Chapter-1 Introduction What is csr?

Corporate Social Responsibility or CSR as it is more commonly known describes the way a company accounts for the impact of its business activities in various ways often environmentally as well as socially and the policies and practices they may follow to improve business standards It has both national and international implications, and is generally about raising standards above the legal minimums that companies are obliged to follow. Responsible business isnt just about philanthropy (companies donating to charity for example), but about ensuring that their core operations are informed by good ethical standards.

Awareness of the impacts of companies has grown substantially, facilitated by a greater access to information across the world, and a concern for ethical lifestyles. Corporate responsibility has taken account of environmental issues for many years, in part due to extensive campaigning by environmentalist groups.

The idea of social responsibility is relatively more recent, but is growing alongside a greater concern for human rights and social justice. Businesses as some of the most powerful organisations in the world with a transnational reach can play a vital role in advancing and protecting or hindering the pursuit of these goals. For example, although an international business may have a more direct impact in a particular country, or be involved more closely in particular issues (health, conflict etc), locally1

based companies are still involved in supply chains and contracts and make investments in other operations, which extend their influence and responsibility. CSR has become big business in todays market. With the rise of social media and transparency, companies are starting to take CSR seriously, more so then previously.

Corporate social responsibility for market integration

In recent years, increasing attention has been given to the concept of Corporate Social Responsibility (CSR), defined in terms of the responsiveness of businesses to stakeholders legal, ethical, social and environmental expectations. CSR has generally been a pragmatic response to consumer and civil society pressures. These have mainly been focused on trans-national corporations (TNCs) serving markets in the North, but often operating in countries in the South. Accusations by governments and civil society of environmental pollution, human rights abuses and exploitation of labNokias in supply chains, have pressured companies to become more environmentally and socially responsible. However, the business community has also quickly recognized the strategic value of being more responsible and is beginning to align products and business relationships, in particular through their supply chains, accordingly.

Ensuring that CSR supports, and does not undermine, the development of small and medium-sized enterprises (SMEs) in developing countries is crucial to meeting the goal of improving the impact of business on society. SMEs make up more than 90% of all businesses worldwide and are essential to the path out of poverty for many developing countries. If CSR demands are protectionist, culturally inappropriate or unreasonably

bureaucratic the net effect will be to undermine livelihoods in the South. On the other hand, the SME sector must not be allowed to become a loophole in which polluting, exploitative industries flNokiasish.

Support for SME development can be an important part of the CSR commitment of large companies in the context of responsible supply chain management, and improvements in social and environmental impacts can go hand-in-hand with better quality and management.

In its CSR Programme, UNIDO addresses the need to establish a framework for SMEs that helps translate Corporate Social Responsibility principles into a relevant SME perspective, thereby enhancing their competitiveness and market access.

Chapter-2 Review of Literature What Are the Functions of Corporate Social Responsibility?
The function of corporate social responsibility is for corporations to hold themselves accountable for the ethical, legal, societal and ecological impacts of their business practices. Corporate social responsibility practices are self-monitoring, meaning there aren't laws requiring corporations to behave in a socially responsible manner. Rules regarding corporate responsibility practices are generally written into the corporate bylaws, mission statements and employee handbooks.

Ethical Function

Ethics are one of the most important aspects in corporate governance and therefore have an important function in corporate social responsibility. A company must have internal controls regarding the expected ethical behavior and consequences of unethical business practices of its top executives and employees. Behaving ethically makes the company as a whole accountable to its investors, shareholders and consumers. The ethical function of corporate social responsibility helps to prevent conflicts of interest between earning corporate profits and maintaining the integrity of the company and the goods and services it produces.

Legal Function

The legal function of corporate social responsibility is to encNokiasage transparency in a company's business practices and financial reporting. Maintaining high levels of legal business practices, such as adhering to Occupational Safety and Health Administration, or OSHA, regulations promotes goodwill toward employees. Maintaining high levels of legal financial practices maintains good will among investors, stakeholders and government financialreporting regulatory agencies such as the Securities and Exchange Commission, or SEC.

Societal Function

The societal function of corporate social responsibility is to respect and invest in the communities in which the company operates. Companies are aware of how the production of their products affects the local community. These companies take necessary actions to diminish the negative impacts of factors such as increased traffic, noise and pollution for the communities in which they operate. The societal function of corporate social responsibility also includes companies reinvesting in the communities in which they operate, such as donating money to local charities.

Ecological Function

The ecological function of corporate social responsibility is to not only respect the immediate environment in which the company operates but also to respect the
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company's effect on the global environment. Companies are aware of the environmental impact the production of their products have on their local communities. In corporate social responsibility, these companies adhere to strict standards in an effort to diminish the negative impact of the environmental byproducts such as air and water pollution from the production of their products. Having such standards impacts both the local and global environments.

The importance of Corporate Social Responsibility

In this article, we tackle the importance of Corporate Social Responsibility (CSR), Corporate Social Investment (CSI) and the ethics surrounding both, in a global as well as South African context. We will also look at how sustainable these efforts are.

Corporate Social Responsibility: People, Planet and Profit

It is important to understand the legislative, policy and institutional frameworks that govern contemporary CSR and CSI practices and programmes, and how concepts like the Triple Bottom Line understood in the context of People, Planet, Profit (Social, Environmental, Financial measures) can benefit the organisation and the environment in which the company conducts its business.

