Post on 18-Mar-2016
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1 About the report .................................................................................page 01
2 Company profile .................................................................................page 02
2.1 Message from the President ..............................................page 02
2.2 Mission, vision and values .................................................. page 03
2.3 The organization ................................................................. page 05
2.4 Corporate governance ........................................................page 07 2.4.1 The Ethics and Sustainability Committee ........................page 08
3 A Message from the Director of Business Strategy ..........................page 08
4 Awards ...............................................................................................page 08
5 Social performance ............................................................................page 10
5.1 Code of Ethics ......................................................................page 10
5.2 Internal public .....................................................................page 11
5.2.1 Remuneration and benefits..............................................page 13
5.2.2 SHealth and welfare .........................................................page 14
5.2.3 Training and updates ........................................................page 15
5.3 Society .................................................................................page 15
5.3.1 Starts With You (SWU) – Começa Com Você ................... page 16
5.3.2 Clients ...............................................................................page 18
5.3.3 Suppliers ..........................................................................page 20
6 Environmental performance ..............................................................page 21 6.1 Consumption of materials and waste management ..........page 22
7 Economic performance......................................................................page 23
7.1 A Message from the Financial and Operations Director ....page 24
7.2 Sector parameters ..............................................................page 25
8 Indicators ...........................................................................................page 27
8.1 The 10 Principles of the United Nations Global Agreement ..page 28
8.2 Cross-indexed GRI index and Global Agreement ................page 29
9 Credits ................................................................................................page 31
Sustainability Report 2010 | The Whole Grupo Totalcom
1 About the report (3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.8, 3.10, 3.11)
Grupo Totalcom, a leader and pioneer in integrated communication in Latin America, has the pleasure of publishing its first report on sustainability for the year 2010, in response to the need to consolidate and promulgate the development of the theme of holding company management.
The company is notable for being the first in the Brazilian publicity sector to publish its socio-environmental performance.
Preparation of the report has been guided by Global Reporting Initiative (GRI) methodology and is classified at Level C in the application of its directives.
It is to appear annually but only relates to holding companies operating in Brazil. Grupo Totalcom follows the principles of the United Nations Global Agreement – to which it is a signatory – as a management reference for sustainable activity and as a guide in drawing up this report.
2 Company profile
2.1 A Message from the President (1.1)
The whole character of Grupo Totalcom is that it is a pioneer. The integrated communications platform developed by the group, Comunicação Total®, represents our ongoing desire to create individual solutions for individual businesses. This continued desire to move forward three years ago brought a new topic to our strategic discussions - sustainability. We began the search for an innovative way of acting around the theme – which was still practically unexplored within the communications sector – and this search has continued, culminating in the publication of this our first report on sustainability.
As part of this process, important action was taken internally, like the formation of the Ethics and Sustainability Committee, drawing up of a Code of Ethics and updating our Mission, Vision and Corporate Values, as well as our commitment to adopting and promulgating the Principles of the United Nations Global Agreement.
In 2010 Grupo Totalcom began to take a more active role, making socio-environmental awareness a key element in our work. This new vector of our performance culminated in the creation of Starts With You (SWU) Movement – Começa com Você, which organized a number of actions throughout the year. With the aim of continuing our aim of increasing awareness about sustainability, both among our clients and in society in general, SWU is planning several important projects. We are hoping to form a joint venture with a North American university about business enterprise, with the aim of creating projects in line with the concept of sustainability, replicating overseas the successful Sustainability Forum, which took place in Itu (São Paulo) during the SWU Festival. We also intend to follow up with this model in Brazilian universities. You could say that there are two Grupo Totalcom, before and after sustainability became a central plank of our day-to-day business. Habits and ideas developed over the years are now part of our strategy as a whole and we intend to continue looking for new ways and forms of increasing people’s awareness of sustainability.
Eduardo FischerGroup Chairman and President of the Strategy Committee.
01 | Sustainability Report 2010 The Whole Grupo Totalcom | 02
2.2 Mission, Vision and Values (4.8)
In 2010, as part of the process of redefining the direction we wish Totalcom Group, to take, the Sustainability Committee updated its Mission, Vision and Values.
MissionTo devise and implement strategic, integrated strategies, which create added value for our clients across the whole range of their business, by working with the top specialists in the different fields of marketing, such as ethics, synergy, creativity, market intelligence and profitability for both sides.
VisionTo become globally recognized as one of the most effective integrated communica-tions groups, which is capable of finding unique solutions which, most importantly, the client needs in their business.
