sHAREd REspoNsIbILItY oN sustAINAbILItY
Transcription
sHAREd REspoNsIbILItY oN sustAINAbILItY
About our Report Contents 4 2009: Continuing the journey of sustainability 6 message from the Globe leaders 8 globe: Leading in Challenging times 14 shared responsibility on sustainability 15 living out the sustainability agenda 17 our commitment to ethical leadership 20 contributing to the nation’s growth 23 developing our people, enriching lives About our cover Globe continues on its mission of bridging communities. Programs are designed to harness the power of the internet to free the minds of young Filipinos everywhere, as well as promote the use of renewable sources of energy. Even as we are affected by our environment, we must know that we also have the power—and the responsibility—to change it. This report shares how Globe helped realize this change in the country in 2009. 28 sustaining a healthy and safe workplace 30 sustaining the environment 35 building communities, Bridging Communities 42 globe bridgecom and the millenium development goals 43 recognition from our stakeholders 45GRI Index 2 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report This report covers the year 2009, the second Globe corporate social responsibility and sustainability report. We have also included some significant developments from the first half of 2010. It highlights major initiatives and programs across the organization which show our journey in integrating sustainability in our business. As in many years past, we continue to have a section of our CSR and sustainability initiatives in our annual report. Last year, when we published our first report (self-declared C-level), we realized that expressing clearly our approach and impact to the triple bottomline through a separate report will strengthen our systems and structures to help meet our responsibilities to society and our stakeholders while delivering shareholder value. This report is compliant with the internationally recognized guidelines of the Global Reporting Initiative (GRI) G3 on profile indicators covering strategy and analysis, organizational profile, report parameters, governance and commitments, stakeholders’ engagements and relevant performance indicators covering our material CSR activities from January 1, 2009 to December 31, 2009 (unless otherwise stated). This report covers Globe and its subsidiaries in the Philippines. We commit to publish our sustainability report on an annual basis. This is a self-declared B level report. The scope of this report has been determined by available data and metrics tracked by the different customer facing units as well as our business enabling groups. Aside from our business strategies, we have considered various stakeholder engagement activities in selecting the material sustainability issues in this report. We have also considered national issues affecting the telecommunications industry and included comments by various stakeholders. We will continue to strive to measure appropriately the impact of our CSR and sustainability programs and include more performance indicators to allow these initiatives to be more strategically aligned to our core business. We will also elevate our reporting practices to meet higher GRI application levels and seek independent third party assurance on our report in the future. Details of Globe Telecom’s financial performance and operating results for 2009 are discussed in the 2009 Annual Report which is available in the Company’s website, www.globe.com.ph alongside the Company’s previous annual reports. We appreciate feedback from our different stakeholders to help us understand better how our programs impact the business and society and how to communicate the work we have done. To send feedback on this report, please email [email protected]. 2009: Continuing the Journey of Sustainability May March January Globe BridgeCom launched awards for outstanding soldiers of the Armed Forces of the Philippines; Text2Teach was launched in the Province of Isabela. Globe won two awards in the Global CSR Summit Awards in Singapore; Community consultations with various stakeholders across the entire Philippines began. April Globe received two Kapatid Awards for its human resources and social accountability practices; Globe BridgeCom provided entrepreneurship opportunities for families of Overseas Filipino Workers. February Globe BridgeCom co-hosted Cebu Education Expo; Education stakeholder consultations across the country begins. August July Globe and the United States Agency for International Development connected six public schools in Zamboanga City to the Internet via WIMAX. Globe completed an employee volunteerism program which distributed 35,000 books to poor public schools nationwide; Globe BridgeCom launched an entrepreneurship fair for young Filipinos. 4 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Globe completed its Greenhouse Gas Accounting activity; Sagot Ka Ni Kap! Program was expanded to include rewards for peace and governance sustainability. October September Globe launched “Bangon Pinoy” – a massive disaster relief operations and community rebuilding program after the devastation of Typhoons Ondoy (International name: Ketsana) and Pepeng (Internaional name: Parma) in Luzon. Globe published “Bridging Communities” – its first CSR and sustainability report following the GRI standards. It is the first GRI report by a telecommunications company in the Philippines. June Globe BridgeCom worked with the Department of Education in a national program to connect public schools to the Internet; Globe BridgeCom won in the Management Association of the Philippines’ CSR Challenge. December November Globe hosted the first SingTel Regional CSR Forum in Manila; Globe and Optus Australia partnered to bring ICT support for a school in Cavite; Globe won in the American Chamber CSR Excellence Awards. Globe was cited in the Asian Sustainability Rating and was awarded by the Asset Magazine with a Platinum Award for allaround excellence in Financial Performance, Management, Corporate Governance, Corporate Social Responsibility, Environmental Responsibility and Investor Relations. Your cutting-edge, state-of-the-art, top-of-its-class, high-end mobile is only as good as the network it’s on —and the company behind it. Globe receives the Asset Platinum Award for all-around excellence. Excellence in financial performance, management, corporate governance, social responsibility, environmental responsibility, and investor relations— that’s what the Asset Platinum Award is all about. It is the highest corporate award given by one of the most respected companies in Asia, measuring both growth and social objectives. Globe is honored to be recognized for its excellence, and is further driven to provide you excellent products and services. Connect to Globe now—and see how your business can be better. www.globe.com.ph BlackBerry®, RIM®, Research In Motion®, SureType®, SurePress™ and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. © 2010 Globe Telecom, Inc. ASC Ref . No. G116P042710C Message from the GLobe Leaders Our second Corporate Social Responsibility and Sustainability Report carries the theme “Realizing Change” which reflects Globe Telecom’s concrete efforts in integrating sustainability in its business strategy and vision for society. In our first report last year, we expressed our commitment to sustainable development by conducting our business and relationship with our stakeholders responsibly and in ways that contribute positively to the lives of our employees, to the environment where we operate, and to our country’s future. In the same year, we also connected more than 1000 public high schools to the Internet--the most that any telecommunications company in the country has done in a year to date. This benefited millions of marginalized students and teachers and gave them the opportunity to expand their knowledge with access to the world wide web. By innovating and adopting new technologies, we have also launched first-in-market products and services that are value-enhancing to the lives and livelihood of our various stakeholders. This year’s report outlines our sustained efforts in realizing this commitment by providing relevant and life-enhancing communications products and services. We believe that by delivering superior customer experience, ensuring a reliable network service, providing accessibility and ease of use for mobile commerce or by providing opportunities to microentrepreneurs, we fulfill our fundamental role of keeping Filipinos in touch with their families and being a key enabler in their livelihood to help realize their dreams and aspirations. We believe that the advocacy for social responsibility starts from within our corporate offices and our business practices. At the most basic and fundamental level, our commitment to our employees’ development, to achieving operational efficiencies, to the continued success of our business, while recognizing our impact on the environment, form the foundation of our sustainability strategy. By developing our people and institutionalizing resource-efficient infrastructures and processes, we, in good measure, made in-roads in developing our country’s local talents and in helping create a low carbon society. We harnessed our core competency in information and communication technology to develop business solutions that address some of the social challenges we face. Specifically, we operationalized Globe BanKO in 2009--the first mobile microfinance bank in the country that provides financial services to microentrepreneurs in the countryside. Sustainability through the Years We are inspired by the recognition we received after we released our first Global Reporting Initiative (GRI)-based sustainability report in 2009. The Asian Sustainability Rating ranked Globe #9 in the Philippines and #97 in the Asia lists. The Asset Magazine recognized Globe with a Platinum Award 1998 Integrated our approach in CSR to the business strategy by providing public calling centers in remote areas during our network expansion program. 6 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report for all-around excellence in Financial Performance, Management, Corporate Governance, Corporate Social Responsibility, Environmental Responsibility and Investor Relations. Finance Asia Magazine, likewise, recognized our accomplishments in Corporate Social Responsibility. These honors motivate us to further raise the bar of performance in sustainable development. We certainly take our social responsibility to heart and recognize that our stakeholders expect no less. This necessarily entails active involvement in public service and requires transparency in reporting as well as proactive communications to our stakeholders. We endeavor to meet global standards in these aspects, as this report does, by complying with GRI standards and the Asian Sustainability Rating in the measurement of our progress in employing sustainable business practices. We thank the people and various departments in the company that made significant contributions to our sustainability endeavors, particularly our CSR and Sustainability Council which oversees all these initiatives. This is a continuing and growing commitment which we hope to fulfill with the support of our shareholders, customers, employees, business partners and our immediate communities. JAIME AUGUSTO ZOBEL DE AYALA Chairman of the Board of Directors 2003 Established our Safety, Health and Environment policies and procedures to promote sustainability in our operations. 2004 Globe Bridging Communities (Globe BridgeCom) was born to integrate all our strategic community investment programs and align them with business strategies. ERNEST L. CU President and Chief Executive Officer 2007 Focused on utilizing the company’s core competencies in our CSR programs to make technology more relevant to areas like education, entrepreneurship and the environment. 2008 Released our first CSR and sustainability report following the Global Reporting Initiative standards. THE GLOBE WAY We put our Customers first. Our people make the difference. We act with integrity. We care like an owner. We keep things simple. To us, it’s be fast or be last. I Love Globe. Together, we make great things possible. Our Services Globe: Leading in Challenging Times Globe Telecom, Inc. (Globe) is a major provider of telecommunications services in the Philippines, supported by over 5,000 employees and over 700,000 retailers, distributors, suppliers, and business partners nationwide. Globe operates one of the largest and most technologically-advanced mobile, fixed line and broadband networks in the country, providing reliable, superior communications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients. Globe is a stock corporation organized under the laws of the Philippines and enfranchised under Republic Act (RA) No. 7229 and its related laws, as well as a grantee of various authorizations and licenses from the National Telecommunications Commission (NTC). Our principal executive offices are located at the 5th Floor, Globe Telecom Plaza, Pioneer Highlands, Pioneer corner Madison Streets, Mandaluyong City, Manila, Philippines. We are listed in the Philippine Stock Exchange (PSE) and have a market capitalization of US$2.6 billion as of 2009. At the end of 2009, Globe has over 23 million mobile subscribers, over 700,000 broadband customers, and almost 600,000 landline subscribers. It is one of the leading providers of digital wireless communications services in the Philippines under the Globe and Touch Mobile (TM) brand using a fully digital network. 8 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report • We render any and all types of domestic and international telecommunications services including domestic and international long distance communication services. • We operate facsimile, other traditional voice and data services and domestic line service using Very Small Aperture Terminal (VSAT) technology. • We are licensed for inter-exchange services. • We are a grantee of a Certificate of Public Convenience and Necessity (CPCN) for international digital gateway facility (IGF) in Metro Manila, nationwide digital cellular mobile telephone system under the GSM standard (CMTS-GSM), and nationwide local exchange carrier (LEC) services. Business Segments Mobile Our principal shareholders are Ayala Corporation and Singapore Telecom, both industry leaders in the country and in the region. Aside from providing financial support, this partnership has created various synergies and has enabled the sharing of best practices in the areas of purchasing, technical operations, and marketing, among others. ShareholdEr PERCENTAGE OWNERSHIP Ayala Corporation 13.9% Singapore Telecom 21.6% Asiacom 54.5% Public Ownership 10.0% GLOBE HAS THE FOLLOWING SUBSIDIARIES (100% GLOBE-OWNED): Subsidiary PLACE OF INCORPORATION Innove Philippines G-Xchange, Inc. Philippines Entertainment Gateway Group Corporation Philippines EGGstreme Hong Kong Limited Hong Kong Principal Activity and Services Provides fixed line telecommunications and consumer broadband services, high speed internet and private data networks for enterprise clients, services for internal applications, internet protocolbased solutions and multi-media content delivery. Provides mobile commerce services under the GCash brand. Provides digital media content and applications. Provides digital media content and applications. GT Business Holdings Inc. Philippines Investment company GTI Corporation No Operations as of December 31, 2009* United States of America *In July 2009, GTI incorporated its wholly owned subsidiary, GTI Corporation (GTIC), a company organized under the General Corporation Law of the State of Delaware for the purpose of engaging in any lawful act or activity for which corporations may be organized under the Delaware General Corporation Law. GTIC has not yet started commercial operations as of December 31, 2009. 