Full Report describing Telstra\’s corporate responsibility achievements and commitments

1. Telstra Corporate Responsibility Report 2009

2. Telstra’s corporate
responsibility reporting
Our corporate responsibility (CR) performance against publicly
reporting comprises this stated planned actions from our
publication, 2008 report and on the issues
the Telstra 2009 Corporate material to our business and
Responsibility Report, as well as our stakeholders.
CR website. The reporting covers Telstra CR website - Our CR
Telstra’s economic, social and website provides full details about
environmental contributions and our approach and activities in
performance during 2008/09, and is 2008/09. A section on Reporting &
intended to provide comprehensive Performance provides access to
information to the full range of our full range of benchmarking,
Telstra’s stakeholders. social and environmental reports.
Our reporting covers the You can use our Global Reporting
2008/09 financial year for the Initiative (GRI) Index to navigate our
Australian operations of Telstra CR website and report. Visit www.
Corporation Limited (excluding telstra.com.au/cr.
Sensis, Telstra’s information Our reporting has been
and advertising business, unless developed with reference to
otherwise specified). A full account the Global Reporting Initiative
of the corporate responsibility (GRI) G3 Guidelines and the
performance of telecommunications sector
Sensis can be found at supplement, and this year applies
www.about.sensis.com.au. the GRI Framework
Telstra 2009 Corporate to a level C (self declared).
Responsibility Report - This
publication focuses on our
Feedback on our reporting is welcome. Please email Nancie-Lee Robinson,
Senior Advisor, Corporate Responsibility, at cr@team.telstra.com
Printed on Stephen Chilled White by Spicers Paper

3. CEO MESSAGE
CEO Message
To focus our efforts in 2009/10, I have
established a senior level Corporate
Responsibility Council to guide our
corporate responsibility strategy. The
strategy focuses on areas critical to the
success of our business and to Telstra’s
standing as a good corporate citizen.
For the first time, we will be announcing
ambitious, long term targets to drive our
performance in key areas – customer
Since my appointment to the position satisfaction, carbon emissions and
of CEO in May 2009, I have reflected employee engagement. We aim to make
on the incredible work that has been Telstra a company people enjoy doing
done by our people every day. Despite business with, as well as a great place
challenging macro-economic conditions, to work.
we have achieved strong results for fiscal Our seventh corporate responsibility
2009 and we continue to get on with report outlines the services we deliver
the job of providing the nation with the to all Australian communities and
next generation networks and services our contribution to the national and
that are the foundation for social local economies. It shows that Telstra
inclusion, economic growth, productivity takes its social and environmental
improvement and sustainable responsibilities very seriously and
prosperity. provides a comprehensive account
As a company that touches the lives of Telstra’s progress against planned
of millions of Australians every day, actions to improve our performance
we have an important responsibility to during 2008/09.
act ethically and responsibly in all that This report is evidence of Telstra’s
we do. Every single thing we do has an ongoing commitment to our customers,
impact on our company, our customers, shareholders, employees and the
our shareholders and the nation. We communities in which we operate and I
want to make sure that our every welcome your feedback – please contact
effort counts. us at cr@team.telstra.com.
David Thodey
Chief Executive Officer
November 2009
1

4. Contents
1. CEO message 23. Disaster relief
24. Digital inclusion
3. Performance summary
27. Performance and
2008/2009 commitments
4. Ethics and governance 28. Employee engagement
5 Corporate responsibility
29. Human capital development
governance
31. Promoting diversity
6. Material issues
33. Health and safety
7. Stakeholder engagement
34. Mental health and wellbeing
9. Economic impact
35. Performance and
10. Human rights
commitments
11. Suppliers
11. Performance and 36. Climate change
commitments 37 Greenhouse gas emissions
40. Resource efficiency and waste
12. Impact of
42. Employee engagement
telecommunications
44. Using ICT to drive sustainability
13. National broadband network
45. Performance and
13. Next generation networks
commitments
15. Productivity
17. Mobile phones and health 46. Community
18. Base stations and investment
electromagnetic emissions 47. Telstra Foundation
18. Cyber safety and security 48. Sponsorship
19. Performance and 50. Volunteering
commitments
52. Performance and
commitments
20. Customer service
21. Keeping Australia connected
21. Improving customer
satisfaction
2

5. PERFORMANCE SUMMARY 2008/2009
Performance summary 2008/09
Performance indicator 08/09 07/08 06/07
Financial
Sales revenue $25.4 billion $24.7billion $23.7 billion
EBIT $6.6 billion $6.2 billion $5.8 billion
Profit after tax and minority interests $4.1 billion $3.7 billion $3.3 billion
Ordinary dividends (cents per share) 28 28 28
Socio-economic
Total workforce 43,181 46,649 47,840
Total domestic workforce (includes Sensis) 31,662 33,982 35,706
Wages and salaries $4.1 billion $4.2 billion $4 billion
Local, state and Commonwealth taxes $1.8 billion $1.7 billion $1.8 billion
Dividends to shareholders $3.5 billion $3.4 billion $3.4 billion
Accrued capital expenditure $4.6 billion $4.9 billion $5.9 billion
Community
London Benchmarking Group (LBG)* measure of community investment $65.2 million $32.2 million # $18.8 million
Employees
Employee engagement N/A** 74% 73%
Women in management roles 27% 24.6% 25.8%
Lost time injuries frequency rate (per million hours worked) 2.14 2.54 2.14
Effective Health Safety & Environment (HS&E) audit results 44% 71% 88%
Learning & development investment $104 million $75 million $60 million
Learning & development investment per employee $2,800 $1,626 $1,500
Environment
Greenhouse gas emissions (tonnes CO2e) 1,515,188 1,500,803 1,390,306
Greenhouse gas emissions (tonnes CO2e/ $million revenue) 59.4 60.4 N/A
Total waste recycled (tonnes) 18,746 32,981 33,266
% Waste recycled 62% 69% 65%
Total energy Use (GJ) 5,869,006 6,064,687 5,848,601
Total energy Use (GJ)/$million revenue 230.1 244.3 247.1
Volume of office paper (reams) 190,696 220,856 256,774
Volume of paper (reams) per employee 6.0 6.5 7.2
Water savings (kilolitres) 12,017 52,019 87,318
* Valuation includes cash, time, in-kind support and management costs for contributions made in Australia.
# The figure reported in our 2008 CR Report ($38.4 million) included Sensis’s contributions. This has been amended here to exclude Sensis and to be consistent with 2007 and 2009 reporting.
** An EES was not conducted in 2008/09. The next EES is planned for 2009/10.
3