ValuesWe like people who are intellectually restless and curious, creative and innovative, who love what they do, who have a sense of responsibility, who are always willing to learn and, most of all, can think in a multidisciplinary way and have a proactive approach.
03 | Sustainability Report 2010 The Whole Grupo Totalcom | 04
05 | Sustainability Report 2010 The Whole Grupo Totalcom | 06
This platform structure of the business refers to 2010, the period covered by this report. In 2010 we expect this platform to change.
2.3 The organization (2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9)
Founded in 1997 Grupo Totalcom was the brainchild of Eduardo Fischer, who wanted to create a communications business that was more rounded, synergic and profitable, by bringing together under one roof a number of specialized companies in a variety of disciplines.
While never ceasing to promote homegrown talent, the company was the first communications holding based in Brazil, to become international, with offices on three continents. Grupo Totalcom, which was a pioneer of integrated communication in Latin America, has its own operations in Brazil, Argentina, Portugal and Angola and has working partnerships all over the world.
By the end of 2010 – when the BG company ceased to operate – the group’s services had become divided into five main areas:
• TotalAd: integrated communication; advertising and commercial intelligence.
• Total On Demand: Promotional marketing and events; trade marketing; data intelligence; incentive marketing and loyalty programs; relationship marketing; agribusiness; direct marketing; customer relationship marketing (CRM) – management of client relationships; corporate awards systems; business-to-business (B2B); design and packaging; digital marketing and solutions.
• Total.con: content, entertainment and licensing.
• TotalTendências: marketing activation, strategic consultancy and trend analysis.
Acting as a holding provider, Totalcom has an active and strategic role, offering all the support necessary to the companies under its control for them to be able to keep their focus on the client’s business.
Grupo Totalcom, is noted for its creativity and boldness, which is why it created Comunicação Total®, a different way of approaching integrated communication, which requires changes in ways of thinking and behaving. Extending the idea of integrated communication as a unification of action, Comunicação Total® was born from the idea of a coming together of a variety of professionals in order to solve a problem, by looking at the whole productive chain in such a way that it may be fully understood in all its aspects, thereby creating a solid and relevant concept, which is capable of motivating the desire to purchase at every point of contact a brand has with its potential customers.
This model, which is so much part of the history and culture of the company it has become a trademark, sees executives not just as publicists, but as multidisciplinary communications professionals. It is an approach that creates more effective, dynamic communication geared towards results and producing greater productivity.
B
RAND+
SALE = TOTAL RESULT
INTE
GRAT
ED COMMUNICATION INTEGRATED MARKETIN
G
ACQUISITION+LOYALTY+RETENTION=TOTAL ACTIVATION
STRATEGIC CONSULTANCY = TOTALVISION CONTENT+PROXIM
ITY = TOTALE
XPER
IEN
CE
CONTENT
MONITORING AND MARKETING
ACTIVATION
ANGOLA
PORTUGAL
Entertainment
Experience
Total.Con
Internet
Games
TotalTendências
3 A Message from the Director of Business Strategy
The principles of sustainability are at the center of our values and now since 2010 that they are key part of our business strategy, we have been making a number of efforts to change some of our working practices, as well as making use of our own skills – providing integrated communication – to make people and organiza-tions around us, co-workers, clients, partners and suppliers and the public at large, more aware of them.
For the latter we created the movement SWU, Starts With You, whose aim is to encourage ordinary people to think and act sustainably in their everyday lives. We start from the principle that sustainable practice is a long-term work in progress that depends not only on us, but on everyone with whom we come into contact.
Antonio FadigaAssociate and Director of Strategy and Business.
4 Awards (2.10)
In 2010 Grupo Totalcom and its president, Eduardo Fischer, featured strongly in communications and marketing awards ceremonies, especially one of the group companies, Fischer + Fala!.
Eduardo Fischer
• International Marketing Executive 2010 for the Marketing Professionals award of the magazine, Marketing, of Editora Referência;
• Personality of the Year with the Grand Prix of the Caio Prize, for his creation of SWU;
• IX Ecotourism & Climate Justice Award, by the magazine Ecoturismo;
• A Motion of Congratulations for the SWU movement, passed by the Council of the Tourist Resort of Itu;
• Nominated for Top Blog 2010.
07 | Sustainability Report 2010 The Whole Grupo Totalcom | 08
2.4 Corporate Governance (4.1, 4.2, 4.3, 4.4)
The way we see corporate governance in Grupo Totalcom is directly linked to the application of ethics in all market activities and strategic actions. It is a private holding company with an administrative structure that includes an Executive Board, made up of the following:
• Eduardo Fischer: Group Chairman and President of the Strategy Committee;• Nelson Turini: Financial and Operational Director;• Antonio Fadiga: Director of Strategy and Business.
