Creating values through a sustainable approachReport on PwC Czech Republic Sustainable business and Corporate responsibility activities for the 2013 financial year

What the leadership thinks

Environmental stewardship

About the report

Key performance indicators

Who we engage with, how and why

Contact details

People, diversity & inclusion

Responsible business and the marketplace

What Corporate Responsibility means to us

A few facts and figures

Community engagement

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Content

What the leadership thinks

Dear ladies and gentlemen,

It is my pleasure to introduce you to the latest release of PwC Czech Republic’s annual Corporate Responsibility Report. It summarises all our activities, results and news in the area of corporate responsibility. In this publication, we outline some of our achievements on this journey as well as some challenges we’ve faced and will face in the future.

At PwC, we understand that we have a role to play in being part of the solution to global challenges. We have a responsibility to help strengthen trust and integrity within the debate on how to create a more sustainable future for generations to come. We take that responsibility seriously.

We believe in the collective responsibility of business, government and the community to create a sustainable future together. We act responsibly and strive for change by focusing our skills and resources where we believe we are most relevant to society.

While we achieved successes, we have more work to do in supporting our employees through greater work/life flexibility initiatives to meet changing workforce expectations. Economic conditions continued to put pressure on our business model and the importance of trust in business continued to dominate the leadership agenda. Together, these challenges reinforced our need for our firm to have a key voice in the global conversation about the value of strong corporate responsibility practices and to lead by example and make a difference in the world around us.

I’m confident that PwC has a strong vision and a clear path as we continue the journey of creating a more sustainable model for future generations.

Jiří Moser Country Managing Partner PwC Czech Republic

West Cluster

Central ClusterEast Cluster

Central and Eastern Europe

29 countries

7 500 people

Globally 157 countries766 locations

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PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with close to 185,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.

“PwC” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

PwC Czech Republic is a member of the Central & Eastern European (CEE) region of PwC. The CEE region consists of firms in 29 countries and is composed of over 7,500 partners and staff. PwC Czech Republic plays an important role in the region with its more than 800 employees and offices in Prague, Brno and Ostrava.

A few facts and figures

West Cluster

Central ClusterEast Cluster

Central and Eastern Europe

29 countries

7 500 people

Globally 157 countries766 locations

 

 

 

 

Dalsi strana:

 

 

   

 

  

 

 

 

 

 

 

C t l

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Central and Eastern Europe29 countries7 500 people

US$32,1 billion revenues for the fiscal year ended 30 June 2013

Globally 157 countries766 locations 184 235 people including 9 597 partners

and 174 638 staff

Most desired employer (VŠE, 2013)

Most responsible large company (Top Responsible Firm, 2013, finalist)

Dream Tax Team (Daňař roku, 2012)

Our awards and recognitions

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At PwC we are committed to doing the right thing in our own business and to being a catalyst for change in the world around us. Our commitment to corporate responsibility goes well beyond embedding social, environmental and economic integrity into the fabric of our business. We aim to leverage our core skills and activities to help our clients address CR issues while acknowledging the need to also address them in our own business.We want to be part of the global conversation and movement towards responsible business practices that create positive change in the world. We want to be part of the solution.

Our new CR strategy focuses on two key elements:Doing the right thing which means playing our part in promoting responsible business issues that are central to our business – from the quality of our services and building an inclusive workplace, to our engagement with communities and our environmental footprint.

Being a catalyst for change which is about using our skills, voice, and relationships to work with others and influence activities that make a difference, create change and have a lasting impact on the world around us.

Today we’re helping organisations around the world strengthen their own corporate responsibility agendas through the many services we provide every day. In order to achieve these goals, we will continue to focus our efforts on four areas where we can make relevant and significant contributions: responsible business; people, diversity and inclusion; community engagement; and environmental stewardship.

What Corporate Responsibility means to us

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What Corporate Responsibility means to usOver the next year, we’ll be talking about our

CR work in a different way. We’ll be bringing everything together under the banner of ‘part of it:’, a campaign focused on highlighting the ways our knowledge, services, people and relationships are interconnected and help to build trust and create solutions to society’s challenges.This year we have decided to consolidate all activities under one roof and focus on one main theme, which will underline and combine all our efforts; thus, it will be consistent and recognisable internally and externally as well.Our vision is to approach our corporate responsibility as a vital part of our brand and make every effort to reflect this in our business focus.

As a consulting firm the main resources we have are the knowledge, competencies and experience of our people. With this in mind, we would like to have an impact on leading and inspiring the development of the talents, education and self-confidence of the clients of NGOs.

Responsible Business & the marketplace

100% of employees confirmed our business conduct

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At PwC, we take pride in the fact that our services help to improve the credibility, transparency and reliability of financial statements and information that help guide investors and stakeholders to make informed decisions. We have a responsibility to uphold and embody ethics, transparency and integrity within every aspect of our work.We have the ability to be leaders in developing trust within business, and to use our skills and relationships to influence the marketplace to promote more ethical and responsible behaviour.By exemplifying responsible leadership, we can make a difference in the success of our clients, people and communities combined, and illustrate the ways that sustainability is a core component of strong governance and organisational accountability.

Our marketplace initiatives in FY2013 reflect our ongoing efforts to integrate good corporate responsibility practices into our own business operations, and to look for opportunities to lead the debate on issues impacting our profession. To that end, we have continued to develop thought leadership publications on a variety of topics that utilise our people’s diversity of experience—including business, science, the arts and engineering—which provide our clients with a depth of perspectives to help them tackle complex organisational issues. We have also undertaken an economic impact analysis to help quantify our firm’s impact on the marketplace, as well as provided a detailed summary of how our firm’s sponsorships are creating tangible impacts for our communities

Our role as professional service providers

A key component of our overall CR strategy is supporting strong ethical and transparent business practices across the entire enterprise and all that we do. One of the ways we do this is by developing our people’s responsible leadership skills, but we have numerous other initiatives.

