• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Corporate Responsibility Report 2009 - Full report
 

Corporate Responsibility Report 2009 - Full report

on

  • 1,933 views

Full Report describing Telstra\’s corporate responsibility achievements and commitments

Full Report describing Telstra\’s corporate responsibility achievements and commitments

Statistics

Views

Total Views
1,933
Views on SlideShare
1,928
Embed Views
5

Actions

Likes
0
Downloads
13
Comments
0

2 Embeds 5

http://www.linkedin.com 4
http://www.lmodules.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Corporate Responsibility Report 2009 - Full report Corporate Responsibility Report 2009 - Full report Document Transcript

    • Telstra Corporate Responsibility Report 2009
    • Telstra’s corporate responsibility reporting Our corporate responsibility (CR) performance against publicly reporting comprises this stated planned actions from our publication, 2008 report and on the issues the Telstra 2009 Corporate material to our business and Responsibility Report, as well as our stakeholders. CR website. The reporting covers Telstra CR website - Our CR Telstra’s economic, social and website provides full details about environmental contributions and our approach and activities in performance during 2008/09, and is 2008/09. A section on Reporting & intended to provide comprehensive Performance provides access to information to the full range of our full range of benchmarking, Telstra’s stakeholders. social and environmental reports. Our reporting covers the You can use our Global Reporting 2008/09 financial year for the Initiative (GRI) Index to navigate our Australian operations of Telstra CR website and report. Visit www. Corporation Limited (excluding telstra.com.au/cr. Sensis, Telstra’s information Our reporting has been and advertising business, unless developed with reference to otherwise specified). A full account the Global Reporting Initiative of the corporate responsibility (GRI) G3 Guidelines and the performance of telecommunications sector Sensis can be found at supplement, and this year applies www.about.sensis.com.au. the GRI Framework Telstra 2009 Corporate to a level C (self declared). Responsibility Report - This publication focuses on our Feedback on our reporting is welcome. Please email Nancie-Lee Robinson, Senior Advisor, Corporate Responsibility, at cr@team.telstra.com Printed on Stephen Chilled White by Spicers Paper
    • CEO MESSAGE CEO Message To focus our efforts in 2009/10, I have established a senior level Corporate Responsibility Council to guide our corporate responsibility strategy. The strategy focuses on areas critical to the success of our business and to Telstra’s standing as a good corporate citizen. For the first time, we will be announcing ambitious, long term targets to drive our performance in key areas – customer Since my appointment to the position satisfaction, carbon emissions and of CEO in May 2009, I have reflected employee engagement. We aim to make on the incredible work that has been Telstra a company people enjoy doing done by our people every day. Despite business with, as well as a great place challenging macro-economic conditions, to work. we have achieved strong results for fiscal Our seventh corporate responsibility 2009 and we continue to get on with report outlines the services we deliver the job of providing the nation with the to all Australian communities and next generation networks and services our contribution to the national and that are the foundation for social local economies. It shows that Telstra inclusion, economic growth, productivity takes its social and environmental improvement and sustainable responsibilities very seriously and prosperity. provides a comprehensive account As a company that touches the lives of Telstra’s progress against planned of millions of Australians every day, actions to improve our performance we have an important responsibility to during 2008/09. act ethically and responsibly in all that This report is evidence of Telstra’s we do. Every single thing we do has an ongoing commitment to our customers, impact on our company, our customers, shareholders, employees and the our shareholders and the nation. We communities in which we operate and I want to make sure that our every welcome your feedback – please contact effort counts. us at cr@team.telstra.com. David Thodey Chief Executive Officer November 2009 1
    • Contents 1. CEO message 23. Disaster relief 24. Digital inclusion 3. Performance summary 27. Performance and 2008/2009 commitments 4. Ethics and governance 28. Employee engagement 5 Corporate responsibility 29. Human capital development governance 31. Promoting diversity 6. Material issues 33. Health and safety 7. Stakeholder engagement 34. Mental health and wellbeing 9. Economic impact 35. Performance and 10. Human rights commitments 11. Suppliers 11. Performance and 36. Climate change commitments 37 Greenhouse gas emissions 40. Resource efficiency and waste 12. Impact of 42. Employee engagement telecommunications 44. Using ICT to drive sustainability 13. National broadband network 45. Performance and 13. Next generation networks commitments 15. Productivity 17. Mobile phones and health 46. Community 18. Base stations and investment electromagnetic emissions 47. Telstra Foundation 18. Cyber safety and security 48. Sponsorship 19. Performance and 50. Volunteering commitments 52. Performance and commitments 20. Customer service 21. Keeping Australia connected 21. Improving customer satisfaction 2
    • PERFORMANCE SUMMARY 2008/2009 Performance summary 2008/09 Performance indicator 08/09 07/08 06/07 Financial Sales revenue $25.4 billion $24.7billion $23.7 billion EBIT $6.6 billion $6.2 billion $5.8 billion Profit after tax and minority interests $4.1 billion $3.7 billion $3.3 billion Ordinary dividends (cents per share) 28 28 28 Socio-economic Total workforce 43,181 46,649 47,840 Total domestic workforce (includes Sensis) 31,662 33,982 35,706 Wages and salaries $4.1 billion $4.2 billion $4 billion Local, state and Commonwealth taxes $1.8 billion $1.7 billion $1.8 billion Dividends to shareholders $3.5 billion $3.4 billion $3.4 billion Accrued capital expenditure $4.6 billion $4.9 billion $5.9 billion Community London Benchmarking Group (LBG)* measure of community investment $65.2 million $32.2 million # $18.8 million Employees Employee engagement N/A** 74% 73% Women in management roles 27% 24.6% 25.8% Lost time injuries frequency rate (per million hours worked) 2.14 2.54 2.14 Effective Health Safety & Environment (HS&E) audit results 44% 71% 88% Learning & development investment $104 million $75 million $60 million Learning & development investment per employee $2,800 $1,626 $1,500 Environment Greenhouse gas emissions (tonnes CO2e) 1,515,188 1,500,803 1,390,306 Greenhouse gas emissions (tonnes CO2e/ $million revenue) 59.4 60.4 N/A Total waste recycled (tonnes) 18,746 32,981 33,266 % Waste recycled 62% 69% 65% Total energy Use (GJ) 5,869,006 6,064,687 5,848,601 Total energy Use (GJ)/$million revenue 230.1 244.3 247.1 Volume of office paper (reams) 190,696 220,856 256,774 Volume of paper (reams) per employee 6.0 6.5 7.2 Water savings (kilolitres) 12,017 52,019 87,318 * Valuation includes cash, time, in-kind support and management costs for contributions made in Australia. # The figure reported in our 2008 CR Report ($38.4 million) included Sensis’s contributions. This has been amended here to exclude Sensis and to be consistent with 2007 and 2009 reporting. ** An EES was not conducted in 2008/09. The next EES is planned for 2009/10. 3
    • Ethics and governance Telstra is committed to acting ethically and responsibly in all that we do. Will Irving Telstra Group General Counsel Q&A Q: Why has Telstra established a Q: Why does reputation matter? by how they seek to be part of the Corporate Responsibility Council? solution to key social and environmental A: It is important to us that Telstra challenges. A: We are keenly aware of Telstra’s is a good corporate citizen, because The connection between investment position in Australia - a company that companies that behave ethically, treat potential and corporate responsibility in some way touches nearly every their people well and contribute to the is demonstrated by the emergence of Australian, every day. Our day to day communities in which they operate, investor-led sustainability initiatives, business is a vital thread in Australia’s are companies that people want to be such as the Carbon Disclosure Project, economic and social fabric. Therefore, a associated with - whether as customers, Dow Jones Sustainability Index and commitment to the highest standards of employees, suppliers or shareholders. FTSE4Good, and of socially responsible corporate governance, transparency investment funds. and stakeholder engagement is of Q: How does Telstra’s social and As a major business enterprise, Telstra critical importance. environmental performance impact on has a responsibility to our shareholders, The Corporate Responsibility Council, shareholders? employees, customers and to the nation comprising ten of Telstra’s group to continually improve the performance managing directors, will guide and A: With rising concern in the broader of our company and its businesses. By govern the company’s corporate Australian community about things like doing this in a responsible way, we also responsibility strategy. The strategy climate change, water management, foster prosperity in the industries and is organised around seven key areas, an ageing population and the global communities in which we participate. and for the first time, ambitious and financial crisis, the role of businesses long-term targets will be set to improve in society is receiving more attention. I our performance and enhance our think there is increasing recognition that reputation. the investment value, profitability and risk profile of companies is influenced 4
    • ETHICS AND GOVERNANCE Corporate responsibility governance Telstra’s commitment to corporate responsibility begins with a simple and Material issues straightforward commitment to principled decision making in all that we do. In determining our material issues, Telstra considered the significant economic, Telstra’s commitment to corporate responsibility begins with a simple and straight- environmental and social impacts of forward commitment to principled decision making in all that we do. From a principled our business that may affect our value, perspective, Telstra’s primary corporate responsibilities are to increase shareholder operations, reputation and longevity. We value and advance shareholder interests by: considered the following key internal and external factors: Telstra’s business strategy and providing customer service that meets the company’s corporate responsibility core competencies; the expectations of our customers and strategy, an area of increased focus in wins their continuing loyalty; 2009/10. The Corporate Responsibility Telstra’s company values, code of Council, comprising ten of Telstra’s Group conduct, business principles and providing our employees with good Managing Directors, will have a cross corporate responsibility principles; jobs at good wages; company view of Telstra’s corporate significant risks to the company providing good stewardship of responsibility performance and activities. and critical factors for ensuring the environment and technology The Council will report to Telstra’s CEO on Telstra’s success; solutions that enable others to do a quarterly basis. The first meeting of the the same; Council was held in August 2009. key future challenges for the telecommunications industry; providing access to communications Reporting and benchmarking issues raised through the for those who need it most; performance mechanisms we have in place contributing resources - people, In 2009, we completed a submission for stakeholder engagement, in money, technology, products and to the Dow Jones Sustainability Index particular through our Employee services - to support the communities (DJSI), achieving a rating of 80 per cent, Engagement Survey, consumer in which we operate and the needs of an improvement of ten percentage surveys, Telecommunications the larger society; and points from 2008. This index identifies Industry Ombudsman Report, advancing the national interest companies that lead peers in managing Telstra Consumer Consultative by strengthening the capability of risk and leverage upside across Council, media reports and the nation’s telecommunications the economic, social and customer feedback; infrastructure. environmental agenda. relevant laws and regulations, for The Telstra Values, Telstra’s Business In 2008/09, Telstra introduced a monthly example the National Greenhouse Principles and Company Policies, including e-newsletter, Corporate Responsibility and Energy Reporting System, the Code of Conduct, set out the practices, Matters, to provide senior Telstra the Energy Efficiency Opportunities principles and standards of behaviour executives and key external stakeholders Act 2006 and the new Forward Telstra expects employees and contractors with a regular update on Telstra’s with Fairness industrial to adopt in performing their work. Together performance as a responsible relations legislation; they reflect our obligations and underpin corporate citizen. key future challenges for our the way we work with our customers, our Telstra has reported annually on its society as identified by social shareholders, our colleagues, the regulatory corporate responsibility performance and environmental experts, bodies we deal with, our suppliers and since 2003 through its corporate governments and grass roots stakeholders in the community. responsibility reports. These reports can community organisations; and be accessed on our website at www. Corporate Responsibility Council telstra.com.au/cr along with summary sustainability context, including reports of our DJSI results, our monthly the Global Reporting Initiative, In 2008/09, a decision was made to establish Millennium Goals, and United a senior executive committee to oversee newsletter and a range of other Telstra social and environmental reports. Nations Global Compact. 5
    • ETHICS & GOVERNANCE Material issues Issue Impact Key elements of Telstra’s response Ethics and Telstra is a company that in some way • The Telstra Values, the Telstra Business Principles and the Company policies governance touches nearly every Australian every (including our Code of Conduct) provide guidance to all our officers and employees (p.4) day. A commitment to the highest on appropriate business and ethical behaviour. standards of corporate governance, • A senior level Corporate Responsibility Council has been established transparency and stakeholder to provide governance of Telstra’s corporate responsibility strategy engagement is of critical importance. and activities. Impact of Telstra recognises the significant • Telstra delivers Australia’s largest and fastest national mobile broadband telecommunications contribution that telecommunications network. (p.12) and information and communication • We support our customers to use our networks and ICT to address some of the technology (ICT) products and services nation’s most critical social issues – social isolation, health service delivery, make to people’s lives, community education and economic development. wellbeing, social inclusion, business • Telstra places high importance on effective and responsible management of productivity, economic development and electromagnetic emissions issues. global competitiveness. • Telstra works with industry, government, community organisations and internet users to address online risks and to develop measures that promote online safety. Customer service Customer satisfaction and service is a • Our Corporate Complaints Group manages our relationship with the (p.20) critical priority for Telstra and essential Telecommunications Industry Ombudsman, with a focus on reducing the number for business success. We recognise of escalated complaints. that not all aspects of the customer • An Employee Complaint Referral Process assists customers known to employees experience are at the standard our with serious unresolved complaints. customers expect from us. We need to be • Ideas gathering forums enable Telstra people to harness their extensive insight honest and transparent with customers into ways we can serve our customers better. as we work to improve our systems and • A new position, Director Customer Service, has been created to develop and service. manage a new company-wide program to improve customer satisfaction. • A Customer Satisfaction Council with senior representatives from across the business has been established to focus on critical customer experience issues. • We have developed key service and satisfaction metrics linked to an incentive scheme for nearly all employees to help drive improvements. Employee Telstra’s economic sustainability relies • Telstra is committed to providing a safe and engaging work environment for our engagement on strong employee relationships, which people. (p.28) can be strengthened with competitive • We have a strong focus on promoting diversity with a company wide Diversity wages and benefits, and flexible working Council to champion seven priority areas. arrangements. Our work environments • We have a comprehensive Health and Wellbeing Strategy and invest in health should foster employee diversity, provide promotion and prevention activities. safe working conditions, and support talent acquisition and retention. Climate change Telstra has a significant opportunity to • Telstra is committed to improving energy efficiency in our networks and (p.36) mitigate the impact of climate change properties and to adapting our business to reduce our exposure to the direct by maximising energy efficiency. We are impacts of climate change. one of the largest owners and operators • Telstra promotes cost-effective ways for customers, industry and organisations to help of commercial and network properties, reduce their energy use and greenhouse gas emissions by adopting ICT solutions. we have the largest automotive fleet of • We are working to reduce the environmental impact of our supply chain, and we its kind, we have over 7,000 suppliers and encourage our employees to reduce their carbon footprint at home and at work. over 30,000 employees across Australia. • The Climate Change Review Group, comprising senior leaders from across the company, is responsible for the climate strategy planning and implementation. Community As a provider of telecommunications and • Each month, Telstra’s Access for Everyone program assists more than one million investment one of Australia’s largest companies, Australians on low incomes or in financial crisis, to maintain an affordable and (p.46) we understand the positive impact accessible telephone service. our business can have on community • The Telstra Foundation, Telstra’s corporate philanthropy program, funds life and wellbeing. Engaging with the community projects aimed at reducing social and geographic isolation and communities we operate in provides promoting social inclusion. valuable insight into the expectations • Our sponsorship portfolio reaches across sport, the arts, the environment, health and needs of these communities and and welfare and we support business and women in business through the Telstra how we can contribute. Business Awards and Telstra Business Women’s Awards. 6