We try to ensure that all the organization’s personal and commercial relationships are marked by respect and transparency. In pursuit of this principle, an Ethics and Sustainability Committee was set up, to ensure that the three cornerstones of sus-tainability, environmental, social and economic – are always to the fore in all Grupo Totalcom’s activities.
2.4.1 The Ethics and Sustainability Committee
Founded in January 2010, the Ethics and Sustainability Committee of Grupo Totalcom is made up of executives in the areas of Finance, Law, Purchasing, Corporate Com-munication and the Director General of the holding companies. It is chaired by the Financial Director, who reports directly to the Group President and meets fortnightly to discuss matters relevant to how company management can follow the principles of sustainability.
Central among its functions is analysis and strategic evaluation of how best to plan investment, training and socio-environmental programs . It is also the committee’s function to oversee the implementation of the manage-ment of sustainability within the company, reporting market communications and representing it at events, forums and awards ceremonies, and in the media and channels of communication dedicated to the subject.
In 2010, the Ethics and Sustainability Committee was responsible for the standards laid down in the holding company’s Code of Ethics, jointly with a specialized consult-ant. It was especially concerned with Human Resources and Purchasing policy and is at present responsible for the maintenance of ethical standards in the day-to-day running of the companies within the group.
5.1 The Code of Ethics
In 2010 Grupo Totalcom drew up its own Code of Ethics Under the responsibility of the Ethics and Sustainability Committee, this initiative was designed to reinforce the group’s commitment to act ethically in line with its established val-ues and in accordance with the principles of socio-environmental responsibility.
All co-workers should be familiar with the Code of Ethics, which is designed to help and guide staff about the rules, ethical standards and behavior expected by the Group. It is therefore a tool to be used to ensure that decisions and choices made by co-workers reflect the principles and values of the company and reaffirm the rela-tionships it wishes to foster with those it deals with.
5 Social performance
Social issues are a key area for Grupo Totalcom management and we wish to show through its actions our concern for a variety of segments of the public. In order to establish that the company had ethical standards, in 2010 the Ethics and Sustain-ability Committee drew up two policies to guide the company in its relations with staff and suppliers.
• Human Resources Policy: to assure co-workers that all they rights under labor law human rights would be respected;
• Purchasing and Supply Policy: all suppliers are informed of company criteria when contracts are drawn up.
09 | Sustainability Report 2010 The Whole Grupo Totalcom | 10
Fischer+Fala!
• Named as on of the best places to work among communications agencies by Great Place to Work, of all major companies in this sector, it was the only one to receive this recognition;
• Among independent agencies is one that has received most awards.
5.2 Internal public (LA1, LA2, LA4)
Grupo Totalcom’s relationship with its staff is based on the principles of the organi-zation, as expressed in its Code of Ethics, Mission, Vision and Values. The Group considers it vital to encourage the progress of its staff, valuing their abilities and helping them to find personal satisfaction in their work. As well as following all Brazilian national legislation, trade union agreements and accords with other bodies, the company also meets all legal requirements, norms and conventions in relation to the working environment that are applicable to its ac-tivity. We maintain an open dialog with trade unions and 100% of Grupo Totalcom’s co-workers – whether in Fischer+Fala!, Totalcom or TOD subscribe to collective negotiating agreements. It should be pointed out here that the high rate of turnover of staff is a feature of the industry as a whole and does not reflect dissatisfaction with conditions of work on offer.
It is the methodology of Human Resources management to divide company staff into three groupings – Fischer-Fala!, Totalcom and TOD and all sub-groups will fall into one or other of these groupings, with the exception of
BGI, whose data do not form part of this report.
Recognition
FischerFala!, an agency of Grupo Totalcom, was elected one of the top 15 Best Companies to Work For by Great Place to Work, a global company which spe-cializes in the working environment.
Of all the major communications agencies in Brazil, it was the only one chosen in this survey – which evaluates workers’ level of satisfaction with their working en-vironment, the level of confidence in relationships between workers and manage-ment and best practices of personal management.
