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:: ANNUAL REPORT 2005  
 
 

CORPORATE SOCIAL RESPONSIBILITY AT CYTA

WHAT IS CORPORATE SOCIAL RESPONSIBILITY?
Globalisation, political upheavals and technological advances lead to rapid and radical changes in society worldwide. Society’s expectations about the role and the responsibilities of business are changing drastically. In the newly-emerging economy, companies are judged not only on the basis of their financial results, products and services, but also on their environmental and social practices and sensitivities.

For these reasons, more and more companies in Europe  and throughout the world are adopting policies on, and are voluntarily involved in, areas such as working conditions, human rights, the environment and social issues, over and above their legal and regulatory obligations. The term Corporate Social Responsibility (CSR) is used to describe these broader commitments of a company, beyond their responsibility for profitability and financial survival.  According to the definition of the European Commission, CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

The internal dimension of a company’s CSR covers issues of human resources management, health and safety in the workplace, management of change and management of the environmental impact of its operations.

The external dimension of a company’s CSR extends to the local community and society and involves, apart from employees and shareholders (or owners), a broad group of stakeholders, such as partners, suppliers, consumers, public authorities and non-governmental organisations and extends to issues such as human rights  (e.g. in the supply chain internationally), and the environment.

CSR AND ELECTRONIC COMMUNICATIONS
Electronic communications and the rapid technological advances of recent years have probably had the greatest impact on society than any other business sector. Electronic communications have revolutionised human relationships, business and the way society and the economy function.

More specifically, and in relation to Corporate Social Responsibility, electronic communications have the capacity to impact on all three dimensions of CSR: environmental, social and economic .

In the environmental dimension, electronic communications have the potential to reduce the burden on the natural environment through the substitution of matter (dematerialisation). For example, e-mail substitutes written letters on paper, teleconferencing and videoconferencing services substitute travelling, thereby reducing the consumption of fuel and the emission of gases that cause the greenhouse effect.

In the social dimension, electronic communications have the capacity to improve, for example, the provision of medical services, through advanced applications such as tele-medicine. They affect education through applications such as tele-education and the quality of life of workers through applications such as teleworking.

In the economic dimension, electronic communications offer the possibility for improvements to entrepreneurial capability and the development of new business activities and innovative products and services, through applications such as the Internet, e-commerce, call centres and others.

CYTA, A RESPONSIBLE ORGANISATION
CYTA was quick to acknowledge these trends and their potential. It is also aware that it constitutes an integral part of the broader society in which it operates and, being a socially and environmentally responsible organisation, is keen to maintain the trust of society. This is why, for a number of years, apart from its usual activities in the field of telecommunications, it has been actively involved in, and contributing to, society as described in the Business Excellence Model of the European Foundation for Quality Management (EFQM).

The European Union proposes a holistic approach to the application of CSR, namely its integration in all aspects of everyday business management and relationships with all its stakeholders.  That is why, in 2005, CYTA set about implementing a project for the Integrated Management of CSR, obtaining consultancy services and planning the initial steps in this direction. The objective of this project is the introduction and integration of CSR in the daily operations of the Organisation, so that it is no longer a separate or add-on activity.

CYTA’S RESPONSIBILITY TO SOCIETY
CYTA has adopted the EFQM Business Excellence Model, which also prescribes self-assessment in the area of contribution to society, beyond financial results and customer and employee satisfaction. Thus, we have consciously decided to promote our corporate identity, our products and services indirectly as well. In 2005 we reinforced our contribution to society, in the framework of our Corporate Social Responsibility, by implementing projects contributing to Health and Welfare, Education, the Environment, Culture, Sport, and Research and Technology

Health and Welfare
In the sensitive area of road safety, our policy focuses on the cultivation of road safety awareness among young people who make up around 25% of the victims of traffic accidents in Cyprus. For this reason, we extended the road safety seminars that we organise to 9.000 Secondary School students who will be graduating at the end of the academic year 2005-2006. This CYTA initiative confirms, furthermore, our commitment to the European Road Safety Charter (which the Organisation signed in Dublin in 2004) and to the European goal of halving the number of road fatalities by 2010. The seminars are a continuation of those already organised for National Guard conscripts.

Regarding health, we sponsored for the second consecutive year the Neonatal Hearing Screening Programme at the Centre for Preventive Paediatrics, as well as the Medlook electronic news bulletin on health matters. 