6. Ethics and governance
Telstra is committed to acting ethically
and responsibly in all that we do.
Will Irving
Telstra Group General Counsel
Q&A
Q: Why has Telstra established a Q: Why does reputation matter? by how they seek to be part of the
Corporate Responsibility Council? solution to key social and environmental
A: It is important to us that Telstra challenges.
A: We are keenly aware of Telstra’s is a good corporate citizen, because The connection between investment
position in Australia - a company that companies that behave ethically, treat potential and corporate responsibility
in some way touches nearly every their people well and contribute to the is demonstrated by the emergence of
Australian, every day. Our day to day communities in which they operate, investor-led sustainability initiatives,
business is a vital thread in Australia’s are companies that people want to be such as the Carbon Disclosure Project,
economic and social fabric. Therefore, a associated with - whether as customers, Dow Jones Sustainability Index and
commitment to the highest standards of employees, suppliers or shareholders. FTSE4Good, and of socially responsible
corporate governance, transparency investment funds.
and stakeholder engagement is of Q: How does Telstra’s social and As a major business enterprise, Telstra
critical importance. environmental performance impact on has a responsibility to our shareholders,
The Corporate Responsibility Council, shareholders? employees, customers and to the nation
comprising ten of Telstra’s group to continually improve the performance
managing directors, will guide and A: With rising concern in the broader of our company and its businesses. By
govern the company’s corporate Australian community about things like doing this in a responsible way, we also
responsibility strategy. The strategy climate change, water management, foster prosperity in the industries and
is organised around seven key areas, an ageing population and the global communities in which we participate.
and for the first time, ambitious and financial crisis, the role of businesses
long-term targets will be set to improve in society is receiving more attention. I
our performance and enhance our think there is increasing recognition that
reputation. the investment value, profitability and
risk profile of companies is influenced
4

7. ETHICS AND GOVERNANCE
Corporate responsibility governance
Telstra’s commitment to corporate responsibility begins with a simple and Material issues
straightforward commitment to principled decision making in all that we do. In determining our material issues, Telstra
considered the significant economic,
Telstra’s commitment to corporate responsibility begins with a simple and straight- environmental and social impacts of
forward commitment to principled decision making in all that we do. From a principled our business that may affect our value,
perspective, Telstra’s primary corporate responsibilities are to increase shareholder operations, reputation and longevity. We
value and advance shareholder interests by: considered the following key internal and
external factors:
Telstra’s business strategy and
providing customer service that meets the company’s corporate responsibility
core competencies;
the expectations of our customers and strategy, an area of increased focus in
wins their continuing loyalty; 2009/10. The Corporate Responsibility Telstra’s company values, code of
Council, comprising ten of Telstra’s Group conduct, business principles and
providing our employees with good
Managing Directors, will have a cross corporate responsibility principles;
jobs at good wages;
company view of Telstra’s corporate
significant risks to the company
providing good stewardship of responsibility performance and activities.
and critical factors for ensuring
the environment and technology The Council will report to Telstra’s CEO on
Telstra’s success;
solutions that enable others to do a quarterly basis. The first meeting of the
the same; Council was held in August 2009. key future challenges for the
telecommunications industry;
providing access to communications
Reporting and benchmarking issues raised through the
for those who need it most;
performance
mechanisms we have in place
contributing resources - people,
In 2009, we completed a submission for stakeholder engagement, in
money, technology, products and
to the Dow Jones Sustainability Index particular through our Employee
services - to support the communities
(DJSI), achieving a rating of 80 per cent, Engagement Survey, consumer
in which we operate and the needs of
an improvement of ten percentage surveys, Telecommunications
the larger society; and
points from 2008. This index identifies Industry Ombudsman Report,
advancing the national interest companies that lead peers in managing Telstra Consumer Consultative
by strengthening the capability of risk and leverage upside across Council, media reports and
the nation’s telecommunications the economic, social and customer feedback;
infrastructure. environmental agenda. relevant laws and regulations, for
The Telstra Values, Telstra’s Business In 2008/09, Telstra introduced a monthly example the National Greenhouse
Principles and Company Policies, including e-newsletter, Corporate Responsibility and Energy Reporting System,
the Code of Conduct, set out the practices, Matters, to provide senior Telstra the Energy Efficiency Opportunities
principles and standards of behaviour executives and key external stakeholders Act 2006 and the new Forward
Telstra expects employees and contractors with a regular update on Telstra’s with Fairness industrial
to adopt in performing their work. Together performance as a responsible relations legislation;
they reflect our obligations and underpin corporate citizen.
key future challenges for our
the way we work with our customers, our Telstra has reported annually on its society as identified by social
shareholders, our colleagues, the regulatory corporate responsibility performance and environmental experts,
bodies we deal with, our suppliers and since 2003 through its corporate governments and grass roots
stakeholders in the community. responsibility reports. These reports can community organisations; and
be accessed on our website at www.
Corporate Responsibility Council telstra.com.au/cr along with summary sustainability context, including
reports of our DJSI results, our monthly the Global Reporting Initiative,
In 2008/09, a decision was made to establish Millennium Goals, and United
a senior executive committee to oversee newsletter and a range of other Telstra
social and environmental reports. Nations Global Compact.
5