Our focus on ethics and transparency

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These include:

Our Code of Conduct - While we conduct our business within the framework of applicable professional standards, laws, regulations and internal policies, we also acknowledge that they do not govern all types of behaviour. In addition to them, PwC has developed a Code of Conduct that is an integral part of our day-to-day work. It is based on our core values of excellence, teamwork and leadership.

Ethics helpline and ethics training - We are committed to ensuring that we have appropriate systems in place to address complaints or allegations of improper conduct. All partners and employees are obliged to report any unethical behaviour via the internal Ethics Helpline

Independence policy - Our firm’s independence policy helps to ensure that we conduct business relationships without any financial interest in or personal or business relationships with our audit clients and their affiliates. All of our people are required to participate in interactive independence training sessions as well as complete an annual confirmation with respect to their personal responsibilities as they relate to independence and firm compliance.

Risk management: Client selection process - We make sure we keep our integrity and responsibility when it comes to the clients we serve. We only work for those companies whose activities are legal and do not violate our principles. Strict compliance procedures are in place to ensure that current or new engagements do not impose any reputational risks as we do not wish to associate ourselves with such companies. Client service feedback - To monitor and assess our clients’ satisfaction with the services we provide, we conduct an annual feedback review with every client. We consider the ongoing dialogue with our clients about the quality of our services and value we bring them to be a key element of our client relationships.

Sustainable Supply Chain Policy As a large company, we are aware of our potential to influence our supplier chain. In 2010, we implemented a new purchasing policy. We purchase goods and services based not only on financial criteria, but also on respect for the environment and society.

Connecting with the market and thought leadership

As a way to help lead conversations related to our corporate responsibility initiatives and the ways we’ve integrated this into our business operations, we managed the following initiatives in FY2013:

CEO Agenda

Discussion meetings with CEOs The platform of discussion forums between general managers offers an opportunity for a meeting of the most powerful people of Czech business. PwC is aware how these people could influence the current and future status of the Czech economy and the entrepreneurial environment. During the meetings held 3 times a year, CEOs share their perspectives, ideas, opinions and knowledge; additionally, they try to find new approaches to the coming trends. They also try to influence and provide examples on how to do business fairly with respect to others.

The themes of recent meetings were: The strategy for achieving long-term success, Innovations and Success, which lead to competitiveness and sustainability.

CEO survey For the fourth consecutive year, PwC Czech Republic conducted the Czech CEO Survey. In this edition we analysed responses from a hundred CEOs and owners of major companies in the Czech Republic. The survey, with the title Jak uřídit let eknomickými mračny (Piloting through economic clouds), focuses on strategies for the new economic reality, and was released together in cooperation with the weekly magazine Ekonom. The Czech study is a follow-up to the 15th Global CEO Survey that is traditionally presented at the World Economic Forum in Davos.

Leader’s Talk In a series of moderated discussions we share opinions with the most respected leaders of Czech business about current situations as well as focus on long-term sustainable entrepreneurship bearing in mind future generations. One of the current themes was tax planning in companies.

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PCS Agenda Štiky českého byznysu - Sharks of Czech business The ranking of Štiky českého byznysu (Sharks of Czech business) was founded by the Coface Czech organisation in 2005 with the aim to identify the most dynamically growing companies in the Czech Republic (Czech as well as multinationals). The ranking is based on hard economic data and monitors their growth over the last three years. PwC Czech Republic is a partner of Štiky českého byznysu (the Sharks of Czech business) competition. PwC would like to increase awareness on how important sustainable growth is for the future of the Czech business environment. Moreover, we organise club meetings with the winners as well as with interesting leaders from the Czech business environment, who then share their inspirational stories. The last topic discussed was “the strategy of long-term sustainable entrepreneurship”.

Czech innovation The Czech innovation (ČIN) platform was established to promote the innovation potential of enterprises and individuals and to increase the competitiveness of the Czech Republic. Many Czech companies need to innovate to be successful. We can use this project to give them the opportunity to promote their segment and to find new ways to build relationships with them. ČIN was founded in 2011 and PwC is one of the founding members. Every year we participate in the annual competition of innovations. Winners of this competition are announced at the Czech innovation festival. In addition to this we

implement other projects to promote innovative culture, such as seminars, reports and analyses, networking opportunities, etc.

Czech trusts Trust funds are new legal instruments that can be used to manage long-term assets. The substance of the trust is to prevent the dilution of assets with an emphasis on long-term sustainability.

PwC organised several specialised conferences on this topic which highlighted the last financial year. One conference of family firms in Ostrava was organised in cooperation with the weekly magazine Ekonom. Over 50 participants from representatives of the owners of family businesses had the opportunity to hear “What to do next when you have a successful family business.” Sustainability, succession and transmission to future generations were the main themes of the conference.

Fraud Forum Fraud Forum is a platform for sharing the knowledge and experiences of managers and experts in their role in preventing, detecting and investigating frauds in organisations. It deals with issues related to ethics in business. One of the current topics was “Utilisation of data analysis tools for detecting deceptive conduct in purchasing” or “How to use the information to make the investigation and detection of fraud more efficient.” Tax, Legal and Business Newsletters The Tax, Legal & Business Newsletter and Tax Flash bulletin provide information about the current changes in the Czech business environment.

We are promoting public debate on important societal issues such as tax reform, tax policy and the future of the not-for-profit sector.Because of what we do and our size, profile and client base, we are uniquely positioned both to influence the public agenda and to be influenced by it. We work alongside government and major Czech institutions, associations and business chambers to enhance the quality and integrity of the country’s businesses.

