INTRODUCTION

Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges. Nokia Corporation (Nokia) is a manufacturer of mobile devices and mobile networks. Nokia connects people to each other and the information that matters to them with mobile devices and solutions for voice, data, and imaging, games, multimedia and business applications. The Company also provides equipment, solutions and services for its operator and enterprise customers. Effective January 1, 2004, Nokia reorganized its structure into four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. During the year ended December 31, 2004, Nokia announced a total of 36 new mobile devices in a wide variety of designs and technologies for all segments and at all price points. Of the products launched, 34 had color screens and 23 were camera phones, including its first mega-pixel camera phone, the Nokia 7610. In 2004, Nokia sold 10 million phones with integrated music players. The company includes four business groups: • • • • Mobile Phones Multimedia Enterprise Solutions and Network.

Nokia also includes two horizontal groups that support the mobile device business groups: • • Customer and Market Operations Technology Platforms.

Nokia, the Finnish telecom giant is today one of the world’s most admired companies. Fortune magazine1 has referred to Nokia as the “least hierarchical big company in the world". Nokia generates revenues of $19.9 billion and employs about 55,000 people. Its shares are listed on the New York, Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges. Networks deals with data, video and voice network solutions. Mobile Phones are the clear global leader. Many of the standard features of today's mobile phones, such as large graphic displays, signal and battery indicators, colored covers and ringing tones were originally developed by Nokia. Communication products include multimedia terminals for digital TV and interactive services via satellite, cable and terrestrial networks.

still the basis of Nokia's network infrastructure. Called the DX 200. He. Semi conductor technology was just evolving and Nokia. the Scandinavian countries came together to set up a multinational cellular network. In 1981. himself had little knowledge of the business. It was Bjorn Westerlund. despite being a newcomer. Kairamo. In the early 1970s. however. Nokia began developing a switch equipped with computer software and Intel's microprocessors. Westerland tied up with colleges and universities and hired technically competent people to implement the project. called Nordic Mobile Telephony (NMT). by recruiting outside talent and empowering the young engineers in the electronics division. Nokia decided to start an electronics division to diversify into telecom products in 1960. In the late 1980s. who became Nokia’s CEO in 1977. Nokia committed itself to GSM technology very early on and signed agreements to supply GSM networks to nine other European countries. played a crucial role in Nokia’s evolution as a leader in mobile phones. Nokia gradually strengthened its capabilities in the mobile handsets segment. Many other countries also accepted NMT.HISTORY Nokia was set up in 1865. three companies. The leadership of Kari Kairamo. the European conference of Postal and Telecommunications Administration (CEPT) decided to develop a common standard for digital mobile telephony. the Nokia Forest Products Company. This standard came to be known as GSM* (Global System for Mobile Communications). As Cable Works had expertise in power transmission cables and phone lines. . Soon mobile phones began to evolve as an affordable communication medium even for the common man. president of Cable Works who mooted the idea. and international roaming facilities. Finnish Cable Works and Finnish Rubber Works merged. Fredrik Idestam established a wood pulp mill on the banks of the Nokia river in southern Finland to manufacture paper. was not seriously handicapped in any way. having been associated with the forest products division. and quickly gained popularity the world over. the switch evolved into a multifaceted platform. The decision to move into electronics was well timed. when a Finnish mining engineer. While Swedish company Ericsson rapidly emerged as the global leader in the cellular network equipment business. The system offered competitive prices. In 1967. showed extraordinary initiative.

