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Report on Corporate and Social Responsibility

Together with community

slika

The activities of Telekom Srbija in the sphere of socially responsible behaviour, in 2016, were largely dedicated to the promotion of entrepreneurship. In Serbia and the region, the Company marked the 160th anniversary from the birth of Nikola Tesla, our celebrated inventor who left a mark on the scientific thought of the 20th century. By a unique artistic project „Tesla's Time Machine“, shown in the seven cities, Telekom Srbija reminded the citizens of the anniversary of birth of the most famous scientist from this region who indebted the humanity with his inventions. This anniversary symbolically coincided with the fact that the year of 2016 in our country was declared a year of entrepreneurship, since Nikola Tesla can be considered one of the initiators of entrepreneurship in the spheres that he dealt with.

It is exactly support to technological entrepreneurship that was at the center of attention of the Company, by which the initiators of innovations in the sphere of communication and information technologies obtained a strategic partner for further development of their business solutions. Telekom Srbija as a reliable partner in 2016 to numerous organizations that tried to improve the living conditions by their activities and make significant progress in their specific spheres of action. Support to projects in education, culture and science, as well as those in the sphere of health care were the predominant activities in the sphere of corporate philanthropy in which a total of 72 initiatives were supported. Telekom Srbija is proud of the fact that this kind of activities of the Company is becoming more visible and that it has a leading position in the sphere of socially responsible operations, since almost a half of the citizens, according to the results of the poll conducted by the Faktor Plus agency recognized Telekom Srbija as a company which is investing most in the social welfare of the communities in which it operates. The leading position has been confirmed by the placement of the Company on the prestigious CSR Index list for companies that stand out by their social responsibility in Serbia and the Virtus award for long-term partnership with the non-profit sector for cooperation with the National Child Line.

"Travelling with Tesla-s Time Machine"

By the artistic project “Tesla's Time Machine” Telekom Srbija marked the 160th anniversary of the birth of one of the most celebrated scientists of all times, Nikola Tesla. Organized by Mtel Banjaluka and mtel Montenegro, unusual 4D projections were screened on the facades of buildings on the central squares of Belgrade, Novi Sad, Niš and Kragujevac in Serbia, as well as in 3 cities in the region - Banja Luka, Herceg Novi and Budva – in which Tesla “personally” showed the spectators his scientific formation, and the process of birth of an idea which later becomes an invention. As a synthesis of art and modern technologies, the Tesla's Time Machine was implemented in cooperation with Aleksandar Protić, the director of the Tesla memorial project and professor at the Sorbonne, one of the greatest connoisseurs of Tesla's character and work, while the concept of a 4D show, based on scientific material, was designed by a young artist Dušan Jovović. Authentic projections, originating from Tesla's memoirs and notes, made it possible for the audience to set on a journey through the unusual life story of the great man from the village of Smiljane who indebted the whole worlds.

The projections of Tesla's Time Machine in the seven cities in the region were seen with delight by over a million people, either live, either through social networks, portals and mts TV. The proof that Tesla's Time Machine, after regional presence, acquired a wider, European audience is the fact that it was chosen among the five best projects at the European “Excellence Awards” competition for the outstanding achievements in the sphere of communication in the Science and Education category. Tesla's Time Machine was also awarded a silver plaquette of the Serbian Market Communications Association in the best corporate event category. During the year of marking the jubilee, apart from Tesla's Time Machine, screenings of an educational film about Nikola Tesla were organized for the youngest audience at the Duško Radović Children's Theater. The film acquaints children in the best way possible with Tesla's inventions and his contribution to the modern way of life.