Peter Chrenko, a partner of the Tax and Legal department, talks in the conference Forum for Sustainable Business, which took place at the PwC CR headquarters. PwC CR was a partner of the conference and talked about our corporate responsible activities in facilitating a dialogue between the public and private sectors to make the tax system more effective and transparent.16

Having a public voice

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Our goal is to support the active dialogue and regular and open discussions between the Czech private sector and government in order to find changes in the Czech tax system that will not only benefit both sides, but will also improve the image of the Czech Republic abroad. We see such opportunities especially in decreasing the difficulty of paying taxes and related costs and time-consuming administrative burden; managing tax risks in real time by improving cooperation based on open dialogue and trust. We strive to bring and share experience from abroad and we look for simple and effective means to make these ideas work.

Paying TaxesPaying Taxes, a unique study from PwC and the World Bank Group, measures the ease of paying taxes across 183 economies worldwide by assessing both the cost of taxes and the administrative burden of tax compliance. Although the Czech Republic has one of the most time-consuming tax systems, the situation has significantly improved in the past few years thanks to

continuous changes in the tax system and efforts to support voluntary tax compliance. We will continue our efforts to help both our clients and government in this process.

Tax Policy ClubThis is a platform for CFOs of leading businesses (the biggest taxpayers) operating in the Czech Republic to meet, discuss and network with representatives of public sector institutions shaping the Czech tax system and policies. These meetings provide an exclusive platform to share information and experience and influence the direction of the Czech tax system and policies.

Effective tax system

Decreasing administration complexity for flexible economical migrationOur Global Visa Solutions team, which is part of our Tax and Legal department, is continuously facilitating a dialogue among the Ministries, business representatives and NGOs about improving of legal framework regulating economical migration. One of the successes of their activities is a project entitled “Fast Track”, which sped up the issuance of the relevant work and stay permits for the employees transferred within the companies and assigned to work in the Czech Republic. They are also helping government and ministries to adjust EU direction for Intra-company transfers of employees.

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World Business Council for Sustainable Development: (WBCSD) - organisation of forward-thinking companies that galvanises the global business community to create a sustainable future for business, society and the environment.

Turnaround Management Association is a non-profit company focused on the issue of the financial crisis and company bankruptcies. Petr Smutny, a partner at PwC, is a co-founder of the International Association affiliates TMA International. • It serves as a platform for interdisciplinary

collaboration and sharing of knowledge and experience between people engaged in business insolvency problems and its solutions

• It promotes high ethical and professional standards in all activities related to insolvency and its solutions

• It contributes to the education of persons dealing with insolvency and its solutions, and the total cultivation of the legal and business environment related to insolvency and its solutions

• It brings together experts in the field of restructuring, law and finance

Chambers • We are a member of almost 40

professional organisations. As of 2010, we became active members of platforms that aim to promote responsible leadership, namely Czech Chamber of Commerce, Business for the Community, CSR Committee at the American Chamber of Commerce.

• All year long we use opportunities to increase awareness about corporate responsibility. Last year we participated in the third Forum for sustainable business.

Memberships

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Our Sustainable business solutionsIn response to the needs of the clients, we offer services to companies that want to:• create or further develop a sustainability

strategy closely aligned with their business and results

• strengthen their ability to create long-term value for their shareholders and other stakeholders

• analyse strengths and weaknesses and identify areas of new opportunities or key risks

• increase operational efficiency and limit the negative impact of their business on the environment

• improve communication and cooperation with stakeholders

• measure and report sustainability activities

Business for the CommunityBusiness for the Community is a platform which helps to improve the cooperation of companies as well as their professional background, and allows them to share experience and seek new approaches in the area of social responsibility.

We are a member of the Leadership team consisting of CEOs and owners who develop the platform strategy and turn the ideas and goals of the platform into reality. The platform brings together companies that are aware of their impact on the environment and the society they operate in and support employee development or want to improve in these areas. We are actively involved in several expert working groups operating within the platform, such as Women in Leadership, Skilled pro bono work – Know How for a better world.

VIA BONA awardThere is a long tradition in the Czech Republic of companies behaving in a responsible and sustainable way, especially in regards to support of the region where the company is active and towards their employees. This is also one of the reasons why PwC Czech Republic became a partner for the third consecutive year of the VIA Bona Awards and its category for small and mid-sized companies. The VIA Bona Awards honours the philanthropic efforts of individuals and companies in the Czech Republic that are an inspiration for others. PwC representatives are members of the expert jury that evaluates nominations.

How we support sustainable businesses

People, Diversity & Inclusion

72% of employees are proud to work at PwC

The team of Václav Prýmek, a partner in the Audit department, who was a captain of one team within Global Corporate Challenge (in the picture are Václav Prýmek, Ludmila Váchová, Hanka Vránová, Tereza Radvanová, David Musil)

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Our peopleResponsible leaders are trusted advisors who are committed to taking into account the needs of both current and future stakeholders in delivering value to our clients and each other. Enriching professional experiences, everyday coaching and high-quality learning and development opportunities equip our people with the knowledge to engage others in a meaningful and inspiring way.

In FY2013, we continued to help our people develop new skills through enhanced working practices, diversity and inclusion initiatives, coaching and supporting work/life flexibility. We also encouraged the development of a strong responsibility mindset by engaging our people in conversations related to both our environmental and marketplace initiatives. By giving our people the right tools, they can understand the impact of their actions on others, and the interconnectedness of our society.

Healthy LifestylePwC has decided to launch a new initiative, which supports a dynamic, healthy and productive workplace. It’s understandable that our work requires us to sit on our chairs several hours at a time (to think, analyse, read and write). We need to balance this out by staying active and fit. The Czech office decided to take part in the Global Corporate Challenge, an international competition where 70 of our employees competed with thousands of company employees around the world. They received a tiny 3D sensor which measures their daily activity (e.g. walking and taking the stairs). Our Czech teams walked a total of 75 659 km. This equates to walking around the world nearly twice. The Challenge also has a responsible part, because it not only raises awareness of staying healthy but also supports UNICEF.The supporting activities were trips with our partners, self-defence courses, yoga classes, fresh and tasty snacks in our PwC Café and many more.