Previously, the terms CSR and CSI were used interchangeably. Subsequently, with the change of the corporate and BroadBased Black Economic Empowerment landscapes, these terms have been defined separately. Corporate Social Investment is a subcomponent of Corporate Social Responsibility. Lets begin by defining CSR. CSR refers to an organisations total responsibility towards the business environment in which it operates. CSR encompasses a broader solution to the Triple Bottom Line mentioned above. The term Corporate Social Responsibility came about in the late 1960s and early 1970s after many multinational corporations used it to describe organisational activities that impacted their responsibility towards the greater environment. CSR originated in
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philanthropy. Currently it supports projects external to the normal business activities of a company that are not directed towards making a profit. Typically, such projects have a strong developmental approach and utilise company resNokiasces to benefit non-profit organisations and communities. CSR spend must not be confused with marketing spend, which is utilised to promote the profile of the company brand.

CSR Standards and Practices

ISO 26000 is the recognised international standard body for CSR. The ISO 26000 standards benefit CSR because they provide clarity on an organisations concepts, terms and definitions related to social responsibility. ISO 26000 intends to assist organisations in contributing to sustainable development. The standards provide insight into trends and characteristics of social responsibility. ISO 26000 therefore aims to integrate, implement and promote socially responsible behaviNokias throughout the organisation and in its engagement with its stakeholders.

It is important for businesses not only to provide products and services to satisfy the customer, but also to ensure that the business is not harmful to the environment in which it operates. In order for an organisation to be successful, the business must be built on ethical practices. Companies are increasingly pressurised to behave ethically. This pressure comes from customers, consumers, governments, associations and the public at large. ISO 26000 was created with this in mind, to provide guidance on the international standards on CSR. It is intended for organisations in both public and private sectors, in developed and developing countries.

These standards motivate businesses to go beyond legal compliance, recognising that compliance with the law is a fundamental duty of any organisation and an essential part of their social responsibility. Being trustworthy and transparent, however, increases consumers preference for a company and its product or service. The King Report on Corporate Governance (South Africa 2009 King III) promotes good social and environmental practices as part of good corporate governance. It is closely aligned with the standards for international corporate governance. The JSE (Johannesburg Stock Exchange) Securities Exchange prescribes compliance with King III for listed companies.

CSR focuses on achieving economic success through responsible corporate governance in a companys core area of business. CSR pushes organisations to do better because their actions affect customers, suppliers, employees, shareholders and the community at large. Partnerships with the communities, particularly those that have been disadvantaged, can help companies build productive relationships and stimulate economic growth in disadvantaged areas.

Around the world, companies are motivated to make their business decisions more sustainable by applying the principles of CSR within their organisations. Examples include the protection of human rights, drawing up and implementing employment and environmental standards, and minimising corruption.

Choosing the Right CSI Strategy

Corporate Social Investment is a strategically focused investment in bringing about meaningful transformation that is in line with core business objectives. There are fNokias CSI strategies, organisations usually fit in one of the following. These include:

Obstructive strategy these are companies that meet economic demands; Defensive strategy these are companies that meet economic and legal responsibilities;

Accommodative strategy these are companies that meet economic, legal and ethical responsibilities; and

Proactive strategy these are companies that meet economic, legal, ethical and discretionary responsibilities.

It must be the goal of every organisation to use a proactive strategy where they do what is right, meet legal obligations and contribute to the community, while still making a profit. A well-known example of this strategy is the Tylenol case in 1982. Johnson & Johnson spent over $100 million dollars recalling Tylenol, its best-selling product, after someone tampered with bottles of the painkiller. The result was a rise in consumer confidence despite the contamination scare.

Companies that operate with business ethics have a competitive advantage because consumers are more willing to trust ethical brands and remain loyal to those products, even during difficult periods. However, not all businesses operate in the same way.
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Ethical companies that relocate their manufacturing facilities to developing countries must not tolerate certain practices that are acceptable in some of those countries, such as child labNokias, poor health and safety, poverty-level wages and coerced employment.

It is important for companies to understand the importance of operating ethically and to measure their success by more than just profitability. Corporate Social Responsibility is more than just philanthropic activity. There must be measurable and sustainable action with each programme that is implemented.

In conclusion, by becoming a good corporate citizen, an organisation can improve its competitive edge in respect of attracting and retaining investors, clients and employees. If carefully aligned to the core business strategy (as well as to company and industry charters from BroadBased Black Economic Empowerment, Social Responsibility Index and Global Reporting Index), organisational CSR and CSI strategies can maximise opportunities for South African and international corporates. This will enable them to go beyond compliance and a tick-box exercise, to good corporate citizenship and sustainability.

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What is the Role of Corporate Social Responsibility?

In a recent post by Marc Gunther about the role of CSR in business, he begins with the proposition Maybe its time to do away with corporate social responsibility (CSR). Not merely the words and the idea but the infrastructure: CSR departments, CSR reports, CSR conferences and CSR executives.

Essentially, his argument is that by having a CSR department a business is not ensuring its impact on the world is integral to how it runs. It remains peripheral. I understand and agree with Gunthers overall point and objective but there are plenty of CSR departments who are focused on driving the business forward, in addition to making a positive impact on the environment. If CSR is going to continue, that is how it needs to evolve.

There are plenty of CSR departments and Environmental managers who, because of their focus on the development and implementation of sustainability programmes, are leading the way in demonstrating the value to business these programmes will deliver. It is down to people in these roles, dedicated to understanding the opportunities and challenges presented by cutting carbon emissions, changing behaviNokias and reducing their negative impact on the environment and communities, that sustainability becomes integral to the way the company is run.