    • ETHICS AND GOVERNANCE Stakeholder engagement Telstra has a wide range of stakeholder groups and a long history of stakeholder engagement. Consultation and dialogue with key stakeholder groups helps to gather input and ideas, inform our decision making, strengthen our relationships and build trust. Telstra makes a genuine effort to engage with and understand its key stakeholders, through both formal and informal mechanisms. We believe that engagement and consultation helps to better meet customers’ needs, improve customer loyalty, enhance employee satisfaction, build broader community support and ultimately strengthen shareholder value. Stakeholder Interests and concerns Engagement methods All Australians Australians are interested in the full • www.telstra.com – Telstra’s corporate website provides information for range of Telstra’s activities. customers, shareholders and other interested members of the public on the latest activities at Telstra and includes public reports. Communities Communities are concerned about • Telstra Country Wide (TCW) Regional Consultative Forum helps to identify Telstra operates in access to services and the impact of the communications issues of importance in regional Australia. communities across our business on local communities. • At a state level, TCW Regional Executive Directors engage with state lobby the metropolitan, groups and representatives of State government and associated authorities. regional and remote • At a local level, the TCW Area General Managers engage with key areas of Australia. Our stakeholders to seek feedback and work proactively to meet local community communities include needs. non-government • Our mobile phone base station siting consultation processes help Telstra organisations. operate responsibly in designing, operating and managing mobile phone base stations and to minimise their impact on the community. • The Telstra Foundation engages with community organisations on issues impacting the lives of children and young people through its philanthropic grants program. Customers Our customers are interested in the • Telstra Disability Forum and Disability Equipment Program Consumer Our customers quality, affordability and accessibility Advisory Group provide mechanisms for consultation on our disability action include residential of our products and services, and the plan. consumers, small to privacy and security of their personal • Low Income Measures Assessment Committee provides advice on the medium enterprises, information and services. ongoing effectiveness of Telstra’s low-income package. large companies and • T[life]™ shops, Customer Experience Centres, Telstra Mentors and the organisations and Community Advocacy Program provide opportunities for us to assist our government. customers to meet their communications needs. • We undertake ongoing marketing and research to help us understand what our customers want. Employees Our employees have a broad range • Employee Engagement Survey provides all employees the opportunity Telstra’s workforce of concerns, including working to express their views about their jobs, the company and their working is large and diverse conditions, development opportunities environment. with over 30,000 and health and safety, as well as • Yabber is a Telstra intranet site that provides employees an opportunity employees in a wide range of interests in issues to share their personal stories - triumphs, challenges and passions - Australia. affecting their local communities and with all staff. environments. • Employee engagement opportunities relating to social and environmental issues include the Diversity Champion Network, Virtual Women’s Network, Green.Challenge@Telstra, Enable@Telstra and Spectrum Network. Government Telstra communicates regularly • Constructive relationships are built and maintained across all levels Our government with governments on a range of of government by our senior leadership team, Telstra’s Corporate and stakeholders are commercial, policy, regulatory and Government Relations team and Telstra Country Wide. at local, state and other matters in the interests of • We are required to work within relevant government legislative frameworks national levels, from its shareholders, customers and and to report our compliance and performance. Ministers and leaders employees. • Our Regulatory Affairs team manages Telstra’s relationship with statutory to department staff. regulators and industry bodies. • Telstra participates in regular forums and selected events with local, state and Federal government agencies. • Telstra’s Enterprise and Government business unit works with government customers to develop and deliver access to world-class information and communication solutions. 7
    • ETHICS & GOVERNANCE Stakeholder Interests and concerns Engagement methods Industry Industry stakeholders are • Telstra is a member of the key ICT industry groups, including These stakeholders interested in issues impacting the the Communications Alliance, the Australian Mobile include information telecommunications industry, Telecommunications Association, the Australian Information and communication including regulation, market trends, Industries Association, the Internet Industry Association, the technology (ICT) and consumer protection, and technology Australian Telecommunications Users Group and the Australian telecommunications and service developments. Interactive Media Industry Association. specific associations, as • Telstra is a member of the Mobile Carriers Forum that deals well as sector-specific specifically with social and environmental issues within policy, associations. regulatory and operational environments associated with the deployment and operation of mobile phone networks. • Telstra’s Industry Analyst Relations function strengthens domestic and global relationships with specialist analysts on ICT industries and markets. • Telstra is a member of the Australian Industry Group and the Business Council of Australia, two of Australia’s major business lobby groups. • Telstra is member of the Australian Services Roundtable, the peak lobby group for the Australian services sector. Investment community Investors and analysts are concerned • Our annual Investor Day is an opportunity for Telstra to provide This stakeholder group with the risk inherent in and return a detailed update to the financial markets on the performance of includes institutional provided by their investment, and the the various business units and on the company’s transformation. investors and sell-side ability of the company to meets its • The Investor Centre (www.telstra.com.au/abouttelstra/investor) is analysts. objectives. a dedicated resource for shareholders and potential investors. • The Investor Relations unit regularly engages with investors and analysts and co-ordinates meetings for the investment community with senior management. Media Telstra is one of the most widely • Telstra engages regularly with the media through our Chief Includes representatives scrutinised and reported companies in Executive Officer, senior executives, media spokespeople, from print, radio, TV and Australia. corporate affairs managers and other appropriate officers within online media. the company to provide information that is in the public interest. Shareholders Shareholders are interested • Telstra values a direct, two-way dialogue with shareholders Telstra has 1.4 million in financial returns, company and believes it is important not only to provide relevant shareholders. performance and governance issues. information quickly and efficiently, but also to listen, understand shareholders’ perspectives and respond to their feedback. • Telstra keeps shareholders informed through Annual General Meetings, an annual report and shareholder updates. • The Investor Centre (www.telstra.com.au/abouttelstra/investor) is a dedicated resource for shareholders, providing information about our share price and financial performance, presentations and annual reports. Suppliers Suppliers are interested in secure and • Telstra regularly engages with suppliers throughout and after Telstra engages with stable relationships with Telstra the sourcing process. Our vendor managers monitor and manage around 7,000 suppliers Telstra’s commercial relationship with its suppliers and address each year with total delivery, quality, social and environmental issues. spending around • The Supplying to Telstra website (www.telstra.com.au/supplying_ $11 billion. to_telstra) provides practical advice to prospective and current suppliers on supplying to Telstra. 8
    • ETHICS AND GOVERNANCE CASE STUDY: SOCIAL MEDIA ENGAGEMENT The communities on social media sites designed to protect the interests of The area hosted a ‘Ready Reckoner’ like YouTube, MySpace, Facebook and employees and the company. calculator allowing visitors to see how Twitter are growing at phenomenal The 3 Rs ask that when engaging in a much carbon they could save using rates. This interest extends to social media context employees: be telecommunications instead companies, including Telstra, which are clear about who they are representing; of travelling. beginning to use social media tools to take responsibility for ensuring that In September 2009, after four years, engage with customers, stakeholders references to Telstra are factually correct nearly 4.5 million visitors and over 10,000 and other relevant online communities. and do not breach confidentiality comments from Telstra stakeholders, Telstra embraces social media as an requirements; and show respect for nowwearetalking was closed. It will be important tool of corporate and business the individuals and communities they replaced in 2009/10 by an enhanced engagement. We also encourage our interact with. site that includes new Web 2.0 social employees to use social media in a In 2008/09, Telstra continued to build media functionality, more video and personal capacity as a way to reach out its online engagement with a 44 per an increased commitment to listening and share information and views with cent increase in visitor numbers to its to the views of customers and people friends and communities. online discussion forum and blog site outside Telstra. With the rapid growth and application of nowwearetalking. Telstra’s emphasis social media, Telstra recognised the need on two-way, open communication to have a policy that ensures employees with customers and stakeholders saw who use social media, either as part a 64 per cent increase in the number of of their job or in a personal capacity, comments published in the forum area. have guidance as to the company’s The forums covered topics expectations, particularly where the such as broadband, environment engagement is about Telstra, our and technology. products and services, our people, our Telstra also successfully launched an competitors or other business related online news, forum, and blog area called individuals or organisations. Smarter, Greener, Together to highlight Introduced in 2009, Telstra’s 3 Rs of Social the benefits telecommunications can Media Engagement are ‘guardrails’ bring to help deliver a low carbon future. Economic impact In designing, developing and implementing communications solutions for our customers, Telstra has a significant impact on the economy through employment, investment and our supply chain. During the 2008/09 financial year, Telstra’s business activities: supported 43,181 jobs (total invested $4.6 billion to continue creation of new and advanced business workforce); the build out of the Next G support and operating support systems paid out $4.1 billion in salaries and wireless broadband network, in and other investments to transform the wages; the continued deployment of the delivery of telecommunications services Telstra Next IP™ network, the in Australia. paid out $3.5 billion in dividends to 1.4 million shareholders; Financial summary paid $1.9 billion in Commonwealth, state and local taxes; 2009 $m 2008 $m Change $m Change % purchased more than $11 billion in Sales revenue 25,371 24,657 714 2.9 goods and services from around EBIT 6,558 6,226 332 5.3 7,000 suppliers; Profit after tax and minority interests 4,073 3,692 381 10.3 contributed an estimated $16.07 Ordinary dividends (cents per share) 28 28 - - billion to Australia’s Gross Domestic Product; and Year ended 30 June 2009. Includes Sensis. 9
    • ETHICS & GOVERNANCE Human rights Telstra’s existing policies value and protect human rights. For example, we promote diversity and with integrity in purchasing goods and the deliberate consent of Parliament. do not tolerate unlawful discrimination. services and conducting business with While no system is perfect, a legislated Our company-wide Diversity Council, our vendors. Social and environmental Charter of Human Rights could create a consisting of six Group Managing considerations in our supplier selection mechanism for this to occur and provide Directors, champions several diversity and evaluation processes are guided by for greater governmental accountability priority areas - age balance, cultural our Purchasing Ethics Guidelines and and focus on human rights. diversity, Indigenous, work-life flexibility, Environmental Purchasing Guidelines. disability, gender and sexual orientation The role of business in protecting and gender identity. Our Health, Safety Support of Human Rights Charter human rights and Environment (HSE) team oversees Telstra registered its interest in Telstra has encouraged other our health and safety management contributing to the development of corporations to join the human rights system, which is aligned with the a Human Rights Charter by sending conversation. In our submission to the requirements of Australian and New a submission to the Commonwealth National Inquiry into Human Rights, Zealand standards. We also value the Attorney General, The Hon Robert at public events and in the media we provision of a safe, healthy working McLelland MP, on 23 October 2008. have explained the vital role companies environment. Rigorously applied, Telstra’s submission was later lodged play in protecting human rights. We our occupational health and safety with the National Inquiry into Human participated in an Australian Charter of management system incorporates HSE Rights, and was published on the Rights Roundtable on 19 December 2008 management standards that cater for Inquiry’s website in February 2009. As and on 7 May 2009, Telstra hosted the the varying levels of risk that arise across an organisation that interacts with Human Rights – Join the Conversation Telstra’s businesses. millions of customers and shareholders forum in Sydney. Numerous guests In addition, Telstra seeks to conduct and thousands of employees, we believe attended the event and the keynote business with companies that also value Telstra has a role to play in the debate. speaker, Hon Catherine Branson and protect human rights. Telstra’s Our submission suggested that the QC, President of the Human Rights Business Principles provide a framework removal of basic rights, for whatever Commission, spoke at the forum on to ensure that we operate ethically and reason, should only be possible with the evening. 10
    • ETHICS AND GOVERNANCE Suppliers In 2008/09, Telstra purchased approximately $11 billion in goods and services from around 7,000 suppliers. The vision for our procurement avoided the consumption of vendors to encourage responsible strategy is: one way to procure, one approximately 657,783 sheets of business practice. St James Ethics way to connect with suppliers and paper through the use of online Centre has been funded by the one company-wide view of Telstra shopping carts, purchase orders Australia Federal Government to vendor activity. and invoices - an improvement of expand sustainable responsible We are delivering this through a smarter over 200,000 sheets on the business practice nationwide. approach to procurement that involves previous year; partnering with world-class suppliers, worked closely with suppliers to reducing the total number of vendors reduce the environmental impacts over the longer term, streamlining our associated with the packaging supply chain processes, reducing costs of Telstra consumer products and improving Telstra’s performance in and marketing materials (Telstra responding to customer demand. is a signatory to the National We continue to look at new ways Packaging Covenant); and we can improve the social or worked with the St James Ethics environmental impact of our supply Centre to trial a range of resources chain. In 2008/09, Telstra: with small to medium enterprise Performance and commitments Report on planned actions 2008/09 Planned actions Progress Outcome Improve the relevance, transparency and The corporate responsibility site on Telstra’s website has been updated to accessibility of Telstra’s corporate responsibility include more comprehensive coverage across more aspects of corporate information on Telstra’s website. responsibility. A Global Reporting Initiative (GRI) Index has been added to  improve the accessibility of information. See www.telstra.com.au/cr Introduce feature sections on nowwearetalking Telstra launched an online news, forum, and blog area called Smarter, Greener, to provide a platform for public discussion and Together to focus discussion on environmental issues. Public discussion and debate about the environment and the National debate about the National Broadband Network and other issues relevant to  Broadband Network. telecommunications was encouraged via the Opinion forum on nowwearetalking. Conduct a review of Telstra’s human rights Review was conducted and opportunities for improvements identified. A human position and practices to assess performance against international standards. rights working group will be established in 2009/10 to oversee progress in this area, including the development of a human rights policy.   Achieved Partially achieved  Did not achieve Planned actions 2009/10 Establish a panel of invited independent experts to provide Telstra’s Corporate Responsibility Council with periodic advice on key social and environmental issues. Develop a human rights policy for Telstra. Launch a new Telstra social media engagement site that includes new Web 2.0 social media functionality, and an increased commitment to listening to the views of customers. and people outside Telstra. 11
    • I M PA C T O F T E L E C O M M U N I C AT I O N S Impact of telecommunications Our networks provide the nation with a strong foundation for economic growth, productivity improvement and sustainable prosperity. Michael Rocca Group Managing Director, Telstra Networks and Services Q&A Q: How is Telstra enabling the company business customers in Australia are through a suite of technologies. to deliver world class capabilities and seeing productivity uplifts of up to 30 per Information can be delivered via Telstra services to its customers? cent in parts of their workforces. networks that link mobile phones, Our evolution has also included an handheld computers, laptops and A: Our investment in Australia over the upgrade to Telstra’s Global Operations computer systems. This is backed by the last four years has provided one of the Centre, and the creation of a Managed superior breadth, speed and coverage largest, fully integrated national IP Networks Operations Centre, improving of Telstra’s high speed Next G™ wireless networks in the world - the Next IP™ our response and restoration times. broadband network and Telstra’s Next network is faster, more secure, is 99.999 IP™ network. per cent reliable and offers 77 times These technologies enable healthcare Q: How important are Telstra’s networks more capacity than the old circuit- professionals to deliver better and faster and technologies in helping to improve switched network. service to their patients. For example, the delivery of health services in Our single IP-based network has resulted Australia? it is now possible to download patient in a physically less complicated network information during a home visit, upload that simplifies service management data-rich medical imagery, access secure A: Australia is facing significant health while enhancing network reliability medical databases at the patient’s challenges, especially in dealing with and resilience. The services we offer bedside, and connect with a specialist chronic disease. Financial pressures through our network continue to via video conference from a remote are strong, costs are increasing and improve customers’ quality of life, community. an ageing population is reshaping helping to make their professional and our economy. New technologies have Telstra’s completed rollout of fibre optic personal lives easier and business more a crucial role to play in providing cable to some of Australia’s most remote productive. affordable care. communities in the Northern Territory The Next G™ network continues to makes high speed internet access Telstra is uniquely placed to help deliver enormous customer benefits available to healthcare centres there healthcare and medical service including high-speed broadband, rich and also shows the way of the future organisations address these challenges content and video calling. Some of our for Australia. 12