VISION Ten years ago. Believing in these core values and living them every day is our common bond and shared philosophy. At the same time. We should all be committed to producing high quality solutions. major opportunities still exist in bringing mobile voice to completely new users. Our customers and end-users are the most important people for Nokia. Customer satisfaction is about meeting the existing needs of our customers.6 billion mobile phone subscriptions globally – and more mobile phones than fixed-line phones in use – nokia see that mobility has transformed the way people live their lives. Today. this vision became reality in an incredibly short amount of time. goals and shared management principles .the Nokia Way. as well as speed and flexibility in decision-making. nokia had a vision that seemed revolutionary for the times: Voice Goes Mobile! As history shows. Equal opportunities and openness towards people and new ideas are also key elements we want to nourish. MISSION STATEMENT AND THE VALUE SYSTEM PRACTICED BY THE ORGANISATION. There are new mobile services already taking our industry forward and creating new opportunities. entertainment. STATE ITS VISION. The Nokia Way brings together talented individuals who share these principles. Nokia’s values are key components of the Nokia Way. and therefore share success. media and enterprises. and create solutions to fill them. nokia help fulfill a fundamental human need for social connections and contact. and we need to all understand how our work will benefit them. networked organization. Nokia builds bridges between people – both when they are far apart and faceto-face – and also bridges the gap between people and the information they need.1. Customer Satisfaction: Creating customer satisfaction is the basis of our strategies and actions. If it can go mobile – it will! MISSION: CONNECTING PEOPLE By connecting people. wherever they are in the world. THE NOKIA VALUE SYSTEM Flat. games. . characterize the Nokia Way of working. products and services. but even more important is the ability to anticipate their emerging needs. Nokia sees mobility expanding into new areas such as imaging. These values drive Nokia colleagues. With more than 1. We provide individuals with a platform for personal growth in a challenging environment with a clear vision. Nokia is straightforward when dealing with customers and suppliers and always looks for innovative ways of creating and introducing products and solutions to the market.

fulfilling goals and reviewing results. The environment in which we do business is evolving continuously. we must have the passion and courage to look for new ideas beyond existing products. Achievement: Nokia strategies and goals need to be inspirational and easily understandable. We seek diversity. because it is an important asset that enables us to achieve extraordinary results. Nokia is a global and multi-cultural company. We recognize and celebrate our individual and shared achievements. Our culture allows us to depend on each other. That's why the Nokia Way aims to connect people in teams. Employees are encouraged to be responsible for their own development and to take advantage of the various development opportunities available. and ensures focus and efficiency by setting targets.Respect: Treating one another with trust and respect is a cornerstone of the Nokia values. not for the sake of debating the goals. Everyone at Nokia should genuinely say: "I care!" All have a responsibility to contribute to Nokia's success. Only with truly innovative ideas will we be able to define the future development of our industry and profoundly shape the way in which people understand and use mobility in their everyday lives. and we should care for and respect them. Professionalism is at the heart of everything we do. and essential for building an open and honest spirit at the workplace. services and ways of working. Personal growth through self-leadership provides the foundation for successful management and leadership practices. passion and inspiration through collaboration and coaching. We also value the environment and communities around us. Renewal: Nokia has a willingness to change and develop. we are working with an increasing number of partners. Still. Respect also describes our attitude to the surrounding world. In today's networked operational mode. no one can realize company goals alone. This creates commitment. but for reaching them faster. but the drive to achieve can only start from within each of us. To succeed. and it is understood that everyone will strive to excel at his or her job. Management and Leadership Nokia has a distinctive management and leadership approach based on the Nokia Way at all levels. . and communicate openly and honestly.