All of the different activities supporting healthy lifestyle or other areas of free time are provided by the firm through the flexible benefit system. Find more information on page 26.

Developing responsible leaders is a fundamental component of our overall approach to Corporate Responsibility

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Providing quality opportunities for our people and helping them grow and succeed as professionals is a key component of our people strategy. We continue to invest in our people’s development throughout their careers – to support them in their current positions as well as prepare them to progress to more senior roles within the firm or elsewhere. Learning opportunities at PwC are a mix of on-the-job experience, coaching, and professional and business and management courses, which are supported by a range of activities including mobility assignments.

The AcademyAs mentioned in the Marketplace section, the Academy is our specialised training centre offering education to clients and our employees. The Academy provides curriculums such as IFRS Centre of Excellence and ACCA Advantage.

Global MobilityImproving the mobility of our people through international work opportunities in other PwC territories is an important component of developing our key talent as we seek to meet the changing needs of our clients.

Milestone promotion trainings We provide our newly promoted employees with special development trainings to prepare them for the next steps in their careers.

Buddy system for new joinersTo make the start in the new environment easier, we have introduced a programme for all new joiners. Upon his or her arrival, each new employee is assigned a buddy who will familiarise them with life here at PwC.

Developing our talents - Coaching, learning & development

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Measuring our success The more engaged our people are, the more likely they are to be motivated to contribute to the success of the firm, each other and the community. Our annual employee survey plays a critical role in obtaining their opinions and feedback on our key people and firm priorities, as well as measuring their engagement.Every year PwC reviews the overall feedback, identifies problematic issues that were generated in the survey and prepares an action plan to address them.

PwC ChoicesSince 2009, PwC has been using a flexible system to provide benefits. This system is called PwC Choices. Each employee is entitled to an annual virtual budget of points and can choose services focusing on health, free time, culture and financial products from over 2,000 providers according to their own preferences.

Supporting creativity and ideas

Key talents programme

Our Key talents programme is about helping our people to achieve their full potential while ensuring that we have the right people in the right roles to deliver value to our clients.

Career development

We help our staff to develop based on their competencies, skills and aspirations. We have a performance management process in place that helps our staff to record their accomplishments throughout the year, better assess their individual performance and provide feedback on how well they demonstrate certain core competencies, behaviours and our firm values of excellence, teamwork and leadership.

Individual coaching

We conduct individual one-on-one coaching sessions.

Developing young talents

We work together with 8 Czech universities and 10 student organisations and focus together on developing the potential and talent of young people who might in the future become our colleagues and future leaders.

Diversity & Inclusion

Diverse perspectives lead to better decisions. That simple and basic truth underlies PwC’s Diversity and Inclusion strategy whose aim is to fully move to a culture that recognises and values everyone for their differences. Diverse teams are more innovative and bring different perspectives to the table. At PwC, we encourage people and teams to have a go at trying new things and challenging the status quo. Diversity & Inclusion are just one part of achieving our strategy.

3Veronika has been working in PwC for many years and, after a short break, she is back on board.

Roman: “I am very grateful that I have work and could be part of such a big company. My work consists of shredding confidential materials which leave the

building, so I believe that I do something important. What I love about my work is that sometime some colleagues, who are now my friends, come to talk to me and give me a hand for a while. The reason they do it to give them a moment to clear their heads or just to have a break. But this makes me feel that I am part of the group.”

Our diversity approach and offers which help women and men work, and also have time for their private lives.It is important to us that we’re a responsible business that treats people fairly – people are our greatest asset - we’re encouraging open minds, creating value for women and men, creating career opportunities, creating leaders by giving opportunities to women as well, while one of our 4 leading partners is a woman.

Flexible working arangementPwC has a number of flexible work arrangement (FWA) programmes which provide our people with solutions to fit their needs for balancing work and life priorities. The FWA include: part-time, home office, flexible working hours, unpaid leave/sabbaticals, etc. In the summer, we offer the compressed workweek option.

We provide opportunities to work from an environment which is the most suitable for the work being done – either in the office, at home, at the client or wherever it is best for the individual employee - so that private life and work life can be balanced. Also, women with can could arrange their work based on the demands they face. We have also arranged a variety of IT mobile technologies such as Skype-like video conferencing, Phone in computer, ICQ-like quick communication, Facebook-like social network, using your own mobile technologies and a hoteling system for booking a space in the office for a flexible working atmosphere.

It is PwC’s intension to create opportunities where everyone’s talent can develop. That is why we have employed 2 handicapped people for a long time. Roman and Veronika help to shred our confidential materials; Veronika also helps to clean the kitchens.

Inclusiveness of handicapped people in our working process

Community EngagementPwC has been working with community stakeholders to find out how we can achieve greater social impacts through our business operations.

CZK 1,045 ths for charitable donations and sponsorships

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We focus on using our skills, voice and relationships to work with others and to influence and create tangible change to help make communities better. We turned our attention to four key areas:• engage PwC employees in meaningful

community experiences that help build capabilities

• develop strategic relationships across sectors (public, private, government, not-for-profit)

• demonstrate how we are a responsible business

• share our community journey

We leverage our skills and position in the business community to impact social change. No longer satisfied with one-off philanthropic gestures, our people are committed to being responsible leaders by investing increasing amounts of time, money, and skills in long-term community projects. We collaborate with our charity partners in order to focus our impact and support them in realising their potential.

507 hours spent by partners and staff in volunteering events, pro bono work and other projects

Sharing our expertise We would like to support the non-profit area by consulting and mentoring NGOs and Social Enterprises and advise them on how to be sustainable and competitive in the long run.