10 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Globe provides mobile communication services nationwide using a fully digital network based on the Global System for Mobile Communication (GSM) technology. It provides voice, data and value-added services to its mobile subscribers through three major brands: Globe Postpaid, Globe Prepaid and TM. Voice Globe voice services include local, national and international long distance call services. It has one of the most extensive local calling options designed for multiple calling profiles. In addition to its standard, pay-per-use rates, subscribers can choose from bulk and unlimited voice offerings for all-day or offpeak use, and in several denominations to suit different budgets. Data and Value-Added Services Globe data services include local and international SMS offerings, internet browsing and content downloads. Globe has introduced various bucket and unlimited SMS packages to cater to the different needs and lifestyles of its postpaid and prepaid subscribers. Additionally, Globe subscribers can send and receive Multimedia Messaging Service (MMS) pictures and video, or do local and international 3G video calling. Globe mobile browsing services allow subscribers to access the internet using their Internet-capable handsets or laptops with USB modems. Data access can be made using various technologies including 3G with HSDPA, EDGE and GPRS. Through Globe Telecom’s partnership with major banks and remittance companies, and using pioneering GCash platform, subscribers can perform mobile banking and mobile commerce transactions. Fixed Line Through Globe Business, the company offers a full range of fixed line communications services, wired and wireless broadband access, and end-to-end connectivity solutions customized for corporate and SMEs (Small & Medium Enterprises) and large enterprises. Globe Business provides end-to-end mobile and fixed line solutions and are equipped with their own technical and customer relationship teams to cater to the requirements of their specific client base. Voice Globe fixed line voice services include local, national and international long distance calling services in postpaid and prepaid packages through its Globelines brand. Subscribers get to enjoy toll-free rates for national long distance calls with other Globelines subscribers nationwide. Additionally, postpaid fixed line voice consumers enjoy free unlimited dial-up Internet from their Globelines subscriptions. Data Fixed line data services include end-to-end data solutions customized according to the needs of businesses. Globe product offering includes international and domestic data services, wholesale and corporate Internet access, data center services and segmentspecific solutions customized to the needs of targeted industries. In addition to bandwidth access from multiple international submarine cable operators, Globe also has two international cable landing stations situated in different locales to ensure redundancy and network resiliency. Its domestic data services include data center solutions such as business continuity and data recovery services, 24x7 monitoring and management, dedicated server hosting, maintenance for application hosting, managed space and carrier-class facilities for co-location requirements and dedicated hardware from leading partner vendors for off-site deployment. Broadband Globe offers wired, fixed wireless, and fully mobile Internet-on-the-go services across various technologies and connectivity speeds for its residential and corporate customers. Wired or DSL broadband packages bundled with voice or broadband data-only services are available at download speeds ranging from 256 kbps up to 3 mbps. In selected areas where DSL is not yet available, Globe offers a fixed wireless broadband service using its WiMAX (Worldwide Interoperability for Microwave Access) network as a costeffective alternative to wired broadband. Globe Brands, Products and Markets Served Globe Postpaid Professional and high spenders Globe Postpaid includes all postpaid plans such as regular G-Plans, consumable G-Flex Plans, Load Allowance Plans, Time Plans, Apple iPhone 3G plans and high-end Platinum Plans. 851,000 subscribers (end 2009) Subscribers who use mobile commerce Through GCash, subscribers can perform mobile banking and mobile commerce transactions which include international and domestic remittance transactions, pay utility bills and income taxes, avail of microfinance transactions, and donate to charitable institutions. Globe International Roaming Roaming International Globe Globelines Business and residential subscribers Travelers Globe offers wired, fixed wireless, and fully mobile internet-onthe-go services across various technologies and connectivity speeds for its residential and corporate customers. In selected areas where DSL is not yet available, Globe offers a fixed wireless broadband service using its WiMAX network. 715,000 subscribers (end 2009) Globe pioneered international roaming in 1995 and now has one of the widest networks with over 500 roaming partners in more than 200 calling destinations worldwide. Globe also offers roaming coverage on-board selected shipping lines, airlines and via satellite. GlobeAutoloadMax/ Share-A-Load Globe Broadband Globe Personal, business and residential subscribers Globe Prepaid/ Globe Tattoo/TM Globe Prepaid/ GCASH Prepaid market Globe DUO Budget conscious postpaid and prepaid markets Globe DUO is a world-class breakthrough that broke all communication barriers with the first-ever 2-in-1 mobile and landline service that provides unlimited meter-free calls to landlines and other DUO users. Adult, youth and value-conscious markets respectively The prepaid brands revolve around its innovative product and service offerings, superior customer service, and Globe “worldwidest” services and global network reach. 22.3 million subscribers (end 2009) 12 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Subscribers can top-up at over 740,000 AMAX retailers nationwide at affordable denominations and increments. A consumer-to-consumer top-up facility, Share-A-Load, is also available to enable subscribers to share prepaid load credits via SMS. Globe Kababayan Globe Overseas Filipino Workers (OFWs) Globe provides an extensive range of international call and text services to allow OFWs to stay connected with their friends and families in the Philippines. This includes prepaid and reloadable call cards and electronic PINs available in popular OFW destinations worldwide. Globe Business Large, small and medium enterprises To businesses, big and small, Globe offers managed services that provide end-to-end mobile and fixed line solutions. Globe customizable solutions boast of uparalleled service for its enterprise clients. Globe fixed line voice services include local, national and international long distance calling services in postpaid and prepaid packages through its Globelines brand. Subscribers get to enjoy toll-free rates for national long distance calls with other Globelines subscribers nationwide. 589,000 Subscribers (end 2009) Shared Responsibility on Sustainability Engaging our stakeholders – the people who affect our business or who are affected by it – is an integral part of our sustainability management. Their active engagement and feedback help us understand their expectations, and enable us to align their issues effectively with our business strategy which ultimately help shape our sustainability strategy. Stakeholder Type Customers Shareholders and Investors Employees Government Authorities and Regulators Value Chain Partners Industry Peers Communities where we operate Year round, we continue to initiate stakeholder engagement activities to show us where we need to intensify our commitment and how we can further improve our products, processes and performance. These result to a better understanding of the issues we face and are confident that this report includes many areas of interest to our stakeholders. We will continue to improve our engagement strategies to be relevant to our business strategy. The table below describes our regular engagements with major types of stakeholders: MethodS of Engagement Stakeholder Issues • Customer service center • Customer satisfaction survey • Customer complaint management • Provide high quality, innovative products and services to meet the needs of our customers • • • • Annual Financial Report Annual Stockholders Meeting Quarterly Media and Analysts Briefings Investor Roadshows • Stable and sustainable investment returns • Transparent, open, and fair disclosure systems • Sound management and corporate governance approaches • • • • • Employee Satisfaction Survey Employee representation in various committees Meetings Employee Relations programs Collective Bargaining Agreement with Union Members • Regular communication • Representation in Congressional and committee meetings • Membership in critical public service organizations • • • • Contract bidding and procurement Supplier assessment and management Meeting with suppliers Training for value chain partners • Provide equal employment and career development opportunities • Recognize and work on employee health issues and create a safe working environment • Comply with relevant laws and regulations • Access to communication for Filipinos • Provide public service during disasters • Work with value chain partners to meet the needs of our customers • Contract fulfillment • Transparency • Mutually beneficial growth • Industry discussion forums • Representation in various industry associations • Promote industry conferences • Build a fair competitive environment • Promote sustained industry development • Nationwide community consultations • Community investment activities • Letters and calls • • • • • 14 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Proactive company engagement with communities Access to communications Actively engage in community initiatives Protect the environment Support delivery of social services LIVING OUT THE SUSTAINABILITY AGENDA We continue to face significant challenges for a sustainable society where our business can prosper in the long term. The Philippines for example, still lacks progress in some of the most pressing issues such as poverty alleviation, greater access to health care and providing universal primary education to as many young Filipinos as possible. These challenges underscore two important contributions by the business sector: nurture a sustainable business so it can bring value to its stakeholders, and implement a cohesive strategy that would allow public and private sectors to meet the needs of society as a whole. Globe believes that the telecommunications industry has great potential in generating positive economic, environmental and social development, particularly in a country like the Philippines. Through innovation and strong customer support and trust, the potential of mobile communications services has evolved from text messaging to providing Internet connectivity across the nation. Globe, for example, has utilized text messaging to deliver educational materials to remote public schools, provide entrepreneurial opportunities by selling prepaid credits over-the-air through Globe AutoloadMax and provide opportunities for the community enterprises to support mobile transactions through GCash. Management Approach, Commitments and Progress Contributing to the Nation’s Growth (Dma Economic and product responsibility) Management Approach Our Commitments By managing long term sustainability of our business and the industry with integrity and the highest ethical standards, we fulfill our economic responsibility to our stakeholders. Implement innovative and effective management structures and methods. Globe service revenues remained steady in 2009 at P62.4Bn. Strive to ensure low cost, high efficiency business operations. Aggressively launched promotional offers for unlimited call, text and surfing to improve price competitiveness, expanding the network and effectively managing costs and adhering to corporate governance standards. To expand our network coverage and infrastructure and provide access to as many people as possible. Engage in effective management and risk controls. Grow our business in a way that adds value and takes advantage of our key strengths as a business. Develop a diverse set of products and services that satisfy our customers’ needs. Create new opportunities, continuously improve our capabilities, and lead our industry. Our Progress As of end 2009, there were 10,333 base stations in the country. Internal risk control procedures were mapped and business continuity plans were strengthened to promote disaster preparedness. Innovating mass market distribution strategies that will eventually allow entrepreneurial opportunities for the poor. We hear from our customers through our Annual Customer Satisfaction Study as well as our performance through internal customer metrics. Established new channels to elicit customer feedback through social media and crowd sourcing initiatives. Developing our People, Enriching Lives (Dma Labor and HUman rights) Sustaining our Environment (Dma -environment) By nurturing our people, providing an inclusive working environment and investing on training and people development, we drive a strong, performance-driven workforce and create a culture of meritocracy that will help us steer our business aspirations. By promoting efficient and effective environmental protection initiatives, we contribute to preserve our planet and the future of young people. Encourage employee diversity as each employee brings his or her unique skill set and work experience to enable business success. Ensure equal employment opportunities by creating a work environment free of discrimination or harassment on the basis of race, color, religion, gender, national origin, disability or age. By harnessing our technologies, competencies, and by providing access to communications, we passionately contribute to initiatives that help uplift the overall well-being of society. In 2009, Globe hired 399 new talents. Provided leadership and competency development initiatives across all levels. During the recruitment process, we ensure that recruitment advertisements placed in newspapers and Internet websites are nondiscriminatory and publicly accessible. Recruit and retain employees based on merit and their ability to perform the specific job functions. Re-organization undertaken to comprehensively address our customers’ needs. Closely manage waste disposal and reuse, building an environmentallyfriendly company. Developed programs that reduce energy across our organization and continued our greenhouse gas accounting. Continue to study and apply sustainable strategies in our network and properties - one that reduces energy use and helps us lower our emissions. Promoted paperless billing for our postpaid subscribers. Promote recycling and reuse. Solid waste management is present in our facilities. Continue to raise the public awareness of environmental issues and encourage public participation in environmental activities. Building Communities, Bridging Communities (Dma - Society) People strategy is centered on empowering, engaging, and constantly energizing talents. Contribute to the overall advancement of society and culture. Utilize our technologies in developing products and services that uplift the poor. Employee volunteerism activities nationwide and provided opportunities to all employees to pursue other interests like sports activities and other employee engagement programs. Lead-acid batteries recycling was done throughout our operations. Increased bins for our cell phone take back program. Committed to reforest areas where we operate with 250,000 trees in the next five years. Globe Bridging Communities – our flagship corporate social responsibility program was implemented in more than 3,000 communities nationwide. Provided access to educational content through SMS and connected 1,114 public high schools to the Internet. Developed a corporate-community partnership program on community enterprise development. Engaged with more than 20 organizations so programs can impact more people. In 2009, Globe employed more than 5,400 people nationwide and we have done our best for our people to understand and subscribe to our corporate values. By consistently implementing our CSR and sustainability strategy across the company, we commit ourselves to running a responsible business. 