    • I M PA C T O F T E L E C O M M U N I C AT I O N S National broadband network In April 2009, the Federal Government announced plans to establish a majority government-owned company (NBN Co) to build and operate a national broadband network (NBN). The Government’s NBN aims to provide long advocated the need for high- 90 per cent of the population with access speed broadband and have engaged to a fibre to the premise (FTTP) network constructively to help find a solution that will offer downlink data speeds of that is in the best interests of the 100 Mbps and the remaining ten per industry and the nation, as well as cent of the population with access to Telstra’s shareholders, customers a wireless or satellite solution that will and staff. As the Government conducts its offer downlink data speeds of at least The NBN will be complex and implementation study, Telstra continues 12Mbps. challenging with a wide range of factors to invest in broadband technologies, The Government will conduct an to consider and its success will require networks and upgrades to provide implementation study, which is the focus and cooperation of industry. greater coverage and speeds for expected to be completed by February Our engagement has been driven by our home users and to improve productivity 2010. Telstra supports the Federal commitment to help the Government and service delivery options for our Government’s NBN vision. We have achieve its NBN vision. business customers. Next generation networks 5.8Mbps peak network uplink speeds using enhanced HSPA technology - a Telstra’s rollout of fibre optic cable to many of Australia’s most far flung world first combination of network and device with such capability. Actual communities makes high speed internet access available to remote students, upload speeds are 550 kbps to 8 Mbps in health care professionals, and government and business. upgraded areas*. Our networks provide the nation with a foundation for economic growth, social Telstra’s continued innovation and inclusion, productivity improvement, sustainable prosperity and global competitiveness. technology leadership with the HSPA+ upgrade will enable Telstra to continue to offer an improved mobile broadband customer experience, despite the Next G™ network upgrade to HSPA+ to activate enhanced HSPA increased demands placed on the technology; network by new, bandwidth-intensive In 2008/09, the Next G™ network has broken new ground for the wireless in February 2009, Telstra launched services such as video and collaboration industry, leveraging the advanced the first commercial device rated tools. The first commercial launch of capabilities of enhanced HSPA+ (High to take advantage of the upgraded the faster mobile broadband device Speed Packet Access Plus) technology network. The network operates is providing significant benefits in to evolve the existing network to meet at peak network downlink speeds health care, education and business next-generation mobile user demands of 21 Mbps. Actual speeds with a productivity, in addition to an enhanced on our network: compatible device in selected CBD, consumer entertainment experience. in December 2008, the Telstra metro and regional areas is 550 Next G™ network became the kbps to 8 Mbps1; and first mobile network in the world in June 2009, Telstra launched 1 Actual customer speeds are less than 21 Mbps and 5.8 Mbps. Speeds vary due to factors such as distance from the cell, local conditions, user numbers, hardware, software and download source. 13
    • I M PA C T O F T E L E C O M M U N I C AT I O N S Next G™ network coverage expansion the nation’s fibre optic backbone that program will greatly benefit from improvements in health, education, policing and The existing Telstra network is entertainment. experiencing increasing demand due to the rapid growth of wireless broadband During 2009, an additional 190 usage over the past two years. Each kilometres of fibre optic cable, as well wireless broadband customer places as five radio systems, will be installed demand on network resources many by Telstra’s Top End crew to provide times more than a customer making high speed broadband access to four a simple voice call. This means that additional island communities. continued investment in the network is required. In 2008/09, Telstra invested Australian Rail Track Corporation communications system $96 million to build an additional 234 new mobile base stations, expanding Work continues in the $85 million the breadth and depth of our Next G™ deal with the Australian Rail Track mobile broadband network. Corporation to develop a new communications system for the group’s Ethernet backhaul enablement national rail network. The new system program uses the Next G™ mobile network to A wireless network needs more than facilitate the safe movement of trains base stations - it needs a robust, around the nation. superfast wireline network to connect The project has involved building 76 Next to. The link between the wireline and G™ base stations in New South Wales, wireless network is called backhaul and South Australia and Western Australia. Telstra is enhancing the user experience Additional infrastructure such as the for Next G™ customers by investing in provision of Satellite Private Mobile Ethernet backhaul to carry all the speed- Radio systems in 14 tunnels and two hungry, data-hungry requirements of a fully redundant data message switches broadband enabled community. is complete. The bulk manufacture of 704 Upgrades to approximately 3,000 metro In-Train Computing Environment units is sites are now complete and the program expected to commence in early 2010 and continues to upgrade transmission to be completed by June 2010. Transition regional cities and towns as well as to from the existing train communications approximately 2,000 rural and remote system to the new one is scheduled VicSmart broadband network sites. The program is scheduled to late 2010. continue through 2012. In the latest phase of a multi-million Enabling ADSL and ADSL2+ dollar project to give primary and Broadbanding the Top End project secondary schools across Victoria access ADSL2+ enablement allows exchanges to high-speed internet, Telstra increased The $34 million project announced in to provide faster internet services download speeds on the VicSmart September 2008 by Telstra, the Northern to customers. The rollout of ADSL2+ broadband network from four to ten Territory Government, Rio Tinto Alcan continues across Australia with an megabits per second. The VicSmart and the Northern Land Council has additional 421 Telstra exchanges, network is a partnership between the seen 800km of optical fibre cable and offering a further 230,000 homes Victorian Government and Telstra that associated infrastructure installed from and businesses high-speed ADSL2+ will ensure hundreds of thousands of Jabiru to Nhulunbuy in the Northern broadband, to be upgraded by the end students across the State have the Territory. As well as the township of of 2009. Telstra has invested $6.37 million ability, skills and knowledge to excel in Nhulunbuy, there are now five mainland in these particular upgrades. the new broadband world. Aboriginal communities connected to 14
    • I M PA C T O F T E L E C O M M U N I C AT I O N S Opening of the Managed Network Operations Centre Telstra made a significant investment to build the multi-million dollar Managed Network Operations Centre (MNOC). Opened in October 2008, this purpose-built facility allows Telstra to provide corporate customers with even higher levels of service, through a greater visibility of our enterprise and government customer networks and of Telstra’s core network, early detection of network related issues and much faster fault detection, isolation and resolution. Housing the latest technology, the MNOC offers a range of managed network services such as monitoring, managing and maintaining the equipment and network environments located at customer sites. Productivity technology (ICT) investments and those that are achieving real productivity gains. In October 2008, Telstra commissioned the first detailed independent body Over the last year, the most important of research on productivity among 300 leading Australian business and ICT investments were those that have government organisations. improved workforce access to common resources and information within offices The research was undertaken to help identify and deliver productivity improvements and across workplaces. Investments to our customers. The outcomes of this research are captured in The Telstra in ICT are also seen as having Productivity Indicator, a report on business attitudes towards improving productivity in contributed to staff training and process Australia and a white paper: ICT as a Driver of Productivity. The research found that: improvements. Despite today’s tough economic climate, Australian organisations 78 per cent of large organisations leaders in technology adoption are optimistic about increasing their say improving productivity is a high apply hard productivity metrics productivity. Telstra’s series of Next priority; and known targets, whereas only Generation Services, including unified 45 per cent of technology followers communications, security, mobility 51 per cent of large organisations do so; and applications, contact centre solutions, do not actually measure productivity or have clear 43 per cent of Australia’s largest hosting and storage, are assisting productivity improvement targets; organisations expect productivity organisations to achieve higher levels of to increase over the next 12 productivity. Telstra is continuing to help 61 per cent of organisations that business and government to incorporate months. invested in communications new digital technologies and related technologies such as broadband ICT solutions to drive productivity The Telstra Productivity Indicator and mobiles say that it has improvements across Australia. demonstrates a clear correlation improved their productivity; between those organisations that To find out more, visit 62 per cent of businesses that are make information and communication www.telstra.com/productivity. 15
    • I M PA C T O F T E L E C O M M U N I C AT I O N S CASE STUDY – VIRTUAL TRAUMA CARE A REALITY WITH TELSTRA TELEPRESENCE Telepresence uses Telstra’s Next IP™ care in regional areas no longer This successful demonstration network and specialised medical have to be transferred hundreds of represents an important step towards equipment to send and receive high kilometres by ambulance or helicopter realising Telstra’s vision of improving definition ‘real time’ video images and to metropolitan facilities, which results the delivery of health care services other data between primary health in delays in treatment and additional and health outcomes in regional and care providers and medical specialists. costs. Now, medical specialists in rural areas. In March 2009, Telstra and another city, state or even overseas telepresence specialist Polycom® can control the high definition camera, launched ‘real time’ virtual trauma examine and talk to the patient, talk care machines that will significantly to local staff, get live heart rate and improve the availability of trauma blood pressure and other vital signs care in the Loddon Mallee region data, review digital scans and test of Victoria. These machines can results and watch live endoscopic be wheeled to the bedside in an video feed. emergency or intensive care ward, Access to virtual specialists can also and comprise a mobile wireless video assist emergency wards deal with their conferencing unit, high definition video heavy load, with a NSW telepresence cameras, monitors and associated trial revealing that up to half of people equipment – all connected to the seeking medical attention did not need Virtual Trauma Critical Care Unit (ViTCCU), powerful Telstra Next IP™ network. to be admitted and could be safely Loddon Mallee Rural Health Alliance Emergency patients requiring urgent sent home. CASE STUDY – NETWORK IMPROVES INDIGENOUS EDUCATION OUTCOMES AT DJARRAGUN located 20 kilometres south of Cairns, collaboration. The provision of these and its sister campus at Wangetti, technologies will allow students and about 100 kilometres away. The staff to connect with other students schools cater for around 400 students, and teachers in Australia and around most of whom are Aboriginal or Torres the world. Strait Islander. Wireless access to laptops in all The network will connect the two classrooms and wireless handsets Djarragun College campuses, providing for all staff will eliminate physical a virtual single learning environment barriers and provide students, teachers that will enable the sharing of and administrators with increased information and collaboration by the access to resources wherever they are Students at Djarragun College school community. This will support located. better educational outcomes for Telstra has enhanced the existing students and help to reduce the need network capacity including the Cisco and Telstra have deployed for staff to travel between the two installation of optic fibre near Australia’s first broadband, Unified facilities. Djarragun College and a frame Communications and wireless network This Unified Communications relay circuit at Wangetti. High speed to help improve educational outcomes network will help reduce the cost broadband will provide the students at Djarragun, a largely Indigenous of communications and improve access to a wealth of information, community in far north Queensland. management and technical support multimedia and rich video content. Beginning in first term 2009, Cisco from Telstra and Cisco. The network The Djarragun College project was the and Telstra committed significant will also serve as the platform brainchild of the Cisco Australia and technical, financial and human for educational innovation at the New Zealand Civic Council, Cisco’s resources to the network at Djarragun campuses, for example through corporate social responsibility arm in College, an independent primary the use of WebEX, a system of Australia and New Zealand. and secondary school in Gordonvale, Internet based ‘real time’ video and 16
    • I M PA C T O F T E L E C O M M U N I C AT I O N S Mobile phones and health At Telstra, we want all consumers to have up-to-date and relevant information about using mobile phones, including all matters of mobile phone safety. Telstra offers information about mobile phones, mobile technology and electromagnetic energy (EME) on our website. We take all matters of safety very seriously and only sell mobile phones that meet national and international safety requirements and standards. Research into EME, mobile phones remained relatively stable for both men send text messages rather than and health has been going on for and women.” (IARC World Cancer Report making calls; and many years now. Telstra relies on the December 2008 p.461) keep call duration to a minimum. expert advice of a number of national If you have concerns, there are some and international health authorities simple steps you can take to reduce To find out more about mobile including the World Health Organisation exposure to EME from the use of a phones and health visit (WHO) for overall assessments of health mobile phone: www.telstra.com/eme or email us at: and safety impacts. eme.enquiries@team.telstra.com. use a personal or bluetooth hands- The current advice from the WHO is free kit, or a speaker phone option that “the overall evidence available to to keep mobile phones away from date does not suggest the use of mobile the head and body; phones has any detrimental effect on human health...” (World Health Organisation: http://www.who.int/ peh-emf/about/WhatisEMF/en/). We will provide our customers with updates from the WHO as they become available. In reviewing the overall cancer incidence rates, the International Agency for Research on Cancer (IARC) stated in the World Cancer Report late last year: “After 1983 and more recently during the period of increasing prevalence of mobile phone users, the incidence has 17
    • I M PA C T O F T E L E C O M M U N I C AT I O N S Base stations and electromagnetic emissions Telstra acknowledges there is some community concern that exposure to low levels of EME from our telecommunications base stations could lead to adverse health effects. Telstra places high importance on completed 344 mobile National Site Archive as part of our effective and responsible management infrastructure projects consisting transparent approach to EME and of EME issues. In 2008/09, Telstra: of 84 new development telecommunications. This includes applications and 260 Australian updating the archive to reflect new and participated in the development Communication Industry Forum modified sites and site audit outcomes. of a video released by the Mobile consultation proposals. Our In 2008/09, Telstra published the Carriers Forum. The video, proactive community engagement following updates: called Mobile Networks in the programs continued to result in a Environment, provides details 4,355 Environmental EME Reports; very low number of complaints. on base station safety and how The Australian Communications 3,237 EME Compliance Certificates; mobile networks are deployed in and Media Authority confirmed and the community, including why that they received two complaints 3,736 Radio Communications Site base stations need to be built near regarding Telstra proposals in Management Books. users (see the video at www.mcf. 2008/09. amta.org.au/forms/mcf/movie/ Telstra provides detailed EME slideshow_mID.aspx); and Each year, Telstra publishes information at www.telstra.com/eme. information on the Radio Frequency Cyber safety and security At Telstra, we take our responsibility as a trusted internet services provider seriously. We work with industry, government, community organisations and internet users to address the range of evolving online risks and to develop measures that promote online safety. We are strongly committed to minimising the risks that our customers face online. This continuing commitment is reflected in our retail product offerings and customer communications and awareness programs. In October 2008, Telstra appointed an Officer for Internet Trust and Safety to chair a cross-company working group with responsibility for delivering a coordinated focus on cyber safety issues including internet filtering, online child exploitation, cyber bullying, online scams and identity theft. In 2008/09, the Internet Trust and Safety engaged Telstra in Government from cyber bullying, identity theft Working Group: awareness and safety campaigns and exposure to illegal content when including Safer Internet Day and online. Telstra’s Officer for Internet developed a comprehensive National e-Security Awareness Trust and Safety was reappointed as company-wide plan to align Week; and a representative to the government’s Telstra’s cyber safety activities Consultative Working Group on including regulatory, government provided advice to the federal Cyber Safety. relations, customer experience and government on priorities and education; measures that help protect children 18