8. ETHICS & GOVERNANCE
Material issues
Issue Impact Key elements of Telstra’s response
Ethics and Telstra is a company that in some way • The Telstra Values, the Telstra Business Principles and the Company policies
governance touches nearly every Australian every (including our Code of Conduct) provide guidance to all our officers and employees
(p.4) day. A commitment to the highest on appropriate business and ethical behaviour.
standards of corporate governance, • A senior level Corporate Responsibility Council has been established
transparency and stakeholder to provide governance of Telstra’s corporate responsibility strategy
engagement is of critical importance. and activities.
Impact of Telstra recognises the significant • Telstra delivers Australia’s largest and fastest national mobile broadband
telecommunications contribution that telecommunications network.
(p.12) and information and communication • We support our customers to use our networks and ICT to address some of the
technology (ICT) products and services nation’s most critical social issues – social isolation, health service delivery,
make to people’s lives, community education and economic development.
wellbeing, social inclusion, business • Telstra places high importance on effective and responsible management of
productivity, economic development and electromagnetic emissions issues.
global competitiveness. • Telstra works with industry, government, community organisations and internet
users to address online risks and to develop measures that promote online safety.
Customer service Customer satisfaction and service is a • Our Corporate Complaints Group manages our relationship with the
(p.20) critical priority for Telstra and essential Telecommunications Industry Ombudsman, with a focus on reducing the number
for business success. We recognise of escalated complaints.
that not all aspects of the customer • An Employee Complaint Referral Process assists customers known to employees
experience are at the standard our with serious unresolved complaints.
customers expect from us. We need to be • Ideas gathering forums enable Telstra people to harness their extensive insight
honest and transparent with customers into ways we can serve our customers better.
as we work to improve our systems and • A new position, Director Customer Service, has been created to develop and
service. manage a new company-wide program to improve customer satisfaction.
• A Customer Satisfaction Council with senior representatives from across the
business has been established to focus on critical customer experience issues.
• We have developed key service and satisfaction metrics linked to an incentive
scheme for nearly all employees to help drive improvements.
Employee Telstra’s economic sustainability relies • Telstra is committed to providing a safe and engaging work environment for our
engagement on strong employee relationships, which people.
(p.28) can be strengthened with competitive • We have a strong focus on promoting diversity with a company wide Diversity
wages and benefits, and flexible working Council to champion seven priority areas.
arrangements. Our work environments • We have a comprehensive Health and Wellbeing Strategy and invest in health
should foster employee diversity, provide promotion and prevention activities.
safe working conditions, and support
talent acquisition and retention.
Climate change Telstra has a significant opportunity to • Telstra is committed to improving energy efficiency in our networks and
(p.36) mitigate the impact of climate change properties and to adapting our business to reduce our exposure to the direct
by maximising energy efficiency. We are impacts of climate change.
one of the largest owners and operators • Telstra promotes cost-effective ways for customers, industry and organisations to help
of commercial and network properties, reduce their energy use and greenhouse gas emissions by adopting ICT solutions.
we have the largest automotive fleet of • We are working to reduce the environmental impact of our supply chain, and we
its kind, we have over 7,000 suppliers and encourage our employees to reduce their carbon footprint at home and at work.
over 30,000 employees across Australia. • The Climate Change Review Group, comprising senior leaders from across the
company, is responsible for the climate strategy planning and implementation.
Community As a provider of telecommunications and • Each month, Telstra’s Access for Everyone program assists more than one million
investment one of Australia’s largest companies, Australians on low incomes or in financial crisis, to maintain an affordable and
(p.46) we understand the positive impact accessible telephone service.
our business can have on community • The Telstra Foundation, Telstra’s corporate philanthropy program, funds
life and wellbeing. Engaging with the community projects aimed at reducing social and geographic isolation and
communities we operate in provides promoting social inclusion.
valuable insight into the expectations • Our sponsorship portfolio reaches across sport, the arts, the environment, health
and needs of these communities and and welfare and we support business and women in business through the Telstra
how we can contribute. Business Awards and Telstra Business Women’s Awards.
6

9. ETHICS AND GOVERNANCE
Stakeholder engagement
Telstra has a wide range of stakeholder groups and a long history of stakeholder engagement. Consultation and dialogue with
key stakeholder groups helps to gather input and ideas, inform our decision making, strengthen our relationships and build
trust. Telstra makes a genuine effort to engage with and understand its key stakeholders, through both formal and informal
mechanisms. We believe that engagement and consultation helps to better meet customers’ needs, improve customer loyalty,
enhance employee satisfaction, build broader community support and ultimately strengthen shareholder value.
Stakeholder Interests and concerns Engagement methods
All Australians Australians are interested in the full • www.telstra.com – Telstra’s corporate website provides information for
range of Telstra’s activities. customers, shareholders and other interested members of the public on the
latest activities at Telstra and includes public reports.
Communities Communities are concerned about • Telstra Country Wide (TCW) Regional Consultative Forum helps to identify
Telstra operates in access to services and the impact of the communications issues of importance in regional Australia.
communities across our business on local communities. • At a state level, TCW Regional Executive Directors engage with state lobby
the metropolitan, groups and representatives of State government and associated authorities.
regional and remote • At a local level, the TCW Area General Managers engage with key
areas of Australia. Our stakeholders to seek feedback and work proactively to meet local community
communities include needs.
non-government • Our mobile phone base station siting consultation processes help Telstra
organisations. operate responsibly in designing, operating and managing mobile phone
base stations and to minimise their impact on the community.
• The Telstra Foundation engages with community organisations on issues
impacting the lives of children and young people through its philanthropic
grants program.
Customers Our customers are interested in the • Telstra Disability Forum and Disability Equipment Program Consumer
Our customers quality, affordability and accessibility Advisory Group provide mechanisms for consultation on our disability action
include residential of our products and services, and the plan.
consumers, small to privacy and security of their personal • Low Income Measures Assessment Committee provides advice on the
medium enterprises, information and services. ongoing effectiveness of Telstra’s low-income package.
large companies and • T[life]™ shops, Customer Experience Centres, Telstra Mentors and the
organisations and Community Advocacy Program provide opportunities for us to assist our
government. customers to meet their communications needs.
• We undertake ongoing marketing and research to help us understand what
our customers want.
Employees Our employees have a broad range • Employee Engagement Survey provides all employees the opportunity
Telstra’s workforce of concerns, including working to express their views about their jobs, the company and their working
is large and diverse conditions, development opportunities environment.
with over 30,000 and health and safety, as well as • Yabber is a Telstra intranet site that provides employees an opportunity
employees in a wide range of interests in issues to share their personal stories - triumphs, challenges and passions -
Australia. affecting their local communities and with all staff.
environments. • Employee engagement opportunities relating to social and environmental
issues include the Diversity Champion Network, Virtual Women’s Network,
Green.Challenge@Telstra, Enable@Telstra and Spectrum Network.
Government Telstra communicates regularly • Constructive relationships are built and maintained across all levels
Our government with governments on a range of of government by our senior leadership team, Telstra’s Corporate and
stakeholders are commercial, policy, regulatory and Government Relations team and Telstra Country Wide.
at local, state and other matters in the interests of • We are required to work within relevant government legislative frameworks
national levels, from its shareholders, customers and and to report our compliance and performance.
Ministers and leaders employees. • Our Regulatory Affairs team manages Telstra’s relationship with statutory
to department staff. regulators and industry bodies.
• Telstra participates in regular forums and selected events with local, state
and Federal government agencies.
• Telstra’s Enterprise and Government business unit works with government
customers to develop and deliver access to world-class information and
communication solutions.
7

