Integrity is at the heart of everything we do at stc. This is true for every transaction and every stakeholder interaction in every location that we do business.

Our code of ethics, titled: “Integrity Takes Us Forward” – is aligned with stc’s core values of Dynamism, Devotion, and Drive, and ensures we hold ourselves and the way we do business to the highest ethical standards.

Every employee of stc, including suppliers, is bound by our Code of Ethics. Our Code of Ethics training program was made available to the subsidiaries that began the Ethics component of the stc Compliance Program activation during the past year.

In each of the past three years, 100% of stc Group employees and contractors signed the Code of Ethics Acknowledgement, stating that they have read, understood, and will abide by the code.

All stc employees, including senior management and subsidiary staff, are required to undergo a mandatory Integrity course that introduces the stc Code of Ethics and stc’s commitment to integrity. This course includes a module on Anti-Corruption and outlines the employee expectations and responsibilities surrounding the subject. All employees are also required to attend mandatory Advanced Online Integrity courses on Anti-Corruption and Gifts and Hospitality.

These training courses cover 21 modules, 9 of which are mandatory for all stc employees, with the remaining modules assigned to employees based on their respective job profiles and corresponding level of risk exposure.

In addition to mandatory integrity training, we also provide mandatory training on data privacy and cybersecurity. For more details on our data privacy and cybersecurity training program, please refer to the Data Privacy and Security section.

stc is committed to establishing a work culture in which employees feel comfortable raising integrity concerns. All employees and stakeholders are encouraged to report any integrity concerns through the designated Speak Up channels. These channels include respective employee managers, interdepartmental managers, the stc HR team, the Business Integrity team, and the Speak Up email (speak-up@stc.com.sa).

In 2023, we recorded 321 complaints or inquiries through the internal monitoring, reporting and whistleblowing system, of which 84% were substantiated and resolved. The remaining 16% of inquiries and complaints were transferred to relevant departments, as they pertained to minor issues that do not align with the integrity criteria, and were appropriately handled by the respective departments as per stc policies. By the end of the reporting year, we did not record any confirmed incidents of corruption. We also recorded a decrease in number of complaints or issues received through the internal monitoring or reporting system due to increased awareness among employees on the mechanism and process.

We rigorously comply with all laws and regulations within each of the countries in which we operate.

We actively monitor the recurrence of non-compliant cases, with a goal of resolving root causes for instances of non-compliance.

In 2023, stc Group recorded zero non-compliance incidents with environmental, society and national laws and regulations within all countries of operation.

We have well-established risk management mechanisms in place, including stc’s Enterprise Risk Management (ERM) Policy, ERM Framework, Risk Appetite Guidelines, and Governance structures. Ongoing risks are identified across the organization through both the quarterly Risk Assessment and the ongoing Top Risks process.

In 2023, we renewed our Business Continuity ISO certification and remain in compliance with ISO- 31000, as well as all related regulations issued by the Communication, Space, and Technology (CST) Commission.

The integration of Business Continuity and Operational Resilience with ESG principles is crucial for fostering sustainable, responsible, and resilient businesses.

stc’s business continuity, data centers, mobile communications network, and other network infrastructure and facilities – as well as the safety of its employees and customers – are among the most important priorities for the company. All of these areas have immediate and appropriate responses to deal with disasters and emergency incidences.

At stc, we compete fairly by following applicable competition laws and regulations, as we believe fair competition provides the basis for a healthy and prosperous economy.

No legal penalties were imposed regarding anti-competitive behavior or violations of antitrust laws throughout 2023 or in any preceding years.

We follow national standards and laws to ensure that our activities respect and promote human rights at all stc sites and facilities. In addition, we have extended our focus beyond stc’s internal operations to those of our suppliers, customers, and partners by encouraging them to make ethical decisions and choices regarding human rights.

As signatories to the United Nations Global Compact (UNGC), we commit to its Ten Principles, including respecting human and labor rights. The day-to-day responsibility for stc Group’s human rights performance is the primary responsibility of Legal Affairs, Procurement, and Human Resources departments, which work closely together with all applicable business units and functions.

