OTE Corporate Responsibility Report 2010 - EuroCharity

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                                                       Regarding this Report

                      RegaRding this RepoRt

      This ‘2010 Corporate Responsibility (CR) Report’ is            comprehensive level of information
      the sixth annual report on Hellenic Telecommunica-
                                                                     and data, and is the basis for the
      tion Organization’s (OTE) economic, social and en-
                                                                     GRI Application Level Check and
      vironmental activities and performance. As in previ-
      ous years, the Reports’ primary focus and boundary is
                                                                     the External Assurance of the 2010
      OTE S.A operations in Greece. In addition, summary             Report.
      information is provided for OTE Group economic               > In addition, the CR initiatives that
      performance and the CR activities of OTE Group                 have been developed by OTE’s
      subsidiaries.                                                  subsidiary companies in Greece
      OTE is committed to continuously and consistently              and abroad, are presented in the
      incorporating the principles of Social Responsibility          present document
      into the Company’s corporate strategy. Accordingly,
                                                                   > The Printed Report indicates the
      our CR Report focuses on both our CR strategy and
                                                                     topics on which additional informa-
      its implementation through our ‘Building Ties’ pro-
      gram, which covers OTE’s practices and performance
                                                                     tion is provided in the Online Re-
      in the Marketplace, towards Employees, the Environ-            port.
      ment, and towards Society in Greece.
      For the first time, the 2010 Report is presented as          As in previous years, OTE’s approach to CR report-
      both an “Online Report” at a specific microsite (www.        ing reflects our commitment to systematic harmoni-, available within the OTE           zation with international CR standards. In 2010 we
      website, and as a summary Printed Re-             have again applied the ‘G3 Guidelines of the Global
      port presented at the OTE Annual Meeting. Our ap-            Reporting Initiative (GRI), including the GRI ‘G3.1’
      proach to reporting online and in print is as follows:       guidelines regarding diversity and human rights for
                                                                   the indicators on which we report.. And, as in previ-
      > Both the Online Report and Printed
                                                                   ous years, we report on our ongoing commitment to
        Report present a concise summary
                                                                   uphold the principles of the United Nations Global
        of our main activities and achieve-                        Compact.
        ments for 2010 and our future
        goals.                                                     For the second successive year, our 2010 CR report
      > The Online Report provides the                             is subject to external assurance covering both GRI
                                                       -4-             -5-
                                               Regarding this Report

application and the AA1000 AccountAbility Princi-
ples Standard. During 2010, we have further devel-
oped our approach to applying the AA1000 Standard
through further development and reporting of stake-
holder dialogue mechanisms. Our overall approach to
AA1000 and its three principles of inclusivity, mate-
riality and responsiveness is outlined in the “CR and
Business Strategy” section of this Report.
For your opinions and comments regarding our Cor-
porate Responsibility Report, you can visit our web-
site at:, or contact the
OTE Corporate Responsibility Section via e-mail at or telephone to:
+302106118681, +302106118178, +30210 6115754,
fax: +302106115873.
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                                       Ceo Message

      During such difficult, defining times for Greece,                    broadband penetration and bridge the digital di-
      OTE’s commitment to be a competitive, innova-                        vide within society and geographically;
      tive and socially responsible company is stronger               ▪    Taking active steps towards contributing to a low
      than ever. As one of the largest corporate entities in               carbon society and making telecoms a “green”
      Greece and South-East Europe, OTE is called to play                  sector.
      the role of growth driver in an economy and society             As the pages of this Report show, OTE’s actions
      that is going through the most challenging time.                prove that it seriously regards our business and social
      For OTE, progress in the market goes hand in hand               responsibilities as inextricably linked with the com-
      with responsibility towards our people, customers,              pany’s success. In these testing times, it is crucial for
      the environment and society.         OTE’s nationwide           OTE to prove that we uphold our values and princi-
      presence and role in everyday life gives the company            ples through actions. This is what OTE is determined
      unique contact every day with the hopes and ambi-               to do and, with ambition and optimism, we plan to
      tions, concerns and worries of the people. This has al-         continue to strive to achieve our goals in Greece and
      ways shaped our social contributions, to charities and          all our regional markets.
      in emergencies, to education and young people, as
      well as our business decisions and investments, and it
      encapsulates the essence of our CR programme.
      In 2010, and for the years ahead, OTE has defined its
      Corporate Responsibility priorities in these essential
      ▪   Working every day to ensure OTE sustains its
          leading competitive position and contributes to
          the competitiveness of the wider economy;
      ▪   Strong commitment to good governance, transpar-
          ency and fiscal responsibility, and to the welfare
          of all those who contribute to and make a living
          out of our Group’s activities.
      ▪   Providing strong value and quality service to                   Michael Tsamaz
          customers and investing continuously in the new                 Chairman of the Board of Directors
          technologies and network infrastructure to expand               & Chier Executive Officer of OTE SA
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                                                                           Table of contents                                                                                                                                                 Table of contents

                                 taBLe oF Contents

1. ote and gRoUp                                                                                                                                                   5. BUiLding ties With the enViRonMent
OTE...........................................................................................................................................................12   Introduction.......................................................................................................................88
OTE Group..........................................................................................................................................13              Measuring and reporting our Environmental impact and initiatives..........................................................90
Vision - Mission - Business Strategy................................................................................................................15             Research and development...............................................................................................................98
Corporate Governance.......................................................................................................................17                      Support of environmental initiatives by NGOs ......................................................................100

2. CoRpoRate ResponsiBiLitY & BUsiness stRategY                                                                                                                    6. BUiLding ties With soCietY
Introduction.......................................................................................................................24                              Introduction.......................................................................................................................104
CR Certifications and Indices.......................................................................................................................26             Supporting children, vulnerable social groups and youths ...........................................................................105
Corporate Responsibility and OTE Management........................................................................................30                              Corporate Volunteering....................................................................................................................111
Participations - Distinctions.......................................................................................................................32             Cultural Heritage - Local Communities.......................................................................................................114
Goals - Results - Commitments.......................................................................................................................34
Stakeholder Engagement.......................................................................................................................44                    7. anneXes
National and International Co-operations...................................................................................................45                      Global Compact.......................................................................................................................119
3. BUiLding ties With the MaRKetpLaCe                                                                                                                              External assurance statement.......................................................................................................................136
Introduction.......................................................................................................................48                              GRI Statment Application level check..........................................................................................139
New Technologies & Broadband.......................................................................................................................50
Customer Service.......................................................................................................................55
Procurement Procedures - Contracting..........................................................................................................61
Regulatory Issues.......................................................................................................................63

4. BUiLding ties With oUR eMpLoYees
Health & Safety.......................................................................................................................73
Equal Opportunities and non - discrimination................................................................................................78
Training Programmes...................................................................................................................82
Internal Communication.......................................................................................................................83
      -10-              -11-
ΟΤΕ & OTE Group   ΟΤΕ & OTE Group
                                                       -12-                                                                     -13-
                                                 ΟΤΕ & OTE Group                                                          ΟΤΕ & OTE Group

                                                 ote                                                       ote gRoUp

‘Hellenic Telecommunications Organisation S.A.                     The Hellenic Telecommunications Organisation                        can be found on OTE’s Investor Relations website:
(‘OTE S.A.’ or ‘OTE’) was established on in 1949,                  (OTE S.A.) is the largest telecommunications provid-      
and its’ headquarters are currently based in the Mu-               ers in Greece and, along with its subsidiary compa-                 tion/BusinessOverview/WhoWeAre/OTEToday
nicipality of Maroussi. OTE Group is the largest                   nies, it currently ranks among the leading telecom-
telecommunications company in the Greek market,                    munications groups in South-East Europe, operating                        OTE OwnErShip STaTuS /
providing broadband and fixed telephony services to                in Romania, Bulgaria, Serbia and Albania.                                SharEhOldEr BrEakdOwn
Greek and international companies, consumers and                   OTE Group owns 20% in Telekom Serbia, the largest                   On the basis of the shareholder list of 31 December
public sector bodies. Moreover, it offers mobile te-               telecommunications provider in Serbia. Moreover, as                 2010, the share structure of the Company was the fol-
lephony services, Internet access, digital communica-              of 2009, OTE Group has 100% ownership of GER-                       lowing:
tions, leased line services and high-speed data com-               MANOS, the largest company in South-East Europe
                                                                                                                                       > Greek State: 20.0%
munication.                                                        trading in technology products.
                                                                                                                                       > Deutsche Telekom: 30.0%
                                                                   Aside from broadband services, OTE Group offers
Basic figures for OTE S.A. for the twelve-month end-                                                                                   > International Institutional Investors:
                                                                   fixed and mobile telephony, satellite connections,
ing 31 December 2010
                                                                   high-speed data communication and leased line ser-                    30.2%
 Number of employees       10,925 employees                        vices. OTE Group employs approximately 32,600                       > Domestic Institutional Investors:
                           (regular personnel)                     people in 5 countries, with a Group turnover of EUR                   9.7%
                                                                   5,482.8 million.                                                    > Other Investors: 10.1%
 OTE S.A. turnover         EUR 2169.8 million                      Detailed information regarding OTE shareholdings                    > TOTAL: 100
                                                                   in other companies as well as Group financial details,
 Total capitalisation      EUR 3.6 billion

 Share price               EUR 6.13 (as a total
 (30 Dec 2010)             number)

                                                                                               20.0%       30.0%                     9.7%    30.2%               10.1%

Detailed information can be found on OTE’s Inves-                                Greek State    Deutsche          Domestic                                International          Other
                                                                                                Telekom    Institutional Investors                   Institutional Investors   Investors
tor Relations website.

                                                                                                                    OTE Share Structure
                                                      -14-                                                               -15-
                                                ΟΤΕ & OTE Group                                                    ΟΤΕ & OTE Group

OTE shares are traded in the following stock ex-
changes:                                                                                Vision, Mission
> Athens Stock Exchange (ordinary
  nominal shares)
                                                                                     & BUsiness stRategY
> London Stock Exchange (in the
  form of Global Depositary Receipts
> Following its de-listing from the
  New York Stock Exchange, OTE
  American Depositary Shares (ADS)                                OTE operates in a rapidly changing telecommunica-         > Fostering closer relations with cus-
  will now be traded in the OTC mar-                              tions environment, which is affected by developments
                                                                                                                              tomers and offering high-quality
  ket, under the HLTOY ticker, with                               within Europe, by changes and advances taking place
                                                                                                                              services based on innovative tech-
  the Level I ADSs programme. OTE                                 worldwide, by the evolution of the services offered
                                                                  by Telecommunications Providers, by the increasing
  continues to fulfil its reporting obli-                                                                                   > Further developing and expanding
                                                                  intensity of competition, as well as by the require-
  gations towards the U.S. Securities                                                                                         its portfolio of broadband services
                                                                  ments of the regulatory and legislative framework.
  and Exchange Commission.                                        OTE’s objectives primarily target sustainable devel-        (VDSL2);
                                                                  opment and increased competitiveness, by offering         > Reducing operating costs and, by
   OTE GrOup kEy BuSinESS                                         high-quality products, services and customer care and       extension, improving the price of its
       dEvElOpmEnTS                                               by providing ‘combo-packages’, as well as by simul-         service offering, in regard to both
> OTE notifies NYSE of its intention                              taneously tapping into synergies operating at intra-
                                                                                                                              existing as well as new services;
  of delisting from the New York                                  Group level.
                                                                                                                            > Training its workforce, thus further
  Stock Exchange.                                                                                                             developing the abilities and skills of
> OTE announces its decision to im-                                                    viSiOn
                                                                  OTE’s vision is to ensure the growth of the Company
                                                                                                                              its employees across all levels in the
  plement the dissolution and liquida-                                                                                        hierarchy;
                                                                  and to maintain its leading position in the market, by
  tion of ‘OTE PROPERTIES AEEAP’                                                                                            > Bringing added value to the mar-
                                                                  offering the best-possible experience to its customers,
  Company.                                                        both in Greece as well as within the broader South-         kets where it operates, through the
> OTE announces a series of exten-                                East European market.                                       adoption of Corporate Responsibil-
  sive Management reshuffles, aim-                                                                                            ity principles.
  ing at reinforcing its organisational                                              miSSiOn
  structure and its operation at Group                            > Achieving profitable and sustain-             BuSinESS STraTEGy
  level.                                                            able growth, taking into account the In the context of the serious economic crisis prevail-
Detailed information is available at: http://www.ote.               conditions prevailing in the current ing in all market sectors, which also specifically af-
gr/portal/page/portal/InvestorRelation/OTEIRMain-                                                        fects the telecommunications market environment,
                                                                    exceedingly competitive market;
Page                                                                                                     the Company has adopted the following primary stra-
                                                                  > Consolidating market share and
                                                                                                         tegic objectives:
                                                                    creating new sources of revenue
                                                                                                         > Offering innovative high-speed solu-
                                                                    (IP-TV, satellite TV, ICT);
                                                     -16-                                                               -17-
                                               ΟΤΕ & OTE Group                                                    ΟΤΕ & OTE Group

    tions, on the basis of its comprehen-
    sive network infrastructure, in such
                                                                             CoRpoRate goVeRnanCe
    a manner as to generate value both
    for its shareholders as well as for
>   Expanding broadband penetration
    in the Greek market and maintaining
    OTE’s dominant position, by fully
    tapping into the Company’s com-
    petitive advantages;                                         OTE aspires to the implementation of optimum cor-
                                                                 porate governance practices, based on best practices
>   Enhancing customer service,
                                                                 adopted at the international and European levels,
    by providing more substantial                                                                                                     The role                                        Protection of
                                                                 spanning the entire spectrum of its business opera-         of the board of directors                              shareholder's right
    and rapid after-sales support;                               tions. The Company, by reinforcing its internal pro-
                                                                                                                             and management team

>   Expanding and upgrading the OTE                              cedures and administrative structure, ensures not only
    network, aiming at the gradual                               its compliance with the regulatory framework, but
    transition to a “new generation”                             also the fostering of a corporate culture founded on
    network;                                                     the values of ethics and of safeguarding the interests
>   Achieving equitable treatment                                of shareholders and all stakeholders.                                                   Tranpsarency and information
                                                                 The three primary pillars underpinning the implemen-
    of OTE by regulatory bodies;
                                                                 tation of the corporate governance rules and practices                pillars underpinning the implementation
>   Incorporating the principles of Cor-                                                                                                of Corporate Governance within OTE
                                                                 within the OTE Group involve:
    porate Responsibility within the
                                                                 > The role of the Board of Directors
    Company’s business plans.
                                                                   (scope of duties, composition,
OTE’s vision, mission and business strategy, as well
as its relations with Stakeholders, are governed by
                                                                   replacement and stepping down
corporate and moral values and are set forth in the                of members, committees) and of
Company’s Code of Ethics and Business Conduct.                     Executive Management;
Further information is available at: http://www.ote.             > The protection of shareholders
gr/portal/page/portal/InvestorRelation/Corporat-                   (General Shareholders’ Meeting,
eGovernance/OurPrinciples                                          shareholder minority interest, dis-
                                                                   tribution of profits and payment of
                                                                 > The reinforcement of transparency
                                                                   (procedures reinforcing transparen-
                                                                   cy, regulatory compliance system),
                                                                   auditing (internal and external audit,
                                                                   risk management), reporting obliga-
                                                                   tions (shareholder communication,
                                                                   informing all interested parties).
                                                       -18-                                                                                                  -19-
                                                 ΟΤΕ & OTE Group                                                                                       ΟΤΕ & OTE Group

For OTE, Corporate Governance translates into the         Within the context of Law 3873/2010, ΟΤΕ complies
overall principles upheld by the Company, which           with the practices that the Corporate Governance
safeguard its performance and shareholders' interests,    Code of the Hellenic Federation of Enterprises (SEV)
as well as those of all Stakeholders. Recognising the     specifies.
importance of Corporate Governance, OTE’s relevant        This code is available at:
policy is fully aligned with international standards      line/index.aspx and
and has been formulated taking the following into         pdf/KED_TELIKO_JAN2011.pdf
consideration:                                            OTE’s Corporate Governance Statement is included                        Assembly of

> Management Bodies (Board of Di-                         in OTE’s Annual Financial Report 2010, which is in-
  rectors, Chief Executive Officer and                    cluded in the company’s Annual Report.

  General Shareholders’ Meeting);                                                                                                                                                    Compensation
> The Audit Committee, which assists                                                                             Executive
                                                                                                                                    Board of
                                                                                                                                                                                       & Human
  the Board of Directors (BoD) in the
  exercise of its supervisory duties,
  in drafting financial reports and in
  conducting internal audits;                                                                                                       Managing

> The Compliance Management Sys-
  tem (CMS), encompassing its legal
  and internal regulations and which
  was set up in July 2009;                                                                                                        Management
> The Audit Procedures, which en-
  sure the Company’s credibility and                                                                                            Ejects, forms, supervises                Convenes, reports to, supports
  which avert the occurrence of fraud
  (such as the Code of Ethics and
  Business Conduct);                                                                                                    The above pillars make up OTE’s Corporate Governance System

> Whistle-blowing policy, which con-
  stitutes both a preventive measure
  aiming at preventing, as well as a
  means for detecting, fraud.
Law 3873/2010, which was enacted on September
2010, requires that all Greek listed companies dis-
close on annual basis information with regards to the
corporate governance principles and the practices that
they apply. The Law introduces the obligation for the
drafting of a Corporate Governance Statement, which
is included in the Annual Report of the Board of Di-
rectors and provides information on: the Corporate
Governance Code.
                                                       -20-                                                                                                               -21-
                                                 ΟΤΕ & OTE Group                                                                                                    ΟΤΕ & OTE Group

       OTE rEGulaTOry                                     In order to identify and address incidences of corrup-   In 2010 there were 4 cases of proven non compliance
                                                          tion within OTE, all requisite measures, both preven-    which had as a result: 1 temporary seize of work,
    COmplianCE COmmiTTEE
                                                          tive as well as suppressive, are adopted.                1 freeze of wage, 1 transfer to another department and
The OTE Regulatory Compliance Committee was set
                                                          Specifically:                                            1 reproof.
up in 2010, with the primary aim of providing "sup-
                                                          > Adoption and implementation of                         For further and more detailed information on the
port, verifying and ensuring the implementation of
                                                            regulatory compliance policies in                      subject of Corporate Governance, please visit: http://
Regulatory Compliance Policies, in the framework
of the Regulatory Compliance Management System              regard to issues pertaining to OTE's
Programme." Seven (7) sessions of the Committee             BoD adoption and implementation
were held during 2010. Furthermore, the OTE Group           of the 'Policy on averting conflicts of
Sub-Division of Regulatory Compliance Manage-               interest and combating corruption'.
ment was set up, manned and began operating. Its
                                                          > Training personnel, especially those
competencies are directly conferred by the Chief Ex-
                                                            who come into contact with officials
ecutive Officer.
The OTE Group Compliance Management Process
                                                            (of the public sector or otherwise)
Manual has been published, further to its approval by       and who negotiate with clients or
the OTE Regulatory Compliance Committee, on 12              vendors.
July 2010.                                                > Conducting an annual risk assess-
In the framework of monitoring the effectiveness of         ment, including on corruption is-
the Regulatory Compliance System of OTE, COS-               sues, in view of the adoption and
MOTE and Romtelecom, a CMS Certification was
                                                            implementation by Management, if
conducted in 2010 by the independent audit company
                                                            deemed necessary, of measures for
with highly positive results for all three companies.
OTE Group Compliance Management System con-
                                                            curtailing incidences of corruption.
sists of the following:                                   > Ask me’ procedure: Procedure in-
> The Code of Conduct for the Pro-                          volving the submission of questions
  tection of the Individual’s Right to                      by employees regarding the regula-
  Privacy in the Handling of Personal                       tions and policies they must apply in
  Data within OTE Group                                     the context of exercising their work
> The OTE Group Whistle blowing                             duties, in order not to violate the
  Policy                                                    relevant laws and procedures and
> The OTE Group Policy on Accept-                           to avert the risks entailed by such
  ance and Offering of Corporate                            violations.
  Gifts                                                   > Tell me’ procedure: Manages and
> The OTE Group Donations and                               addresses complaints concerning
  Sponsorships Policy                                       the infringement of applicable legis-
> The OTE Group Events Policy                               lation, or of Company/Group Poli-
> The OTE Group Fraud Policy                                cies and Internal Procedures.
> The OTE Group Policy on Insider
                   -22-                                           -23-
Corporate Responsibility & Business Strategy   Corporate Responsibility & Business Strategy
                                                             -24-                                                                                                       -25-
                                          Corporate Responsibility & Business Strategy                                                               Corporate Responsibility & Business Strategy

         CoRpoRate ResponsiBiLitY                                                                                groups, digital inclusion, cultural
                                                                                                                 heritage preservation and promo-
           & BUsiness stRategY                                                                                   tion of employee volunteerism; with
                                                                                                                 particular focus on the regions.
                                                                                                             Each of these pillars of OTE’s Corporate Responsi-
                                                                                                             bility Program is covered in a section of the 2010
                                                                                                             Report. As shown in the table “Goals-Results-Com-
                                                                                                             mitments”, in 2010 we met almost all our CR goals
                                                                                                             set the previous year, by staying focused on sustain-
                                                                                                             ing our programmes in difficult times and making
For over half a century, Corporate Responsibility                   investing systematically in bridging
                                                                                                             incremental progress.
(CR) has been a key part of OTE’s culture, with a                   the digital gap and internet safety.
particular emphasis on accompanying our market                    > Employees: Adoption of policies
presence with societal awareness and contributions.
                                                                    and practices that encourage per-
Today the values of Corporate Responsibility consti-
                                                                    sonal development and recognise
tute a strategic component of OTE’s business strat-
egy, planning, policies and operations.
                                                                    good performance; ensuring equal-
Through its “Building Ties” CR program, introduced                  ity of opportunities in the working
in 2005, OTE focuses on the marketplace, workplace,                 environment and promoting coop-
society and environment issues that are important                   eration and implementing ward pro-
to the company’s success and to its stakeholders, in                grams to further enhance working
close alignment with European and international CR                  conditions.
standards. We aim to demonstrate OTE’s presence as
                                                                  > Environment: Development of ac-
a “responsible citizen” every day and create a sustain-
                                                                    tions and initiatives, in the frame-
able business with increased competitiveness.
Once again in 2010, OTE’s Corporate Responsibil-
                                                                    work of regulations and company
ity priorities focused on the four “Building Ties” pil-             policies, using qualitative and
lars with the following priorities that are based on the            measurable quantitative targets, to
most important issues for our business and stakehold-               minimise the ecological footprint of
ers during very difficult times in Greece:                          the company, through the limitation
> Marketplace: Utilisation and fur-                                 of energy consumption, the recy-
  ther development of technological                                 cling of materials and the support of
  infrastructures and possibilities                                 environmental Non Governmental
  emphasis on providing competitive                                 Organisations.
  and high quality services to meet                               > Society: Continuation and expan-
  customers’ needs within the new                                   sion actions and initiatives that con-
  framework of market convergence,                                  tribute to the preservation and pro-
  thus contributing to the develop-                                 tection of social cohesion through
  ment of broadband services and                                    support for vulnerable social
                                                         -26-                                                                                                                      -27-
                                      Corporate Responsibility & Business Strategy                                                                              Corporate Responsibility & Business Strategy