16 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report OUR COMMITMENT TO ETHICAL LEADERSHIP Globe recognizes the importance of good governance in realizing its vision, carrying out its mission, and living out its values to create and sustain increased value for all its stakeholders. The impact of global conditions and challenges further underscores the need to uphold the Company’s high standards of corporate governance to strengthen its structures and processes. As strong advocates of accountability, transparency and integrity in all aspects of the business, the Board of Directors (“Board”), management, officers, and employees of Globe commit themselves to the principles and best practices of governance in the attainment of its corporate goals. The basic mechanisms for corporate governance are principally contained in the Company’s Articles of Incorporation and By-Laws. These documents lay down, among others, the basic structure of governance, minimum qualifications of directors, and the principal duties of the Board and officers of the Company. The Company’s Manual of Corporate Governance supplements and complements the Articles of Incorporation and By-Laws by setting forth the principles of good and transparent governance. In 2009, the Company commissioned a review of the manual to update and improve it. This review was completed in February 2010 and new provisions have been incorporated in the manual. The Company has likewise adopted a Code of Conduct, Conflict of Interest, and a Whistleblower Policy for its employees. It has existing formal policies concerning unethical, corrupt and other prohibited practices covering both its employees and the members of the Board. These policies serve as guide to matters involving work performance, dealing with employees, customers and suppliers, handling of assets, records and information, avoidance of conflict of interest situations and corrupt practices, as well as the reporting and handling of complaints from whistleblowers, including reports of fraudulent reporting practices. Moreover, the Company adopted an expanded corporate governance approach in managing business risks. An Enterprise Risk Management Policy was developed to provide a better understanding of the different risks that could threaten the achievement of the Company’s vision, mission, strategies and goals. The policy also highlights the vital role that each individual plays in the organization – from the Senior Executive Group (SEG) to the staff – in managing risks and in ensuring that the Company’s business objectives are attained. New initiatives are regularly pursued to develop and adopt corporate governance best practices, and to build the right corporate culture across the organization. OUR COMMITMENT TO ETHICAL LEADERSHIP In 2009, Globe participated in various activities of the Institute of Corporate Directors (ICD) and the Philippine Securities and Exchange Commission (SEC) to improve corporate governance practices and refine the corporate governance self-rating system and scorecard used by publicly listed companies to assure good corporate governance. Board of Directors The Board of Directors is the supreme authority in matters of governance. It oversees the strategic direction of the company, monitors overall corporate performance, and ensures transparency, accountability and fairness. It has oversight responsibility for the risk management function while ensuring the adequacy of internal control mechanisms, reliability of financial reporting, and compliance with applicable laws and regulations. In addition, certain matters are reserved specifically for the Board’s disposition, including the approval of corporate operating and capital budgets, major acquisitions and disposals of assets, major investments, and changes in authority and approval limits. are non-executive directors who are not involved in the day-to-day management of the business. The Board includes two independent directors (non-management and free from any business or other relations which could materially interfere with their exercise of independent judgment in carrying out their responsibilities as directors). The roles of the Chairman of the Board and the Chief Executive Officer (CEO) are clearly delineated and are held by two individuals to ensure balance of power and authority and to promote independent decision-making. All board members have the expertise, professional experience, and background that allow for a thorough examination and deliberation of the various issues and matters affecting the Company. The members of the Board have likewise attended trainings on corporate governance prior to assuming office. In accordance with the memorandum from the Philippine Security and Exchange Commission (SEC), the qualifications of all board nominees are reviewed by the Nominations Committee, which is chaired by an independent director. In accordance with the Company’s By-Laws, the Board members receive stock options and remuneration in the form of a specific sum for Board Member Position Jaime Augusto Zobel de Ayala Chairman Gerardo C. Ablaza, Jr. Co-Vice Chairman Mark Chong Chin Kok Co-Vice Chairman Romeo L. Bernardo Director Ernest L. Cu Director (Executive) Roberto F. de Ocampo Director Koh Kah Sek Director Delfin L. Lazaro Director Xavier P. Loinaz Director (Independent) Guillermo D. Luchangco Director (Independent) Fernando Zobel de Ayala Director Board Composition The Board is composed of eleven (11) members, elected by stockholders entitled to vote during the Annual Stockholders Meeting (ASM). The Board members hold office for one year and until their successors are elected and qualified in accordance with the By-laws of the Company. Of the eleven members of the Board, only the President & CEO is an executive director; the rest attendance at each regular or special meeting of the Board. The remuneration is intended to provide a reasonable compensation to the directors in recognition of their responsibilities and the potential liability they assume as a consequence of the high standard of best practices required of the Board as a body and of the directors individually, under the SECpromulgated Code of Corporate Governance. Directors attend regular meetings of the Board, 18 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report formulation, translation to executable plans, horizontal alignment of business objectives across the organization, to execution and performance tracking linked to the Company’s rewards system. which are normally held on a monthly basis, as well as special meetings of the Board, and the ASM. The average attendance rate of members of the Board was at 91% for 2009 and 85% for 2008. All directors have individually complied with the SEC’s minimum attendance requirement of 50%. The members of the Board have access to management should they need to clarify matters concerning items submitted for their consideration. The Board conducts an annual self-assessment to ensure the continuing effectiveness of its processes and to identify areas for improvement. During the last meeting of every year, the Board meets in executive session to evaluate and discuss various matters concerning the Board, including that of its own performance and that of the Company’s management team. Board Committees To further support the Board in the performance of its functions and to aid in good governance, the Board has established five (5) committees: Executive Committee, Audit Committee, Compensation Committee, Nominations Committee and Finance Committee. Management The President & CEO, guided by the Company’s vision, mission, and values statements, is accountable to the Board for the development and recommendation of strategies, and the execution of the defined strategic imperatives. The President & CEO is assisted by the heads of each of the major business units and support groups. The Office of Strategy Management (OSM) reports to the President & CEO and oversees the Company’s strategy management processes from strategy Every year, the Company reviews and formulates its strategic priorities which guide the formulation of key business strategies and goals for the year. Using the balanced scorecard framework, each business group identifies financial and non-financial objectives, and sets targets and initiatives to achieve them. This is captured in what is called the groups’ Terms of Reference (TOR). To ensure line of sight, the group TORs are cascaded to all employees, making sure that everyone understands and appreciates their contribution to the group goals. This helps in developing individual performance plans that are aligned with the key strategies. Rewards and incentives are given based on the achievement of the committed group and individual targets. Key programs, projects, and major organizational initiatives are taken up at the Senior Executive Group (SEG), composed of the President and CEO, as well as the heads of each of the major business units and support groups. All budgets and major capital expenditures must be approved by the SEG prior to endorsement to the Board for approval. The Chief Operating Adviser and Chief Legal Adviser also provide inputs to the SEG as required. The SEG meets at least once a week. Management is mandated to provide complete and accurate information on the operations and affairs of the Company in a timely manner. Management is also required to prepare financial statements for each preceding financial year in accordance with Philippine Financial Reporting Standards (PFRS). The annual compensation of the ten (10) top officers of the Company, including the President & CEO, is disclosed in the Definitive Information Statement distributed to the shareholders. The total annual compensation includes the basic salary, guaranteed bonuses, fixed allowances, and variable pay (performance-based annual incentive). Compensation in Globe is directly linked with the company performance. Risk Management Approach As part of its strategy management calendar, senior management and key leaders regularly conduct an enterprise–wide assessment of risks focused on identifying the key risks that could threaten the achievement of the Company’s business objectives, both at the corporate and business unit level, as well as specific plans to mitigate or manage such risks. Risks are prioritized, depending on their impact to the overall business and the effectiveness by which these are managed. Risk mitigation strategies are developed, updated and continuously reviewed for effectiveness, and are also monitored through various control mechanisms. Globe employs a two-dimensional view of risk monitoring. Senior Management’s scorecard includes the status of risk mitigation plans as they relate to the attainment of a particular business objective. Enterprise risk owners, on the other hand, regularly monitor and report the status of the approved mitigation plans meant to address the key risks. Annually, Globe conducts an Enterprise Risk Management Performance Evaluation which serves as a basis for continuously improving our risk management processes and capabilities. The Chief Financial Officer supports the President, as the overall risk executive, in overseeing the risk management activities of the Company, ensuring that the responsibilities for managing specific risks are clear, the level of risk accepted by the Company is appropriate, and that an effective control environment exists for the Company as a whole. Risk owners at the senior executive level have been identified and made accountable for managing specific risks, supported by business process owners who have been designated, trained, and made responsible for the particular process or activity from which the risk arises. This is consistent with management’s belief that risks are best understood and managed by the employees who are closest to the process. Beginning early 2009, the enterprise-wide risk management function was assumed by the Office of Strategy Management. This move brings the Company’s enterprise risk management activities closer to and more aligned with the Company’s strategic planning and execution capabilities, and simplifies the internal coordination among risk owners, risk designates and business process owners. This will also support the integration of enterprise risk management with the Company’s TOR processes and more tightly link risk mitigation efforts with its day-to-day operations. OSM will continue to be supported by the Enterprise Business Continuity Risk Management Unit under the Office of the Chief Operating Adviser to ensure continuity readiness of every mission critical aspect of the Company’s business. Leadership’s Management of Sustainability The Company’s identification and management of economic, environmental and social performance is already embedded in the various business strategies that the different business units plan out for the year. They are reported to the Board and the Board is given on an annual basis, a report on the progress of the corporate social responsibility and sustainability initiatives of the company. Likewise, there is a Globe representative to the CSR and sustainability council of the Ayala Group as well as in the SingTel Regional CSR team. Shareholder Relations Globe Telecom recognizes the importance of regular communication with its investors, and is committed to high standards of disclosure, transparency, and accountability. The Company aims to provide a fair, accurate, and meaningful assessment of the Company’s financial performance and prospects through the annual report, quarterly financial reports, and analyst presentations. The Company’s quarterly financial results are disclosed to the SEC and Philippine Stock Exchange (PSE) within 24 hours from their approval by the Board. Additionally, any material, market-sensitive information such as dividend declarations are also disclosed to the SEC and PSE, as well as released through various media including press releases and Company website posting. The Company regularly holds analysts and media briefings to discuss the quarterly financial results. The Company likewise holds an annual stockholders’ meeting where shareholders are given the opportunity to raise questions and clarify issues relevant to the Company. CONTRIBUTING TO THE NATION’S GROWTH environment likewise presented new challenges as operators were mandated to change load validity periods for prepaid subscribers, while further regulating value-added services, and driving per-pulse billing (or charging based on 6-second intervals, instead of per-minute) as the standard for voice calls. Working within this economic and regulatory framework, Globe remained financially resilient and closed the year with solid results. Consolidated service revenues were steady at P62.4 billion from P62.9 billion in 2008. Net income increased by 11% to P12.6 billion from P11.3 billion in 2008. These financial results remain among the strongest in its earnings history, second only to 2007 when the Philippine economy grew at a much faster pace. Contributing to the Nation’s Growth Globe Telecom is a major contributor to the Philippine economy. Globe has made important financial and operational gains in 2009, even in the face of a challenging economic environment. While the country was fortunate to have escaped a recession, economic growth was limited. Personal consumption was weak, even with the sustained growth of overseas remittances, private sector investments contracted, and the country’s exports declined until the latter part of the year. At the industry level, competition remained intense. Growth slowed as unique subscriber penetration rates approached maturity at 80% of population. Pricing and yields trended downwards given the market’s preference for unlimited and bucket-priced offers, putting more pressure on operating margins. The regulatory INFLOWS IN Php MILLIONS DISTRIBUTION iN Php MILLIONS Revenues* Suppliers/Contractors** 63,8632009 21,2992009 Total Comprehensive Income Employees (salaries and benefits) INVESTMENTS iN Php MILLIONS Government (taxes) Equity Investments Stockholders (dividends) Capital Expenditures Charitable Contributions Total Investments Total Distribution 12,623 2009 141 2009 24,702 2009 24,843 2009 4,9812009 14,4192009 15,1482009 342009 55,8812009 Economic Value generated and distributed (in Php Millions) * Includes service and non-service revenues * Please see annual report for details. This includes cost of sales, general, selling & administrative expenses, but excludes those items already separately disclosed herein (e.g. staff costs, taxes,and charitable contributions). 20 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Return on equity was at an all-time high of 26%, up from 21% in 2008 as a result of higher profits and the capital management initiatives we started in 2006. Total shareholder return for the year was at a robust 30%, driven by a 16% improvement in share prices and a very competitive dividend yield of 14%. This was one of the highest dividend yields among telecom companies in the region. Over P15 billion in dividends were paid out in 2009, representing 134% of prior year’s net income. The Board likewise upgraded the Company’s dividend pay-out policy starting in 2010, raising the regular pay-out from 75% to a range of 75% to 90% of prior year’s net income. Globe also completed a number of milestone investments in the past year that have brought it closer to its goal of providing superior, differentiated network service. It completed its second international landing station in North Luzon and started carrying live traffic in the Tata Global Network-Intra Asia (TGN-IA) submarine cable system in March, offering clients a geographically diverse, high-capacity connection to Hong Kong, Japan, Singapore, Vietnam and the US. Last November, Globe put into full operation FOBN2, its second fiber optic backbone network. Completed over a two-year period and built at a cost of around US$70 million, FOBN 2 network spans over 1,900 kilometers of inland and submarine cable and covers most areas of Luzon, Visayas, and Mindanao. This dramatically improves the resiliency of our domestic transmission system. Finally, last December, Globe joined a partnership that includes some of the biggest names in the industry, including Google, Singtel, KDDI, Telkom Indonesia, and Bharti Airtel to form the Southeast Asia-Japan Cable System (SJC). Scheduled for completion in 2012, the SJC system will initially link Singapore, Hong Kong, Indonesia, the Philippines, and Japan. It has a design capacity of 17 terabits per second, the highest capacity system built so far. This puts Globe in a strong position to serve the connectivity needs of its corporate clients in the BPO space, while providing retail customers with a better, faster internet experience. As we invested in additional equipment and increased our domestic footprint with higher bandwidth, multiple protocol nodes, we expectedly kept our rank as the best connected Internet service provider in the Philippines. For 2010, we will take advantage of our wider global footprint and innovations to turn around our mobile competitive position. We would also make use of our existing platforms to create value-added services that are relevant to our market. To retain our competitiveness in the telecommunications industry, we will continue to accelerate our broadband capacity-building investments to sustain our market position, while continuing programs that will push our mobile business on the growth track. In line with this, we are allocating about US$500 million in capital expenditures in 2010. This includes US$170 million for the mobile telephony business, and another US$230 million for the broadband business to augment existing capacities and expand the coverage and footprint of Globe DSL, WiMAX, and 3G broadband services. Responsible Tax Payment It is our belief and obligation to pay the right amount of tax legally due and observe all applicable rules and regulations in the country. We have also required all our employees and business partners to act with