Corporate social responsibility
At TomTom we are committed to having a strong, positive social impact. We take an active role in supporting the communities in which we work. In 2014, we continued to focus our CSR activities on supporting causes across the world through financial donations and donations of TomTom products. In May, Serbia suffered the worst flooding in its history. As a result, over 40% of the country suffered damage and 3,500 kilometres of roads were destroyed. To support the efforts to rebuild the country’s road infrastructure, we donated €10,000 to the Serbian Red Cross.
Our PND donation programme supported several charities, including The American Red Cross which received over 1,000 devices to help emergency responders get where they needed to be faster in the event of a national disaster. We also donated PNDs to smaller charities which promote road safety, provide charitable care and help disadvantaged youth.
Taking an active role and giving back to the community has always been an important part of our working culture. In 2015, we are launching a new CSR initiative working with local charities that are focused on getting Children fit and active. For any charitable event we organise or take part in, the money raised will go to these charities and, as a company, we will also provide funding and resources to these charities.
As a global business we are committed to continuously improving our supply management practices. To enable us to effectively achieve these objectives, TomTom has been a member of the Electronic Industry Citizenship Coalition (EICC) since 2012.
We expect our suppliers to share our commitment to corporate social responsibility and continuous improvement in social and environmental performance; not only in the development and manufacturing of products but also in the way they conduct their businesses.
- Secure the commitment of our suppliers to meet our requirements;
- Use a range of analytical tools to identify and monitor supplier risk;
- Manage risks by monitoring where best to focus our auditing efforts.
We have an Electronics Code of Conduct, based on the EICC industry code of conduct, which sets out the electronics supply chain standards and practices for business conduct that we expect from our suppliers. This code is embedded in our vendor selection process and is signed by all our tier 1 major suppliers. We expect our suppliers to comply with this code. We believe that a risk management approach enables us to spend our resources efficiently by identifying areas of high risk. The risk profile, self-assessments and audits are all based on EICC industry-developed tools and practices, which we believe to be the most appropriate and relevant to our business and our supply chain. Using EICC tools is not only efficient for TomTom but it also sends a consistent message to our suppliers, and minimises the duplication of their effort between different customer requirements.
In 2014, we completed facility risk assessments for 100% of our tier 1 suppliers using EICC-developed tools. This includes electronics assembly suppliers for the PND, in-dash navigation systems and sports products. These suppliers account for almost 85% of TomTom's total supply chain spend. It also included 50% of our logistics suppliers, accounting for a further 6% of total supply chain spend. We found that the majority of the supplier facility risk assessments had a low-risk profile and there were no high-risk findings. As a result, we did not conduct any independent supplier audits in 2014. We also maintained our efforts to improve internal processes for the management of environmental product compliance in 2014. Our focus for CSR in 2015 will be to grow our community giving programme to help more local communities, and to maintain our efforts to work with our suppliers to make sure they follow the required standards of business conduct regarding environmental and social responsibility.