                       CR CeRtiFiCations                                                                                2010 and in preparing this Report, we are confident
                                                                                                                        that our programs address our stakeholders’ main
                                                                                                                                                                                          people’s lives, particularly for young
                                                                                                                                                                                          people, which can be very beneficial
                          and indiCes                                                                                   priorities, while acknowledging the need for further
                                                                                                                        development of systems to support our efforts to de-
                                                                                                                                                                                          with the right education and harmful
                                                                                                                        terminate and evaluate emerging or changing issues.
                                                                                                                                                                                          when it is lacking.
                                                                                                                                                                                        > Extremely low levels of social wel-
                                                                                                                                                                                          fare, due to low levels of public
                                                                                                                        Our approach regarding “Inclusivity” (the determi-
                                                                                                                        nation of stakeholders and cooperation with them in
                                                                                                                                                                                          awareness and the lack of organ-
                                                                                                                        order to gain a thorough understanding of the issues              ized state welfare for vulnerable so-
                                                                                                                        that concern them) has been largely developed by                  cial groups, particularly people with
OTE’s CR strategy, initiatives and reporting are                     the Customer Technical Support                                                                                       disabilities and serious illnesses.
                                                                                                                        the establishment of dialogue mechanisms with the
aligned closely with a number of European and Inter-                 Department                                                                                                         The Environmental NGO’s identified as most crucial
                                                                                                                        employees, the investors, the customers, the public
national standards.                                           The above certification processes ensure the provi-                                                                       the following:
                                                                                                                        and regulatory bodies, NGOs and the media. We are
                                                              sion of quality services, which undergo continuous        aware of the need and the value of a two-way com-               > Despite the economic crisis, the is-
            CErTifiCaTiOnS                                    re-assessment and improvement.                            munication channel for the discussion of emerging is-             sue of the environment is now con-
> In 2010, the number of OTESHOPs                                                                                       sues, as this helps to develop an informed overview
                                                                                                                                                                                          sidered as the second most crucial
  (ΤΕΚ) that are certified according to                                    GlOBal rEpOrTinG                             on issues of Stakeholders’ concern, which helps us
                                                                                                                                                                                          social issue in our society. This is
  the ISO 9001: 2008 standard, was                                           iniTiaTivE (Gri)                           plan and form future decisions. So far, most Stake-
                                                                                                                        holders are satisfied with the level and modes of dia-
                                                                                                                                                                                          because environmental problems
  127 throughout Greece (from a total                         OTE was one of the first Greek companies to apply
                                                                                                                                                                                          have started affecting directly the
                                                              GRI’s G3 principles (Global Reporting Initiative ‘G3’     logue with OTE.
  202), with an additional 15 Adminis-                                                                                                                                                    everyday life of people especially
  trative Departments also certified.                         Sustainability Reporting Guidelines). In 2010 we
                                                              have again applied the ‘G3 Guidelines of the Global       In 2010, at the request of our NGO social partners for            those of low income. As a result
> Improvement of Environmental                                                                                          the establishment of a direct dialogue with the com-              support for voices calling for action
                                                              Reporting Initiative (GRI), including the GRI ‘G3.1’
  Management Systems, according                                                                                         pany, we began a series of organised discussions to               has grown.
                                                              guidelines regarding diversity and human rights for
  to ISO 14001:2004 Standard, was                             the indicators on which we report.                        promote the exchange of views on issues concerning              > The lack of state policies and ac-
  achieved for two departments: De-                                                                                     both OTE and the social partners. These discussions
                                                                                                                                                                                          tion in this area has left an immense
  partment of Maintenance and Re-                                      ExTErnal aSSuranCE                               continued into 2011, as part of fulfilling our 2010 CR
                                                                                                                                                                                          space for initiatives and collabora-
  pairs of the Transportation Means                                                                                     goals. These dialogue meetings focus on the most
                                                              In 2010, ΟΤΕ’s 2009 CR Report was also among                                                                                tive actions by NGOs, private citi-
                                                                                                                        important social and environmental issues in Greek
  Unit and the Customer Technical                             the first Greek companies to be independently ex-
                                                                                                                                                                                          zens, corporations and individual
                                                                                                                        society, an exchange of views on those issues from
  Support Department.                                         ternally assured, pursuant to the ΑΑ1000 Account-
                                                                                                                        the NGO’s and corporate perspectives, as well as on               politicians. The lack of protection
> Improvement of Occupational                                 Ability Principles Standard, thus achieving the GRI
                                                              «B+»application level.
                                                                                                                        each other’s roles and where cooperation is best di-              of the environment has also led to
  Health and Safety Management                                                                                          rected. The most crucial issues identified by Social              a high threat for biodiversity.
  Systems, according to ELOT                                  AA1000 AccountAbility Principles Standard
                                                                                                                        NGOs were:                                                      Finally, the most important views of the NGO’s on
  1801:2008 - OHSAS 18001: 2007                               OTE’s CR program “Building Ties”, focuses on is-
                                                                                                                        > The negative impact of the current                            the corporate world, CR, and the role of OTE, sum-
                                                              sues that are of great importance for both our business
  Standard, was achieved                                                                                                  economic crisis on children and                               marize as follows:
                                                              and our stakeholders. In 2010, OTE continued to de-
  for two departments: Department                                                                                         families, resulting in decreased pro-                         > The lack of organized state poli-
                                                              velop its approach to applying the ΑΑ1000 principles
  of Maintenance and Repairs of                               pertaining to Inclusivity, Importance and Responsive-       tection and greater risk of harm.                               cies and measures on these issues
  the Transportation Means Unit and                           ness. From the stakeholder feedback received during       > The increasing role of technology in                            has left a large space for corporate
                                                 -28-                                                                                                                     -29-
                              Corporate Responsibility & Business Strategy                                                                             Corporate Responsibility & Business Strategy

    involvement and as a result expec-                      business resources, products and                   For the 2010 CR Report, Deloitte has committed to
                                                                                                               provide independent assurance regarding the imple-
    tations on companies have grown.                        services (for example, technology
                                                                                                               mentation of the Accountability AA1000 principles
>   Companies have responded to this                        in the case of OTE), to help social
                                                                                                               in the “2010 Corporate Responsibility Report”.
    by taking action and developing                         groups and to protect the environ-
    CR programmes, but not always in                        ment. Green ICT is seen as a very                    inTErnaTiOnal Cr indiCES
    the right way. Phenomena such as                        positive contribution in the right
    ‘green-washing’ or undertaking ac-                      direction.
                                                                                                               ΟΤΕ, for the last three consecutive years (since 2008)
    tions without incorporating the un-               Materiality                                              is included in the FTSE4Good index on issues per-
    derlying values in their business and             Our approach to “Materiality” (determining what          taining to Corporate Responsibility, guaranteeing
    corporate culture, or without follow-             issues are important for OTE and its stakeholders)       transparency and continuous effort for the imple-
    ing through, are often observed in                focuses on the impact that our company has on the        mentation of good practices. The FTSE4Good index
    the corporate world.                              marketplace and the environment, as well as on the       measures Corporate Responsibility performance and
                                                      support we provide to the society and the employees.     includes top companies from all over the world.
>   These NGOs welcome strategic
                                                      In 2010 we began to develop a materiality mapping
    and long term partnerships with                                                                            Corporate Responsibility Index (CRI)
                                                      system, the implementation of which was delayed by
    companies and expect not only fi-                 some internal reorganisation, and will now be pur-
                                                                                                               In 2010, for a third consecutive year, ΟΤΕ participat-
    nancial support from them, but also                                                                        ed in the Corporate Responsibility Index (CRI) evalu-
                                                      sued in 2011. Our aim is to further map and prioritise
                                                                                                               ation procedure, in cooperation with BITC (Business
    evidence that the company is incor-               the issues that combine a high degree of impact for
                                                                                                               in the Community), and for the first time received
    porating the values of CR in their                our enterprise and a high degree of importance for
                                                                                                               the "gold” distinction, among many other significant
    business structure and promoting                  the stakeholders, as well as to expand our measure-
                                                                                                               Greek companies and multinational enterprises. The
    these with their people.                          ment capabilities and reporting of those issues. The
                                                                                                               CRI index is an evaluation tool and is considered as
                                                      dialogue we have started with NGOs gave us valuable
>   During the current economic crisis                                                                         one of the most important international indices in Eu-
                                                      input on what is material for them. However, we ac-
    when direct financial support from                                                                         rope for the measurement of the performance of the
                                                      knowledge the need for a more complete systemisa-
    companies is decreasing, NGOs                     tion of the materiality procedure during 2011.
                                                                                                               companies regarding Corporate Responsibility.
    encourage companies to keep their
    long term relations with NGOs with
                                                      Our approach towards “Responsiveness” (to material
    a proven track record and to ex-                  issues and to being transparent regarding our perfor-
    plore alternative and creative ways               mance) is well developed in individual domains, such
    of using corporate resources to                   as our customers, our investors and the employees
    support them. Corporate volunteer-                and is increasingly becoming embedded in the en-
    ism, is one such method, and is                   vironmental management. Our approach regarding
    very welcomed as long as it is well               issues that are material for multiple stakeholder do-
    organized and supported by both                   mains, such as Internet Safety, were developed for
                                                      the most part in 2010, thus proving the importance
    sides and it is followed through.
                                                      of Corporate Responsibility and its more systematic
>   NGOs are also encouraging compa-
                                                      integration in the company’s business planning.
    nies to find ways of using their core
                                                           -30-                                                                                                                           -31-
                                        Corporate Responsibility & Business Strategy                                                                                   Corporate Responsibility & Business Strategy

        CoRpoRate ResponsiBiLitY                                                                                                  COrpOraTE
           & ΟΤΕ ManageMent                                                                                                  rESpOnSiBiliTy SECTiOn
                                                                                                                         During 2010, the external assurance obtained for the
                                                                                                                         data included in the “2009 Corporate Responsibility
                                                                                                                         Report” was perhaps the most important challenge
                                                                                                                         that the Corporate Responsibility Department was
                                                                                                                         faced with, and it resulted in the 2009 Report being
                                                                                                                         assured to the "B+" application level according to
                                                                                                                         GRI's G3 principles.
The principles and values of Corporate Responsibility             Chairman and CEO.                                      The following chart shows OTE's Corporate Respon-
constitute a strategic choice by OTE and are included                                                                    sibility governance system:
                                                                > The distribution of the “Annual
in the objectives of the Company’s 3-year (2010-
                                                                  Corporate Responsibility Report”
2012) Business Plan. Furthermore, the strengthen-
ing of the value of the dialogue with stakeholders, as
                                                                  to the members of the BoD and the
well as OTE’s approach regarding risk management,                 shareholders of the company, at the
always in relation to precautionary principles and the            Annual Ordinary General Meeting.                                                               Board of                                      Generel
                                                                                                                                                                 directors                                     directors
need for securing sustainability, are now considered
as primary objectives of the company.                                         COrpOraTE
Corporate Responsibility, and its implementation ac-                      rESpOnSiBiliTy TEam                                                          Chairman and Chief
                                                                                                                                                       Executive Officer
                                                                                                                                                                                                    Corporate Communications
cording to our values and commitments, is of great              ΟΤΕ, in recognition of the importance of a system-                                     > Reports on CR issues to the                > Reports on CR to Chairman
importance to the Management of OTE.                            atic and responsible attitude towards society, formed
                                                                                                                                                         BoD (annually)                               and CEO
                                                                                                                                                       > Makes decisions on                         > Regularly reports on CR to
The briefing of OTE’s Management regarding Corpo-               an intra-company Corporate Responsibility team in                                        Corporate Responsibility                     General Directors
rate Responsibility practices is equally important and          2006, under the coordination and guidance of the                                                                                    > Proposes CR strategy

is achieved through:                                            Corporate Communication Directorate. The intra-                                         Corporate responsibility
                                                                                                                                                                                                    > Includes CR issues in the
                                                                                                                                                                                                      Company’s Business Plan

> The submission of regular reports                             company group consists of representatives from all                                              Section
                                                                                                                                                                                                    > Supervises the intra-company
                                                                                                                                                                                                      CR team
                                                                                                                                                       > Publishes the CR Report
  on the progress of Corporate Re-                              General Directorates, as well as of representatives
                                                                                                                                                       > Informs OTE employees

  sponsibility actions and initiatives                          from the 3 Telecommunications Regions, while the                                         on CR actions
                                                                                                                                                       > Coordinates the intra-
                                                                project has been included in the organisational struc-
  to the Management Council (at a                                                                                                                        company CR Team                             intra-company Corporate
                                                                                                                                                                                                        responsibility Team
                                                                ture of the company.                                                                   > Communicates CR
  General Directors level) by the Cor-                                                                                                                   to stakeholders                            > Provides qualitative and
                                                                In 2010, the intra-company Social Responsibility                                                                                      quantitative data (for every
  porate Communications Director,                               team was broadened, so as to include new members,
                                                                                                                                                                                                      pillar of CR actions) for the
                                                                                                                                                                                                      drafting of the CR Report

  who, according to the organisation-                           in order to facilitate the collection of new data per-
                                                                                                                                                                                                    > Promotes OTE’s CR

  al structure, reports directly to the                         taining to environmental issues. The team’s contribu-
  Chairman and CEO.                                             tion is very important, among other reasons, for the
> The annual presentation of the Cor-                           collection and organisation of the material for the
  porate Responsibility actions to the                          preparation of the Annual Corporate Responsibility
  Board of Directors of OTE, by the
                                                           -32-                                                                                                           -33-
                                        Corporate Responsibility & Business Strategy                                                                   Corporate Responsibility & Business Strategy

    paRtiCipations - distinCtions                                                                                       Body
                                                                                                                        “CEO & CSR Money
                                                                                                                                           OTE’s distinctions
                                                                                                                                           Award as the best
                                                                                                                        Conference 2010”   company throughout
                                                                                                                                           the years in the
                                                                                                                                           category of Corporate
                                                                                                                                           Responsibility and 2nd
                                                                                                                                           award in the category
                                                                                                                                           “Best CSR Report”

                                                                                                                        CRD Analytics      ΟΤΕ is included in
                                                                                                                                           the top 1000 socially
            parTiCipaTiOnS                                                             diSTinCTiOnS                                        responsible companies
We make sure that as a company we receive, at all               In 2010, OTE received several distinctions for its CR
                                                                                                                                           list, according to an
times, continuing and multilateral information regard-          actions, commitments and practices. The following                          international survey
ing the developments on Corporate Responsibility is-            are referred indicatively:                                                 based on the GRI
sues. In 2010, OTE maintained its participation as a                                                                                       indices (5th in relation
member in various national and international bodies.              Body                       OTE’s distinctions                            to the 10 Greek
                                                                                                                                           enterprises and 407th
 Body                       Capacity                              “C.R. Index 2010”          “Gold” level
                                                                                                                                           at a global level)
                                                                                             distinction of the C.R.
 Greek Network for          Member
                                                                                             Index, the highest
 Corporate Social
                                                                                             distinction in Greece

                                                                  International magazine     Award for best
 Global Reporting           Member
                                                                  World Finance.             company in the
 Initiative                 (organizational
                                                                                             Corporate Governance
                            stakeholder member)
                                                                                             category in Greece

 Global Compact             Member
                                                                  Capital Link Company       Awards in two
                                                                                             categories in the
 ΕΤΝΟ (Sustainability       Member
                                                                                             framework of the
 Working Group)
                                                                                             institution of “Annual
                                                                                             Investment Relations
 The Federation of          Member
 Hellenic Enterprises
 (SEV) council
                                                                  University of the          Award for the 2009
 for sustainable
                                                                  Aegean                     Report regarding the
                                                                                             correct implementation
                                                                                             of the principles of
 GeSI (Global e▪            Member
                                                                                             GRI in the framework
                                                                                             of “CSR Reporting
                                                                                             Forum 2010”

 Corporate                  Member
 Responsibility Institute
                                                       -34-                                                                                                             -35-
                                    Corporate Responsibility & Business Strategy                                                                     Corporate Responsibility & Business Strategy

                              goaLs                                                                                          General          Goals for 2010                  Achievements for 2010        Commitments for 2011

                                                                                                                                          matters of concern (eg:            of the 2009 CR Report         important issues, etc)
                                                                                                                                          Internet Safety)                   ▪ Organised meetings
                                                                                                                                                                             with NGOs to discuss
                           CoMMitMents                                                                                                                                       issues and proposals of
                                                                                                                                                                             general interest, on the
                                                                                                                                                                             subject of CR

                                                                                                                      CR Certifications   ▪ To obtain GRI B+ for             ▪ Achieved a GRI B+           ▪ Maintain GRI
                                                                                                                                          the 2009 CR Report                 grade for the 2009 CR         certification at B+ for
        General              Goals for 2010                  Achievements for 2010        Commitments for 2011                            ▪ To maintain                      Report                        the 2010 Report
Corporate                ▪ To discuss with                 ▪ Inclusion of further CR      ▪ Coordination with all                         FTSE4Good listing for              ▪ Maintained our listing      ▪ Maintain our listing in
Responsibility (CR) in   General Directors and             issues in the Business Plan.   General Departments                             2010                               in the FTSE4Good index        the FTSE4Good index
the Business Plan        reach final agreement             ▪ Coordination with            on further integration of                       ▪ To maintain and                  ▪ External certification of   for 2011
                         on incorporating CR               Deutsche Telecom on            CR KPIs with Business                           further improve CR                 2009 CR Report                ▪ Maintain our
                         goals and KPIs in                 Group KPIs and initial         Plan                                            performance in line                ▪ Received the «Gold»         participation in the
                         Business Plan                     development of OTE CR          ▪ Continue alignment                            with international                 award from the CR Index       Carbon Disclosure
                         ▪ To align with Deutsche          KPIs.                          with Deutsche Telecom                           standards                          ▪ Participation in the        Project
                         Telekom’ s KPI’s where            ▪ Development of OTE           Group KPIs                                                                         Carbon Disclosure             ▪ Maintain and
                         possible                          KPI's regarding CR issues                                                                                         Project                       further improve our
                                                                                                                                                                                                           performance in the CR
CR and Management        To develop a systematic           ▪ Board Responsibility for     ▪ Develop systematic                                                                                             sector, in accordance
                         approach to engaging              CR was assigned to the         reporting on CR                                                                                                  with international
                         with the Board of                 CEO                            issues to the Board                                                                                              standards
                         Directors on CR                   ▪ Planed “Crisis               of Directors (on a                                                                                               ▪ Participation
                         matters (quarterly or             Management System”,            quarterly or bi-annual                                                                                           in the Dow Jones
                         biannually).                      comprising a “Crisis           basis)                                                                                                           Sustainability Index
                                                           Management Team”               ▪ Implement the
                                                                                          “Crisis Management               Marketplace        Goals for 2010                  Achievements for 2010        Commitments for 2011
                                                                                          System”, in all of OTE’s    Broadband           To increase OTE                    ▪ Increased broadband         ▪ Continue to increase
                                                                                          operations                  Development         broadband services,                penetration to 20.28% of      availability of
                                                                                                                                          speed and networks                 the population                broadband services and
Stakeholder Dialogue     ▪ To hold organised               ▪ Continued CR surveys         Creation and                                    to more than the                   ▪ Increased Broadband         speeds
                         discussions with                  of existing stakeholders       organisation of a                               94% of the country’s               penetration among OTE         ▪ Provide a satellite
                         selected stakeholders,            (Investors, NGOs,              Consultative Body                               territory (infrastructure          customers to 30.89%.          broadband Internet
                         such as                           Employees) and                 for mediating                                   coverage which gives               ▪ We provided broadband       service
                         meetings with                     expanded communication         communication                                   the opportunity to have            services at high speeds       ▪ Launch commercial
                         employees to discuss              to include Media               between employees                               access to Broadband                to the vast majority of       operation of VDSL2
                         vital issues                      ▪ Recorded the main            and Management                                  connection).                       the country (95% of
                           ▪ To arrange meetings           issues of concern to them,     (direct meetings with                                                              telephone connections)
                           with NGO’s to discuss           in the Stakeholders table      employees to discuss                                                               ▪ Pilot operation of
                                                     -36-                                                                                            -37-
                                  Corporate Responsibility & Business Strategy                                                    Corporate Responsibility & Business Strategy

      Marketplace           Goals for 2010                 Achievements for 2010     Commitments for 2011      Marketplace   Goals for 2010                Achievements for 2010      Commitments for 2011
                                                         VDSL2 (50Mbps/per                                                                                Unit (AHU) of the
                                                         subscriber)                                                                                      2nd Paediatric Clinic
                                                         ▪ Provided 55 computers                                                                          of Athens University,
                                                         and other equipment to                                                                           Children’s Hospital ‘P.
                                                         different organisations                                                                          & A. Kyriakou’, in order
                                                         performing social                                                                                to support the ‘Internet
                                                         work, in Athens and the                                                                          Safety’ awareness-
                                                         periphery                                                                                        raising campaign
                                                                                                                                                          targeting pupils, parents
Products and Services   ▪ To expand Conn-x TV            ▪ Developed IPTV            ▪ Commercial operation                                               and educators and that
                        programmes                       services, with 460 points   of satellite television                                              is being implemented
                        and channels                     of presence of OTE’s        service                                                              throughout Greece.
                        ▪ To continue and                network throughout          ▪ Continue providing                                                 ▪ In cooperation with the
                        increase services and            Greece                      existing products and                                                Adolescent Health Unit,
                        products for special             ▪ Enriched Conn-x           services to special                                                  we planned a programme
                        social groups                    TV programmes and           population groups and                                                of briefing sessions on
                                                         channels                    students                                                             issues pertaining to
                                                         ▪ Continued to offer free                                                                        ‘Internet Safety’
                                                         broadband connections                                                                            1. At OTE’s
                                                         to excelling students,                                                                           Telecommunications
                                                         with the purpose of                                                                              Museum for primary and
                                                         disseminating new                                                                                secondary school pupils
                                                         technologies among                                                                               and adults
                                                         younger generations                                                                              2. Throughout Greece
                                                         ▪ Continued and                                                                                  for employees and the
                                                         expanded the provision of                                                                        general public
                                                         services and products to                                                                         ▪ Provided computer
                                                         special social groups                                                                            protection from viruses,
                                                                                                                                                          hackers & spam, by
Internet Safety         ▪ To expand existing             ▪ We created a special      ▪ Continue our current                                               offering Conn-x Online
                        synergies (eg. teenage           brochure titled ‘Safely     cooperation with the                                                 protection free of charge
                        helpline “Ypostirizo”)           surf the Internet’ that     Adolescent Health Unit                                               for the first two months,
                        ▪ To select and                  contains simple advice on   ▪ Continue sponsoring                                                with every Conn-x
                        partner with an active           the proper and safe use     the youth helpline                                                   purchase
                        organisation in order            of the Internet (provided   “Ypostirizo: 800 11 800                                              ▪ We continued our co-
                        to support/produce               with every purchase         15”                                                                  operation with the Greek
                        brochure targeted to             made through the OTE        ▪ Implementation of                                                  Self-Regulatory Body
                        parents, teachers,               Network of Stores,          the ‘Safe Internet’                                         as well
                        children and teenagers           throughout Greece)          information campaign                                                 as the Greek Safe Inter-
                                                         ▪ Cooperation with the      both in Athens as well
                                                                                                                                                          net Site www. saferinter-
                                                         Adolescent Health           as the Periphery.
                                                      -38-                                                                                                            -39-
                                   Corporate Responsibility & Business Strategy                                                                    Corporate Responsibility & Business Strategy

     Marketplace            Goals for 2010                  Achievements for 2010     Commitments for 2011            Employees              Goals for 2010                 Achievements for 2010        Commitments for 2011
                                                          ▪ We provided useful                                                                                             health and safety issues      information system –
                                                          advice on safety issues                                                                                          etc)                          option for employee
                                                          through OTENET’s site                                                                                                                          self-service procedures
                                                          for customers (http://                                                                                                                         (e.g. work leaves)
                                                          the ‘Abuse’ website went                              Internal Communication   ▪ Maximise the dialogue           ▪ 93 publications were        ▪ Further boost the
                                                          online that provides safe                                                      with employees via                issued on CR issues (40%      use of the Intranet
                                                          navigation information                                                         the Intranet (U-Link)             more than 2009)               (U-link) for internal
                                                          (spam, mail bombing,                                                           and exchange views                ▪ Surveys were carried        communication
                                                          hacking, port scanning,                                                        regarding CR practices.           out, with the participation   purposes and to
                                                          etc)                                                                                                             of employees, aiming          disseminate information
                                                                                                                                                                           at achieving greater          on CR issues
Procurement Policy      Next steps to be decided          ▪ Continued                 Consideration of                                                                     employee involvement in       ▪ Boost two-way
                        in 2010 Business Plan.            implementation of the       pilot social and                                                                     internal communication        communication
                                                          Procurement Policy          environmental audits.                                                                issues (Intranet user         channels with
                                                          introduced in 2009                                                                                               satisfaction survey, CR       employees (carry out
                                                          ▪ More effective                                                                                                 survey through U-link,        surveys, questionnaires,
                                                          management of suppliers                                                                                          satisfaction survey for       etc)
                                                          and improved procedures                                                                                          OTEch@t magazine,
                                                          for monitoring and                                                                                               providing comment forms
                                                          assessing their                                                                                                  regarding various other
                                                          performance.                                                                                                     internal communication
                                                          ▪ Capacity of entering                                                                                           actions
                                                          into DT Frame
                                                          Agreements and capacity                                      Society               Goals for 2010                 Achievements for 2010        Commitments for 2011
                                                          of participating in                                   Corporate Volunteerism   Continue volunteerism             ▪ We boosted the              ▪ Continue the OTE
                                                          international tenders of                              Programmes               programmes                        overall ‘OTE                  Employee Volunteer
                                                          the DT Group                                                                   implemented by OTE                Employee Volunteerism         Blood Donation
                                                                                                                                         and assess the first              Programme’ by:                programme
      Employees             Goals for 2010                  Achievements for 2010     Commitments for 2011                               results and level of              1. Creating the ‘ATHENS       ▪ Boost the ‘OTE
Employee satisfaction   ▪ To design and                   ▪ We successfully           ▪ Full expansion and                               participation of the              2011 OTE Volunteerism         Employee Volunteerism
and training            implement e-learning              completed the employee      operation of the HR                                new “Corporate                    Team’, in the framework       Programme’
                        sessions for employees,           e-learning training         HelpDesk service                                   Volunteering                      of the Company’s
                        on various issues,                programme on regulatory     ▪ Potential integration                            Programme”                        sponsorship of the
                        such as matters                   compliance                  of employee survey into                                                              ‘ATHENS 2011 Special
                        of compliance                     ▪ Pilot operation of        a broader Deutsche                                                                   Olympics World Games’
                        ▪ To continue the                 new HR Help Desk, to        Telekom Group survey                                                                 2. Organising an event,
                        employees satisfaction            cover employee needs        ▪ Development of                                                                     with the participation
                        survey                            & questions (payroll,       HCM (Human Capital                                                                   of employees and their
                                                          pension, compensation,      Management)                                                                          families, in cooperation
                                                                                                                                                                           with NGO ‘ANIMA’
                                                    -40-                                                                                                               -41-
                                 Corporate Responsibility & Business Strategy                                                                       Corporate Responsibility & Business Strategy

        Society            Goals for 2010                 Achievements for 2010      Commitments for 2011             Environment             Goals for 2010                 Achievements for 2010       Commitments for 2011
                                                         ▪ We achieved increased                                                          nationwide.                       company “Appliances          programmes
                                                         blood donations during                                                           ▪ To sign the                     Recycling S.A.”              nationwide.
                                                         the OTE Employee                                                                 ECOELASTIKA                       ▪ Signature of a
                                                         Volunteer Blood                                                                  contract for the                  nationwide contract
                                                         Donation                                                                         alternative management            with the company
                                                         ▪ OTE Employee Cultural                                                          of the used tires of our          “ECOELASTIKA S.A.”
                                                         Centres organised                                                                vehicles                          ▪ 14% reduction of paper
                                                         local actions for the                                                                                              consumption
                                                         environment, on the                                                                                                ▪ The “PAPIROS”
                                                         occasion of ‘World                                                                                                 information system (for
                                                         Environment Day,’                                                                                                  the e-management of
                                                         with the participation                                                                                             paperwork) became fully
                                                         of employees and their                                                                                             operational
                                                                                                                 Renewable Energy         To promote the further            Completion of a              ▪ The assessment
OTE’s CR Website       ▪ Inform all                      ▪ The special micro-site    ▪ Modify how                Sources (RES)            use of RES.                       preliminary study on the     of potential roof-
                       stakeholders on the               (         the Corporate                                                                          possibilities for wind       top PV projects, the
                       Company’s Corporate               went online for the first   Responsibility actions                                                                 energy exploitation.         authorization and
                       Responsibility actions            time for the 2010 CR        are displayed in the                                                                                                finally the installation
                       ▪ Create a micro-                 Report, within OTE’s        framework of re-                                                                                                    of these projects (total
                       site, within corporate            official website            designing OTE’s official                                                                                            capacity of 200 kW) in
                       website (              ▪ We started re-designing   website                                                                                                             buildings in Attica and/
                       cr2009) dedicated to              the company’s official      ▪ Capability of online                                                                                              or other areas where no
                       OTE’s CR activities,              website          reporting                                                                                                           grid restrictions apply.
                       aiming at improving                                                                                                                                                               ▪ The assessment of
                       information provision to                                                                                                                                                          wind energy potential
                       the public.                                                                                                                                                                       in sites where
     Environment           Goals for 2010                 Achievements for 2010      Commitments for 2011                                                                                                equipment was or is
Ecological Footprint   Further expansion of              Documentation of the        ▪ Further expansion of                                                                                              installed
                       the detailed recording            ecological footprint of     the detailed recording of
                       of the nationwide                 the selected buildings in   the ecological footprint    Energy conservation in   ▪ Continue installing:            ▪ Finalization of a          ▪ Pilot project of energy
                       ecological footprint.             Attica and Telec. Region    to include the Telec.       buildings                (a) VRV systems,                  preliminary study for the    saving measures,
                                                         of Northern Greece and      Region of Islands.                                   (b) Free cooling systems          investigation of potential   through Energy Service
                                                         expansion of footprint      ▪ Disaggregating of the                              and (c) low energy                improvements in the          Companies (ESCOs), in
                                                         calculations to include     calculated footprint to                              consumption bulbs.                efficiency of energy use     three buildings in Attica
                                                         Telec. Region of Southern   specific end-uses.                                   ▪ To use natural gas              in buildings A building      ▪ The connection of 6
                                                         and Western Greece.                                                              in more than 6 buildings          of a total area of 16,000    buildings in Attica to
                                                                                                                                          in Attica.                        m2, incorporating energy     the natural gas network.
Materials and waste    ▪ To expand the scope of          ▪ Nationwide expansion      To expand the scope of                                                                 conservation techniques      ▪ Continue installing:
management             recycling programs                of the contract with the    paper recycling                                                                        has been constructed in      (a) VRV systems, (b)
                                                       -42-                                                                                                   -43-
                                    Corporate Responsibility & Business Strategy                                                           Corporate Responsibility & Business Strategy

      Environment             Goals for 2010                 Achievements for 2010    Commitments for 2011        Environment        Goals for 2010                 Achievements for 2010   Commitments for 2011
                          ▪ Continue the                   Patras                     Free cooling systems                       corresponding visits
                          installation of low              ▪ All necessary studies    and (c) low energy                        ▪ an intelligent, real-
                          energy consumption               for the connection of      consumption bulbs                         time routing system
                          bulbs                            specific OTE buildings                                               reducing distance
                                                           in Attica to the natural                                             traveled.
                                                           gas transmission network
                                                           have been finalized

Building Management       Completion of BMS                The installation of BMS    BMS installation in the
System (BMS)              installation at OTE’ s           in OTE’s Administration    other 2 buildings of
                          Administration Building          Building is completed      Attica.
                                                           and studies for BMS
                                                           installation in 2 other
                                                           buildings of Attica have
                                                           been finalised.