DEFINE HOW BUSINESS STANDS ON • VALUES • VIABILITY • PUBLIC VISIBILITY Ans. achievement and continuous learning. a business partner or a customer. other issue-specific surveys and focus group discussions. respect for the individual. The values and principles will continue to provide the foundation for our long term success also in the future . even anonymously. Achieving results requires that every Nokia employee is working according to a strategy and well defined goals. and receive a prompt and openly published response. Nokia's values are customer satisfaction. Continuous learning means that everyone is entitled to look for ways to improve their performance. Nokia wants to create an environment where employees. It also means open and candid communication. As an example. customers and suppliers and other cooperation partners feel the empowerment to develop and improve their relations through a common exchange and development of ideas  NOKIA WAY Nokia is proud of its historical and current commitment to being a company based on principles and values. fairness. To be a leader in the telecommunications industry takes innovation. We listen to the views of our employees and act on them when designing our people policies and practices. whether she or he is an employee. Everyone in the company must know the goals of the company as well as those set for him or her. Another example in addition to this annual survey. Respect for the individual means that Nokia believes in the individual. every employee can comment or ask questions about our people practices and processes. They are the standards of behaviour expected of all Nokia employees. courage and a constant willingness to learn. mutual trust and acceptance of diversity.  NOKIA VALUES The Nokia values are a statement of how Nokia should operate as a cornerstone of the company's corporate culture. A few fundamental and interrelated values and principles unite the company across its locations and form the basis of Nokia's distinctive culture as well as its business success. 2. The values form a common bond and language as well as shared philosophy for working together. the annual globally conducted ´Listening to You´ employee survey is a powerful way of getting feedback from our employees on a range of important issues. is the "Ask HR" feedback channel on our human resources Intranet. There.Employee Participation Nokia encourages open discussion and debate. Customer satisfaction is the basis of all Nokia's operations.

Malaysia. Nokia: Important Markets 1999 Sales in Country USA China UK Germany Italy France Brazil Netherlands Finland Australia Euro Million 3360 2332 1855 1679 968 951 600 544 479 437 1998 Sales in Euro Million 1996 1753 1205 1135 752 776 250 269 465 293  PUBLIC VISIBILITY Nokia’s Ventures Organization takes care of new business areas while its research centre interacts closely with different business units to strengthen the company's technological competitiveness. Italy. Canada.Today. Korea. In 1999. Its R&D centres are spread over 4 continents in 14 countries . Nokia had a commanding 27% share of the global mobile phones business. Table below gives details of Nokia’s important markets. Hungary. with Motorola coming a poor second with 17%. Nokia was the eleventh most valuable brand in the world in 1999. Nokia also had the largest market capitalisation among European companies. Nokia carries out manufacturing activities in 10 countries. Its GSM technology is used by 87 operators in 39 countries.Australia. Nokia has offices in more than 50 countries. China. In early 2000. Germany. Nokia is one of the most visible companies in the world. Finland. Japan. UK and the US. . According to brand consultancy firm Interbrand. Denmark. Sweden. It sells its mobile phones in more than 130 countries.

ensuring legal compliance. when Jormia Ollila was put in charge of the mobile phones business. which had much stronger manufacturing capabilities. Jorma Ollila Mobile communications is now an established force for social and economic development. became a runaway success. Nokia also came up with a big screen and built several PC like capabilities into its phones. In 1991. As market leader and a global company. ANS.whether with customers. Nokia can make a significant contribution to sustainable development. Nokia also began to offer phones conforming to CDMA4 and GSM 1900 standard. GSM 1800 (PCN). as the situation looked gloomy. shipped in 1993. but with inputs from different parts of the world. The way Nokia managed the project gave it tremendous confidence in its global capabilities. Ollila streamlined Nokia’s R&D activities. enhancing company efficiency and building reputation amongst stakeholders. By conducting business in a responsible way. TDMA3 and Japan Digital.Nokia struggled in the late 1980s as the mobile phones business continued to make losses. at the same time building a strong foundation for economic growth. Nokia’s 2100 series. The organisation is committed to development .” Ollila replied after four months that the business was worth retaining. the product development efforts had a truly transnational approach. In 1997. especially strategically important markets like Japan. Nokia became the first manufacturer to launch mobile phones for all major digital systems: GSM. To worsen matters. Coordinated from UK. made an unsuccessful attempt to sell its stake to Ericsson. 3. Nokia takes its responsibilities seriously. Corporate responsibility for Nokia means acknowledging and responding to the impacts of our business on society and the environment. you get six months to make a proposal on whether we sell it or what we do with this business." Nokia Chairman and CEO. The R&D centre in UK designed a phone that was small and light and could compete with small analog phones already available in Japan. a bank which held the largest shareholding in Nokia. ELICIT THE SOCIAL AND ECONOMIC OBJECTIVES OF ITS BUSINESS AND HOW THESE ARE RECONCILED AND BALANCED TO ESTABLISH THE EQUILIBRIUM. divested non core operations and invested heavily in brand building. The company is deeply concerned about ethical business practices and believes that personal and organisational integrity is essential to long term relationships. • SOCIAL OBJECTIVES Nokia with its mission to 'connect people' is the world leader in mobile communications. Nokia also faced intense competition from Motorola. Sound company ethics makes business sense by helping to minimize risk. Ollila recalled the instructions he had received from seniors in the company1: “Look. The turning point for Nokia came in February 1990. Its digital technology was a big hit in the US2. In 1994. employees or stakeholders. the collapse of the Soviet Union in 1991 resulted in the loss of a strategically important market.

