“INTERNATIONAL

BUSINESS
JOURNEY OF
NOKIA”
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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
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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.

GRAPHS
FEB, 2010
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HISTORY
Nokia was set up in 1865, when a Finnish mining engineer, Fredrik Idestam
established a wood pulp mill on the banks of the Nokia river in southern Finland to
manufacture paper. In 1967, three companies, the Nokia Forest Products Company,
Finnish Cable Works and Finnish Rubber Works merged. As Cable Works had
expertise in power transmission cables and phone lines, Nokia decided to start an
electronics division to diversify into telecom products in 1960.

The decision to move into electronics was well timed. Semi conductor technology
was just evolving and Nokia, despite being a newcomer, was not seriously
handicapped in any way. It was Bjorn Westerlund, president of Cable Works who
mooted the idea. Westerland tied up with colleges and universities and hired
technically competent people to implement the project.

In the early 1970s, Nokia began developing a switch equipped with computer
software and Intel's microprocessors. Called the DX 200, the switch evolved into a
multifaceted platform, still the basis of Nokia's network infrastructure. The leadership
of Kari Kairamo, who became Nokia’s CEO in 1977, played a crucial role in Nokia’s
evolution as a leader in mobile phones. Kairamo, himself had little knowledge of the
business, having been associated with the forest products division. He, however,
showed extraordinary initiative, by recruiting outside talent and empowering the
young engineers in the electronics division.

In 1981, the Scandinavian countries came together to set up a multinational cellular

network, called Nordic Mobile Telephony (NMT). Many other countries also
accepted NMT. The system offered competitive prices, and international roaming
facilities, and quickly gained popularity the world over. While Swedish company
Ericsson rapidly emerged as the global leader in the cellular network equipment
business, Nokia gradually strengthened its capabilities in the mobile handsets
segment. Soon mobile phones began to evolve as an affordable communication
medium even for the common man.

In the late 1980s, the European conference of Postal and Telecommunications

Administration (CEPT) decided to develop a common standard for digital mobile
telephony. This standard came to be known as GSM* (Global System for Mobile
Communications). Nokia committed itself to GSM technology very early on and
signed agreements to supply GSM networks to nine other European countries.
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VISION
Ten years ago, nokia had a vision that seemed revolutionary for the times: Voice
Goes Mobile! As history shows, this vision became reality in an incredibly short
amount of time. With more than 1.6 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, Nokia sees mobility expanding into new areas such as imaging, games,
entertainment, media and enterprises. There are new mobile services already taking
our industry forward and creating new opportunities. At the same time, major
opportunities still exist in bringing mobile voice to completely new users.

If it can go mobile – it will!

MISSION: CONNECTING PEOPLE

By connecting people, nokia help fulfill a fundamental human need for social
connections and contact. Nokia builds bridges between people – both when they are
far apart and face-to-face – and also bridges the gap between people and the
information they need.

THE NOKIA VALUE SYSTEM

Flat, networked organization, as well as speed and flexibility in decision-making,
characterize the Nokia Way of working. Equal opportunities and openness towards
people and new ideas are also key elements we want to nourish. 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. We
provide individuals with a platform for personal growth in a challenging environment
with a clear vision, goals and shared management principles - the Nokia Way. The
Nokia Way brings together talented individuals who share these principles, and
therefore share success.
Nokia’s values are key components of the Nokia Way. Believing in these core values
and living them every day is our common bond and shared philosophy. These values
drive Nokia colleagues, wherever they are in the world.
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Customer Satisfaction
Creating customer satisfaction is the basis of our strategies and actions. Our
customers and end-users are the most important people for Nokia, and we need to all
understand how our work will benefit them.
Customer satisfaction is about meeting the existing needs of our customers, but even
more important is the ability to anticipate their emerging needs, and create solutions
to fill them. We should all be committed to producing high quality solutions, products
and services.

Respect
Treating one another with trust and respect is a cornerstone of the Nokia values, and
essential for building an open and honest spirit at the workplace. Our culture allows
us to depend on each other, and communicate openly and honestly.

