CSR update 2004 from Telenor
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UNGC update 2004 from Telenor Introduction The term Corporate Social Responsibility is widely used in industry and commerce as well as in society, but the subject is certainly ambiguous. Some people will argue that socially responsible companies are those that give something back to society, usually in the form of financial support to a worthy cause. Others will argue that social responsibility is about ethical conduct and about contributing to positive social development. Internationally, social responsibility is often seen in the context of new development and the struggle against poverty, with a special focus on human rights, corruption and protecting the environment. For Telenor this is not a question of either/or. It is our firm ambition to be a responsible company that makes a positive contribution to society. Our many roles involve different forms of responsibility, as an employer, service provider, and market player and as a member of society. It is important for Telenor to be actively engaged in the fight against corruption. It is equally important to look after the welfare of our employees. We will continue to support voluntary organisations in their efforts to achieve a better society, and we will further our own efforts to make the Internet a safer place for both children and adults. At Telenor, social responsibility is not a separate sphere, but part of the fundamental approach that we bring to all our activities. We present this report to give interested parties the opportunity to gain insight into activities we feel are of special significance to our relations to society. In this way we are providing a detailed account of Telenor's activities, to be read as a supplement to our financial reporting. The report for 2004 provides an overview of the most important events during the year. Telenor's social website provides more detailed insight into these issues. In 2004, ethics was high on the agenda at Telenor. The implementation of the Group's revised Codes of Conduct was completed at all consolidated companies in Norway, as well as in the international portfolio, and a new training programme in ethics was introduced. Our environmental work comprised the project Energy focus 2004, as well as the compilation of new information on radiation from antennas and mobile handsets. These were among our key activities during the year. New products were introduced, with a special focus on web safety, including a new child pornography filter, launched in cooperation with NEW KRIPOS. Here is a brief presentation of the most important events in 2004. Telenors Codes of Conduct Telenor's Codes of Conduct cover a wide range of aspects that are important to ensure good business ethics in all parts of the Group's activities. Relevant areas are: confidentiality, discrimination, corruption and conflicts of interest. Telenor's Codes of Conduct have been adopted by Telenor's Board of Directors and apply to Board members, managers, employees, hired staff and anyone acting on behalf of Telenor. The Codes are applicable at all companies of which Telenor has operational control, both in Norway and internationally. The process of implementing the Codes of Conduct at companies outside Norway was completed in 2004. Failure to comply with the Codes of Conduct will result in sanctions adapted to suit the nature and extent of the violation in question. Telenor's Compliance Officer and the Internal Audit function will provide follow-up to ensure full compliance with the Codes of Conduct. The Codes of Conduct are available on: www.telenor.com/csr/ Ethical training programme Telenor has developed a mandatory training programme in ethics for all managers and employees. The training programme was implemented at Telenor's Nordic companies during the final quarter of 2004, and will be implemented at the Group's other international companies during the first quarter of 2005. The training programme is designed as an interactive e-learning programme whereby individual employees are confronted with a number of ethical dilemmas. The dilemmas are presented as video inquiries received from fictitious employees around the world being faced with an ethical challenge in their work situation which they need help resolving. The five-episode programme requires participants to provide advice to the best of their ability, assisted by the Codes of Conduct. The programme is an attempt to exemplify business ethics in practice, thereby helping individuals understand the Codes of Conduct. The dilemmas are of varying degrees of difficulty and focus on difficult grey areas that employees are likely to encounter in their daily work. A recurring element in the feedback provided throughout the programme is that employees should always seek help and advice in difficult situations, and always report any irregularities. Environmental efforts In Norway, the energy saving programme Energy focus 2004 was completed, resulting in annual savings of NOK 6 million. A new energy related project has been initiated in 2005 - Energy management at Telenor - comprising Telenor's total energy consumption in Norway. The goal of this project is to increase Telenor's annual energy savings to NOK 10 million per year, and to increase the awareness and knowledge of efficient energy use. These projects clearly demonstrate that environmental efforts can make a difference. During the year, we also made preparations for a larger project of replacing 53,000 lighting fixtures containing the environment poison PCB. Over the next year, these lighting fixtures will be replaced by 41,000 new energy-saving fixtures that will contribute to a significant reduction in Telenor's total energy consumption. The focus on radiation from mobile handsets and mobile antennas is growing, and Telenor wants to ensure that customers and employees have access to accurate and adequate information on these issues. We have therefore drawn up an impartial account of the