues to
remain unacceptable levels of human rights violations in various parts of the world. The political turmoil and
economic challenges that continue to afflict many African countries create conditions where vulnerable and
marginalised communities continue to suffer violations of their inalienable rights. These challenges
notwithstanding, there are also many examples of positive developments in relation to human rights where
governments, business and civil society have worked together to enhance the interests of all members of society.
As an organisation with considerable reach and influence in developing countries, we believe it to be our
responsibility and mission to ensure the protection and furtherment of human rights in everything that we do.
To ensure the protection and furtherment of human rights, we are:

Ensuring the protection of the rights of all employees through the application of our Human Rights
Declaration that is based on the International Labour Relations (ILO) Protocol on decent work and working
conditions, covering the areas of; creating jobs, guaranteeing rights at work, promoting social dialogue, and
extending social protection;

Assessing our performance against various mandatory and voluntary standards like the Organisation for
Economic Cooperation and Development (‘OECD’), the International Labour Organisation (‘ILO’) and the
United Nations Global Compact (‘UNGC’).

Contributing to industry-level and national initiatives to enhance the protection of human rights in the
countries in which we operate in order to promote socio-economic development and enhance the investment
attractiveness of these regions.
Vodacom Sustainability Strategy
18
10. Embed the highest principles of corporate governance in the way we do business,
including the promotion of ethical practices and anti-corruption
The last two decades have seen the mainstreaming of formal codes of Corporate Governance into business,
particularly for listed entities. This is reflective of the increasing importance of companies living and
communicating the values by which they conduct their operations in line with the growing expectation for firms
to be responsible corporate citizens. In South Africa, the implementation of the King Codes of Corporate
Governance through the Johannesburg Stock Exchange (JSE) is a strong driver for the formal adoption of
Corporate Governance principles into business. At the same time, stakeholder pressure, public scrutiny and the
media have used ‘soft’ power and informal channels to direct companies to adopt and communicate the principles
that guide the way they do business.
We believe that embedding the highest principles of Corporate Governance in the way we do business is first
and foremost the right thing to do, and it makes clear business sense. We have a societal and moral obligation
to our stakeholders to run our business in a manner that creates value for society, promotes ethical practices,
and stimulates responsible behaviour from all individuals and organisations that deal with us. We believe that
doing so will not only help us run our own business better and more profitably, but will also enhance our
reputation and strengthen our competitive position as the preferred company to do business with.
To embed the highest principles of corporate governance in the way we do business, we are:

Operating our business based on the principles of the King III Guidelines, including the formation of the
necessary management structures such as Board Committees and sub-committees;

Continuously improving on our Integrated Reporting journey to provide our stakeholders with the most
complete, holistic and meaningful view of our business, the impact we have and the risks we face.;

Ensuring that all our employees are aware of and in compliance with our Code of Conduct at all times and
any incidents of non-compliance are dealt with in line with our Disciplinary Policy; and

Equipping our employees at all levels and in each of our subsidiaries with the information they need to protect
themselves and the company from the risk of corruption and bribery. This includes contact classroom
learning, virtual training and the communication of the Code of Conduct, which includes anticorruption/bribery;

Using our supply chain to promote ethical practices by screening potential suppliers for issues relating to
bribery and corruption, and requiring our business partners to provide assurance on their compliance with
Vodacom’s anti-corruption/bribery policy, including training of their employees on these matters, where
necessary;

Incorporating anti-corruption/bribery considerations into all due diligence assessments for target companies
as part of the Mergers & Acquisitions process and factoring in external governance and corruption factors
when evaluating any investment;

Conducting quarterly company risks assessments, including through the Internal Audit function to ensure
adequate response to key strategic risks posed by corruption and bribery, and implementing financial and
accounting procedures as internal controls to manage these risks;
Vodacom Sustainability Strategy
19
Strategy implementation and next steps
Our Sustainability Strategy describes our sustainability priorities and our strategic response to these issues. It
also sets the basis for defining how we measure our sustainability performance. The implementation of our
Sustainability Strategy is embedded in our business through the definition of key performance indicators and
targets, which allow us to monitor and assess how we are doing. Figure 6 outlines the different stages in strategy
and implementation at a high level and contextualizes the information contained in this document along this
journey.
Figure 6: Process of strategy development and implementation
Our immediate focus is to enhance the development of Key Performance Indicators (KPIs) across various aspects
of our business to track our performance and communicate the results. Figure 7 sets out an example of the output
of this process that we will build upon and refine further in order to embed these management tools.
Figure 7: Example output of developing key performance indicators
Sustainability Strategic Priority Strategic Response
Deliver exceptional network
quality
•
Deliver superior customer
•
value and protect our
customers’ data and privacy
Continue to innovate in the
way we do business
Vodacom Sustainability Strategy
•
Key Performance Area
•
•
Network quality
Customer experience
Data privacy
initiatives
•
Customer protection
policies and initiatives
Partner to
develop new
products
•
Innovative products/
solutions
RAN renewal
programme
20
Key Performance Indicator
•
•
Dropped calls
Speech quality
•
No. of complaints for
breaches of customer
privacy
•
No. customers per
product/service in
market segments
Sustainability Strategic Priority Strategic Response
Increase penetration in
existing markets and
expand into new markets
Expansion
programme
•
•
Infrastructure footprint
•
Markets served
Network coverage
•
Investing in free
cooling,
generatorbattery power
hybrid units,
wind and solar
for BTS
•
Environmental
impacts (Energy,
water, carbon,
infrastructure)
Environmental
initiatives
•
•
Carbon footprint
Water consumption
Develop
strategic value
added services
•
•
Direct and indirect
impact on economy
(VAS)
Redesigned
recognition
programmes
Employee
wellness center
•
•
•
•
LTIFR
Training hours
•
•
Provide a stimulating and
rewarding environment for
our people
•
•
Proactively engage with our
key stakeholders
•
Ensure the protection and
furtherment of human rights
Embed the highest levels of
corporate governance,
including the promotion of
ethical practices and anticorruption
Key Performance Indicator
•
Manage the environmental
footprint of our business
Create and sustain value in
the communities and
markets in which we
operate
Key Performance Area
•
•
•
•
Value added to
society
Vodacom Foundation
•
Health and Safety
Skills and succession
planning
Employee benefits
Regular
meetings with
regulatory
bodies
•
Regulatory challenges •
Assessing our
progress in
relation to
international
standards
•
Voluntary compliance
Undertake fraud
and corruption
risk reviews
•
Implement ethics
training and
initiatives
Ethics and corruption
incidents
No. of legal actions
•
Incidents of noncompliance
•
Business units
analysed for risks
related to corruption
This strategy document is intended to be the coordinating point for the various initiatives that make up the
strategic response to each of the sustainability priorities. It is intended to be a living document that evolves as
the landscape of our business changes and the objectives we set for ourselves move in line with the changing
competitive situation. The strategy is brought to life and operationalized through the various steps of the
implementation process outlined above. Progress according to this strategy will be communicated through the
Integrated Report and through the relevant Management Structures within the organisation.
Vodacom Sustainability Strategy
21
Further Information
For further information on sustainability at Vodacom, please visit our website
http://www.vodacom.com/com/aboutus/sustainability
You can also access this link on your smartphone through the following QR code.