Environmental             To design and develop a          Certification of           Start up of the design
Management System         centralized EMS                  management systems for     and development
(EMS)                                                      2010.                      process for a centralized
                                                                                      Management System
                                                                                      for OTE.

Environmental data        Evaluation of the Credit         Use of the Credit 360      Design and pilot
collecting system         360 Data Collecting              Data Collecting System     operation of a system
                          System and design                for additional OTE KPIs    for environmental data
                          of an intra-company              and reporting needs.       collection and creation
                          environmental data                                          of related reports
                          collection and archiving                                    (reporting system)
                          system, if necessary.

Reduction of road         In the context of the            ▪ Remote testing tools     ▪ Further develop
transportation activity   Workforce Management             already installed in all   diagnostic capabilities
                          project of SPP (WFM),            Call Centers and in use    to achieve even higher
                          development of:                  ▪ Specifications for       remote resolution rates
                          ▪ a system to resolve            system fully developed     ▪ Pilot application of
                          a greater level of                                          platform to first field
                          customer-related                                            units by end of year, in
                          technical issues on the                                     view of full launch in
                          remotely, avoiding                                          2012
                                                             -44-                                                                                                                     -45-
                                          Corporate Responsibility & Business Strategy                                                                             Corporate Responsibility & Business Strategy

         staKehoLdeR engageMent                                                                                                      nationaL & inteRnationaL

OTE considers that the cultivation of a systematic                 To read about the main issues raised through the dia-         rESEarCh prOGramS                                                   parTiCipaTiOnS
stakeholder dialogue in line with the principles of                logue with the stakeholders you can see the “Stake-     Part of OTE’s strategy consists in the active partici-               in aSSOCiaTiOnS – fOrum
the “ΑΑ 1000 AccountAbility Principles Standard” is                holder engagement table” and the “Corporate Re-         pation regarding the elaboration – implementation of            OTE, in its capacity as member, makes an active con-
very important. The company, records the most im-                  sponsibility Survey”, by visiting:   contemporary European and national research pro-                tribution in European, as well as international Organi-
portant issues identified by the various stakeholders              cr2010_en. The evaluation of the findings from the      grams, which promote technological applications in              sations, such as:
(customers, providers, NGO’s, media, ect), ensuring                annual Survey provides feedback for “Building Ties”     the electronic communications sectors, according to             > ETNO (European Telecommunica-
that they are addressed. The various stakeholders are              with stakeholders and for further development of the    the needs and the requests of the European commu-
identified through the assessment of the telecommu-                constructive dialogue in the following years.
                                                                                                                                                                                             tions Network Operators’ Associa-
                                                                                                                           nities and economy. In 2010, ΟΤΕ participated in 5
nications environment and the parameters that define               The following chart depicts the most important stake-                                                                     tion)
                                                                                                                           European Community Research Programs, as well as
it each time. ΟΤΕ readjusts its practices with flexibil-           holders for OTE:                                        in National Research Programs, while it participated
                                                                                                                                                                                           > GeSI (Global e-Sustainability Initia-
ity, by adopting mechanisms of systematic or ad hoc                                                                        in 7 Conferences and Workshops, such as:                          tive)
contacts and enriching the list depending on current                                                                                                                                       > EU Standby Initiative
                                                                                                                           > Self-NET (“Self-Management of
facts and developments.                                                                                                                                                                    > ITU (International Telecommunica-
                                                                                                                             Cognitive Future InterNET Ele-
                                                                                                                             ments”)                                                         tions Union)
                                                                                                                           > FUTON (“Fibre Optic Networks for                              > ETSI (European Telecommunica-
                                                                                                                             Distributed, Extendible Heterogene-                             tions Standards Institute)
                                                                                                                             ous Radio Architectures and Ser-                              > ADSL FORUM
                                       MEDIA              Employees
                                                                                Investors /
                                                                               Shareholders                                  vice Provisioning”)                                           > EURESCOM (European Institute for
                                                                                                                           > Participation in preparatory actions                            Research and Studies in Communi-
                                                                                                                             and submission of proposals for                                 cations)
                                       State /
                                       Country               ΟΤΕ
                                                                                 Local /
                                                                               Community /
                                                                                                                             funded national research programs
                                      Regulatory                                 NGO's
                                                                                                                             (Actions “SYNERGASIA” / ESPA
                                                                                                                             from GGET)

                                      Suppliers           Customers           Trade Unions /
                                                                                                                           For more information on OTE’s participation in “Re-
                                                                                                                           search Programs”, “Conferences and Workshops”,

                                                    Stakeholder map
               -46-                                 -47-
Building Ties with the Marketplace   Building Ties with the Marketplace
                                                           -48-                                                                                                                                 -49-
                                            Building Ties with the Marketplace                                                                                                   Building Ties with the Marketplace

                     BUiLding ties                                                                                        Payments for OTE
                                                                                                                          and subsidiaries
                With the MaRKetpLaCe                                                                                      (amounts in Euro millions) 2009*                     2010
                                                                                                                                                                                                    2010 was a difficult year for the Greek economy, but
                                                                                                                                                                                                    also for the economies of countries worldwide. OTE,
                                                                                                                           Salaries and benefits
                                                                                                                           (Bonus)                            1,244.2          1,167.1              always with the aim of maintaining the company's
                                                                                                                                                                                                    competitive edge, primarily focused on the following:
                                                                                                                           Income taxes paid                  382.4            238.9                > customer satisfaction
                                                                                                                                                                                                    > upgrading infrastructure
                                                                                                                           International provider                                                   > containing costs
                                                                                                                           charges                            184.0            190.3
OTE focuses on optimising the operation of its in-                    increasing its market share through                                                                                           > optimising corporate gains
frastructure, as well as on offering quality services,
                                                                      the planning, implementation and                     Domestic provider                                                        > developing and mobilising its em-
which constitute basic tools used by its customers as
                                                                      commercial promotion of innovative                   charges                            516.3            414.6                  ployees
part of their activities and in their daily life. Qual-                                                                                                                                             > equitable treatment by regulatory
ity, transparency, responsibility and social awareness
                                                                      and safe/reliable products, services
                                                                                                                           Telecommunications                                                         authorities
rank at the top of OTE’s marketplace priorities on a                  and integrated solutions that com-                   equipment cost                     475.1            447.3
daily basis.                                                          bine network and information tech-
                                                                                                                                                                                                    Further information is available in the 2009 Annual
OTE’s Marketplace priorities entail:                                  nologies.                                            Fees & commissions
                                                                                                                                                                                                    Report, at:
> The continuous improvement of                                                                                            due to third parties               1,190.4          1144.8
                                                                                                                                                                                                    vestorRelation/OTEIRMainPage and Annual Report
  customer satisfaction levels, by pro-                                   dirECT ECOnOmiC                                                                                                           2009. The aforementioned issues, including those of
                                                                                                                           Shareholder returns                410.9            39.6
  viding premium quality services and                                    COnTriBuTiOn Of OTE                                                                                                        interest to local communities and regarding the eco-
  customer support;                                                      and iTS SuBSidiariES                                                                                                       logical footprint, also cover the main questions posed
> The installation of active equipment                         OTE’s strong presence, which is not confined to           * Adjusted due to change in accounting policy (Note 32 of Dec 31, 2010     by OTE Stakeholders.
                                                                                                                         OTE IFRS report)
                                                               Greece but also encompasses South-East Europe
  (modem routers, Dslam, etc), both
                                                               through its subsidiaries, also serves to boost the mar-
  in outlying Regions as well as in At-
                                                               kets and economies of the countries where it operates,
  tica, in order to achieve higher con-                        as well as contributing towards their modernisation
  nection speeds;                                              and development, through the provision of innovative
> The development of a Next Genera-                            telecommunications products and services.
  tion Access (NGA) Network, with
  the aim of migrating to the new
  broadband networks faster and in a
  technically superior manner;
> The continuous improvement of
  operational performance, the com-
  petitive efficiency of sales networks
  and customer service operations;
> Proactively safeguarding and further
                                                           -50-                                                                                                -51-
                                            Building Ties with the Marketplace                                                                  Building Ties with the Marketplace

                      neW teChnoLogies
                       and BRoadBand

               nETwOrk                                          Broadband in Greece 2008       2009    2010

           and BrOadBand
                                                                 Points of presence 1,420      1,501   1,937
           infraSTruCTurE                                        (PoPs) of the ADSL                                                    Thessaloniki (128)
Recent years have witnessed the rapid expansion of               network
broadband penetration in Greece, which continued
apace in 2010. As a result, Greece is steadily improv-           LLU connections     650.00 987,300 1,380,000
ing its broadband ranking, gradually closing the gap
with the European average.                                       Percentage of        14.5% 17.5%      20.28%
Since early 2010, broadband penetration in Greece                broadband penetra-
has risen by 2.1 connections per 100 residents, and              tion (to the popula-
it is estimated that convergence with the rest of Eu-            tion)
rope will continue, as this upward trend is anticipated
to be significantly higher than the European average.
Those benefiting from this growth are citizens, com-
panies and the Greek economy in general.                       With the primary vehicle being conn-x, OTE re-                                               Attica (208)

In 2010, the opportunity to have access to Broad-              mains the primary driving force behind growth in
band has reached 96.6% of OTE’s connections (in-               new technologies in the country and the main choice
frastructure coverage). With broadband connections             of consumers opting for quality broadband services.
approaching 2,303,000 in the Greek market at the end           Specifically, in December 2010, OTE’s retail ADSL
of 2010 (20.28% penetration of the population), com-           customers surpassed 1,110,000 and the upward trend
pared to 1,916,630 at the end of 2009 (17% penetra-            recorded in the penetration of Broadband among
tion of the population), the broadband environment             OTE customers meant that the latter percentage rose
prevailing in Greece was shaped as set forth below:            to 30.89% by the end of 2010.

                                                                                                                     The map above shows the evolution of Ethernet dSlam’s presence nationwide
                                                            -52-                                                                                                                   -53-
                                             Building Ties with the Marketplace                                                                                     Building Ties with the Marketplace

    ExTEndinG BrOadBand dE-                                             EduCaTinG CiTizEnS                                          inTErnET SafETy                                    >      Manages      the
      livEry ThrOuGh ipTv                                               aBOuT BrOadBand                                  In 2010 OTE launched its new strategy regarding                      HTML/abuse.htm website, providing in-
The development of IPTV services by OTE also con-                     and nEw TEChnOlOGiES                               internet safety including a number of new initiatives                formation to Internet users concern-
tributes to the further expansion of broadband. Conn-           OTE has adopted an array of actions and initiatives      and aiming to position the company as a leader in this               ing safe browsing (spam, mail bomb-
x TV, OTE’s subscription television service, is al-             aimed at educating and familiarising the public with     area of CR. Specifically in 2010 OTE:
                                                                                                                                                                                              ing, hacking, port scanning, etc).
ready available at more than 460 points of presence of          broadband services, seeking to bridge both the digital   >   Published a special leaflet, titled                       For more information on “Internet Safety” provided
OTE’s network throughout Greece and is constantly               divide between urban centres and remote regions in           “Safely Surf the Internet”, provid-                       by OTE, visit:
expanding. These points of presence include all the             Greece as well as between Greece and other countries         ing simple and useful advice on the
major cities in the periphery, country towns, islands,          of the European Union.                                       proper and safe use of the Internet.                                TElECOmmuniCaTiOn
as well as smaller urban centres with even fewer                To that end, in 2010:
                                                                                                                         >   Organised information sessions on                                       OpEraTOrS
inhabitants. A search engine is available at “www.              >      We completed the Information”, where users can obtain information on
                                                                                                                             Safer Internet for OTE employees                          During 2010, the Greek Telecommunication Opera-
                                                                       Campaign targeted at consumers                        and their families                                        tors market continued to grow at quite a high rate as
whether OTE's television service is available in their
                                                                       and aiming at raising awareness                   >   Commenced planning for a number                           a result of increasing demand for broadband services;
area, by typing in their telephone number.
                                                                       regarding the capabilities offered                    of public briefing sessions on Safer                      thus OTE continued to play an active and seminal
                                                                       by the use of broadband. This cam-                                                                              role in this market. Currently, 47 mobile and fixed-
BrOadBand dEvElOpmEnTS                                                                                                       Internet issues, to start in 2011, in
                                                                       paign was hosted at 88 specially                                                                                line telecommunications operators are active in the
     in ThE rEGiOnS                                                                                                          cooperation with the medical advi-                        overall Greek telecommunications market, of which
OTE continues to place special emphasis on develop-                    designated areas (Internet Corners)                   sor of the Adolescent Health Unit                         16 are interconnected to OTE's telephone network,
ing the necessary infrastructure, even in regions with                 that operated within OTESHOP                      >   Participates in Greek Awareness                           while 7 providers mainly operate LLU (Local Loop
low population density, so that all citizens can have                  stores, informing more than 7,000                     Centre and in the                        Unbundling) Services.
access to new technologies and especially broadband.                   citizens about broadband services.                    Safenet non-profit organisation                           For more information on the service portfolio provid-
Furthermore, through its satellite broadband Internet           >      The ‘Computer Re-Use Programme'                                                                                 ed to the Telecommunication Operators, visit: www.
                                                                                                                         >   Continued it’s sponsoring and sup-
service and the Hellas Sat satellite, OTE’s broad-                     spanning the entire country was                                                                       
band services are now available in even more areas
                                                                                                                             port of the “Adolescent Health Unit’
                                                                       continued for the 5th year, promot-                   of the 2nd Paediatric Clinic of the
of Greece. Moreover, in 2010, OTE has put WiMAX
                                                                       ing the reuse of computers and                        University of Athens at the ‘Pedon
                                                                                                                                                                                           faulT rEpOrTinG CEnTrE
systems into operation in:
                                                                       other technological equipment at                      P. & A. KYRIAKOU”
                                                                                                                                                                                           fOr TElECOmmuniCaTiOn
>    Agion Oros
                                                                       schools and Non-Governmental                      >   Offers the technical infrastructure of
>    Thessaloniki
                                                                       Organisations.                                        the toll-free ‘YpoSTIRIZO’ Help Line
>    Ioannina                                                                                                                                                                          During 2010, OTE focused on more effectively man-
                                                                >      OTE sponsored for the 7th consec-                     number (80011 80015 ).
>    The greater region of Attica                                                                                                                                                      aging its relationship with Operators and on improv-
                                                                       utive year, the ‘LISIAS’ Pan-Hellenic             >   Developed the 'Online Protection'
>    Samos island                                                                                                                                                                      ing the quality of the services provided. Significant
                                                                       School Contest, in which more than                    service, offering integrated e-mail
>    Zagoroxoria                                                                                                                                                                       efforts were made to systematically monitor and ana-
For more information on Broadband developments
                                                                       40.000 pupils participated. The                       and computer protection with the                          lyse the Operators market, with the aim of identify-
in the regions you can visit:                       contest teaches fairness between                      use of the Firewall, Anti-Virus and                       ing trends and recording emerging client needs, by
cr2010_en                                                              pupils with regard to subjects re-                    Anti-Spam applications.                                   accurately determining and studying each customer's
                                                                       lating to their interests and school              >   Provides a section with useful advice                     individual profile. In 2010, the number of Wholesale
                                                                       knowledge, while getting acquaint-                                                                              Line Rental Services faults addressed was 5.630, of
                                                                                                                             on security issues on the OTENET
                                                                       ed with new technologies, at the                                                                                which only 73 took more than 20 days to resolve.
                                                                                                                             customer service website, at http://                      Specifically, in 2010 OTE:
                                                                       same time.                                  
                                                        -54-                                                                              -55-
                                         Building Ties with the Marketplace                                                Building Ties with the Marketplace

> Upgraded the services provided to
  the operators, by offering numerous
  services such as: electronic submis-                                                                                seRViCe
  sion of applications, the publication
  of statistical data and reports, etc
> Completed the W-CRM system
> Continued the operation of the 'Pro-
  vider Fault Reporting Centre’
  on a 24/7, 365 days/year basis,
  providing after sales support and                                           OTE continued its efforts towards enhancing the                                   COmplainTS
                                                                              quality of its customer service, which contributes to-
  significantly improved the response                                                                                                                           manaGEmEnT
                                                                              wards consolidating the company's leading position
  and recovery time                                                                                                                           Responding to our customers' feedback and needs in
                                                                              in the market within a constantly shifting business
> Ensured, to the greatest extent pos-                                                                                                        a consistent and reliable manner, OTE makes every
                                                                                                                                              effort to immediately resolve complaints and avert
  sible, our compliance with regula-                                          Apart from the OTE Group Store network and the on-
                                                                                                                                              any customer dissatisfaction, in order to provide the
  tory requirements                                                           line ‘’ store, which serve thousands
                                                                                                                                              best level of customer service.
For more information on the services offered by the                           of customers on a daily basis, OTE has established an
                                                                                                                                              Since 2008, OTE has been operating the 'Complaints
“Fault Reporting Centre”, visit:                           array of specialised call centres designed to meet its
                                                                                                                                              Management System', which covers          the contact
cr2010_en                                                                     clients’ needs. OTE’s call centres are certified accord-
                                                                                                                                              points where requests are recorded such as OTE-
                                                                              ing to the ISO 9001:2000 standard, while they are
                                                                                                                                              SHOP stores, the '134' number in Thessaloniki, the
                                                                              equipped with fully trained staff and state-of-the-art
                                                                                                                                              Customer Support Group, the Regional Telecom-
                                                                              technological equipment. Moreover, OTE’s Custom-
                                                                                                                                              munications Departments and ancillary services, and
                                                                              er Care employees are supported by the latest CRM
                                                                                                                                              provides useful statistical data. The majority of com-
                                                                              (Customer Relationship Management) applications.
                                                                                                                                              plaints submitted in 2010 concerned:
                                                                              In 2010 the team of 30 Telecommunications Advi-
                                                                                                                                              > Activation of products / services
                                                                              sors, which was formed in 2009, continued its’ op-
                                                                              eration, providing support to major corporate cus-
                                                                                                                                                (e.g. in how many days will the
                                                                              tomers, resolving day-to-day issues, thus improving               phone line be activated, when will
                                                                              the promptness of its response to technical support               the Internet connection work, etc)
                                                                              requests.                                                       > Billing issues (e.g. not understand-
                                                                              As a testament to OTE’s high quality services offered,            ing charges)
                                                                              during 2010, 47.500 customers returned to OTE from              > Technical issues (e.g. why is my
                                                                              other Telecommunications Operators.
                                                                                                                                                Internet connection interrupted,
                                                                                                                                                why does the router not achieve the
                                                                                                                                                maximum connection speeds, etc.)
                                                                                                                                              The management of all complaints was performed
                                                                                                                                              with the aim of providing the optimum level of cus-
                                                                                                                                              tomer service. In 2010, the average percentage of
                                                                -56-                                                                                                                               -57-
                                                 Building Ties with the Marketplace                                                                                                 Building Ties with the Marketplace

written complaints to which we responded within 20                                    STOrE nETwOrk                           well as the customer service numbers offered by tel-                            approach focusing on malfunctions
days was 90%, while the majority of oral complaints                                                                           ecommunication operators .
                                                                    OTE offers its’ customers a range of technologically                                                                                      restoration time, monitoring restora-
were resolved within 2 days.                                        sophisticated products and services through an exten-                                                                                     tion process , and personnel profes-
                                                                    sive branch network, in order to meet all of its cus-               GEnEral findinGS
    100%                                                                                                                                                                                                      sionalism
                                                                    tomers’ needs and expectations. Currently, the OTE        In 2010, a total of approximately 12.000 clients, across
                                                                    Store Network comprises:                                  all of our segments (residential, corporate, business,
                     91%      92%
                                                                                                                              telecommunication operators and special audiences)
                                                                                                                                                                                                                 OBSErvaTiOnS On Cr
                                                                    > 202 OTESHOP stores (Telecom-                                                                                                     The Corporate Responsibility programme imple-
                                                                                                                              participated in the Barometer survey.
                                                                      munications Commercial Stores,                                                                                                   mented by OTE significantly affects the opinion of
                                                                                                                              Overall, the most important findings concerned custom-
                                                                      nationwide coverage)                                                                                                             customers on OTE:
                                                                                                                              er service, prices, products and image of the company.
                                                                    > 18 OTESHOP stores (Franchises)                          The customers focused mainly on matters such as:                         > 68% of Residential Customers
                                                                    > 440 GERMANOS stores                                     > Promotion of packages that com-                                        > 75% of Business Customers
                                                                    For more information on the “Store Network” and                                                                                    > 60% of Corporate Customers
                                                                                                                                bine services (Double, Triple, Quad-
    0%                                                              other customer services offered by call centres, visit:                                                                            From the above results it emerges that the existence of
                  2008     2009     2010
                                                                                                                                rant Play)
                                                                                                                                                                                                       a Corporate Responsibility programme influences the
           % Complaints resolved within 20 days                     page/portal/OTESHOP/MainPageOTESHOP                       > Launch of new products that will
                                                                                                                                                                                                       intent to purchase products and that there is a trend
                                                                                                                                meet customers’ needs with em-                                         for a shifting of interest towards the environment and
Moreover, the Voice Portal & Voice Recognition Ser-                          STOrE CErTifiCaTiOnS                               phasis on offers to improve «value                                     vulnerable social groups.
vices Department of the Home Customer Services                      In 2010, the number of OTESHOP (Telecommu-                  for money»                                                             For more information on the “Customer Satisfaction
Division maintains a record of cases of non-compli-                 nications Commercial Stores) certified according          > Improving image and reputation                                         and Loyalty Barometer”, visit:
ance regarding customer service. When cases of non-                 to the ELOT EN ISO 9001:2008 standard (quality              towards innovation, differentiation                                    cr2010_en
compliance are recorded, special administrative pro-                management system), stood at 127 nationwide. The
                                                                                                                                and modernity, in order to attract
cedures are followed to resolve them. In 2010, there                certification process ensures the provision of quality                                                                                        prOduCTS-SErviCES
                                                                                                                                more “dynamic” and “energetic”
were 15 such cases, which involved:                                 controlled services, which undergo continuous re-
                                                                                                                                audiences that show more “active”                                                 fOr SpECial GrOupS
> 6 requests by Health Clinics (our                                 assessment and improvement.
                                                                                                                                                                                                       OTE, respecting the needs of all citizens, has devel-
  customers) for the provision of data                                                                                                                                                                 oped an array of programmes targeting special groups
                                                                         CuSTOmEr SaTiSfaCTiOn                                > Improvement of customer-centric
  and information regarding appoint-                                                                                                                                                                   of the population. Specifically:
  ments booked by citizens                                               and lOyalTy BarOmETEr
                                                                    The ‘CUSTOMER SATISFACTION AND LOYAL-
> 2 requests on application operation
                                                                    TY BAROMETER’ survey, which has been conduct-
  errors due to connectivity
                                                                    ed by OTE over the last 5 years, involves the plan-
> 3 requests on application errors due                              ning, development and application of a system for
                                                                                                                                                                                                                                      People with
                                                                                                                                                                                                                                       over 67%
  to application upgrades                                           measuring the total experience and loyalty of OTE's
> 4 requests of citizen complaints                                  customer base, and it offers the company yet another
  and provision of information to the                               tool in its strategic planning operations.
  public regarding IVR operation                                    The survey includes measurements, both quantitative                                               28%                      39%                       31%   0,3%

  (automatic voice recognition system                               as well as qualitative, targeting residential, business                      People with visual         People with a             kidney disease                     People
                                                                                                                                                   impairments              severe motor                 patients                      with other
  for booking appointments, offered                                 and corporate customers, as well as surveys target-                                                       handicap                                                 disabilities

                                                                    ing ‘special audiences’: ‘11888’ (directory enquiries),
  through the Voice Portal).
                                                                    ‘134’ (call centre), '121’ (fault reporting centre), as                                      number of people with Special needs offered discounts
                                                      -58-                                                                                                      -59-
                                       Building Ties with the Marketplace                                                                        Building Ties with the Marketplace