    • I M PA C T O F T E L E C O M M U N I C AT I O N S In addition, the Telstra Foundation’s social network for six to 12 year Spotlight on Cyber Safety program old children. Supported by the continued to support the online safety Telstra Foundation with a grant and wellbeing of children and young of $1.5 million over three years, people, with grants to community SuperClubsPLUS Australia has organisations. The program supports over 87,000 Aussie kids registered, projects that build resilience, teach connecting with each other and online safety and deliver initiatives to learning how to keep safe online support youth cyber safety. In 2008/09, (visit www.superclubsplus.com.au); the Telstra Foundation: and announced a further $3 million participated in the Technology contribution over three years and Wellbeing Roundtable, which towards its Spotlight on Cyber brings together thought leaders to Safety program, bringing the value share insight into how technology of its investment in youth cyber can be an enabler of wellbeing for safety to $6 million over six years; young people and to develop and promote best practice. launched SuperClubsPLUS Australia, a safe and protected Performance and commitments Report on planned actions 2008/09 Planned actions Progress Outcome Deploy enhanced HSPA+ (High Speed Packet Access Plus) On 24 December 2008 the Next G™ network became the first mobile as a national software upgrade to increase peak network network in the world to activate enhanced High Speed Packet downlink speeds across our national Next G™ network Access Plus (HSPA+) technology.  from the current 14.4Mbps to 21Mbps2 by the end of 2008. With support from the NT Government and Rio Tinto Telstra successfully rolled out over 800kms of optical fibre through Alcan, Telstra will roll out 800kms of fibre to connect nine Arnhem Land connecting the township of Nhulunbuy and five northern Arnhem Land indigenous communities and the township of Nhulunbuy to the nation’s fibre optic mainland indigenous communities providing access to world class, high speed broadband and a range of other advanced  backbone. communications solutions.  Achieved Partially achieved  Did not achieve Planned actions 2009/10 Create a Telstra cyber safety website to provide a central, dedicated education and awareness resource with information and tools for Telstra customers, employees and the general public. Upgrade the Next IP™ transmission network between Melbourne and Sydney to 40 Gigabits per second. Continue to upgrade Next G™ Ethernet backhaul to regional cities and towns as well as to approximately 2,000 rural and remote sites. Commence deployment of the next evolution of HSPA+ Dual Carrier technology in the Next G™ network. 2 Peak network downlink speed. Actual customer download speeds will be less and will vary due to traffic loading, distance from the cell, local conditions, hardware, software and other factors. 19
    • CUSTOMER SERVICE Customer service Our vision is to know our customers and meet their needs better than anyone else. Stuart Lee Executive Director, Telstra Program Office Q&A Q: Why is improving customer satisfaction improvement program underway, led by a our Market Based Management approach, a key priority for Telstra? senior executive. Our activities are focused through regular surveys of customer on strategy, operational improvement, attitudes and satisfaction, to immediate A: We understand that high standards of people and communications, and metrics. feedback on specific transactions. customer service are absolutely necessary Importantly, we have developed key Research includes direct hands-on to drive customer satisfaction and service and satisfaction measures interactions through our purpose-built customer loyalty, which in turn build the and targets that strongly reflect the Customer Experience Centre, and we have future success of our business. Day to day customer’s actual experience. We a dedicated User Interface design team feedback from our customers and frontline surveyed our customers and determined a within our Product Management group. staff, and growth in the level of customer baseline result for satisfaction of 6.5. This Our T[life]™ shops provide customers with complaints, tells us that our customers are is a mean score based on customers rating the opportunity to use and experience not always getting the standard of service us from 0 to 10. A target of 6.7 has been set Telstra’s full range of integrated products they expect. for the company to achieve by the end of and services and receive one on one June 2010. This applies across three key expert advice. We organise a range of Q: What is Telstra doing to improve customer groups – Consumer, Business consumer forums such as the Telstra customer service? and Enterprise & Government. As an Disability Forum and the Low Income incentive to help drive this improvement, Measures Assessment Committee. Telstra A: Whether we are installing a service, most Telstra employees will receive a Country Wide (TCW) provides a local face fixing a fault, serving at a store visit Customer Satisfaction Bonus if the target in regional, rural and remote areas of or dealing with a complaint or billing is met. Australia, participating in local events and enquiry, we need to make every getting to know our customers’ needs. interaction with our customers count. Q: How does Telstra make sure its And this year, we ventured into social products and services meet the needs of media, launching a new site called Know We are working on giving our employees its diverse range of customers? How on YouTube to show people how the tools and training they need to resolve to use the full range of features on their our customers’ service issues quickly and mobile phones. effectively. A: Telstra conducts extensive market Telstra now has a corporate-wide research from the needs-based customer service and satisfaction segmentation analysis, which underpins 20
    • CUSTOMER SERVICE Keeping Australia connected Telstra offers a full range of products and services to meet the needs of our customers. Our telecommunications services provide vast geographical coverage through both our fixed and mobile network infrastructure – servicing many millions of Australian customers. In 2008/09, Telstra: handled 4.8 billion local calls, people and contractors, on 6.6 billion national long distance average, completed around 23,000 minutes, 3.3 billion fixed-to- customer service jobs (new services mobile minutes and 8.9 billion text and fault repairs) a day; messages; managed more than 95 million provided 9 million fixed line and bills; 10.2 million mobile services, supplied products and services including wholesale services; at more than 13,000 customer handled more than 60,000 calls in points of presence across Australia, opened 22 Telstra Business Centres our contact centres each day; including 124 company-owned across Australia; and Telstra shops, 169 licensed operated and maintained more Telstra shops and more than 600 opened or refreshed 79 T[life]™ than 11,000 telephone exchanges; authorised dealers; stores across Australia. Improving customer satisfaction establishing a Corporate Complaints Group to manage Improved customer service is a key driver of customer satisfaction and loyalty, our relationship with the and fundamentally impacts the future success of the business. Telecommunications Industry Ombudsman to assist with Our customers understandably expect reducing the number of escalated high standards whenever they deal complaints and eliminating with Telstra. the sources of poor customer While there are a lot of things we get experience; right, we recognise that our service does implementing an Employee not always meet customer expectations. Complaint Referral Process to help As a company, we are on an important customers with serious unresolved journey to earn the loyalty and support complaints that are known to of all our customers by providing them employees; not only with world-leading products various parts of our operations to better but also great customer service. understand the experiences and needs setting up appropriate internal In 2008/09, Telstra increased its focus on of our customers. As a result, several idea gathering forums to harness using different ways to ensure we obtain initiatives to improve our customer the extensive insight our own staff clear ‘voice of the customer’ feedback. service have been implemented. have into ways we can serve our In addition, we conducted analysis on These include: customers better; 21
    • CUSTOMER SERVICE appointing a Director, Customer 239 million call event records Privacy Service - a new position to develop processed per day; and Telstra has performed well in an and manage a new company wide 18,000 Telstra staff trained to environment where there are new and program to improve customer use the new systems – over 370 pervasive technologies constantly being satisfaction and coordinate all hours of training content over 220 offered to consumers, where marketing customer service initiatives across individual training modules. is more directed and where consumers the company; and are increasingly concerned about their establishing a Customer Customer service privacy. In 2008/09: Satisfaction Council with senior Engaging with our customers to privacy complaints and/or incidents representatives from across understand their needs and wants is that Telstra has dealt with the business who will focus on fundamental to business success – it regarding marketing, access to critical customer experience helps us to provide a more targeted information, accuracy of data and issues, determine priorities and and personalised experience for our disclosure of information, remained resolve escalated issues, monitor customers. In 2008/09: relatively stable; and measure customer service performance, and ensure delivery 79 T[life]™ stores were opened all privacy complaints and/or of improvement plans. or refreshed across Australia. incidents were appropriately This includes 14 new stores, 46 addressed and managed to IT transformation refurbishments and 19 relocations; resolution within Telstra - no privacy complaints or incidents were Telstra is in the fourth year of a five year Telstra Mobile Mentor Program escalated to a judicial decision level; transformation program, an element delivered over 11,500 face to face of which is the simplification of our and phone sessions and over 23,500 Telstra actively participated in a Information Technology (IT) systems My-place consultations were consultative and advisory capacity and processes. Our goal is to make delivered; to the Australian Law Reform customer transactions as efficient and Commission’s review of Australia Telstra employees participated Privacy Law, as well as contributed productive as possible. This is one of in 1,157 local events across the the largest technology transformation as a major stakeholder to the country, including 177 field days, Privacy Subgroup of Asia Pacific projects ever undertaken by an 213 town visits, 276 expos, 239 Australian corporation and, given its Economic Cooperation (APEC) on product demonstrations and 252 the implementation of its privacy scale and complexity, has presented other local events and activities as a number of challenges. Despite framework; and part of the Community Advocacy this, the IT transformation program Program; Telstra was named as the winner of is progressing well and to date has the Large Business Award category achieved significant benefits for our staff Telstra launched a new site called in the inaugural Australian Privacy and customers. As at 10 August 2009, Know How on YouTube to show Awards program launched by achievements included: people how to use what can be a the Australian Federal Privacy confusing array of features on their Commissioner. 9.2 million customers now on the mobile phones (see www.youtube. new customer care and billing com/telstra); and For more information visit systems - a total of 17.7 million www.telstra.com.au/privacy. services now operate from the new Telstra Enterprise & Government systems; Customer Care was ranked in the top five per cent of Certified over 10.4 million orders processed Customer Service Organisations, - our IT systems process 55,000 with reaccreditation by the customer orders every working day; Customer Service Institute of 60 million bills issued - our IT Australia and certification at systems issue 185,000 consumer Full Integration Level, measured bills every working day; against the International Customer Service Standard. 22
    • CUSTOMER SERVICE Disaster relief In 2008/09, Telstra provided support to thousands of customers and many communities across Australia affected by devastating floods, bushfires and natural and civil disasters including: severe storms, Brisbane (November infrastructure, re-connect households coordinate public pledges of support. 2008); and establish additional mobile Since the fires, Telstra has invested over coverage in remote areas using $15 million to repair and upgrade its floods, North and Far North transportable Cells on Wheels. networks in affected areas, including Queensland (February 2009); Telstra’s team in the 000 Call Centre were establishing four new exchanges in bushfire, Bridgetown, WA (January at the forefront of the response, working Marysville, Narbethong, Kinglake 2009); tirelessly to manage the unprecedented and Kinglake West, and to build new bushfire disaster, Victoria (February call volumes from frantic residents mobile network base stations to provide 2009); across the state, and to direct calls to permanent and improved mobile relevant emergency organisations in a coverage to areas such as Strathewen, St floods in northern New South timely and effective manner. Andrews and Arthurs Creek. Wales and Queensland (May 2009); Telstra Country Wide employees were As a further response to the devastating Middle East violence, Gaza deployed to emergency relief centres fires, Telstra designed and built the (January 2009); and established across Victoria to help first Mobile Exchange on Wheels earthquake in Italy (April 2009). customers affected by the fires. As an (MEOW), which is a fully functional example of practical assistance, Telstra telephone exchange specifically Victorian bushfires distributed more than 1,000 mobile designed to provide communications handsets free of charge and set up to disaster areas. One hundred and seventy three lives and more than a dozen free internet kiosks Telstra has played a pivotal role in the thousands of Victorian properties were at community centres across the state. Victorian Royal Bushfire Commission, lost after ferocious winds and mid-forty Telstra waived bills for thousands of providing expert witnesses and degree temperatures caused bushfires customers affected by the fires and documentation to help authorities to tear through regional communities supported communities by converting 60 understand how to enhance on 7 February 2009, now known as payphones in bushfire affected regions telecommunication services during Black Saturday. so they provided free local and STD calls. future catastrophes. Telstra’s mobile and fixed networks were In a further goodwill gesture, Telstra and put under enormous pressure but proved our people contributed more than $1.5 to be quite resilient to the catastrophic million to the Victorian Bushfire Appeal, conditions. Telstra technicians were while employees volunteered to work quickly deployed to repair damaged in Telstra call centres that were used to 23
    • CUSTOMER SERVICE Digital inclusion Telstra Connected Seniors® Telstra Connected Seniors® continues At Telstra, we recognise the diversity of our customers and the to support community groups with significant contribution that telecommunications networks, products membership primarily in the 60 plus age bracket and aims to educate and and services make to people’s lives and to community wellbeing. stimulate the use of mobile phones and Low income the internet by running training events in a fun, friendly peer environment. Established in 2002, the Low Income By the end of 2009, Telstra Connected Measures Assessment Committee Seniors® will have assisted 45,000 provides independent advice on how older Australians to feel a sense of Telstra can provide services to customers accomplishment by getting online and on low incomes. The Committee, which using their mobile phones. The program, includes senior representatives from delivered in a familiar environment, helps national community organisations, to overcome the barriers to engaging guides Telstra’s Access for Everyone with new technology by showing seniors or significantly improved and package. In 2008/09, Telstra: what a difference these devices can maintained; 23 were maintained or provided assistance to more than maintained and improved; 11 were make to their lives. Funding is provided to one million low-income customers in progress, and one had not yet community groups to conduct hands- to connect or maintain their been started; on how-to-use your mobile phone and communications services. The total internet training activities. In 2008/09: strongly advocated for a whole benefit provided exceeded $180 over $640,000 of grant funding of Government social inclusion million; was provided to 79 community approach to ensure affordable commissioned and launched the access to telecommunications for organisations, bringing the total report Telecommunications and all Australians in our submission contributions since the program’s wellbeing: A review of the literature to the Federal Government’s inception in 2007 to $1.3 million to 188 on access and affordability for low- Feasibility Study into an community organisations; income and disadvantaged groups; Independent Disability Equipment the 19 education modules specifically and Program; written for Telstra Connected extended the Bill Assistance contributed, through our leadership Seniors® were redesigned to improve Program to Telstra mobile and role as Chair of the Australian training quality and outcomes. Internet bills issued by our new Mobile Telecommunications This included demonstration of the billing system (recognised by 13 Association Accessibility new Telstra EasyTouch® Discovery digit account numbers). Committee, to the development mobile handset, custom-designed and Australian launch of the Global for seniors; People with disability Accessibility Reporting Initiative every grant round was (see www.mobileaccessibility.info/); oversubscribed and most grant Telstra is committed to making and recipients reported training a communication accessible and developed and launched a web- higher volume of seniors than affordable for all our customers, based search engine on our they anticipated, proving that this including older customers and customers Intranet to enable our consultants program is meeting a need in the with disability. To improve and promote to search for accessible features of community; and accessibility in 2008/09, Telstra: mobile devices ranged by Telstra 34 Telstra Connected Seniors® conducted an internal mid-term and assist our customers select training events were conducted in review of its Fourth Disability a mobile phone that suits their our T[Life]™ stores in Sydney and Action Plan 2007-09. Of 43 actions specific needs. Melbourne. arising from 16 separate issues in the Plan, eight were completed For more information visit For more information visit www.telstra.com.au/disability. www.telstraseniors.com.au. 24
    • CUSTOMER SERVICE CASE STUDY – TELSTRA EASYTOUCH DISCOVERY® MOBILE PHONE MEETS THE CHALLENGE An estimated 20 per cent of our a simple, easy to use mobile phone phone on a flat surface and flip-phone population - four million Australians from Telstra. style with bevelled edges for easy - live with disability. Further, over six In November 2008, following extensive opening. per cent, or 1.2 million people, have market research and input from a Independent laboratory tests also profound or severe ‘core activity wide range of stakeholders, including confirmed that the EasyTouch® Discovery limitation’, which impacts their daily older customers and Telstra Disability has excellent Hearing Aid Compatibility lives. The rate of disability increases Forum members, Telstra launched The ratings on both microphone and telecoil with age, so while only 18 per cent of EasyTouch® Discovery mobile handset. settings, when used on Telstra’s Next people aged 35 to 54 have disability, This phone is more accessible than G™ network. This is an important this increases to 45 per cent for those most on the market for people with consideration for the 450,000 Australians aged 65 to 74, to 63 per cent for those disability and older people. This device who have hearing aids. aged 75 to 84 and to a staggering 82 per is easy to use, with a large keypad cent for people aged 85 and over. With with big, separate buttons and high an ageing population, these numbers contrast numbers, a large, easy to read are only expected to increase over the screen display and menu layout, and coming years. one touch message. Accessibility is For people with disability and for older further enhanced with audio feedback people, operating a mobile phone can of numbers as they are pressed on the be difficult due to small buttons, small keypad, raised pip on the number ‘5’ for screen fonts and sometimes complex keypad orientation, slip resistant back Telstra EasyTouch® Discovery phone menus. Their representatives requested so numbers can be keyed in with the CASE STUDY – COUNTRY WOMEN’S ASSOCIATION OF NEW SOUTH WALES the growth of its members through helped to foster a stronger connection networking, friendship and service, between head office, local branches and develops skills such as leadership and members, regardless of their location. communication, and researches and The Telstra Connected Seniors® program debates issues affecting the local and has also impacted the wider community wider community. by enabling CWA volunteer trainers to Thanks to a Telstra Connected Seniors® develop skills and confidence that can grant of $55,000 to run technology transfer into other areas of local work workshops, more than 5,900 seniors and their daily lives. and 24 volunteer trainers from 22 Margaret Roberts, State President of the CWA groups have learnt how to stay in Country Women’s Association of NSW, touch with family and friends by making said the members were no longer afraid use of training for mobile phones and to use their mobile phone or the internet. the internet. “They felt more confident in their At the workshops, members and the use of mobiles and the internet after broader community learnt to use new the training and wanted to continue Judy Buddle is now confident in using her mobile technology at their own pace in a fun, learning. Participants felt more phone. Photo courtesy of the Daily Liberal relaxed environment. They gained empowered at the end of each training confidence to communicate in new session. The volunteer trainers also felt Over 11,000 women belong to one of ways and to use their new found skills to it gave them the opportunity to meet over 430 local branches of the Country pursue hobbies and interests. more members and they felt a sense of Women’s Association (CWA) of New By enabling the Country Women’s personal satisfaction at having delivered South Wales (NSW). The CWA is a diverse Association of NSW to present the training successfully. Bringing and multicultural organisation that gives information to their members in new smaller communities together with a women a voice, as well as practical help formats such as email, the Telstra common interest created a stronger and support. It encourages and fosters Connected Seniors® program has community focus,” Margaret said. 25