The major example of this approach was our Mentoring Day with PwC for the winners of the Social Impact Award competition.Seven of our consultants offer their knowledge via individual mentoring to four winning teams and advise them in areas of• business plan, financial model, sustainability of project, • legal, • tax • communication.

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This was our second time partnering with the Social Impact Award competition, which provides an opportunity to students to create and realise new ideas and business plans, which are sustainable and socially responsible. From 12 finalists, the judges (including our colleague from PwC) chose 3 winners and one scored the best in the public voting. The prize for them was a Mentoring day with PwC. Our employees revised the winning business plans and offered advice on how to make their social enterprise sustainable in the long run.

Our Community Engagement focus areas include

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Forewear is a very interesting project, one of the 4 winning projects, which completely modified their core business idea . The newly modified business idea is to collect old clothes in companies, then recycle the unusable clothes and produce recycled material, which they make promotional materials from (such as covers for computers, phones, notes- books). This recycled material could be designed according to the visual identity of client companies or they use contemporary designers to help them prepare attractive looks for the final products. PwC gave them not only mentoring, but also collected old clothes for them to start their business. Currently, the first recycled material is in production and hopefully the first promotional materials designed specifically for PwC will be created soon.

One of the mentors from PwC, Vojtěch Opleštil, commented on his experience with mentoring: „It was very inspirational for me to meet people who are at the beginning of their entrepreneurship. The main thing was that we came up with strategic proposals, which significantly influenced the core business of the winners. When dealing with our classical clients, we can’t usually put together these kinds of solutions in just a few hours of consultancy. I have a good feeling that our advice helped to move good socially responsible projects further“.

„PwC mentors helped us to shape our business plan more realistically. They moved our thinking further – what kind of target audience we should focus on and how. Moreover PwC gave us the opportunity to realise our first activity within their premises, which gave us an enormous amount of experience“. said one of the members of the winning Forewear team.

Odyssey programme We participated in the Odyssey mentoring programme that supports talented female managers to develop their career. For the third consecutive year, managers from the non-profit sector also attended this programme. Our managing partner is one of the mentors.

Women in LeadershipThrough Business for the Community we have started to be a part of the Women in Leadership initiative. This initiative focuses on raising awareness of the public sector; creating discussions and cooperation with ministries, the public sector and companies about diversity and the senior roles women hold in business; and sharing the best practices of combining work and private life. The result of it is the signing of the Memorandum where the 18 largest and most significant companies confirmed their interest in creating equal opportunities for men and women. The result of this working activity will be published in our report for next year.

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Developing leaders with impact

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We have organised a few team volunteering groups from all three offices.A few teams from Prague were helping to paint and clean up after painting in different NGOs. One group of colleagues from our Brno office spent one day cleaning up in the Pálava nature reserve. And the Ostrava office volunteered in the Ostrava ZOO, their traditional volunteering partner.

Blood donationAltogether 16 people donated blood over the course of the year.

Working on contest committeesWe participated in the contest jury of the annual VIA Bona Awards for philanthropy as well as of the TOP Responsible Firm.

Donating to help charities achieve their financial goals: During the previous pre-Christmas periods we decided to give money to those who need it the most, and we dedicated the year’s entire budget for Christmas gifts to charity.Our Charity instead of gifts initiative is also being held this year, as well as our 11th traditional Christmas Charity employee and company fundraising project.

How does it work?PwC employees provide financial contributions to selected non-profit organisations by completing the payroll form for automatic deductions that is then matched by a donation from PwC. The overall sum of CZK 400ths was then distributed among our long-term NGO partners. We believe that the decision to dedicate the budget, originally planned for Christmas gifts, to the charity was appreciated by all sides and brought a pleasant change. We will continue with this approach in future years and we believe that more and more companies will follow our example.

PwC Club in the Prague office became extra busy for a few hours. The idea is that PwC volunteers sell their home-baked goodies to their colleagues for a price set by the purchaser – “pay what you feel is the correct amount”. The proceeds from the fundraising are then used for selected charity projects.

Volunteering Our philanthropic initiatives

The director of the Fund for Children in Need, JUDr. Marie Vodičková, accepting our donation in the amount of CZK 108 000.

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„I would like to thank PwC and its employees for their long-term support. We really appreciate this interest. This year’s contribution will be used to finish the children’s house Klokánek in Ústí na Labem“ said Ms. Vodičková. Over the 9 years of co-operation PwC has donated CZK 1,7 million to the Fund for Children in Need.

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Christmas Charity is a long-term fundraising project of PwC Czech Republic. In the 11 years of the project’s existence, we have raised and distributed nearly CZK 5 million.

CZK 13,000 for Sue Ryder Home Sue Ryder Home has earned CZK 13,000 through our annual charity clothes collection. We have donated nearly 30 huge bags of possessions. The collection of clothes, toys and other things which our employees donate is part of our Christmas initiatives.

This year the donations were divided among 8 selected non-profit organisations. Five organisations are our long-term partners and 3 new organisations were nominated by our employees in an internal nomination process. The final split of the donations reflects the preferences of individual contributors:Most of you wanted to support the Fund for Children in Need, an organisation we have been supporting for 9 years already, and hence the donation to this organisation is the highest.

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PwC has a long-standing tradition of investing in and developing our communities. Engaging our people to get involved not only makes a difference in the lives of others, it enables us to better connect with one another, creates stronger relationships across our many lines of service and develops our future leaders. Our goal is simple – to inspire positive, lasting change in the communities in which we work and live.Our long-term partners were chosen by our employees and we would like to participate in the projects that support children and young people in crisis, without parents or with problematic families; but thanks to the efforts of NGO organisations, their lives are developing in a positive way.

Long-term charity partners

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The Fund for Children in NeedWe donated contributions of CZK 108 000 to the The Fund for Children in Need. This contribution was used for reconstruction and finishing Klokánek, the house for children in crisis. This particular one is located in Ústí nad Labem. The building is offering 3 flats for 13 children.