Product                  Description                                                                       OThEr innOvaTivE SErviCES                           the Presidential Decrees, bringing
Free ADSL connection     For the sixth consecutive year (2010), OTE offered free ‘Conn-x’ Internet         > Health Line – 1535” In 2010,                      them into force
to excelling students    packages to excelling undergraduate and postgraduate students. Specifically,
                                                                                                                3.400.000 calls were made to the             > The Supplier is under the obligation
                         OTE offers free Internet access for a year to the five students scoring the
                         highest marks in the entrance examinations for admission to every university           Health Line, and 2.121.000 resulted            to compensate OTE for any dam-
                         course, as well as to the five top-ranking students of every course of every           in an appointment.                             ages that may arise from an in-
                         academic year or semester, who achieved academic excellence during the            > OTE Health Portal (www.healthpag-                 fringement of the WEEE, RoHS and
                         academic year 2009-2010.                                                      In 2010 OTE’s health portal            ICNIRP Directives in regard to the
                                                                                                                received 31.155 hits.                          materials that OTE has procured
Conn-x for students      OTE gives all students the possibility to acquire a broadband Internet
                         connection, via ADSL access, at advantageous rates. 15,411 students made
                                                                                                           > 112 Phone Line: A toll-free emer-                 from it, even in those cases where
                         use of this right in 2010 (against 979 in 2009), in accordance with the                gency number one can dial both                 the materials solely and exclusively
                         specifications of the ‘Diodos’ Action.                                                 from a landline as well as a mobile            bear OTE’s trademark
                                                                                                                phone, from all EU Member-States. > The Supplier is under the obligation
Tele-assistance          The target market of the ‘Immediate Alert’ (OTEALERT) service is people           For more information on “Innovative services” of-   to submit the legally mandatory cer-
                         whose physical condition causes them to require assistance and constant           fered by OTE, visit:    tifications or attestations of compli-
                         monitoring (the elderly, people with special needs etc.) and it numbers more
                         than 1,000 subscribing clients to date.                                                                                               ance for the procured materials to
                                                                                                               prOduCT rESpOnSiBiliTy                          the Product & Applications Division.
Teleworking              It gives the option to users (of remote areas, with special needs etc.) to            and markETinG iSSuES                                 In regard to incidences of non-compliance with the
                         interact in real time, with data, sound and image capability, thus creating an    The equipment accompanying the products offered          regulations and non-binding codes of ethics on mar-
                         state-of-the-art tele-collaboration environment in their working area, which      by OTE:                                                  keting communications, including advertising, prod-
                         could be at their home.                                                           > Has been certified and bears the                       uct promotion and sponsorship, 5 regulatory proceed-
                                                                                                             mandatory markings required under                      ings were brought against OTE and its products in
Tele-medicine through    This service is implemented at Mental Health Clinics, such as ‘KLIMAKA’,                                                                   2010 (compared to 3 in 2009), of which:
                                                                                                             EU legislation
Video-Conferencing       through the interconnection of Drug Rehabilitation Centres, located on
                                                                                                           > Does not contain hazardous sub-                        > 1 was judged to be founded in the
                         islands, with the specialised staff of ‘KLIMAKA' clinic in Athens. This
                         application is also operated at EKAV (Hellenic Emergency Medical Service),          stances                                                  law and in the merits
                         on a pilot basis, interconnecting islands (Health Centres of Tinos and Samos)     > Complies with EU Directive                             > 2 were judged to be unfounded in
                         with the EKAV Department in Elefsina, with the aim of the interchange of            2002/95/EC on the restriction of                         the law and in the merits
                         opinions and expertise between specialised staff and country doctors.               the use of certain hazardous sub-                      > In 2 cases it was judged that a man-
                                                                                                             stances in electrical and electronic                     datory prerequisite is to be the im-
Customer Service Call    The help line for the deaf (18855) provides its services to people with hearing
Centre for Deaf People   impairments, through special devices for people who are hard of hearing.            equipment                                                mediate modification of the Conn-x
                         Calls made to the 18855 number from OTE landlines nationwide are charged          > Is accompanied by detailed instruc-                      connection status report.
                         at the local rate.                                                                  tions for their safe use                               For its part, in 2010 OTE filed 6 regulatory proceed-
                                                                                                                                                                    ings against other providers, of which:
                                                                                                           > Consistently complies with regula-
                                                                                                             tions and directives concerning the                    > 2 were judged to be unfounded in
                                                                                                             provision of information and mark-                       the law and in the merits
                                                                                                             ings                                                   > In 4 cases the provider was ordered
                                                                                                           > Complies with the WEEE, RoHS                             to modify its promotional message.
                                                                                                                                                                    Further information is available at the SEE website:
                                                                                                             and ICNIRP Directives, as well as
                                                            -60-                                                                            -61-
                                             Building Ties with the Marketplace                                              Building Ties with the Marketplace

            daTa SECuriTy
              & privaCy
The OTE Group General Division of Regulatory
Compliance and the OTE Regulatory Compliance
                                                                                         pRoCedURes - ContRaCting
Committee were set up in 2010 and entrusted with the
main mission of the support, verification and assur-
ance of implementation of Regulatory Compliance
Policies, in the framework of the Regulatory Compli-
ance Management System. In 2010, 477 employees
were trained in combating corruption.
                                                                                  OTE’s new Procurement Regulation has been in effect             their monitoring and assessment;
In 2010, the main activities led by the Regulatory
                                                                                  since 2009. The Procurement Regulation conforms
Compliance Division in this area included:                                                                                                      > Improve the company’s negotiating
                                                                                  to the new trends prevailing in the supplier market,
> Development and application of                                                                                                                  skills with suppliers;
                                                                                  best practices applied by major telecommunications
  an integrated data and information                                              operators worldwide, as well as OTE's internal needs
                                                                                                                                                > Determine the procurement pur-
  privacy and security protection and                                             and business targets.                                           pose and the most suitable manner
  management system.                                                              Specifically, the new Procurement Regulation com-               to meet the procurement need;
> Investments in the use of the latest                                            plies with all environmental and social protection            > Ensure the participation of new
  technical, logistical and administra-                                           provisions, of both Greek and European Union legis-             suppliers in the company’s procure-
  tive tools, in order to ensure confi-                                           lation, while it introduces an array of new procedures          ment processes (tender proce-
  dentiality in telecommunications.                                               and revisions to older procedures, aiming to:                   dures).
> Offering to assist and support na-                                              > Decrease the required time be-
  tional authorities conducting investi-                                            tween procurement demand and                                                  SuBCOnTraCTEd
  gations against electronic crime.                                                 supply;                                                                          prOjECTS
> Raising awareness about the impor-                                              > Achieve significant discounts;                              All company projects are implemented with the par-

  tance of the confidentiality of infor-                                          > Reduce overall procurement costs,                           ticipation of external contractors, which are based on
                                                                                    taking into account all factors affect-                     the tender procedure. They are supervised by OTE
  mation, including among company
                                                                                    ing costs;                                                  engineers in collaboration with the Handover Com-
  employees, by conducting internal                                                                                                             mittee (which is established following a relevant de-
  communication campaigns.                                                        > Improve procurement planning and,
                                                                                                                                                cision for each project separately). OTE engineers are
> Essential upgrading of Data Secu-                                                 as a consequence, achieve a more
                                                                                                                                                responsible for the qualitative and quantitative hand-
  rity Systems, through a revision of                                               rationalised use of the company's                           over (temporary and final) of the project. Among oth-
  the methodology and procedures                                                    financial resources;                                        ers, they verify quantities, materials, dimensions and
  followed.                                                                       > Achieve greater flexibility in deci-                        completion times of each project milestone, in view
                                                                                    sion-making and supplier selection                          of ensuring that the procedures and technical specifi-
                                                                                    processes;                                                  cations specified in the tender books are adhered to.
                                                                                  > More effectively manage suppliers                           Moreover OTE, consistently honouring its commit-
                                                                                                                                                ments for supporting the growth of Rural Regions
                                                                                    and apply improved procedures for
                                                        -62-                                                                             -63-
                                         Building Ties with the Marketplace                                               Building Ties with the Marketplace

and among the local communities where it operates,
assigned the implementation of various projects to                                                              RegULatoRY
638 local contractors, for 2010.
 Year                              2009 2010
 Projects Sub-Contracted following
 Tender Procedures                 638      467

                                                                              OTE aspires towards fostering long-term value, re-             > Supports its positions during dis-
                                                                              paying its customers for the trust they place in the
                                                                                                                                               cussions on the incorporation of
                                                                              company and maintaining its high standard of busi-
                                                                                                                                               the new European regulatory frame-
                                                                              ness practices, so that it is in a position to respond
                                                                              to any regulatory matters that may arise. OTE abides
                                                                                                                                               work into national legislation, as well
                                                                              by the law and fulfils its legal requirements, while             as on the framework of competition
                                                                              concurrently actively monitoring and participating in            law.
                                                                              both national and European developments and prac-              > Strives for unbiased treatment by
                                                                              tices being shaped in the framework of public policy             the regulatory authorities, with the
                                                                              deliberations.                                                   aim of achieving the lifting of regula-
                                                                              The Greek electronic communications sector is reg-               tory requirements placed on depart-
                                                                              ulated in accordance with the European Regulatory
                                                                                                                                               ments, provided that the competi-
                                                                              Framework, as the latter has been incorporated into
                                                                                                                                               tion is grown adequately.
                                                                              national legislation, which consists of Laws, Presi-
                                                                              dential Decrees, Ministerial Decisions and the De-
                                                                                                                                             > Supports its positions before na-
                                                                              cisions of independent administrative authorities,               tional and European regulatory
                                                                              which receive legislative codification.                          authorities, bodies and judicial
                                                                              The regulatory framework affects the operation and               authorities on issues pertaining to
                                                                              relations of OTE with consumers, the decisions                   competition law.
                                                                              adopted in relation to planned investments in infra-           > Ensures it effectively conforms to
                                                                              structure, the technologies and services. For that rea-
                                                                                                                                               regulatory requirements, always
                                                                              son, OTE:
                                                                                                                                               bearing the company's best inter-
                                                                              > Collaborates with the Regulatory
                                                                                                                                               ests in mind.
                                                                                Authority and the State in order to
                                                                                                                                             > Complies with regulatory require-
                                                                                formulate a policy that will encour-
                                                                                                                                               ments and participates in shaping
                                                                                age investments, especially invest-
                                                                                                                                               the national and European regulato-
                                                                                ments in next-generation access
                                                                                                                                               ry framework, through the positions
                                                                                network infrastructure, and that will
                                                                                                                                               it adopts at national and European
                                                                                boost healthy competition.
                                                                                                                                               discussions on regulatory matters.
                                                           -64-                                                                                                               -65-
                                            Building Ties with the Marketplace                                                                                 Building Ties with the Marketplace

Specifically, in the strategic context of ensuring a    > ITU (International Telecommunica-                        > The total value of imposed fines
regulatory framework that will serve as a long-term
                                                              tions Union);                                          stands at EUR 1,208.67
instrument of economic development, safeguarding
                                                        > The Internet Governance Forum,                           OTE has filed appeals before the competent Courts of
the interests of the company and OTE customers and
                                                              as well as other forums or organisa-                 Law, seeking the annulment of the EETT decisions.
contributing towards social prosperity, OTE collabo-
                                                                                                                   In brief:
rates with:                                                   tions promoting issues such as con-
> The Hellenic Telecommunications                             sumer protection, communications                      Year                   2009           2010
     and Post Commission (EETT)                               security and developing synergies
                                                              among various partners operating                      Cases in litigation    20             1
> The Hellenic Authority for Communi-
     cation Security and Privacy (ADAE)                       in the field of electronic communi-
                                                                                                                    Fines                  14             29
> The Hellenic Data Protection Au-                            cations, with the aim of creating a
     thority (APPD)                                           reliable regulatory framework for the                 Non-pecuniary
> The Hellenic Competition Commis-                            electronic communications sector.                     penalties              7              8
                                                        For more information on OTE’s participation in
                                                        working groups and consultations, visit:        Value of fines         13 million €   1,208,674 €
> The Greek National Council for Ra-
     dio and Television (ESR)
> The Greek Ministry of Infrastructure,                      rEGulaTOry liTiGaTiOnS                                In 2010 the regulatory authority EETT called for a
     Transport and Networks                             Regarding the total number of litigations concerning       consultation requesting the participation of the Min-
> The Greek Ministry of Development the breach of competition law, the enforcement of an-                          istry for Infrastructure, Transport and Networks and

> The Greek Ministry of the Environ-                    ti-trust legislation and the prohibition of monopolistic   every other co-competent Ministry, concerning the

                                                        behaviour, during 2010 we filed one (1) appeal before      subject of further expansion of OTE’s towards Peo-
     ment, Energy and Climate Change
                                                        the Administrative Court of Appeals of Athens. In to-      ple with Special Needs. OTE participated in the con-
> Other Ministries, as the case may
                                                                                                                   sultation, the results of which have not yet been an-
     be, for ensuring a proper regulatory tal, OTE was subjected to the following in 2010:                         nounced.
     framework                                          > 27 fines, of which twenty five (25)
                                                              concern the construction of anten-
 parTiCipaTiOn in EurOpEan                                    nas, one (1) concerned an infringe-
  and inTErnaTiOnal pOliCy                                    ment pertaining to Incumbent Pro-
                     fOrumS                                   vider obligations and one (1) was
OTE, in its capacity as member, makes an active con-          imposed for a breach of the provi-
tribution in European, as well as international Organi-       sions of telecommunications legisla-
sations, such as:                                             tion in regard to the offer of certain
> ETNO (European Telecommunica-                               flat-rate plans.
     tions Network Operators’ Asso-                     > 8 non-pecuniary penalties, of which:
     ciation), where it has one elected                       6 concern flat-rate plans and 2 con-
     Chairperson in the Internet Govern-                      cern collocation issues.
     ance Working Group;                                > 2 fines have been imposed by
              -66-                               -67-
Building Ties with our Employees   Building Ties with our Employees
                                                         -68-                                                                                                           -69-
                                           Building Ties with our Employees                                                                               Building Ties with our Employees

                         BUiLding ties                                                                                  different issues of concern to them
                                                                                                                        (salary, additional benefits, etc.)
                                                                                                                                                                      During 2010, the main advances in QMS Certifica-
                                                                                                                                                                      tions were:

                      With oUR eMpLoYees                                                                           > Establishment and implementation > Improvement of Environmental
                                                                                                                                                                           Management Systems, accord-
                                                                                                                        of a new payroll system for indefinite
                                                                                                                        term employees hired before 2005                   ing to International Standard ISO
                                                                                                                        (from 1 January 2010), and of an-                  14001:2004 for two Departments:
                                                                                                                        other one for temporary employees                  the Department of Maintenance
                                                                                                                        (from 1 March 2010).                               and Repairs of the Transportation
                                                                                                                   > Establishment and implementation                      Means Unit (General Directorate for
OTE remains one of the largest employers in Greece           Permanent & indefinite term employees                      of a new internal job-posting policy               Regions) and the Customer Techni-
with almost 11,000 employees. The performance and            (31 Dec 2010)
                                                                                                                        for filling vacant positions.                      cal Support Department (General
development of OTE employees is intrinsic to the               Age            M             F             Total                                                            Directorate for Corporate and Busi-
                                                                                                                   > Hiring of 68 regular employees with
company’s performance, especially in the challeng-                                                                                                                         ness Customers).
ing economic era facing Greece.
                                                               20-24          9             11            20            different specialties at OTE depart-
                                                                                                                        ments throughout Greece.                      > Improvement of Occupational
OTE’s strategic goals in employee policies and prac-           25-29          203           224           427                                                              Health and Safety Management
                                                                                                                   > Provision of internships at OTE
tices are to increase the company’s competitiveness                                                                                                                        Systems, according to ELOT
and ensure a quality, safe and productive working en-
                                                                                                                        Departments to 907 students while
                                                               30-34          886           494           1,380
                                                                                                                        they complete their studies.                       1801:2008 - OHSAS 18001: 2007
vironment where employees can develop their talents
                                                               35-39          781           412           1,193    > Implementation of training/e-learn-                   standard, for two Departments:
and contribute to the company’s modernisation.
                                                                                                                        ing sessions on various issues,                    the Department of Maintenance
In 2010, the milestones in OTE’s employee policies
                                                               40-44          990           700           1,690         such as Compliance Management                      and Repairs of the Transporta-
and practices were:
                                                                                                                        System, Corporate Security, etc.                   tion Means Unit and the Customer
> Implementation of a voluntary de-                            45-49          1,647         656           2,303
                                                                                                                   > Intranet use, in such a way that                      Technical Support Department.
  parture program for 461 employ-
                                                               50-54          2,202         340           2,542         “U-link” is establishing itself as the        > Design, Development and Imple-
                                                                                                                        primary internal communication tool                mentation of a Quality Management
> Implementation of a Corporate Col-
                                                               55-59          1,128         141           1,269         for OTE employees.                                 System, according to International
  lective Labour Agreement between
                                                                                                                   > Prospect of integration of the OTE                    Standard ISO 9001: 2008 for a)
  OTE and OME-OTE for the incorpo-                             60-64          74            22            96
                                                                                                                        employee survey into a broader                     Internal Protection and Prevention
  ration of OTENET employees into
                                                               65+            1             4             5             Deutsche Telekom Group survey.                     Services (ESYPP) to be implement-
  the OTE Personnel Internal Regu-
                                                                                                                                                                           ed regarding occupational health
  lation (hereinafter PIR-OTE), the
                                                               TOTAL          7,921         3,004         10,925          QualiTy manaGEmEnT                               and safety and b) the Attica Sales
  Transfer Regulation and the OTE
                                                                                                                                 SySTEmS (QmS)                             Support Unit (SYPA).
  Personnel Payroll.                                                   personnel distribution per gender and age
                                                                                                                   OTE is committed to continuous improvement of > Creation of the annual nationwide
> Completion of the pilot implementa-
                                                                                                                   Quality Management Systems, according to Interna-       program for measurement of the
  tion of HR Helpdesk services, es-                                                                                tional Standard ISO 9001:2008 for 127 (Telecommu-       Electro-magnetic Field at OTE build-
  tablished to provide quick solutions                                                                             nications Commercial Stores) and 15 Administrative      ings.
  to Human Resources issues and                                                                                    Departments.
  aiming at informing employees on
                                                   -70-                                                                                                    -71-
                                     Building Ties with our Employees                                                                        Building Ties with our Employees

QMS auditing in 2010                           agers and executives, on the devel-              > The percentage of evaluated em-
> Independent certified internal audi-         opment and implementation of ISO                   ployees by gender was:
   tors carried out 75 internal audits at      9001:2004 Quality Management                          -Men: 72% (7,928)
   scheduled time intervals, in order          Systems, ISO 14001:2004 Envi-                         -Women: 28% (3,065)
   to locate Non-Compliances and to            ronmental Management Systems                     The resulting difference between the total number of
   take corrective measures, in ac-            and ELOT 1801:2008 Occupational                  permanent and indefinite term employees and the to-
   cordance with the requirements of           Health and Safety Management                     tal number of employees evaluated is due to changes
   the Quality Management Systems.                                                              in the number of employees during the year (i.e. re-
> 6 internal audits were performed                                                              tirement).
                                          > Planning and implementation, in
   at scheduled time intervals in order        cooperation with the Hellenic Man-
   to locate Non-compliances and to                                                                         OvErviEw
                                               agement Association (EEDE), of
   take corrective measures, in ac-                                                                    Of OTE’S wOrkfOrCE
                                               seminars on the EFQM Business                    OTE has a diverse workforce located across the coun-
   cordance with the requirements of           Excellence Model and in the context              try. In 2010 the overall profile of our workforce is as
   the Environmental Management                of Corporate Responsibility, Man-                follows:
   Systems, based on the International         agement of Knowledge and Exter-                  > 13,139 employees, of whom
   ISO 14001:2004 Standard and Oc-             nal Resources.                                     10,925 (83.2%) are permanent
   cupational Health and Safety Man-      > Participation in the “Committed                       and indefinite term employees and
   agement Systems, in accordance              to Excellence” programme of the                    2,214 (16.8%) are temporary con-
   with the ELOT 1801:2008 standard.           EFQM Business Excellence Model                     tract employees.
> 4 audits were performed by an                for European certification.                      > Of the total workforce, 5,434 em-
   external Certification Body (ELOT)                                                             ployees (41%) are located in the
   in order to locate Non-compliances                      EmplOyEE                               Attica region of Greece, and 59% in
   and to take corrective measures, in            EvaluaTiOn SySTEm                               the rest of the country.
   accordance with the requirements       In 2010, OTE continued to use the annual evaluation
                                                                                                > Of the 10,925 permanent and in-
   of the Environmental Management        system for the company’s human resources. All em-
                                                                                                  definite term employees, 146 (1.3%)
   Systems, based on the International ployees undergoing evaluation are immediately in-          are working part-time.
   ISO 14001:2004 Standard and the formed of their performance and discuss it with their        > Women comprise 27.5% of perma-
                                          evaluator during the personal interviews.
   Occupational Health and Safety                                                                 nent and indefinite term employees.
                                          > In 2010, 1,103 executives and the
   Management Systems, in accord-                                                               > Women hold 274 (24%) of the com-
                                               entire non-executive personnel of
   ance with the ELOT 1801:2008                                                                   pany’s management positions.
                                               the company were evaluated.
                                          > Participation of non-executive per-
QMS training in 2010
                                               sonnel reached 95.8%. Of these
> Briefings were given by executives           9,890 employees that were evalu-
   from the Department of Administra-          ated, only 171 (1.7%) filed an objec-
   tion & Quality, to Department man-          tion.
                                                       -72-                                                                          -73-
                                         Building Ties with our Employees                                              Building Ties with our Employees

                                                                                                      heaLth & saFetY

                                                    178       2,036         Occupational health and safety is one of OTE’s most          Employee participation and consultation with the em-
                                              Full-Time       Part-Time
                                            employment        employment    important priorities, and everyone is aware that the         ployer -a key legislative provision - produces more
                                                                            creation and preservation of a healthy and safe work         results and is recognised, when it is incorporated into
                                                                            environment for employees, associates, customers             an organised operational framework that aims to ben-
                                             Total Temporary Fixed-Term     and visitors plays an important role in the company’s        efit employees and company alike. To that purpose,
                                                       2,214                growth.                                                      the Company operates 63 Occupational Health and
                                                                            To that purpose, the Company is committed to:                Safety Commissions at national level, in which 173
                                 Temporary personnel per employment type
                                                                            > Implement all relevant Legislation                         elected members participate.
                                                                              and Regulatory Provisions.                                 All OTE employees have access to the Occupational
                                                                            > Create a set of principles for shap-                       Health and Safety Policy through the intranet (U-
                                                                              ing an occupational health and                             link), so that they can be informed on all relevant is-
                                                                              safety culture.                                            sues.
                                                10,779         146
                                              Full-Time        Part -Time
                                            employment         employment   > Design, promote and implement
                                                                              programmes for improving occupa-                                            main aCTiOnS
                                                                                                                                         Health & Safety performance in 2010
                                                                              tional health and safety.
                                                                                                                                         > Effective management of occupa-
                                                Total Regular Personnel     > Systematically train all employees in
                                                        10,925                                                                             tional hazards in the workplace,
                                                                              the principles and practices of oc-
                                                                                                                                           aiming at decreasing Occupational
                                                                              cupational health and safety.
                                                                                                                                           Accidents and Occupational Illness-
                                  regular personnel per employment type     > Encourage and support the partici-
                                                                              pation of employees in the improve-
                                                                                                                                         > Provided first aid, at special health-
                                                                              ment of occupational health and
                                                                                                                                           care areas, to 1,543 employees
                                                                                                                                           (compared to 1,610 in 2009) by 11
                                                                            > Use of safe equipment, as well as of
                                                                                                                                           OTE doctors.
                                                                              personal protection materials and
                                                                                                                                         > Carried out 15,868 medical ex-
                                                                                                                                           aminations (compared to 13,755 in
                                                                            > Develop collaborations on occupa-
For more information on OTE’s workforce and                                                                                                2009), on 4,001 employees (com-
                                                                              tional health and safety issues.
graphs,                                                                                                  pared to 3,414 in 2009), by 8 OTE
                                                       -74-                                                                                                         -75-
                                         Building Ties with our Employees                                                                             Building Ties with our Employees

  occupational doctors.                                      quit smoking can obtain information
> Carried out 63 (45 in 2009) Occu-                          by the OTE occupational doctors.
  pational Hazard Evaluation Studies                       > The Civil Emergency Planning &
  and 7 Electro-Magnetic Field level                         Fire Safety Department, in the
  measurements for OTE buildings.                            framework of training provided to
> Carried out 3,554 inspections (com-                        OTE employees on fire safety – fire
  pared to 3,713 in 2009) in work-                           prevention issues (theoretical and
  areas, by 12 safety technicians and                        practical training) during 2010 and
  8 occupational doctors.                                    in cooperation with local depart-
> Participation in the development of                        ments and Fire Fighting services,                                     95
  workplace safety standards (e.g.                           conducted the following training                         90

  Telecommunications Commercial                              sessions at 3 main OTE buildings:                        80

  Stores, Personal Protection Gear),                       For more information on OTE’s Health & Safety,             70                         67

  equipment and materials (e.g. se-                        visit:                         60
  lect protective shoes for profession-                                                                               50

  al use by technical crews).                                               OCCupaTiOnal                              40
                                                                             aCCidEnTS                                                                                                                  31
Health & Safety training and communication in 2010                                                                    30
                                                           The following graphs show the number and the per-                                                                             27        28
> Conducted training programmes on                         centage of occupational accidents (of total employ-        20                                                                      20

  health and safety issues and carried                     ees), as well as the total number of calendar days lost    10
                                                                                                                                    4                 3
                                                                                                                                             1                 1                                   1
  out seminars and conferences for                         due to occupational accidents during 2010 compared         0

  personnel categories nationwide.                         to preceding years.                                                  1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

  125 employees were trained on                                                                                            Number of Occupational Accidents
  health and safety issues, with a total                                                                                   Fatal Accidents

  of 955 man-hours of training.                                                                                                  OTE personnel Occupational accidents 1999-2010
> Carried out briefings by safety tech-
  nicians and occupational doctors at
  various work areas.
> Developed collaborations with other
  bodies (Occupational Health and
  Safety Committee, Labour Inspec-
  tion Authority, Ministry, Health and
  Safety Institutes, labour unions,
  insurance bodies etc.).
> Created a help line (1256) through
  which OTE employees wishing to
                                  -76-                                                                                                 -77-
                    Building Ties with our Employees                                                                     Building Ties with our Employees

                                                                             Number of occupational accidents by gender, in 2010
2010                                                          0.26%

                                                                              Men                                          20
2009                                                           0.27%

                                                                              Women                                        9

2008                                                   0.24%

                                                                             Also, in 2010, of the total number of occupational ac-
2007                                      0.18%                              cidents, the number of accidents that occurred during
                                                                             work hours was 21 (15 men and 6 women), while the
2006                                                 0.23%                   number of accidents that occurred during the jour-
                                                                             ney from home to work and vice versa was 8 (5 men
2005                                                   0.24%                 and 3 women).