11 | Sustainability Report 2010 The Whole Grupo Totalcom | 12
Staff by gender
48% 52%Women Men
Rate of turnover of staff per company in the Group
30,92%
51,43%
20,00%
Fischer+Fala! TotalcomTOD
Staff by age range
5,12%
42,73%52,13%
Over 50 Between 30 and 50 Under 30
Distribution of co-workers per company in the Group
61,96%
8,54%
Fischer+Fala! TotalcomTOD
29,48%
5.2.1 Remuneration and benefits (EC3,EC5,LA3)
Grupo Totalcom maintains a policy of competitive salaries in line with the market and in addition offers benefits above those required by national labor legislation. We see this as one of the principal reasons for the high levels of satisfaction shown by our co-workers. All staff, whether part- or full-time, are offered the same benefits. We are constantly looking for ways to make life better for our employees and we offer medical assistance, dental plans, life insurance, meals, transport and parking vouchers, the non-profitmaking Help Me Fund (a personal loan at 0% interest to help staff in emer-gencies), a Program to help learn Foreign Languages (PAPAI) and educational courses (CDF). The last two are only available to employees of FischerFala! and Totalcom.Because of the high turnover of staff which is a feature of the sector as a whole, the company does not offer a pension plan as a benefit.
5.2.2 Health and Welfare (LA6)
One of Grupo Totalcom’s first principles is that the working environment should be safe and healthy and promote the physical and psychological well-being of its staff. In line with this principle, in 2010 the group subscribed to a Health Campaign (OMINT), a partnership with a healthcare plan offered to co-workers, who were invited, along with their dependents, to fill in individual health reports to provide an individual profile. The campaign include a Healthcare Week, offering blood pres-sure and weight checks, height and Body Mass Index, digital measurement of blood sugar and cholesterol levels and waist measurement. This helped staff get a good overview of their personal health. This action also served as a tool to help Grupo Totalcom have a better understand-ing of its co-workers’ health profile and helped plan improvements in life quality and encourage healthy lifestyle choices. As a result of this commitment to provide a proper working environment, in 2010 there was not a single case of work-related sickness or injury among the staff of Grupo Totalcom. Because of the number of co-workers and third parties per unit, the company does not have any formal health and safety committees, which are not obligatory under current legislation.
13 | Sustainability Report 2010 The Whole Grupo Totalcom | 14
Fischer+Fala!
735
510
Totalcom
1,140
510
TOD
900
510
Comparison between the minimum wage offered by the company and the local minimum wage
The company minimum wage
Minimum wage as of 31 December in local currency
Proportion of the minimum wage offered by the company and the local minimum wage
Fischer+Fala! 1.44
Totalcom 2.35
TOD 1.76
5.2.3 Training and Updating (LA10)
Part of Grupo Totalcom’s strategy is to invest in its human resources. It is con-stantly therefore seeking to keeps its staff up-to-date by sending them on courses, to lectures and workshops and sending representatives to the Cannes Festival. In 2010, there were 77 hours of such activities, divided up among different categories of co-worker. Of the benefits on offer to complement professional development, two in particular are worth mentioning:
• Papai – Foreign Language Learning Program - The company subsidizes these courses in English and Spanish for participating co-workers. They are available to directors, managers or any co-worker who has an immediate or short-term need to use a foreign language in the course of their work. The sub-sidy should be recommended by a senior manager and approved by the Executive Director of the company (CEO).
• CDF – Educational Courses – The company encourages and provides financial assistance to those who wish to attend courses related to their field of activ-ity within the company. Assistance is available to co-workers who are hired in accordance with the Joint Labor Laws (CLT) of Brazil, who have worked for the company for more than a year, who need further education, independent of their role within the company and who receive a salary up to that laid down in a spe-cific contract. This subsidy must also be approved by a senior manager and the company CEO.
• FF University – This is a FischerFala! initiative to promote regular presentations, talks, analysis of trends and case discussions among staff. The aim of these meet-ings is share knowledge and information and encourage agency co-workers to try out new ideas.
5.3 Society
Support for society is also a key element in Grupo Totalcom’s sustainability practices. As a result, the company has become involved in various kinds of voluntary work with various institutions, principal among which we would like to mention are The Association for Mentally Handicapped Children (AACD), Community Action (Ação Comunitária), The Friends of Children with Rheumatism (Acredite), Citizen Agent (Agente Cidadão), Eco Future Institute (Instituto Eco Futuro), The International Union for the Protection of Animals (Uipa), Literary Corridor (Corredor Literário), The Institute for Children with Heart Problems and Ten Yad.