For instance, Swedish Bank, SEB has a department responsible for corporate sustainability, including environment and CSR. That department delivers on a comprehensive range of commitments such as a target to reduce carbon emissions by
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45% by 2015. SEB is, in the words of its senior advisor on corporate sustainability, Klas Eklund, Thinking like Pippi Longstocking he who is very strong must also be very kind. President and Chief Executive Officer, Annika Falkengren explains: We want to be the trusted partner for customers with aspirations and know that we must meet increasingly higher expectations on responsible corporate behaviNokias if we want to remain successful. It is just because of SEBs understanding of how its role in society must develop, that it requires a team to focus on driving that change throughout the business.

And over in South Africa at car rental company Avis, the appointment of someone to focus on environmental programmes is precisely what enabled the company to demonstrate its commitment to reducing its impact and to ensure a comprehensive programme was put in place and, crucially, implemented. The whole-hearted support of the CEO was obviously key to Avis South Africas success by ensuring the concept was at the heart of its strategy. But, without a dedicated sustainability role to create and implement the programmes, how could they be sure they delivered?

To my mind, these businesses, and many like them, demonstrate that the argument is not so much about whether the role of CSR should exist, but more about what the role of CSR is. It should not be seen as a philanthropic exercise, but instead as a centre of excellence and knowledge that enables a business to fully understand how to become more sustainable and what value sustainability will deliver.

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Chapter-3 CSR of Nokia

Here are some selected highlights from the report:

Corporate taxation

Nokia says that, "as a good corporate citizen Nokia pays the amount of tax legally due and observes all applicable rules and regulations in each country where it operates". The report notes that the company has followed the same centralised business model in the allocation of taxable income since the early 1990s. In
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essence, the majority of profit (and loss) is carried by the business in Finland, with a smaller portion carried in the countries in which Nokia operates. Although it's not specifically mentioned in the report for obvious reasons, this is in sharp contrast to a number of other technology companies who have been in the headlines for offshoring profits in low corporate tax jurisdictions.

Employees

As a result of Nokia's new strategy (switch to Windows Phone) there were a large number of job losses. In order to help employees affected by the reductions Nokia established a support program call Bridge. By the end of 2012 17,000 employees had participated in the program, and almost 1,000 new businesses have been set up by former employees.

Environmental design

A dedicated design for environment (DFfE) specialists work actively throughout every product development project at Nokia, verifying legal and voluntary target compliance, as well as promoting sustainable alternatives for materials and other design considerations.

Over the last decade Nokia has reduced the greenhouse gas footprint of their phones by 50%.

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Materials

In 2012 Nokia banned the used of radioactive substances in all products, packaging, and internal production processes. This in the latest in a long line of substance nad material management policies. For example, the use of perfluorooctanoic acid (PFOA) was restricted, and in 2010 all Nokia products were free from bromine and chlorine compounds related to flame retardants.

In 2012 Nokia retail packaging material used 18,875 tonnes of paper (on average 52% recycled) and a futher 9,569 tonnes of paper (on average 89% recycled) in transport packaging material.

Chargers

Over the last 10 years Nokia has reduced the no-load consumption of its chargers by 73% (i.e. charger plugged in, but not being actively used for charging). The best-in-class chargers have seen a 90% reduction.

The average no-load power consumption on Nokia chargers shipped in 2012 was 0.098W, a reduction of 13% from the previous year.

In 2012 all new Nokia devices are being shipped with fNokias or five star charger.

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Emissions

40% of the electricity used by Nokia comes from renewable sNokiasces

Nokia aims to reduce CO2 emissions by a minimum of 30% by 2020 (from a 2006 baseline). The 2013 emissions figure was down 29% from 2006.

Nokia reduced CO2 emissions from air travel by 54% from 2011 to 2012 in total, and by 39% when calculating reductions per employee. In part this was due to the installation and greater use of new video conferencing facilities.

Corporate Social Responsibility of Nokia

What is corporate social responsibility? Different organizations have framed different definitions, depending on a number of factors. These include the firms size, products, activities, location, suppliers, leadership and reputation - although there is considerable common ground betnokiaen them. The definition of CSR is that CSR is about how companies manage the business processes to produce an overall positive impact on society. In recent years, corporate social responsibility has been an increasingly popular topic. More and more companies notice the importance of corporate social responsibility. Because consumers are not only paying attention to the products like before, but also scrutinizing yNokias brands now. In order to maintain respected brands, CSR is a good way for organizations to evaluate their impact on the world around them, and to make changes that create positive effects in their communities.

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This report will show the benefits of corporate social responsibility, the key issues in corporate social responsibility and implementing corporate social responsibility. The aim of this essay is using the corporate social responsibility model to analysis the company of Nokia and to make sure what kind of Nokias corporate social responsibility strategy is.

CSR Main Components

The scope of CSR is unbound at the present time, because the corporate social responsibility is different for different organizations. British council (2004) shows that CSR is related to: Environmental protection; LabNokias Security; Human rights; Community involvement; Business standards; Marketplace; Enterprise and economic development; Health promotion; Education and Leadership Development; Human Disaster Relief.

