Shareholders' Letter

Responsibility
in the supply chain
See
www.swisscom.ch/GRI/en
See
www.swisscom.ch/
suppliers
Responsibility in the supply chain
Management approach and objectives
Swisscom’s annual procurement volume of CHF 3.2 billion is based on transactions with more
than 6,000 suppliers. Swisscom expects its suppliers along the entire supply chain to exercise
responsibility in their turn. The purchasing policy defines the rules of engagement and provides
the binding basis for negotiations with suppliers.
Details of the purchasing policy are set forth in contract annexes. These annexes contain requirements
taken from Swisscom’s environmental management system or other action areas such as
the protection of minors in the media.
Swisscom’s Environmental Committee draws up concrete proposals to extend the corporate
responsibility contract annex, following which the Swisscom Purchasing Board decides on
whether or not to integrate these suggestions.
Purchasing policy
Corporate responsibility contract annex
Swisscom is aiming to have the corporate responsibility contract annex (CRV) signed by 97% of its
supply partners by the end of 2013. The CRV will be integrated in all new contracts and included
as an annex to existing contracts when they are renewed. To speed up the process, since mid-2010
Swisscom has been advising supply partners who order online that, effective immediately, the
annex is an integral component of their contract.
Starting in January 2011, a standardised contract management system will be introduced to
enable accurate recording and registration of the number of contracts concluded.
Supplier evaluation
Key supply partners are evaluated twice a year. During this process the parties jointly identify development
fields and sign agreements on targets, compliance with which is continually monitored
by Swisscom’s buyers. A review of 37 supply partners (2009: 31, 2008: 15) was conducted in 2010.
Key Supplier Day 2010
In March 2010 a public ceremony was held in Berne to present winners and finalists with the first
Swisscom Supplier Awards for innovation, cooperation and sustainability.
Awareness-raising and training for employees
The compact course on procurement is designed for all employees to raise their awareness of corporate
responsibility issues in the supply chain. In 2010 ten compact courses were attended by
170 participants.
All buyers – i.e. some 100 employees – are given training in the purchasing policy and corporate
responsibility. This was also the subject of a presentation at the Swisscom Buyers’ Day in 2010.
And an information and training event on the procurement of promotional articles – an activity
which is accorded a higher risk rating – was attended by nine decision-makers.
Supplier risk management
The risk management system is still under development. A pilot trial on self-declaration was conducted
in 2010 with ten selected supply partners. In 2011 strategic supply partners will be evaluated
according to risk levels, based on the product category structure, and the necessary steps
will be taken to minimise risks.