House of Three WishesOur contribution was used to launch a new extension of the building within the consultancy centrum. The House of Three Wishes was able to finalise the refurbishment and decoration of the interior and use the money to cover the costs for the first month.

Café BazaarThis year’s contribution supported their client David, who had an opportunity to work in the café as a waiter, which was his first work experience after leaving Asylum house for children. The training program ran for a year, and our financial donation helped to prolong this training to meet David’s needs.

Archdiocese Charity - Asylum House GloriaThe mission of the asylum house is to provide space for children who don’t have homes. Thanks to our contribution, the service of the asylum house was also extended to even help the mothers of these children.

The Strahov Monastery LibraryManuscripts and the whole book collection from the Strahov monastery library are part of the national and cultural heritage of the Czech Republic. We focused our support on saving historical manuscripts. A renovation of the depository is needed in order to preserve the collection.

„We have been trying to expand our capacity for a long time, so we would like to thank you for your contribution, based on which we were able to complete our plans so quickly.” House of Three wishes.

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This year, we have also encouraged our employees to choose additional NGOs to support within the auspices of our Christmas charity.

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These organisations were nominated by our employees who also participate there as volunteers:

Inbáze – we supported a program for the children of immigrants to allow for a smoother integration into Czech society.

Gender Studies – our contribution was used to support free legal consultations, where people could discuss any instances of discrimination they had had to deal with.

Blue Door organisation – we supported the service of the centre, which helps people afflicted with physical disorders or problems.

CZK 400 000 donation within the Christmas Charity 2012 philanthropic financial collection

Environmental Stewardship

34 % reduction

of carbon

footprint per employee *

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PwC Czech Republic has set itself a challenging target of cutting our carbon emissions by 25% per employee by financial year 2013, from a 2008 baseline.*

Major Czech aim is to reduce our carbon footprint by influencing all relevant factorsAs a professional services firm, our environmental impact lies especially in • excessive consumption of paper • waste production • business travel • energy use

To reach our aims we are concentrating mainly on:• raising awareness of environmental issues

among staff • reducing our paper usage, properly sorting

waste, reducing our carbon and paper consumption

• engaging responsible suppliers.

To achieve this target, we have created an Environmental Action Plan that you can read about in the 2011 Corporate Responsibility report.Based on the final measurement we managed to reduce our CO2 footprint by 34 %.

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At PwC, we have a long-term commitment to managing our impact on the environment.

Our key focus areas & activities on how we would like to decrease our impact on the environment are:• measuring and reporting

our carbon footprint and work with our suppliers to understand our supply chain footprint

• minimising the intensity of our CO2 (equivalent carbon dioxide) emissions by making operational efficiencies and investing in technological innovations, especially within our new building

• recycling in the office We’re working with our suppliers and our

employees to continually improve our waste measurement and management. Waste processing in PwC is managed by our outsourced contractor and we work together to measure and report data for each waste stream, for each of our offices. We currently recycle the following items: paper, plastics, glass, batteries and lighting devices and mixed waste.

• other green office initiatives Besides recycling, we support default

double-sided printing, printing on recycled paper that is set as the default printing paper in all printers and offices. Our meeting rooms are equipped with white boards and glass water jars that replaced previous plastic bottles. We traditionally use recycled paper towels.

• supporting greener travel We encourage our employees to use

alternative means of transport, be it while commuting to the office or travelling to see a client. We also extensively use videoconferencing and support carpooling where possible.

• Despite this, we have noticed an increase in business air travel by 41%–not every meeting can be done virtually. Because of our unique expertise, we created an alliance with the UK team, and we’re helping with many international projects from within the CEE region. That is why our consultants are travelling more.***

We have also equipped our buildings with facilities that make cycling to work easier.

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City Green Court is a very environmentally friendly building designed in line with the latest worldwide trends. It was the first building in the Czech Republic to be awarded the LEED Platinum certificate. City Green Court Awards:• LEED Core and Shell 2009, Platinum

Precertification, U.S. Green Building Council

• LEED Core and Shell 2012, Platinum Certification, U.S. Green Building Council

• Best Office Development, Construction and Investment Journal Award 2012

• ESSA – Environmental, Social and Sustainability Award

• Čestné uznání – Česká rada pro šetrné budovy

• CEE Green Building Award 2012• Best of Real Estate 2012

Marie Passburg, the president of Skanska Property ČR presents the LEED Platinum certificate, which confirms the high ecological standard of the building, to Jiří Zouhar - a partner of PwC CR, which is the major tenant of the building.

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Our main project of 2012 was moving Czech Republic headquarters including the CEE regional office into the most environmentally advanced building in the Czech Republic.

What is LEED certification?LEED (Leadership in Energy and Environmental Design) is an international certification system measuring the sustainability of buildings. It was developed by the U.S. Green Building Council (USGBC). It classifies buildings based on their compliance with the environmental protection criteria during their design, construction and operation.

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Sustainability was one of PwC’s building selection criteria, so all of us should be thinking about environmental issues.

3

Electricity:• We have managed to reduce our consumption

by 35% compared to FY12 We are renting 40% more space in Prague, but

our electricity consumption decreased by 35%. The reduction of daily energy usage is due

especially to an advanced lighting system, which includes daylight sensors, LED lighting in some common spaces and an automatic central lighting shutdown function.

Paper consumption:• 10% reduction compared to FY12 It isn’t just that we reduced our paper

consumption by 10%, we also recycle all the paper used for printing, and double-sided printing is set as the default.

Moreover, we have installed a new „follow-me print“ function on our printing machines. This means that a job is printed only after the sender is identified using his/her card key and prints everything at once, which also increases confidentiality; unclaimed jobs will never be printed, but will instead be deleted from the printing queue after one week.

