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Corporate social responsibility

8.1Community giving

8.1.1

At TomTom we are committed to having a strong, positive social impact. In 2015, we continued to focus our CSR activities on supporting causes across the world through financial contributions, donations of TomTom products & services, and by getting kids active through our 'Be Active' programme. Taking an active role and giving back to our local communities has always been an important part of our working culture. In 2015, we launched Be Active, a new CSR programme where we partnered with local charities that are focused on getting kids fit and active. This effort was carried out after research showed that on average, 74% of kids today do not get the recommended 60 minutes of daily exercise. This is a troubling statistic given that our research highlighted that 98% of parents believe active lifestyles at an early age is important for their children’s physical and mental development. As a result, this year we launched Be Active in three key markets: the Netherlands, the UK and the United States. These markets were identified as they are key markets for TomTom where we have a large market presence and therefore can make the most impact.

In the UK, we partnered with 'Kids Run Free' a charity that creates opportunities for children to run relay races in and out of school. TomTom supported them with funding for 10 races and provided our GPS watches and coaching for the young runners. In the Netherlands, we partnered with the 'Richard Krajicek Foundation'. This organisation was founded by Dutch Wimbledon Champion Richard Krajicek and gives underprivileged youth the opportunity to participate in sports. The programme supports these kids by building playgrounds, organising sport activities and even providing academic scholarships to those who continue to mentor other kids in the programme. Our employees have hosted a number of fundraisers throughout the year to directly support these efforts. In the United States, we sponsored the American 'Heart Association’s Hoops for Heart Campaign'. Their mission is to teach kids how to stay healthy and make a difference in the lives of others, whilst having fun. In 2015, we were involved in 'Hoops for Heart’s' events at North Attleboro Middle School in Massachusetts and at Excel Academy of East Boston, Massachusetts. Students from North Attleboro raised an amazing $108,000 this year for the American Heart Association. In addition, we sponsored local initiatives in Amsterdam such as Girls Day, Amsterdam City Swim, EU Code Week, the Dam tot Dam Loop and World Solar Challenge.

In April 2015, a 7.8 magnitude earthquake struck Nepal, killing over 8,500 people, leaving thousands injured and badly damaging roads and infrastructure. To support the rescue efforts, we partnered with Digital Globe and Open StreetMap to combine our mapping technology and re-map devastated areas of the country. Together we were able to revise 30,000 road edges and our overall contributions resulted in 321,726 map updates. The updates allowed various agencies such as USAID, the Red Cross, the Canadian Armed Forces and the Nepal army to carry out relief efforts throughout Nepal.


BUSINESS OUTLOOK

Our aim for 2016 is to continue to expand our Be Active programme and continue encouraging our employees to get involved in local initiatives and community giving.

8.2Supply chain

8.2.1

As a global business we are committed to continuously improving our supply management practices. TomTom uses its full membership of the Electronic Industry Citizenship Coalition (EICC), to achieve these objectives.

We have adopted and implemented the EICC Code of Conduct in our business processes and operations. This code sets out the electronics supply chain standards and practices for business conduct that we expect from our employees and our suppliers.

A management system has been established to ensure compliance with applicable laws, regulations, customer requirements and the EICC Code of Conduct. This framework also enables us to identify and mitigate operational risks and facilitates continual improvement in our supply management practices.

We expect our suppliers to comply with the EICC Code of Conduct and 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.

The EICC Code of Conduct is embedded in our vendor selection process and is signed by all our major tier one suppliers. We continue to 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 continue to believe are 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 2015, we completed facility risk assessments for 100% of our tier one major suppliers using EICC developed tools. This includes electronics assembly suppliers for the PND, in-dash navigation systems and sports products. These suppliers accounted for almost 88% of TomTom’s total supply chain spend. It also included 50% of our logistics suppliers, accounting for a further 6.5% 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 2015.



BUSINESS OUTLOOK

In 2016, we shall maintain our efforts to improve internal processes for the management of our product compliance programme.