Nokia is a global and multi-cultural company. We seek diversity, because it is an

important asset that enables us to achieve extraordinary results.

Respect also describes our attitude to the surrounding world. In today's networked
operational mode, we are working with an increasing number of partners, and we
should care for and respect them. We also value the environment and communities
around us.

Achievement
Nokia strategies and goals need to be inspirational and easily understandable, but the
drive to achieve can only start from within each of us. Everyone at Nokia should
genuinely say: "I care!"

All have a responsibility to contribute to Nokia's success. Professionalism is at the

heart of everything we do, and it is understood that everyone will strive to excel at his
or her job. Still, no one can realize company goals alone. That's why the Nokia Way
aims to connect people in teams, not for the sake of debating the goals, but for
reaching them faster. We recognize and celebrate our individual and shared
achievements.

Renewal
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Nokia has a willingness to change and develop. The environment in which we do

business is evolving continuously. To succeed, we must have the passion and courage
to look for new ideas beyond existing products, services and ways of working. 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.

Management and Leadership

Nokia has a distinctive management and leadership approach based on the Nokia Way
at all levels. This creates commitment, passion and inspiration through collaboration
and coaching, and ensures focus and efficiency by setting targets, fulfilling goals and
reviewing results. Personal growth through self-leadership provides the foundation
for successful management and leadership practices. Employees are encouraged to be
responsible for their own development and to take advantage of the various
development opportunities available.

Employee Participation
Nokia encourages open discussion and debate. As an example, 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. We listen to the views of our
employees and act on them when designing our people policies and practices.

Another example in addition to this annual survey, other issue-specific surveys and
focus group discussions, is the "Ask HR" feedback channel on our human resources
Intranet. There, every employee can comment or ask questions about our people
practices and processes, even anonymously, and receive a prompt and openly
published response.

NOKIA VALUES
The Nokia values are a statement of how Nokia should operate as a cornerstone of the
company's corporate culture. They are the standards of behaviour expected of all
Nokia employees. The values form a common bond and language as well as shared
philosophy for working together. Nokia's values are customer satisfaction, respect for
the individual, achievement and continuous learning. Customer satisfaction is the
basis of all Nokia's operations. Respect for the individual means that Nokia believes
in the individual, whether she or he is an employee, a business partner or a customer.
It also means open and candid communication, fairness, mutual trust and acceptance
of diversity. Achieving results requires that every Nokia employee is working
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according to a strategy and well defined goals. Everyone in the company must know
the goals of the company as well as those set for him or her. To be a leader in the
telecommunications industry takes innovation, courage and a constant willingness to
learn. Continuous learning means that everyone is entitled to look for ways to
improve their performance.
Nokia wants to create an environment where employees, 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. 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. The values and principles will continue to provide the
foundation for our long term success also in the future
Today, Nokia is one of the most visible companies in the world. It sells its mobile
phones in more than 130 countries. Its GSM technology is used by 87 operators in 39
countries. Nokia has offices in more than 50 countries. Its R&D centres are spread
over 4 continents in 14 countries - Australia, Canada, China, Denmark, Finland,
Germany, Hungary, Italy, Japan, Malaysia, Korea, Sweden, UK and the US. Nokia
carries out manufacturing activities in 10 countries.

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. In 1999, Nokia had a commanding 27% share of the
global mobile phones business, with Motorola coming a poor second with 17%.
According to brand consultancy firm Interbrand, Nokia was the eleventh most
valuable brand in the world in 1999. In early 2000, Nokia also had the largest market
capitalisation among European companies.

Nokia struggled in the late 1980s as the mobile phones business continued to make
losses. To worsen matters, the collapse of the Soviet Union in 1991 resulted in the
loss of a strategically important market. Nokia also faced intense competition from
Motorola, which had much stronger manufacturing capabilities. In 1991, as the
situation looked gloomy, a bank which held the largest shareholding in Nokia, made
an unsuccessful attempt to sell its stake to Ericsson. The turning point for Nokia came
in February 1990, when Jormia Ollila was put in charge of the mobile phones
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business. Ollila recalled the instructions he had received from seniors in the
company1: “Look, you get six months to make a proposal on whether we sell it or
what we do with this business.” Ollila replied after four months that the business was
worth retaining.