„mts startup acceleration“

Telekom Srbija has intensified its support for technological entrepreneurship in Serbia by launching a program entitled “mts startup acceleration” which envisages tutor support, cloud service, Internet and a monetary reward of EUR 20,000 for the three selected startups. The Company developed and launched this program in cooperation with the non-profit association SEE ICT, which has been successfully organizing the Startup Academy, an educational platform for entrepreneurship teams in the sphere of information and communication technologies (ICT) for five years. Telekom Srbija, namely, shares the commitment of the SEE ICT association, to through its programs by the year 2020, train 100,000 IT experts who will develop their business solutions in the country, so that the Company also supported the work of Startit Center by the introduction of the necessary telecommunications infrastructure. In this way, Telekom Srbija wishes to offer an additional incentive to the local startup community and entrepreneurs, who are willing to compete with their innovative products on the global market. The “mts startup acceleration” program is intended exactly for the entrepreneurs who attend the Startup Academy, while the monetary part of the award will be shared between up to three teams who make the greatest progress during the Academy. Apart from the allocation of the monetary reward to the startups in order to accelerate their entry on the market, mts will provide all participants of the Academy mentors and relevant lecturers in certain spheres. The Company previously supported the opening of Startit Centers, also in cooperation with the SEE ICT organization in which educational programs for entrepreneurs and meetings with possible investors from the country and abroad are held. In order to allow as many participants as possible to access these programs, the Company opened its centers in Belgrade, Inđija, Novi Sad, Majdanpek, Vršac, Zrenjanin and Valjevo.

„mts app competition“

Telekom Srbija has been organizing the mts app competition for the creation of applications for mobile devices since 2011, with the aim of contributing to informal forms of education, the development of entrepreneurship spirit among the youth and connection with the main activity of the Company. The sixth competition cycle was published in June 2016. the students of mathematical and IT high schools in Senta, Novi Sad, Belgrade, Sremska Mitrovica, Šabac, Valjevo, Kragujevac, Kraljevo, Požega and Niš. A team of employees in the Company visited the high schools in these cities and acquainted the students with previous experiences, the idea and terms of the competition, which, apart from a large number of schools, allowed the possibility for students to program applications not only in the Android™ operating system, but also in iOS-u. According to the proposition of the competition, in the process of decision making, the jury valued the idea, the complexity of the solution – the manner of implementation, independence in the creation, functionality and the general impression, and an outstanding innovativeness in the category for the special award “The power of innovation – Igor Osmokrović”. The important encouragement for the students were certainly the awards – smart mobile phones, tablets and iPhones, while the winners of the competition received a visit to the World Mobile Telephony Congress in Barcelona as an award. The sixth mts app competition was won by a team of students of the IT High School in Belgrade, and the “Walkie Talkie” application which makes it possible to use a mobile phone as a walkie talkie through a LAN network or a mobile hotspot, in situations and in places where it is not possible to use the phone in the usual way. The success of the mts app competition is shown by the fact that since 2011, during six competition cycles, 1,700 students have become acquainted with the idea of the competition, 86 teams have presented 90 applications, of which the best were placed on Google Play. The competition was presented on the website of the European organization CSR Europe as an example of good practice.

„Responsible approach toward mobile phone radiation“

The “Choose How You Communicate” socially responsible campaign of Telekom Srbija whose aim is the education of citizens about the sources of electro-magnetic radiation, continued with the educational activities intended for high school students and students as advanced users of mobile phones. At the Modern Management Academy organized by the ESTIEM student organization from the Belgrade Faculty of Organizational Sciences, the interested students are given advice on how to minimally expose themselves to mobile telephony radiation. This was at the same time an opportunity to present the results of the Lexnet scientific project, which provided a scientific base for this socially responsible project. Another lecture intended for young people was held at the Belgrade Student Cultural Center where students and pupils of various educational profiles had the chance to hear everything they wanted to know about the mobile network from employees in the Company and representatives of the Faculty of Electric Engineering in Belgrade. Apart from the relevant ministry of trade, tourism and telecommunications, the Faculty of Electrical Engineering is a partner of Telekom Srbija on this project. All the information about mobile telephony radiation can be found on the website of the “Choose How You Communicate” campaign on www.kakokomuniciras.rs, and on the social networks where interesting video content and polls related to this topic are posted..

„Telekom Srbija and UNICEF for the youngest“

Within the cooperation program between UNICEF and the Ministry of Health Care, dedicated to the improvement of children's development in early childhood, Telekom Srbija donated didactic materials to the development consulting centers of the Health Care Centers in Subotica, Sremska Mitrovica and Kruševac. The sets contain 32 elements each which pediatricians, psychologists, speech therapist, special needs educationalists and other health care workers and associates will be able to use for checking and encouraging certain skills in children's development. Improving cooperation with UNICEF, the Company activated the humanitarian SMS number 9656 for help and support to programs that UNICEF is implementing in our country. The users of the mts network can via an SMS message determine an amount of 100 or 200 dinars which will each month be automatically redirected to the account of the UNICEF office in Serbia, with a possibility to at any time cancel the service with a free SMS message. In this way, the users of the mts network become members of the UNICEF Friends Club, a community of regular donors connected by their dedication to improving the conditions for the growth and development of children in Serbia, as well as other programs that this organization is implementing in Serbia with the aim of quality and inclusive education, appropriate social protection, and the social inclusion of marginalized children and adolescents. In 2016, the Company organized the participation of employees in the traditional UNICEF Fair Play tournament in basketball, at which the Telekom Srbija team won the first prize in the competition of 24 other companies. Thanks to the funds raised from registration fees for the participation in the tournament, aid was provided to the functioning of the Parent Telephone Line (0800 007 000) – a free service which allows parents expert help in overcoming everyday problems in children's upbringing.