2004                                                     0.25%

2003                                                               0.29%

   accident percentage 2003 - 2010 (of all the employees)

 2004                                                            197

 2005                                                            456

 2006                                                            883

 2007                                                            934

 2008                                                            231

 2009                                                            1,023

 2010                                                            694

        0        500         1000         1500         2000           2500

            Days lost due to Occupational Accidents
            Subsequent days lost due to Occupational Accidents
            Total days lost due to Occupational Accidents

  Time lost (in calendar days) due to Occupational accidents
                                                           -78-                                                                                                           -79-
                                             Building Ties with our Employees                                                                               Building Ties with our Employees

                eqUaL oppoRtUnities
               and non-disCRiMination

                                                                                                                          Chief Executive Officer                                                        -

                                                                                                                               General Directors                                                         2
OTE applies its policy for equal opportunities and             only under no risk, but protected in the best possible
total respect for human rights to all its employees.           manner in our Company, with the full implementation        Ass. General Directors                                                         -
In this particularly sensitive area, in order to rise to       of all the stipulated legislative provisions. All com-
the challenges and needs of our time, OTE has estab-           pany employees, regardless of the work they perform,                     Managers                                                         3
lished a strong internal regulatory framework, which           are covered by agreements that are based on collec-
is based on:                                                   tive negotiations.                                           Assistant Managers                                                           35
> The OTE Personnel Internal Regula-                           Company employees are immediately informed of
  tion (PIR-OTE)                                               important operational changes, through the Intranet,         Department Heads
                                                               but also through the notification of important Com-
> The Company’s Code of Ethics &                                                                                                                                                                         869
                                                               pany decisions directly to Departments.                                      Total                                                        274
  Business Conduct                                                                                                                                                                                       1,143
                                                               No discrimination incident was reported in 2010 or 2009.
> The ‘Compliance Management Sys-                              The average age of OTE employees (regular person-
  tem’ (since July 2009) and approval                          nel) is 45.46 years.
  of a Policy on Averting Conflicts of                                                                                                                    M
                                                                 Average age of OTE employees (regular                                                    F
  Interest & Combating Corruption,                               personnel) per gender

  as of 17 December 2010 (Imple-                                 Male                                    46.71                                          positions of responsibility per gender
  mentation in 2011).
Further information regarding these Codes, can be                Female                                  42.17
found on the following website:
portal/page/portal/InvestorRelation/CorporateGov-              The following diagrams show OTE personnel gender
ernance/diafaneiapliroforisi/codeofethics                      distribution with respect to governance bodies and
                                                               positions of responsibility, as well as male-female
The regulatory framework prohibits the use of child            distribution for all OTE personnel for 2010.
labour or the employment of youths for hazardous                 Governance Bodies
                                                                 by Gender, 2010         M       F          Total
work.                                                                                                                                           72.5%                                            27.5%
According to the Personnel Internal Regulation (PIR-             Board of Directors       10       0          10
                                                                                                                               Male                                                                            Female
OTE) “the company respects and guarantees the                                                                                 (7,921)                                                                          (3,004)
                                                                 Board Committees         6        0          6
freedom of political and philosophical beliefs, to the
extent specified by the Constitution and applicable
                                                                 Management Team          12       2          14
legislation.” The right to freely carry out trade-union
activities and collective labour negotiations, is not                           Governance Bodies by gender                                              personnel distribution per gender
                                                           -80-                                                                                                                                      -81-
                                             Building Ties with our Employees                                                                                                          Building Ties with our Employees

      BaSiC and addiTiOnal                                     The Company’s Management decides and approves                   Employment field

                                                               recruitments, following the announcement of the job         9
            BEnEfiTS                                                                                                       2
                                                               openings and after the choice of the successful can-            Specialised
All regular (permanent and indefinite term) OTE                                                                          199
                                                               didate, in accordance with the procedure and criteria
personnel have basic benefits (salary, pension, life                                                                      68
                                                               specified for each case.
insurance, medical coverage and disability cover-                                                                        205
age). Also, on a case by case basis, OTE offers its            In 2010, there were 98 recruitments (of which ap-               Administrative

employees a number of additional benefits, beyond              proximately 70 were made also on grounds of local-
those stipulated under Greek law, aiming at achieving          ity) and 542 terminations (of which 461 concerned               Financial

a work-life balance.                                           departures with incentives).                                2
Specifically:                                                  The Company’s policy on personnel recruitment does
                                                                                                                               From Otenet
> Mutual Benefit Fund, personal                                not discriminate against social groups (e.g. women,         1
  loans, youth account, childcare                              people with disabilities, people with religious beliefs     4
  expenses etc.                                                other than the official religion recognised under the           Other categories

> Additional group life, inability to                          Constitution, foreign nationals, people with certain      542
                                                               distinctive social characteristics etc).
  work and hospital and outpatient                                                                                             TOTAL

  health insurance coverage                                    Job openings are posted on a specialised website                    Recruitments         Comments

> Lump sum of EUR25,000 to all em-                             ( as well as on the Company’s website.                  Terminations         461 Terminations with incentives

  ployees who have nine children
                                                                 Educational Level                             Number                                              number of terminations & new recruitments per field
> A free computer and printer to all
                                                                 Elementary                                    2
  employees who have four children
> Financial rewards to employees that                            Secondary                                     29
  attain degrees from Universities,
  Technical Colleges and in foreign                              Technological                                 44
  languages                                                                                                              For more information, Recruitment and Termination,
                                                                 University                                    17        visit:
> Executives holding positions of
  responsibility are given a company                             Post-graduate                                 6
  mobile phone                                                                                                                               SpECial hirES
> There is a Stock Option Plan avail-                                           Educational level of new recruits        OTE employs 344 people with special needs, 34 of
                                                                                      (regular personnel)                which have Positions of Responsibility.
  able to 2,7% of the OTE’s employ-
  ees.                                                                                                                    Positions of responsibility 2009                          2010
                                                                                                                          Head of sections                       14                 16
          and TErminaTiOn                                                                                                 Project managers                       24                 18
At OTE there is no gender discrimination regarding
                                                                                                                          TOTAL                                  38                 34
remuneration of any kind.
Employees’ basic salary is calculated based on their
                                                                                                                                             Employees with special needs
years in employment and educational level.                                                                                                   at positions of responsibility
                                                           -82-                                                                                                               -83-
                                             Building Ties with our Employees                                                                                   Building Ties with our Employees

                  tRaining pRogRaMMes                                                                                            inteRnaL CoMMUniCation

OTE’s training programmes aim at upgrading and                   Average training hours per year by gender,            The company’s priority is to provide accurate and                             inTranET
promoting the new training philosophy that teaches               in 2010                                               continuous information to all employees and boost          Year on year, OTE’s intranet, the “U-link”, is estab-
multiple skills and necessary techniques regarding               Men                                       28.92       cooperation, team spirit and cohesion between em-          lishing itself as the primary internal communication
good communication and the provision of quality                                                                        ployees, which are achieved through a number of            tool for OTE employees, remaining committed to its
customer services, as well as the more efficient pro-            Women                                     111.50      communication tools such as:                               goal to inform employees in a timely and direct man-
motion of Company products and services.                                                                                                                                          ner, as well as to facilitate their access to information
In the effort to better train as well as familiarise hu-                        average training hours                                 OTE Ch@T                                   and encourage cooperation between company depart-
                                                               Also, in 2010 and in cooperation with OTEAcademy,       Since December 2007, when it was first published,
man resources with specialised knowledge that re-                                                                                                                                 ments.
                                                               mandatory for all employees, e-learning courses on      the official internal magazine of employees, “OTE
sults in better adaptation to the company’s develop-                                                                                                                              In 2010:
                                                               Security Awareness were provided, aiming at pro-        Ch@t”, has been issued every 3 months.
ment goals OTE has created a systematic training                                                                                                                                  > The number of employees with U-
                                                               viding in-depth training and awareness to all OTE       > In 2010, a total of 64,000 issues
cycle consisting of the following stages:                                                                                                                                           link access amounted to 10,400 (an
                                                               employees on security issues (7,672 participants).
> Diagnosis of training needs                                                                                            (compared to 69,000 in 2009) were                          increase of 9.5%).
> Planning - designing training pro-                           The number of employees that were classroom trained       sent to employee homes, OTE                              > 66 new topics and more than 1,500
                                                               on Compliance issues (combating Corruption) was
  grammes                                                                                                                Cultural Centres, OTESHOP stores,                          new documents were added to the
                                                               477, from a total of 586 employees (in scope), with a
> Implementation of training and edu-                                                                                    as well as representatives of Group                        intranet site.
                                                               participation percentage of 81,40%.
  cation programmes                                                                                                      subsidiaries.                                            > 27 promotional actions, in total,
                                                               The Security Personnel Administration Department,
> Evaluation of training activities                                                                                    > A permanent cross-corporate team                           through banners (27% increase
                                                               in cooperation with OTEAcademy, provided training
                                                                                                                         of 14 members from all the Gen-                            compared to 2009).
 Training                           2009      2010             to Security Personnel (94 units) from 20 April 2010
                                                               to 13 May 2010, on “Basic Principles of Installations
                                                                                                                         eral Directorates, plus a 6-member                       > Τhe employee team that represents
 Total training hours               158,430 135,368
                                                               Security”.                                                editing team, work on writing the                          the company’s Departments and
 Average training hours                                        For more information on OTE’s Training Pro-               magazine, which covers a variety                           contributes to the publication of the
 per year, per trainee              24        23               grammes, visit:               of subjects, whereas about 111                             intranet topics, now consists of 382
                                                                                                                         employees, in total, participated                          executives (an increase of 9%).
 Total trainees                     6,853     5,895                                                                      in 2010 in drafting the magazine’s                       > Τhe first electronic survey was
                                                                                                                         content.                                                   conducted regarding employee
                    Total training hours
                                                                                                                                                                                    satisfaction from using the com-
                                                                                                                                                                                    pany’s intranet site, which found
                                                          -84-                                                                                                                     -85-
                                            Building Ties with our Employees                                                                                         Building Ties with our Employees

    that 70.2% of participants evaluated                      > Employee Health and Safety Issues                        Organisational structure of the system, Policies, Risk          ΟΤΕ Action             Description / Information
                                                                                                                         assessment etc.
    U-link as “very satisfying to excep-                      > Internet Safety Issues                                                                                                   Organisation for       ▪ 2 Vacation centres
                                                                                                                         Further information on these programmes is available            OTE Employee           ▪ collaboration with selected
    tional” and 94% as “quite to very                         > Actions of OTE Employee Cultural
                                                                                                                         in the Corporate Governance section.                            Vacation Centres       hotels throughout Greece
    important” for the company. The                             Centres and OTE Choirs
                                                                                                                         Growth Strategic Programme (7 crucial projects)                 (OPAKE-OTE)            ▪ in 2010, approximately
    survey’s results are used to further                      > 51 e-mails on several internal em-                                                                                                              13,700 people used these
                                                                                                                         A dynamic programme for the restructuring of the
    develop the U-link system and en-                           ployee information issues were sent                                                                                                             programmes
                                                                                                                         company, in order to successfully handle modern
    rich its topics in 2011.                                    in 2010 (compared to 39 in 2009)                         challenges, covering seven subject areas and four
In 2010, U-link became the basic communication ve-                                                                                                                                       OTE Employee           ▪ 53 Employee Cultural
                                                                                                                         individual targets, for which the executives of OTE
hicle for raising employee awareness on Corporate                       inTErnal CampaiGnS                                                                                               Cultural Centres       Centres (art, entertainment,
                                                                                                                         were briefed.
Responsibility issues, providing detailed informa-            Through U-link, as well as through printed material                                                                                               sports)
                                                                                                                         For more information on OTE’s Internal Campaigns,
tion regarding OTE’s Corporate Responsibility Pro-                                                                                                                                                              ▪ Approximately 20,000
                                                              (posters, publications etc.), we carried out the follow-   visit:
gramme and guaranteeing easy employee access to                                                                                                                                                                 active members
                                                              ing programmes, supported by internal campaigns,
the relevant available material (Corporate Responsi-          for briefing and training of OTE employees:
                                                                                                                                       pErSOnnEl                                         OTE Choirs             ▪ Participation in concerts
bility document and Annual Corporate Responsibility
                                                              Corporate Security Programme                                           EnTErTainmEnT                                                              and Festivals in Greece and
Reports, etc).
                                                              An awareness programme for all OTE employees on            Activities and initiatives provided to employees so                                    worldwide.
Indicatively, in 2010, 93 relevant publications of            issues regarding the protection of Company property        that they can make creative use of their free time are                                 ▪ Participation in the 3rd
items on CR were made (40% more than in 2009).                (material and immaterial) and minimising the possi-        supported by OTE, as they help in balancing pro-                                       International Choir Festival
For more information on OTE’s Internal Communi-               bility of damage caused by hazards, aiming at creat-       fessional and family life, which is an important ele-                                  in Istanbul with 4 concerts
cation, visit:                    ing a security culture.                                    ment of the company’s culture, values and principles.
                                                              Detailed updates, through the intranet, can be found       More specifically:                                              Europe Corporate       ▪ 153 employees / athletes
        COmmuniCaTiOn                                         in specific sections such as:                                                                                              Games                  ▪ 10 sports events
         On COrpOraTE                                         >     IT Security                                                                                                                                 ▪ 48 personal metals
                                                              >     Systems & Networks Security                                                                                                                 ▪ 6 corporate awards
      rESpOnSiBiliTy iSSuES
Through U-link, OTE’s website, as well as through             >     Physical Access Security
                                                                                                                                                                                         Raffles: Automated     ▪ 45 raffles
the corporate magazine, the Annual Corporate Re-              >     Fire Safety                                                                                                          electronic raffle      ▪ 32,146 participations
sponsibility Report and other CR documents, the CR
                                                              Anti-smoking Programme                                                                                                     system for             ▪ 1,973 tickets awarded for
Section and OTE’s management inform employees
                                                              Measures, aiming at implementing a smoking ban in                                                                          participation in       sports events / concerts /
on developments and initiatives, such as:                                                                                                                                                events receiving       shows etc)
                                                              all closed company areas and helping employees per-
> OTE Employee Volunteerism Pro-                              manently quit smoking were introduced. A help line                                                                         OTE sponsorships
  gramme                                                      (1256) was also created, through which all employees
> OTE Employee Blood Donor Pro-                               wishing to quit smoking can obtain information from                                                                                   OTE Empoyee Entertainment actions

  gramme                                                      OTE occupational doctors.
> Volunteerism Programme for the                              Programme for the Compliance Management System
  World Games Special Olympics                                Information and reading material were posted on the
  ATHENS 2011                                                 intranet for the awareness of the company’s employ-
> OTE’s participation in the Europe                           ees regarding Compliance issues, such as:
                                                              Principles of the Compliance Management System,
  Corporate Games
               -86-                                -87-
Building Ties with the Enviroment   Building Ties with the Enviroment
                                                            -88-                                                                                                      -89-
                                             Building Ties with the Enviroment                                                                         Building Ties with the Enviroment

                     BUiLding ties                                                                                     > Develop products and services that
                                                                                                                         enable our customers to improve
                 With the enViRonMent                                                                                    their environmental performance.
                                                                                                                       > Actively participate in the on-going,
                                                                                                                         formal or informal, consultations
                                                                                                                         regarding climate change mitiga-
                                                                                                                         tion and environmental protection in
                                                                                                                       > Raise environmental awareness of
OTE acknowledges that businesses with a lead-                  associated with our operations, products and services     our employees and customers.
ing role in Europe are those that combine financial            taking into consideration: energy consumption, cli-
                                                                                                                       > Support actions and initiatives un-
growth with environmental protection and environ-              mate change and other gases emissions, raw materials
                                                                                                                         dertaken by environmental organi-
mental awareness in all aspects of its operation.              and waste management, water consumption, ozone
I this respect OTE recognizes its own responsibility           layer and electromagnetic radiation.
and aims to actively contribute to the mitigation of the       Aiming at the continuous improvement of our envi-
global environmental issues, such as climate change            ronmental performance, we:
and natural resources conservation. In this context, a         > Analyze, monitor and strive to sys-
series of initiatives and actions are being developed,           tematically improve the calculation
in line with international rules and practices, with
                                                                 of our environmental impact.
qualitative and measurable quantitative goals. OTE
                                                               > Design and implement measures
aims at decreasing the impact of its operations on the
environment, thus contributing to the establishment
                                                                 for reducing our environmental im-
of corporate environmental responsibility. To meet               pact by considering:
this objective, an integrated environmental policy and           - Rational use of energy, water
management scheme has been formulated with clear-                    and raw materials.
ly defined annual improvement benchmarks set each                - Promotion and utilization of Re-
year (see CR Goals & Achievements Table in this Re-                  newable Energy Sources.
port). At the same time we look for the design and               - Reduction of greenhouse and
development of products and services that enable our
                                                                     other gases emissions.
customers in reducing their environmental impacts.
                                                                 - Recycling of raw materials and
       EnvirOnmEnT pOliCy
The key elements of our environmental policy are
                                                                 - Minimization of any potential
compliance with environmental legislation in all as-                 impacts from electromagnetic
pects of our operation as well as in products / services             radiation.
developed and provided, monitoring and reporting of              - Environmental awareness
our environmental footprint, and the formulation of            > Invest in research & development
appropriate measures for reducing our footprint. In              through our participation in national
that context, we analyze the environmental impacts
                                                                 / international research programs.
                                                          -90-                                                                                                       -91-
                                           Building Ties with the Enviroment                                                                          Building Ties with the Enviroment

       MeasURing and RepoRting                                                                                         2010 compared to 2009 (e.g. heat-
                                                                                                                       ing degree-days in Athens for 2010
                                                                                                                                                                                days) that resulted in increased
                                                                                                                                                                                cooling needs.
       oUR enViRonMentaL iMpaCt                                                                                        were about 10% lower compared to                 The stemming of electricity consumption growth rate
                                                                                                                                                                        and its eventual transformation to a reduction of the
             and initiatiVes
                                                                                                                       2009 heating degree-days).
                                                                                                                                                                        electricity consumption to the extent that is techni-
                                                                                                                     > Fuel consumption for OTE owned
                                                                                                                                                                        cally and economically feasible, represent the key
                                                                                                                       vehicle fleet increased by 4% com-
                                                                                                                                                                        priorities of OTE.
                                                                                                                       pared to 2009, while transportation              Direct primary energy consumption for 2010 (exclud-
                                                                                                                       activity reduced by 7%. The specific             ing electricity consumption and district heating) is
                                                                                                                       consumption of vehicles running                  estimated at 168 TJ, and indirect primary energy con-
The environmental policy of OTE aims at the reduc-                EnvirOnmEnTal impaCTS                                on unleaded gasoline increased                   sumption (by allocating to OTE the energy consump-
tion of the environmental impacts associated with its
                                                                    frOm ThE OpEraTiOn                                 to 11 lt/100 km (from 10 lt/100 km               tion needed for the production of the electricity and
operation and the development of products and ser-
                                                                      Of OTE in GrEECE                                 in 2009, with the share of leaded                the district heating consumed by OTE) is estimated
vices that enable our customers to reduce their en-
                                                             This section provides an overview of the environmen-      gasoline decreasing continuously                 at 3,244 TJ.
vironmental impacts contributing in this way to the
                                                             tal performance of OTE in 2010. More details can be       as a result of the renewal of the vehi-                Fuel consumption (TJ)                    Electricity consumption (TJ)
improvement of the environmental state in Greece.                                                                                                                       120                                                                        1600
                                                             found in the online version of this report.
Accordingly, in this section of our CR Report we re-                                                                   cles' fleet.
                                                             In order to provide reliable and accurate information                                                      100                                                                       1500
port our Environmental impact and performance in                                                                     > Total electricity consumption of
                                                             regarding our environmental performance, an envi-                                                           80                                                                       1400
the following dimensions:                                                                                              OTE (1,380 TJ in 2010) increased
                                                             ronmental data collecting system has been developed.
> Environmental impacts from OTE This system was expanded in 2010 to cover discretely,                                 by 7% compared to 2009. This                      60                                                                       1300

  operations in Greece (energy con- apart from the regions of Attica and Northern Greece,                              trend is mainly attributed to: (a) The            40                                                                       1200

  sumption, greenhouse gases and the region of Southern & Western Greece.                                              increase of the services provided                 20                                                                       1100

  other gases emissions, raw materi-                                                                                   that in terms of data transferred                  0                                                                       1000
  als and waste management, water               EnErGy COnSumpTiOn                                                     was about 20% reaching 182 Gbit/s                          2007              2008             2009             2010

  consumption, ozone layer and elec- In 2010, total energy consumption of OTE amounted                                 in 2010; (b) The increase by 120%                        Liquid fuels for vehicles       Natural gas
                                                                                                                                                                                Heating diesel                  Electricity
  tromagnetic radiation)                 to 1,550 TJ. Energy consumption in 2010, excluding                            of the average access speed to the                       Diesel for stationary engines

> Measures for reducing our energy       diesel consumption in stationary engines (figures for
                                                                                                                       broadband network, which at the                                      fuels & Electricity Consumption
  use and GHG emissions (renewable the period 2007 – 2009 refer to planned tenders for                                 end of 2010 reached 9.43 Mbps                    For more information on Energy Consumption, visit:
                                         supplies, while figures for 2010 concern actual con-
  energy use, energy conservation,                                                                                     compared to 4.28 Mbps at the be-       
                                         sumption), increased by 6% compared to 2009 (from
  equipment and fleet initiatives, ener- 1,450 TJ in 2009 to 1,535 TJ in 2010). More specifi-                          ginning of 2010; (c) The increased
  gy-reducing products and services) cally:                                                                            co-installation with telecommunica-                           GhG and OThEr GaS
> Raw materials and waste manage-        > Fuel consumption for space heating                                          tion operators and (d) The higher                                 EmiSSiOnS
  ment policies and initiatives (techni-      in 2010 (heating diesel and natural                                      average summer temperatures pre-                 OTE launched, in 2007, a program for monitoring
  cal waste, paper use reduction and                                                                                   vailed in 2010 compared to 2009                  greenhouse gases (GHG) and other gases emissions
                                              gas) reduced by 18% compared
  recycling, equipment recycling, oils,                                                                                                                                 arising from its operation on a national and regional
                                              to 2009 as a result of space con-                                        (e.g. cooling degree-days in Athens
                                                                                                                                                                        level but also at individual buildings level. Under this
  batteries and tires, OTEShop recy-          solidation and the higher average                                        for 2010 were about 9% higher
                                                                                                                                                                        program direct emissions (scope 1) from fuel con-
  cling)                                      winter temperatures prevailed in                                         compared to 2009 cooling degree-                 sumption in OTE owned / controlled installations,
                                                            -92-                                                                                                                                             -93-
                                             Building Ties with the Enviroment                                                                                                                Building Ties with the Enviroment

vehicles, etc., and indirect emissions (scope 2) from          (360 t approximately). Recycling, through authorized                             OzOnE layEr                                                                                      EMISSIONS
electricity and district heating consumption are cov-          (for waste management) companies, represents the               OTE is gradually replacing old cooling systems op-                                                            GHG: 322,749 t CO2 eq
                                                                                                                                                                                                                                                  NOx: 809 t
ered.                                                          major management practice utilized by OTE. Exist-              erating with ozone depleting substance (ODS) as re-                                                                SO2: 1,815 t
In 2010, total GHG emissions from energy consump-                                                                                                                                                                                                 Cooling(1)
                                                               ing recycling programs cover the whole of technical            frigerants, while fire suppression systems use suppres-                                                           ODP: 193 kg
tion were estimated at 322,749 t CO2 eq (direct emis-          waste and about 37% of paper. Solid waste disposed             sants with zero ozone depleting potential (ODP).(1)                                                            GHG: 5,060 t CO2 eq
sions, i.e. emissions due to fuel consumption from             accounts for about 40% of the total waste generated.           The ODS (i.e. R22) quantity being replenished in                                          ENERGY                                             Fixed line telephony:
                                                                                                                                                                                                                                                                             3,857* 103 lines
sources owned or controlled by OTE, account for 4%                      Quantities (in t)                                     the existing cooling systems for 2010 in the regions
                                                                                                                                                                                                                 Electricity: 1380.4 Tj
                                                                                                                                                                                                                                                                          Broadband services:
                                                                                                                                                                                                                      Diesel: 83 Tj
of the total), presenting an increase of 6% compared            4000
                                                                                                                              of Attica, Northern Greece and Southern & West-                                     Natural gas: 8.3 Tj                 ΟΤΕ
                                                                                                                                                                                                                                                                         1,204* 103 subscribers
                                                                                                                                                                                                                   Gasoline: 76.9 Tj                                   Wholesale: 859 urban centers
to 2009. This increase is mainly attributed to the in-          3500
                                                                                                                              ern Greece amounted at 193 kg ODP (of which 79                                     District heating: 1.6 Tj                                   with co-installation
                                                                                                                                                                                                                                                                             Data transferred:
creased (by 7% compared to 2009) electricity con-               3000
                                                                                                                              kg ODP in Attica). The corresponding quantities re-                                                                                              182 Gbit/s
sumption.                                                       2500
                                                                                                                              plenished in 2009 for Attica were 162 kg, i.e. a 50%                                                                  WASTE
In addition, OTE continues and expands the program              2000
                                                                                                                              decrease of the ODS quantities being replenished is
                                                                                                                                                                                                                                           Special treatment: 263 t
                                                                                                                                                                                                                                       Technical waste: 1360 t / 1360 t(2)
(started in 2008) for the estimation of the environ-            1500
                                                                                                                              observed.                                                                                                     Paper: 1083 t / 396 t(2)
                                                                                                                                                                                                                                             Other domestic: 722 t
mental footprint at building level. Three additional            1000
                                                                                                                              Currently, HFC blends are utilized either for substi-
(to those already included in the program from the                500
                                                                                                                              tuting ODS or for installation in new cooling systems.                                           (1) Attica, Northern Greece, Southern & Western Greece
                                                                                                                                                                                                                                                 (2) Quantities recycled
regions of Attica and Northern Greece) buildings                    0
                                                                             2007              2008             2009   2010   The quantity replenished for 2010 in the regions of
from the region of Southern & Western Greece were                                                                             Attica, Northern Greece and Southern & Western
                                                                          Other domestic        Paper
included in the program in 2010.                                          Technical             Special treatment             Greece (about 3,100 kg of refrigerants) is equivalent                             For more graphs, visit:
The monitoring of emissions across the entire life cy-                                                                        to GHG emissions of 5,060 t CO2 eq approximately.(2)
cle of products and through the value chains of busi-                                       Solid waste Generated
                                                                                                                                     (1) Ozone depleting potential is measured as R12 equivalent.
nesses receives special attention in the context of vol-       For more information on Raw materials and waste                       The calculation of ODP for R22 is based on a factor of 0.055.                   mEaSurES fOr rEduCinG
untary and regulatory initiatives. In that context, OTE        management, visit:
                                                                                                                                   (2) Emissions of 1,550 t CO2 eq reported in the CR report for 2009
                                                                                                                                                  referred only to the region of Attica.                                  EnErGy uSE
is extending the scope of its emissions inventory so as                                                                                                                                                                and GhG EmiSSiOnS
to include estimates for indirect (scope 3) emissions                       waTEr COnSumpTiOn                                           ElECTrOmaGnETiC                                                         Climate change is a global problem affecting the en-
associated with its operation. At the moment, the                                                                                                                                                               vironment, the society and economic development.
                                                               In OTE, the use of water covers sanitation needs in                          radiaTiOn
emission sources quantified are solid waste disposal,          buildings and stores as well as catering and water                                                                                               According to the 4th Assessment Report of the In-
                                                                                                                              Our products bear all necessary labels foreseen by na-
leased vehicles for the transportation of executives /         supply of large buildings. Water consumption was                                                                                                 tergovernmental Panel on Climate Change (IPCC)
                                                                                                                              tional and EU legislation (see Building ties with the
employees and business air travels abroad.                     continuously decreasing from 2007 to 2009, but an                                                                                                climate change is already occurring and is related
                                                                                                                              Marketplace for more information).
For more information on GHG and other gas emis-                increase of 6% compared to 2009 was estimated in                                                                                                 to anthropogenic activities. Consequently at global,
                                                                                                                              In order to ensure that any potential impacts from
sions, visit:                      2010 (243,484 m3 in 2010, excluding water con-                                                                                                   EU and national levels, there are on-going formal or
                                                                                                                              electromagnetic radiation associated with the con-
                                                               sumption from privately owned wells). The causes               struction and operation of wireless communication                                 informal consultations regarding the formulation of
               SOlid waSTE                                     of this increase are under examination with the water          stations are mitigated we conduct environmental im-                               an effective set of policies and measures for climate
OTE solid wastes include those that require specific           provider.                                                      pact assessments. The cost of these studies amount-                               change mitigation not only at public but also at pri-
treatment (e.g. lubricants, stationary engines batter-         Wastewater from the operation of OTE refers to                 ed to 387,100 €. Nevertheless, there were fines im-                               vate level. OTE's contribution in dealing with the cli-
ies, racks with accessories that require special treat-        domestic wastewater, which is treated according to             posed on OTE for 2010 amounting to 35,646.16 €.                                   mate change consists of adopting practices to reduce
ment, fluorescent lamps), technical waste associated           area-specific processes (e.g. municipal wastewater                                                                                               emissions and developing products and services that
with material and equipment used by OTE and do-                facilities). No planned or unplanned water discharges                                                                                            contribute to GHG emissions reduction. At the same
mestic waste. Total generated solid waste amounted             to the environment took place during 2010.                                                                                                       time these practices have been found to contribute to
to 3,430 t in 2010, with printing paper (A4 paper)                                                                                                                                                              the reduction of the Company’s operating cost.
accounting for about 10% of total generated waste                                                                                                                                                               In this context, we aim at:
                                                   -94-                                                                                                   -95-
                                    Building Ties with the Enviroment                                                                      Building Ties with the Enviroment