Nokia India is involved with an NGO working with children with disabilities in Delhi. The focus of its community initiatives are centered on education. 1. user-friendliness and reliable solutions. Clear instructions are also provided for correct disposal of used batteries with every handset. Decreasing costs. and building reputation amongst stakeholders. 2. Nokia provides innovative. Nokia is a broadly held company with listings on six major exchanges. industry. innovation. corporate giving and disaster relief. By conducting business in a responsible way. Nokia is also set to launch its volunteering programmes involving all its employees. Environment is another issue that is high on the agenda of the company. The packagings of all their phones are made from recycled paper. 3. to drive a profitable and growing business. • ECONOMIC OBJECTIVES Economic Mission at Nokia is. 1. . the company has become the leading supplier of mobile phones and a major supplier of broadband and IP networks. Nokia creates new opportunities for companies and further enriches the daily lives of the people.leading and market relevant technology and products to around 20 diverse markets in the region. Nokia can make a significant contribution to sustainable development. foremostly. foremostly. human resources. A market leader in the cellular industry in Asia Pacific. 4. • PARITY BETWEEN SOCIAL AND ECONOMIC OBJECTIVES Mission at Nokia is.initiatives and is supporting numerous projects in partnership with several community and charitable organizations worldwide. By adding mobility to the internet. but that does not mean business at any cost. 5. Conducting our business in an environmentally responsible way is one very important way to ensuring and enhances long-term profitability. IT. 2. at the same time building a strong foundation for economic growth. Keeping in line with their international programmes of employee volunteering called 'Helping Hands'. Backed by its experience. to drive a profitable and growing business. 3. Nokia's employees provide support to the NGO in terms of help and training in accounts. working with children and other activities.

wood.is imperative in steering the best course of action as we go forward. Nokia established a firm foothold in the early cellular business in the 1980s.  By conducting business in a responsible way. . and cable companies. a series of internal meetings that somehow consistently yields just enough centralized direction to enable its people to press forward in a sort of organized creativity. Once a weak conglomeration of rubber. Nokia lost its CEO to suicide and its biggest customer with the fall of the Soviet Union. WHAT IS ITS MODEL FOR BUILDING BLOCKS TO REPUTAION OD CORPORATE REUTATION? ANS. integrate programs into core business and make a sustainable effort. Nokia can make a significant contribution to sustainable development. ensuring legal compliance. and building reputation amongst stakeholders. It helps to create a sustainable product life cycle. civil society or the private sector . sustainable corporate reputation. at the same time building a strong foundation for economic growth. but use the same look and housing around the globe. an ongoing open dialogue. so that they act proactively. such as cellular phones that adhere to all three major protocol standards. Nokia Corporation may be Europe’s most stunning example of how master brand building unifies companies and multiplies value. Just as the mobile communications industry has contributed to the wealth creation in the industrialised countries over the last ten years. current CEO Jormia Ollila took over and began creating a master brand company inside and out.  A strong spirit of cooperation. Some of the moves that company leaders have taken to make Nokia a very special master brand company: • They have created products that have universal acceptance. The people of Nokia think and work in harmony. Doing business in a responsible way makes business sense to Nokia. But before the company could reach full stride in its new technology mode. decreasing costs.  Nokia’s goal – responsibility – is to ensure that information and communication technologies continue to create sustainable economic growth. it is imperative that we do not lose sight of the opportunity this offers for the rest of the world.Sound environmental principles make business sense by helping minimize risk. A few years later. Through providing low-cost access to communication networks .  It is important for society that companies see the benefit themselves in being responsible.offering service at a substantially lower cost than fixed connectivity . foster social cohesion and sustain free markets. sustainable employment. and a determination to learn from each other – be it the public sector.the overall good this will bring to the global community is immeasurable. ultimately sustainable economic growth 4. thanks in part to The Nokia Way.