„Youth and education“

As a responsible partner of the community, the Company pays special attention to projects in which the youth and education have a crucial place. When it comes to formal education, the Company helped procure the procurement of computers and IT equipment and thus improved the educational process in a large number of elementary and high schools in Serbia and created better conditions for the adoption and development of knowledge. During 2016, Telekom Srbija continued its long-term cooperation with the Mathematical High School in Belgrade, the school of a special national importance. Apart from participation of high school students in the mts app competition, cooperation is reflected in support for the attendance and participation of students in international competitions in mathematics, physics and information science. In this way, young talents from Serbia are connected with talents from other countries and able to follow world achievements in science, which is aimed at improving the quality of education. Cooperation between the Company and the Mathematical High School defines the modern approach to preparations and attendance of students at international competitions at which they become the true ambassadors of knowledge and represent their country abroad in a dignified manner. The students of the Mathematical High School had the chance in 2016 to participate in several international competitions – the KAMAChallenge tournament in Perm, the Open Championship in Programming in the Republic of Tatarstan in Russia and the Zhautyukov Olympiad in Kazakhstan. Telekom Srbija also helped the holding of the summer mathematical camp in Šabac and Tulba near Požarevac, which were open for young talents in the sphere of mathematics.

„Support to informal education“

Apart from investment in formal education, one of the priorities in the social responsibility of Telekom Srbija is investment in the informal forms of education. Young and educated people represent a very important link in the progress of society and having this in mind, the Company is trying to support the organizations and projects that share these values and allow pupils and students to acquired knowledge and experience that will be useful to them in their careers in an easier and more successful way. Telekom Srbija has a yearlong practice in cooperation with student organizations. In 2016, the Company supported the holding of two big events of the student organization ESTIEM from Belgrade's Faculty of Organizational Sciences – Case Study Show and the Academy of Modern Management. Employees of the Company take part in the preparation and implementation of lectures, within the seminar. They try to convey to the students the experiences and practice from the business environment and thus allow them to prepare better for their future employment and work in companies. A conference of ESTIEM's local office in Novi Sad, at which the results and action plans of this association were presented, was also held with the support of Telekom Srbija. As an additional encouragement to pupils and students from the capital, who are exception in scientific and creative work, Telekom Srbija supported the activities of the Regional Talent Center from Belgrade. During 2016, within long-term cooperation with the Youth Achievement organization, which develops student entrepreneurship, a great national finale of the Business Challenge program in Belgrade, was held thanks to the Company's support. In order to draw the public's attention to the importance of the protection of the environment and educate the public in relation to this topic, a “Little School of Ecology” was organized in cooperation with the Center for the Popularization of Science from Kladovo. The Company also enabled the establishment of an ecological workshop in Bor, Brestovac, Donji Milanovac, and a camp in Boljevac, intended for the promotion of healthy life styles for children and youth without parental care.