integrity in all of their tax activities. PUBLIC POLICY Globe continuously engages with government and takes an active role in shaping public policy issues relevant to the telecommunications industry as well as issues of broad public interest. In 2009, we have actively engaged on issues on interconnection. Our written submissions are made public by the government organization to which they are submitted. Working with a number of government agencies, Globe supports the government in creating opportunities for development for Filipinos including consumer protection, jobs, innovation, public service delivery and effectiveness, national and public security and enterprise development. We will continue to increase our engagement and focus on public policies on IT for social services delivery, environmental sustainability and poverty alleviation. Membership in Organizations We are a member of the following industry groups, associations and corporate responsibility initiatives: • American Chamber of Commerce • Canadian Chamber of Commerce • European Chamber of Commerce in the Philippines • GSM Association • International Association of Business Communicators Philippines • International Telecommunications Union • League of Corporate Foundations • Philippine Electronics and Telecommunications Federation • Public Relations Society of the Philippines Preparing a digitallyattuned society As Globe focused on its customers, our strong brand portfolio and its robust financial position enabled us to tackle operational challenges, while simultaneously allowing the Company to make investments in new technologies and capabilities. Globe was the first to launch WiMAX (Worldwide Interoperability for Microwave Access) in the country, and one of the first in the Southeast Asian region to commercially roll out the service. It is now available in over 900 sites in 190 towns and cities nationwide, bringing the internet to areas previously not serviceable by wired broadband offerings. We also continued to expand the coverage of our 3G network to support the growing demand for reliable, affordable broadband internet service. Globe also reduced the costs of prepaid kits to enable the adoption of broadband solutions by a wider sector of the market, especially among the digitally-attuned youth. As more people embraced the digital lifestyle, our broadband business posted our highest ever incline, outpacing the market and surpassing projections with a 376% increase in net subscriber additions across all products in 2009, bringing our cumulative subscribers to 715,000, triple the previous year’s level of 230,000. Our challenger mindset clearly places us at the driver’s seat of the broadband business. Our nomadic broadband product, Visibility was re-christened and re-packaged as Globe Tattoo Broadband, an edgy new brand that changed the face of broadband services. Where previously broadband advertising had been antiseptic and functional, focusing more on speed, price, and catering to parents and high school students, this time Globe Tattoo Broadband went after a market that value individualism and self-expression. Globe introduced a whole new way of looking at the category - as a badge of personal expression for the youth subculture. Perhaps the biggest Globe story of 2009 was the launch of Duo in April, a worldclass breakthrough that truly broke all communication barriers, with the firstever 2-in-1 mobile and landline service that provides unlimited meter-free calls to landlines and other Duo users. A boon to the budget-conscious who still wanted to ride the unlimited wave, Globe Duo helped users save their hard-earned cash by giving them an easier and more economical way to stay in touch with other Duo users and landline users within their local calling area. With a single handset, a user could have both a mobile number and a Duo landline number. If the user called a landline, his phone would switch to the Duo number; if he called a mobile phone, his phone would use the mobile number. In like fashion, anyone using a landline could easily call him on the Duo number, making it a snap to stay in touch. Because of the popularity of Duo, a beefed-up offshoot service, SuperDuo, was launched in October 2009, this time offering the add-on benefit of unlimited calls to Globe and TM users nationwide. Not forgetting our duties to overseas Filipinos and their families, Globe reinforced its worldwidest stance in 2009, launching a number of promotions as well as local and foreign partnerships that helped Filipinos stay connected with ease and economy. A roster of offers included lower international call rates, an increase in sales channels, and tie-ups with the Overseas Workers Welfare Administration (OWWA) and the Department of Labor and Employment (DOLE) to show the Company’s support for the OFW community. In the international arena, Globe introduced new retail products such as co-branded OFW SIMs, IDD cards, and calling services with strategic partners in the top OFW destinations. Through our Globe Kababayan program, we also provided an extensive range of international call and text services to allow Overseas Filipino Workers (OFW) to stay connected with their friends and families in the Philippines. Our OFW customers felt our efforts to strengthen their bonds with their dependents. We rolled out the tipIDD card and introduced the IDD Suki offer following the warm acceptance of the OFW Family Pack. Globe is the only operator in the country that offers a 3-SIM OFW Family Pack, one OFW SIM pre-activated for roaming and two family SIMs. With the OWWA and our partner telcos abroad, we revived and mounted the OWWA Hatid Saya programs which celebrated Philippine Independence Day and fiestas in 12 key countries and cities. In all, we launched six new Globe Kababayan retail products with strategic partners in the top 10 OFW destinations. GCash: Providing mobile solutions for the unbanked As mobile usage expands in the Philippines, many opportunities paved way to bank the unbanked through our mobile commerce business, GCash. With GCash, low-income families, microenterprises and individuals no longer need to use scarce time and financial resources to travel to distant bank branches, often located far from low-income communities. And since GCash transactions cost far less to process than transactions at a branch, banks can make a profit handling even micropayments and lowvalue money transfers. GCash in itself has been at the forefront of convergence. Starting with the development of an electronic mobile money wallet in 2004, GCash, which saw the convergence of telecommunications and financial services in the form of a mobile based electronic money wallet, has now grown into a robust remittance platform. Today an OFW can send money back to the Philippines from any of our 826 partner outlets in 32 territories abroad and can be claimed by beneficiaries in any of our 18,000 payout locations nationwide. At the payment front, GCash has also gained momentum as peer to peer sending via GCash is the preferred payment method in sites such as eBay.ph and Multiply for purchases over the web. To further strengthen our internet footprint we recently launched an end-to-end payment and delivery service called GCash Click. This is the first ever operational service bringing together online shopping and virtual payments but at the same time ensuring delivery of goods purchased. In the near term, GCash is set to further solidify its position as an enabler for the microfinance industry. 2009 marked the five-year partnership between GXI, the RBAP (Rural Banks Association of the Philippines), and USAID-MABS (Microenterprise Access to Banking Services) that have worked together to jumpstart financial inclusion through Mobile Phone Banking Services. With 60 partner banks across the country, mobile banking, powered by GCash, has bridged a number of communities in the Philippines making financial transactions secure, faster and easier with just a text message. This has allowed them to reach communities, providing mobile banking services through the GCash platform. RBAP, MABS and GXI, in turn, have significantly contributed to the microentrepreneur’s access to financial services. In partnership with the Bank of the Philippine Islands and Ayala Corporation, Globe recently purchased a 40% stake in BPI Globe BanKO Savings, Inc. to further test new business models and related technologies that could further benefit the microfinance industry. Developing Our People, Enriching Lives At Globe, our people live by the spirit of selfimprovement to deliver superior service in all circumstances while recognizing the vital role we play in other people’s lives. That’s why we are always challenging the status quo in order to find better, more effective ways of reaching and touching our customers. Gender Female Age range Male Middle management 707 270 30-39 612 671 40-49 49 50-59 60-69 Age range total % 977 37.2% 59 1,342 51.0% 163 58 270 10.3% 3 20 15 38 1.4% 1 1 2 0.1% 1,372 1,125 2,629 100.0% Rank and File Middle management 132 senior management total % 20-29 672 210 2 844 31.3% 30-39 561 781 75 1,417 50.2% 40-49 128 245 74 447 15.8% 50-59 16 38 17 71 2.5% 60-69 1 1 1 3 0.1% Male Total 1,372 1,275 169 2,822 100.0% Grand Total 2,750 2,400 301 5,451 % 50.4% 44.0% 5.5% 100.0% Employees by Gender, Age Range and Category 22 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report senior management 20-29 Female Total Gender Rank and File DEVELOPING PEOPLE, ENRICHING LIVES Total Workforce by Employment Type and Region Region Probationary GMA regular total % 79 3,778 3,857 70.8% MINDANAO 8 258 266 4.9% NORTH LUZON 9 309 318 5.8% SOUTH LUZON 6 371 377 6.9% VISAYAS 5 628 633 11.6% Grand Total 107 5,344 5,451 100.0% % 2.0% 98.0% 100% Our Employees As Partners Prioritizing our Employees’ Welfare Life in Globe is as dynamic as the industry we are in. We are each one’s Ka-Globe, striving to constantly deliver superior and quality service to our customers. By nurturing a strong performance-oriented environment within the organization, we attract the most competent talents in the market today. We acquire employees in every region of the country considering that their local knowledge and connections will bring value to our business strategy and execution. In 2009, there was a total of 399 new hires. By providing internal career opportunities, we empowered 151 employees to explore and fill vacant positions. Globe delivers a total rewards experience that encompasses learning and development, and competitive and market-driven compensation. Flexible and innovative benefits ultimately attract, engage and retain highly-productive talents. Globe follows the minimum salary rates in Metro Manila – the highest in the country – even if competitive rates vary in the regions. Total workforce by group Business CFU Carrier Services Consumer Marketing Consumer Sales & After Sales total 8.3% 21 0.4% 140 2.6% 43.2% 65 1.2% 387 7.1% 71 1.3% 245 4.5% 1,405 25.8% New Business 13 0.2% Office of the President 48 0.9% Pipeline Management Group 31 0.6% 213 3.9% Corporate & Regulatory Affairs Finance & Administration Human Resources Information Systems Network Technical Group Product & Service Delivery Grand Total Senior Management Middle Management Rank and File 2000 4000 0.85 0.90 5,451 0.95 7,640 8000 0.97 9,778 1.00 10000 Lowest actual salary of employees covered by the Collective Bargaining Agreement is almost 30% above minimum wage as compared to the Department of Labor and Employment’s minimum wage mandate. 100.0% 1.05 1.12 1.10 1.13 1.15 Male Rank and File and Middle Management have a higher ratio of basic salary than female. For Senior Management, the ratio for males is lower. 24 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Time-Off/Leave Benefits • Health Insurance - Group Hospitalization (In-Patient) Plan • Outpatient Healthcare • Outpatient Consultations/Diagnostics • Outpatient Medicine Reimbursement • Dental Services • Optical Services/Subsidy • Other Outpatient Benefits: Free medical consultations at Company designated clinics • Other Healthcare Benefits • Maternity Pay • Work-Related Accident or Injury • Vacation Leave • Short Term Sick Leave • Long Term Sick Leave • Maternity / Paternity Leave • Leave Due to Illness in the Family (Confinement) • Calamity leave, Bereavement leave and Leave Due to illness in the Family (nonConfinement) –for union only • Paid Time-Off (for non-union only) Security and Protection Benefits Car Plan/Company Car Program Rice Subsidy and Educational Assistance • For union members only (part of CBA) Company Loans: • Emergency / Non-Emergency Loans Other Benefits: • For managers and executive levels Flexible Benefits enjoyed a marked increase in enrollment, as 82% of all Globe employees enrolled in the plan in 2009, a 3% increase from 2008’s enrollment rate. 6000 2,357 Healthcare Benefits • Group Term Life Insurance • Retirement MiNIMUM WAGE IN GLOBE RATIO OF BASIC SALARY OF MEN TO WOMEN BY Minimum Wage Globe CBU Mandated by DOLE Minimum Wage EMPLOYEE LEVEL 0 % 455 The following benefits are provided to full-time employees: As we nurture a culture of excellence in the company, we also continue to strengthen our rewards, benefits and recognition systems for each and every Globe employee. We started building towards enhancing Globe an employer value proposition that will strategically define the total experience of working in Globe as • Longevity Awards one that enables a person’s success. This included leadership visibility programs which launched our CEO “Talk To Me”blog, interactive line to management events such as“Kapihan”and “Merienda”open dialogue sessions, themed townhalls, and special employee offers and privileges in Globe and the Ayala Group of Companies. Employee recognition programs like the Globe Excellence Awards further promote internal pride and encouraged excellence. We also fortified our people focus as our primary customers and brand ambassadors with the Customer First Circle (CFC) Program, which looked at organization-wide process improvements and system enhancements. More than 10% of our employees underwent training and certification programs leading to 52 CFC projects completed which are expected to generate close to Php800 million worth of savings on the first implementation cycle in 2010. Fostering an environment that encourages continuous learning Training mandays Average training days per employee Training Cost 13,2662008 16,1942009 2.30 2.97 Php108.0M (USD2.26M) Php94.9M (USD2.1M) We provide our employees with a variety of learning opportunities that broaden their knowledge and maximize their skills and competencies. Through a blend of formal training programs, exposure to cross functional project teams, lunch-and-learn and brown bag cascade sessions, and interactive CEO and peerto-peer conversations, our people learn and discover from each other, enabling stronger and tighter collaboration towards delivering results. Close to 400 training, mentoring and coaching programs were implemented in 2009 which involved some 2,304 employees or more than half of our workforce. We also saw the birth of the Globe Trainer Management Program (GTMP), which developed in-house trainers, coaches and mentors. Through synergistic efforts, we shared best management practices and leveraged on strategic partnerships and alliances with the SingTel and Ayala communities. In 2009, Globe invested some Php94.9Million (USD2.1M) in the skills and competency development of its employees. DEVELOPING PEOPLE, ENRICHING LIVES Key Leadership Programs Leadership Program EvaluatinG Performance sponsor Globe Participants Singapore Telecom 5 Program description All our non-union employees, which comprise 90.5% of our total work force, completed their annual performance dialogue with their immediate superiors. One hundred percent of those employees accomplished this in 2009. Our performance management system is tied with our rewards system. Attrition Rate Per Capita Revenue 14.9%2005 14.9%2006 14.0%2007 13.5%2008 14.2%2009 Php11.0M Php11.1M Php11.5M Php10.7M Php11.4M Game for Global Growth High level executive development for the Telco industry. Designed by Monitor Group for the SingTel Affiliates. Regional Leadership in Action Facilitated by Singapore Management University faculties and designed specifically for the SingTel group. Focuses on leadership soft skills and business acumen. Singapore Telecom 5 This year, we lost 802 talents through attrition. Since 2005, we made significant improvements in lowering attrition rates while increasing our people efficiencies through per capita revenue. Ayala Leadership Excellence Acceleration Program High level executive development program developed by Harvard University Ayala Corporation 3 Total No. and Rate of Employee Turnover by Gender 900 Globe Emerging Leaders Program Engages key successors with Globe Senior Executives to support the Leader-as-Teacher culture in Globe. This is in partnership with Harvard Business School. 