10. ETHICS & GOVERNANCE
Stakeholder Interests and concerns Engagement methods
Industry Industry stakeholders are • Telstra is a member of the key ICT industry groups, including
These stakeholders interested in issues impacting the the Communications Alliance, the Australian Mobile
include information telecommunications industry, Telecommunications Association, the Australian Information
and communication including regulation, market trends, Industries Association, the Internet Industry Association, the
technology (ICT) and consumer protection, and technology Australian Telecommunications Users Group and the Australian
telecommunications and service developments. Interactive Media Industry Association.
specific associations, as • Telstra is a member of the Mobile Carriers Forum that deals
well as sector-specific specifically with social and environmental issues within policy,
associations. regulatory and operational environments associated with the
deployment and operation of mobile phone networks.
• Telstra’s Industry Analyst Relations function strengthens
domestic and global relationships with specialist analysts on
ICT industries and markets.
• Telstra is a member of the Australian Industry Group and the
Business Council of Australia, two of Australia’s major business
lobby groups.
• Telstra is member of the Australian Services Roundtable,
the peak lobby group for the Australian services sector.
Investment community Investors and analysts are concerned • Our annual Investor Day is an opportunity for Telstra to provide
This stakeholder group with the risk inherent in and return a detailed update to the financial markets on the performance of
includes institutional provided by their investment, and the the various business units and on the company’s transformation.
investors and sell-side ability of the company to meets its • The Investor Centre (www.telstra.com.au/abouttelstra/investor) is
analysts. objectives. a dedicated resource for shareholders and potential investors.
• The Investor Relations unit regularly engages with investors
and analysts and co-ordinates meetings for the investment
community with senior management.
Media Telstra is one of the most widely • Telstra engages regularly with the media through our Chief
Includes representatives scrutinised and reported companies in Executive Officer, senior executives, media spokespeople,
from print, radio, TV and Australia. corporate affairs managers and other appropriate officers within
online media. the company to provide information that is in the public interest.
Shareholders Shareholders are interested • Telstra values a direct, two-way dialogue with shareholders
Telstra has 1.4 million in financial returns, company and believes it is important not only to provide relevant
shareholders. performance and governance issues. information quickly and efficiently, but also to listen, understand
shareholders’ perspectives and respond to their feedback.
• Telstra keeps shareholders informed through Annual General
Meetings, an annual report and shareholder updates.
• The Investor Centre (www.telstra.com.au/abouttelstra/investor)
is a dedicated resource for shareholders, providing information
about our share price and financial performance, presentations
and annual reports.
Suppliers Suppliers are interested in secure and • Telstra regularly engages with suppliers throughout and after
Telstra engages with stable relationships with Telstra the sourcing process. Our vendor managers monitor and manage
around 7,000 suppliers Telstra’s commercial relationship with its suppliers and address
each year with total delivery, quality, social and environmental issues.
spending around • The Supplying to Telstra website (www.telstra.com.au/supplying_
$11 billion. to_telstra) provides practical advice to prospective and current
suppliers on supplying to Telstra.
8

11. ETHICS AND GOVERNANCE
CASE STUDY: SOCIAL MEDIA ENGAGEMENT
The communities on social media sites designed to protect the interests of The area hosted a ‘Ready Reckoner’
like YouTube, MySpace, Facebook and employees and the company. calculator allowing visitors to see how
Twitter are growing at phenomenal The 3 Rs ask that when engaging in a much carbon they could save using
rates. This interest extends to social media context employees: be telecommunications instead
companies, including Telstra, which are clear about who they are representing; of travelling.
beginning to use social media tools to take responsibility for ensuring that In September 2009, after four years,
engage with customers, stakeholders references to Telstra are factually correct nearly 4.5 million visitors and over 10,000
and other relevant online communities. and do not breach confidentiality comments from Telstra stakeholders,
Telstra embraces social media as an requirements; and show respect for nowwearetalking was closed. It will be
important tool of corporate and business the individuals and communities they replaced in 2009/10 by an enhanced
engagement. We also encourage our interact with. site that includes new Web 2.0 social
employees to use social media in a In 2008/09, Telstra continued to build media functionality, more video and
personal capacity as a way to reach out its online engagement with a 44 per an increased commitment to listening
and share information and views with cent increase in visitor numbers to its to the views of customers and people
friends and communities. online discussion forum and blog site outside Telstra.
With the rapid growth and application of nowwearetalking. Telstra’s emphasis
social media, Telstra recognised the need on two-way, open communication
to have a policy that ensures employees with customers and stakeholders saw
who use social media, either as part a 64 per cent increase in the number of
of their job or in a personal capacity, comments published in the forum area.
have guidance as to the company’s The forums covered topics
expectations, particularly where the such as broadband, environment
engagement is about Telstra, our and technology.
products and services, our people, our Telstra also successfully launched an
competitors or other business related online news, forum, and blog area called
individuals or organisations. Smarter, Greener, Together to highlight
Introduced in 2009, Telstra’s 3 Rs of Social the benefits telecommunications can
Media Engagement are ‘guardrails’ bring to help deliver a low carbon future.
Economic impact
In designing, developing and implementing communications solutions for our customers, Telstra has a significant impact on the
economy through employment, investment and our supply chain. During the 2008/09 financial year, Telstra’s business activities:
supported 43,181 jobs (total invested $4.6 billion to continue creation of new and advanced business
workforce); the build out of the Next G support and operating support systems
paid out $4.1 billion in salaries and wireless broadband network, in and other investments to transform the
wages; the continued deployment of the delivery of telecommunications services
Telstra Next IP™ network, the in Australia.
paid out $3.5 billion in dividends to
1.4 million shareholders; Financial summary
paid $1.9 billion in Commonwealth,
state and local taxes; 2009 $m 2008 $m Change $m Change %
purchased more than $11 billion in Sales revenue 25,371 24,657 714 2.9
goods and services from around EBIT 6,558 6,226 332 5.3
7,000 suppliers; Profit after tax and minority interests 4,073 3,692 381 10.3
contributed an estimated $16.07 Ordinary dividends (cents per share) 28 28 - -
billion to Australia’s Gross Domestic
Product; and Year ended 30 June 2009. Includes Sensis.
9