” A senior executive explains: “The objective is to always have decisions made by the people who have the best knowledge. Daimler-Benz) and adopted what they call a similar “holistic” approach to manufacturing and marketing (we call it a master brand approach). "Despite our growing size. an informal and flexible work culture can easily degenerate into chaos. yet creative. These are Pekka Ala Pietila. head of Mobile phones. stockholder value has multiplied +2. • Nokia is now the world’s leading supplier of cellular phones and in a strong position to compete effectively in a huge spectrum of technology sectors. Nokia’s organisation structure seems to be so loose and flexible that a human resource manager at Nokia’s US headquarters in Texas has commented: “People who join Nokia spend a few months trying to figure it out. We believe that the best way to achieve this is less through traditional management and more through leadership. Olli Pekka Kallasuvo.” They studied the great global brands of the world (Nike. We aim to maintain this culture no matter how large we may become. The team has been remarkably stable. and has been called “perhaps the least hierarchical company in the world.300% in the last five years.” Indeed. head of Nokia Networks. innovative and creative start-up. there is a palpable culture of tolerating mistakes and encouraging people to learn and develop. ITS CORPORATE CULTURE. Matti Alahuta. CORPORATE CULTURE:A team of five senior executives is generally credited with Nokia’s success. . but you’re allowed to be creative. Sari Baldant.• They adopted a corporate culture that is both disciplined. 5. president. There are certain shared systems we keep as standard.” Creative organisations promote entrepreneurship among frontline employees and empower them. Yet. distributing. Nokia’s informal work culture lays emphasis on the empowerment of frontline employees. having worked with the company for more than 15 years. a few senior executives have been given the responsibility for global coordination and ensuring that core standards are uniformly imposed across subsidiaries. marketing. “At Nokia. USA remarks1: “That’s unique to Nokia – the freedom a group is allowed to take. ETHICAL BUSINESS PRACTICES AND CORPORATE SOCIAL RESPONSIBILTY." According to Industry Week. finance director and Ollila himself. As ultimate proof of the wisdom of its master brand strategy. A production manager at Nokia’s factory in FortWorth.” According to Nokia's 1999 Annual Report. You really have to figure out a network of people to get things done. without discipline. our culture remains that of an independent. which includes using the Nokia brand meaning as a lens when designing. At Nokia. and selling a product.