The Benefits of CSR

Roland Bnabou and Jean Tirole (2009) show that Empirical studies often relate corporate profitability with socially responsible behavior. There seems to be, overall, no or a slightly positive correlation betnokiaen socially responsible behavior and corporate returns. So somebody view CSR as a drain on resNokiasces, because carefully implemented CSR policies can help yNokias organization. According to the nokiabsite of Simply CSR (2008), benefits of CSR to companies include: 1. Win new business. 2. Increase customer retention. 3. Develop and enhance relationships with customers, suppliers and networks. 4. Attract, retain and maintain a happy workforce and be an Employer of Choice. 5. Save money on energy and operating costs and manage risk. 6.
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Differentiate yNokiasself from yNokias competitors. 7. Generate innovation and learning and enhance yNokias influence. 8. Improve yNokias business reputation and standing. 9. Provide access to investment and funding opportunities. 10. Generate positive publicity and media opportunities due to media interest in ethical business activities.

How to implement CSR commitments

Different company will approach CSR implementation in different ways. Paul Hohnen (2007) show one way to implement CSR commitments:

Develop an integrated CSR decision-making structure;

Prepare and implement a CSR business plan;

Set measurable targets and identify performance measures;

Engage employees and others to whom CSR commitments apply;

Design and conduct CSR training;

Establish mechanisms for addressing problematic behavior;

Create internal and external communications plans; Make commitments public.

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Chapter-4 Research And Methodology Overview of CSR at Nokia

Every companys characteristics and circumstances are different, and it will affect how the company defining and implementing social responsibility. So there is no one-sizefits-all method for pursuing a corporate social responsibility approach. Lets take Nokia for example to have a look how much work it has already done towards implementing a CSR approach.

Mobile communications have played a big role in people's lives and Nokia was already the world leader in the mobile telephone industry. The Nokias nokiabsite shows Nokias head office is located in Espoo, Finland, but production, research and development, sales, and marketing activities are located around the world. The company has sales in more than 150 country, over a billion people in the world use a Nokia phone. As a market leader, Nokia aim to lead in sustainability in a responsible way by taking it into account in everything they do and improving peoples live. (Nokia, 2010)

Nokia's community CSR analysis

From the Nokias sustainability report 2009, nokia can see a wide range of examples of what kinds of corporate social responsibility had Nokia done for enhancing their sustainability. According to the corporate social responsibilitys key issues, there are sections on:
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Environmental protection: Nokia aims to be a leading company in environmental performance. They effort focus on fNokias issues: Substance management, Energy efficiency, Take-back and recycling, Promoting sustainability through services and software. For example, they reduce the average chargers no-load ponokiar consumption from 2006 level by 50% by the end of 2010. (Nokias sustainability report, 2009) LabNokias Security: They run a range of campaigns and training programs to raise awareness about health and safety issues. In 2009, Nokias global injury and illness rate was 0.49, continuing a three-year downward trend. There nokia are no fatal injuries. (Nokias sustainability report, 2009)

Human rights: They focus on developing workplaces free from discrimination. For example, labor condition assessments are conducted every second year at all production sites. (Nokias sustainability report, 2009) Community involvement: Employee volunteering also is an important part of Nokias global corporate responsibility approach. Every year, thousands of employees contribute their time and effort to worthy causes in their communities. (Nokias sustainability report, 2009)

Business standards: They comply with employment guidelines and labor condition standard. For example, labor condition assessments are conducted every second year at all production sites. (Nokias sustainability report, 2009)

Employee nokia llbeing: The nokiallbeing of employees had made a big difference with before. In the 2009 employee survey, 61 percent of the respondents felt that their
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manager supports them in their efforts to maintain a life balance. (Nokias sustainability report, 2009)

Supply chain: They thought define expectations for their suppliers clearly as an important part of their work and they had developed a comprehensive set of global Nokia Supplier Requirements. (Nokias sustainability report, 2009)

Education and Leadership Development: They provide a variety of training opportunities for employees to help them develop a broad range of skills for the workplace. During 2009, they spent 25 million euro on training for employees. (Nokias sustainability report, 2009)

Human Disaster Relief: They try to respond to disaster relief. In 2010 they have responded to the earthquakes in Haiti and Qinghai region of Nokiastern China as nokiall as the mudslide in Uganda. (Nokias sustainability report, 2009)

Analysis
From the information above, nokia can see that Nokias corporate social responsibility has included Economic Responsibilities, Legal Responsibilities, Ethical Responsibilities and Discretionary Responsibilities. At Nokia they try to lead in sustainability by taking it into account in everything they do. So nokia can say that Nokias social responsibility strategy is proactive. In addition, Nokias CSR strategy helps it get great benefits. For Nokia, CSR is not only about shaping corporate culture, minimizing risk, enhancing efficiency and building company reputation in the eyes of the public, but also the CSR had been an integral part of good business sense. Another important business benefit is
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the CSR help it making a good relationship with government. Corporate social responsibility is fundamental to Nokias business, brand and culture, so Nokia will continually approach CSR implementation actively. (Nokias sustainability report, 2009)

Snapshot of Nokias supply chain

As nokia operate Nokias own global manufacturing network, most manufacturing is done in-house complying with Nokias strict internal social and environmental requirements. The first tier of Nokias supplier network starts after Nokias own manufacturing network. Nokias supply chain consists of around a hundred direct suppliers for hardware, components and parts, as nokiall as hundreds of software suppliers. Nokia also work with thousands of indirect suppliers who provide services and equipment needed for Nokias daily operations. Nokias global supply chain begins with raw material extraction and processing, and ends with the manufacturing of components and final product assembly and distribution. There are typically fNokias to eight supplier layers betnokiaen mining activities and Nokias assembly factories. Nokias supply chain is a network of companies in multiple tiers spread around the world. It delivers goods and services to Nokias own production sites as nokia all as to Nokias offices worldwide.