    • CUSTOMER SERVICE Rural and regional In 2008/09, Telstra: Telstra Country Wide (TCW) is the enabled ADSL2+ in 421 exchanges local face of Telstra in regional, rural across Australia with the vast and remote areas of Australia. TCW’s majority of these upgrades occurring mission is to meet the often unique in regional and remote areas; telecommunications needs of regional built 283 Next G™ coverage sites Australia while at the same time across Australia, including 107 in contribute to its economic and social regional or remote locations; and development. Established in 2000, TCW signed an $85 million agreement set out to decrease the metro-country with the Australian Rail Track divide, increase internet availability in Corporation to provide an regional areas, improve mobile coverage additional 77 base stations along and improve service delivery. regional rail corridors across Australia. CASE STUDY – TRADITIONAL OWNER CONSULTATION RECOGNISED In December 2008, Arnhem Land centres to use video conferencing to Owners expressed their appreciation Traditional Owners celebrated Telstra consult with other health care providers of Telstra, recognising “best ever” laying over 800km of fibre optic cable across Australia and send scans to test consultation. across the Top End of the Northern for diagnosis. As a result, Telstra was able to identify Territory from Jabiru to Nhulunbuy. In addition, the internet access for eight talented local people to assist with Telstra crews involved in the project schools across Arnhem Land has now monitoring works near sacred sites. met tight timeframes, completing the moved from 256kbps up to 20Mbps and Local expertise was highly valued with job in a little over three months – just a further four will be enabled when the Telstra employing around 130 Arnhem prior to the onset of the Territory’s often project is completed. Students in these Land locals as monitors, truck drivers, cyclonic wet season. remote communities will now have backhoe operators and engaged in civil Now five mainland Aboriginal access to classrooms online, providing works. communities and the township of the same range of subjects and quality Telstra’s work on the project Nhulunbuy, approximately 8,000 of learning options as kids in the city. was recognised in March 2009 people, are connected to the nation’s Years of consultation, including with the prestigious Australian fibre optic backbone. community meetings and detailed Telecommunications Users Group During 2009, an additional 190 negotiations with individual Traditional 2009 Excellence Award for ‘Best kilometres of fibre optic cable, as well as Owners in partnership with the Communications Initiative – Large five radio systems, are being installed Northern Land Council, preceded the Business’. by Telstra’s Top End crew to provide project’s commencement. Traditional high speed broadband access to four additional island communities. As a result of this work, a further 2,000 people living in these remote island communities will also be connected. The $34 million investment in Arnhem Land, a joint venture between Telstra, Rio Tinto Alcan and the Northern Territory Government, is also an investment in local Arnhem Land communities – their health, safety, education and entertainment. The laying of cable has meant five healthcare centres are now connected Arnhem Land cable to broadband services, enabling the 26
    • CUSTOMER SERVICE Indigenous communities Northern Territory connecting five are answered by a specialist team mainland Aboriginal communities that understands the unique issues Telstra’s Indigenous Directorate and the township of Nhulunbuy, to confronting remote communities; was established in 2005 to work the nation’s fibre optic backbone; and with government and stakeholder groups to coordinate improvements installed 20 robust cashless phones continued to provide Telstra’s in telecommunication products in remote Indigenous Northern Country Calling products and services for remote Indigenous Territory communities, taking the specifically designed for Indigenous communities across Australia. total number of community phones communities, with dedicated lines across Australia to 236; and cards available for community In 2008/09, Telstra: members at reduced rates. laid over 800km of fibre optic cable continued to provide an Indigenous from Jabiru to Nhulunbuy in the Hotline (1800 444 403) for Indigenous customers. The calls Performance and commitments Report on planned actions 2008/09 Planned actions Progress Outcome Build on the success of our world class T[life]™ In 2008/09, 79 T[life]™ stores were opened or refreshed across Australia. This stores by opening or refreshing more than 80 includes 19 relocations, 46 refurbishments and 14 new stores. T[life]™ stores across Australia, to provide a  retail experience like no other for our customers. Extend the Telstra Bill Assistance Program to The Bill Assistance Program was extended in December 2008 to Telstra mobile and cover mobile and internet bills to recognise the internet bills issued by our new billing system. This will be completed in 2009/10 as changing nature of communications usage Telstra migrates all of its residential customers.  among low-income Australians. Provide a web-based inquiry form for Telstra contributed to the development of the Global Accessibility Reporting information about accessible features of Next Initiative, a new web-based information search engine to assist people with G™ mobile handsets to enable people with a disability to choose the right mobile phone to meet their needs. disability to choose the right mobile handset for their needs. In addition, we developed a complementary web-based search engine on our Intranet to enable our consultants to search for accessible features of mobile  devices ranged by Telstra to assist customers choose a mobile phone that suits their specific needs.  Achieved Partially achieved  Did not achieve Planned actions 2009/10 Increase customer satisfaction across three key customer groups (Consumer, Business and Enterprise & Government) from 6.5 to 6.7 (mean score out of 10). Investigate opportunities to improve pre-paid calling services for Indigenous communities, people who are homeless and people experiencing financial hardship. Commission an independent external review of Telstra’s Fourth Disability Action Plan for the first quarter 2010. Open a further 50 T[life]™ stores across Australia to provide an improved retail experience for our customers. Open a further 40 Telstra Business Centres across Australia. 27
    • EMPLOYEE ENGAGEMENT Employee engagement Telstra offers a safe and supportive environment, where employees are valued and have the opportunity to reach their full potential. Andrea Grant Group Managing Director, Human Resources Q&A Q: Telstra has a target to increase Telstra employee. We have introduced enables us to meet our customers’ employee engagement by one per cent a number of key actions over the past expectations and remain competitive in in 2009/10. Why is employee engagement few months, all aimed at improving the marketplace. critical to Telstra? customer service. As an example, Telstra On 1 July 2009, Telstra, the ACTU and is investing millions of dollars more the communications industry unions A: Our aim is to create a workplace in training for our customer service agreed on a set of important principles where our people have the opportunity consultants, and we have introduced a that commit all parties to a productive to be the best they possibly can be. We new Customer Satisfaction Council. We working relationship. This principles pride ourselves on being an employer of also recently announced a Customer agreement recognises that, amongst choice and recognise that we can only Satisfaction Bonus that Telstra other things, Telstra offers its employees attract and retain the best people for employees will receive if we achieve the industry leading pay and conditions. the job by offering leading terms and customer satisfaction targets that have Telstra and unions have committed to conditions. We are focussed on creating been set. bargaining in good faith under the new the right culture, and on providing Fair Work laws towards the objective of development opportunities and fair Q: What does the new Fair Work Australia a new enterprise agreement as soon as processes to foster a workplace that legislation mean for Telstra’s relationship practicable. At the time of this report, delivers exceptional customer service, with its employees? negotiations for a new agreement are value for our shareholders, and rewards continuing. our people for doing a great job. A: Telstra has committed to good faith bargaining with eligible employees Q: What measures have been put in who are on an Enterprise Agreement place to reward excellent performance in and expired Australian Workplace customer service? Agreements. We have taken this first step towards reaching an agreement A: Getting our customer service right that is fair, that rewards employees requires the full commitment of every for excellent performance and that 28
    • EMPLOYEE ENGAGEMENT Human capital development Employment As at 30 June 2009, Telstra employed 43,181 full time equivalent employees, agency and contractor staff including staff employed directly by Telstra Corporation, our domestic controlled entities and our offshore controlled entities. This equates to a decrease of 7.4 per cent or 3,468 full time equivalent employees during 2008/09. This reduction was part of the forecast Telstra provided in November 2005 as part of its three to five-year strategy announcement. Telstra Corporation directly employs 30,336 employees (excluding casuals, controlled entity-paid employees, agency and contractor employees). Employment Total workforce* 43,181 Full time, part time, casual, agency and contractor FTE staff in Telstra Corp domestic and offshore controlled entities Full time staff and equivalents 39,464 Total workforce minus agency and contractor staff Domestic full time staff 31,662 Full time staff in Telstra Corp and domestic controlled entities, including Sensis Telstra-paid staff** 30,336 Full time and part time staff paid by Telstra Corp, excludes casual staff, all controlled entity-paid staff, agency and contractor staff * The Total workforce definition is used in our reporting of learning and development ** The Telstra-paid staff definition is used in our reporting of diversity, performance management, employee engagement and health, safety and environment statistics in this report. Approximately 69 per cent of employees significant internal and external being part of a company that are employed on individual contracts. research. When we asked people impacts the lives of Australians The remainder are employed under external to Telstra what they perceived more than any other; collective agreements, including Telstra’s it was like to work here, 50 per cent said my career can take many Employee Collective Agreements made they didn’t know enough to comment directions. As the company in the 2008/09 financial year. and the other 50 per cent said they view grows and transforms, so can my Some 78 per cent of employees on Telstra as large, monolithic, inefficient, opportunities; individual agreements are eligible for conservative, inflexible, not progressive, performance-based pay. limited and impersonal, with boring I’m surrounded by great mates; and career opportunities. my work is a part of the future, Incentive arrangements have been extended to include employees We wanted Telstra people to tell our in a company that does things no on Telstra’s Employee Collective story of what it is really like to work other can. Agreements. at Telstra and why we should be Using this information, we developed considered a great career destination, and launched a fresh Telstra Talent acquisition so we asked our people - what makes employment brand, which is strongly it great to work at Telstra? Some of the In 2008/09, Telstra’s Employee Value represented in the look and feel of our responses included: Proposition was developed through new careers site and job advertising. 29
    • EMPLOYEE ENGAGEMENT It’s all about our people telling the and to implement business unit and 227 new or enhanced job-specific Telstra employment story. See local actions throughout 2008/09 training courses were developed by http://careers.telstra.com. that drive improvement in all survey the Telstra Learning Academy; and categories. the Telstra Learning Academy won Streamlining recruitment supplier A number of business units conducted the Organizational Management panels local pulse surveys in the fourth Excellence category of the In partnership with IBM Procurement, quarter of financial year 2009. Interim prestigious US-based Bersin & Telstra completed a detailed and employee engagement results showed Associates Learning Leaders award rigorous review of our recruitment improvement at a business unit level of program in January 2009. supplier panels, including a full tender between one and five percent. In 2008/09, Telstra learning and process. This resulted in the creation of Performance management development initiatives included: a new recruitment suppliers panel to address both the general and specialist the enhancement of Telstra’s Telstra’s performance management needs of Telstra’s job families for each existing capability framework system focuses on expected standards of business unit. to include ‘Organisational performance and leadership behaviours. Capabilities’ – seven specific As a result of the tender process, a single In 2008/09: capabilities we need to deliver on consistent contract with a number 87 per cent of eligible employees our business strategy. The overall of selected recruitment providers reported having an annual capability framework now covers was established in April 2009. These performance review discussion three distinct areas: leadership arrangements support the recruitment (down by three per cent); (individual); technical (business needs of all IT, non-IT, technical blue 93 per cent of eligible employees unit specific); and organisational collar and temporary agency staff. This reported having a half yearly (Telstra wide); initiative has reduced the number of panel suppliers, updated contract terms performance review discussion; the completion of two further and removed the expense created by the modules of the Frontline Leader two new online people manager use of non-preferred suppliers. Programs, creating an end-to-end skill building modules were developed and launched to Leadership Program. The new Telstra Careers Centre modules, entitled Developing improve effective feedback and performance planning; and the Team and Business Acumen, In October 2007, Telstra launched a will play an important role in central, in-house careers centre to over 5,700 managers completed the supporting the new organisational manage the end-to-end recruitment online modules by the end of the capabilities; and process for all internal and external half-year review (February 2009). permanent, fixed term, casual and the launch of the Telstra Senior agency recruitment. We have continued Leaders pilot program in April 2009. Learning and development to consolidate and improve this This program targets mid-level centralised recruitment model following In 2008/09, Telstra’s learning and leaders and 48 attendees are its first full year of operation and are development achievements included: currently part-way through a trial pleased to announce that this process within Telstra’s Network & Services an investment in learning and was completed in June 2009. business. development in excess of $104 million representing around $2,800 Employee engagement per employee; Following the last Employee 649,274 online learning courses Engagement Survey (EES) in 2008, completed through Learn.Achieve; a decision was made by the senior leadership team to conduct the next over 2,000 employees participated company-wide EES in the first half of in Frontline Leadership programs; 2010. This allowed a better opportunity 23 employees participated in for senior leaders and workgroup the Telstra Executive Leadership managers to respond to EES feedback, program; 30
    • EMPLOYEE ENGAGEMENT Program in Perth, Townsville and Melbourne in conjunction with Commonwealth Rehabilitation Service Australia. The program provides work experience to persons with disability at Telstra with the potential aim of moving them into full time employment. In 2008/09, six new employees took up roles in our contact centres following their initial work-based training program; Promoting diversity offering Indigenous employees opportunities including six traineeships in Telstra Country Telstra aims to have work environments that promote diversity and are free of Wide, six traineeships and two unlawful discrimination. graduate positions in Telstra Enterprise and Government, 13 Having a diverse range of employees specifically to help Telstra’s people roles in Telstra Consumer Marketing ensures our workforce reflects Australian benefit from an ageing workforce; and Channels and 24 traineeship society and better enables us to and post-traineeship opportunities the appointment in May 2009 of Ms represent and respond to the needs of in Telstra Networks & Services; Catherine Livingstone as Telstra’s our customers. first female Chair, heralding a new the launch of Spectrum Network, a Established in 2006, the Telstra Diversity status for women’s representation network for Telstra’s gay, lesbian, Council provides governance for Telstra’s and leadership at our company. Ms bisexual, transgender and intersex diversity program. The Council is chaired Livingstone has been a member of employees and supporters, in by the CEO and includes six of Telstra’s the Telstra Board since 2000; December 2008. Spectrum, which Group Managing Directors. Taskforces for an increase in the number of now has almost 200 members each of Telstra’s seven diversity priorities, women in executive management across the company, provides each led by a Council member, support and senior management roles networking opportunities and the development, implementation and of 4.6 per cent and 3.2 per cent promotes positive and inclusive measurement of diversity initiatives respectively; workplaces within Telstra; and across the company. Our diversity priorities are age balance, the distribution of the Diversity the launch of a Teleworking gender, cultural diversity, disability, Days Multicultural Calendar, which Policy, which aims to enable Indigenous, sexual orientation and lists a range of cultural and religious managers and other employees gender identity and work-life flexibility. events, to all Telstra managers as a to effectively manage teleworking reference for assessing requests for arrangements in order to promote Achievements in 2008/09 included: work-life balance and maintain cultural leave days; Telstra’s Sage Centre, an online business needs. conducting the Partnership Training resource tool kit, was designed Workforce diversity 2008/09 2007/08 2006/07 2005/06 2004/05 Telstra paid employees 30,336 31,102 33,002 34,551 37,087 Women 29.92% 30.62% 30.9% 30.56% 30.59% Aboriginal and Torres Strait islander 0.44% 0.43% 0.47% 0.56% 0.60% Culturally and Linguistically Diverse 5.80% 5.85% 6.28% 8.75% 9.02% People With Disabilities 1.33% 1.36% 1.16% 1.35% 2.01% As at 30 June 2009 31