> The utilization of Renewable Energy                tion with telephone directions result    In 2010 there were 420 audio conferences-and 110                        raw maTErialS
     Sources. OTE has installed and                                                           video-conferences for the operational needs of OTE
                                                     in a reduction of transportation                                                                             and waSTE manaGEmEnT
                                                                                              as well as 1351 audio conferences-and 25 video-con-
     operates 179 small photovoltaic                 needs. At national level, about 25%                                                                     The key principles of OTE’s policy regarding raw
                                                                                              ferences by business customers.
     units (total capacity 286.8 kW) since           of calls for fault correction (ADSL,                                                                    materials and waste management are summarized as
                                                                                              GHG emissions avoided as a result of the initiatives
     1994 to cover the electricity needs             fixed telephony and Land Loop                                                                           follows:
                                                                                              undertaken by OTE in 2010 are estimated at 6,000
     of its Rural Subscriber Radio repeat-           Unbundling connections) were                                                                            > Reduction of using materials whose
                                                                                              t CO2 eq (around 2% of total GHG emissions from
     ers and a larger photovoltaic unit              resolved by phone. The program           the operation of OTE in 2010). This reduction was
                                                                                                                                                               production has an impact on the
     at the Antikithira Police Station (20           (launched in 1999) for personnel         estimated taking into account recycling, use of re-              environment.
     kW). Also, the power for the wire-              commuting to and from their work-        newable energies, the operation of HELP-DESKs &                > Recycling of used material (e.g.
     less broadband network, WiMAX,                  place contributes also to the reduc-     Call Centers, services provided to telecommunication             paper).
                                                                                              Operators, natural gas penetration, teleconferences            > Reuse of materials either internally
     of Agion Oros, is supplied mostly by            tion of road transportation activity.
                                                                                              for the operational needs of OTE and personnel trans-            or through the collaboration with
     upgrading existing photovoltaic sys- > The design and development of
     tems and three small wind turbines              products and services that contrib-                                                                       authorized waste management enti-
                                                                                              In order to promote further RES exploitation and
     of 1kW each.                                    ute to climate change mitigation.                                                                         ties.
                                                                                              energy conservation in our installations, in the 2011
> The adoption of energy conserva-                   Infrastructure development and           budget of OTEestate (a subsidiary of OTE respon-
                                                                                                                                                             > Special treatment of waste that
     tion practices. The initiatives in              broadband expansion will guaran-         sible for the management of the Group’s real estate              contaminate the environment (e.g.
     place aim at: (a) energy conserva-              tee new, faster ways of communi-         assets and for the generation of incremental value               electronic equipment, lead batter-
     tion in buildings, (b) the efficient use        cation, employment and exchange          for the Group, through the efficient management and              ies, and materials that contain sub-
     of electricity in the telecommunica-            of information with indirect positive    commercial exploitation of its real estate portfolio)            stances dangerous to the environ-
                                                                                              amounts have been registered for the development of              ment).
     tion equipment and (c) the renewal              effects on environmental protection
                                                                                              wind energy and photovoltaic projects and for energy           > Public awareness to increase par-
     of other equipment used by OTE as               and GHG emissions reduction due          conservation interventions in three buildings in At-
     well as vehicles' fleet. A delay in the         to reduced transportation needs,                                                                          ticipation in recycling practices.
                                                                                                                                                             With a view to ensure the rational disposal of used
     implementation of the planned en-               raw materials conservation, etc.         In addition, OTE actively participates (through its
                                                                                                                                                             materials (and their potential reuse), we have in place
     ergy conservation intervention was              The provision of services imple-         membership to European and international organiza-
                                                                                                                                                             programs for the alternative management of the used
     evidenced in 2010.                              mented through teleconferences,          tions, see Building ties with the Marketplace for more
                                                                                                                                                             materials. In that context OTE has signed contracts
OTE signed, in 2010, the Code of Conduct on Broad-   internet services and e-applications     information) in the public consultation for climate
                                                                                                                                                             with authorized solid waste management entities. The
band Equipment developed in the framework of the     (for internal needs as well as for our   change mitigation. In this context, OTE, as a member
                                                                                                                                                             scope of these contracts includes:
“EU Standby Initiative” of the European Commis-                                               of the Global e-Sustainability Initiative (GeSI), signed
                                                     customers), VLANs contribute to                                                                         > Technical waste. There is a central-
sion. In accordance to the Code, OTE commit itself                                            the Guadalajara ICT Declaration for Transformative
                                                     this direction as well as the broader                                                                     ized system for the management
to follow current, and any future, guidance on power                                          Low-Carbon Solutions, regarding the contribution of
consumption of broadband equipment used in its net-
                                                     implementation of the SIZEFXIS           the ICT sector to climate change mitigation.                     of technical waste through the
work but also by its customers.                      program and its expansion (SIZEFX-       For more information on Measures for reducing ener-              Central Warehouse of OTE in Par-
> The reduction of road transporta-                  IS ΙΙ).                                  gy use and GHG emissions, visit:              nitha. In 2010, 1,257 t of technical
   tion activity. The development and                                                         cr2010_en                                                        waste was forwarded to ELVAN for
   the operation of «HELP-DESK» and                                                                                                                            further processing. In addition, 53
   Call Centers aiming at fault correc-                                                                                                                        t of waste timber and 2,690 kg of
                                                     -96-                                                                                                       -97-
                                      Building Ties with the Enviroment                                                                          Building Ties with the Enviroment

    empty plastic containers of electro-        disposal, according to the nature                   ed for the period 2006 – 2010 was about 21,500 kg.
                                                                                                    Our target for 2011 is, at least, to remain at 2010 lev-
    lyte were forwarded to “GENERAL             of the material). In 2010, 138 t of
                                                                                                    els regarding home batteries.
    PAPER RECYCLING REAL ESTATE                 waste electrical and electronic
                                                                                                    For more graphs and information on Raw materials
    & HOTEL CO. S.A.” and “NEILOS               equipment forwarded to “APPLI-                      and waste management, visit:
    TECHNICAL TRADE Ltd” respec-                ANCES RECYCLING SA” (includ-                        cr2010_en
    tively.                                     ing of customers’ waste electrical
>   Paper. Paper recycling refers to            and electronic equipment as well
    packaging material from OTE sup-            as used mobile, fixed telephones
    plies as well as from the various           and accessories collected through
    recycling systems in place. The total       the OTEShops) for further process-
    quantity of paper recycled was 269          ing, an amount that is slightly lower
    t (the quantities in Attica are recy-       compared to that collected in 2009.
    cled through “PAPER RECYCLING > Lubricant oils and lead batteries
    SA”). In addition, the Printing Center      are included in those that require
    Complex forwarded 127 t of paper            special treatment (as they consid-
    (increased by 34% compared to               ered hazardous). In 2010, 12,823
    2009) to the Non Governmental               kg of lubricant oils and 179,018 kg
    Organization "KLIMAKA".                     of lead batteries were collected and
>   2010 was the first year that the “PA-       forwarded to authorized agencies
    PIROS” information system (aiming           for further treatment. In both cases,
    at the electronic management of             no spills were occurred.
    daily filing work via scanners and     > Used tires management. The pro-
    electronic routing of internal com-         gram for the management of the
    munications) was fully operational.         used tires from OTE owned vehicles
    The reduction of paper consump-             started in 2010, during which 885
    tion is estimated at 356,000 pages.         units forwarded to “ECOELASTICA
>   In total printing paper consumption         SA”.
    in 2010 reduced by 14% compared In addition, OTE has put in place initiatives to raise
    to 2009.                               public awareness and participation in recycling
                                           schemes. Since 2006, and more systematically since
>   Waste Electrical & Electronic
                                           2008, we collect, through the placement of special
    Equipment. The electrical and elec-
                                           bins in OTEShops waste electrical and electronic
    tronic equipment that is deemed        waste as well as home batteries. In 2010, we collected
    inadequate or outdated is given to     (from our customers and employees) and forwarded
    authorized companies for further       to “AFIS SA” 6,100 kg of home batteries, while the
    processing (dismantling, recycling,    total amount of home batteries collected and forward-
                                                            -98-                                                                                    -99-
                                             Building Ties with the Enviroment                                                       Building Ties with the Enviroment

                            ReseaRCh                                                                  >    FITCE (Federation of Telecommuni-
                                                                                                          cations Engineers of the European
                         and deVeLopMent                                                                  Union) 49th International Congress,
                                                                                                          “The Way of Santiago and European
                                                                                                          Telecommunications”, Santiago de
                                                                                                          Compostela, Galicia, Spain, Sep-
                                                                                                          tember 01-04, 2010.

The development of innovative products and ser-                  mation see
vices, which, among others, could contribute to the
                                                               > WHERE2 (“Wireless Hybrid En-
improvement of the environmental performance, rep-
                                                                 hanced Mobile Radio-Estimators,
resents a key priority for OTE. In that context and
within the 7th Framework Programme for research
                                                                 Phase 2”), FP7-ICT-2009-4, Grant
and technology development (FP7), we are involved                Agreement No.248894. For more
in projects of a total budget of 30 million €:                   information see
> Self-NET (“Self-Management of          For results dissemination, OTE is participating in a
                                         number of well-established (within the wider Euro-
  Cognitive Future InterNET Ele-
                                         pean and international business, marketing, research
  ments”), FP7-ICT-2007-2, Grant
                                         and academic community) conferences. An indicative
  Agreement No.224344. For more          list of presentations made by OTE experts, included
  information see    in conference abstracts and well received by the audi-
> FUTON (“Fibre Optic Networks for       ence includes the following:
  Distributed, Extendible Heterogene- > The Future Network & Mobile Sum-
  ous Radio Architectures and Ser-             mit 2010, June 16-18, 2010, Flor-
  vice Provisioning”), FP7-ICT2007,            ence, Italy. Supported by the Euro-
  Grant Agreement No.215533. For               pean Commission, DG Information
  more information see       Society and Media. Technically Co-
> REWIND (“RElay based WIre-                   Sponsored by IEEE.
  less Network and standarD”),           > The 2nd International Conference
  FP7-ICT2007, Grant Agreement                 of Mobile and Lightweight Wireless
  No.216751. For more information              Systems - MOBILIGHT 2010, May
  see                   10-12, 2010, Barcelona, Spain.
> CONSERN (“Cooperative aNd Self-              Supported by the ICST – Institute
  growing Energy awaRe Networks”),             for Computer Sciences, Social-In-
  FP7-ICT-2009.3.5, Grant Agree-               formatics and Telecommunications
  ment No.257542. For more infor-              Engineering.
                                                      -100-                                                                                                          -101-
                                        Building Ties with the Enviroment                                                                              Building Ties with the Enviroment

       sUppoRt oF enViRonMentaL                                                                             Body
                                                                                                                                                                     Type of sponsorship
                                                                                                                                                                     Support to a forest protection & forest fire fight-

           initiatiVes BY ngos                                                                              Environmental organisation for wildlife and
                                                                                                                                                                     ing programme in N. Pindos and Study for genetic
                                                                                                                                                                     monitoring of the brown bear through the placement
                                                                                                                                                                     of OTE poles in Rodopi, since 2009.

                                                                                                            ANIMA                                                    In the framework of cooperation, an action has been
                                                                                                            Society for the Protection and Care of Wildlife.         organised for releasing birds in mount Parnitha, with
                                                                                                                                                                     the participation of employees and their families.

OTE has undertaken a series of actions towards the        Moreover, in 2010, OTE supported by sponsoring,   Hellenic Society for the Protection of Nature            Continue supporting the Environmental training
protection of the environment for the year 2010,          the following NGOs:                               Non Government Organisation that has been                & awareness Programme: ‘New Journalists for the
                                                                                                            active since 1951, for the protection of Greece’s        Environment’.
such as:
                                                                                                            natural environment, whose mission is to inform
> Participation of employees and                                                                            and raise awareness on Greece’s natural herit-
  their families, in an action that was                                                                     age & activities for its protection.
  planned in cooperation with the
  Non-Governmental Organisation                                                                             The Hellenic Society for the Protection of the           Support of the activities of the society in the last
  ‘ANIMA’, for releasing hawks and                                                                          Environment and the Cultural Heritage.                   4 years.

  other birds to the wild.
                                                                                                            The Union for the Protection of Forests                  Support the Union’s project plans (reforestations,
> Participation of employees, their                                                                         in Athens (Philodassiki Enossi Athinon).                 development of the Botanical Garden).
  families, and citizens, in the context
  of celebrating the World Environ-
  ment Day, in local actions that were
  carried out by OTE’s 35 Cultural
  Centres in various areas of Greece,
  and which included planting trees,
  cleaning shores, lakes, forests etc,
  as well as collecting and sorting
  trash as recyclable and non-recycla-
> Contribution to raise employee
  awareness on environmental is-
  sues, with relevant articles in the in-
  tranet site of the company on ‘Earth
  Hour,’ ‘World Environment Day’,
  ‘European Mobility Week,’ ‘ etc.
          -102-                        -103-
Building Ties with Society   Building Ties with Society
                                                           -104-                                                                       -105-
                                                 Building Ties with Society                                                  Building Ties with Society

         BUiLding ties With soCietY                                                     sUppoRting ChiLdRen,
                                                                                      VULneRaBLe soCiaL gRoUps
                                                                                             & YoUths

OTE, acting as a ‘responsible active citizen’ towards                         Through its social marketing and sponsorships, OTE,
society, has been tangibly demonstrating its concern                          consistently and continuously, provides financial sup-
for society, throughout the years and with consistency,                       port to bodies with a proven track record of child sup-
and gives back to society its best, expanding its actions                     port activities.
and initiatives for the preservation and protection of                        OTE also provides support to vulnerable social groups
social cohesion. OTE applies its societal engagement                          and youths through sponsorship activities, telemara-
strategy across its nationwide operations in Greece.                          thons, phonecards, helplines and other actions.

OTE actions for society contribute to:
> Supporting children, vulnerable                                                       SOCial markETinG
                                                                              Since 2003, OTE has been donating a significant part
  social groups and youths
                                                                              of the revenue generated from its Christmas cam-
> Helping youths gain access to new                                           paign, for assisting charity organisations. In 2010,
  technologies                                                                the amount of EUR200,000, which was generated
> Supporting and promoting volun-                                             from purchases made at OTESHOP stores, through
  teerism                                                                     the 13888 number or during the 2010-
> Educating the public on the history                                         2011 Christmas season, was given to help the goals
  and future of telecommunications                                            of Charity organisations such as the Association ‘The
  and communications technology                                               Smile of the Child’, the charity caring for people
                                                                              with Neuromuscular Conditions, MDA Hellas and
> The preservation and promotion of
                                                                              the Union ‘Together for Children’.
  our cultural heritage, with an em-
                                                                              For more information on OTE’s Social Marketing,
  phasis on cultural initiatives of the                                       visit:
                                                                       -106-                                                                                                             -107-
                                                             Building Ties with Society                                                                                        Building Ties with Society

                   SuppOrTinG                                                                                                          SuppOrTinG
               ChildrEn ChariTiES                                                                                                vulnEraBlE SOCial GrOupS
      The following table summarises OTE sponsorship                                                                             The following table summarises OTE sponsorship ac-
      activities for 2010, regarding Children Charities,                                                                         tivities for 2010, regarding vulnerable social groups,
      through the following bodies and non-governmental                                                                          through the following bodies and non-governmental
      organisations that OTE included in its Corporate Re-                                                                       organisations that OTE included in its Corporate Re-
      sponsibility programme.                                                                                                    sponsibility programme:

                                                                                                                                  Body                        Form of sponsorship
                                                                                                                                  Food Bank –                 Coverage of the Foundation’s operating needs and purchase of food for 2,857
       Body                             Form of sponsorship                                                                       Foundation for fighting     homeless people that are given food at 37 food halls and Foundations in At-
       Cerebral Palsy Greece*           Covered the annual operating costs of its IT Training Unit (personnel payroll,            hunger                      tica.
                                        purchase of training material and equipment maintenance).
                                                                                                                                  Hellenic Cancer Society     Procurement of scientific instruments for the ‘Centre for the Early Diagnosis
       MDA Hellas*                      Support for the creation of the association’s ‘Youth Centre’, aiming at provid-                                       of Cancer’ (Full Dermatoscope System, procurement of 3 heads for the ultra-
                                        ing comprehensive services, aside from the services provided through the 3                                            sound tomography scanner).
                                        MDA Units at hospitals, as well as at the better social integration of patients,
                                        by attracting Members & Volunteers to the premises of the Centre.                         Doctors of the Aegean       Boost, for a fifth consecutive year, the humanitarian missions of these doctors
                                                                                                                                                              to remote border islands.
       Hellenic Society                 Coverage of operating expenses for the creation of a «New Department for
       for Disabled                     Early Training & Therapeutic Intervention – Special Pre-school Education                  ‘STROFI’ Rehabilitation     Covered the expenses for the children’s graduation ceremony from the
       Children(ELEPAP)                 Unit» of ELEPAP.                                                                          Community Family            KETHEA programmes, for the entire country and covered the expenses for
                                                                                                                                  Association, of the         the Association’s Christmas bazaar.
       Friends of the Child*            Covered special treatment -speech therapy, psychotherapy- on a monthly                    Treatment Clinic for        Granted a scholarship to a programme graduate.
                                        basis for one child, covered check-up and vaccination for 80 children and                 Addicts (KETHEA)
                                        expenses for a Bazaar (canteen hire and sacks).
                                                                                                                                  Festival for Homeless       Supported the 8th Homeless World Cup, Rio de Janeiro, Brazil.
       ‘AGIA SOFIA’                     Sponsorship of an academic Forum on Paediatric Haematology – Oncology,                    People
       Children’s Hospital              for briefing the medical community on new developments and treatments in
                                        this field.                                                                               Emotion Pictures            During 2010, OTE supported the International Festival on ‘Documentary &
                                                                                                                                                              Disability’ (presentation of the innovative ‘EyeWriter Initiative’ device for
       Association of OTE               Supported financially the Association’s work for organizing events for the                                            authors & artists with paralysis).
       Employees and                    children throughout Greece.
       Pensioners with
       disabled children

       Special Treatment                During 2010, OTE provided support regarding:
       Centre ‘Margarita’               -Upgrades to computers used by students of the centre
                                        - Computer network maintenance
                                        -Website operating expenses

      * The above sponsorship activities are separate from the support through the Christmas campaign funds.
                                                           -108-                                                                                                         -109-
                                                 Building Ties with Society                                                                                    Building Ties with Society

Furthermore, in 20 tele-marathons (compared to 14                 pline number 80011 80015 in coop-                           SuppOrTinG yOuThS                                 of Piraeus, for the academic year
in 2009) that were carried out with a special pricing
                                                                  eration with the Adolescent Health                         and prOmOTinG ThEir                                2009-2010.
policy through the Televoting-IN service for charity
                                                                  Unit (AHU) of the 2nd Department                            TEChnOlOGy SkillS                               > Expanded its cooperation with the
purposes, OTE donated EUR76,510 (compared to
EUR206,250 in 2009). This service was indicatively
                                                                  of Paediatrics, University of Athens,                 Consistent with its strategy to promote new technolo-   Adolescent Health Unit (AHU) of the
                                                                  at the ‘P. & A. KYRIAKOU’ Chil-                       gies and to support efforts made by youths during       2nd Department of Paediatrics, Ath-
made available to bodies such as, the ‘the Child’s
                                                                  dren’s Hospital                                       their studies, OTE in 2010 implemented a series of      ens University, at the ‘P. & A. Kyri-
Smile’ organisation, the Greek National Committee
                                                                                                                        actions intended to inform and familiarise the public
of “Unicef” and the Association ‘Doctors without                > National Suicide Prevention Hotline                                                                           akou’ Children’s Hospital aiming to
                                                                                                                        with the Internet and especially with the broadband
frontiers’. The decreased income is attributed to the             1018, in the framework of services                                                                            implement an integrated program
                                                                                                                        services, specifically:
decline in the activity of the service in general.                provided by the ‘KLIMAKA’ NGO.                                                                                fostering information/awareness
                                                                                                                        > Gave the opportunity to 907 stu-
Also, within 2010, 2,940 phone cards (with a total              For more information on OTE’s support to vulnerable                                                             and education among the public
                                                                social groups, visit:
                                                                                                                             dents (compared to 693 in 2009) to
value of EUR12,300) were given to organisations                                                                                                                                 and primarily children, teenagers
                                                                                                                             complete their studies through in-
such as the Greek Red Cross, the Hellenic Centre for                                                                                                                            and their parents, on the safe and
Infectious Diseases Control (H.C.I.D.C.), ‘KETHEA
                                                                                                                             ternships in a modern work environ-
                                                                                                                                                                                responsible use of the Internet.
DIAVASI’, Special Juvenile Correctional Facilities,                                                                          ment at OTE, in cooperation with
                                                                                                                                                                              > Supported, for the seventh consec-
etc.                                                                 OTE SuppOrTS SpECial                                    the academic community and the
                                                                                                                                                                                utive year, the Pan-Hellenic School
                                                                    OlympiCS wOrld SummEr                                    public bodies (e.g. OAED schools).
                  hElplinES                                                                                                                                                     Contest ‘LISIAS,’ which has be-
                                                                       GamES aThEnS 2011                                > 1,745 students (compared to 2,207
Furthermore in 2010, OTE provided telecommunica-                                                                                                                                come a well-established institution
                                                                In the framework of the corporate responsibility ac-         in 2009) were employed at call cen-
tions infrastructure and financial support to the opera-                                                                                                                        under the auspices of the Ministry
                                                                tions, OTE and COSMOTE contribute in practice, by            tres, of which 350 are members of
tion of the following helplines for children, youth and                                                                                                                         of Education, Life-long Learning
                                                                providing all telecommunication services that will be        large or single parent families.
vulnerable groups:                                                                                                                                                              and Religion, that is organised by
                                                                required before and during the games, aiming at the     > For the sixth consecutive year, OTE
> The Greek National Helpline for chil- impeccable hosting of the games.                                                                                                        ‘Douka’ School and conducted
                                                                                                                             offered free ‘Conn-x’ broadband
  dren “SOS 1056” of the ‘The Smile                                                                                                                                             through the Internet, offering knowl-
                                        From as early as Spring 2010, we have begun the im-                                  connections to excelling undergrad-
  of the Child’ association                                                                                                                                                     edge and entertainment through
                                        plementation of this important project, thus contribut-                              uate and postgraduate students.
> The European Hotline for miss-        ing to the success of the Games’ test events.                                                                                           the use of technology.
                                                                                                                        > Continued and extended until
  ing children “116000”, of the ‘The    In particular, we will cover the Games’ telecommuni-                                                                                    OTE offered Conn-x broadband
                                                                                                                             2015, jointly with COSMOTE (AMC)
  Smile of the Child’ association       cations needs for:                                                                                                                      connections to the winners, as
                                                                                                                             and ROMTELECOM, the support
> Advice Helpline ‘11525 Together       > Data transmission services                                                                                                            well as providing technical/material
                                                                                                                             provided to the Scholarship Pro-
  for Children’, by the Union ‘Togeth- > Audio and video transmission ser-                                                                                                      infrastructure, for the duration of the
                                                                                                                             gramme of the American Farm
  er for Children’                           vices                                                                                                                              contest.
                                                                                                                             School of Thessalonica.
> European “Helpline 116111 for sup- > Mobile telephony services.                                                                                                             > For the 2nd consecutive year, OTE
                                                                                                                        > OTE awarded with a scholarship,
  port to Children and Youth”, by the The above infrastructure is provided in goods and its                                                                                     sponsored the Pan-Hellenic Infor-
                                                                                                                             for the third consecutive year, two
  Association for the Psychosocial      cost amounts, for both OTE and COSMOTE, to ap-                                                                                          mation Technology Competition,
                                                                                                                             post-graduate students with excel-
  Health of Children and Teenagers      proximately EUR1,600,000.                                                                                                               by offering the 50 winners of the
                                                                                                                             lent academic performance of the
  (A.P.H.C.A.)                          For more information on OTE’s support to the Special                                                                                    competition’s first phase the popu-
                                        Olympics games, visit:
                                                                                                                             Department of Banking and Finan-
> ‘YpoSTIRIZO’ (I SUPPORT) Hel-                                                                                                                                                 lar Conn-x package for broadband
                                                                                                                             cial Administration of the University
                                                     -110-                                                                      -111-
                                           Building Ties with Society                                                 Building Ties with Society

  internet access.
> The ‘Computer Re-Use Pro-
                                                                                  CoRpoRate VoLUnteeRing
  gramme’ spanning the entire coun-
  try was continued for the 5th year,
  promoting the reuse of computers
  and other technological equipment,
  by offering 55 PCs (compared to
  106 in 2009) to schools and differ-
  ent bodies performing social work.
For more information on Supporting Youths and Pro-                            OTE’S EmplOyEE                                                citizens, took action for the environ-
moting their Technology Skills, visit:                       vOlunTEEriSm prOGrammE                                             ment by participating in local ac-
                                                                                wiTh nGOs                                                   tions that were carried out by OTE’s
                                                                        In 2010, we further expanded the OTE Employee                       35 Cultural Centres in various areas
                                                                        Volunteerism Programme, to support the actions of                   of Greece, and which included
                                                                        Non-Governmental Organisations. This Programme                      planting trees, cleaning shores,
                                                                        provides company employees with the opportunity
                                                                                                                                            lakes, forests etc, as well as collect-
                                                                        to participate in actions of associations that require
                                                                                                                                            ing and sorting trash as recyclable
                                                                                                                                            and non-recyclable.