Ollila streamlined Nokia’s R&D activities, divested non core operations and invested
heavily in brand building. 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.
Nokia also came up with a big screen and built several PC like capabilities into its
phones. Nokia’s 2100 series, shipped in 1993, became a runaway success. Its digital
technology was a big hit in the US2. The way Nokia managed the project gave it
tremendous confidence in its global capabilities. Coordinated from UK, but with
inputs from different parts of the world, especially strategically important markets
like Japan, the product development efforts had a truly transnational approach. In
1994, Nokia became the first manufacturer to launch mobile phones for all major
digital systems: GSM, GSM 1800 (PCN), TDMA3 and Japan Digital. In 1997, Nokia
also began to offer phones conforming to CDMA4 and GSM 1900 standard.

SOCIAL OBJECTIVES
Nokia with its mission to 'connect people' is the world leader in mobile
communications. The company is deeply concerned about ethical business practices
and believes that personal and organisational integrity is essential to long term
relationships- whether with customers, employees or stakeholders. The organisation is
committed to development initiatives and is supporting numerous projects in
partnership with several community and charitable organizations worldwide.

1. The focus of its community initiatives are centered on education,

corporate giving and disaster relief.

2. Keeping in line with their international programmes of employee

volunteering called 'Helping Hands', Nokia India is involved with an NGO
working with children with disabilities in Delhi.

3. Nokia's employees provide support to the NGO in terms of help and

training in accounts, human resources, IT, working with children and other
activities. Environment is another issue that is high on the agenda of the company.

4. The packagings of all their phones are made from recycled paper.
Clear instructions are also provided for correct disposal of used batteries with
every handset.

5. Nokia is also set to launch its volunteering programmes involving all

its employees.
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A market leader in the cellular industry in Asia Pacific, Nokia provides innovative,
industry- leading and market relevant technology and products to around 20 diverse
markets in the region.

Backed by its experience, innovation, user-friendliness and reliable solutions, the

company has become the leading supplier of mobile phones and a major supplier of
broadband and IP networks. By adding mobility to the internet, Nokia creates new
opportunities for companies and further enriches the daily lives of the people. Nokia
is a broadly held company with listings on six major exchanges.

ECONOMIC OBJECTIVES
1. Economic Mission at Nokia is, foremostly, to drive a profitable and growing
business.
2. By conducting business in a responsible way, Nokia can make a significant
contribution to sustainable development, at the same time building a strong
foundation for economic growth.
3. Decreasing costs, and building reputation amongst stakeholders.

PARITY BETWEEN SOCIAL AND ECONOMIC

OBJECTIVES
Mission at Nokia is, foremostly, to drive a profitable and growing business, but that
does not mean business at any cost. Conducting our business in an environmentally
responsible way is one very important way to ensuring and enhances long-term
profitability.

 Sound environmental principles make business sense by helping minimize

risk, ensuring legal compliance, decreasing costs, and building reputation
amongst stakeholders.
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 By conducting business in a responsible way, Nokia can make a significant

contribution to sustainable development, at the same time building a strong
foundation for economic growth.
 A strong spirit of cooperation, an ongoing open dialogue, and a determination
to learn from each other – be it the public sector, civil society or the private
sector - is imperative in steering the best course of action as we go forward.
 Nokia’s goal – responsibility – is to ensure that information and
communication technologies continue to create sustainable economic growth,
foster social cohesion and sustain free markets.
Just as the mobile communications industry has contributed to the wealth creation in
the industrialised countries over the last ten years, it is imperative that we do not lose
sight of the opportunity this offers for the rest of the world. Through providing low-
cost access to communication networks - offering service at a substantially lower cost
than fixed connectivity - the overall good this will bring to the global community is
immeasurable.