    • EMPLOYEE ENGAGEMENT CASE STUDY – MY MENTOR ALPHAPLUS Men are crucial to gender the importance of diverse workplaces diversity success at Telstra. for Telstra, networking, visibility and Knowing this, we have built mentoring, work-life integration, on the success in women’s flexibility and men’s health, career development by leading planning and dynamic tips and tools to change in an original and master leadership of diverse teams for courageous way. maximum performance. Telstra worked with My The program launched at Telstra in Mentor creator and Telstra November 2008. To date, 760 men have Business Women’s Award been involved in three rollouts across the winner, Maureen Frank, to company. This includes 86 percent of the build a world-first program men in our executive team and 48 per just for men. This program cent of our male senior managers. coaches our men to create Telstra is the first organisation globally inclusive and diverse to implement the My Mentor Alphaplus workplaces. It helps them program to engage men as part of equip their male colleagues the solution to achieving gender to drive change and embed equity. Survey results indicated that “This time, we’re serious. This time business benefits of diversity. after participating in the My Mentor we’re really out there to try and make My Mentor Alphaplus is a self-paced Alphaplus program, 74 per cent of a difference,” is how Crispin Blackall, master class in gender leadership, respondents have specifically identified Operations Manager in Telstra comprising six modules over six Telstra women to help guide and Networks & Services describes Telstra’s weeks with CD, DVD and workbook support in their careers and 94 per cent groundbreaking approach to the issue of materials. The modules cover the of respondents said that focusing on gender diversity through our leadership business case for gender diversity, gender equity is now a professional goal program, My Mentor Alphaplus. for them. Employees by age group Age range % of total staff 08/09* % of total staff 07/08 18 - 24 years 9.84% 7.5% 25 - 34 years 23.94% 24.5% 35 - 44 years 30.58% 32% 45 – 54 years 25.7% 26% 55+ years 9.94% 10% As at 30 June 2009. * We have 0.05% of employees who are under 18 years old. Women in management roles 30-Jun-09 30-Jun-08 30-Jun-07 30-Jun-06 30-Jun-05 Executive Management 31.3% 26.7% 26.7% 35.7% 11.1% Senior Management 22.9% 19.7% 23.5% 22.2% 18.6% Middle Management 27.0% 27.5 27.5 27.6 26.6 Operational 30.9% 31.6% 31.8% 31.2% 31.5% As at 30 June 2009 32
    • EMPLOYEE ENGAGEMENT Health and safety Our employees are involved in a wide variety of work practices, from underground cabling and building mobile towers to office work, each with a vastly different set of health and safety standards. At Telstra, we ensure that the pursuit of a seven per cent reduction in overall excellence in customer service does not workers’ compensation forward jeopardise the safety or health of our liability, from $180.1 million to employees and contractors. $167.7 million since 2007/08; Telstra’s health and safety performance continuous improvement against in 2008/09 included: the Safety, Rehabilitation and Compensation Commission 19 per cent reduction of Lost Time implementation of the Suitable Jurisdictional Indicators - Telstra Injuries (LTI) from 2007/08; Employment (rehabilitation) met all ten of the targets and Program. 15 per cent reduction in the twelve exceeded nine; month Lost Time Injury Frequency In addition, Telstra has introduced a maintained the Comcare Tier 3 Rate (LTIFR) from 2007/08; mandatory measure of average days (highest level) rating for prevention, lost per Lost Time Injury, to encourage a reduction in the number of open workers’ compensation and early rehabilitation intervention by workers’ compensation claims, rehabilitation; providing support and assistance to from approximately 1,750 claims in 25 per cent increase in investment employees to return to work as soon as 2007/08, to less than 1,500 claims; in rehabilitation programs; and they are safely able to do so. Lost time injuries – field and non field staff 2008/09 2008/09 Staff Common risks and issues No. lost time Lost time injuries injuries (LTI) frequency rate(LTIFR) Field workforce Technical field staff Manual handling, working at heights, 62 5.18 driving, electromagnetic energy and working alone. Non-field Retail shops, call centres, Ergonomics, emergencies, electrical, stress, 45 1.18 workforce sales groups and office driving, customer aggression and noise. environments Total: 107 2.14 Audit results - Lost Time Injuries (LTI) & Lost Time Injury Frequency Rate (LTIFR) No of LTI LTIFR (12mm) Average days lost per LTI Year % of effective audit results (and % improvement from (and % improvement from (and % improvement from previous financial year) previous financial year) previous financial year) 2008/09 44% 107 (19%) 2.14 (15%) 15.0 2007/08 71% 132 (-14%) 2.54 (-19%) - 2006/07 88% 116 (26%) 2.14 (21%) - 2005/06 86% 157 (21%) 2.7 (16%) - 2004/05 74% 199 (25%) 3.2 (27%) - LTI: Lost Time Injury (at least one full shift or day lost). LTIFR: Number of Lost Time Injuries per million hours worked (as of 30 June) 33
    • EMPLOYEE ENGAGEMENT Lost Time Injuries (LTI) v Lost Time Injury Frequency Rate (LTIFR) Count of LTIs LTIFR (12mm) 1400 14 1200 12 1000 10 800 8 600 6 400 4 200 2 0 0 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 LTI: Lost Time Injury (at least one full shift or day lost). LTIFR: Number of Lost Time Injuries per million hours worked (as of 30 June) Mental health and wellbeing Employees who are mentally and physically healthy are more likely to be engaged, committed and productive in all aspects of life. Telstra’s Health and Wellbeing Strategy provides a comprehensive framework for effective investment in health promotion and prevention activities at all levels of the business. 22 per cent increase in the use of the Employee Assistance Program’s managerAssist® from 07/08; Telstra’s mental health and wellbeing was named a finalist for a national achievements in 2008/09 included: Safety, Rehabilitation and 1,001 Telstra employees took part Compensation Commission Safety in the Global Corporate Challenge, 750 employees participated in Award, in the category of ‘Best walking on average more than Telstra’s Resilience Workshops, Solution to an Identified Workplace six kilometres each day. Telstra’s building awareness of individual Health and Safety Issue’; participation was recognised with risks and strategies to enhance the Bronze Award for Most Active mental, physical and social provision of confidential Company in their team category; wellbeing; counseling, advice and support to employees via the Employee 681 employees participated in 940 employees participated in Assistance Program. This service National Ride to Work day. Telstra Telstra’s Mental Health Workshops continues to provide essential was awarded the event’s ‘Ultimate since its introduction in 2007, support for our employees Participation Challenge’ award for exploring mental illness and impacted by the 2009 Victorian the second year in a row; and building skills and knowledge to bushfires; over 1,400 employees took part in successfully manage staff with mental health issues; 117 per cent increase in the use of ten-minute cardiovascular health the Employee Assistance Program’s checks provided by Telstra to mark recognition of our Resilience – web-based resource, eapdirect™, the Heart Foundation’s National Energising Life program, which from 07/08; Heart Week. 34
    • EMPLOYEE ENGAGEMENT CASE STUDY – HEART WEEK SCREENINGS Employees in selected Telstra locations Although the screenings were not The 32 per cent of screened employees were invited to participate in ‘heart intended to replace a full check up with a who were considered to be at increased health’ screenings, held in May and June GP, the screenings did provide a valuable risk were asked to follow up with their 2009, to learn more about cardiovascular snapshot of an employee’s heart own GP and given further information to health and how to maintain their own health. During a ten minute individual help them make more informed choices ‘heart health’. appointment, over 1,400 employees had about their health. All participants Commencing in the Heart Foundation’s their blood pressure, cholesterol, glucose who responded to a feedback survey National Heart Week, the heart and waist measurements checked. thought the screenings were of benefit health screenings aimed to promote An on-the-spot type 2 diabetes risk and, encouragingly, many indicated cardiovascular health - a key focus of assessment was also undertaken. that they were inspired to make lifestyle Telstra’s Health and Wellbeing strategy. After a consultation with a registered changes to improve their health. Cardiovascular disease is largely nurse, participating employees were With a continued focus on cardiovascular preventable through healthy lifestyle given a results passbook, providing an health, heart screenings will again be choices, so Heart Week provided a great indication of their overall heart health included as part of the 2009/10 strategic opportunity to educate employees and relevant information to take away activities for health and wellbeing. and get them thinking about making with them. healthier choices. Performance and commitments Report on planned actions 2008/09 Planned actions Progress Outcome Increase the proportion of women in middle and senior We achieved 27 per cent representation of women in middle management management to 30 per cent. and 22.9 per cent in senior management. We have a number of initiatives underway to help improve our performance in this area in 2009/10. Increase Indigenous employment opportunities by 25 per Telstra is on track to exceed this target by the end of December 2009, with cent by the end December 2009 as part of Telstra’s Indigenous Action Plan 2008-11. opportunities increased by 29.2% by the end of June 2009.  Maintain the highest (Comcare Tier 3) rating across all Health, Telstra has maintained the Comcare Tier 3 (advanced level) rating for Safety and Environment categories. prevention, and workers’ compensation and rehabilitation.  Achieve a minimum of 10 per cent employee participation in The health risk appraisal did not go ahead due to a change in the priorities a new online Health Risk Appraisal by August 2009 to improve employee understanding of health risk factors. in the Health and Wellbeing strategy.   Achieved Partially achieved  Did not achieve Planned actions 2009/10 Increase employee engagement by Launch Telstra’s first Reconciliation Telstra’s Indigenous Action Plan one per cent. Action Plan incorporating company- 2008-11. wide activities around Indigenous Increase representation of women Develop and implement new customers, communities and across Telstra to 31 per cent. Manual Handling training modules employees. and resources to assist with Ensure at least 60 per cent of our Increase Indigenous employment prevention of musculoskeletal male senior managers and 100 per opportunities by 25 per cent by the injuries. cent of male executives complete end of December 2009 as part of the My Mentor Alphaplus program. 35
    • C L I M AT E C H A N G E Climate change Telstra’s focus is on energy efficiency and conservation of resources. Nerida Caesar Group Managing Director, Telstra Enterprise & Government Q&A Q: In 2009/10, Telstra will be setting a target companies and individuals move more Q: What is Telstra doing to ensure resilience to reduce the company’s carbon intensity. physical activity into virtual solutions, of its business to climate change? Why is having a target important? the amount of data being transmitted across our networks will increase, leading A: As an owner of infrastructure right A: Setting measurable targets to increased energy consumption in our across the country, changes to climate demonstrates that we are serious about network. Emissions reduction targets that may affect Telstra. Our network is providing good stewardship of the incorporate energy efficiency actions will designed to withstand the harsh climatic environment - and what gets measured reduce overall electricity consumption and conditions of Australia, but increases in the gets done. We believe that adopting a Telstra’s exposure to rising electricity prices. frequency of floods, storms and bushfires target will help motivate our company to and changing weather patterns will pose identify novel solutions to reduce Telstra’s Q: What is the focus of Telstra’s climate additional risks to Telstra infrastructure carbon intensity. change strategy? and may result in significant increases to There is also an increasing expectation the cost of repairs. from employees, customers, governments A: Telstra’s focus is on the efficient use of Our Major Incident Management team at and communities that we demonstrate energy and conservation of resources. Telstra’s Global Operations Centre works our commitment to addressing the issue For this reason, energy, water and across the company and with external of climate change. Investors see high waste management programs form the Emergency Service Organisations to help performing environmental programs as centrepiece of our strategy. As a company protect assets, maintain communications a proxy for management effectiveness, that promotes the use of information and prioritise, protect and co-ordinate which impacts on investors’ valuation of and communication technologies (ICT) repair and restoration work during and the company. and telecommunications to reduce after major incidents. A key element is carbon emissions, we are also focussed prevention of infrastructure damage Q: What are the challenges for Telstra in on improving Telstra’s adoption of ICT through good design and preparation. reducing the company’s carbon intensity? solutions such as video conferencing and teleworking to reduce costs as well as A: Our emissions have remained decrease our carbon footprint. relatively constant over the years, but as 36
    • C L I M AT E C H A N G E Greenhouse gas emissions Since 2000, we have been measuring and managing Telstra’s greenhouse gas emissions. While the increasing use of Telstra’s services will require an increased use of electricity, we are committed to looking for ways to deliver our services more efficiently. Telstra’s greenhouse gas emissions are CO2 equivalent, an increase of one per mainly derived from: cent from 2007/08. This rise reflects the inclusion for the first time of emissions the use of electricity and gas from air travel. Despite the increase in for lighting, heating and air total greenhouse gas emissions, our conditioning in office buildings and measure of tonnes CO2 equivalent per electricity to operate the network $m revenue has decreased from 60.4 in (90.9 per cent); 2007/08 to 59.4 in 2008/09. the use of fuel (LPG, petrol, Telstra implements a range of initiatives diesel) for vehicles and stand-by to deliver ongoing greenhouse gas generators (6.3 per cent); emissions savings. In 2008/09, savings air travel (2.2 percent); and due to new initiatives were 24,186 tonnes CO2 equivalent, including by-products of organic waste 1,728 average Australian households5 11,360 tonnes CO2 equivalent in decomposition that goes to landfill in a year. In addition, energy efficiency electricity savings and 12,826 tonnes (0.6 per cent). measures implemented in previous CO2 equivalent in waste diverted from In 2008/09, Telstra’s total greenhouse landfill. This saving is equivalent to the years continue to deliver greenhouse gas emissions4 were 1,515,188 tonnes greenhouse gas emissions generated by gas emission savings. Greenhouse gas emissions: tonnes CO2e per $M revenue 2,000,000 100 tonnes CO2e per $M revenue 1,600,000 80 tonnes CO2e 1,200,000 60 800,000 40 400,000 20 0 0 03/04 04/05 05/06 06/07 07/08 08/09 Greenhouse gas emissions (tonnes (CO2) Greenhouse gas emissions (tonnes CO2) per $M revenue 4 Calculation of Telstra’s greenhouse gas emissions data in this report is based on a financial control model and may differ to calculations made for other environmental reports. See data tables online at www.telstra.com.au/abouttelstra/csr/environment/index.cfm for full details of emissions sources. 5 To provide a meaningful comparison of greenhouse gas emissions throughout this section, we use information published by the Australian Government Department of Environment, Water Heritage and the Arts in Global Warming Cool It (www.environment.gov.au/settlements/gwci/households.html). This states that: ‘Each year, the average Australian household generates about 14 tonnes of greenhouse gas’. 37
    • C L I M AT E C H A N G E exchanges, radio terminals, small repeater stations and payphones. Many of these sites are in remote locations enabling Telstra to provide telecommunication services to these remote areas. During 2008/09, Telstra conducted preliminary studies on the use of fuel cells to power telecommunications equipment at Telstra’s Melbourne headquarters. The study concluded that fuel cell technology is a viable option for backup and primary power for telecommunications, however the technology has some limitations Energy efficiency from around 810 average Australian on account of cost and the difficulty households for an entire year. of sourcing fuels. This is now being Telstra’s total measured energy consumption for 2008/09 was 5,869,006 Energy management programs followed up with a two year research, GJ. This includes electricity use, natural continue to improve energy efficiency development and demonstration gas for buildings and the network, LPG, in our network, buildings and offices. project in partnership with RMIT diesel and petrol for vehicles and diesel In addition, in response to the Energy University, to look at solar/wind for power generation. Efficiency Opportunities legislation, hydrogen energy systems for remote each business unit is identifying where telecommunications facilities. The Our overall energy use for 2008/09 it can save energy through changes to project is supported by an Australian decreased by 2.8 per cent from 2007/08. business processes. Research Council Linkage grant. This was mainly due to a reduction in fuel used by the vehicle fleet and a reduction Telstra also carried out a desktop Renewable energy in electricity use of 0.3 per cent. study to investigate the cost, operating Telstra is one of Australia’s largest efficiency and greenhouse gas emissions Energy consumption 2003-2009 users of solar power with 10,314 solar of alternative solutions for cooling and In 2008/09, we saved 37,972 GJ of energy, heating of buildings (geothermal and powered sites with an installed capacity or 11,360 tonnes CO2 equivalent. This is gas heat pump solutions) compared of 3.7 mega watts. These sites include equal to the greenhouse gas emissions to conventional cooling and heating. The alternative solutions performed better in terms of operating cost and greenhouse gas emissions but were Energy consumption 2003-2009 more expensive to install compared with the conventional cooling and heating. 10,000,000 400 Transport efficiency 8,000,000 320 GJ per $M revenue In 2008/09, Telstra used 38,182,419 litres 6,000,000 240 of fuel (LPG, petrol and diesel) and GJ produced 94,246 tonnes CO2 equivalent 4,000,000 160 in greenhouse gas emissions. This is a reduction of 12 per cent in litres used 2,000,000 80 and 12 per cent in tonnes CO2 equivalent from 2007/08. This decrease in transport 0 0 greenhouse gas emissions is due to the 03/04 04/05 05/06 06/07 07/08 08/09 4.3 per cent reduction in total vehicle Total energy use (GJ) numbers and 3.9 per cent reduction in Total energy use (GJ) per $M revenue average kilometres travelled per vehicle 38