which is communicated to the lower layers of management through formal presentations. all new design ideas are scrutinized by the chief designer. value added’ businesses. Nokia is committed to the highest standards of ethical conduct and full compliance with all applicable national and international laws.’ are used to exchange notes and set priorities. . Ollila himself believes in strong financial discipline and is prepared to exit from businesses which are growing at a rate of less than 25% a year." Great leaders set Big Hairy Audacious Goals for their employees. who is responsible for the continuity – the ‘face and soul’ of the product. Nokia's goal is to be an industry leader in these areas as well as a good corporate citizen wherever it does business. Nokia’s goal was to play ‘a leading. And the phone people can learn customer relations from infrastructure. As Nokia enters the new millennium. These meetings also come up with appropriate slogans that help in conveying the company’s corporate purpose across the organisation. Ollila shuffled his top team. global. referred to as the ‘Nokia way.' A more recent slogan has been to “bring the Internet to everybody’s pocket. We are confident that this vision and the courage to create new opportunities will help us achieve our targets as we move into a new era in communications. To achieve these goals. Switching also helps people learn from one another. After a brainstorming exercise. Frank Nuovo. to remove stubbornness that gets built into the minds of the people. Four years later. Nokia also made major commitments ahead of time. In an interview with Business Week he said: "I want to remove people from their comfort areas. it faces new challenges in an industry where technological change can be devastating.” In mid 1998.” ETHICAL BUSINESS PRACTICES:Nokia has been and continues to be deeply committed to being an ethically sound business. Nokia’s annual meetings. In the early 1990s. brand recognized role in creating the mobile information society. Besides these formal mechanisms. However. focused. top managers define the company’s vision. Infrastructure can learn from handsets about the speed and product life cycle of consumer electronics. As a report on its website mentions: “Nokia’s history has shown that the right decisions made at the right time breed success. In 1992. they are prepared to take big risks. It's cross fertilization. it can proudly look back at its past achievements. Nokia declared that it would be in ‘telecom oriented. employee or other stakeholder relation can exist without organization and personal integrity. no long term customer. It tied up with smaller players such as Orange in Britain and E-plus in Germany to grab market share from traditional telecom suppliers. Ollila bet heavily on branding and consumer friendly designs to popularise the use of mobile phones. in the wake of the European Community’s attempts to deregulate the telecom industry. We want to build a certain amount of chaos and a sense of urgency.For example.

Nokia does not provide financial support to political parties or other political groups. Nokia respects the privacy and integrity of its stakeholders and endeavors to adhere to strict standards when processing personal data and product information. the environment. All personal data collected and held by Nokia will be processed fairly. political or other opinion. lawfully and carefully and in a way that protects the privacy of individuals. labor laws and practices. Nokia will not use child or forced labor. Nokia and Nokia people do not pay or offer to pay bribes or illicit payments to obtain or retain business. national or social origin. sex. Any agreement or understanding regarding favors or benefits in exchange for the gifts must be avoided. other than gifts of nominal value or reasonable hospitality given in the ordinary course of business. corporate governance. to or from Nokia stakeholders.Ethics and Law Nokia is strongly committed to the highest standards of ethical conduct. Nokia's goal is not mere minimum legal compliance. and full compliance with all applicable national and international laws. language. those relating to antitrust and promoting fair competition. preventing bribery. in order to obtain or retain business. Nokia recognizes that certain human rights should be considered as fundamental and universal. human rights laws and internationally recognized standards. publicly traded securities. company assets and other forms of intellectual property. property or birth. Among those rights are freedoms from discrimination based on race. colour. Nokia and its employees will not pay or offer to pay bribes or illicit payments to government officials or candidates. for example. Conflicts of Interest. This includes. or other parties. religion. Gifts of other than nominal value may not be accepted without full disclosure to and prior relevant clearance from the employee’s supervisor. Human Rights Nokia respects and promotes human rights. practicing good corporate citizenship wherever it does business. Gifts & Bribes Nokia employees are strictly expected to avoid conflicts of interest. . Nokia will not tolerate working conditions or treatments that are in conflict with international laws and practices. illicit payments and corruption. safety in the intended use of the products and services Nokia delivers to customers. but as an industry leader to be among the world’s best in corporate responsibility. and protecting copyright. This includes. but is not limited to acceptance and giving of personal gifts or hospitality.