                                                                        In the framework of this Programme, we implement-                                     NEW

                                                                        ed new actions that contribute both to cultivating a
                                                                        culture of employee volunteerism and environmental                 ΟΤΕ’S EmplOyEE
                                                                        awareness:                                                    vOlunTEEriSm prOGrammE
                                                                        > Through the company’s intranet                              fOr ThE SpECial OlympiCS
                                                                          (U Link), the employees had the                               wOrld SummEr GamES
                                                                          possibility to participate, both                                   aThEnS 2011
                                                                          themselves and their families, in an                       In the framework of the OTE’s Employee Volunteer-
                                                                          action that was planned in coopera-                        ism Programme, as well as OTE’s sponsorship of the
                                                                          tion with the Non-Governmental                             Special Olympics World Summer Games ATHENS
                                                                          Organisation ‘ANIMA’, for releasing                        2011, we created a special corporate programme for
                                                                                                                                     volunteer participation in the Games by company em-
                                                                          hawks and other birds to the wild,
                                                                                                                                     ployees. Employees from all over Greece responded
                                                                          proving that way that even a small
                                                                                                                                     and participate in the OTE Volunteer Group, thus con-
                                                                          action can make a difference.                              tributing to the understanding and acceptance of men-
                                                                        > In the context of celebrating the                          tal disability and promoting the idea of volunteerism,
                                                                          World Environment Day, OTE em-                             representing the company in these World Games.
                                                                          ployees and their families, as well as
                                                       -112-                                                             -113-
                                             Building Ties with Society                                        Building Ties with Society

           BlOOd dOnaTiOn
Blood donations by OTE employees, which is the ut-
most act of human kindness and solidarity, increased
in 2010.                                                                                                                                                  1,592
                                                                          2006                                                                            486
For 2010, throughout the country, the OTE Group
employees gathered 3,214 units of blood (compared                         2007                                                                            430
to 2,973 in 2009), of which 2,407 was donated in
Attica. 1,014 units were used to cover the needs of                       2008                                                                            372
OTE Group employees, while 2,200 blood units were
given to society.                                                         2009
In the Periphery, the work of Blood donation is or-
ganised in coordination with the local OTE Employee                       2010                                                                            480
Cultural Centres.
                                                                                 0        500          1000         1500       2000         2500   3000
The following graphs show the development of the
OTE Employee Volunteer Blood Donation Pro-                                           Units of blood gathered
gramme in Attica and in the Periphery during the                                     Units of blood given to OTE Personnel
                                                                                     Units of blood given to society

                                                                                                  Blood donation prefecture of attica

                                                                          2007                                                                            648

                                                                          2008                                                                            673

                                                                          2009                                                                            655

                                                                          2010                                                                            534

                                                                                 0         200          400         600         800         1000   1200

                                                                                     Units of blood gathered
                                                                                     Units of blood given to OTE Personnel
                                                                                     Units of blood given to society

                                                                                                      Blood donation in the periphery
                                                        -114-                                                                                                                  -115-
                                              Building Ties with Society                                                                                             Building Ties with Society

                    CULtURaL heRitage                                                                                  OTE TElECOmmuniCaTiOnS
                                                                                                                                                                                      cember 2010).
                                                                                                                                                                                    > Participation of the Museum in the
                   - LoCaL CoMMUnities                                                                               In 2010, the OTE Telecommunications Museum
                                                                                                                     completed twenty years of existence. It was created
                                                                                                                                                                                      Museum Walk, which was organ-
                                                                                                                                                                                      ised in the framework of the Athens
                                                                                                                     through the hard work of its employees and the com-              International Film Festival.
                                                                                                                     pany’s support. By operating the only Telecommuni-             For more information on the OTE Telecommunica-
                                                                                                                     cations Museum in Greece, OTE responsibly man-                 tions Museum visit:
                                                                                                                     ages its corporate heritage.                                   portal/OTEGR/TheCompany/MuseumOfTelecommu-
                                                                                                                     Currently, the OTE Telecommunications Museum is                nications or
OTE consistently supports actions that contribute to-                                                                focusing its efforts on educating and entertaining the
                                                                    aCTiOnS and iniTiaTivES                          largest possible number of visitors. Admission and
wards the enhancement of cultural heritage. In that
                                                                       in ThE pEriphEry                              tours in the Museum are free of charge to the public.
framework, OTE maintained its longstanding rela-
                                                             OTE tangibly demonstrates its concern for local com-
tionship and collaboration with the following entities                                                               Museum’s Visitors:
                                                             munities, by participating and supporting an array of
into 2010:                                                                                                           > School Groups
                                                             activities throughout Greece.
> Benaki Museum                                              Indicatively:                                           > Special Groups
  - Digitisation & archiving of Mu-                          > Thessalonica: World Council of Hel-                   > Individual Visitors
     seum collections                                          lenes Abroad                                          Highlights of the Museum’s Activities in 2010
  - “Dimitris Pikionis, 1887-1968",                          > Agrinio: Hellenic Society for Disa-                   An array of new activities has been launched, in or-
     an exhibition dedicated to the art-                       bled Children (ELEPAP), Agrinio                       der to target new audience categories. The principal
     ist’s work.                                               Branch                                                among them are provided below:
> Hellenic Foundation for European &                         > Cyclades: “Small-island Celebra-                      > The launch of the digital mosaic
  Foreign Policy (ELIAMEP)                                     tions"                                                  depicting Graham Bell, inventor of
> The Society for the Study of Greek                         > Tinos: Festival of the Exomvourgo                       the telephone, made from dozens
  History (EMEIS)                                              Municipality (5th consecutive year)                     of exhibits from its collections.
> Museum of Photography, Thessa-                             > Simi: Festival of the Simi Municipal-                 > The organisation of information ses-
  loniki                                                       ity (6th consecutive year)                              sions, addressed to children and
  - Support of the Photobiennale                             > Patras: "12th International Pano-                       adults, on the subject of safe Inter-
     2010 (21st International Photog-                          rama of Independent Cinema &                            net.
     raphy Meeting with the central                            Video-Art Creators"                                   > The first themed educational pro-
     topic “Place”).                                         > Komotini: “Eleftheria of Thrace”                        gramme on telecommunications,
> Athens Municipality                                          (5th consecutive year)                                  for children aged 5-8, titled 'Chil-
  - Installation of visual art works for                     > Siros: "Ermoupolia” Festival,                           dren's Visual Arts Studio on Tel-
  Regeneration of the Psirri District.                         2010                                                    ecommunications', (participation of
                                                             > Xanthi: “Old Town Celebrations”                         230 children, among which children
                                                               (5th consecutive year).                                 from the “Pammakaristos” Special
                                                                                                                       School, during November & De-
                                                                            -116-                                                            -117-
                                                                  Building Ties with Society                                                Annexes

      OTE SpOnSOrShip                                                             OTE website ( & CR – Online CR Re-
                                                                                  port 2010
 and COrpOraTE rESpOnSi-
  BiliTy aCTiOnS ExpEnSES                                                         Corporate Responsibility actions are presented in a
In 2010, the total amount spent on sponsorships/dona-                             specific section of OTE’s website (
tions and other telecommunication expenses reached                                portal/page/portal/OTEGR/CorporateSocialRespon-
EUR1,202,705.00, from which EUR944,655.00 has                                     sibility/OurCRProgram)
been made available for Corporate Responsibility ac-
tions, that is 78,5% of the total amount.                                         In 2010, the company, for the first year, has launched
                                                                                  a dedicated micro-site, where it posted, in an inter-
Specifically, OTE expenses for Corporate Responsi-
                                                                                  active way, the “2009 Corporate Responsibility Re-
bility actions and sponsorships are set forth below:
                                                                                  port”. This year, the CR Report will be once again
                                                                                  online (, but will be
                                                                                  integrated in the actual structure of the official web-
                                                                                  site (


             Christmas Charitable                                                                                       250,000.00€
                     Contribution                                                                                       200,000.00€

              Other Sponsorships

                                                                                                                        206,250.00 €
           Tele-voting fund raising

                   OTE Employee                                                                                         200,000.00€
                  Cultural Centres                                                                                      200,000.00€

          OTE Employee Vacation                                                                                         1,600,000.00€
                        Resorts                                                                                         1,730,000.00€*

                           Choir                                                                                        250,000.00€
            (Athens-Thessalonica)                                                                                       167,049.00€



                                      ¹ The amount of 1,730,000.00 € includes: 930,000.00 €, an amount related to FY2009.

                              OTE Expenses for Corporate responsibility actions and Sponsorships
 -118-                                                           -119-
Annexes                                                         Annexes

                       United nations gLoBaL
                      CoMpaCt CoMMUniCation
                      on pRogRess (Cop), 2010

          “Our company is proud to continue for another year         > Extending further our efforts to
          to abide by the principles of the UN’s Global Com-
                                                                       record, measure and gradually
          pact. The UN’s encouragement through this vital
                                                                       reduce the company’s “ecological
          initiative provides a most welcomed guidance and
          commitment for our organization. OTE has chosen
          to support and uphold the UNGC’s principles in its         > At the most challenging period for
          internal operations as well as in its relations with ex-     Greece economically, OTE is one
          ternal stakeholders.”                                        of the key drivers for growth and
                                                                       investment in new technologies and
          Mr Michalis Tsamaz, Chairman and CEO, OTE SA                 infrastructure. OTE’s milestone goal
                                                                       for broadband development in the
                                                                       whole of the country remains a key
          OTE SA –with operations principally in Greece-
                                                                       priority, while placing special em-
          supports the UN Global Compact, the largest vol-
          untary corporate citizenship initiative in the world
                                                                       phasis on bridging the digital gap
          and abides by its ten universal values in the areas of       in remote areas of the country and
          human rights, labor standards, the environment and           facilitating access to new technolo-
          anti-corruption. OTE has integrated the Global Com-          gies for vulnerable social groups. In
          pact principles into its policies and operations.            2010 OTE focused also on actively
          Our Corporate Responsibility Report for 2010, also           promoting the better and safer use
          available in an online version in the URL: www.ote.
                                                                       of new technologies.
          gr/cr2010/cr2010_en, includes a detailed presen-
                                                                     > Continuing our long-term commit-
          tation of the company’s priorities, activities, goals
          and outcomes, structured in a four pillar approach of
                                                                       ment to children, young people and
          “Building Ties” with our employees, in the market,           students, as well as the elderly and
          for the environment, and with society.                       people with disabilities, through
          During 2010 our main achievements relevant to ad-            forming partnerships and support-
          herence to Global Compact principles include:                ing NGOs that are dedicated to
                                                                       helping these social groups.
                                     -120-                                                                   -121-
                                    Annexes                                                                 Annexes

> Enhancing policies and practices                 The full length of the justification for the 10 Global Compact principles can be found in the online Cr report
  that secure our employees’ well-
  being and development, while
  respecting and implementing equal                       UN Principles                       OTE policies and practiles               COP Index - Section 2010 CR
  opportunity and human rights poli-                                                                                                             Report
  cies.                                       1. Businesses should support and            Granting opportunities to all employees     Employees: Equal Opportunities &
> Upholding a company-wide ethics             respect the protection of internationally   and full respect of human rights is an      Non-Discrimination - Basic and Ad-
                                              proclaimed human rights.                    active policy at OTE. The company has       ditional Benefits - Recruitment and
  and anti-corruption policy and sup-                                                     set an internal regulatory framework        Termination - Special Hires
  porting mechanisms that promote                                                         for the protection of employee rights,
                                                                                          including the Internal Personnel
  transparent and responsible busi-                                                       Regulation, the company’s Code
  ness conduct.                                                                           of Conduct and the ‘Compliance
                                                                                          Management System’.

                                              2. Make sure that they are not complicit    The new Procurement policy has              Marketplace: Procurement Policy
                                              in human rights abuses.                     increased control mechanisms for OTE
                                                                                          suppliers and supply chain.

                                              3. Businesses should uphold the             The Internal Personnel Regulation           Employees: Equal Opportunities &
                                              freedom of association and the effective    states that freedom of political and        Non-Discrimination
                                              recognition of the right to collective      philosophical beliefs are respected and
                                              bargaining.                                 ensured by the Company in the context       Stakeholder Table: Employees/Labour
                                                                                          determined by the Constitution and          Unions
                                                                                          the Legislation. In practice the right to
                                                                                          collective negotiations is upheld and
                                                                                          protected in the best possible manner.
                                                                                          All Company employees, without
                                                                                          exception, are covered by agreements
                                                                                          based on collective negotiations

                                              4. The elimination of all forms of forced   OTE’s Employment policies and               Employees: Equal Opportunities &
                                              and compulsory labour.                      Internal Personnel Regulation prevent       Non-Discrimination
                                                                                          and prohibit forced labour.                 Marketplace: Procurement Policy
                                                                                          In addition, the new OTE Procurement
                                                                                          policy has increased control
                                                                                          mechanisms for OTE suppliers.

                                              5. The effective abolition of child         OTE’s Employment policies and               Employees: Equal Opportunities
                                              labour.                                     Internal Personnel Regulation prevent       & Non-discrimination
                                                                                          and prohibit phenomena such as child        Marketplace: Procurement Policy
                                                                                          Additionally, the new OTE Procurement
                                                                                          policy has increased control
                                                                                          mechanisms for OTE suppliers.

                                              6. The elimination of discrimination in     At OTE, there is no pay discrimination      Employees: Equal Opportunities
                                              respect of employment and occupation.       of any kind based on gender. The            & Non-discrimination
                                                                                          employees’ basic salary is calculated
                                                          -122-                                                                                                                          -123-
                                                         Annexes                                                                                                                        Annexes

            UN Principles                    OTE policies and practiles             COP Index - Section 2010 CR
                                                                                              Report                                                    gRi indeX taBLe
                                         on length of service and educational
                                                                                   Employees: Employee Evaluation
                                                                                   System                                                             FoR 2010 CR RepoRt
                                         OTE implements equal opportunities
                                         policies and transparent employee
                                         evaluation systems.

7. Businesses should support             OTE supports the precautionary            Environment: Our Environment Policy                    The full length of the justification for the Gri indicators can be found in the online Cr report
a precautionary approach to              principle by taking a proactive           Measuring and reporting our                                                               (
environmental challenges.                approach to measuring and reducing its    Environmental impact and initiatives
                                         environmental impact.           
                                                                                                                                 Indicators and Description                       2010 CR Report                           OTE websites
8. Undertake initiatives to promote      Recording of ecological footprint and     Environment: Environmental impacts
                                                                                                                             1. Company profile
greater environmental responsibility.    initiatives to save energy and reduce     from the operation of OTE in Greece
                                         CO2 emissions.                            Measures for reducing energy use and      1.1 Statement from the most senior         (Fully) Message from the Chairman &
                                                                                   GHG emissions          decision maker of the organisation.        CEO
                                                                                                                             1.2 Description of key impacts, risks      (Fully) CR & Business Strategy -
9. Encourage the development and         OTE promotes the use of wind              Environment - Renewable Energy            and opportunities.                         Vision, Mission & Business Strategy
diffusion of environmentally friendly    turbines and photovoltaic systems         Sources                                                                              CR Goals Results Commitments
technologies.                            in infrastructure projects, energy        Energy conservation
                                         saving technologies in its operational               2. Organisational Profile
                                         buildings including telecommunication
                                         equipment.                                                                          2.1 Name of the organisation.              (Fully) OTE                   

10. Businesses should work against       OTE’s Corporate Governance policy         Corporate Governance                      2.2 Primary brands, products, and/or       (Fully) OTE                   
corruption in all its forms, including   includes specific control measures        Training Programmes                       services.
extortion and bribery.                   to prevent bribery and corruption.
                                         The policy includes implementation        and IR website:    2.3 Operational structure of the           (Fully) OTE – OTE Group       
                                         bodies and mechanisms such as             tal/page/portal/InvestorRelation/         organisation, including main divisions,                                            and Investor Relations – Business
                                         the Management Bodies, an Audit           CorporateGovernance/apologismose-         operating companies, subsidiaries, and                                             Overview – Organization Chart
                                         Committee, the Audit Procedures, and a    tairikisdiak                              joint ventures.                                                          
                                         whistle-blowing policy.                                                                                                                                                InvestorRelation/BusinessOverview/
Contributing to broader                  ▪ OTE is making a decisive contribution    Marketplace: Products-Services for                                                                                          GroupStructure
development goals                        to building Greece’s broadband            Special Groups
                                         infrastructure and services, including    Society: Support for Children, Socially   2.4 Location of organisation’s             (Fully) OTE                   
                                         making sure everyone in the country       Vulnerable groups and Youths &            headquarters.
                                         (remote areas, vulnerable groups) are     Promoting their Technology Skills
                                         reached in this effort.                        2.5 Number of countries where the          (Fully) OTE                   
                                         ▪ In 2010 OTE has systemised and          Marketplace: Educating citizens about     organisation operates, and names of                                                and Investor Relations – Business
                                         increased its actions to promote the      broadband and new technologies            countries with either major operations                                             Overview – What We Do
                                         right and safer use of the internet.      - Internet Safety                         or that are specifically relevant to the                                 
                                         ▪ OTE has formed several long-term        Society: Support for Children, Socially   sustainability issues covered in the                                               InvestorRelation/OTEIRMainPage
                                         partnerships with NGOs to help            Vulnerable Groups and Youths &            report.
                                         children in need, students, the elderly   Promoting their Technology Skills
                                         and the disabled to have a better               2.6 Nature of ownership and legal          (Fully) OTE                   
                                         future and when applicable use new                                                  form.                                                                              and Investor Relations – Shareholder
                                         technologies to improve their lives.                                                                                                                                   Structure
                                                             -124-                                                                                                                       -125-
                                                            Annexes                                                                                                                     Annexes

   Indicators and Description                        2010 CR Report                          OTE websites                      Indicators and Description                         2010 CR Report                         OTE websites
                                                                                  page/portal/InvestorRelation/TheShare/   ventures, subsidiaries, leased facilities,   (Fully) Subsidiary Companies
                                                                                  ShareholderStructure                     outsourced operations, and other
                                                                                                                           entities that can significantly affect
2.7 Markets served (including               (Fully) OTE                       comparability from period to period
geographic breakdown, sectors served,                                             and Investor Relations – Business        and/or between organizations.
and types of customers/beneficiaries).                                            Overview – Who We Are
                                                                            3.9 Data measurement techniques and          (Partially) Environment - Measuring
                                                                                  InvestorRelation/BusinessOverview/       the bases of calculations, including         and reporting our Environmental
                                                                                  WhoWeAre/OTEToday                        assumptions and techniques underlying        impact and Initiatives
                                                                                                                           estimations applied to the compilation
2.8 Scale of the reporting organisation.    (Fully) OTE                       of the Indicators and other information
                                                                                  and            in the report. Explain any decisions
                                                                                  page/portal/InvestorRelation/            not to apply, or to substantially diverge
                                                                                  OTEIRMainPage/OTE_                       from, the GRI Indicator Protocols.
                                                                                  IFRS_Q4_2010_GREEK_home.pdf              3.10 Explanation of the effect of            (Fully) Marketplace – Payments by
                                                                                                                           any re-statements of information             OTE & Subsidiaries– Recalculation
2.9 Significant changes during the          (Fully) OTE – Key Business        provided in earlier reports, and the         of 2009 data
reporting period regarding size,            Developments                                                                   reasons for such re-statement (e.g.
structure, or ownership.                                                                                                   mergers/ acquisitions, change of base
                                                                                                                           years/periods, nature of business,
2.10 Awards received in the reporting       (Fully) CR & Business Strategy-      measurement methods).
period.                                     Distinctions
                                                                                                                           3.11 Significant changes from previous       (Fully) Marketplace – Payments by
3. Report Parameters                                                                                                       reporting periods in the scope,              OTE & Subsidiaries– Recalculation
                                                                                                                           boundary, or measurement methods             of 2009 data
3.1 Reporting period for information        (Fully) Regarding this Report      applied in the report.
                                                                                                                           3.12 Table identifying the location of       (Fully) GRI Index           
3.2 Date of most recent previous report.    (Fully) Regarding this Report         ttp://       the Standard Disclosures in the report.
                                                                                  portal/page/portal/OTEGR/                3.13 Policy and current practice with        (Fully) Regarding this Report
                                                                                  CorporateSocialResponsibility/           regard to seeking external assurance         CR & Business Strategy – CR
                                                                                  corporateresponsibilities                for the report.                              Certifications – External Assurance

3.3 Reporting cycle.                        (Fully) Regarding this Report      4. Governance

3.4 Contact point for questions             (Fully) Regarding this Report      4.1 Governance structure of the              (Fully) OTE - Corporate Governance
regarding the report or its contents.                                                                                      organisation, including Committees                                                 and Investor Relations – Corporate
                                                                                                                           under the highest body, their mandates                                             Governance - Board of Directors:
3.5 Process for defining report content.    (Fully) Regarding this Report      and membership, and data on age and                                      
                                            CR& Business Strategy–CR                                                       gender of members                                                                  page/portal/InvestorRelation/
                                            Certifications and Indexes – AA1000                                                                                                                               CorporateGovernance/
3.6 Boundary of the report                  (Fully) Regarding this Report                                                                                         Management Team
3.7 State any specific limitations on the   (Fully) Regarding this Report                                                                                         CorporateGovernance/
scope or boundary of the report                                                                                                                                                                               ektelestikidioikisi/melidioikisis
3.8 Basis for reporting on joint            (Fully) Regarding this Report                                                                                         page/portal/InvestorRelation/
                                                          -126-                                                                                                                     -127-
                                                         Annexes                                                                                                                   Annexes

   Indicators and Description                       2010 CR Report                        OTE websites                       Indicators and Description                      2010 CR Report                    OTE websites
                                                                               CorporateGovernance/                      the organisation’s strategy, including                                     portal/page/portal/InvestorRelation/
                                                                               BoardofDirectors/roloskaiarmodiotites     consideration to gender and diversity.                                     CorporateGovernance/
4.2 Indicate whether the Chair of         (Fully) OTE - Corporate Governance
the highest governance body is also       CR & OTE Management                  and Investor Relations – Corporate        4.8 Internally developed statements of    (Fully) CR & Business Strategy
an executive officer (and, if so, their                                        Governance – Board of Directors           mission or values, codes of conduct,                                       and Investor Relations – Corporate
function within the organisation’s                                                    and principles relevant to economic,                                       Governance - Transparency &
management and the reasons for this                                            page/portal/InvestorRelation/             environmental, and social performance                                      Information Disclosure
arrangement).                                                                  CorporateGovernance/                      and the status of their implementation.                          
                                                                               BoardofDirectors/composition                                                                                         page/portal/InvestorRelation/
                                                                               -                                                                                          CorporateGovernance/OurPrinciples
                                                                               CorporateGovernance/                      4.9 Procedures of the highest             (Fully) CR & Business Strategy
                                                                               BoardofDirectors/roloskaiarmodiotites     governance body for overseeing            – CR & OTE Management            and
                                                                                                                         the organisation’s identification                                          page/portal/InvestorRelation/
4.3 For organisations that have a         (Fully)                           and management of economic,                                                OTEIRMainPage/OTE_
unitary board structure, state the                                             and Investor Relations -Board of          environmental, and social performance,                                     OIKONOMIKES_KATASTASEIS_
number and gender of members of                                                Directors – Composition                   including relevant risks and                                               IFRS_Q4_2010_GREEK_home.pdf
the highest governance body that are                                                  opportunities, and adherence or
independent and/or non-executive                                               page/portal/InvestorRelation/             compliance with internationally agreed
members.                                                                       CorporateGovernance/                      standards, codes of conduct, and
                                                                               BoardofDirectors/composition              principles.