12. ETHICS & GOVERNANCE
Human rights
Telstra’s existing policies value and protect human rights.
For example, we promote diversity and with integrity in purchasing goods and the deliberate consent of Parliament.
do not tolerate unlawful discrimination. services and conducting business with While no system is perfect, a legislated
Our company-wide Diversity Council, our vendors. Social and environmental Charter of Human Rights could create a
consisting of six Group Managing considerations in our supplier selection mechanism for this to occur and provide
Directors, champions several diversity and evaluation processes are guided by for greater governmental accountability
priority areas - age balance, cultural our Purchasing Ethics Guidelines and and focus on human rights.
diversity, Indigenous, work-life flexibility, Environmental Purchasing Guidelines.
disability, gender and sexual orientation The role of business in protecting
and gender identity. Our Health, Safety Support of Human Rights Charter human rights
and Environment (HSE) team oversees
Telstra registered its interest in Telstra has encouraged other
our health and safety management
contributing to the development of corporations to join the human rights
system, which is aligned with the
a Human Rights Charter by sending conversation. In our submission to the
requirements of Australian and New
a submission to the Commonwealth National Inquiry into Human Rights,
Zealand standards. We also value the
Attorney General, The Hon Robert at public events and in the media we
provision of a safe, healthy working
McLelland MP, on 23 October 2008. have explained the vital role companies
environment. Rigorously applied,
Telstra’s submission was later lodged play in protecting human rights. We
our occupational health and safety
with the National Inquiry into Human participated in an Australian Charter of
management system incorporates HSE
Rights, and was published on the Rights Roundtable on 19 December 2008
management standards that cater for
Inquiry’s website in February 2009. As and on 7 May 2009, Telstra hosted the
the varying levels of risk that arise across
an organisation that interacts with Human Rights – Join the Conversation
Telstra’s businesses.
millions of customers and shareholders forum in Sydney. Numerous guests
In addition, Telstra seeks to conduct and thousands of employees, we believe attended the event and the keynote
business with companies that also value Telstra has a role to play in the debate. speaker, Hon Catherine Branson
and protect human rights. Telstra’s Our submission suggested that the QC, President of the Human Rights
Business Principles provide a framework removal of basic rights, for whatever Commission, spoke at the forum on
to ensure that we operate ethically and reason, should only be possible with the evening.
10

13. ETHICS AND GOVERNANCE
Suppliers
In 2008/09, Telstra purchased approximately $11 billion in goods and services from around 7,000 suppliers.
The vision for our procurement avoided the consumption of vendors to encourage responsible
strategy is: one way to procure, one approximately 657,783 sheets of business practice. St James Ethics
way to connect with suppliers and paper through the use of online Centre has been funded by the
one company-wide view of Telstra shopping carts, purchase orders Australia Federal Government to
vendor activity. and invoices - an improvement of expand sustainable responsible
We are delivering this through a smarter over 200,000 sheets on the business practice nationwide.
approach to procurement that involves previous year;
partnering with world-class suppliers, worked closely with suppliers to
reducing the total number of vendors reduce the environmental impacts
over the longer term, streamlining our associated with the packaging
supply chain processes, reducing costs of Telstra consumer products
and improving Telstra’s performance in and marketing materials (Telstra
responding to customer demand. is a signatory to the National
We continue to look at new ways Packaging Covenant); and
we can improve the social or
worked with the St James Ethics
environmental impact of our supply
Centre to trial a range of resources
chain. In 2008/09, Telstra:
with small to medium enterprise
Performance and commitments
Report on planned actions 2008/09
Planned actions Progress Outcome
Improve the relevance, transparency and The corporate responsibility site on Telstra’s website has been updated to
accessibility of Telstra’s corporate responsibility include more comprehensive coverage across more aspects of corporate
information on Telstra’s website. responsibility. A Global Reporting Initiative (GRI) Index has been added to 
improve the accessibility of information. See www.telstra.com.au/cr
Introduce feature sections on nowwearetalking Telstra launched an online news, forum, and blog area called Smarter, Greener,
to provide a platform for public discussion and Together to focus discussion on environmental issues. Public discussion and
debate about the environment and the National debate about the National Broadband Network and other issues relevant to 
Broadband Network. telecommunications was encouraged via the Opinion forum on nowwearetalking.
Conduct a review of Telstra’s human rights Review was conducted and opportunities for improvements identified. A human
position and practices to assess performance
against international standards.
rights working group will be established in 2009/10 to oversee progress in this area,
including the development of a human rights policy.

 Achieved Partially achieved  Did not achieve
Planned actions 2009/10
Establish a panel of invited independent experts to provide Telstra’s Corporate Responsibility Council with periodic advice on
key social and environmental issues.
Develop a human rights policy for Telstra.
Launch a new Telstra social media engagement site that includes new Web 2.0 social media functionality, and an increased
commitment to listening to the views of customers. and people outside Telstra.
11

14. I M PA C T O F T E L E C O M M U N I C AT I O N S
Impact of
telecommunications
Our networks provide the nation with a strong
foundation for economic growth, productivity
improvement and sustainable prosperity.
Michael Rocca
Group Managing Director, Telstra Networks and Services
Q&A
Q: How is Telstra enabling the company business customers in Australia are through a suite of technologies.
to deliver world class capabilities and seeing productivity uplifts of up to 30 per Information can be delivered via Telstra
services to its customers? cent in parts of their workforces. networks that link mobile phones,
Our evolution has also included an handheld computers, laptops and
A: Our investment in Australia over the upgrade to Telstra’s Global Operations computer systems. This is backed by the
last four years has provided one of the Centre, and the creation of a Managed superior breadth, speed and coverage
largest, fully integrated national IP Networks Operations Centre, improving of Telstra’s high speed Next G™ wireless
networks in the world - the Next IP™ our response and restoration times. broadband network and Telstra’s Next
network is faster, more secure, is 99.999 IP™ network.
per cent reliable and offers 77 times These technologies enable healthcare
Q: How important are Telstra’s networks
more capacity than the old circuit- professionals to deliver better and faster
and technologies in helping to improve
switched network. service to their patients. For example,
the delivery of health services in
Our single IP-based network has resulted Australia? it is now possible to download patient
in a physically less complicated network information during a home visit, upload
that simplifies service management data-rich medical imagery, access secure
A: Australia is facing significant health
while enhancing network reliability medical databases at the patient’s
challenges, especially in dealing with
and resilience. The services we offer bedside, and connect with a specialist
chronic disease. Financial pressures
through our network continue to via video conference from a remote
are strong, costs are increasing and
improve customers’ quality of life, community.
an ageing population is reshaping
helping to make their professional and our economy. New technologies have Telstra’s completed rollout of fibre optic
personal lives easier and business more a crucial role to play in providing cable to some of Australia’s most remote
productive. affordable care. communities in the Northern Territory
The Next G™ network continues to makes high speed internet access
Telstra is uniquely placed to help
deliver enormous customer benefits available to healthcare centres there
healthcare and medical service
including high-speed broadband, rich and also shows the way of the future
organisations address these challenges
content and video calling. Some of our for Australia.
12