5.3.1 Starts With You (SWU) – Começa Com Você (SO1)
One of the biggest movements on behalf of sustainability was launched by Grupo To-talcom in partnership with the company The Groove Concept. SWU – Starts With You Launched in 2010, the movement, which is the first of its kind in the country, aims to make people more aware of ways they can introduce sustainable practices and values into their everyday life and shows how truly committed the company is to environmental, social and economic questions. Through it media activities and internet portal, SWU has already had an impact on a great number of people in Brazil and 149 other countries. In October 2010 the first celebration of public involvement in the movement took place - the SWU Music + Arts Festival. The event used music as the principal means of getting through to people about the cause of sustainability and was attended by 165,400 people. Taking place in Itu, in the interior of São Paulo, the festival included musical attractions, art displays and a Global Sustainability Forum, which was watched by 546,000 people during its live transmission on the SWU internet portal. The following data may give an idea of how big this event was.
Following Grupo Totalcom’s commitment to communicate the values of sustainability as widely as possible, a report was drawn up at the beginning of 2011 on SWU 2010 which was checked by GRI and rated Level C. For more information about the move-ment and the report, go to www.swu.com.br
* South Africa, Germany, Argentina, Belgium, Botswana, Brunei, Chile, Colombia, Costa Rica, Denmark, Ec-uador, Spain, USA, France, Guatemala, United Kingdom, Israel, Italy, Mexico, Norway, Oman, Peru, Portugal, Russia, Uruguay and Venezuela.
15 | Sustainability Report 2010 The Whole Grupo Totalcom | 16
Some figures for SWU
TOTAL AUDIENCE (ESTIMATED)
BRAZILIAN STATES THE AUDIENCE CAME FROM
COUNTRIES THE AUDIENCE CAME FROM
MUSICAL ATTRACTIONS
MUSICIANS
STAGES
AUDIENCE ATTENDING THE SUSTAINABILITY FORUM (ESTIMATED)
SPEAKERS AT THE SUSTAINABILITY FORUM
NUMBER OF FOLLOWERS AND FANS ON FACEBOOK, TWITTER AND ORKUT
NUMBER OF YOUNG TREES PLANTED TO COMBAT CO2
SOLID WASTE RECYCLED
ORGANIC WASTE
ENERGY CONSUMED
WATER CONSUMED
NUMBER OF TRASHCANS DISTRIBUTED AROUND THE EVENT
NUMBER OF DRINKS CANS 100% RECYCLED
ASHTRAYS DISTRIBUTED
MAINTENANCE TEAM
TRIAGE CENTER TEAM
SUPPLIERS
REFUSE COLLECTION CO-OPERATIVES EMPLOYED
WORKERS FROM CO-OPERATIVES BENEFITTING
WORK SHIFTS DONE BY CO-OPERATIVES
TOTAL TURNOVER OF THE TWO CO-OPERATIVES
165,400 PESSOAS
27
26*
74
700
4
3,900
29
150,000
8,333 áRVORES
30 TONS
560 KG
12,290 KVA
210,000 LITERS
2,000
700,000
29,000
9,000 PEOPLE
90 PEOPLE
91 COMPANIES
2
133
513
R$ 24,448.24
The survey also analyzed which services advertisers regarded as most valuable. Here also the service offered by FischerFala! was seen by clients as being of the highest quality and once again they placed the agency above average in every category - Cre-ative Efficiency, Quality/Price ratio, Good service, Strategic Planning, Original Creativ-ity, Media Purchasing, Creativity in the Media and Production Quality. Some outstand-ing points are shown in the following graphic.
5.3.2 Clients (PR5)
One of Grupo Totalcom’s achievements in 2010 was the result of a survey carried out by Agency Scope/ Grupo Consultores into how different clients evaluated their communications agencies. Fischer+Fala! got better than average evaluations in all the areas covered – Strategy Research, Integrated Vision, Proactivity, Concern for the Business, The Agency as a Business Partner, Involvement of Senior Manage-ment, Honesty and Innovation.The way it stood out against others can be seen from the following graphic.
SWU Disseminators (4.14, 4.15)
Before one the biggest movements on behalf of sustainability could go global, the co-workers of Grupo Totalcom had to be fully involved. In a move to disseminate the concept of SWU among its own staff, the group launched an internal campaign, offering informa-tion and tips on how to reduce material consumption. Not only did we have this specific objective, the campaign also wanted to make people more aware of the changes in attitude that would be necessary but which everyone could achieve, both at and outside work.The day began with a launch event, headed up by the President of the Group.
Evaluation of Fischer+Fala! and its market communication by its clients
17 | Sustainability Report 2010 The Whole Grupo Totalcom | 18
Source: Agency Scope / Grupo Consultores 2010.