    • C L I M AT E C H A N G E and consequent fuel consumption. Environmental responsibility award During 2008/09, Telstra Fleet developed Telstra’s commitment to energy the Driving Smarter, Safer and Greener conservation was recognised at the program, which is being rolled out national Communications Alliance to all drivers of Telstra vehicles from and CommsDay Awards (ACOMMS) in September 2009 to February 2010. The August 2008. The company received program aims to assist drivers to improve an Environmental Responsibility their driving styles and achieve a target Award for the range of energy saving of 5 per cent reduction in Telstra’s fuel initiatives integrated within Telstra’s consumption rate (litres/100km). business processes. Air travel by Telstra staff during 2008/09 totalled 82,766 sectors (one way flights) or 105,151,052 km of flight, compared with 125,727 sectors and 124,054,956 km for 2007/08. Estimated greenhouse gas emissions for air travel for 2008/09 were 33,390 tonnes CO2 equivalent. CASE STUDY – GREEN STAR RATING FOR NEW BRISBANE OFFICES Telstra’s Office Accommodation Telstra’s Office Accommodation removal of desk bins - this Standards have contributed to the Green Standards stipulate the use of small change aims to increase Building Council of Australia awarding local materials where possible, the recyclable waste volumes, and a five star ‘Green Star’ certified rating to incorporation of recyclable or renewable will remove the need for the non- Telstra’s new offices at 275 George Street materials and the minimisation of waste biodegradable bin liners currently in Brisbane. and environmental impacts. in use. With 2,231 workstations in Telstra Property’s ‘One Brisbane’ project Environmental initiatives incorporated the George Street building, this is is bringing together 4,000 employees at 275 George Street include: a significant amount of bin liners from eight locations around Brisbane, waterless urinals - each urinal that won’t be added to landfill into two adjacent buildings in the central saves approximately 90,000 litres each year. business district. The new facilities in of water per year; George Street represent part of Telstra’s 100,000 litre tank capturing rain major property consolidation project water and excess cooling tower which is creating a dynamic, modern water, which is then used to flush working environment for Telstra the toilets and for topping up the employees. water cooling towers if required; According to Telstra Property Director, smarter lighting systems - use of Vito Chiodo, single tubes rather than double, daylight sensors measure the “Our property consolidation amount of natural light coming strategy is creating through the windows and adjust the lighting systems accordingly dynamic and innovative and movement sensors on each workplaces for our people floor ensure the lights are only on when the floor is occupied; derived from a balance workstations with a purpose-built between comfort levels and stand for liquid crystal display environmental sensitivity (LCD) monitors, which are about 50 per cent more energy efficient and sustainability.” than older monitors; and 39
    • C L I M AT E C H A N G E Resource efficiency and waste Paper Office paper use Telstra’s efforts to move from paper- based to online systems have resulted 400,000 16 reams per domestic staff in a decrease in the amount of paper used and improved the efficiency of our 300,000 12 reams internal administration processes. 200,000 8 In 2008/09, the consumption of office paper was reduced by approximately 100,000 4 30,160 reams, which is a 14 per cent reduction from 2007/08. Over the last 0 0 seven years, the number of reams used 03/04 04/05 05/06 06/07 07/08 08/09 per employee has decreased from 9.8 in Volumes of office paper (reams) 2003/04 to six in 2008/09. Volume of paper (reams) per domestic staff Office paper use Water savings This year we also measured paper used for billing and printing of brochures and other advertising material. In 2008/09, 1,000,000 100 water used per $0 revenue Telstra used over 1.75 million reams of paper for printing of brochures and 800,000 80 water used kl advertising material, and 883,062 reams of paper for printing bills. 600,000 60 Telstra continues to offer customers 400,000 40 the choice of online billing, including the ability to send Telstra bills to 200,000 20 mobile phones. In addition, Telstra has introduced a summary paper bill to 0 0 reduce both complexity and the amount 2007-2008 2007-2008 of paper used. An environmental benefit Water used (kl) is delivered by every customer who Water use per $M revenue switches to online billing or chooses the summary bill. Water As a telecommunications company, our commercial car washes or of home environmental impact relating to water vehicles by employees). use is relatively low. We use water in This year, actions to reduce water our offices, line depots and exchanges, consumption included the installation primarily for staff amenities such as of waterless urinals, flow restriction kitchens, toilets and showers and for devices on taps and upgrading of toilet cooling towers. During 2008/09, Telstra cisterns. During 2008/09, water saving consumed 707 megalitres of water at actions saved an estimated total of 12 its buildings and sites (this does not megalitres of water across our office include washing of Telstra vehicles at buildings and network sites. 40
    • C L I M AT E C H A N G E Water savings Our underground network infrastructure, access pits, manholes and pipes, may periodically be filled with ground water and, when it rains heavily, stormwater. In 2008/09, approximately 13 megalitres of water were removed from network access pits during maintenance activities. Telstra recycled approximately 10 megalitres of this water. During 2008/09, pit water management practices were changed. Where practical, clean pit water is now directly pumped onto adjacent grass or vegetation or to stormwater instead of being transported by tanker. This has resulted in less water being pumped out by tankers and transported for recycling or licensed disposal. Waste disposed to landfill or special treatment Waste During 2008/09, Telstra: 50,000 1.5 recycled 62 per cent of all solid and tonnes per staff member 40,000 1.2 liquid waste across the business – a decrease from 69 per cent in 2007/08. This reduction is due to the changed tonnes 30,000 0.9 practices for pit water disposal; 20,000 0.6 reduced tonnes of waste per staff member from 0.44 in 2007/08 to 0.37 10,000 0.3 in 2008/09; 0 0 reduced office paper consumption 03/04 04/05 05/06 06/07 07/08 08/09 by approximately 30,160 reams - a Total waste to landfill/treatment (tonnes) 14 per cent per cent reduction from Total waste (tonnes) per staff member 2007/08; recycled 113 tonnes of bottles, cans Waste recycled and milk cartons and 2,761 tonnes of paper; 50,000 1.0 decreased the volume of our total waste for disposal to landfill or 40,000 0.8 special treatment from 15,085 tonnes in 2007/08 to 11,628 % tonnes tonnes 30,000 0.6 tonnes in 2008/09. This decrease is primarily due to a reduction in 20,000 0.4 pit water disposed to a treatment facility; and 10,000 0.2 diverted organic waste from landfill through recycling, saving 0 0 12,826 tonnes of greenhouse gas 03/04 04/05 05/06 06/07 07/08 08/09 emissions (CO2 equivalent), down Total waste recycled (tonnes) from 15,727 in 2007/08. Recycling as % of total waste (tonnes) 41
    • C L I M AT E C H A N G E mobile industry, and 16 other leading mobile operators and manufacturers in a pledge to introduce a universal charger for new mobile phones. The group has set an aggressive target to have a universal charging solution widely available by 2012. The standard selected as the charging interface is Micro-USB. The GSM Association estimates that the adoption of a common mobile phone charger with improved energy-efficiency standards (also part of the pledge) could result in a 50 per cent reduction in mobile charger standby energy consumption globally and the elimination of up to 51,000 tonnes of duplicate chargers every year. According to Ross Fielding, Executive Director Telstra Product Management, moving to a standard universal charger Product stewardship tonnes of mobile phone components for mobile phones has the potential to were collected from Telstra shops. dramatically reduce duplication and waste. Each year the mobile industry imports “If we can eliminate the need for a around eight million new handsets into Through MobileMuster, Telstra has supported: charger to be included with every Australia. While some industries end new mobile sold in Australia we could their involvement in a product’s lifecycle the planting of more than 200,000 reduce the shipment of hundreds at sale or point of repair, Telstra and trees in the past two years through of tonnes of duplicate chargers in the Australian mobile industry, through the ‘Old Phones, More Trees’ Australia every year. As well as making the MobileMuster recycling program, campaign; and sense environmentally, it will make it is taking responsibility for the total much easier for consumers to find a the collection of over 122 tonnes of lifecycle of mobile phones and their compatible charger for their device when product in 2008/09 that otherwise components. they’re on the go. There’s also scope to may have ended in landfill. In 2008/09, Telstra continued to support pass on associated manufacturing cost the MobileMuster program with bins savings to customers” Ross said. The push for a universal provided in Telstra shops and the mobile charger addition of MobileMuster post bags for consumers to send unwanted mobile In February 2009, Telstra joined the phones and accessories to the program Global System for Mobile (GSM) for recycling. In this financial year, 21 Association, the global peak body for the Employee engagement A cross-business affiliation network, Telstra’s ‘Eco-champs’ group has steadily grown since its creation in November 2007 and now has over 560 members. Eco-champs receive regular communication, are encouraged to provide their suggestions for a ‘greener’ workplace and are instrumental in promoting environment-friendly behaviours and events in their workplaces. They disseminate information and gather support for Telstra-supported initiatives such as Earth Hour, World Environment Day, the 1 million women campaign, and Sustainability Victoria’s GreenHouse Games. 42
    • C L I M AT E C H A N G E CASE STUDY – OLD PHONES REBUILDING BUSHFIRE - HIT COMMUNITIES Labertouche Primary School lies in the “The program gave kids and heart of fire-scorched Gippsland, around 100 kilometres east of Melbourne. It’s families around Australia a fitting location for the launch of a a meaningful way to help scheme to turn the plastics reclaimed from old mobile phones into new fence these communities. By the posts for the Baw Baw Shire community. end of the challenge, we MobileMuster Chairman and Telstra had collected over 3,600 Product Management General Manager Chris Mason, was at Labertouche kilograms of mobile phones Primary School in early May 2009 to for recycling. That meant launch the ‘Old Phones, New Fence Posts Schools Recycling Challenge’. we were able to donate 720 “We chose Labertouche Primary School fence posts to the Baw Baw as our launch site and the first recipient Shire – our full pledge quota,” of new fences after some of its boundary fencing was burnt down in the bushfires Chris said. in February,” Chris said. The fence posts donated were a “I spoke to them about our challenge. polymer composite that include plastic We invited primary and secondary recycled from handsets. They are schools across the country to round manufactured by Australian Composite up old mobile phones and accessories Technology, which is donating half of for recycling. For every five kilograms the manufacturing costs. handed in by schools in May 2009 MobileMuster pledged a plastic fence post to the fire-impacted communities. L-R: Cr Ruth McGowan, Mayor Baw Baw Shire Council, MobileMuster Chairman and Telstra Product Management General Manager Chris Mason with Labertouche Primary School students. 43
    • C L I M AT E C H A N G E Using ICT to drive sustainability Government policy is setting substantial national carbon mitigation and abatement targets that will require large-scale energy conservation of the kind that information and communication technology (ICT) solutions can demonstrably help to deliver. WWF6 has evaluated the role of ICT in meeting the challenge of climate change and concluded that if ICT were widely used it could help deliver up to 2.7 billion tonnes of greenhouse gas emission reductions annually, simply by scaling up proven, commercially viable solutions. In April 2009, Telstra and WWF-Australia launched a white paper that highlights how ICT can improve environmental sustainability for large organisations and deliver positive commercial outcomes. It also introduced a set of tools to enable Australian enterprise and government organisations to estimate the environmental and financial benefits of ICT investment, enabling them to make stronger business cases for those investments. Using the new Return on Investment (RoI) tools developed by Telstra and EXAMPLES OF ECONOMIC AND SUSTAINABILITY BENEFITS Capgemini, organisations can estimate OF ICT SOLUTIONS the commercial and environmental savings from investing in four specific ICT Video conferencing - a of CO2 per annum by providing solutions – video conferencing, flexi- large company that spends 50 employees with access to an approximately one million dollars online contact centre system working, web contact centres and field in interstate travel per year could from home for three days a force management. The tools estimate save 200 tonnes of CO2 per annum week. The ICT investment could greenhouse gas emission reductions by implementing a high-definition be paid off through productivity and employee productivity outcomes by video conferencing service that improvements in around 11 assessing the financial costs and savings could be paid off through reduced months. to the company for each alternative. travel expenditure in around seven Fleet and field force management Telstra provides a copy of the months. - an organisation with a field Sustainability White Paper to its Teleworking - an organisation workforce of 500 employees could enterprise and government customers with 1800 employees could reduce avoid approximately 600 tonnes and offers sessions to use the RoI net greenhouse gas emissions by of CO2 per annum by adopting a calculator to explore potential savings approximately 500 tonnes of CO2 mobile field force management through ICT investment. Around 50 of per annum by encouraging 200 application on a wireless device. these sessions have been delivered staff to work remotely from home The investment could be paid since April 2009. three days a week. off through reduced energy expenditure in around six months, The Sustainability White Paper is Web contact centres - a contact providing annual savings of about available at: www.telstraenterprise.com/ centre with 150 employees could 10 per cent. researchinsights/Pages/Sustainability.aspx avoid approximately 130 tonnes 6 WWF (2008) ‘From Fossil to Future with Innovative ICT Solutions: Increased CO2 Emissions from ICT needed to save the climate’ 44
    • C L I M AT E C H A N G E Performance and commitments Report on planned actions 2008/09 Planned actions Progress Outcome Calculate the carbon footprints of all business All business units used the carbon calculator tool to calculate their units and corporate groups. carbon footprints. Calculations will be used to benchmark carbon footprints and monitor progress year on year.  Determine the carbon intensity (tonnes of A study was completed for a major customer to determine the carbon CO2e /unit of service) of Telstra’s Enterprise and footprint of Telstra’s services to the customer. This included both the Government service offerings. impacts of Telstra’s network and the customer premises equipment  (located at the customer’s site). Increase the 2009 employee engagement survey Telstra did not conduct an Employee Engagement Survey in 2009. This score for the ‘environment responsibility’ question. will be assessed in the 2010 survey and reported in next year’s Corporate Responsibility report.  Complete a study on the hydrogen fuel cell facility The study was completed. It concluded that there are viable fuel cell and solar panels installed at our Melbourne technologies for use in a telecommunications environment that may be headquarters to assess their potential use in used for back-up and primary power. A further research, development  Telstra’s network and buildings. and demonstration study is to be carried out over the next two years. Enhance Telstra’s driver education program with The development of Telstra’s Driving Smarter, Greener and Safer an awareness program to encourage our fleet program was completed in 2008/09. The program will be rolled out to all drivers to adopt green driving techniques to reduce Telstra drivers between September 2009 and February 2010.  fuel consumption and CO2 emissions. Reduce paper consumption by continuing to The use of online Shopping Carts, Purchase Orders and Invoices in transform our supply chain operations to effective, 2008/2009 avoided the consumption of approximately 657,783 sheets of electronic business, including online drafting and paper, that would be required if these were manual functions compared  execution of contract documentation. to 450,291 in the 2007/2008 period.  Achieved Partially achieved  Did not achieve Planned actions 2009/10 Improve fuel efficiency by five per cent by implementing the Telstra Fleet Driving Smarter, Safer and Greener program. Support Telstra’s adoption of ICT solutions including video conferencing, WebEX conferencing, telepresence and remote working, to reduce overall carbon emissions within the business. Conduct an internal and customer trial to quantify carbon emissions savings through use of video conferencing. Increase the 2009 employee engagement survey score for ‘environment responsibility’. Reduce office paper consumption by 5 per cent on a FTE basis. 45
    • COMMUNITY INVESTMENT Community investment Telstra is actively involved in the communities in which we operate. David Quilty Group Managing Director, Public Policy and Communications Q&A Q: Why does Telstra engage with local At the grassroots level, the grants We’re in a unique position to communities? provided through the Telstra Foundation ensure that access to world class and local community activities telecommunications services extends A: As one of Australia’s largest supported through Telstra’s sponsorship, to Indigenous communities to deliver companies, with customers, employees really make a difference to sports clubs, improved health, education and and operations across the country, schools, childcare centres and other business outcomes. We also provide Telstra is naturally a part of community community organisations. Programs like culturally appropriate products, such as life. It makes sense for us to be actively the Telstra Road to Tamworth, Telstra’s community phones, and our Indigenous involved with the communities where Kids Fund, the Telstra Beach to Bush Directorate oversees our approach to Telstra people live and do business – it and the Telstra Assistance Fund all help Indigenous customers and ensures we’re helps us know our customers better strengthen our connection with local meeting their needs. and understand their particular needs, communities. Through our sponsorship and whether they are in a remote or rural And of course, when disaster hits our philanthropic programs, Telstra aims community, or in one of our big cities. communities, Telstra is always quick to positively impact Indigenous health to respond. When the Black Saturday and education outcomes. The Telstra Q: How does Telstra engage with local bushfires hit Victoria, Telstra employees Foundation earmarks one third of its communities? were deployed directly into devastated Community Development Fund to areas to rebuild communications, divert support Indigenous children and young A: Telstra Country Wide (TCW) was home phones to mobiles, give mobile people. Earlier this year, we celebrated established in 2000 to focus on sales phones to survivors and set up internet our 17th year of sponsorship of the and marketing growth and service access in community centres. National Aboriginal & Torres Strait improvement in rural, remote and large Islander Art Award, which recognises regional centres. TCW is built around Q: How does Telstra contribute to better excellence in Australian Indigenous art. the local presence of 35 Area General outcomes for Indigenous Australians? Managers, which helps Telstra to build relationships and gain insight into A: Telstra’s commitment to Australia’s community needs and expectations. Indigenous communities is unwavering. 46