15. I M PA C T O F T E L E C O M M U N I C AT I O N S
National broadband network
In April 2009, the Federal Government announced plans to establish a majority
government-owned company (NBN Co) to build and operate a national
broadband network (NBN).
The Government’s NBN aims to provide long advocated the need for high-
90 per cent of the population with access speed broadband and have engaged
to a fibre to the premise (FTTP) network constructively to help find a solution
that will offer downlink data speeds of that is in the best interests of the
100 Mbps and the remaining ten per industry and the nation, as well as
cent of the population with access to Telstra’s shareholders, customers
a wireless or satellite solution that will and staff. As the Government conducts its
offer downlink data speeds of at least The NBN will be complex and implementation study, Telstra continues
12Mbps. challenging with a wide range of factors to invest in broadband technologies,
The Government will conduct an to consider and its success will require networks and upgrades to provide
implementation study, which is the focus and cooperation of industry. greater coverage and speeds for
expected to be completed by February Our engagement has been driven by our home users and to improve productivity
2010. Telstra supports the Federal commitment to help the Government and service delivery options for our
Government’s NBN vision. We have achieve its NBN vision. business customers.
Next generation networks 5.8Mbps peak network uplink speeds
using enhanced HSPA technology - a
Telstra’s rollout of fibre optic cable to many of Australia’s most far flung world first combination of network
and device with such capability. Actual
communities makes high speed internet access available to remote students,
upload speeds are 550 kbps to 8 Mbps in
health care professionals, and government and business.
upgraded areas*.
Our networks provide the nation with a foundation for economic growth, social Telstra’s continued innovation and
inclusion, productivity improvement, sustainable prosperity and global competitiveness. technology leadership with the HSPA+
upgrade will enable Telstra to continue
to offer an improved mobile broadband
customer experience, despite the
Next G™ network upgrade to HSPA+ to activate enhanced HSPA increased demands placed on the
technology; network by new, bandwidth-intensive
In 2008/09, the Next G™ network has
broken new ground for the wireless in February 2009, Telstra launched services such as video and collaboration
industry, leveraging the advanced the first commercial device rated tools. The first commercial launch of
capabilities of enhanced HSPA+ (High to take advantage of the upgraded the faster mobile broadband device
Speed Packet Access Plus) technology network. The network operates is providing significant benefits in
to evolve the existing network to meet at peak network downlink speeds health care, education and business
next-generation mobile user demands of 21 Mbps. Actual speeds with a productivity, in addition to an enhanced
on our network: compatible device in selected CBD, consumer entertainment experience.
in December 2008, the Telstra metro and regional areas is 550
Next G™ network became the kbps to 8 Mbps1; and
first mobile network in the world in June 2009, Telstra launched
1 Actual customer speeds are less than 21 Mbps and 5.8 Mbps. Speeds vary due to factors such as distance from the cell, local conditions, user numbers, hardware,
software and download source.
13

16. I M PA C T O F T E L E C O M M U N I C AT I O N S
Next G™ network coverage expansion the nation’s fibre optic backbone that
program will greatly benefit from improvements
in health, education, policing and
The existing Telstra network is
entertainment.
experiencing increasing demand due to
the rapid growth of wireless broadband During 2009, an additional 190
usage over the past two years. Each kilometres of fibre optic cable, as well
wireless broadband customer places as five radio systems, will be installed
demand on network resources many by Telstra’s Top End crew to provide
times more than a customer making high speed broadband access to four
a simple voice call. This means that additional island communities.
continued investment in the network
is required. In 2008/09, Telstra invested Australian Rail Track Corporation
communications system
$96 million to build an additional 234
new mobile base stations, expanding Work continues in the $85 million
the breadth and depth of our Next G™ deal with the Australian Rail Track
mobile broadband network. Corporation to develop a new
communications system for the group’s
Ethernet backhaul enablement
national rail network. The new system
program
uses the Next G™ mobile network to
A wireless network needs more than facilitate the safe movement of trains
base stations - it needs a robust, around the nation.
superfast wireline network to connect The project has involved building 76 Next
to. The link between the wireline and G™ base stations in New South Wales,
wireless network is called backhaul and South Australia and Western Australia.
Telstra is enhancing the user experience
Additional infrastructure such as the
for Next G™ customers by investing in
provision of Satellite Private Mobile
Ethernet backhaul to carry all the speed-
Radio systems in 14 tunnels and two
hungry, data-hungry requirements of a
fully redundant data message switches
broadband enabled community.
is complete. The bulk manufacture of 704
Upgrades to approximately 3,000 metro In-Train Computing Environment units is
sites are now complete and the program
expected to commence in early 2010 and
continues to upgrade transmission to
be completed by June 2010. Transition
regional cities and towns as well as to
from the existing train communications
approximately 2,000 rural and remote
system to the new one is scheduled VicSmart broadband network
sites. The program is scheduled to
late 2010.
continue through 2012.
In the latest phase of a multi-million
Enabling ADSL and ADSL2+ dollar project to give primary and
Broadbanding the Top End project
secondary schools across Victoria access
ADSL2+ enablement allows exchanges to high-speed internet, Telstra increased
The $34 million project announced in
to provide faster internet services download speeds on the VicSmart
September 2008 by Telstra, the Northern
to customers. The rollout of ADSL2+ broadband network from four to ten
Territory Government, Rio Tinto Alcan
continues across Australia with an megabits per second. The VicSmart
and the Northern Land Council has
additional 421 Telstra exchanges, network is a partnership between the
seen 800km of optical fibre cable and
offering a further 230,000 homes Victorian Government and Telstra that
associated infrastructure installed from
and businesses high-speed ADSL2+ will ensure hundreds of thousands of
Jabiru to Nhulunbuy in the Northern
broadband, to be upgraded by the end students across the State have the
Territory. As well as the township of
of 2009. Telstra has invested $6.37 million ability, skills and knowledge to excel in
Nhulunbuy, there are now five mainland
in these particular upgrades. the new broadband world.
Aboriginal communities connected to
14