Strategic research Involvement of Senior Management
Concern for the Business
The Agency as a Business Partner
100 100
78 79
100
8089
72
An innovative agency
78
60
Fischer+Fala! Clients
Market advertisers
Evaluation of the services most valued by clients of FischerFala! and other communications agencies
Clients’ evaluations are of fundamental importance to Grupo Totalcom, to the extent that, at the end of 2010, the company’s Strategic Nucleus set in motion a qualitative survey to measure public satisfaction. Its results may be in the next company report on sustainability. Grupo Totalcom believes that this initiative will not only strengthen its relationship with clients but also help us to improve the services we provide by bringing them closer to what is expected of us.
5.3.3 Suppliers (HR6, EC6)
Grupo Totalcom’s relationship with its suppliers is defined by its Supply and Purchas-ing Policy, which lays down criteria for hiring. The way we do this must be in line with Brazilian national labor legislation and respect collectively negotiated agreements and the Group expects suppliers to have the same ethical, responsible standards that it expects of itself, especially in relation to the health and safety of workers employed. Wherever possible Grupo Totalcom tries to keep in mind local conditions and hires local suppliers, provided their quality and prices are in accordance with Group policy. Today sup-pliers account for 80% of the value of company purchases. Grupo Totalcom does not permit the use of child labor in any aspect of its busi-ness. When images of children are to form part of any ad piece circulated, the registered supplier must ensure that all legal safeguards have been met.
19 | Sustainability Report 2010 The Whole Grupo Totalcom | 20
Good client service
7870
Media purchasing
89
72
Production quality
89
72
Fischer+Fala! Clients
Clients of the 12 main agencies
Source: Agency Scope / Grupo Consultores 2010.
6 Environmental performance (EN4, EN5, EN26)
Grupo Totalcom shows its concern for the environment at every moment of its day-to-day business. Starting with its management and co-workers, the company is constantly looking for ways to reduce the consumption of materials and natural resources and cut waste. The Group’s monthly energy consumption is 46, 806 kWh and measures are being taken to reduce this amount – such as replacement of older energy inefficient refrigerators with newer low energy models, changes in the configuration of computers, which are the com-pany’s main working tool, so that they use less energy when in use. Another initiative in this direction, which FischerFala! has already carried out and is to be extended to all compa-nies in the group, is to change the lighting of meeting rooms to use the Light-Emitting Di-ode (LED) type which is more energy efficient. In 2010 we carried out two simple initiatives, which nevertheless has a big environmental and economic impact • Disposable cups were replaced by squeezes and mugs, which were given out to all organization staff. This move cut out the use of 47,500 disposable water cups and 9,600 disposable coffee cups a month. Apart from the environmental effect, this action will save the company R$ 12,813.60 a year; • Also, water filters were installed in all company buildings, which allowed us to discontinue the use of plastic bottles and containers, thus saving us R$ 15,660 a year.
6.1 Consumption of materials and waste management (EN22)
The Grupo Totalcom Purchasing team is continually preoccupied with the con-sumption of materials. All members of the team are expected to choose products with the least environmental impact whenever possible. Part of the department is also responsible for buying materials on behalf of clients. In this case, although they do not have the final say, the team can give advice and offer options which are in line with the Group’s sustainability principles, such as using paper with the For-est Stewardship Council’s stamp (FSC). Waste is always sorted at every Grupo Totalcom location and sent to the correct recy-cling destination. What cannot be recycled is sent to be composted or otherwise safely disposed of. Batteries are also sent for recycling and co-workers may bring in items for recycling if they wish.
*This estimate is based on the number of bags (with storage capacity in liters) in
which waste items were placed prior to disposal)
21 | Sustainability Report 2010 The Whole Grupo Totalcom | 22
Waste collected and respective destination
Light bulbs
Type
192 items Decontamination and recycling
Decontamination
Recycling
Recycling
Recycling
Recycling
Decontamination
Public collection
Quantity Method of disposal
Reactors 10 items
Paper 28,800 liters*
Plastic 7,000 liters*
Metal 7,000 liters*
Glass 5,000 liters*
Batteries 900 liters*
Organic waste 84,000 liters*
7 Economic performance
Considering the importance and respect in which Grupo Totalcom is held by the market, I think it can be said that since 1981, when it consisted only of the Fischer publicity agency, the steps it has taken and the economic progress it has made have been in the right direction. The company has established its position as one of the major communications groups and was the first multinational of Brazilian origin in the sector, with opera-tions around the world. Its business success is largely due to good management, which has certainly been recognized by the market, and in the excellent relation is has with its stakeholders. 2010 was a year of great achievement for the Group, One of which was the imple-mentation of one of its most ambitious projects, which resulted in the formation the content and entertainment platform,Total.com. In its very first role, this new business unit, conceived, structured and put in place the SWU Movement and the SWU Music and Arts Festival, which brought together art and sustainability and is already con-sidered one of the major festivals in Latin America. Also in its first year FischerFala! achieved significant growth as a result of good management of its revenue sources, and careful monitoring and control of expenses.