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Measuring the environmental and social performance through assessments

Nokia use a range of assessment methods to first of all estimate suppliers compliance against Nokias requirements but also to help them improve their performance level even further. Most assessments are conducted by trained Nokia assessors as nokia believe its important for us see the factories or facilities for Nokiasselves, to understand the problems and work directly with suppliers to drive improvements. Occasionally, nokia work with third parties for specific expertise or investigations, or as part of joint industry assessments.

Supplier self-assessments
As part of the onboarding process, new suppliers are usually requested to conduct a selfassessment in regards to the Nokia Supplier Requirements. This provides us with an indication of the suppliers own understanding of their compliance level before conducting an on-site assessment. In addition to these self-assessments, nokia use nokiabbased risk assessment tools to get an indication of potential environmental, ethical, health and safety and labor risks in regards to the industry, countries and operations of the supplier.

Minimizing the environmental impact of Nokias supply chain

Roughly 74 percent of the energy consumption and greenhouse gas emissions generated by an average Nokia product during its life occur in the supply chain, before the components reach Nokias factories.
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In order to reduce this impact and to produce environmentally sound products, a holistic approach to environmental management is of key importance. Nokia have worked hard with Nokias suppliers to establish environmental policies and to ensure monitoring, controlling and proper treatment of energy consumption, air emissions, waste, wastewater, hazardous substances, and chemicals generated from operations. This helps us ensure effective planning, operations, and control of environmental matters at the facilities where components and parts are made for us. Today, over 90 percent of Nokias hardware and mechanics suppliers' sites are ISO 14001 certified, and majority of them have company-level reduction targets in place and monitored for energy, greenhouse gas emissions, water and waste. Nokias future goal is to drive impact reductions even further to enable a longer run positive impact.

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Improving social conditions in Nokias supply chain

Nokias aim is to ensure that all Nokias suppliers demonstrate ethical labNokias practices, maintain high standards of health and safety, and treat their workforce with dignity and respect. Nokias suppliers must have in place policies, risk assessments, improvement programs, procedures and management reviews, to assure effective management of labor conditions and health and safety hazards. 98 percent of Nokias direct hardware suppliers have code of conduct in place already and nokia're now focusing Nokias efforts on ensuring that Nokias suppliers are effectively implementing their codes and communicating about them with their workers.
It is important to us that Nokias suppliers properly manage their labor practices and provide a safe workplace for their workers. In 2010, nokia introduced three new metrics related to health, safety and labor issues. These metrics measure occupational injuries and illnesses, employee attrition and overall employee satisfaction. Nokia use them to help us get a deeper understanding of the social conditions at Nokias suppliers' workplaces.

Nokia has actively worked independently and with suppliers, industry peers and other stakeholders to improve traceability and ensure responsible sourcing
Nokias conflict minerals due diligence activities include:

Active participation in EICC-GeSI Conflict-Free Sourcing Initiative

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Incorporating requirements regarding conflict minerals policy and due diligence into Nokia Supplier Requirements and Nokia Substance List

Establishing long-term relationships with suppliers and working with them to drive improvements

Inquiry into our suppliers due diligence activities, and taking action accordingly Identification of smelters in our supply chain with the EICC-GeSI reporting template

Contribution to and reliance on the Conflict Free Smelter program, once a sufficient amount of smelters have been validated

Publishing a Natural resources policy and its implementation regarding conflict minerals and communicating our policy to all our direct hardware suppliers. Nokia require the parties in our supply chain to agree to follow the same principles.

Participating in the OECD pilot implementation phase of the OECD Due Diligence for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The guidance outlines a five-step risk-based due diligence process as a basis for upstream and downstream companies to develop responsible supply chain management for tin, tantalum, or tungsten

Joining the Public-Private Alliance for Responsible Minerals Trade (PPA), a joint initiative betnokiaen governments, companies, and civil society, to support supply chain solutions to conflict minerals challenges in the Democratic Republic of Congo (DRC) and the Great Lakes Region (GLR) of Central Africa. While nokia

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want to ensure that our products are free of conflict minerals, nokia wish to avoid an embargo on Central Africa and support legitimate trade

Joining the Solutions for Hope initiative to enable validated conflict-free tantalum from the Democratic Republic of the Congo (DRC) to be used in our products

Joining the Conflict Free Tin Initiative to enable validated conflict-free tin from the Democratic Republic of the Congo (DRC) to be used in our products

Reaching full traceability of minerals requires time and effort across the industries and collaboration from all actors in the supply chain. This is due to the complexity in the way metals are produced and sold, and to the fact that ores from many different sources can be combined. Once a mineral is smelted, any characteristics of the ore, or its origin, is gone and in the process the sources for metals used multiply quickly. Thats why industry wide cooperation is so important when ensuring ethical sourcing.

Global e-Sustainability Initiative (GeSI)

Nokia has been a full member of the Global e-Sustainability Initiative (GeSI) since 2007. The organization is working together with the Electronic Industry Citizenship Coalition (EICC) to promote good conduct and to develop and deploy a consistent set of tools and processes to measure, monitor and improve corporate responsibility (CR) performance across the ICT sector supply chain. These two industry associations have conducted extensive research into the key challenges surrounding the supply of metals, the ability to trace and track the sources of metal used in electronic products, and the industrys ability to influence conditions.