17. I M PA C T O F T E L E C O M M U N I C AT I O N S
Opening of the Managed Network
Operations Centre
Telstra made a significant investment
to build the multi-million dollar
Managed Network Operations Centre
(MNOC). Opened in October 2008, this
purpose-built facility allows Telstra
to provide corporate customers with
even higher levels of service, through a
greater visibility of our enterprise and
government customer networks and of
Telstra’s core network, early detection of
network related issues and much faster
fault detection, isolation and resolution.
Housing the latest technology, the
MNOC offers a range of managed
network services such as monitoring,
managing and maintaining the
equipment and network environments
located at customer sites.
Productivity technology (ICT) investments and those
that are achieving real productivity gains.
In October 2008, Telstra commissioned the first detailed independent body Over the last year, the most important
of research on productivity among 300 leading Australian business and ICT investments were those that have
government organisations. improved workforce access to common
resources and information within offices
The research was undertaken to help identify and deliver productivity improvements and across workplaces. Investments
to our customers. The outcomes of this research are captured in The Telstra in ICT are also seen as having
Productivity Indicator, a report on business attitudes towards improving productivity in contributed to staff training and process
Australia and a white paper: ICT as a Driver of Productivity. The research found that: improvements.
Despite today’s tough economic
climate, Australian organisations
78 per cent of large organisations leaders in technology adoption are optimistic about increasing their
say improving productivity is a high apply hard productivity metrics productivity. Telstra’s series of Next
priority; and known targets, whereas only Generation Services, including unified
45 per cent of technology followers communications, security, mobility
51 per cent of large organisations
do so; and applications, contact centre solutions,
do not actually measure
productivity or have clear 43 per cent of Australia’s largest hosting and storage, are assisting
productivity improvement targets; organisations expect productivity organisations to achieve higher levels of
to increase over the next 12 productivity. Telstra is continuing to help
61 per cent of organisations that business and government to incorporate
months.
invested in communications new digital technologies and related
technologies such as broadband ICT solutions to drive productivity
The Telstra Productivity Indicator
and mobiles say that it has improvements across Australia.
demonstrates a clear correlation
improved their productivity;
between those organisations that To find out more, visit
62 per cent of businesses that are make information and communication www.telstra.com/productivity.
15

18. I M PA C T O F T E L E C O M M U N I C AT I O N S
CASE STUDY – VIRTUAL TRAUMA CARE A REALITY WITH TELSTRA TELEPRESENCE
Telepresence uses Telstra’s Next IP™ care in regional areas no longer This successful demonstration
network and specialised medical have to be transferred hundreds of represents an important step towards
equipment to send and receive high kilometres by ambulance or helicopter realising Telstra’s vision of improving
definition ‘real time’ video images and to metropolitan facilities, which results the delivery of health care services
other data between primary health in delays in treatment and additional and health outcomes in regional and
care providers and medical specialists. costs. Now, medical specialists in rural areas.
In March 2009, Telstra and another city, state or even overseas
telepresence specialist Polycom® can control the high definition camera,
launched ‘real time’ virtual trauma examine and talk to the patient, talk
care machines that will significantly to local staff, get live heart rate and
improve the availability of trauma blood pressure and other vital signs
care in the Loddon Mallee region data, review digital scans and test
of Victoria. These machines can results and watch live endoscopic
be wheeled to the bedside in an video feed.
emergency or intensive care ward, Access to virtual specialists can also
and comprise a mobile wireless video assist emergency wards deal with their
conferencing unit, high definition video heavy load, with a NSW telepresence
cameras, monitors and associated trial revealing that up to half of people
equipment – all connected to the seeking medical attention did not need Virtual Trauma Critical Care Unit (ViTCCU),
powerful Telstra Next IP™ network. to be admitted and could be safely Loddon Mallee Rural Health Alliance
Emergency patients requiring urgent sent home.
CASE STUDY – NETWORK IMPROVES INDIGENOUS EDUCATION OUTCOMES AT DJARRAGUN
located 20 kilometres south of Cairns, collaboration. The provision of these
and its sister campus at Wangetti, technologies will allow students and
about 100 kilometres away. The staff to connect with other students
schools cater for around 400 students, and teachers in Australia and around
most of whom are Aboriginal or Torres the world.
Strait Islander. Wireless access to laptops in all
The network will connect the two classrooms and wireless handsets
Djarragun College campuses, providing for all staff will eliminate physical
a virtual single learning environment barriers and provide students, teachers
that will enable the sharing of and administrators with increased
information and collaboration by the access to resources wherever they are
Students at Djarragun College school community. This will support located.
better educational outcomes for Telstra has enhanced the existing
students and help to reduce the need network capacity including the
Cisco and Telstra have deployed for staff to travel between the two installation of optic fibre near
Australia’s first broadband, Unified facilities. Djarragun College and a frame
Communications and wireless network This Unified Communications relay circuit at Wangetti. High speed
to help improve educational outcomes network will help reduce the cost broadband will provide the students
at Djarragun, a largely Indigenous of communications and improve access to a wealth of information,
community in far north Queensland. management and technical support multimedia and rich video content.
Beginning in first term 2009, Cisco from Telstra and Cisco. The network The Djarragun College project was the
and Telstra committed significant will also serve as the platform brainchild of the Cisco Australia and
technical, financial and human for educational innovation at the New Zealand Civic Council, Cisco’s
resources to the network at Djarragun campuses, for example through corporate social responsibility arm in
College, an independent primary the use of WebEX, a system of Australia and New Zealand.
and secondary school in Gordonvale, Internet based ‘real time’ video and
16