„Investment in health care and improvement of living conditions“

Continuing the tradition of investing in healthcare, Telekom Srbija joined the Blic Foundation campaign – “Heart for the Children” and provided the donation of three devices for early diagnosis of hearing impairment in newborns, for birth centers in KC Vojvodina, Kragujevac and Aranđelovac. The previous year, this device was provided for the maternity ward of the General Hospital in Subotica, so that support for the Blic Foundation campaign is the continuation of the Company's activities with an aim to allow the youngest patients in Serbia to get the necessary and quality health care. The donations for the procurement of the necessary medical instruments, equipment and the improvement of the work conditions were provided for a large number of health care institutions, among which are the Special Hospital for Cerebral and Vascular Diseases ''St. Sava'', the Serbian Institute for Oncology and Radiology, the General Hospital in Ćuprija, the General Hospital "Stefan Visoki" from Smederevska Palanka, the Health Care Centers in Kragujevac, Sopot, Petrovac na Mlavi, Batočina, etc. A donation was paid to the National Association of Parents of Cancer-Stricken Children- NURDOR to cover a part of the expenses for building a new hemato-oncological ward within the Clinic for Children's Internal Diseases in Niš, and traditionally, the Company supported the activities of the Center for Palliative Care and Paliative Medicine-Belhospice. In 2016, the Company made it possible to send children treated for cancer on rehabilitation through the Humanitarian Organization “Friend in Need”, and holiday for inmates of the Home for Children and Youth “Duško Radović” from Niš, the Home for Children and Youth with Developmental Difficulties “Veternik” from Novi Sad and the SOS Children's Village from Kraljevo. With the support of the Company, an info line was launched for the parents of children with special needs, who are, or will be included in inclusive education, and the “Parental Line”, through which parents can get advice on how to deal with the challenges they are facing in the process of young people's upbringing.

„FROM THE HEART Association“

The humanitarian association of employees in the Company called “From the Heart” has been active for a number of years and primarily deals with voluntary blood donation, but its activities have been expanded to other activities that concern a wider community: providing social aid to vulnerable groups, children without parental care and the provision of humanitarian aid in emergency situation. This humanitarian network connects more than 1000 members who are active in raising awareness on the importance of blood donation, organ donation and the protection of the environment. In 2016, 1,600 blood units were connected in 22 towns in Serbia, in cooperation with the Serbian Blood Transfusion Institute, the Military Medical Academy, the local transfusion services, state institutions and other enterprises. The employees' association “From the Heart” performs its humanitarian activity with pride believing that its actions contribute to strengthening human ties within a society.

„Support to projects in the sphere of culture“

Given the fact that fostering the right values in culture is of true importance for the identity of a people, Telekom Srbija, as a large national company, tries to make a significant contribution to the community in this sphere. Each year the aim of the Company is to enrich and increase the library funds, so that editions adjusted for the elementary school age were provided for twelve schools in Serbia, including two schools in Kosovo and Metohija. Young children, along with the older ones, were told that it was necessary that they take care of their language and tradition through the activities within the Foster the Serbian Language project, which the Company has supported for a second year in a row. Support was provided to numerous traditional evens, such as Nušić Days, Actor Festival “Milivoje Živanović”, Zmaj Children's Games, Children's October Salon and others. The Prince's Serbian Theater from Kragujevac awarded Telekom Srbija a Medallion featuring Joakim Vujić for support to developing the work of the oldest theater in Serbia, while a recognition in the form of a Plaquette for extraordinary merits in the program activity was granted to the Company on the 138th anniversary of the Kolarac Endownment. During the cooperation with this institution which has lasted for almost two decades, Telekom Srbija has supported a hundred concerts from the Music's Great Personages cycle, two concert seasons of the Kolarac Your World of Music cycle and many other ceremonies that the Endownment has organized. Telekom Srbija emphasizes with great pride its support to the exhibition entitled Pupin – From Physical to Spiritual Reality. Due to a large interest of the audience, the duration of the exhibition was extended twice. The exhibition, which thanks to the use of modern technologies and augmented reality, made a breakthrough in Serbian museology, was visited by almost 74,000 people, and over 533 guided tours were organized for pupils and students of elementary schools, high schools and faculties, and for the students and pupils from abroad.