800 Globe Telecom 21 700 600 500 We have also been steadfast in keeping our pipeline management programs for defined talent segments in the field of Sales, Marketing, and Information Technology. In 2009, a total of 47 participants completed our Globe Management Development Program, Globe Sales Development Program, IT Cadetship Program and Business Management Associate Program. Measuring our Employee Engagement Employee Engagement Score 57.0%2008 65.6%2009 We have continued our annual employee engagement survey in 2009, where we conducted surveys every four months. We scored at 68.58. Despite the significant business challenges, there was a marginal improvement in the score. We continue to bring further improvements in the year ahead. Organizational streamlining for increased customer focus In 2009, we integrated our mobile telephony and broadband customer-facing units. This reorganization underscored our desire to comprehensively address our customers’ communication needs. With current mobile telecommunications market saturation vis-àvis the rapid ascent of broadband demand, the reorganization could not have been timed more perfectly. The improvement, automation and outsourcing of functions and processes allowed us to rapidly respond to customer needs and gave us access to service innovations in the thriving BPO industry. Deriving savings in the long-run is but secondary to the primary objective of this streamlining - ultimately to serve our customers better. Protecting Human Rights in Globe Through our Code of Conduct, our employees are guided on how we should manage our relationships with stakeholders. From the Board to Globe employees, each one is required to act with honesty, integrity and fairness. In 2009, there were 190 cases related to violations of the Code of Conduct. In Globe, recognizing civil and political human rights is of key importance in all our activities. In 2009, there were no reported human rights violations in the Company. We continue to build the capacities of our key personnel especially our leaders to ensure and effectively address human rights issues including training and internal procedures. Our Security Division requires our partner security agencies to have human rights training for all security personnel who guard the Globe sites and conduct quarterly audits to ensure compliance. 26 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report 802 14.2% 18.0% 16.0% 14.0% 12.0% 460 16.6% 10.0% 342 11.9% Free from Child Labor 400 We have also ensured that measures versus child labor in all our operations are observed in the Company. There are no operations considered to have significant risk for incidents of child labor and young workers exposed to hazardous work. 300 6.0% 200 4.0% 100 2.0% Forging Healthy Labor Relations As of December 31, 2009, 520 employees are covered by a Collective Bargaining Agreement (CBA) with the Globe Telecom Employees’ Union – Federation of Free Workers (GTEUFFW). In March 2009, we concluded the CBA Negotiations for 2009-2010.The collective bargaining agreement includes health and safety topics including medical, dental and optical care, leave programs, emergency and special loans, group and hazard insurance and CBU-employees retirement benefits. CBU Membership No. of Members % of Globe Population 7212008 12% 5202009 9.5% 0 Female 8.0% Male Total Attrition Rate Female has a higher attrition rate than male. 0.0% Total Total No. and Rate of Employee Turnover by Age Range 802 14.2% 900 800 3 54.5% 700 50.0% 600 500 400 40.0% 398 18.8% 339 12.3% 30.0% 300 52 7.9% 200 20.0% 10 9.6% 10.0% 100 0 60.0% 20-29 30-39 40-49 50-59 60-69 Total 0.0% Total Attrition Rate Majority of resigned employees are between 20-29 age range. DEVELOPING PEOPLE, ENRICHING LIVES Sustaining a healthy and safe workplace The healthy and safe working environment in Globe is a key priority for us. Operating in an archipelagic country like the Philippines brings a significantly more challenging environment for managing this. We regularly assess risks and systematically implement management systems to make our workplaces as safe as possible. Health and safety is not just about avoiding accidents – it also involves protecting our employees’ physical and mental well-being. Through wellness and safety advocacies within the Company, our employees and their families are informed to make the right choices to stay healthy. Ultimately, this increases productivity in the workplace and contributes to a sound and healthy society. Our Safety and Health department oversees the safety of our Company’s operation and activities. Our Company’s Safety, Health and Environment Management System (SHEMS), is in place to ensure the safety & health of field personnel involved in all the critical and non-critical operations and activities of the organization. Guidelines on construction & electrical safety, equipment installations, motor vehicle safety, tower safety, radio frequency (RF) radiation and management of hazardous materials are outlined in the SHEMS manual disseminated to key operational groups and available to the employees through the company’s internal communications portal. Control of contractors is being implemented through Safety Orientation and close coordination with project implementing groups. Guidelines on exposure to radio frequency (RF) emissions from base stations are also in place, with at least four accredited RF radiation officers and over 15 personnel from operations and project groups have undergone RF Radiation Training. Emergency Response Teams, Safety Committees and Disaster Management regular personnel, and operational third party contractors assigned to be “frontline” responders in a site emergency and monitor occupational health & safety at the site level. In 2010, our Business Continuity Planning department reviewed our disaster management planning and implementation at the site level. This is in line with the Company’s initiative to ensure that communications services are reliable and not interrupted in times of disasters, whether natural or manmade. Site administrators were trained in hazard identification, risk ranking and risk prioritization to identify endemic threats to facilities and operations and to provide control measures in handling them. Since then disaster management and recovery plans are continuously being updated and integrated to critical operations and business functions. Accident Summary Reporting The Company submits a periodic accident summary report to the Department of Labor and Employment-Bureau of Working Conditions (DOLE-BWC) in compliance with Rule 1050-Notification and Keeping of Records of Accidents and/or Illness of the Philippine Occupational Safety and Health Standards. Seven years ago we initiated the Accident Summary Reporting and was refined through the years. In 2009, there were 356 accidents reported but there were no reported disabling injuries or deaths arising from these. Safety Training and Education Program Since 2007, we have trained some 4,500 employees on our various safety training and education programs. The initiative includes different operations of Globe that require personnel development in occupational health & safety. We have established response teams in 31 key facilities of the organization nationwide. These sites include the major corporate offices, Mobile Switching Centers, Fiber Optic Backbone Networks, Local Exchange Carriers and Cable Landing Stations. There are 670 personnel including key site administrators, 28 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Safety, Health and Environment Policy Globe Telecom is committed to provide protection to ensure the safety and health of our employees and the communities within our operations. We are also committed to the preservation of the environment. It is management’s primary objective and the employee’s collective responsibility to meet this commitment. To this end, we shall: • Continuously assess all health and safety hazards in the workplace and provide programs toward their elimination; • Comply with all safety, health and the environmental laws applicable; • Implement programs to reduce our waste generation and conserve our natural resources to minimize our operations’ environmental impact; • Train and motivate our employees to work in a safe and environmentally responsible manner and encourage our contractors and suppliers to adopt these principles; • Communicate openly our safety, health and environmental performance to all interested internal and external parties • Conduct a regular review of our management system to ensure that the commitment of this policy is met, and that we strive for continuous improvement. Our Safety Policies and Procedures Employee Occupational Safety • Motor Vehicle Safety Guidelines (including Authorization-to-Drive) • Office Safety Guidelines • Personal Protective Equipment Guidelines • Tower Safety Guidelines • Life Safety Systems • Radiation Safety Guidelines • Safety Guidelines in Handling Spills Incident and DisasteR Management • Emergency Preparedness and Response Plan • Procedures for General Evacuation and Responding to Fire Emergencies • Medical Emergency Response Guidelines • Emergency Infectious Disease (EID) Management Plan Property Loss Control • Construction Safety Guidelines • Electrical Safety Guidelines • Hotwork Guidelines • Procedure for BSS Emergency Shutdown The following were the different trainings conducted: • Advanced Defensive Driving • Risk Management • Planned General Inspection • Emergency Preparedness & Response • Disaster Management Planning • Behavior-Based Safety Training • Industrial First Aid and Basic Life Support • Home Fire Safety • Trainor’s Training • Industrial Climbing & Hauling • Ergonomics • Management of Hazardous Waste • Construction Project Management • Modern Accident Investigation • Forklift Safety • Electrical Safety • Water Safety & Rescue • Industrial Safety • Office Safety • SHE Orientation • Industrial Fire Brigade • Outside Plant Works • Basic Occupational Safety & Health • Documentation Training • Emerging infectious disease medical response providing wellness programs for Employees Globe believes that a healthier workforce yields higher morale and productivity. By providing opportunities to understand how to lead a healthier lifestyle through our wellness program, our employees take better control of their health and well-being. We have instituted wellness days being held monthly, as well as nutrition clubs in our corporate offices. Wellness Activity Body Mass Index Assessment & Nutrition Counseling Adult Vaccination for prevention of various diseases (Hepatitis A, Hepatitis B, Typhoid Fever, Chicken Pox, Mumps, Measles, Rubella and Cervical cancer) Flu Immunization Health Screening Fora on various health and nutrition topics Wellness Tour at Globe Stores Fitness Club membership Complementary to this is our vaccination program that provides our employees access to more affordable vaccines. Yearly, flu immunization fairs are conducted nationwide to ensure that our employees and their family members are protected against the influenza virus. Other vaccines are also being offered every month as we make our rounds to advocate disease prevention. Responding to the A(H1N1) outbreak in 2009 In the middle of 2009, there was a global outbreak of the A(H1N1) or swine influenza. This respiratory disease caused by viruses that infect the respiratory tract of pigs and result in nasal secretions, a barking-like cough, decreased appetite, and listless behavior. The spread of the virus was largely attributed to international travel. For this, Globe advised employees to postpone non-critical business trips especially outside the country. We reorganized our medical response teams in corporate offices and implemented temperature checks in our facilities using infrared thermometers. Hand sanitizers were also provided at the different entry points in all offices. Through ICON, our corporate intranet, we released a comprehensive information kit with guidelines on travel, how to care for sick family members and other preventive measures. Employee Engagement through Volunteerism While our people keep up with the rapid pace of their daily endeavors in Globe, we take pride in our collective and relentless efforts to be of service not only to the customer but to society at large. Employee Participation 1,480 employees served (2007-2009) 678 employees 6,102 employees vaccinated 890 employees 1,209 employees 587 employees 1,095 employees enrolled In 2009, a total of 1,727 man days were spent by Globe employees in actively taking part in various outreach and volunteer activities that included building homes and schools, teaching out-of-school youth, reforestation and cleanup initiatives, and other socially relevant programs in partnership with Globe BridgeCom. Hundreds of employees have volunteered in our new project with Gawad Kalinga (GK), the Globe-GK Bayan-Anihan Farms. These farms were intended to provide food sufficiency in GK Villages. A total of 32 farms were built in 2009. Our Globe Tulong Eskwela (GT Eskwela) mobilizes employee volunteers to teach students in adopted public elementary schools nationwide. Our Globe Volunteer team in Cebu has sustained this program for the fifth year by adopting a public elementary and high school in Carmen, Cebu. They visit them at least once a month, mentoring them in various subjects especially on computer literacy and introducing new media teaching methods for teachers. The program also donated other school materials like books and laboratory equipment. GT Eskwela is one of the best examples of an employee managed project. From the planning, consultations until the implementation of the project, these are all managed by our Cebu employee volunteers. The men and women of Globe also quickly rose to the occasion during typhoons Ondoy and Pepeng where a total of 886 employee volunteers participated in the relief and rescue operations that include packing and distribution of relief goods for affected Globe colleagues and displaced families housed in evacuation centers, manning hotlines and taking calls for assistance and help, community-rebuilding activities and other countrywide restoration efforts. sustaining the environment In 2008, we began a voluntary initiative on Greenhouse Gas (GHG) Accounting. We established our baseline for our operations’ carbon footprint and commit to work progressively on reduction measures. We used the International GHG Protocol Corporate Accounting and Reporting Standard and specifically used the following calculation tools: • GHG Emissions from Fuel Use in the Facilities; Version 3.0, December 2007. • Mobile Combustion CO2 Emissions Calculation Tool. Version 1.3.January 2005. • Indirect CO2 Emissions from Purchased Electricity, Version 3.0, December 2007. • CO2 Emissions from Business Travel. Version 2.0, June 2006. sources, we used the Operational Control Approach covering only all emissions coming from the Company’s operation where Globe has 100% operational control. We have also defined greenhouse gases defined in the Kyoto Protocol – CO2, CH4 and N2O - emitted from the Company’s operations as part of the accounting. All the calculation tools used for this accounting activity were developed by the Word Resources Institute (WRI) and copyrighted. They are available at www.ghgprotocol.org. Company activities that emit any of the six GHGs were listed and categorized as either Scope 1,2 or 3. They are listed in the table below. Working with a team representing groups that maintain data of our carbon dioxide emission Sources of Emissions Core Emission Source GHG Scope 1 : Direct Emissions that result from the combustion of fuel to produce electricity from stationary sources like generators (excluding Innove gensets), and from mobile combustion sources (all Company-owned vehicles). Onsite electricity generation diesel and gasoline Primary and standby generators (gensets) used in the facilities CO2, CH4, N2O Transportation mobile source – gasoline, diesel Owned vehicle fleet CO2 Scope 2 : Indirect Emissions that result from the purchase of electricity used in the operation of equipment and facilities. Refer to Annex 1 for the complete list of facilities that use purchased electricity. Purchased electricity By implementing a management system based on the ISO 14001 standard, we take environmental protection a priority consideration in managing our business everyday. At the same time, Globe has an opportunity to play a key role in addressing climate change by helping others reduce their emissions. Research shows that mobile communication products and services can help enable a low carbon economy. By complying with environmental regulations, incorporating sustainability in our business strategies and by contributing to solutions that mitigate climate change, we live out our strong commitment to sustainable development. Our environmental strategy has four key elements: • Manage our operations’ carbon footprint and identify areas of operation where we could utilize renewable energies • Develop products and services that enable consumers and businesses to reduce their environmental impact • Manage our industrial wastes • Help protect the environment where we operate Air business travels by employees Notes CO2 * HFC agent is not included since the company utilizes non-HFC refrigeration systems in all facilities since 2007. * Leased vehicles are not included in this accounting. Summary of Greenhouse Gas Emissions Emission Sources MANAGING OUR CARBON FOOTPRINT We want to lessen our operations’ carbon footprint to help mitigate the impacts of increased carbon dioxide emissions from our activities. We continue to minimize our overall energy use and explore ways to reduce emissions from the power we use through renewable alternatives. While the risks of climate change are clear to us, they also represent a market opportunity for us – our involvement not only benefits our environment, it also helps us to minimize our consumption of resources and thus, our costs. Total Emissions in units of CO2-equivalent) Metric ton CO2 GHGs CONSIDERED CO2 CH4 N2O HFC PFC SF6 SCOPE 1 - Direct 7,902.20 Transport Vehicles Diesel 4,215.73 0 0 0 0 0 Gasoline 3,686.46 0 0 0 0 0 13025.7727 1.7579 0.1055 0 0 0 67.5449 0.0097 0.0006 0 0 0 Diesel Gasoline 7,163.20 13,191.62 GenSets SCOPE 2 - Indirect Electricity 114,427.00 114,427.00 1273.41 1,273.41 SCOPE 1 & 2 Sub-Total SCOPE 3 - Other Indirect Business Travel - via Air only Air Travel (Short Flight) 277.06 0 0 0 0 0 Air Travel (Medium Flight) 821.24 0 0 0 0 0 Air Travel (Long Flight) 175.11 0 0 0 0 0 T O T A L Overall, our energy use in 2009 resulted in a total of 136,794.23 metric tonnes of carbon dioxide emissions. 