Environment Nokia’s environmental activities are based on life-cycle thinking. Although difficult questions of interpretation may arise in specific instances. The goal is to reduce environmental effects during our product life cycles. including decisions relating to trade. Nokia will strive to pay fair compensation. This is done by managing our own operations and our supplier network. and the strength that comes from diversity. open and ethically sound. individual responsibility. policies and procedures. no employee or potential employee will.' Nokia employees must respect and encourage Nokia Values at work. opinion. subcontracting. nationality. connections with a national minority. receive less favorable treatment due to their race. sexual orientation. or the method of procurement or distribution is illegal. conscience and religion are respected in everyone's actions at Nokia. gender. Job requirements fulfilled. and provide a safe and healthy workplace for employees. Implementation The compliance commitment in this Code extends to all matters. disability. marital status. Nokia's approach to implementing this Code of Conduct will be active. Suppliers Nokia will do its utmost to contract only with subcontractors or suppliers who themselves adhere to international human rights and environmental laws and practices. promoting teamwork. colour. membership or non-membership of a trade union. Nokia will encourage its employees to lead balanced personal and professional lives. ethnic origin. supplying. Nokia will continue to invest in the personal and professional learning and growth of Nokia's employees. Nokia is committed to equality of opportunity in all its employment practices. Nokia will depict animals in a dignified manner. therefore. Freedom of opinion and expression are very much in line with Nokia's open and straightforward way of working and its corporate value.Workplace Practices Freedom of peaceful assembly and association as well as freedom of thought. business development. age. and in all other business and employment relationships. investment. Nokia does not use any endangered species for any business purpose and furthermore requests that its suppliers avoid raw material procurement from an origin where there are clear human or animal rights abuse. Nokia . 'Respect for the individual. incorporating Design for Environment (DfE) into our product development. particularly regarding the need to sensitively balance local customs and requirements with global standards and guidelines. processes and service design and supporting sound End-of-life practices. gender reassignment. In marketing and other company activities. Nokia commits to monitoring the ethical performance of its suppliers and to taking immediate and thorough steps in cases where the ethical performance of its suppliers comes into question. creed. religion.

Sound company ethics makes business sense by helping to minimize risk. Everyone at Nokia is encouraged to follow strict ethical rules in their own work environment. economically. As market leader and a global company. can sometimes be hard to detect. Corporate responsibility for Nokia means acknowledging and responding to the impacts of our business on society and the environment. By conducting business in a responsible way. CORPORATE SOCIAL RESPONSIBILITY Corporate responsibility reflects the way in which companies impact on the world around them. Nokia respects and encourages teamwork and the strength that comes from diversity. and human rights issues and resolve matters consistent with this Code of Conduct. enhancing company efficiency and building reputation amongst stakeholders. ensuring legal compliance. Nokia also considers the balance of the personal and professional lives of its employees to be important. enhancing company efficiency and building reputation amongst stakeholders. Nokia invests in the personal and professional learning of all its employees. To remain successful. legal. Sound company ethics makes business sense by helping to minimize risk. Working in a multicultural environment is considered to be an advantage and privilege. employment. socially.recognizes that the above commitment means that Nokia will do its utmost to identify ethical. Equal opportunity is a key part of the Nokia way. for example. Discrimination. at the same time building a strong foundation for economic growth. Its target is to learn something every day and to secure the continuous learning of the entire team. . As market leader and a global company. and environmentally. Nokia takes its responsibilities seriously. Nokia can make a significant contribution to sustainable development. Whenever a problem in the workplace is detected. environmental. ensuring legal compliance. it is tackled immediately." Nokia Chairman and CEO. Corporate responsibility for Nokia means :   acknowledging and responding to the impacts of our business on society and the environment. Jorma Ollila Mobile communications is now an established force for social and economic development. Nokia takes its responsibilities seriously.