In the context of our interest in public health and welfare, several of our activities have now become established institutions.

Since we care about the welfare of those manning the National Guard, every year we issue and distribute free of charge "Camouflage" telecards to newly-drafted National Guardsmen on their first day of military service. We also offer telecards at Christmas to Greek officers and soldiers serving in the National Guard and the Greek Armed Forces in Cyprus, low-income National Guard soldiers and prisoners.

We also contributed to the 2005 Radiomarathon as an official sponsor, through actions aimed at organising and publicising it in the best possible way and by fundraising. We supported other charity fundraising events in a similar way. Also, during the Christmas holidays, CYTA representatives visit hospitals and children’s homes with gifts for the children.

With the aim of offering telecommunications support to charity fundraising events, CYTA has, for some years now, provided the free Charity Direct service which enables  people to make donations by telephone to charitable organisations. We also operate several services with a four-digit telephone number via which free calls may be made to various emergency services.

Education
With regard to education, in 2005 we distributed the electronic encyclopaedia "Hermes" to all private secondary schools, to state and private junior schools for use by teachers and to all CYTA employees who do not have children in primary or secondary education. This was a continuation of the distribution of the encyclopaedia to 60.000 secondary school students and teachers in 2004.

We sponsored the islandwide "Technology in Education" competition and once again we were a Gold Sponsor of the Cyprus Mathematical Society. We also sponsored ten scholarships for non-CYTA employees to obtain the Intercollege Diploma in Telecommunications & Information Technology. The purpose of these scholarships to employees and third parties is to enrich the labour market with technicians who are trained in technology and informatics issues due to the present shortage.

On the subject of activities that have become institutions, in recent years CYTANET has sponsored "JOTA-JOTI" (Jamboree on the Internet and the Air), the annual online event of the Cyprus Scouts Association.  Since 2001 CYTANET made presentations to junior, secondary and technical schools on the subject "All About the Internet" with the aim of educating students about electronic communications and promoting Internet usage in schools. By the end of 2005, we had made 139 visits to schools where the presentations were attended by a total of 14.586 pupils and teachers.

In the framework of an agreement between CYTA and the Ministry of Education and Culture, we have connected all the island’s schools to the Internet free of charge. They pay a special low monthly subscription fee and, among other things, receive free web hosting of school and teachers’ websites (of educational content).

We contributed to the creation and operation of the Youth Board of Cyprus’ Youth Information Centres (YIC) in Lerkosia (Nicosia) and Agros. Specifically, we sponsor the rent and provide equipment and services. We have also set up a mobile YIC in collaboration with Microsoft. 

Every year we publish an activity book for children entitled "…Playing, having fun and learning with Telis", which is distributed to all pre-school and primary school children throughout the island. The book contains educational and recreational material approved by the Ministry of Education and Culture. The book also contains announcements of painting competitions. The best children’s paintings are subsequently chosen and prizes are awarded at a special ceremony.  The winning paintings are included in a wall calendar published by CYTA.

In the framework of extra-curricular activities for children, CYTA "opens its doors" every year to many children. Usually they visit the Makarios Satellite Earth Station or the Archive Centre in order to learn about our Organisation, its services and history. We also welcome pupils and students on work experience projects.

Every year we enable prospective students to obtain their university entrance examination results as soon as they are announced by the Ministry of Education and Culture, either from the CYTANET homepage or by text message to their mobile phones via the Cytamobile-Vodafone cybee service.

Finally, the soeasy prepaid mobile telephone service purchased a MENTOR mobile education unit, thereby supporting the programme on health and correct diet that is implemented in junior schools across the island. At the same time, educational toys were made and distributed to children.

Environment
Our Organisation wishes to contribute to the development of an environmental awareness among the people of Cyprus as part of its contribution to society, by implementing a variety of projects and activities. (Read more about CYTA’s internal environmental management later on in this chapter.)

In 2005, we created new CYTA Parks in Dasoupolis and at Kato Polemidhia in collaboration with the Municipalities of Strovolos and Kato Polemidhia respectively, as a continuation of an earlier decision to create green places in various urban areas.

CYTA was a Major Sponsor of the open-air photographic exhibition "Earth from Above" by the internationally celebrated French photographer Yann Arthus-Bertrand which was held in Nicosia. On the occasion of the exhibition, we organised a "Knowledge Treasure Hunt" for visiting junior, high school and lyceum pupils. On the exhibition site was a kiosk distributing leaflets and small prizes which promoted our Organisation’s environmental activities.