23 | Sustainability Report 2010 The Whole Grupo Totalcom | 24
7.1 A Message from the Financial and Operations Director
Sustainability has been a formal element in the management of Grupo Totalcom since January 2010, when we set up our Ethics and Sustainability Committee. And this is our guide to the strategic direction in which we wish to travel, defines policy, investment, programs and company action. Two months after the Committee started to meet, we became signatories to the United Nations Global Agreement, in a pioneering initiative among Brazilian com-munications groups in the field of publicity. The Global Agreement established guidelines for business conduct in the areas of human rights, labor relations, the environment and combat against corruption and our support for it is one more proof that sustainability is the path along which we intend to follow.
Nelson TuriniChief Financial Officer (CFO) and Chief Operations Officer (COO)
25 | Sustainability Report 2010
7.2 Sector parameters
2010 was notable for the worldwide expansion of publicity, propelled to a large extent by Latin America. A survey by consultants Nielsen of the period January to June 2010 compared to the same period the previous year found that media invest-ment in Latin America had gone up 44.5%. In Brazil growth reached 50.2%. Analysis of publicity spending in the country revealed that investment was still being made in a range of communication channels, especially television as a mass medium.
The Whole Grupo Totalcom | 26
Total spent on publicity in Brazil (US$ millions)*
Adverti
sing
$ 12,000
$ 10,000
$ 8,000
$ 6,000
$ 4,000
$ 2,000
$
Newspapers
*Estimated
Magazines
Televis
ionRadio
Cinema
Outdoor
Inte
rnet
2009
2010
2011
27 | Sustainability Report 2010 The Whole Grupo Totalcom | 28
8. Indicators
8.1 The 10 Principles of the United Nations Global Agreement
Principle
1
2
3
4
5
6
7
8
9
10
Subject
Human Rights
Human Rights
Workers’ rights
Workers’ rights
Workers’ rights
Workers’ rights
Environmental protection
Environmental Protection
Environmental Protection
Anti-corruption
Support, respect and protect human rights as agreed internationally Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence
Avoid any involvement in human rights abuses Make sure they are not complicit in human rights abuses
Defend freedom of association and effectively recog-nize the right to collective negotiation Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Eliminate all forms of forced or compulsory labor
Effectively eradicate child labor
Eliminate discrimination in the workplace
Companies should act preventatively to meet envi-ronmental challenges
Companies should take initiatives to promote greater environmental responsibility
Companies should encourage the development and wider use of sustainable environmental technology
Business should combat corruption in all its forms, including extortion and bribery
Description
The Whole Grupo Totalcom | 30
8.2 8.2 Cross-indexed GRI index and the Global Agreement (3.12)
29 | Sustainability Report 2010
GRI INDICATORS GLOBAL AGREEMENT PAGE
1 Strategy and analysis
1.1 Statement by the Director - President page 02
2 Organizational Profile
2.1 Name of the organization page 052.2 Main brands, products and/or services page 052.3 Operational structure of the organization page 052.4 Location of the organization’s head office page 052.5 Number of countries in which the organization operates page 052.6 Type and legal status of the organization page 052.7 Markets served page 052.8 Size of the organization page 052.9 Principal changes relating to size, structure and shareholder participation page 05
2.10 Awards received page 08
3 Report Parameters
3.1 Period covered by the report page 013.2 Date of the previous most recent report page 013.3 Cycle of reports issued page 013.4 Contact data in case of queries about the report or its content page 313.5 Process whereby the report’s content is decided page 013.6 Limits of the report page 01
3.7 Statement concerning any specific limitations concerning the scope or extent of the report page 01
3.8 Basis of the report relative to other factors which could significantly affect comparability between periods and/or other organizations page 01
3.10 Explanation of the effects of any changes in presentation of information provided in previous reports
page 01
3.11 Significant changes in comparison to previous years in terms of the scope, limitations and methods of quantification used in previous reports
page 01
3.12 Guide to the location of information within the report pages. 29-30
4 Governance, Commitments and Involvement
4.1 Structure of governance of the organization page 07
4.2 Indication whether the president of the highest body of governance is also an executive director page 07
4.3For organizations with a unitary administrative structure, declaration of
the number of independent or non-executive members of the highest body of governance
page 07
4.4 Mechanisms whereby shareholders and employees can make recom-mendations or offer guidance to the highest body of governance
page 07
4.8
Statements of mission and values, codes of conduct and internal princi-ples relevant to economic, environmental and social performance and the
stage their implementation is at. Explain to what extent they:
• they are applicable to the organization in different regions and departments/ units;
• they relate to internationally agreed standards.