    • COMMUNITY INVESTMENT Telstra Foundation The Telstra Foundation delivers Telstra’s corporate philanthropy program. Its mission is to make a positive and lasting difference to the lives of children and young people. The Telstra Foundation identifies and provides funding to projects that reflect CASE STUDY – TELSTRA HELPS GREEN THE its priorities - backing social innovation, GEORGES RIVER CATCHMENT using information and communication To help mark World Environment Day The Director of Telstra Property Vito technologies, building the capacity of on Friday 5 June 2009, Telstra partnered Chiodo said, “As part of Telstra’s national community organisations, facilitating with the Georges River Combines energy, water and waste management employee community engagement and Councils Committee to plant 10,000 program, we have implemented a range having a measurable impact. saplings to help rejuvenate the Georges of positive, environmentally-focused Operating two grants programs, River catchment, south of Sydney. initiatives since 2000. This initiative sees Over 30 Telstra employees and each sapling represent one tonne of the Telstra Foundation Community volunteers, together with Federal CO2 savings.” Development Fund and Telstra’s Kids Fund, the Telstra Foundation has financially Member for Cook, Scott Morrison and Federal Member for Cook, Scott NRL and Dragons star Matt Cooper, Morrison, said that he was pleased to be supported over 5,850 projects to the value planted saplings native to the region involved and congratulated Telstra on its of $31 million since its inception in 2002. along a section of the Georges River bank positive action for the community. The Community Development Fund and catchment area to help restore the The River Keeper program focuses on supports community organisations to damaged ecosystem. minimising pollution and rubbish in deliver projects with one purpose in The health of the Georges River has the Georges River system. This allows mind – to connect children and young diminished over the last 100 years the maximum use of what is an people to their communities. To achieve with many of the river banks stripped extraordinary resource of great natural this, the Community Development Fund back to create beach front and grassed beauty in the middle of urban Sydney. has three focus areas - Social Innovation picnic areas. As a result, the natural fish (using ICT to improve social inclusion), spawning areas and places where birds Indigenous Community Development used to safely nest and breed have been and Cyber Safety. destroyed. The River Keeper program, a state Telstra’s Kids Fund is an employee government initiative to rejuvenate directed giving program that provides the Georges River and engage the grants of $1,200 to local community community on sustainable practise, organisations that involve the works with volunteers to clean up the participation of a child or young person rubbish in the river system and maintain directly related to permanent Telstra the natural beauty of this major employees. Telstra’s Kids Fund supports recreational area. Federal Member for Cook Scott Morrison, a broad range of initiatives and projects While the tree planting has a local Georges River Riverkeeper Simon Annabel across education, sports and recreation, and Sydney Telstra Country Wide Area flavour, it represents Telstra’s ongoing General Manager, Jon Grahame arts and culture, and the environment. efforts to reduce energy and water In 2008/09, over $4.8 million in funding was consumption across Australia. provided through the Telstra Foundation to more than 1,200 projects to support $645,000 in grants to four 625 Telstra’s Kids Fund grants Australian communities. Indigenous community totalling $750,000 made to support development projects; the activities of sporting clubs, This included: community groups and schools $291,000 in grants to six ongoing $1,420,000 in Social Innovation across Australia. projects; grants to support eleven projects; For more information visit www. $377,250 in 582 Community $1,343,251 in Cyber Safety grants to telstrafoundation.com.au. Connections grants; and support six projects; 47
    • COMMUNITY INVESTMENT Sponsorship in regional communities with the chance to apply for equipment grants. National Aboriginal & Torres Straight Telstra’s diverse range of sponsorships across community, arts, sports and business Islander Art Award (Telstra Art Award) deliver benefits to Australians right across the country. The Telstra Art Award celebrated its 25th silver jubilee anniversary in 2008. It is the We are proud of the part we play in building and supporting Australia’s rich cultural longest running art award dedicated to heritage, in developing our artists and athletes from the grass roots to the elite the work of Aboriginal and Torres Strait level, and in supporting Australian businesses and the people who are committed Islander artists. to their success. Telstra has partnered with the Museum and Art Gallery of Northern Territory to Surf Life Saving Australia deliver the Telstra Art Award for the past 17 years. The Award includes five main Telstra has partnered with Surf Life prize categories: Saving Australia since 2003, and in 2009 Telstra Award $40,000 (main prize); signed a further three year partnership agreement. Telstra General Painting Award The 2008/09 Telstra Beach to Bush $4,000; program, which involved experienced Telstra Bark Painting Award $4,000; and highly qualified surf lifesavers Telstra Work on Paper Award travelling to regional primary schools $4,000; and the to teach important basic surf safety messages, reached over 30,000 primary Assistance Fund, with 758 clubs awarded Wandjuk Marika 3D Memorial school children from more than 300 equipment. Award $4,000. regional primary schools. Telstra Road to Tamworth The 2008 winner of the Telstra Award In June 2009, the Telstra Assistance was Makinti Napanangka from Kintore Fund contributed $250,000 in equipment Telstra has supported young country in the Northern Territory for her untitled grants to 131 local surf life saving clubs, music talent through the Telstra Road to art work. while the Telstra Country Wide affinity Tamworth since 2004. The Telstra Road program, which sees money donated to Tamworth gives budding performers Telstra Business Awards back to local clubs for eligible purchases and songwriters the opportunity to kick- from Telstra shops, contributed $250,000 The Telstra Business Awards, now in start their music careers. in cash back to needy clubs. their 17th year, are Australia’s pre- The 2009 winners were Peter McWhirter eminent national awards program (Telstra Road to Tamworth Award) and Telstra Assistance Fund for small and medium businesses. Corey Colum (Telstra Road to Tamworth The Awards help to celebrate the Since its inception in 2003, the Telstra Songwriters Award). achievements of businesses across Assistance Fund has contributed over In 2009/10, the Telstra Road to Tamworth Australia and recognises those small and $6 million worth of sporting equipment will visit 13 regional centres across the medium businesses as the foundation of to more than 5,000 sporting and country, before culminating in the final the Australian economy. community clubs. in Tamworth in January 2010. The 2010 The 2008 Telstra Australian Business of The 2009 Telstra Assistance Fund was program has been extended to include the Year was Machinery Automation & launched in May on Channel Nine’s separate performer and songwriter Robotics from Silverwater in New South Today show by Telstra Ambassadors categories and a digital heat for those Wales. Zane Holmes, Nathan Hindmarsh, who live more than 400 kilometres from More than 3,500 nominations across swimming star Eamon Sullivan and a physical heat location. five categories were received in the AFL’s Scott West. In 2008/09, over 2,000 Community music groups can also 2009 Telstra Business Awards. Black-tie NRL, AFL, surf life saving and swimming, benefit through a new program – presentation dinners were held in every sport and community clubs applied Keep the Music Playing. The music state and territory across Australia, for equipment through the Telstra development fund provides Australians 48
    • COMMUNITY INVESTMENT culminating in the national dinner Telstra Business Women’s Awards where the achievements of the state Since 1995, the Telstra Business and territory winners were celebrated Women’s Awards have celebrated and showcased to leading government, the journeys of some of Australia’s corporate and media representatives. most inspirational women including entrepreneurs, innovators, up-and- coming young business women, corporate leaders and those working in the not-for-profit sector. The 2008 Telstra Australian Business Woman of the Year was Leanne Wesche, Managing Director of Pacco Group and Safeguard Innovations, Australia’s largest independent fruit and vegetable packing businesses. In 2009, a record 4,500 women were recognised through the nomination process. The rigorous entry and judging process 2008 Australian Business Woman of the Year, of the Awards provides a valuable and Leanne Wesche is congratulated by Holly rewarding experience for entrants, both Kramer, Group Managing Director, Telstra Machinery Automation and Robotics, personally and professionally. Product Management and Telstra Business 2008 Telstra Australian Business of the Year Women’s Awards Ambassador CASE STUDY – THE AUSTRALIAN BALLET Telstra and The Australian Ballet is an investment in emerging ballet world behind The Australian Ballet. celebrated 25 years of partnership in talent and gives up and coming dancers Regularly updated, and available 2009. Ours is one of the longest running a chance to perform in front of new on The Australian Ballet’s website, arts partnerships in Australia, and we audiences. these resources grant more and more remain committed to making dance The Telstra Ballet Dancer Award, now in Australians access to one of the busiest more accessible to more Australians. its eighth year, rewards young dancers ballet companies in the world. The partnership has made a substantial for their hard work, talent and passion in Telstra’s sponsorship ensures the impact on ballet in Australia, encouraged the highly competitive and demanding continued vibrancy of this art form in new dancers to shine and brought the industry. The Telstra Ballet Dancer Australia, encourages new dancers and ballet to audiences across Australia. This Award winner receives a $20,000 cash brings the grace and beauty of ballet to year’s free outdoor Ballet in the Gardens prize, while the winner of the People’s audiences Australia wide. performance was enjoyed by more than Choice Award is presented with a cash 10,000 people in Brisbane. prize of $5,000. The Dancers Company tour, sponsored In 2008, Western Australia’s Kevin by Telstra and now in its seventh year, Jackson took out the coveted Telstra travelled to ten regional locations across Ballet Dancer Award. A record-breaking Victoria, Queensland and the Northern 72,000 votes were cast in the People’s Territory. The Dancers Company Choice Award, with Victorian Amy Harris comprises established performers of The receiving the highest number. Australian Ballet, together with stars Telstra’s partnership with The of tomorrow from the senior levels of Australian Ballet has also contributed The Australian Ballet School. Telstra’s Dancer: Gina Brescianini to the production of informative, online sponsorship of The Dancers Company mini-documentaries exploring the 49
    • COMMUNITY INVESTMENT Volunteering At Telstra we believe that one of our most important corporate responsibilities is to choirs, sports clubs, food vans, local voluntarily contribute resources, people, technology, infrastructure, products and neighbourhood houses and home visit groups. services to support the communities in which we operate. One community organisation to receive Telstra promotes and facilitates volunteering opportunities for employees, and a Community Connections grant was encourages employees to voluntarily participate in activities that support the SongBirds, a not-for-profit organisation organisations, charities or community groups with which they are connected. in Sydney that performs musical variety shows for residents in nursing homes, retirement villages and hostels. As Community Leadership Program Grant funding, strategy and diagnostic well as assisting the group in acquiring tools, and group learning activities some much needed funds, the grant In 2008/09, the pilot of the Telstra also had an unexpected flow-on effect, as the most valuable aspects of the Foundation’s year long Community according to SongBirds’ creator and program. For Telstra executives, giving Leadership Program was concluded. Telstra employee, Susan Grant. News back to the community by sharing their Developed in collaboration with of the Telstra Community Connections skills and having a positive impact on Social Ventures Australia, the program grant was reported in the local media, a community organisation, and the matched six senior Telstra executives which led to SongBirds experiencing an opportunity to learn about leadership with six leaders of not for profit increase in both venue bookings and in a non-profit context were the most organisations funded through a Social volunteers. valued aspects of the program. Innovation Grant. The program aimed to Sacred Heart Mission was another develop the capacity of the community Community Connections organisation to benefit from the organisations to achieve, measure program. Sarah George, from Telstra’s and communicate the social impacts In addition to its regular grants Program Office, has volunteered for of their programs. It also provided an programs, in 2008/09 the Telstra Sacred Heart Mission for six years. opportunity for senior Telstra executives Foundation launched the $460,000 to develop and apply their leadership Community Connections program “It is a fantastic initiative by Telstra skills in a community sector context. to recognise Telstra employees’ to provide financial support to involvement and leadership in organisations that are close to Feedback from all participants indicated community organisations with financial employees’ hearts. Organisations that the opportunity to interact with support. This one-off program provided such as Sacred Heart Mission rely on and learn from each other was a major grants of $250 or $1000 to 582 not-for- fundraising and donations to survive benefit of the program. Community profit community activities including and continue their amazing work in the leaders also cited the Social Innovation community,” said Sarah. 50
    • COMMUNITY INVESTMENT Telstra Marketing Academy® CASE STUDY – TELSTRA VOLUNTEERS MAKE The Telstra Marketing Academy® was ABRACADABRA MAGIC developed by Telstra in 2008 to help Nine enthusiastic Telstra employees “It’s terrific that the Telstra Foundation is secondary school students learn more spent a week in the Northern Territory supporting something that can make a about marketing in the corporate working with Indigenous students to real difference,” she said. “This has been a environment and provide a learning help researchers assess ABRACADABRA, great experience. I feel that my mind has opportunity that supports the existing an innovative literacy program led by been broadened and I definitely want to secondary school curriculum. Telstra Charles Darwin University and supported come back.” developed project and course materials by the Telstra Foundation. Don Pennell from Telstra Operations to align with the marketing unit of work The employees, who funded their own in Ballarat decided this was the perfect in the Business Management/Business travel and used their holiday allowance opportunity to give something back. Don Studies key learning area. to attend, answered an appeal for said the expense was a small sacrifice. As part of the program, students work volunteers broadcast over the Telstra With six kids of his own, he sees successful intranet. They came from across Australia education in the early years as an in teams to analyse both Telstra and and worked in locations across the essential ingredient to a happy life. competitor approaches to marketing Territory including Darwin, Katherine, “The early developing years are so and to develop a marketing activity Hermansberg and Alice Springs. important. If they don’t enjoy it, if they designed to increase awareness of Marilyn Last, Telstra IT support worker struggle, they give up,” he said. the Telstra Next G™ network for a from Melbourne, assisted researchers at A soon-to-be completed degree in Early specific market segment. Students Milner Primary School in Darwin. Milner, Childhood Teaching was the motivation also learn about business concepts like many other Territory schools with behind Lisa Curtis’ decision to volunteer. and planning, establishing project large numbers of Indigenous kids, is trying Based in Brisbane with Telstra’s Enterprise objectives and identifying strategies, to find ways to accelerate the literacy & Government, Lisa was driven by a desire market segmentation and product progress of struggling students. A love of to connect and engage with Indigenous differentiation, and implementation of working with kids and a background in children. promotions and campaigns. teaching English as a second language “The right education methods will help to provided Pauline White from Telstra bridge the gap,” she said. “We need to find In 2008, over 150 students participated Service in Melbourne with the impetus to the right tools to connect with children to in the program. Our employees visited volunteer. give them opportunities in life.” schools to conduct classroom sessions “I have skills that can assist,” said Pauline Charles Darwin University research leader and judged the final presentations. “and I wanted to give something back. This Dr Jenni Wolgemuth was impressed In November 2008 winning groups experience has confirmed to me that all with the commitment of the Telstra from each participating school were kids are the same - they want to learn”. employees. “To think these volunteers invited to attend a finals event, held in For Vickie Harper from the Grafton Call gave up so much to help ABRACADABRA Sydney and Melbourne, where schools Centre, seeing the call for volunteers is just amazing. It’s great Australian spirit,” went head to head to win a two week evoked an immediate ‘I want to be part of she said. placement at Telstra. this’ response. L-R Vickie Harper, Pauline White, ABRA research leader Dr Jenni Wolgemuth, Don Pennell, Lisa Curtis 51
    • Performance and commitments Report on planned actions 2008/09 Planned actions Progress Outcome Develop and pilot an employee matched giving program to The Community Connections program was piloted in 2008/09. donate funds to community organisations nominated by Telstra employees. It provided $377,250 in grants to recognise the community contributions of Telstra’s employees through volunteering.  Provide over $3.5 million in grants through the Telstra Foundation In 2008/09 the Telstra Foundation provided $3.7 million in grants to help community organisations connect children and young people to their communities. to community organisations to help children and young people connect to their communities.   Achieved Partially achieved  Did not achieve Planned actions 2009/10 Develop and implement a payroll giving program for Telstra employees to contribute to community organisations. Provide over $3.5 million in grants through the Telstra Foundation to help community organisations connect children and young people to their communities. Produce an inaugural community report that presents the breadth of Telstra’s support for the community. 52