30 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report CO2 Scope 3 : Other Indirect Sources Emissions from transport-related activities like employee business travel (via Air only). Sustaining the Environment The challenges of climate change put an increasing pressure on society. Its implications to society and to the operations and growth of businesses are now felt more than ever. Our own experiences during typhoons Ondoy and Pepeng made us realize that the effects of climate change can impact our network directly because of extreme weather events. Electricity consumption of all owned and leased facilities 136,794.23 sustaining the environment GHG EMISSIONS FROM RELEVANT OPERATIONAL CLUSTERS Operational Cluster 2007 SOLID WASTE MANAGEMENT 2008 2009 Base Stations Number of Facilities from Electric Consumption 6,026 6,789 7,832 CO2 Emission, MT 73,441 84,721 94,270 Average Emission 12.19 12.48 12.04 Number of Facilities from Genset Fuel Consumption 1,829 2,033 2,515 11,974 11,012 13,192 CO2 Emission, MT Average Emission Total CO2 Emission, MT RENEWABLE ENERGY AND ENERGY SAVINGS We continued to apply renewable energies – such as wind and solar energy – for base stations located in remote areas. They don’t only provide a stable source of power but also help reduce the environmental impact of these stations. In 2009, we have 32 cell sites running on solar energy and four with wind power. We continue to study and apply this strategy to as many applicable sites as possible. We have also continued the use of light-eco technology in cutting down our electricity usage in our Valero Telepark in Makati and in GT-IT Plaza in Cebu offices. Light-eco uses an autotransformer to switch from normal to economy voltage. After a start up period of three to five minutes, the autotransformer 6.55 5.42 5.25 85,414.91 95,732.77 107,461.26 switches to the reduced voltage. The drop in current thereby reduces or minimizes the use of electricity which translates to financial savings. WATER MANAGEMENT Globe continues to operate a water-sustainable operation where we minimize our water use as well as establish measures to prevent water pollution. We also advocate among our employees and their families the responsible use of water in our facilities and in their individual households. MANAGING THE END-OFLIFE OF OUR LEAD-ACID BATTERIES One of the primary environmental issues that we address is the end-of-life management of the lead-acid batteries that are generated from our operations. Categorized as hazardous wastes under Republic Act 6969 due to its lead metal and sulfuric content, these used leadacid batteries require proper disposal through an accredited treatment and recycling facility. Since 2003, we have implemented a networkwide recycling program in cooperation with the Environmental Management Bureau of the Department of Environment and Natural Resources and the Philippine Recyclers, Inc. In 2009, we recycled 46,715 kilos of batteries. One of our key programs which involve our subscribers is the cellphone recycling program. By placing 30 recycling bins in corporate offices and business centers, commercial malls in Metro Manila and in Cebu City, we have encouraged our subscribers to drop in their used cellphones and accessories for proper disposal. By end of 2009, we have collected 259 pieces of old cellphones, 556 pieces of cellphone batteries and 633 pieces of accessories including chargers, earphones and cellphone cases. Volume of Recyclables Generated in Globe Telecom Plaza (2005-2009) Solid waste monitoring at gt plaza Summary of Environmental Gains from Used Lead-Acid Battery Disposal Program Year Globe continues to implement a solid waste management program in our corporate offices nationwide. We developed advocacy campaigns promoting waste reduction, material reuse and recycling and organized recyclables collection events to provide venues where trash gets converted to cash. Weight of Batteries (kg) Year Sulfuric Acid (liters) Lead (kg) Landfill Area (cu.meters) 2003 5,220 1, 044.00 3, 654.00 131.75 2004 157, 123 31, 424.60 109, 986.10 3, 965.83 2005 87,110 17, 422.00 60, 977.00 2, 198.68 2006 18, 160 3, 632.00 12, 712.00 485.36 2007 170, 112 34, 022.40 119, 078.40 4, 293.68 2008 49, 794 9,958.80 34, 855.80 1, 256.82 2009 46, 715 9, 343.00 32, 700.50 1, 179.10 Total 487, 519 106, 846.80 373, 963.80 13, 484.23 32 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Volume of Recyclables Collected (kgs) Amount (Php) Wastes Collected (kg) % of Recyclables Collected 2005 35, 492.16 96, 788.05 68, 832.50 52% 2006 27, 977.50 162, 410.50 85, 372.00 33% 2007 32, 647.50 185, 561.00 97, 696.00 33% 36, 867.50 218, 211.00 108, 665.00 34% 2009 22, 473.50 118, 263.00 103, 282.00 22% Total 155, 457.66 781, 233.55 463, 847.50 34% 2008 As a result of our Company’s Solid Waste Management and Recyclable Collection Events, a total of 155,457.66 kg of recyclable items were collected from year 2005-2009. This total volume represents the volume of wastes that were diverted from the landfill with a resource recovery value of Php 781,233.55. PROTECTING THE BIODIVERSITY IN AREAS WHERE WE OPERATE Globe continues to implement various tree-planting activities across the nation. In 2009, a total of 1,279 trees were planted in Fort Bonifacio, Taguig, Banate, Iloilo, Malabanan Watershed in San Pablo, Laguna, Talisay, Cebu and in Duero, Bohol. This is part of our commitment to sustain the biodiversity in areas where we operate. These initiatives also spearheaded our commitment to grow new 250,000 trees from 2009 to 2013. THE GLOBE CORDILLERA CHALLENGE In the first quarter of 2010, Globe BridgeCom, together with the Globe Adventure Club launched the Globe Cordillera Challenge to raise consciousness and funds for the reforestation of the Cordillera Mountains. By rebuilding the forests of the Cordilleras, Globe helps in securing the water supply, protect biodiversity and conserve the heritage of the Cordillera people. On Earth Day weekend April 24, 2010, seventy (70) bikers from the Globe Adventure Club, the Cordillera Conservation Trust as well as other collaborators like Subaru and media partners pedaled their way through a 40km high- altitude, cross-country trail from La Trinidad all the way to Kapangan, Benguet. This campaign resulted to funds raised amounting to Php300,000 which is equivalent to 15,000 seedlings to be planted in a denuded section of the Cordillera mountains. 34 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Building Communities, Bridging Communities Globe enriches its social commitment to areas where it can make a significant contribution in addressing issues involving the marginalized in our country. By utilizing our core strengths, our knowledge, our economic resources and our passion, we are committed to enable the communities where we operate to be active and responsible members of society. Through Globe Bridging Communities (Globe BridgeCom), Globe has taken its leadership in engaging stakeholders in the community in designing their own sustainable future. Whether utilizing their mobile phones in the barangay for governance and peacekeeping to harnessing the internet in public schools nationwide to become more effective teachers and students, Globe BridgeCom provided opportunities to underserved Filipino communities to participate and contribute in the country’s competitiveness. Globe Advocacy areas Leadership in ICT for EDUCATION youth development Empowering community Microenterprises ENVIRONMENTal sustainability COMMUNITY involveMENT and volunteerism Builiding communities, BRIDGING COMMUNITIES Leadership in ICT for Education Text2Teach For more than five years, the Text2Teach program has been providing public elementary teachers and students in the Philippines educational video materials that excite the students’ imagination in the classroom. By texting keywords through a Nokia mobile phone, the Globe network sends educational videos on Science, Math, English and Values back to the phone which is connected to a television for the students to watch. By starting the class with an interesting visual presentation on the subject matter, teachers ignite the students’ mind to participate in the discussion. Studies have proven that the use of Text2Teach resulted to a generally upbeat environment in the classroom and boosted knowledge gain of students. Originally intended for the use of students in grades 5 and 6 levels, Text2Teach has now also reached the interest of students in the lower grade levels. Teachers can order some 380 educational videos on the various subjects. In 2009, Globe together with the Text2Teach consortium: Ayala Foundation, Nokia, the Southeast Asia Ministers of Education Association-INNOTECH, the Department of Education and the Local Government Units were able to roll out Text2Teach in 97 schools nationwide. Today, about 900,000 students from 331 public elementary schools are able to use Text2Teach. I nternet- In- Scho ol s Program Global Filipino Teachers To complement ISP, Globe launched the Global Filipino Teachers (GFT) program in 2009 which enables teachers to integrate Information and Communications Technology (ICT) competencies in teaching basic subjects like English, Science, Math, and HeKaSi. GFT is implemented in partnership with the Department of Education and the Coalition for Better Education, a Cebubased non-profit organization composed of various education stakeholders from the academe, students, parents, non-government and business organizations. Text2Teach Roll-out Year/s Number of Schools Provinces 2005-2007 120 Quezon City, Manila, Batangas, Maguindanao, Cotabato City, North and South Cotabato, Sharif Kabunsuan 2008 82 Oriental Mindoro, Antique, Cagayan de Oro City 2009 97 Isabela, Ilocos Sur, Cagayan Valley, Benguet 2010 32 Pangasinan By partnering with the Philippine Department of Education (DepEd), through its DepEd Internet Connectivity Program, Globe invested on connecting public high schools even in the remotest barangays in the country. We have also partnered with the national program, Gearingup Internet Literacy and Access for Students (GILAS), the Growth with Equity in Mindanao, United States Agency for International Development and with the Coalition for Better Education (CBE) in providing opportunities for the schools to be connected to the rest of the world. Through this program, we have helped empower Filipino teachers and students to develop their technology skills and hopefully, to be able to compete in the global economy. The program also encourages the teachers and students to use the Internet as an integral tool for learning and to sustain the presence of Internet through means best managed by them. In 2009, the Internet-In-Schools Program (ISP) reached a milestone when it marked the connection of its 2,000th school to the Internet. The program has provided millions of students and teachers in the Philippines the opportunity to learn ideas from around the world. Globe has pioneered the use of the latest Information Technology (IT) platforms, such as WIMAX in the public educational system. 36 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Year No. of Public schools connected 2000 1 2001 20 2002 20 2003 18 2004 39 2005 334 2006 144 2007 227 2008 68 2009 1114 2010 17* Total 2002 *as of March 2010 Topics on this six-day teacher training program includes teacher enhancement on the proper use of ICT application for school-centered classroom activities, online assessment through the use of rubrics, effective and efficient management of class resources, creation of virtual classrooms and moderate discussion boards, preparation of portfolio of classroom project activities, and demo-lecture of the modules prepared by the teachers. Teacher enhancement remains one of the major concerns of DepEd. In the Basic Education Sector Reform Agenda, DepED has outlined several key innovations that will be used to improve the quality of education in the Philippines. One of these is developing capacities of teachers to conduct ICT-enabled learning activities in the classroom setting. With improved teaching knowledge, skills and attitudes especially in the application of ICT-enabled learning environment among our teachers, a marked improvement in the achievement rates of our students is also expected. In its initial evaluation, teachers who have taken the GFT training have commented positively on their experiences in the training. Several teachers said that it improved their teaching knowledge and skills. It is also noteworthy to mention that the experience provided a major paradigm shift on how the teachers looked at learning and how ICT can bring about the necessary skills and competencies among their students. While the teachers are aware of the challenges this new learning poses on the total learning environment, they also aspire to lead the technology usage and development in their schools. GFT intends to serve as a means to improve efficiency in the educational process. Furthermore, the Global Filipino Teachers have shown that the use of ICT in education helped improve memory retention, increase motivation and generally deepen understanding of the different subject areas as well as the development of their own classroom strategies. GFT promoted collaborative learning and group problem solving activities. We hope that as the Global Filipino Teachers program has promoted new approaches to working and learning, and new ways of interacting, our teachers have been provoked by a host of new questions about the evolving nature of pedagogy. Builiding communities, BRIDGING COMMUNITIES Hope for the Hearing-Impaired through ICT in Education Lalain Darunday, 21, of Corella in Bohol province, is hearing-impaired. When she was in Grade 5, she chose to drop out of school. She did not understand anything being taught in her classes from Grades 1 to 4 but the teachers just kept on giving her passing grades. In March 2009, she completed high school. And because several months before graduation her school introduced new Internet-based teaching methods, she is very excited to pursue college and take up Computer Technology. Dioscora Ramos, is a maverick educator. After majoring in Math in both her B.S. and M.A. degrees in Secondary Education, she pursued masteral units in Special Education (SpEd) in Cebu State College (now Cebu Normal University) while teaching at the first high school for the hearingimpaired in Cebu City, which she started. The paths of Lalain and Diosy crossed at the Tagbilaran High School for the Hearing-Impaired. Lalain travelled every school day up to 45 minutes each way between her home in Corella (a 6th class municipality known primarily as the home of the endemic Philippine Tarsier, the world’s smallest primate) in Bohol province and her SpEd school in Tagbilaran City. She really wanted to learn and Diosy had the passion and heart to teach her and others like her. Diosy’s approach to teaching the hearing-impaired had to be visual. For Physical Education, she had to dance in front of her students to demonstrate the types of dances. Teaching them first-aid, she had to play act the part of a person who was injured. She has mastered some kind of art in banging her head. Ultimately, by running their own organizations well, they contribute to the growth of their communities’ economic growth. Diosy said, “Before GFT, I was only teaching my lessons on powerpoint. I prepared everything for my students. After GFT, the students are now the ones who look at the websites and find the answer to my questions. Teaching with the aid of the Internet also gives her a lot of relief. “On my part, it’s lighter work.