page 03
4.14 The relationship of shareholder groups involved in the organization page 17
4.15 Basis for identification and selection of stakeholders with those with whom they are involved
page 17
ECONOMIC PERFORMANCE
EC3 List of obligations and benefits that the organization’s pension plan contains.
page 13
EC4 Significant financial support received from the government. In 2010 the Group received no financial support from the government
EC5 Comparison of the proportion of the lowest salary offered by the company with the local minimum wage in important operational units. Principle 1 page 13
EC6 Policies, practices and proportion of expenditure with local suppliers in important operational units
page 20
ENVIRONMENTAL PERFORMANCE
EN4 Indirect energy consumption by source of primary energy Principle 8 page 21
EN5 Energy saved as a result of improvements in conservation and efficiency. Principle 8Principle 9 page 21
EN22 Total weight of waste, by type and method of disposal Principle 8 page 22
EN26 Initiatives to reduce the environmental impact of products and services and plans to further reduce the same.
Principle 7Principle 8Principle 9
page 21
SOCIAL PERFORMANCE | LABOR PRACTICES AND DECENT WORK
LA1 Total number of workers by type of employment, labor contract and region
page 11
LA2 Total number and rate of turnover of employees by age range, gender and region. Principle 6 page 11
LA3 Benefits offered to full-time employees which are not offered to tempo-rary or part-time workers, by main type of work carried out. page 13
LA4 Percentage of employees covered by collective negotiated agreements. Principle 1Principle 3
page 11
LA5 Minimum period of prior notification of operational changes, including whether specified in collective negotiated agreements. Principle 3 Not applicable to the company.
LA6Percentage of employees represented on formal health and safety com-
mittees, made up of managers and workers, who help to monitor and advise about occupational health and safety programs.
Principle 1 page 14
LA9 Subjects relating to health and safety covered by formal trade union agreements. Principle 1
This subject does not form part of the collective trade union agreement.
LA10 Average number of training hours per year, per employee, by category of function.
page 15
SOCIAL PERFORMANCE - HUMAN RIGHTS
HR3Total hours training for employees in policies and procedures relative to aspects of human rights relevant to operations, including percentage of
employees who have received training
Principle 1Principle 2Principle 3Principle 4Principle 5
Not applicable.
HR4 Total number of cases of discrimination and measures taken. Principle 1Principle 2Principle 6
The company has no cases of discrimination
HR6 Operations identified as carrying a significant risk of being carried out by child labor and measures taken to assist in the abolition of child labor.
Principle 1Principle 2Principle 5
page 20
SOCIAL PERFORMANCE - SOCIETY
SO1Nature, scope and effectiveness of programs and practices of evaluation and management of the impact of operations on communities, including
setting up, operation and exit. page 16
SOCIAL PERFORMANCE - PRODUCT RESPONSIBILITY
PR5 Practices relevant to client satisfaction, including results of surveys which measure this.
page 18
PR7Total number of cases of failure to conform to regulations and voluntary codes in relation to marketing communication, including publicity, pro-
motion and sponsorship, by type of result.
None recorded in 2010.
PR9 Monetary value of (significant) fines for failure to comply with laws and regulations relating to supply and the use of products and services.
None recorded in 2010.
GRI INDICATORS GLOBAL AGREEMENT PAGE
31 | Sustainability Report 2010
9. Credits
General Coordination The Ethics and Sustainability Committee
Supervision of GRI technical methodology and editorial Sustainable Vision José Pascowitch, Carolina Besse, Paula Zendron and Karina Simão
Editing and Revision Carolina de Paula
Graphics Project Grupo Totalcom
PhotosGrupo Totalcom Archive
If you have any queries or suggestions about this report, please contact: (3.4) Jamila Srikhi Telephone: 011 37041534 e-mail: jamila@fischerfala.com.br
Address for correspondence: Rua Leopoldo Couto Magalhães Jr., 758 –18° andar, Itaim Bibi, CEP 04542-000, São Paulo, Brasil
Website: www.totalcom.com.br