How we engage our people and clients?Our strategy and initiatives to address the issue of climate change have truly allowed us to put ourselves in our clients’ shoes and understand what it means for our clients to implement similar strategies and initiatives.

Through these responsible business practices, we hope to expand the breadth of insight we can offer our clients, while cultivating high standards of corporate responsibility for the broader business community.

Here is the proof of how we utilise the maximum potential of this building:

On Saturday 23 March 2013 at 8:30pm, all three PwC offices participated in Earth Hour, an annual World Wildlife Fund event to raise awareness on energy consumption and climate change. We switched off 100% of our total office space. In addition to turning off office lights, we also encouraged our employees to participate at home.

We have undertaken a variety of initiatives to raise environmental awareness and engage our staff in environmental activities. Here are a few examples of our activities.

56 spend hours The Ostrava office spent one day volunteering in the Ostrava ZOO, their traditional volunteering partner. One group of colleagues from our Brno office spent one day cleaning up in the Pálava nature reserve.

Earth Hour Green volunteering

What green features and innovations can you find at City Green Court? http://www.pwc.com/cz/en/o-nas/podnajem-sublease-city-green-court/we-go-green.jhtmlas well as in our previous 2012 Corporate Responsible report

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Our Corporate Responsibility Governance The PwC Corporate Responsibility Strategy team helps to embed Corporate Responsibility into the fabric of the firm. Through the oversight of our sustainability strategy and continued assessment of our achievements and challenges, it provides leadership and direction on key policies and actions for implementation. The team includes the Country Managing Partner and senior management representing each of our lines of service and our operations. The Strategy team is supported by the Corporate Responsibility coordinator and by cross-functional teams of departmental volunteers from across the business.UN Global CompactAs a global network, PwC is a signatory to the UN Global Compact, which consists of ten core principles focused on the areas of anti-corruption, human rights, labour standards and the environment.

PwC Czech Republic reports annually on Corporate Responsibility issues that we – in dialogue with our stakeholders – believe to be the most relevant to our company.

The definitions and reporting criteria we apply are largely unchanged compared to last year. Those changes that have taken place are identified and explained. For reference, see the 2012 Corporate Responsibility report available at www.pwc.cz/responsibility.

The information in this report is confined to PwC’s activities in the Czech Republic. For extensive information on the corporate sustainability activities of our international organisation, please refer to the website www.pwc.com/globalcommunities.

The qualitative and quantitative data in this Corporate Responsibility report relates to the past financial year (1 July 2012 – 30 June 2013). Our reporting period is annual; we report for all our legal entities: PricewaterhouseCoopers Audit, s.r.o., PricewaterhouseCoopers Česká republika, s.r.o., PricewaterhouseCoopers Legal s.r.o., PricewaterhouseCoopers IT Services, s.r.o..

The quantitative information is based on measurements, unless other methods are stated. The information was obtained through our internalised central systems, including our financial records. The carbon footprint is measured based on the Greenhouse Gas Protocol methodology.

We apply the Global Reporting Initiative (GRI) G3 guideline to the extent that it is applicable to our organisation. The GRI G3 is a generally accepted format used internationally to report a firm’s corporate sustainability. Under GRI G3 guidelines, we have achieved a reporting level of “C” by reporting the appropriate number of protocols and amount of information regarding the firm. For more information regarding GRI G3 guidelines, visit www.globalreporting.org.

About the report

C C+ B B+ A A+

Mandatory Self-Declared √ Report Report Report Externally Assured Externally Assured Externally Assured

Optional Third Party Checked

GRI Checked

Quadrant Performance Unit FY 2013 FY 2012 FY2011 FY2010 FY2009 indicator

Business Completion % staff 100 100 100 100 100 conduct of annualSO3 compliance confirmation

Marketplace

INDICATION PAGE

Strategy Page 7 - 9

Profile of organisation Page 5

Parameters of report Page 49

Systems of operations Page 49

Managerial approach Page 7 - 9

Key performance indicators Page 50 - 51

GRI indicators Page 50 - 56

GRI Index

Key performance indicators

50

Workforce Partners Number 23 26 25 28 24LA1 of partners

Staff Number 843 831 826 825 688 of staff

Employee Response rate % 73 84 84 85 70engagement in Global People Survey (GPS)

Employee “I would % Favourable 52 55 64 64 71 satisfaction recommend PwC as a great place to work.”

“I am proud % Favourable 72 73 76 74 80 to work at PwC.”

Greenhouse Scope 2, Tonnes of CO2e 2 927 3 986 3 746 3 452 3 640 gas emissions scope 3 EN16 (energy, gas, ** business travel, waste, water, paper)

Business air Distance Thousands 4 096,9 2 900,3 3 177,2 2 202,8 2 774,8 travel(page 42) flown by of km *** partners and staff

Paper usage Office paper Thousands 5 963 6 631,2 7 676,5 6 848,5 6 896,7 consumption of sheets

Giving Charitable Thousands 1 045 1 071,2 1 067,6 895 1 011,3 EC1 donations and of CZK sponsorships Contributions Thousands 1 732 219 277 195,2 200,250 by partners of CZK and staff during the Christmas charity project Employee Participation in Number of staff 56 57 73 93 92 engagement volunteering and partners EC1 events Time spent by Hours 507 373 819 1 049 1 039 partners and staff in volunteering events, pro bono work and other projects

*1 Measure based on the global Greenhouse Gas Protocol standards.