“ Five Globe BridgeCom Entrepreneurship Fairs were held in 2009. The fairs showcased the successful small enterprises of communities and organizations based in a particular region. It was conceptualized to bring together microentrepreneurs and community leaders who were successful in putting up and running their own businesses after attending the Globe BridgeCom Enterprise Development Training Programs. Globe believes that the small entrepreneurs have an important stake in growth and development. Through these programs, Globe makes a critical contribution in developing their capacity to join the marketplace, and eventually bring them to the mainstream of society as contributors and consumers. “As for my students, they enjoy using the Internet. They discover things, because they themselves open the websites. I encourage them to use other websites, then they compare what they have researched and they share with each other the websites they have found.” Lalain excitedly rejoined the conversation using signlanguage. “We’d choose different websites. We enjoyed it. We now enjoy Math exercises. Through the Internet, we learned how to make bread, cookies, and chocolate cakes. I helped teach other students. We learned Yahoo, Google, how to send emails,” she said. “I want to learn more about computers. I want to enrol in Computer Technology in Cebu Technological University,” Lalain gestured her response when asked what she would want to do next. Her mentor’s GFT training has led her to discover the wonders of computers and the Internet. It seems she knows that now nothing can stop her anymore from getting herself more equipped for life and greater learning. In 2009, the program also provided grants to 25 community enterprises nationwide. The support fund fueled the organizations’ startup processes or their expansion initiatives that will help spur economic growth and self-sufficiency in their own communities. “With computers, I understand,” Lalain concluded. Her world has lit up even more, and now boundlessly. Nothing limits her understanding anymore. In November 2009, Diosy’s teaching approach changed when she was selected by Globe and the Coalition for Better Education (CBE) to be among the third cluster of teachers to undergo the Global Filipino Teachers Program. “I liked the programs introduced to us in GFT,” Diosy said. “I’m trying my best now so that all my subjects use the Internet.” She cited as example, the dances. “My students are now watching the dances through the Internet. Before, I used to be the one dancing in front of them.” Lalain, on her part, used vivid gestures and sign-language to affirm her teacher. With other mentors acting as her interpreters, she said: “For First-Aid, before we had to act out in class the things we have to do when there’s a wound and when the head is banged.” Lalain motioned to bang her head and like an actress, she grimaced to show pain in a head injury. “Now we’re using the Internet, and we can see the pictures!,” she said, her face beaming with elation. 38 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Empowering Entrepreneurs in the Countryside For more than five years, Globe BridgeCom has been implementing an enterprise development program to communities nationwide where our mobile stations are located. The program originally focused on capacity building interventions to strengthen community leadership and to introduce various entrepreneurial skills and livelihood opportunities to local government units as well as community organizations. At the end of 2009, more than 15,000 barangay leaders and microentrepreneurs, officers from cooperatives and microfinance institutions, youth groups and families of Overseas Filipino Workers have benefited from this program. This program has incorporated Globe products and services to enable the growth of the participants’ microenterprises and to either develop new enterprises and expand small businesses. By making enterprise skills development available in the far flung areas, Globe BridgeCom democratized entrepreneurship to those who need it most: small entrepreneurs in the countryside. The project was implemented in partnership with training institutions, microfinance institutions, NGOs and local government units. The program is divided into three project components namely: Globe BridgeCom Enterprise Development Training Program, Globe BridgeCom Entrepreneurship Fair, and the Globe BridgeCom Livelihood Grants. Individuals from 1,200 barangays have undergone training in various aspects of enterprise development. These include topics on product development, financial management, operations, supplier management and marketing. Through these learning opportunities, the individuals are able to manage their resources well, develop their own staff and learn strategies that will best meet the needs of their target consumers. Providing Learning Opportunities for Youth Leaders Globe BridgeCom has supported a number of youth development initiatives which empower Filipino youth leaders become catalysts of positive change in their own communities. It supported various leadership training camps and workshops across the nation including a management training program which prepares business and management students for the competitive world of telecommunications. Globe BridgeCom also partnered with the Education for Youth Enterprise Foundation to implement the WIWAG Business Week program in selected state colleges and universities nationwide. Builiding communities, BRIDGING COMMUNITIES Globe BridgeCom also supported the annual Global Xchange program organized by VSO Bahaginan and the British Council where nine Filipino and nine British youth leaders embarked on a nine month volunteer experience in the United Kingdom and in the Philippines. Globe BridgeCom also continued to support the annual Ayala Young Leaders Congress and the National Students Public Relations Congress which honed university students’ skills on leadership and communication, respectively. Community Involvement Utilizing mobile technologies for governance and peacekeeping Regular unwanted occurrences in rural communities such as theft and acts of sabotage have threatened peace and economic prosperity in these areas. In some communities, one’s own peace of mind and safety has become unstable, bringing threat to property as well as order. A growing social stigma is also being experienced by residents in their hometowns tagged as “hotspots,” hindering economic growth and development. This unique situation in some of the country’s rural communities paved the way for mobile technologies to be more meaningful for peacekeeping and governance. Through Globe BridgeCom’s “Sagot Ka Ni Kap!” (the village captain cares for you), stakeholders in the community – from the barangay captain to every resident – have a contribution in keeping the peace and order in their area. The program helps communities prevent crime in their areas by providing communication and relevant law enforcement equipment including mobile phones and SIMs, handheld radios, uniform shirts, tear gas, boots, flashlights, raincoats, and handcuffs to the local community police auxiliary units or barangay tanod. well-equipped to handle the situation. Globe BridgeCom has also established a barangay-based hotline where community members are encouraged to file incident reports via texts or calls. To date, there are more than 200 barangays who have implemented the “Sagot Ka ni Kap!” program. To sustain the heightened awareness on peace and order of the community, the program also capitalized on a Department of Interior and Local Government (DILG) order requiring all barangays to submit their case incidence reports to the department on a monthly basis. To encourage compliance, the “Sagot Ka Ni Kap!” program offers an incentive for participating barangays. The scheme rewards barangays who submit their case incidence reports diligently for a period of six months by way of providing additional law enforcement equipment. The “Sagot Ka Ni Kap!”program was able to turnaround peace and order issues into an opportunity for leadership. Though admittedly limited as a total intervention for eradicating criminal elements, the program is successful in espousing constructive dialogue within the barangay and providing a solid foundation for future cooperation between the communities and the business sector. These, more than anything else, are the key elements for lasting peace. Disaster Relief The year 2009 saw one of the worst typhoons and flooding in the country’s history. Metro Manila and nearby provinces of Rizal and Laguna were submerged in floodwaters in the aftermath of Typhoon Ketsana (local name: Ondoy). Thousands of families were displaced and hundreds more died. Army troops, police and civilian volunteers were deployed to rescue victims. The landslides and severe flooding left at least 246 people dead and many others missing. Distress calls and emails from thousands of Metro Manila residents and their worried relatives flooded TV and radio stations overnight as most of the power, communication, and water connections were lost. This year also launched the collaborative efforts of Globe, Technical Education and Skills Development Authority (TESDA) and National College of Science and Technology (NCST) with the Dual Training System (DTS) program, a first of its kind in the telco industry which will allow select NCST faculty and out-of-school youth students to undergo an intensive Telecommunications and Broadband Certification Program. As part of our commitment to provide opportunities for young Filipinos, Globe BridgeCom participated in Project 175KB which gave books to various public schools nationwide. The program has been effective in preventing crime as barangay leaders and tanod were able to respond immediately to emergencies and other complaints from their residents. In addition, every barangay tanod is now quick to respond to any emergencies or complaints since they are informed immediately and are 40 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Globe was not spared of the disaster as many equipment in low lying areas were submerged in flood. Despite this catastrophe, we renewed our commitment to be a meaningful partner of the people, especially during disasters. Globe launched the Bangon Pinoy Program in response to the widespread devastation caused by typhoons Ondoy and Pepeng and to help our customers, employees, business partners, and adopted communities rebuild their homes and lives. Bangon Pinoy is a comprehensive, integrated effort, combining rebates for our affected subscribers, community rebuilding activities together with employee volunteers, and special assistance packages for our distributors and other local businesses to help them get back on their feet. This large scale integrated program that intertwined volunteerism, disaster response, with service recovery and corporate social responsibility captured our commitment to keep people connected at the most critical moments, showcasing our customer focus and responsiveness at all times. We quickly mobilized our resources and manpower for this purpose to help people quickly connect with those that matter in their lives. We invested in the timely repair of our mobile and broadband networks, and provided rebates, payment reprieves, and flexible connection options for our affected subscribers. Globe Bangon Pinoy has also provided relief packages to 17,000 families. Globe BridgeCom and the Singapore Telecom (SingTel) Regional CSR Program Globe BridgeCom has worked with member companies of the Singapore Telecom Group to build on CSR programs that give life to its commitment of being a responsible corporate citizen. In 2009, Globe hosted the first ever SingTel Group Regional CSR Workshop in Manila, where CSR executives from the companies shared their country programs and found ways to collaborate and address various developmental challenges in the region. As part of regional collaboration efforts, the GlobeSingTel Reading project was launched in November 2009. About 1,300 books were collected from SingTel staff in Singapore and shipped to the Philippines, where Globe staff distributed the books. A reading program was also implemented in the schools to encourage underprivileged students in rural areas to develop a command of the English language. The ability to speak and write good English will open up life opportunities for these young children aged 7-10. Meanwhile, Optus Australia through its offshore call center partner in the Philippines, 24/7, has supported the World Vision Community Scholars Program. Through this program, Optus and 24/7 jointly sponsored 50 children in Cavite since 2008. Volunteers from 24/7 spend time to run educational workshops for the children. Globe BridgeCom The program is built on the values of hope and perseverance, and on the belief that even in the toughest of times, we can rely on each other and collectively rise above the challenges. Unleashing the power of technology to stir community participation and bring relief where it was needed, Globe Bangon Pinoy launched a social media campaign to raise funds for typhoon victims through Twitter. The Philippine National Red Cross was also our beneficiary when we channeled donations to their cause through our text messaging service. By enabling these platforms, we made a difference in the lives of many. complemented the program by equipping their local school with computers and free internet. Through this effort, marginalized students are given the opportunity to access communications technology and information to achieve their full potential. In the wake of Typhoons Ketsana and Parma, SingTel supported the Globe Bangon Pinoy program through a Php1 Million donation. Relief goods were distributed to more than 17,000 families in Marikina, Rizal, Muntinlupa, Pangasinan and Laguna. The fund was also utilized to build a farm in Tarlac. These partnerships were great opportunities for the companies in the SingTel group not only to collaborate on their expertise and experiences on CSR but help the disadvantaged Filipino communities rebuild lives by harnessing its collective resources. Globe BridgeCom and the Millennium Development Goals In the year 2000, leaders from various sectors around the world, developed and adopted the United Nations Millennium Development Goals or MDGs. Its mission is to form a global partnership that will tackle extreme poverty across nations. This resulted to the creation of eight goals or a series of targets that member nations agreed to meet by 2015. The MDGs Globe, through its product and service development, business operations and innovation as well as its Globe BridgeCom programs have contributed in one way or another in the attainment of these goals. The table below provides some examples. How telecommunications can contribute Examples of How Globe is Contributing Globe has developed mobile and internet technology solutions to address some social problems. For example, our Globe Autoload Max provides an income opportunity to low-income segments of our country. Through bucket SMS promos, as well as special tariff offers, micro-enterprises are able to utilize technology to enable growth of their small businesses. GCash has also been very pervasive in use especially for cooperatives and micro-finance institutions. Eradicate extreme poverty and hunger Research shows mobile phones can increase productivity, and generate higher incomes Achieve universal primary education Globe products and services such as SMS and broadband can help students and teachers access educational content; Globe BridgeCom’s major community investment focuses on education access especially for the marginalized. Globe has invested on mobile and broadband infrastructure so public schools nationwide can have access to rich educational content through their cell phones and through the internet. More than 300 public elementary schools benefit from Text2Teach and more than 2000 public high schools were connected to the Internet. Teachers also benefit from ICT training utilizing these connectivity platforms. Promote gender equality and empower women Mobile and internet technologies can empower women through better access to online learning or through mobile banking. Globe BridgeCom has been providing women micro-entrepreneurs with the necessary entrepreneurship training and livelihood support in their communities. Women microfinance clients also get the opportunity to augment their family income through micro-financing powered by our mobile banking platform, GCash which is very pervasive in micro-finance institutions in the countryside. Reduce child mortality Mobiles can significantly improve the efficiency of healthcare services, particularly in remote areas. Globe is continuously looking for possible support initiatives in this area. We are studying a telehealth system especially for doctors in the countryside. Improve maternal health Mobiles can significantly improve the efficiency of healthcare services, particularly in remote areas. Globe is continuously looking for possible support initiatives in this area. We are studying a telehealth system especially for doctors in the countryside. Combat HIV/ AIDS, malaria and other diseases Innovative mobile and broadband solutions together with awareness building and advocacy can help prevent these health challenges. Using infrastructure and technological capability, Globe and Pilipinas Shell Foundation Inc. developed the Malaria InfoText service, an SMS channel that enables health workers and volunteers to send and receive reports on the disease. The program utilizes the TxtConnect plus BizTxt service of Globe which provides an end-to-end solution to collect reports on the status of cases, drug inventory, and other activities from more than 500 sites in five provinces nationwide and aims to bring down malaria morbidity and mortality rates by 70% and hopes a Malaria-free Philippines by 2020. Ensure environmental sustainability Develop a global partnership for development The telecommunications industry have already shown effective ways to reduce its carbon footprint primarily through the greening of its operations: utilizing renewable energies for the network, greening the fleet, green marketing and protecting biodiversity in its areas of operations. To reduce the environmental impact of our network, solar and wind energy powered cell sites are now being used in selected Globe cell sites especially those located in remote areas. Coupled with greening our fleet, supply chain and marketing initiatives, as well as, involving our consumers to subscribe to paperless billing, we integrate environmental sustainability in our business strategy. The telecommunications industry has demonstrated already