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Key achievements in this area include:

EICC and GeSI have initiated the Conflict Free Smelter assessment programme (CFS) to identify and validate smelters that process materials originated from conflict-free sources. Nokia has actively participated in the development of this programme and participated in some of the initial smelter visits.

EICC and GeSI have developed the Conflict Minerals Reporting Template tool to facilitate disclosure and communication of information regarding smelters that provide material to a companys supply chain. Nokia has switched from our own template to this standardized tool in order to avoid our suppliers receiving a plethora of different reporting templates.

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Chapter-5 Observation Organisation for Economic Cooperation and Development (OECD)

Nokia is participating in the pilot implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The guidance outlines a five-step risk-based due diligence process as a basis for upstream and downstream companies to develop responsible supply chain management for tin, tantalum, or tungsten.

OECD has launched the 12-month multi-stakeholder pilot to understand how companies are implementing the guidance, to assess challenges they may face, and to identify best practices. Nokia has volunteered to take part and nokia encourage our suppliers to participate as nokia all. Around the world, billions of people live in remote or underresourced communities without access to adequate education, healthcare or even up-todate news let alone banking or financial services. Nokia believe that affordable mobile technology has the potential to transform the delivery of these services, improve their quality and make them available to many more people. And that can promote social and economic change on a huge scale.

With over a billion people using our mobile phones, nokia have both an opportunity and a responsibility to make a real difference in their lives. A key pillar of our strategy is to bring access to the internet and information to a billion people who currently dont have

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it. By extending the ponokiar of mobile technology, nokiare helping to address global sustainability challenges like education, health, livelihoods, and accessibility. This includes new opportunities for a vast number of people to create and use locally relevant apps and content.

Education for everyone

Nokia believe everyone should have the right to learn and to develop themselves. Yet millions of people around the world are excluded from learning opportunities for a variety of reasons from their geographical location to their gender or their financial circumstances. Nokia believe mobile technology has the ponokiar to change this situation.

A global challenge
It is estimated that around the world, more than 750 million adults are still illiterate. Clearly, action needs to be taken to address this critical issue, and mobile products and applications can play a key role.

How nokia can help

The beauty of mobile technology is that it frees knowledge, information and education from the constraints of classrooms, libraries, and expensive urban areas. Whats more, it adds new dimensions to learning, making it a more engaging, interactive experience.

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By developing mobile educational products such as Nokia Education Delivery, Nokia Mobile Mathematics and Nokia Flashcards, nokia are enabling millions of people to access a world that was previously closed to them. Our education approach is aligned to UNESCOs Education for All goals, and nokia aim to use our products, services and technology to support those objectives.

Nokia Education Delivery

Nokia Education Delivery uses mobile technology to deliver quality education materials to remote, hard-to-reach areas. Using a mobile phone, teachers and trainers can access and download videos and other educational resources from a constantly updated catalogue. Already operating in hundreds of schools and having reached millions of students in the Philippines, Tanzania, Chile and Colombia, Nokia Education Delivery has been shown to improve study results and increase retention among students, especially girls.

Nokia Mobile Mathematics

In 2008, nokia launched a pilot scheme for mobile mathematics in South Africa. Using a popular social networking channel to get kids interested, the service delivers interactive study packages to students' mobile phones.

Today, the service content includes theory, exercises, tutoring, peer-to-peer support, as nokiall as competitions, tests and self-assessment. The scheme has led to highly motivated grade 10 pupils chatting with friends and doing maths on their mobiles, even
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out of school in the evenings, nokiaekends and holidays testing themselves to continually improve their scores and competing with their friends.

To date, 50,000 students, 700 teachers and 200 schools in South Africa have benefited from the service. Whats more, on average the final grade 10 math marks of students using Nokia Mobile Mathematics nokiare 7% better than their peers who didn't use the service.

Improving livelihoods through mobility

The proliferation of the internet and information and communication technologies (ICT) has brought tremendous benefits to huge numbers of people. Yet those who are unable to access these technologies, for financial or geographical reasons, are at risk of being left behind.

Only by bridging this digital divide can nokia prevent people in remote or poor areas being marginalised, rather than emponokiared, by technology. And affordable mobile products and services offer the solution, helping us bring new business and employment opportunities to people all over the world.

Health and nokiallbeing

Information and communication play a major role in improving health, safety and nokiallbeing all critical components of a sustainable world. By enabling effective knowledge sharing and remote access to real-time information, mobile technology can

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have a positive impact in a range of areas from pregnancy and maternal health to childcare and disease prevention.

Nokia Data Gathering

On a wider scale, mobile applications such as Nokia Data Gathering can help organisations effectively collect field data such as information on disease outbreaks.

The Amazonas State Health Department in Brazil was the first to use the solution as part of its fight against dengue fever in the city of Manaus in Northern Brazil. It has since been used by over 150 organisations globally in fields such as birth registration, agricultural production monitoring, water surveys and more.

An open source software, Nokia Data Gathering is available to everybody free of charge. It can be used to create tailored questionnaires and distribute them to multiple mobile phones using a normal mobile network. Field personnel surveying local conditions can quickly complete the questionnaires and immediately transmit their findings to a central database. The system also allows organisations to geo-tag data with GPS location information to build a more detailed picture of very local conditions.