research conducted in this field, and we have published a list of relevant questions and answers on the subject of radiation. This list has been made available on Telenor's web site. During the year, an initiative was introduced to collect discarded mobile handsets. Together with mobile distributor Dangaard and Plan Norway, Telenor Mobil carried out a project combining two good ideas: The environment escapes dangerous waste in the form of old mobile handsets and Plan Norway receives important support for its programme work for children in poor areas all over the world. For each old mobile handset collected, a sum of NOK 50 is donated to Plan Norway. In total, enough handsets were collected to provide vaccines to 71,000 children in poor countries. New initiatives for collecting discarded handsets have been planned for 2005. Telenor's environmental management system has during the year been extended to also include our international activities, and the work will be continued in 2005. This means that Telenor, in addition to compiling environmental data from Norway, will also compile similar data from the international companies operationally controlled by Telenor. Environmental accounting The key figures from Telenor's environmental accounts reveal that the total energy consumed through the management of buildings in Norway was slightly reduced, while increased international activities have resulted in an increase in the overall energy consumption. In 2004, the total energy consumption for Telenor's activities was 790 GWh. Breaking down this figure shows that 370 GWH (47%) was consumed in heating, cooling and lighting of buildings, 288 GWh (36,5%) was used in network operation, and 130 GWh (16,5%) was energy consumed in transport and work-related travel. More information is found here: http://www.telenor.com/csr/environment/key_figures/ Web Safety Telenor protects customers against modem kidnapping In 2004, Telenor introduced a standard filter for all residential customers using dial-up connections. This has contributed to a significant reduction in so-called modem kidnapping. Modem kidnapping emerged as a problem in the spring of 2003. It involves "kidnapping" of customers using dial-up connections, transferring them to network servers at remote locations, resulting in high telephone charges. Modem kidnapping is only a risk for Internet users using a modem and ISDN or analogue lines. Customers who are connected to the Internet via ADSL or cable TV will always be online and run no risk of being exposed to such kidnapping. Network servers to which customers may be transferred are often found at exotic locations, e.g. the Seychelles, Diego Garcia, Cook Islands, Bermuda or Haiti. Telenor has registered more than 50 destinations where modem kidnapping has occurred. Telenor recognised that this was becoming a problem for customers, and has developed and marketed a number of products and services to help customers avoid the problem. These have all been free-of-charge, although customers were previously required to actively take up the solutions themselves. Telenor has recognised these initiatives have as insufficient, and in 2004 Telenor introduced a surfing filter for all telephony and Internet subscriptions. The filter will ensure that all calls, both via telephone and the Internet, to destinations within the areas defined by Telenor as conspicuous, will be stopped. Telenor's fixed line and dial-up Internet customers must actively choose to bypass the filter if they want to connect to the relevant destinations. This is done by calling 800 33 040 (a free-of-charge number), to request that the filter is turned off or on. Initially, this solution is only provided in the residential market. Business customers must still actively install the surfing filter. This is done via the same telephone number as for residential customers. Telenor and NEW KRIPOS lauch Internet child porn filter In partnership with NEW KRIPOS, the Norwegian National Criminal Investigation Service, Telenor introduced a child pornography filter in 2004. The filter is designed to prevent users from accessing Internet sites offering material depicting sexual assaults on children. Telenor is responsible for the technical solution, and NEW KRIPOS will provide updated lists of websites that distribute such material. The filter is applicable to all of Telenor's Internet customers, both via dial-up-lines and broadband. The filter is placed centrally at Telenor, and no installation at customers' computers will be required. NEW KRIPOS will provide lists of web sites containing child pornography, and Telenor will handle the technical management of the filter. Should any of Telenor's customers attempt to open a web site containing child pornography, a blocking site will automatically pop up, with information about the filter, as well as a link to NEW KRIPOS. Several hundred sites containing illegal child pornography are currently registered in NEW KRIPOS' files. Telenor is not introducing any form of censorship; it will be up to NEW KRIPOS to decide which web sites customers should be denied access to. We do, however, want to make a contribution whenever we can, and this combined effort, whereby Telenor provides the technology and NEW KRIPOS the expertise, may lead to fewer assaults on children. The child pornography filter comes free-of-charge, and Telenor will be happy to share its expertise and technology with other Internet suppliers. If other suppliers in Norway and abroad join this initiative, the filter could deal a serious blow to commercial distributors of child pornography. For a number of years Telenor has cooperated with Save the Children to promote safer Internet use for children. As part of this cooperation, Telenor has developed an effective programme, KidSurf, to help parents control children's Internet use. Our partnership with NEW KRIPOS, in the struggle against child pornography, is a further step in our efforts to make the Internet a safer place and prevent assaults against children.