„Sports and youth“

As a responsible corporate player, Telekom Srbija tries to simultaneously with investing into younger generations, in cooperation with partners and well-directed campaigns, contribute to the development of the sports spirit and fair play among youth. The company is very proud of its cooperation with and support to the Women's Basketball Movement Marina Maljković where it is possible for the girls of elementary school age to practice basketball according to the program of Marina Maljković, foster a good relationship with their friends and coaches and prepare for the equally important “school of life” which awaits them, completely free of charge. The training sessions of the Women's Basketball Movement are adjusted to the age of the girls and they are held at seven schools in Belgrade, and in a high school in Požarevac. The number of girls who are joining the training sessions of the Movement is continually increasing, which is another proof that the partnership is on the right path and strengthens the common commitment to investing in fostering healthy life habits and sports. Within the Radivoj Korać Cup, Telekom Srbija organized a humanitarian campaign in which a donation was made to the young citizens of Niš for each point achieved in the tournament in the amount three euros in the dinar counter value. Seven matches were played at the Čair hall at which a total of 1,098 points were scored and a donation was thus provided in the amount of EUR 3,294. In addition, the students of the schools for whom the donation was intended had the chance to try out their basketball skills, and it was decided to add the points scored in this way to the number of points scored in the official matches. Thus, the total amount of the donation reached EUR 4,000 and it was evenly distributed among the following institutions in Niš – the “Bubanj” Special School, the “Mara” Social Protection Insitution, the “Duško Radović” Home for Children without Parental Care and the “14 October” Special School for Elementary and High Education. A third “Sports Festival” organized by the Holy Serbia Orthodox Sports Society, which Telekom Srbija supports, had the characteristics of a big family gathering, because it gathered a large number of children and their parents through participation in a sports and entertainment program. Since this event is intended primarily for them, the children had the chance to try out numerous sports skills and take part in the competitions organized for them. This traditional event gathered many public personages, and a large number of volunteers who gave their contribution to the implementation of the event. The story about life and work of Nikola Tesla served as the inspiration of the third Sports Festival, which is why a video projection of the multimedia project of Telekom Srbija, Tesla's Time Machine was screened. During the two-day festival, the event gathered over 30,000 children and their parents, while children from the village of Pasjane in Kosovo and Metohija were special guests.

„Protection of the environment“

The task of all of us, and especially the large corporations is to not only make their contribution to society, but also to responsibly, conscientiously and intelligently use their resources, invest in sustainable development and in that way give back to society and the community. In accordance with this, Telekom Srbija and its related legal entities, as active and responsible members of society, respect the law and the generally accepted ethical principles of doing business and reject and condemn the forms of illegal and inappropriate behavior to achieve business objectives, which the company achieves only by the quality of products and services. When it comes to the external public, Telekom Srbija and its related legal entities make sure that the market, suppliers and the public be informed about the Company's activities respecting fair competition, because it is in the interest of both the company and its customers and shareholders. Telekom Srbija undertakes measures for the protection of the environment by adopting ecologically oriented technologies and methods with an aim to reduce the negative impact on the environment. During the performance of its activities, the company takes care of aspects of environmental protection, such as rational consumption of energy, prevention of waste, proper disposal of waste material and its recycling. By investing and installing the most up to date telecommunication technologies the company contributes to the implementation of pure technologies and technologies which consume less power, and emit less noise as compared with the devices used in previo8us decades. Telekom Srbija generates various kinds of waste, which is properly disposed according to the legal regulations. The Company has concluded contracts for the purchase of hazardous and non-hazardous waste with 28 companies authorized for this kind of activity. During 2016, the company disposed of 716 tons of waste, of which 199 tons of hazardous and 517 tons of non-hazardous waste, which is 55 % less waste generated than in 2015.

The noise emitted into the environment is mostly created by air conditioning chillers installed in the Company's facilities. If it is suspected that the level of noise emitted into the environment is higher than legally prescribed values, measurements are undertaken. In 2016, noise was measured in two locations and the allowed noise level was not exceeded due to the application of new technologies. The emission polluting substances in the air (flue gases as the products of combustion in boiler rooms) is regularly measured in 16 boiler rooms and the prescribed values are not exceeded. The electro-magnetic radiation emitted into the environment mostly comes from mobile telephony radio-base stations. Before installing a base station, a study of its impact on the environment is done which contains all the technical data and protection measures for the said base station. Upon obtaining approval of the study on the assessment of impact on the environment, the base station is launched into operation. There are regulations and standards which regulate the permitted level of radiation. The level of radiation is measured before the first commissioning of equipment, and if there is a complaint to the radiation level by a third party, an institution is engaged to measure the level of radiation. According to the Law on the protection from non-ionizing radiation, the measurements of the level of electro-magnetic radiation of radio-base stations are done every two years. The Company has never exceeded the permitted radiation level so far. In 2016, the measurement of the level of non-ionizing radiation was performed on 628 base stations, on 332 locations. There is a total of 57 base stations which were declared sources of radiation of special interest (depending on their location) and they are to be measured every two years. Against the imported electronic and electrical products which become the special flows of waste after use, the Company paid a fee in the amount of RSD 6,426,723, and these funds will be used for the improvement of environmental protection.