Disaster response Be prepared

At Nokia nokiare increasingly focused on disaster preparedness as nokiall as disaster response and rehabilitation. Mobile technology can greatly improve the ability of

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organisations and the public to react quickly and effectively both to the threat and to the consequences of a disaster.

Mobile-based tools and applications such as Nokia Data Gathering are already helping researchers out in the field determine where the next epidemic may strike. And innovations such as our mobile donation application help ensure that charities and other organisations have the funds they need, when they need them.

Where possible, nokia also try to prevent critical situations arising.

Be practical
When disaster does strike nokia work together with our non-profit partners around the world to determine the most appropriate response. From drought to tsunami, nokia evaluate every crisis situation individually and our response depends on the severity of the situation, our presence and our ability to make a meaningful contribution. Naturally, this often involves financial or in-kind support.

Following the 2010 earthquake in Haiti, for example, nokia not only matched the initial Nokia employee donations to American Red Cross, but our personnel also provided technical support to the mobile Red Cross unit. As the relief efforts progressed, nokia used our expertise in Near Field Communication (NFC) technology to help health workers monitor drinking water in more than 35,000

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households. This enabled them to treat the water when necessary, reducing the risk of outbreaks of cholera and other waterborne diseases.

Social strategy:
Nokia invest in social projects which impact three key issues; education, livelihoods and health. Nokia believe the ponokiar of mobility plays a key role in the development of these areas.

For example, there are the kids in South Africa who are benefiting from our mobile mathematics learning tool. Or the farmers in rural India using Nokia Life Tools to enhance their business by giving them access to up-to-date information, ranging from market prices to nokiaather forecasts. And the communities in the Amazon region where Nokia Data Gathering is helping combat the spread of diseases such as dengue fever. These are just some of the many ways in which Nokia is helping make peoples lives better, particularly in developing countries. From improving health and nokiallbeing to emponokiaring people both economically and socially the humble mobile phone has come a long, long way. But at Nokia nokia also recognise the direct impact our operations can have on the men and women who make up our workforce. For this reason, nokia go to great lengths to implement sustainable and ethical working practices at all our production facilities and to ensure the health, safety and nokiallbeing of our workers.

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Environmental strategy: minimising negative impact, maximising positive impact

Nokia aim to lead in the reduction of any negative environmental impact and nokia aim to offer people products and solutions that help them make sustainable choices. Also, by closely collaborating with our suppliers, nokia also hope to improve the environmental performance of our supply chain. Environmental issues are everyones responsibility at Nokia they are a part of everything nokia do. For example, reducing the emissions of our own facilities and those of our suppliers; increasing energy efficiency throughout our operations and using green energy where possible; saving resources through simple initiatives such as cutting down on packaging; and using sustainable, ethically sourced materials in our products.

In addition, our product creation is guided by life cycle thinking. It helps us continuously improve the environmental aspects of our products and processes in each phase of the product life cycle, from raw material acquisition to the end of life of the product. Over the years, nokia have been able to reduce the environmental impact of our products significantly.

But nokia go further than that. Nokia also use our resources to help organisations such as WWF and IUCN (International Union for Conservation of Nature) develop and implement environmental projects around the world. And nokia use our global reach and mobile technology expertise to encourage our customers to adopt greener, more sustainable lifestyles.

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Our environmental targets are never driven simply by regulatory compliance they actually go beyond legal requirements.

Environment: basic principles

Our environmental work focuses on minimising negative impact, based on global principles and standards that nokia integrate in our business activities. Nokia focus our environmental efforts on four key issues:

Substance management Nokia are the first mobile phone manufacturer to provide full material declaration for all our mobile devices, working closely with our suppliers. Go to substance management section to find out more.

Energy efficiency

Nokia ensure our devices and chargers use as little energy as possible. Nokia also work to reduce the energy consumption of our operations, and agree on energy efficiency targets with our key suppliers.

Recycling

Our recycling programme includes around 6,000 points across almost 100 countries that collect old mobile phones. Its an initiative to increase awareness of recycling, as nokiall as to help return materials for reuse.

Promoting environmental sustainability

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Nokia develop mobile products, services and applications to help people make sustainable choices, and to consider the environment in their everyday lives. In these positive ways nokia lead the reduction of negative environmental impact.

Climate targets: minimising greenhouse gas emissions

Even though Nokia is not an energy intensive company and most of the greenhouse gas emissions occur in component manufacturing by our suppliers or in the usage of our products, nokia want to show leadership. Nokia do that by reducing our own energy consumption and greenhouse gas emissions, and take responsibility in raising awareness and promoting best practices in our value chain and industry.

Our climate work addresses the energy consumption and greenhouse gas emissions of our products and operations, and sets energy and greenhouse gas emission reduction targets for our most important activities in areas that contribute to our direct and indirect greenhouse gas emissions. Nokia created our first climate strategy in 2006, revised it in 2010, and started updating new, longer term reduction targets in 2012 concentrating on:

products manufacturing, facilities and way of working logistics and suppliers helping our customers to decrease their own greenhouse gas footprint

According to the SMARTer2020 report, which identifies the role of ICT in driving a sustainable future and decreasing global greenhouse gas (GHG) emissions, ICT sector has the potential to help others decrease their emissions seven times the size of its own
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carbon footprint. Nokia believe that with over 1.3 billion people using our devices, nokiare in a unique position to effect positive environmental change. Thats why nokia aim to enable people who use Nokia phones to reduce their greenhouse gas emissions several times more than caused during the life cycle of their devices. The main activity areas are:

develop services that reduce the need for unnecessary travel and commuting, and promote environmentally friendly transportation (e.g. navigation, virtual meetings, remote work)

develop applications for sustainable lifestyle and services that replace physical products develop mobile devices that help replacing other products help save energy with energy efficient solutions

Over the years, nokia have been able to reduce the environmental impact of our products significantly. The greenhouse gas footprint of our phones has been reduced by up to 50% betnokiaen 2000 and 2010, while introducing new features and capabilities that allow our devices to be used in various new ways. The targets nokia have set for specific areas of the device life cycle are listed below.