Our Human Rights Statement is aligned with applicable laws and regulations for each jurisdiction we operate within. It also contains our overarching commitment to create a workplace culture that encourages respect for the individual regardless of gender, race, disability, citizenship, religion, marital status, or background.

Awareness and training are core elements of addressing human rights policies and are central to building a company culture that views human rights as being of the utmost importance. In 2023, we recorded 151,559 hours devoted to human rights-related policies and procedures relevant to our operations.

Responsible sourcing is a key priority when managing our supply chain. Our view is that ensuring a responsible, ethical, and sustainable supply chain will not only create positive environmental impacts but also enhance our overall economic performance.

Our approach to sustainable procurement is to ensure we source sustainable goods and services whenever possible, and encourage sustainable practices throughout the entire supply chain.

stc’s Responsible Supply Chain Policy statement affirms the company’s strong commitment to maintaining and promoting responsible business practices with suppliers while advocating integrity and transparency in all business dealings. In addition, stc’s Supplier Code of Conduct is part of contractual obligations for all suppliers, mandating fair employment practices for their respective workforces.

Supplier accountability starts with pre-qualification for bidding on applicable projects, with screening and qualification assessments following to monitor performance. We conduct regular screening activities to verify conformance with the Supplier Code of Conduct , as well as to assess environmental and social performance and supplier mechanisms for protecting workforce health and safety.

All significant investment agreements and contracts include human rights-specific clauses that have undergone intensive human rights screening. In 2023, 100% of new suppliers were screened for environmental, labor, and human rights standards.Supplier accountability starts with pre-qualification for bidding on applicable projects, with screening and qualification assessments following to monitor performance. We conduct regular screening activities to verify conformance with the Supplier Code of Conduct, as well as to assess environmental and social performance and supplier mechanisms for protecting workforce health and safety.

We actively support participation of small and medium enterprises (SMEs) through our own procurement activities, wherever possible, in line with the respective national visions of the countries that we operate within.

stc directly contributes to the development of local content by raising and developing standards for the role of telecom and ICT sectors in the continued growth and diversification of the economy, including through a recent agreement with the General Authority for Small and Medium Enterprises “Monshaat” to empower SMEs in the market. In 2023, we engaged with more than 665 Saudi SMEs.

At stc’s main office, a transition into a paperless environment has been completed. We use our internal stc system “HUB” in conjunction with the Oracle Procurement System to streamline and digitize procurement processes, resulting in 100% of biddings, work orders, and letter of awards now being paperless and the complete elimination of paper consumption related to procurement.

In 2023, spending on digitization reached approximately SAR 150 million, including training, research, and development.

We are dedicated to ensuring that our logistics and inventory management efforts have a positive impact on the local community and the environment.

Our three main goals and initiatives are as follows:

1. Uplift demand planning to promote responsible consumption and production.

2. Streamline operations to minimize our scope 1 and scope 2 emissions, while simultaneously increasing efficiency.

3. Advance the principles of a circular economy through increased material reuse and the safe disposal non-recyclable waste.

Ensuring greater local content is part of the KSA’s national agenda as it helps contribute to the development of the national economy through the participation of all economic segments.

The rawafed strategy is built on four strategic pillars, as summarized below.

As a testament to these concerted efforts, stc achieved a local content score of 42.9% surpassing the previous year’s achievements of 40.75%. This achievement not only exceeded our targets, but also set a new benchmark within the sector, underscoring our commitment to fostering local content participation and driving sustainable growth.

In alignment with Saudi Vision 2030, which aims to reach a vibrant society and a thriving economy by providing a suitable environment for growth, stc’s local spending from the start of rawafed until the end of the past year has reached more than SAR 34 billion.

Additionally, our efforts to localize the procurement of goods and services have also yielded notable results. Through strategic management of operating expenses and a commitment to supporting local suppliers, we achieved a localization score of 30.34% in 2023. Reflecting a 4.62% year-over-year increase.

For more information on rawafed, please click here