4.4 Mechanisms for shareholders and       (Fully) OTE - Corporate Governance       4.10 Processes for evaluating the         (Fully)                
employees to provide recommendations                                           and Investor Relations – Corporate        highest governance body’s own                                              and Corporate Governance – Board
or direction to the highest governance                                         Governance section                        performance, particularly with respect                                     of Directors – Board of Directors
body.                                                                                 to economic, environmental, and social                                     Committees (
                                                                               page/portal/InvestorRelation/             performance.                                                               portal/page/portal/InvestorRelation/
                                                                               CorporateGovernance/OurPrinciples                                                                                    CorporateGovernance/
4.5 Linkage between compensation for      (Fully)                    
members of the highest governance                                              and Investor Relations –                  4.11 Explanation of whether and           (Fully) CR & Business Strategy
body, senior managers, and executives                                          Corporate Governance (http://             how the precautionary approach            – CR & OTE Management
(including departure arrangements),                                                or principle is addressed by the
and the organisation’s performance                                             draftserviceagreementeng.pdf )            organisation.
(including social and environmental
performance).                                                                                                            4.12 Externally developed economic,       (Fully) CR & Business Strategy
                                                                                                                         environmental, and social charters,       – Participations
4.6 Processes in place for the highest    (Fully) OTE - Corporate Governance       principles, or other initiatives to
governance body to ensure conflicts of                                         and Investor Relations – Corporate        which the organisation subscribes or
interest are avoided.                                                          Governance – Principles and               endorses.
                                                                               Framework of Corporate Governance
                                                                                      4.13 Memberships in associations          (Fully) CR & Business Strategy
                                                                               page/portal/InvestorRelation/             (such as industry associations) and/      – Participations
                                                                               CorporateGovernance/OurPrinciples         or national/international advocacy        Marketplace – National &
                                                                                                                         organisations.                            International Co-operations
4.7 Process for determining the           (Fully)                    
composition, qualifications and                                                and Investor Relations Site – Corporate   4.14 List of stakeholder groups           (Fully) CR & Business Strategy
expertise of the members of the                                                Governance – Board of Directors           engaged by the organisation.              – Stakeholders
highest governance body for guiding                                            – Composition
                                                           -128-                                                                                                                   -129-
                                                          Annexes                                                                                                                 Annexes

   Indicators and Description                      2010 CR Report                            OTE websites                    Indicators and Description                     2010 CR Report                              OTE websites
4.15 Basis for identification and        (Fully) CR & Business Strategy     Compliance                              (Fully) Environment- Building ties
selection of stakeholders with whom to   – Certifications & Indices – AA1000                                                                                     with the Environment
engage                                   Principles
                                                                                                                         Transport                               (Fully) Environment - Road        
4.16 Approaches to stakeholder           (Fully) CR & Business Strategy                                             transportation activity of OTE owned
engagement, including frequency of       – Stakeholders Table                                                                                                    vehicles fleet
engagement by type and by stakeholder                                                                                                                             - Leased vehicles for the transportation
group.                                                                                                                                                           of executives / employees
                                                                                                                                                                 - Business air travels abroad
4.17 Key topics and concerns that        (Fully) CR & Business Strategy  
have been raised through stakeholder     – Stakeholders Table                                                            Overall                                 (Partially) Environment- Building ties
engagement and how the organization                                                                                                                              with the Environment
has responded to those key topics
and concerns, including through its                                                                                      Disclosure on Management                Employees - Building Ties with Our
reporting.                                                                                                               Approach LA (Fully)                     Employees - Health & Safety - Equal
                                                                                                                                                                 Opportunities and non-discrimination
Report on the disclosures of Management approach for each category
                                                                                                                                                                 - Special hires

Disclosure on Management Approach        Vision, Mission & Business Strategy
                                                                                                                         Employment                              (Fully) Employees - Quality       
EC (Fully)                               Goals Results Commitments Table -
                                                                                                                                                                 Management Systems (QMS)
                                         Building Ties with the Marketplace
                                                                                                                                                                 - Equal Opportunities and non-
Economic performance                     (Fully) OTE- About OTE          
                                         Goals Results Commitments Table
                                                                                                                         Labor/management relations              (Fully) Employees - Equal         
                                         – Marketplace
                                                                                                                                                                 Opportunities and non-discrimination

Market presence                          (Fully) OTE – About OTE         
                                                                                                                         Occupational health and safety          (Fully) Employees -Health & Safety

Disclosure on Management Approach        Goals Results Commitments Table 
                                                                                                                         Training and education                  (Fully) Employees -Special hires  
EN (Partially)                           – Environment
                                         Building ties with Environment
                                                                                                                         Diversity and equal opportunity         (Fully) Employees - Equal         
                                                                                                                                                                 Opportunities and non-discrimination
Materials                                (Partially) Environment – Building ties
                                         with the Environment – Raw materials
                                                                                                                         Equal remuneration for women            (Fully) Equal Opportunities and non-
                                         and waste management
                                                                                                                         and men                                 discrimination

Energy                                   (Fully) Environment             
                                                                                                                         Disclosure on Management Approach       Employees-Equal Opportunities and 
                                         – Energy consumption
                                                                                                                         HR (Partially)                          non-discrimination
                                                                                                                                                                 Marketplace - Procurement Procedures
Water                                    (Fully) Environment             
                                         – Water consumption
                                                                                                                         Investment and procurement practices    (Partially) Marketplace-Procurement
                                                                                                                                                                 Procedures – Contracting
Emissions, effluents and waste           (Fully) Environment- Waste      
                                         Management - Road transportation
                                                                                                                         Non-discrimination                      (Fully) Employees - Equal         
                                         activity of OTE owned vehicles fleet -
                                                                                                                                                                 Opportunities and non-discrimination
                                         Solid waste disposal

                                                                                                                         Freedom of association and collective   (Fully) Employees - Equal         
Products and services                    (Fully) Environment- Renewal of other
                                                                                                                         bargaining                              Opportunities and non-discrimination
                                         equipment and vehicles fleet
                                         - Reduction of road transportation
                                                                                                                         Child labor                             (Fully) Employees - Equal         
                                         activity - Paper recycling
                                                                                                                                                                 Opportunities and non-discrimination
                                                       -130-                                                                                                                     -131-
                                                      Annexes                                                                                                                   Annexes

   Indicators and Description                   2010 CR Report                            OTE websites                    Indicators and Description                      2010 CR Report                         OTE websites
Prevention of forced and compulsory   (Fully) Employees - Equal          generated and distributed, including      OTE & Subsidiaries                    and
labor                                 Opportunities and non-discrimination                                            revenues, operating costs, employee                                             page/portal/InvestorRelation/
                                                                                                                      compensation, donations and other                                               OTEIRMainPage/OTE_
Disclosure on Management Approach     Building Ties with Society - Building   community investments, retained                                                 OIKONOMIKES_KATASTASEIS_
SO (Partially)                        Ties with the Marketplace – Corporate                                           earnings, and payments to capital                                               IFRS_Q4_2010_GREEK_home.pdf
                                      Governance                                                                      providers and governments.

Local communities                     (Partially) Goals-Results -        EC3 Coverage of the organisation’s        (Partially) Employees –Equal
                                      Commitments - Society - Building Ties                                           defined benefit plan obligations.         Opportunities – Basic & Additional
                                      With Society                                                                                                              Benefits

Corruption                            (Fully) CR and Business Strategy   EC8 Development and impact of             Partially) Marketplace – Network &
                                      Employees - Special hires - Training                                            infrastructure investments and services   Broadband Infrastructure
                                      Programmes                                                                      provided primarily for public benefit
                                                                                                                      through commercial, in-kind, or pro
Public policy                         (Partially) Marketplace - Participation   bono engagement.
                                      in European and International Policy
                                      Forums                                                                          Environmental

Anti-competitive behavior             (Fully) Marketplace - Regulatory   EN3 Direct energy consumption by          (Fully) Environment - Energy
                                      Litigations                                                                     primary energy source                     consumption

Compliance Management System          (Fully) OTE Compliance Management   EN4 Indirect energy consumption by        (Fully) Environment - Energy
                                      System                                                                          primary energy source                     consumption

Disclosure on Management Approach     Marketplace –Products for Special   EN5 Energy saved due to conservation      (Partially) Environment - Energy
PR (Partially)                        Groups Marketplace - Product                                                    and efficiency improvements               conservation
                                      Responsibility & Marketing – Other
                                      products                                                                        EN6 Initiatives to provide energy-        (Partially) Environment - Energy
                                                                                                                      efficient or renewable energy based       conservation
Customer health and safety            (Partially) Marketplace - Internet   products and services, and reductions
                                      Safety - Product Responsibility and                                             in energy requirements as a result of
                                      Marketing Issues                                                                these initiatives.

Product and service labeling          (Fully) Marketplace - Product      EN7 Initiatives to reduce indirect        (Partially) Environment - Measures
                                      Responsibility and Marketing Issues                                             energy consumption and reductions         for reducing energy use and GHG
                                                                                                                      achieved.                                 emissions
Marketing communications              (Fully) Marketplace - Product   
                                      Responsibility and Marketing Issues                                             EN8 Total water withdrawal by source      (Fully) Environment - Water 
Customer privacy                      (Fully) Marketplace - Data Security
                                      & Privacy                                                                       EN16 Total direct and indirect            (Fully) Environment - Greenhouse
                                                                                                                      greenhouse gas emissions by weight        gases and other gas emissions
Compliance                            (Partially) Marketplace - Product
                                      Responsibility and Marketing Issues                                             EN17 Other relevant indirect              (Partially) Environment - Other
                                                                                                                      greenhouse gas emissions by weight        indirect greenhouse gases emissions
Performance Indicators
                                                                                                                      EN18 Initiatives to reduce greenhouse     (Partially) Environment - Measures
Economic                                                                                                              gas emissions                             for reducing energy use and GHG
EC1 Direct economic value             (Fully) Marketplace – Payments by
                                                          -132-                                                                                                                     -133-
                                                         Annexes                                                                                                                   Annexes

EN19 Emissions of ozone-depleting        (Partially) Environment - Ozone layer   LA4 Percentage of employees covered       (Fully) Employees –Equal      
substances by weight                                                                                                     by collective bargaining agreements.      Opportunities

EN20 NOx, SOx, and other significant     (Fully) Environment - Greenhouse   LA6 Percentage of total workforce         (Partially) Employees – Health &
air emissions by type and weight         gases and other gas emissions                                                   represented in formal joint               Safety
                                                                                                                         management–worker health and safety
EN21 Total water discharge by quality    (Fully) Environment - Water        committees that help monitor and
and destination                          consumption                                                                     advise on occupational health and
                                                                                                                         safety programs.
EN22 Total weight of waste by type and   (Fully) Environment - Solid waste
disposal method                          disposal                                                                        LA7 Rates of injury, occupational         (Partially) Employees – Health &
                                         Environment - Raw materials and                                                 diseases, lost days, and absenteeism,     Safety
                                         waste management                                                                and number of work related fatalities
                                                                                                                         by region and by gender.
EN23 Total number and volume of          (Fully) Environment - Lubricant oils
significant spills                       and lead batteries                                                              LA8 Education, training, counselling,     (Partially) Employees - Health &
                                                                                                                         prevention, and risk-control programs     Safety - Training Programmes
EN26 Initiatives to mitigate             (Fully) Environment - Products and   in place to assist workforce members,
environmental impacts of products        services that reduce GHG emissions                                              their families, or community members
and services, and extent of impact       Environment - Raw materials and                                                 regarding serious diseases
mitigation.                              waste management
                                                                                                                         LA9 Health and safety topics covered in   (Partially) Employees - Health &
EN28 Monetary value of significant       (Fully) Environment - Electromagnetic   formal agreements with trade unions       Safety
fines and total number of non-monetary   radiation
sanctions for non-compliance with                                                                                        LA10 Average hours of training per        (Partially) Employees - Training
environmental laws and regulations.                                                                                      year per employee by gender and by        Programs
                                                                                                                         employee category.
EN29 Significant environmental           (Fully) Environment - Road      
impacts of transporting products and     transportation activity of OTE owned                                            LA11 Programmes for skills                (Partially) Employees - Training
other goods and materials used for       vehicles fleet - Leased vehicles for                                            management and lifelong learning that     Programs
the organization’s operations, and       the transportation of executives /                                              support the continued employability of
transporting members of the workforce.   employees - Business air travels abroad                                         employees and assist them in managing
                                                                                                                         career endings.
EN30 Total environmental protection      (Partially) Environment -       
expenditures and investments by type.    Electromagnetic radiation                                                       LA12 Percentage of employees              (Fully) Employees – Evaluation System
                                                                                                                         receiving regular performance and
Social – Labour practices                                                                                                career development reviews, by gender.

LA1 Total workforce by employment        (Fully) Employees – Overview of OTE’s   LA13 Composition of governance            (Partially) Employees – Overview
type, employment contract, and region,   Workforce                                                                       bodies and breakdown of employees per     of OTE Workforce                        and Investor Relations site -Board
broken down by gender.                                                                                                   employee category according to gender,                                            of Directors
                                                                                                                         age group, minority group membership,                                             portal/page/portal/InvestorRelation/
LA2 Total number and rate of new         (Partially) Employees - Recruitment   and other indicators of diversity.                                                CorporateGovernance/
employee hires and employee turnover     and Termination                                                                                                                                                   BoardofDirectors/composition
by age group, gender, and region                                                                                                                                                                           Management Team
LA3 Benefits provided to full-time       (Fully) Employees – Basic and                                                                                        page/portal/InvestorRelation/
employees that are not provided to       Additional Benefits                                                                                                                                               CorporateGovernance/
temporary or part-time employees, by                                                                                                                                                                       ektelestikidioikisi/melidioikisis
major operations.
                                                             -134-                                                                                                                       -135-
                                                            Annexes                                                                                                                     Annexes

LA14 Ratio of basic salary and              (Fully) Employees- Equal          SO7 Total number of legal actions for        (Fully) Marketplace – Regulatory
remuneration of women to men by             Opportunities and non -discrimination-                                         anticompetitive behaviour, anti-trust,       Litigations
employee category, by significant           Benefits - Recruitment and Termination                                         and monopoly practices and their
locations of operation                                                                                                     outcomes.

Human rights                                                                                                               SO8 Monetary value of significant fines      (Fully) Marketplace – Regulatory
                                                                                                                           and total number of non-monetary             Litigations
HR4 Total number of incidents of            (Fully) Employees – Equal         sanctions for non-compliance with laws
discrimination and corrective actions       Opportunities – Benefits – Recruitment                                         and regulations.
taken.                                      and Termination
                                                                                                                           Product Responsibility
HR5 Operations and significant              (Partially) Employees – Equal  
suppliers identified in which the right     Opportunities                                                                  PR2 Total number of incidents of             (Partially) Environment      
to exercise freedom of association and      Marketplace – Procurement                                                      non-compliance with regulations and          -Electromagnetic radiation
collective bargaining may be violated                                                                                      voluntary codes concerning health
or at significant risk, and actions taken                                                                                  and safety impacts of products and
to support these rights.                                                                                                   services during their life cycle, by type
                                                                                                                           of outcomes.
HR6 Operations and significant              (Partially) Employees - Equal  
suppliers identified as having              Opportunities and non-discrimination                                           PR3 Type of product and service              (Partially) Marketplace - Product
significant risk for incidents of                                                                                          information required by procedures,          Responsibility and Marketing Issues
child labour, and measures taken to                                                                                        and percentage of significant                Environment -Electromagnetic
contribute to the effective abolition of                                                                                   products and services subject to such        radiation - Research and development
child labour.                                                                                                              information requirements.

HR7 Operations and significant              (Partially) Employees - Equal     PR4 Total number of incidents of             (Fully) Marketplace – Product
suppliers identified as having              Opportunities and non-discrimination                                           non-compliance with regulations and          Responsibility & Marketing
significant risk for incidents of forced                                                                                   voluntary codes concerning product
or compulsory labour, and measures                                                                                         and service information and labelling
to contribute to the elimination of all                                                                                    by type of outcomes.
forms of forced or compulsory labour
                                                                                                                           PR5 Practices related to customer            (Fully) Marketplace – Customer
Society                                                                                                                    satisfaction, including results of surveys   Service
                                                                                                                           measuring customer satisfaction.
SO1 Percentage of operations                (Partially) Society – Programs to
with implemented local community            support children, vulnerable groups,                                           PR7 Total number of incidents of             (Partially) Marketplace – Product
engagement, impact assessments, and         youth - Building ties in the Society -                                         non-compliance with regulations and          Responsibility & Marketing – Other
development programs                        Cultural heritage – Local communities                                          voluntary codes concerning marketing         products
                                                                                                                           communications, including advertising,
SO3 Percentage of employees trained         (Partially) Employees – Training   promotion, and sponsorship by type of
in organization’s anti-corruption           Programs                                                                       outcomes.
policies and procedures.
                                                                                                                           PR8 Total number of substantiated            (Partially) Marketplace - Regulatory
SO4 Actions taken in response to            (Fully) Corporate Governance –    complaints regarding breaches                Litigations
incidents of corruption.                    Compliance Committee                                                           of customer privacy and losses of
                                                                                                                           customer data.
SO5 Public policy positions and             (Partially) Marketplace – Regulatory
participation in public policy              Issues, Policy Forums                                                          PR9 Monetary value of significant            (Fully) Marketplace – Product
development and lobbying.                                                                                                  fines for non-compliance with laws and       Responsibility & Marketing - Other
                                                                                                                           regulations concerning the provision         products
                                                                                                                           and use of products and services.
                                                                    -136-                                                                                                                                    -137-
                                                        External Assurance Statement                                                                                                             External Assurance Statement

                                                                                                                                           1. Provide Type 1 limited assurance in accordance with the                [Building ties with our employees / Overview of OTE’s
                                                                                                                                           AA1000 Assurance Standard 2008 (‘AA1000AS’):                              workforce]

                   assURanCe stateMent
                                                                                                                                           ▪ Inclusivity – how they identified and engaged with stakehold-       ▪   Total training hours in 2010
                                                                                                                                              ers to gain a full understanding of issues;                            [Building ties with our employees / Training programs]
                                                                                                                                           ▪ Materiality – how they assessed the relative importance of          ▪   Number of reports filed about discrimination
                                                                                                                                              each issue; and                                                        [Building ties with our employees / Equal opportunities and
                                                                                                                                           ▪ Responsiveness – how they responded to stakeholder issues               non-discrimination]
                                                                                                                                              and how this is reflected in the CR Report.                        ▪   Expenses for corporate responsibility actions and sponsor-
                                                                                                                                                                                                                     ships (euros)
                                                                                                                                           2. Provide limited assurance on the following selected key                [Building ties with the society / OTE sponsorships and corpo-
                                                                                                                                           performance data                                                          rate responsibility actions expenses ]
                                                                                                                                           ▪ Number of students receiving internships or part-time work          ▪   Number of complaints in 2010 from operators
                                                                                                                                              experience                                                             [Building ties with the marketplace / New technologies and
Independent assurance statement by Deloitte Hadjipavlou                 To improve future management and reporting of CR in accord-           [Building ties with society / Supporting youths and promot-            broadband / Fault reporting centre for telecommunication
Sofianos & Cambanis S.A. (‘Deloitte’) to the management of              ance with AA1000APS we make the following recommenda-                 ing their technology skills]                                           operators ]
Hellenic Telecommunications Organization S.A. (‘OTE’) on the            tions to OTE:                                                      ▪ Direct and indirect energy consumption by primary source            ▪   Number of complaints from customers and percentage of
2010 Corporate Responsibility Report (‘CR Report’) for the year                                                                               (TJ)                                                                   complaints resolved within 20 days
ended 31 December 2010.                                                 Inclusivity:                                                          [Building ties with the environment / Environmental impacts            [Building ties with the marketplace / Customer service /
                                                                        ▪ OTE Management is engaged in a process of dialogue with             from the operation of OTE in Greece / Energy consumption]              Complaints management]
Limitations of our review                                                  its external stakeholders. Further formalizing stakeholder      ▪ Total direct and indirect greenhouse gas emissions due to the
▪ Our independent assurance statement concerns the electronic              engagement policies and procedures will promote a more             consumption of energy by weight (CO2 e)                            The above key performance indices are included in the the
   long version of OTE’s CR Report available on internet at                structured, formal and homogenized external stakeholder            [Building ties with the environment / Environmental impacts        electronic long version of OTE’s CR Report available on                                    engagement approach across the organization’s operations.          from the operation of OTE in Greece / Greenhouse gases and         internet at
▪ In the event of any inconsistency in translation between the                                                                                other gas emissions]
  English and Greek versions of the Report, as far as our con-          Materiality:                                                       ▪ Total transportation fuel consumption (litres)                      3. Provide assurance in relation to the GRI self-declaration
  clusions are concerned, the English version prevails.                 ▪ With continued focus on responsible procurement, further re-        [Building ties with the environment / Environmental impacts        Whether OTE’s self-declaration on page 2, applies the GRI
▪ Our scope of work was limited to OTE’s activities in Greece.            porting on how OTE manages and mitigates the environmen-            from the operation of OTE in Greece / Road transportation          guidelines at level B+ in preparing the Report, is not materially
                                                                          tal and social risks associated with its supply chain would         activity of OTE owned vehicles fleet]                              misstated.
Our conclusions                                                           help stakeholders understand the management of this material     ▪ Quantity of A4 paper consumed (tonnes)
Based on the scope of our work and the assurance procedures               issue.                                                              [Building ties with the environment / Environmental impacts        We carried out Type 1 limited (i.e. moderate) assurance in
we performed we conclude that:                                          ▪ During our interviews with the executives responsible for           from the operation of OTE in Greece /Solid waste disposal]         accordance with AA1000AS. A Type 1 engagement requires
▪ OTE has implemented processes and procedures, as de-                    managing material CR issues, we noted the existence of an        ▪ Quantity of technical waste recycled (tonnes)                       us to report on the nature and extent of adherence to AA1000
  scribed on page 26, that adhere with the principles of                  established communication between the CR team and these             [Building ties with the environment / Raw materials and            APS. To achieve moderate-level assurance we have used the
  inclusivity, materiality and responsiveness as set out in               executives. We recommend that in the future this commu-             waste management /Technical waste]                                 criteria in AA1000AS to evaluate adherence to AA1000APS in
  the AA1000 AccountAbility Principles Standard 2008                      nication occurs in a more integrated and regular manner so       ▪ Quantity of electrical and electronic equipment recycled            combination with our robust evidence-based and quality-assured
  (‘AA1000APS’); and                                                      that material CR issues can be identified and prioritized more      (tonnes)                                                           approach to professional, independent assurance.
▪ Based on the assurance work we performed, nothing has                   effectively.                                                        [Building ties with the environment / Raw materials and
  come to our attention that causes us to believe that the specif-                                                                            waste management / Waste electrical and electronic equip-          We carried out limited assurance on the selected key perfor-
  ic CR performance indicators defined below and OTE’s self-            Responsiveness:                                                       ment]                                                              mance indicators in accordance with the International Standard
  declaration on page 2 that it has applied the GRI guidelines at       ▪ The CR Report lists a number of targets, however to strength-    ▪ Quantity of paper recycled (tonnes)                                 on Assurance Engagements 3000 (ISAE 3000). To achieve
  level B+ in preparing the Report, are materially misstated.             en responsiveness to material issues we would recommend             [Building ties with the environment / Raw materials and            limited assurance the ISAE 3000 requires that we review the
                                                                          that OTE Management set more long and short-term targets,           waste management / Paper use reduction and paper recycling]        processes, systems and competencies used to compile the
Our observations and recommendations                                      which incorporate relevant, quantitative and focused perfor-     ▪ Number of occupational accidents                                    areas on which we provide assurance. This is designed to give
OTE has made the following key improvements in managing                   mance indicators.                                                   [Building ties with our employees / Health and Safety / Occu-      a similar level of assurance to that obtained in the review of
and reporting its CR performance during 2010:                                                                                                 pational accidents]                                                interim financial information. It does not include detailed testing
• It has further expanded its CR team to include key person-            The observations and recommendations have been taken into          ▪ Lost time due to occupational accidents (days)                      of source data or the operating effectiveness of processes and
nel in various directorates charged with facilitating mainly the        account in forming our conclusions on the CR Report as set out        [Building ties with our employees / Health and Safety / Occu-      internal controls.
environmental CR data gathering and reporting.                          in this statement.                                                    pational accidents]
• It further improved its CR reporting process, through a                                                                                  ▪ Percentage of male/female employees                                 Our key assurance procedures
survey, addressed to the executives responsible for managing            Scope of our work and the assurance standards we used                 [Building ties with our employees / Overview of OTE’s              To form our conclusions, we undertook the following proce-
material CR issues, with regard to stakeholder engagement.              OTE’s Corporate CR team engaged us to:                                workforce]                                                         dures:
                                                                                                                                           ▪ Percentage of female employees in positions of responsibility       ▪ Analysed and tested on a sample basis the processes related
                                                                    -138-                                                                                 -139-
                                                        External Assurance Statement                                                        GRI Statment Application level check

    to stakeholder identification and engagement, including             Roles and responsibilities
    review of a sample of engagements and the outcomes of               The Corporate Responsibility team of OTE has prepared the CR
    engagement;                                                         Report for the intended audience of stakeholders, as outlined in
▪   Reviewed the process that OTE used to identify and deter-           the ‘Corporate Responsibility and Business Strategy’ section on
    mine material issues to be included within the CR Report.           page 22. The team, who collect and organize the CR report data
    This included a review of external media coverage and peer          from the intra-company CR team members, is also responsible
    reporting on CR in 2010 to corroborate issues identified by         for the preparation of the CR Report and for the information
    OTE;                                                                and statements contained within it. The General Directors are
▪   Interviewed a selection of OTE executives and senior man-           responsible for approving the CR report data, determining the
    agement who have operational responsibility for CR issues,          CR targets and for establishing and maintaining appropriate per-
    including the OTE CR team to understand the governance              formance management and internal control systems from which
    structures used for managing CR, engagement with stake-             the reported information is derived.
    holders on CR issues, as well as implementation of CR
    related policies and initiatives in 2010 and the monitoring of      Our responsibility is to independently express conclusions on
    these activities;                                                   the subject matters, as defined within the scope of work above,
▪   Analysed and reviewed on a sample basis the key structures,         and in accordance with our letter of engagement. Our work has
    systems, processes, procedures and controls relating to the         been undertaken so that we might state to OTE those matters we
    collation, aggregation, validation and reporting processes of       are required to state to them in this statement and for no other
    the selected CR performance indicators;                             purpose. To the fullest extent permitted by law, we do not accept
▪   Reviewed information and explanations about the Reports’            or assume responsibility to anyone other than OTE for our work,
    assertions regarding CR performance in 2010;                        for this statement, or for the conclusions we have formed.
▪   Reviewed OTE’s approach to ensuring application of GRI
    guidelines, including checking that the GRI conformance
    index available on pages 127-140, contains the relevant indi-
    cators; and
▪   Reviewed the content of the CR Report against the findings
    of the aforementioned procedures and, as necessary, provided
    recommendations for improvement.

Our independence and competencies in providing assurance to
▪ We complied with Deloitte’s independence policies, which
  address and, in certain cases, exceed the requirements of
  the International Federation of Accountants Code of Ethics
  for Professional Accountants in their role as independent
  auditors, and in particular preclude us from taking financial,
  commercial, governance and ownership positions which
  might affect, or be perceived to affect, our independence
  and impartiality, and from any involvement in the prepara-
  tion of the report. We have confirmed to OTE that we have
  maintained our independence and objectivity throughout the
  year and in particular that there were no events or prohibited        Athens, 9 June 2011
  services provided which could impair our independence and             Deloitte Hadjipavlou Sofianos & Cambanis S.A.
  objectivity.                                                          Assurance & Advisory Services
▪ Our team consisted of a combination of qualified Accountants          Paris Efthymiades
  with professional assurance qualifications and professionals          Partner
  with a combination of environmental, CR and stakeholder
  engagement experience, including many years experience in
  providing CR report assurance.
-140-                                                              -141-

        OTE’s signal transmitters                                 OTE’s signal   OTE’s environmental activities

        OTE Employees Cultural Centers environmental activities                                  Initiatives for the salvation of the
                                                                                                 brown bear (OTE – NGO Kallisto)
                                                                    -142-                                                                                                   -143-

                                                                                                     “Safer Internet” campaign                  “Safer Internet” campaign

Wild bird release in cooperation with the    Fault management by OTE technicians

Fault management by OTE technicians                                                OTE call centre

                                                                                                     OTE Employees Cultural Centers environmental activities

OTE call centre      Football meeting of OTE’s Cultural Centers

                                                                                                     Students informative meetings at OTE’s Telecommunications Museum               Students informative meetings at OTE’s Telecommuni-
                                                                                                                                                                                    cations Museum
                                                                 -144-                                                                     -145-

Fault management by OTE technicians

                                                                         OTE supports the Association “The Smile of the Child”                        Internal “Anti-smoking” campaign

Wild bird release in cooperation with the NGO ANIMA

                                                                         Event of the NGO “S.K.E.P”      Safer Internet” campaign in OTESHOP stores
                                                                         (Association of Social Re-
                                                                         sponsibility for Children and
                                                                         Youth), with OTE’s support

ΟΤΕ employee volunteer blood donor           OTE’s Operations Centre

Children’s workshop in OTE’s Telecommunications   Recycling           OTE headquarters building

Specially trained technician