1 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Social Responsibilities of Telecom Companies: Italian Perspectives and Efforts by Telecom Italia

2 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Corporate Social Responsibility in Europe 1.European Council in Lisbon. Summit (2000) 2.Promoting an European framework for Corporate Social Responsibility. Green Paper (2001) 3.Communication on Corporate Social Responsibility. A business contribution to Sustainable Development (2002)

3 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR 1. Third European Conference on CSR. The role of Public Policies in promoting CSR. (Venice, November 2003) 2. Multi-Stakeholder Italian Forum for the CSR (2004) 3. Underwrite protocols with associations of entrepreneurs and workers for the spread of the CSR Corporate Social Responsibility in Italy

4 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Corporate Social Responsibility

5 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR The main objectives for the Italian Ministry of Welfare are: Objectives Diffusion of CSR culture and exchange of good practices Create a set of indicators for measure the performance on CSR (Social Statement) Support little and medium companies for the development of policies and strategies on CSR Support the exchange of good practices among the European States

6 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Social Statement (SS) Company Human Resource Environment and natural resource Local communities State and Public Administration Business Partners Suppliers Consumers Shareholder

7 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Telecom Italia and CSR  From 1996, Telecom Italia has been publishing an account to analyze the stakeholders satisfaction  From 2001, in a particular section of the balance sheet, Telecom Italia has shown its own “non-financial” performance with the financial one.

8 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Results 1.The Global Reporters 2004 Survey 2.Dow Jones Sustainability World Indexes (DJSI World) 3.Dow Jones STOXX Sustainability Indexes (DJSI STOXX)

9 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR System Legislation Working relationship between employer and worker is regulated by: Civil code and others laws; National collective labour agreement; Company collective labour agreements; Individual contract of employment. e.g.: The labour law (art. 18 L. n. 300/70) foresees the nullity of any unfair dismissal and the individual contract of employment can not foresee something different.

10 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Collective labour Agreements Among others Telecom Italia has stipulated three important collective labour agreements with the Trade Union Organizations. The collective labour agreements are of: 28 March May November 2004

11 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Agreement of 28 March 2000 Tools for reduction of 13,500 employees: Consensual Agreement or incentive towards early retirement Corporate lay off Incentive dismissal Agreement to reduce working time for the employees Industrial Relations Protocol Monitoring Mechanisms for the labour part of the CSR with the Trade Unions

12 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Industrial Relations Protocol Strategic Forum Commissio ns Training Equal Opportunities Welfare Observatorie s System Legislation evolution Local communities Market and Competition

13 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Agreement of 27 May 2002 Guide lines about investments, business and other questions to apply in each company; Definition about the core business of each company; The outsourcing programs must be coherent with the corporate policy organization; Confirmation about the tools for dismissal of employees which were approved in the agreement 28 March 2000.

14 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Focus on Outsourcing Each company of the Group outsources some minor activities of business. The labour laws foresee for each outsourcing: Information to the Trade Union Organizations (Art. 47 L. n. 428/90) Regulation the working relationship between the ex employees of Telecom Italia and the new employer (Art c.c.)

15 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Agreement of 12 November 2004 On November 12, 2004, Telecom Italia signed an important collective labour agreement with the Trade Union Organizations which foresees a system of guarantees for the employees transfered with the activities of the company which have been sold off. For examples, the guarantees are : preservation of the National collective labour agreement for the telecommunication operator exam of the right application of outsourcing program setting up of a new observatory on outsourcing

16 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Policies and strategy on CSR  Project Woman  Workers satisfaction and internal communication  Assilt and Cralt  Job Security  ILO Conventions

17 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Project Woman is a program for the individualization of initiatives in favour of professional growth of women and the diffusion of the equal opportunities withing the Telecom Italia Group, the following activities:  Creation of an internet portal dedicated to the project, adjourned with the activities promoted for the employees and full of information related to maternity/paternity and to the growth of their children  Supply loan in aid of mothers the introduction in the business calendar of Children’s Day and the organization of numerous initiatives in favour of children of employees  Introduction of the service of on-line shopping  Greater facility for part-time to be able to reconcile private life with working appointments.  Management politics are being studied to facilitate the re-entry in the Firm of employees after maternity leave and the opening of nurseries in some business centers. Project Woman

18 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Workers Satisfaction and internal communication  Project “Work atmosphere”  Noi.Magazine  a magazine dedicated to the employees  Noi.Portal  internet portal dedicated to the employees with information about projects, activities and work  HR Newsletter  newsletter dedicated to the HR workers

19 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Assilt and Cralt  ASSILT  Association for the sanitary attendance for the workers who beyond distributing reimbursements for sanitary performances it carries out campaigns of preventive medicine and of sanitary education  CRALT  Recreational circle that organizes character initiatives tourist, sport and cultural

20 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR Job Security  Project “Work Environment” turned to guarantee the garrison of the topics of work environment with the labour law principles.  Project “well-being in the call center” turned to verify the relative topics to the health of the workers in the call center

21 Turin, 8 June 2005 Marco Conti Policies and Strategies of Telecom Italia on CSR ILO Conventions Although Telecom Italia has not endorsed the Universal Declaration of Human Right or the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy or other similar charters, the company observes all the Italian’s labour law. The juridical system guarantees all workers equal right, guardianships and the therefore to oppose any possible form of discrimination. In fact the principle law that protects the workers foresees, for examples, the nullity of any action (change of duties, promotions, transfer) directed by political discrimination, religious, racial, language, sex, handicap, age or based on sexual tendencies.