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The Ethical Quietness of Telecommunication May Not Last – Covalence Telecommunication Report 2009

090629_telecomm.jpgPress Release | Geneva (Switzerland), 29 June 2009

The telecommunication sector shows a relatively small volume of ethical information but should be exposed to greater Corporate Social Responsibility (CSR) challenges in the future, states a report published today by Geneva-based ethical reputation research firm Covalence in its Telecommunication Report 2009.

The telecommunication sector registers a modest volume of CSR information (the 14th out of 18 sectors). It doesn’t generate intense ethical debates like automobiles or food & beverages. While this relative quietness may be seen as a chance, it is also a risk. Product-based companies traditionally have been more exposed to CSR controversies than those in services-based sectors like telecommunication. However, the latter may soon have to face new, hidden CSR challenges: expanding its ethical reach to anticipate this evolution will be the telecommunication sector’s greatest challenge.

Among topics that could represent future CSR challenges to telecommunication companies are access to telecommunication among low-income populations, anti-corruption policy, supply chain management (working conditions, waste management), product life cycle – telecommunication companies increasingly market products such as phones and notebooks while offering network services.

The telecommunication sector receives few criticisms on products, while it is suffering on working conditions and job stability (due to downsizing).

Criteria showing the most positive news for the Telecommunication sector in the 2002 – 2009 (Mar) period are: 37. Social Sponsorship, 26. Environmental Impact of Production, 34. Information to Consumers, 10. International Presence, and 1. Labour Standards. Criteria registering the most negatives: 18. Downsizing, 1. Labour Standards, 38. Anticorruption Policy, 12. Economic Impact, and 45. Lobbying Practices.

Comparing the Ethical Ranking of 30 companies in the Telecommunication sector calculated from 01.01.2002 to 31.03.2009, Vodafone Group PLC is leading (#23 across 18 sectors and 541 companies), ahead of Verizon Communications (#46) and Telefonica SA (#86), while Telecom Italia (#525), Chunghwa Telecom (#498), and Softbank Corp (#477) occupy the last positions.

More information on Covalence Telecommunication Report 2009:

> Extract: Covalence Telecommunication Report 2009

> Press Release (.pdf)

 

About Covalence

Geneva-based Covalence tracks the ethical reputation of multinationals by sourcing online information. We publish ethical rankings and offer reputation management products to clients among companies, investors and institutions, while informing researchers and the media > Covalence in the news.

Covalence’ s ethical quotation system is a reputation index based on quantifying qualitative data, which is classified according to 45 criteria such as Labour standards, Waste management, Product social utility or Human rights policy. It is a barometer of how multinationals are perceived in the ethical field. The system integrates thousands of documents found among media, companies, blogs, NGOs and other sources.

This tool received the Cantonal Sustainable Development Prize (Geneva) in 2004 and prompted Covalence among the finalists of the Social Entrepreneur of the Year 2005 award organised by the Schwab Foundation. Covalence research is also distributed by Reuters, Thomson Financial and Bloomberg.

sified as the largest market capitalizations in the Dow Jones World Index. Covalence is a limited company that was founded in Geneva in 2001 by six persons with political science and finance backgrounds.

Press contact

Covalence SA Antoine Mach, Direction & Research

Tel: +41 (0)22 800 08 55; antoine.mach@covalence.ch

Sales contact

Covalence SA Marc Rochat, Marketing & Sales

Tel: +41 (0)22 800 08 55; marc.rochat@covalence.ch

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