how its business and its mobile network operations have helped bridge the digital divide through its investments on ICT infrastructure as well helping put up ICT-based microenterprises for community organizations. Globe Telecom has utilized its business, value chain, products and services to help solve social challenges such as access to education, empowering micro-entrepreneurs and democratizing technology so the marginalized can benefit from it. By lowering access and service rates, many more Filipinos, especially in the low-income groups stay connected to their families all over the world. Recognition from our stakeholders Our steadfast efforts to bring people together using the highest standards of performance have not escaped the attention of the most respected institutions in the world, and have brought Globe acclaim. Globe has set a benchmark in the Philippine telecommunications industry with the Metro Ethernet Forum (MEF) 9 Certification for its Carrier Ethernet Services. Composed of over 150 of the world’s top service providers and equipment vendors, the MEF gives its seal of approval only to those that have put in place the technical specifications and implementation agreements conforming to the highest global standards. For All-Around Excellence in Financial Performance, Management, Corporate Governance, Corporate Social Responsibility, 42 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Environmental Responsibility and Investor Relations, Globe won the The Asset Magazine’s Platinum Award for excellence of our operations, the soundness of our management practices, and excellence in social responsibility and sustainability. Having met the Quality Management System standard for its Data Center, Globe received its ISO 9001:2008 certification upgrade which further assures enterprise customers that the Globe Data Center applies duly certified processes in delivering its highly reliable services. This was given by Anglo Japanese American (AJA) Registrars LTD. The efforts of Globe in instituting good governance practices were cited among Asia’s best at the 5th Corporate Governance Asia Recognition Awards in Hong Kong. This is the third citation for corporate governance that Globe received in 2009, following top rankings in a separate poll by Finance Asia, where Globe was adjudged 3rd Best Managed Company and Best in Corporate Governance and one of the top 15 publicly listed companies in the Philippines to obtain the highest score from the Institute of Corporate Directors’ Corporate Governance Scorecard Project. We were also featured for our internal audit practices in the Asian Confederation of Institutes of Internal Auditors (ACIIA) publication entitled “Governance, Risk Management and Control: Internal Audit Leading Practices, Case Studies in Asia”- the first book published by ACIIA (a confederation of 14 IIA affiliates in the Asia Pacific region). Aligned with the resolve of the Company to uphold the principles of good governance, Globe Internal Audit shares its practices on corporate governance and internal auditing. The Employees Confederation of the Philippines also awarded Globe with citations in the KAPATID AWARDS for Outstanding Achievement in strategic visioning and partnering for business and job survival as well as best practices in the field of social accountability. Globe BridgeCom continue to be recognized by our stakeholders, locally and abroad. Globe ranked no. 9 in the Philippines and no. 97 in the Asia Pacific in the Asian Sustainability Rating conducted by CSR Asia. • Gold Award for Globe Bridging Communities for Best Community Projects in the Global CSR Awards • Bronze Award for Globe Bridging Communities for Best Workplace Practices in the Global CSR Awards • Management Association of the Philippines’ CSR Leadership Challenge Award for Enterprise Development • Public Relations Society of the Philippines’ Anvil Award of Excellence each for Globe Bridging Communities and Globe BridgeCom’s Disaster Response • Anvil Award of Merit each for Internet In Schools Program and a Plaque of Recognition for Globe BridgeCom Employee Volunteerism • International Association of Business Communicators’ Philippine Quill of Excellence each for Globe BridgeCom’s Internet in Schools Program, Sagot Ka Ni Kap! and Globe BridgeCom Enterprise Development • Philippine Quill of Merit each for Globe Bridging Communities, Globe BridgeCom Disaster Response,“From Philanthropy to Sustainability: Globe’s CSR Journey”, Globe BridgeCom Employee Volunteerism and Globe BridgeCom Entrepreneurship Fairs • Globe Internet in Schools Program was Category Finalist in the American Chamber Foundation, Inc.’s 2nd CSR Excellence Awards All these inspire us to outdo ourselves, and we will continue to do so keeping in mind that our responsibility is, first and foremost, to our customers. 44 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report GRI INDEX Profile Disclosure Globe Reporting Description Reference Comments 1. Strategy and Analysis 1.1 Statement from the most senior decision-maker of the organization. Message from Globe Leaders 1.2 Description of key impacts, risks, and opportunities. About Globe; Living out our Sustainability Agenda; Our Commitment to Ethical Leadership 2.1 Name of the organization. About Globe 2.2 Primary brands, products, and/or services. About Globe 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. About Globe 2.4 Location of organization's headquarters. About Globe 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. About Globe 2.6 Nature of ownership and legal form. About Globe 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). About Globe 2.8 Scale of the reporting organization. About Globe 2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2.10 Awards received in the reporting period. 2. Organizational Profile There were no significant changes during the reporting period regarding size, structure or ownership Recognition from our Stakeholders 3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. About this Report Full year 2009 including some 2010 highlights 3.2 Date of most recent previous report (if any). About this Report This is our second sustainability report. 3.3 Reporting cycle (annual, biennial, etc.) About this Report We report on an annual basis 3.4 Contact point for questions regarding the report or its contents. Back Cover 3.5 Process for defining report content. About this Report 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). About this Report 3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). About this Report 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/ or between organizations. This is not applicable as this report focuses mainly on the Philippine operations. Profile Disclosure 3.9 3.10 3.11 Globe Reporting Description Reference Comments Profile Disclosure Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. The techniques in calculations are reflected where applicable. Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods). Restatements were made in accordance to the GRI Indicators applied. Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. About this Report 3.12 Table identifying the location of the Standard Disclosures in the report. GRI Index 3.13 Policy and current practice with regard to seeking external assurance for the report. About this Report There were no significant changes in terms of materiality and scope. We added indicators and met the requirements for a B-level reporting. 4. Governance, Commitments, and Engagement 4.1 4.2 Description Reference Comments 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. Our Commitment to Ethical Leadership Also appears in our Annual Report 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Contributing to the Nation’s Growth, Bridging Communities, Building Communities 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. Contributing to the Nation’s Growth 4.14 List of stakeholder groups engaged by the organization. Shared Responsibility on Sustainability 4.15 Basis for identification and selection of stakeholders with whom to engage. Shared Responsibility on Sustainability 4.16 Approaches to stakeholder engagement, including Shared frequency of engagement by type and by stakeholder group. Responsibility on Sustainability Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Shared Responsibility on Sustainability Description reference Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Our Commitment to Ethical Leadership Also appears in our Annual Report 4.17 Indicate whether the Chair of the highest governance body is also an executive officer. Our Commitment to Ethical Leadership Also appears in our Annual Report G3 DMA Globe Reporting 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. Our Commitment to Ethical Leadership Also appears in our Annual Report DMA EC Disclosure on Management Approach EC Living Out the Sustainability Agenda 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Our Commitment to Ethical Leadership Also appears in our Annual Report DMA EN Disclosure on Management Approach EN Living Out the Sustainability Agenda 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance). Our Commitment to Ethical Leadership, Developing Our People, Enriching Lives Also appears in our Annual Report DMA LA Disclosure on Management Approach LA Living Out the Sustainability Agenda DMA HR Disclosure on Management Approach HR 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Our Commitment to Ethical Leadership Also appears in our Annual Report Living Out the Sustainability Agenda DMA SO Disclosure on Management Approach SO 4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization's strategy on economic, environmental, and social topics. Our Commitment to Ethical Leadership Living Out the Sustainability Agenda DMA PR Disclosure on Management Approach PR Living Out the Sustainability Agenda 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. About Globe, Living Out the Sustainability Agenda EC3 Coverage of the organization's defined benefit plan obligations. Developing Our People, Enriching Lives Description reference 4.9 Our Commitment Procedures of the highest governance body for overseeing to Ethical the organization's identification and management of Leadership economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance. 46 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Our Commitment to Ethical Leadership comments STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs) Performance Indicator Globe Reporting Market presence EC5 Also appears in our Annual Report Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation. Developing Our People, Enriching Lives Indirect economic impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Contributing to the Nation's Growth comments Performance Indicator Globe Reporting Description reference comments Performance Indicator Environmental MATERIALS Materials used by weight or volume. This is immaterial as we do not manufacture products. EN2 Percentage of materials used that are recycled input materials. This is immaterial as we do not manufacture products. Energy EN3 Direct energy consumption by primary energy source. Sustaining the Environment EN4 Indirect energy consumption by primary source. Sustaining the Environment EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. Sustaining the Environment reference LA10 Average hours of training per year per employee by employee category. Developing our People, Enriching Lives LA12 Percentage of employees receiving regular performance and career development reviews. Developing our People, Enriching Lives Diversity and equal opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Developing our People, Enriching Lives LA14 Ratio of basic salary of men to women by employee category. Developing our People, Enriching Lives Social: Human Rights Sustaining the Environment HR4 Total number of incidents of discrimination and actions taken. We have not been subjected to any legal action for incidents of discrimination. BIODIVERSITY EN12 EN14 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Sustaining the Environment Strategies, current actions, and future plans for managing impacts on biodiversity. Sustaining the Environment Emissions, effluents and waste Child labor HR6 Total direct and indirect greenhouse gas emissions by weight. Sustaining the Environment EN22 Total weight of waste by type and disposal method. Sustaining the Environment Social: Labor Practices and Decent Work Social: Labor Practices and Decent Work LA2 LA3 Developing our People, Enriching Lives Total number and rate of employee turnover by age group, gender, and region. Developing our People, Enriching Lives Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Developing our People, Enriching Lives Developing our People, Enriching Lives Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations. Developing our People, Enriching Lives Social: Society Community SO1 Employment Total workforce by employment type, employment contract, and region. Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor. Security practices HR8 EN16 LA1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. Bridging Communities, Building Communities PUBLIC POLICY SO5 Public policy positions and participation in public policy development and lobbying. Contributing to the Nation's Growth Anti-competitive behavior SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. We have not been subjected to any legal action for anticompetitive conduct during the reporting period. Labor/management relations LA4 LA5 Percentage of employees covered by collective bargaining agreements. Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. Developing our People, Enriching Lives Developing our People, Enriching Lives Occupational health and safety LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. LA8 Education, training, counseling, prevention, and risk-control Developing our programs in place to assist workforce members, their People, Enriching families, or community members regarding serious diseases. Lives 48 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report comments Non-discrimination WATER Total water withdrawal by source. Description Training and education EN1 EN8 Globe Reporting Developing our People, Enriching Lives Social: Product Responsibility Living Out the Sustainability Agenda Marketing communications PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Globe abides to the standards and Code of Ethics set by the Advertising Board of the Philippines. We include this GRI Application Level table in our report to support our self-declaration of this report at Application Level B. Report on a minimum of 10 Performance Indicators, including at least one from each of Economic, Social and Environmental The Global Reporting Initiative (GRI) is an organization that focuses on developing a set of sustainability reporting guidelines that cover an organization’s social, economic and environmental performance. It develops and advocates a reporting framework that will enable businesses to disclose information absent from conventional financial reports. It is considered Report on all criteria listed for Level C plus: 1.2 3.9, 3.13 4.5 - 4.13, 4.16 - 4.17 Management Approach Disclosures for each Indicator Category Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environment, Human Rights, Labor, Society, Product Responsibility. B+ A A+ Same as requirement for level B Management Approach Disclosures for each Indicator Category Report on each core G3 and Sector Supplement Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator; or b) explaining the reason for its omission. the most comprehensive and credible set of sustainability performance disclosure guidelines ever produced, to which thousands of sustainability reports have been checked against. Report Externally Assured Not Required B Report Externally Assured Report on: 1.1 2.1 - 2.10 3.1 - 3.8, 3.10 - 3.12 4.1 - 4.4, 4.14 - 4.15 C+ Report Externally Assured G3 Performance Indicators & Sector Supplement Performance Indicators C OUTPUT G3 Management Approach Disclosures OUTPUT Standard Disclosure G3 Profile Disclosures OUTPUT Report Application Level Globe Corporate Social Responsibility and Sustainability Ma. Yolanda Crisanto, Head , Corporate Communications Jeffrey Tarayao, Head, Corporate Social Responsibility Abelyn Evangelista, Specialist, Corporate Social Responsibility Melissa Besa, Head, Safety, Health and Environment Programs Joseph Ayllon, Head, HR Communications Edward Joseph Francisco, Senior Specialist, Internal Communications Design and Layout Affinity Express Philippines Inc. / Medium3 Inc. Photography by Stephen Militante Fernando Esguerra Lemer Kim Sy Globe Click Club GRI G3 is the third and newest set of standards issued by the GRI in October 2006. Globe 2009 Corporate Social Responsibility and Sustainability Report cover page and inside pages use Beckett Expression recycled paper, which contains 30% post consumer waste recycled fiber. 50 REALIZING CHANGE The 2009 corporate social responsibility and sustainability report Realizing Change Globe 2009 Corporate Social Responsibility and Sustainability Report For further information, please contact: Jeffrey Tarayao Head, Corporate Social Responsibility E-mail: [email protected] Telephone number: (632) 7302624 • Fax: (632) 7393075 Or write to Globe Bridging Communities 5F Globe Telecom Plaza I Pioneer corner Madison Streets Mandaluyong City, 1552 Philippines E-mail: [email protected] www.globe.com.ph