19. I M PA C T O F T E L E C O M M U N I C AT I O N S
Mobile phones and health
At Telstra, we want all consumers to have up-to-date and relevant information about
using mobile phones, including all matters of mobile phone safety.
Telstra offers information about mobile phones, mobile technology and electromagnetic energy (EME) on our website.
We take all matters of safety very seriously and only sell mobile phones that meet national and international safety
requirements and standards.
Research into EME, mobile phones remained relatively stable for both men send text messages rather than
and health has been going on for and women.” (IARC World Cancer Report making calls; and
many years now. Telstra relies on the December 2008 p.461)
keep call duration to a minimum.
expert advice of a number of national If you have concerns, there are some
and international health authorities simple steps you can take to reduce To find out more about mobile
including the World Health Organisation exposure to EME from the use of a phones and health visit
(WHO) for overall assessments of health mobile phone: www.telstra.com/eme or email us at:
and safety impacts. eme.enquiries@team.telstra.com.
use a personal or bluetooth hands-
The current advice from the WHO is
free kit, or a speaker phone option
that “the overall evidence available to
to keep mobile phones away from
date does not suggest the use of mobile
the head and body;
phones has any detrimental effect
on human health...” (World Health
Organisation: http://www.who.int/
peh-emf/about/WhatisEMF/en/). We will
provide our customers with updates
from the WHO as they become available.
In reviewing the overall cancer incidence
rates, the International Agency for
Research on Cancer (IARC) stated in
the World Cancer Report late last year:
“After 1983 and more recently during
the period of increasing prevalence of
mobile phone users, the incidence has
17

20. I M PA C T O F T E L E C O M M U N I C AT I O N S
Base stations and electromagnetic emissions
Telstra acknowledges there is some community concern that exposure to low levels of
EME from our telecommunications base stations could lead to adverse health effects.
Telstra places high importance on completed 344 mobile National Site Archive as part of our
effective and responsible management infrastructure projects consisting transparent approach to EME and
of EME issues. In 2008/09, Telstra: of 84 new development telecommunications. This includes
applications and 260 Australian updating the archive to reflect new and
participated in the development
Communication Industry Forum modified sites and site audit outcomes.
of a video released by the Mobile
consultation proposals. Our In 2008/09, Telstra published the
Carriers Forum. The video,
proactive community engagement following updates:
called Mobile Networks in the
programs continued to result in a
Environment, provides details 4,355 Environmental EME Reports;
very low number of complaints.
on base station safety and how
The Australian Communications 3,237 EME Compliance Certificates;
mobile networks are deployed in
and Media Authority confirmed and
the community, including why
that they received two complaints 3,736 Radio Communications Site
base stations need to be built near
regarding Telstra proposals in Management Books.
users (see the video at www.mcf.
2008/09.
amta.org.au/forms/mcf/movie/ Telstra provides detailed EME
slideshow_mID.aspx); and Each year, Telstra publishes information at www.telstra.com/eme.
information on the Radio Frequency
Cyber safety and security
At Telstra, we take our responsibility as a trusted internet services provider seriously.
We work with industry, government, community organisations and internet users
to address the range of evolving online risks and to develop measures that promote
online safety. We are strongly committed to minimising the risks that our customers
face online. This continuing commitment is reflected in our retail product offerings
and customer communications and awareness programs.
In October 2008, Telstra appointed an Officer for Internet Trust and Safety to chair a
cross-company working group with responsibility for delivering a coordinated focus on
cyber safety issues including internet filtering, online child exploitation, cyber bullying,
online scams and identity theft.
In 2008/09, the Internet Trust and Safety engaged Telstra in Government from cyber bullying, identity theft
Working Group: awareness and safety campaigns and exposure to illegal content when
including Safer Internet Day and online. Telstra’s Officer for Internet
developed a comprehensive
National e-Security Awareness Trust and Safety was reappointed as
company-wide plan to align
Week; and a representative to the government’s
Telstra’s cyber safety activities
Consultative Working Group on
including regulatory, government provided advice to the federal
Cyber Safety.
relations, customer experience and government on priorities and
education; measures that help protect children
18

21. I M PA C T O F T E L E C O M M U N I C AT I O N S
In addition, the Telstra Foundation’s social network for six to 12 year
Spotlight on Cyber Safety program old children. Supported by the
continued to support the online safety Telstra Foundation with a grant
and wellbeing of children and young of $1.5 million over three years,
people, with grants to community SuperClubsPLUS Australia has
organisations. The program supports over 87,000 Aussie kids registered,
projects that build resilience, teach connecting with each other and
online safety and deliver initiatives to learning how to keep safe online
support youth cyber safety. In 2008/09, (visit www.superclubsplus.com.au);
the Telstra Foundation: and
announced a further $3 million participated in the Technology
contribution over three years and Wellbeing Roundtable, which
towards its Spotlight on Cyber brings together thought leaders to
Safety program, bringing the value share insight into how technology
of its investment in youth cyber can be an enabler of wellbeing for
safety to $6 million over six years; young people and to develop and
promote best practice.
launched SuperClubsPLUS
Australia, a safe and protected
Performance and commitments
Report on planned actions 2008/09
Planned actions Progress Outcome
Deploy enhanced HSPA+ (High Speed Packet Access Plus) On 24 December 2008 the Next G™ network became the first mobile
as a national software upgrade to increase peak network network in the world to activate enhanced High Speed Packet
downlink speeds across our national Next G™ network Access Plus (HSPA+) technology. 
from the current 14.4Mbps to 21Mbps2 by the end of 2008.
With support from the NT Government and Rio Tinto Telstra successfully rolled out over 800kms of optical fibre through
Alcan, Telstra will roll out 800kms of fibre to connect nine Arnhem Land connecting the township of Nhulunbuy and five
northern Arnhem Land indigenous communities and
the township of Nhulunbuy to the nation’s fibre optic
mainland indigenous communities providing access to world
class, high speed broadband and a range of other advanced

backbone. communications solutions.
 Achieved Partially achieved  Did not achieve
Planned actions 2009/10
Create a Telstra cyber safety website to provide a central, dedicated education and awareness resource with information
and tools for Telstra customers, employees and the general public.
Upgrade the Next IP™ transmission network between Melbourne and Sydney to 40 Gigabits per second.
Continue to upgrade Next G™ Ethernet backhaul to regional cities and towns as well as to approximately 2,000 rural and
remote sites.
Commence deployment of the next evolution of HSPA+ Dual Carrier technology in the Next G™ network.
2 Peak network downlink speed. Actual customer download speeds will be less and will vary due to traffic loading, distance from the cell, local conditions, hardware,
software and other factors.
19