Release of 16.12.2013
- State-of-the-art Compliance Management Systems is now certified
- PwC issued audit report in accordance with the German IDW Audit Standard 980
- Targets for 2013 were successfully met
Vienna, 16 December, 2013 - Over the past two years, the Telekom Austria Group’s Management Board has adopted numerous measures aimed at the further development of a group-wide Compliance Management System and the compliance certification of the company’s comprehensive compliance-related structures and processes. “We were able to implement a state-of-the-art Compliance Management System across the Group and have it certified by an independent auditor. All critical issue areas within the company, ranging from gifts and invitations, sponsoring and consulting services up to antitrust and capital market law, underwent thorough scrutiny during the auditing process,“ said Hannes Ametsreiter, CEO Telekom Austria Group and A1.
Positive Audit Report, No Improvement SuggestionsThe scope of the audit encompassed the Telekom Austria Group and all of its major operating subsidiaries in Central and Eastern Europe. The audited companies account for 98% of Group’s total revenues. Both the conception and implementation of compliance measures were subject to the audit. In addition, the effectiveness of the system during normal operations was reviewed within the framework of a six-month audit phase. Concrete business cases from different corporate areas were chosen on a random basis and analyzed and assessed in accordance with the IDW criteria.
The auditing and tax advisory company, PwC, issued a favorable audit opinion with no comments, i.e. with no improvement suggestions. The audit report states that with regard to anti-corruption/integrity, capital market compliance and antitrust law, the company’s Compliance Management System has been accurately designed and implemented in all material aspects. The report confirmed that the system is in line with all relevant legal provisions as well as with the Business Principles for Countering Bribery issued by Transparency International in 2009. The represented principles and measures are therefore best suited to identify and prevent the risk of major violations with reasonable assurance and in a timely manner. The audit manager, Jörg Busch, partner for Compliance and Risk Services at PwC, summarized his thoughts on the successfully finalized certification process: “In our opinion, crucial success factors for an effective Compliance Management System within a company include the full commitment of the management, an effective compliance organization, a comprehensive communication system and the embedding of all compliance measures into the operating procedures of a company. During the audit, all these requirements were met."
Certification in Accordance with the German IDW Audit Standard 980The Telekom Austria Group’s Compliance Management System was certified in accordance with the German IDW Audit Standard 980. This standard defines the main components of a Compliance Management Systems. In addition to document and IT inspections, a total of roughly 150 qualified interviews were conducted amongst the company’s workforce over a period of 15 months.
The documentation provided by PwC for all three certification phases (conception, implementation and effectiveness) encompassed approximately 7,500 pages. Martin Walter, Compliance Officer of the Telekom Austria Group, said: “External certification of our Compliance Management System was our top priority for this business year. We were able to reach this goal, which required a tremendous amount of time, personnel and material resources, thanks to the support of the numerous colleagues involved in the process. For the near future, the focus will be on the optimization of regular compliance operations and the further sustainable embedding of the integrity concept into daily business practices.“
Integrity Culture as a Natural MindsetWith the appointment of Martin Walter as Group Compliance Officer in November 2011, the go-ahead for the implementation of a new compliance management at an international level was given. Martin Walter reports directly to the Management Board but works independently and free from any instructions or directives. Today, the Telekom Austria Group can rely on a system that substantially consists of two core elements, prevention and reaction. To date, compliance measures have been firmly embedded into all corporate areas.
“Over the past two years, we have accomplished a great deal and set clear signs for the company’s visibility both internally and externally. However, it is now of crucial importance that the adopted compliance measures are really ’lived out’ throughout the Group. Integrity as a natural mindset has to become habitual across the board, from top management to all employees,“ said Hannes Ametsreiter, defining the goals for the continuation of the Compliance Management System going forward.
The fact that compliance provides greater clarity was clearly deemed positive by the company’s workforce as demonstrated by the annual employee survey.
The report of the independent auditor and the description of the Compliance Management System are available for download
here.