On International Ozone Day, marked by the United Nations on September 16, we issued a special collector’s series of telecards on the theme of protecting the ozone layer. The telecards were pierced to symbolize the hole in the earth’s ozone layer, with the aim of raising public awareness of the subject.

Another well-established institution is our sponsorship of the activities of CYMEPA which, among other things, offers environmental education programmes to schoolchildren. These include the "Young Journalists for the Environment" educational programme which is supported by the Ministry of Education and Culture, coordinated by the Foundation for Environmental Education in Europe (FEEE) and sponsored by CYTA. Within the framework of this programme, a thematic competition is held among high school and lyceum students, the winners of which are awarded prizes by our Organisation at a special ceremony.

Since 2001, we have provided special paper recycling collection boxes (which we also use in our own offices) and the relevant posters to schools participating in the eco-schools programme and other interested schools. More specifically, between 2001 and 2005, 750 such recycling boxes and posters were donated to 45 schools for use in classrooms in order to develop the children’s environmental awareness.

Culture
In 2005, CYTA held a modest and moving ceremony at its Head Offices in Nicosia to thank and honour the great Greek composer Mikis Theodorakis on the occasion of the issue of a series of telecards to mark his 80th birthday. CYTA was also a sponsor of his concert in Cyprus.

A special sponsorship of the year under review was that of the CD “Castalia and the Sirens” by the young Cypriot musician Stelios Pisis. Despite a serious health problem since childhood which has essentially left him bedridden, Stelios continues to write music daily on his computer, giving a lesson in life to us all.

We also sponsored the CD “Mary, Mother of God” by the well-known Cypriot composer Marios Tokas. The disc features live recordings from concerts in Slovakia and Austria which were also sponsored by CYTA.

Our Organisation sponsored a number of other cultural events, including two major concerts in Cyprus by the internationally-known Cypriot baritone, Kyros Patsalides, and the world-famous Vienna Mozart Orchestra.

Sport
In 2005, CYTA became a Major Sponsor of Football. The sponsorship programme covers the Cyprus Football Association, the Cyprus national team and all the teams of the 1st, 2nd, 3rd and 4th Divisions. During the year in review we also sponsored the Cyprus Sportswriters Association and the enlightenment campaign by Fair Play Ambassador Dora Kyriakou (former athletics champion) aimed at pupils throughout Cyprus. Finally, CYTANET supported the 2005 Cyprus Rally, one of the events in the World Rally Championship calendar.

Research and Technology
In collaboration with JCC Payment Systems and e-Group Technologies, CYTANET held a seminar on "E-Commerce Today". It was attended by Managers and Board Members of large organisations and banks as well as by senior officials of well-known local business enterprises.

On World Physics Day 2005, during which the centenary of Albert Einstein’s "Miracle Year" was celebrated, CYTA issued a special telecard.

Our Organisation is also a Major Sponsor of the technology and science e-bulletin "Tech-Culture".

CYTA’S RESPONSIBILITY TO ITS PEOPLE
As a responsible citizen and good employer, CYTA manages and develops its personnel through the implementation of management systems and programmes for the development/support of their professional and private life.

Significant achievements in this sector during 2005 include the implementation of flexible working hours in more Departments, the continuation of road safety programmes, the implementation of the Development Centres and the drawing up of personal development programmes for a number of employees, the broad participation of members of staff in both internal and external training programmes and others which are described in detail in the "Human Resources" section of the chapter of Management in this report.

Our Organisation offers its personnel far more than what is prescribed in the relevant legislation. It takes care of the health and welfare of its employees and their families through the Medical Fund, the CYTA Staff Welfare Fund, by holding seminars on medical and social issues (e.g. stopping smoking, bringing up children, etc.), implementing an advice and support programme through the services of a social worker, providing financial assistance to needy employees, pensioners, employees’ widows and orphans, arranging low-interest student and housing loans and more.

For the children of staff members we organise Christmas parties, give prizes to the top students in secondary and tertiary education and award scholarships.

For our employees’ own entertainment, we subsidise their subscription to the Cyprus Theatre Organisation and provide free tickets to concerts, plays and football matches.