Products

Continue our efforts to reach the average no-load consumption of 0.07W in our chargers. In 2012 nokia reached 0.098W which is a reduction of 13% from the previous year.

Develop solutions that enhance the energy efficiency in our products and continue to study new technologies which will use renewable energy
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Manufacturing and our facilities

Reduce greenhouse gas emissions in our offices, R&D sites and manufacturing facilities by a minimum of 30% by 2020 (2006 baseline)

Reduce CO2 emissions per person working in Nokia offices and R&D by 20% by the end of 2013, and 28% by the end of 2015 (2006 baseline)

Reduce energy used in production by 10% per unit produced by the end of 2013 , and 15% by the end of 2015 (2010 baseline)*

All laptops, desktop computers, workstations and monitors purchased by Nokia to have Energy Star or Electronic Product Environmental Assessment Tool (EPEAT) Gold or Silver rating.

In addition to studying possibilities to increase our onsite renewable energy production, our intention is to maintain the purchase of renewable energy via grid and via renewable energy certificates at least in the current level of 35-40%. Possibilities to increase the use of clean energy depend to large extent on the energy production structure of the countries where nokia operate. Nokia has made efforts to purchase renewable energy where ever available but the slow development of renewable energy markets in some of the countries nokia operate continues to be a challenge.

Ways of working

Maintain annual air travel-related CO2 emissions, both total and per employee, significantly below 2008 levels by limiting unnecessary travel and providing alternatives such as videoconferencing
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Renew the Nokia remote working framework and increase the number of countries where employee public transport options are offered and car lease policies are tied to lonokiar emissions limits

Logistics

Reduce CO2 emissions from logistics per product sold by 5% by the end of 2013 and 15% by the end of 2015 (2010 baseline)

Suppliers To quantify our upstream indirect emissions taking place in Nokias supply chain, nokia have been using life cycle assessment calculations for many years. These calculations indicate that around 50% of the energy consumption and greenhouse gas emissions a Nokia product generates occur in the supply chain before the components reach our factories. Since 2007 nokia have been working closely with our suppliers to estimate as nokiall as reduce this impact.

In the future our goal is to drive impact reductions even further that will enable a longer run positive impact. In the coming years our efforts will thus focus on:

In accordance with GHG Scope 3 and based on primary data of high quality, nokia aim to establish a baseline for the impact of Nokias 1st tier supply chain (hardware and mechanics suppliers). This will enable us to set a holistic reduction target across the tier.

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Drive significant emission reductions with suppliers of key component or high impact areas (e.g. with Integrated circuit, printed wired board and flex printed circuit suppliers). The reduction target percentages will be component type specific and be developed in close collaboration with our suppliers.

Go beyond 1st tier As nokia are continuously increasing our internet presence, Nokia is committed to work with its data center and cloud service suppliers for continuous improvement of energy efficiency and transparency of energy and emission reporting

Our recent performance

Since 2004 nokia have reduced the no-load consumption of our chargers by more than 73%, and in our best-in-class chargers by over 90%.

In 2011, Nokia facilities greenhouse gas emissions nokiare 17 % lonokiar than in base year 2006, meaning nokia are on track towards our 2020 target.

Nokia met our 2011 target when nokia reduced COemissions from offices and R&D premises by 15% in CO per person, compared to 2006.

In 2011, Nokias CO2 emissions from air travel have been reduced by 36% from 2008 base level but are 2.8% more than in 2010.

In 2011 nokia reached ahead of schedule - our target of creating 6% of new energy savings in technical building maintenance systems betnokiaen 2007 and 2010, in addition to the savings of 3.5% achieved already from 2003 to 2006.

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Water vision and mission

Water is critical and valuable resource, and its availability to future generations has to be assured.

Even though Nokia's operations are not considered as water intensive, water has strategic importance in our supply chain and it is a necessity for communities around us.

Nokia have taken action to ensure Nokia's operations cause a minimal amount of additional burden for the environment.

Nokia support various water conservation projects especially in the water scarce areas.

Nokia work with expert organizations on how to best utilize mobile technology in issues such as water efficiency, awareness rising or improved water management.

Nokia are committed to drive efficient water use in our supply chain. Nokia do this by collaborating with our suppliers to increase awareness, set water reduction targets and support best practices in water management.

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Chapter-5 Conclusion
In a conclusion, this report has described the definition of CSR, main components of CSR, benefits of CSR to companies and how to implement CSR commitments. Moreover, take the company of Nokia for case study, analysis what kinds of CSR had Nokia done by some examples, what kinds of business benefits had Nokia got and the trend. Finally, the CSR is still in the early stage and the richer our societies the higher demand for social responsibility, so I hope will be more companies approach CSR implementation

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