educational. • ENVIRONMENTAL POLICY The commitment to continuous improvement in environmental issues is stated in Nokia’s Environmental Policy. This project has progressed to its second phase to developing the take back scheme further. Nokia participates actively in association work both at national and international level. products and services that have as little environmental impact as possible. In every stage of the product life cycle there are emissions causing impact on air. . Nokia respects and promotes human rights and acts as a responsible member of the society. The manufacturing phase is just one of the many stages the product goes through during its life cycle. governments and other organizations concerned with the environment and sustainable development. to demonstrate progress in environmental and resource management and to share best practices. Nokia sees ethical conduct and corporate citizenship issues as an integral part of environmental thinking. a member of the European Association of Consumer Electronic Manufactures (EACEM).1998. Nokia is e.Nokia believes that: Economic. human rights and community activities through donations and other resources. The product life cycle starts when raw materials are extracted and ends with waste treatment. In addition to providing technology. In Finland. • LIFE CYCLE THINKING Life cycle thinking is a holistic approach to map a product’s environmental aspects. a number of individual Nokia employees participate actively in various associations and forums within in the industry. Nokia participated in a pilot project for take back of electronic products arranged by the Federation of Finnish Electrical and Electronics Industry during 1997 . It has also participated in the pilot project of ECTEL for the take back of mobile phones.   • PARTICIPATION IN INDUSTRY COOPERATION Aiming to develop closer cooperation between businesses. Life cycle thinking covering all the environmentally significant impacts of a product from the cradle to the grave is the basis for all Nokia’s environmental activities and provides the framework for action. Nokia cooperates in creating a framework that allows businesses to contribute effectively to sustainable development. Membership in associations is a channel to contribute to the development of legislative requirements and voluntary agreements. water or soil. In addition.g. social and environmental responsibilities are not distinctly separate issues. This includes supporting charitable. The line organizations of Nokia’s business groups and divisions are in charge of implementing the policy. published in 1994. Nokia has a representative in an environmental working group under the Co-federation of Finnish Industry and Employers.

open and ethically sound approach to environmental protection. plans are updated and special goals are set where needed. ISO 14000 series. • Line organizations plan and implement the action programs by using environmental specialists and the best available technology. Corporate social responsibility involves:  Acknowledging the company’s range of opportunities to be realized and risks to be minimized. • Minimizing the environmental impacts requires continuous efforts and follow-up of the results. quality and costs. Nokia uses the international environmental management standard. legal compliance. Goal areas within Nokia’s environmental management are :• Design for Environment is integrated into Nokia’s product development. enhanced reputation and improvement in company efficiency issues like productivity. it is thereby a part of the total quality improvement process. To implement these.Basic principles in Nokia’s environmental policy include: • A successful business requires solid product life cycle-based environmental performance. • The Nokia Way means an active. as guidelines for environmental management. Acting responsibly brings us improvements in risk management. • Environmental aspects are integrated into supply chain management. • The objective of Nokia’s environmental policy is sustainable development inaccordance with the ICC (International Chamber of Commerce) business charter. Nokia applies the following principles: • The environmental policy is a part of the general management process. • Environmental management systems of all main Nokia production sites have to. The results of environmental work are reviewed on an annual basis. . • The action programs are based on a thorough understanding of the environmental impacts of a product throughout its life cycle. Meet the requirements of ISO 14001 by the end of year 2000. • End-of-life practices are supported.

Nokia believes that it makes business sense to look after the markets we operate in. demonstrate company values. protect the Nokia brand and build a reputation for citizenship. work at increasing employee satisfaction. investors. innovative teams. good reputation is helped by. But there are other areas where corporate responsibility directly supports company strategy. catering for accessibility in use of mobile phones. digital bridging work and including developing countries in our market scope. Nokia will make a positive difference to society. Increased mobility and new marketing opportunities are served by nurturing diverse. while standing a better chance of achieving sustainable growth. retaining and motivating employees. to anticipate risks. so a good reputation is vital in order to maintain our standing among employees. where "trusted brand" clearly demands a good reputation. and efficient supply chain management. In the long run. enhance corporate governance principles. as the World Council for Sustainable Business aptly puts it. innovative and high-quality products cannot be created without attracting. The Nokia brand is one of the most valuable in the world. among other things. The "license to do business" begins with legal compliance and good practice. . corporate transparency and responsiveness to stakeholder expectation. By acting responsibly in those issues over which we have most influence. to which environmental work and employee programs contribute. network operators and consumers. community involvement. The most obvious link to Nokia’s strategy can be found in the strategic intent. Acting in a responsible way also facilitates extensive cooperation across the industry and demonstrates the company values. "companies cannot succeed in societies that fail". Our future success demands responsible business.

Sign up to vote on this title
UsefulNot useful