We also organise special retraining seminars for retiring members of staff, while the Organisation’s care for its employees extends beyond their working life. Retirees continue to be covered by the Medical Fund and may take advantage of the facilities and subsidised holidays offered by the CYTA Staff Welfare Fund.

CYTA employees, sensitive to social issues, also make their own contribution. For some years we have established and promoted blood donation and our Organisation’s blood donors make up one of the largest voluntary groups in Cyprus. Every year, regular group blood donor sessions are held during working hours on our premises.

CYTA’S RESPONSIBILITY TO THE ENVIRONMENT
As a modern European business, CYTA respects the environment in which it operates and does everything within its power to operate and promote itself as an environmentally responsible Organisation.

Recognising the positive and negative impacts on the environment of its operations, products and services, it took action in 2001 by formulating its Environmental Policy.

One of our strategic objectives in this area is the implementation of an Environmental Management System.  In 2005, we began a project for the introduction and certification of an Environmental Management System according to the international standard ISO14001. The first stages in this project include the identification of, and compliance with, our legal environmental obligations. To this end, we began with the preliminary screening of environmental legislation and the identification of applicable legislation. Two such themes are the legislation on waste from electrical and electronic equipment and the legislation on packaging and packaging waste, regarding which we have already initiated the necessary procedures for compliance.

In response to public concerns regarding electromagnetic fields and in order to understand these concerns better, we carried out a special survey in 2005. We also continued our 2004 enlightenment campaign on electromagnetic fields. With a view to providing objective, documented and scientific information regarding the installation and operation of mobile telephony antennas and mobile telephones, the campaign included the organisation of events in all towns under the banner "Electromagnetic Fields: Myth and Reality", with the participation of academics and other important speakers. We also arranged meetings with groups of concerned citizens and published a special informative leaflet entitled "Mobile Telephony and Health" which is distributed through cytashops and Cytamobile-Vodafone selected dealers.

In line with our Environmental Policy, which commits us to promoting the procurement of environmentally friendlier and recycled products, we developed a methodology for the integration of environmental criteria into the procurement process (specifically for paper) and this has already been applied to the procurement of photocopying paper.

CYTA’S RESPONSIBILITY FOR ITS PRODUCTS
With the aim of providing regular information and protecting our customers, especially the most vulnerable group - that of children - we published an informative brochure entitled "Children and the Internet Challenge" which we distributed to junior and secondary school pupils throughout Cyprus. The brochure informs parents and children about the advantages and the potential dangers of the Internet, and offers advice on safe usage.

In the same context and due to the widespread use of mobile phones by children, we published a leaflet entitled "Mobile Telephony - Advice to Parents".  Also, in acknowledgement of the dangers arising from mobile phone use while driving, we prepared a special leaflet on "Mobile Telephony - Guidelines for Safe Driving." Both leaflets were handed out to visitors at the "Earth from Above" photographic exhibition by the French photographer Yann Arthus-Bertrand. As mentioned previously in this chapter, the exhibition was held in Lefkosia (Nicosia) and CYTA was a Major Sponsor. Leaflets were also distributed through cytashops and Cytamobile-Vodafone selected dealers in all towns and were handed out to interested schools for use in educational events and lessons on the subject.

CYTANET provides free e-mail anti-virus and anti-spamming protection to all its customers. Internet users who are CYTANET customers can adapt this particular facility to their own requirements.

In 2005, under the banner "Everyone has a right to communication", CYTA began providing special telephone handsets for individuals with impaired hearing, vision and movement at cost price.  These handsets overcome hearing, vision and movement difficulties, are easy to use and have special features such as higher volume levels, large dial keys, visible indication of incoming calls, etc. 

PUBLIC PERCEPTION INDICATORS FOR CYTA
Apart from having a positive impact on society and its stakeholders, CYTA’s involvement in the area of Corporate Social Responsibility is also reflected in its corporate image and adds value to the Organisation.

We use a yearly market survey to monitor public perception with a series of indicators in the field of Corporate Social Responsibility. The 2005 survey revealed that CYTA is one of the first three organisations cited most frequently by the public as being socially responsible. The reasons why these organisations are perceived as being socially responsible include their support for charitable institutions, their contribution to public health, their role in resolving social problems, their assistance to sports and community projects and their reputation as good employers. Three out of four people also mentioned that their image of CYTA had improved to a greater or lesser extent when they learned of its various activities and sponsorships.

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