People

Environment *1

Community

FY 2013 FY 2012 FY 2011 FY 2010 FY 2009

GRI indicators within 3 categories for 2013:

Economic

Environmental

Social

EC1 We are reporting our Global Annual Report. The current version for the 2013 financial year can be downloaded from: http://www.pwc.com/gx/en/annual-review/download-order.jhtml

The Czech Annual Report is published in the Commercial Register. The new data will be published in the middle of December 2013. www.justice.cz

Charitable donations and sponsorship

Charitable donations and sponsorships CZK 1 045 thousand

Contributions by partners and staff during the Christmas charity project CZK 173,2 thousand

EN1 Paper usage 5,963 thousands of sheets

EN2 Recycled paper 100% of all used paper is recycled since 2013

EN3 Direct energy consumption Reported below, page 53

EN16 Greenhouse gas emissions Reported above, page 51, 53 (all consumption of relevant energetic indicators – electricity, gas, heat, waste, travel costs, paper are calculated within the GHG measuring report)

EN22 Waste Reported below, page 54

LA1 The total number of employees based on type of contract Reported below, page 54

LA10 Average number of training hours Reported below, page 55

SO3 Completion of annual compliance confirmation 100%

Our own indicator, which we measure every year, Reported above, page 51 is Employee engagement and satisfaction

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EN3 - Direct energy consumption

Gas

Heat

Electricity

Water

Indicator FY2013 FY2012 FY2011

Prague - Gas consumption (kWh) 396 208 837 360 908 010 measured until December 2013

Ostrava - Gas consumption (kWh) 40 904 n/a n/a measured from the financial year 2013

Prague - Purchased heat (GJ) 1 981 n/a n/a measured from January 2013

Brno - Purchased heat (GJ) 263 n/a n/a measured from the financial year 2013

Prague - Electricity consumption (kWh) 1 671 306 2 264 743 2 358 512

Brno - Electricity consumption (kWh) 41 550 41 544 41 544

Ostrava -Electricity consumption (kWh) 8 810 9 504 9 504

Prague - Water consumption (m3) 4 996 4 900 5 550

Brno - Water consumption (m3) 220 348 348

Ostrava - Water consumption (m3) 139 223 223

EN22For the financial year 2013, we have applied a new measurement approach and monitor different types of waste in detail. The Brno and Ostrava offices started to monitor waste from 1 January 2013.

LA1 - The total number of employees (based on data up to 30 June 2013)

Waste in tones Prague Brno Ostrava

Waste - paper and card (t) 7,5500 2,8600 3,1200

Waste - plastic (t) 1,7500 0,0062 0,0034

Waste - glass (t) 0,2700 0,0100 0,0000

Waste - misc waste (t) 31,0700 0,0000 0,0000

Department Total staff Female Male Part-time

Assurance 232 121 111 21

Advisory 110 27 84 6

Tax and Legal 156 98 58 24

Infrastructure 74 65 9 6

Department Prague office Brno office Ostrava office

Assurance 186 30 16

Advisory 111

Tax and Legal 139 17

Infrastructure 70 3 1

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Grade Hours of training Number of employees Average number of training hours

Partner 480 23 21Director 744 25 30Senior Manager 1 395 50 28Manager 4 947 80 62Assistant Manager 2 594 46 56Senior Associate, 5 675 125 45 Specialist, Consultant Associate, Specialist, 10 395 157 66 Consultant Assistant, Support 636 66 10

Grade Total staff Female Male Part-time

Partner 23 3 20 0Director 25 3 22 1Senior Manager 50 13 37 9Manager 80 45 35 14Assistant Manager 46 22 24 5Senior Associate, 125 73 53 11Specialist, Consultant Associate, Specialist, 157 87 70 8Consultant Assistant, Support 66 65 1 9

LA10 - Average number of training hours (based on data up to 30 June 2013)

Stakeholder group Types of engagement Benefits

Employees & partners

Potential recruits

Alumni

Clients

Government regulators

Professional bodies

General marketplace

Local communities and non-profit organisations

Suppliers

Media

Annual Global People Survey, focus groups, regular career meetings, training programme

Recruitment fairs, university lectures and contests, publications and webcasts

Alumni events and newsletters

Relationship management, annual satisfaction surveys, participation in industry and client forums

Participation in expert forum reports, publications and surveys

Board positions, participation in forums, collaboration on non-profit projects, dialogue about the needs, provision of professional expertise, volunteering

Formal supplier assessments, regular dialogue with suppliers

News releases, surveys and results announcements, conferences and roundtables, and continuing conversations with journalists

Inform employees about our talent strategy and working opportunitiesWellbeing assessment of our peopleCreate a diverse and inclusive workplaceRecruitment, retention, referral

Understand the client’s industry and business challengesIdentify opportunities to improve our services and productsBuilding trust-based relationshipsConnecting clients and sharing experiences

Contribute to marketplace thought leadershipHelp shape policies, regulations and standardsSharing experience from abroad

Inform about community investment decisionsShape joint community programmesDevelop opportunities to broaden our the experiences of our people Work in partnerships to develop solutions on specific challenges

Understand supplier concernsMutual support to enhance the quality of services and sustainability standards in our supply chain

Opportunity to communicate our performance and success storiesShare our thought leadership, insight into public and business concerns

Who we engage with, how and whyWe focus on cooperation with stakeholders and subjects we influence the most and the ones that are the most relevant to the success of our organisation.

The report is intended for everyone who wants to learn more about how a business strategy can be aligned with the concept of corporate responsibility, to get to know us better or to find inspiration. You will learn not only about what we do, but hopefully you will also get to know us better as a company and the approach we take.

© 2013 PricewaterhouseCoopers Česká republika, s.r.o. Všechna práva vyhrazena. V tomto dokumentu, název „PwC“ označuje společnost PricewaterhouseCoopers Česká republika, s.r.o., která je členem sítě společností PricewaterhouseCoopers International Limited, z nichž každá je samostatným a nezávislým právním subjektem.

www.pwc.cz/responsibility

Your feedback is important for improving our reporting and performance in the future. Please let us know how you think we are doing.

You can email us at:

Pavla ZemanováCR coordinator pavla.zemanova@cz.pwc.com

We look forward to receiving your feedback!