It is important for society that companies see the benefit themselves in being
responsible, so that they act proactively, integrate programs into core business and
make a sustainable effort. Doing business in a responsible way makes business sense
to Nokia. It helps to create a sustainable product life cycle, sustainable employment,
sustainable corporate reputation, ultimately sustainable economic growth

CORPORATE CULTURE
A team of five senior executives is generally credited with Nokia’s success. These
are Pekka Ala Pietila, president, Matti Alahuta, head of Mobile phones, Sari Baldant,
head of Nokia Networks, Olli Pekka Kallasuvo, finance director and Ollila himself.
The team has been remarkably stable, having worked with the company for more than
15 years.

Nokia’s informal work culture lays emphasis on the empowerment of frontline

employees. A production manager at Nokia’s factory in FortWorth, USA remarks1:
“That’s unique to Nokia – the freedom a group is allowed to take. There are certain
shared systems we keep as standard, but you’re allowed to be creative.” A senior
executive explains: “The objective is to always have decisions made by the people
who have the best knowledge.” Indeed, 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. You really have to figure out a network of people to get things done.”

According to Nokia's 1999 Annual Report, "Despite our growing size, our culture
remains that of an independent, innovative and creative start-up. We aim to maintain
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this culture no matter how large we may become. We believe that the best way to
achieve this is less through traditional management and more through leadership."
According to Industry Week, “At Nokia, there is a palpable culture of tolerating
mistakes and encouraging people to learn and develop.”

Creative organisations promote entrepreneurship among frontline employees and

empower them. Yet, without discipline, an informal and flexible work culture can
easily degenerate into chaos. At Nokia, a few senior executives have been given the
responsibility for global coordination and ensuring that core standards are uniformly
imposed across subsidiaries.
For example, all new design ideas are scrutinized by the chief designer, Frank
Nuovo, who is responsible for the continuity – the ‘face and soul’ of the product.
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.

Besides these formal mechanisms, Nokia’s annual meetings, referred to as the ‘Nokia
way,’ are used to exchange notes and set priorities. After a brainstorming exercise,
top managers define the company’s vision, which is communicated to the lower
layers of management through formal presentations. These meetings also come up
with appropriate slogans that help in conveying the company’s corporate purpose
across the organisation. In 1992, Nokia declared that it would be in ‘telecom oriented,
focused, global, value added’ businesses. Four years later, Nokia’s goal was to play ‘a
leading, brand recognized role in creating the mobile information society.' A more
recent slogan has been to “bring the Internet to everybody’s pocket.”

In mid 1998, Ollila shuffled his top team. In an interview with Business Week he
said: "I want to remove people from their comfort areas, to remove stubbornness that
gets built into the minds of the people. We want to build a certain amount of chaos
and a sense of urgency. Switching also helps people learn from one another.
Infrastructure can learn from handsets about the speed and product life cycle of
consumer electronics. And the phone people can learn customer relations from
infrastructure. It's cross fertilization."

Great leaders set Big Hairy Audacious Goals for their employees. To achieve these
goals, they are prepared to take big risks. In the early 1990s, Ollila bet heavily on
branding and consumer friendly designs to popularise the use of mobile phones.
Nokia also made major commitments ahead of time, in the wake of the European
Community’s attempts to deregulate the telecom industry. It tied up with smaller
players such as Orange in Britain and E-plus in Germany to grab market share from
traditional telecom suppliers.

As Nokia enters the new millennium, it faces new challenges in an industry where
technological change can be devastating. However, it can proudly look back at its past
achievements. As a report on its website mentions: “Nokia’s history has shown that
the right decisions made at the right time breed success. We are confident that this
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vision and the courage to create new opportunities will help us achieve our targets as
we move into a new era in communications.”

ETHICAL BUSINESS PRACTICES:-

Nokia has been and continues to be deeply committed to being an ethically sound
business; no long term customer, employee or other stakeholder relation can exist
without organization and personal integrity. Nokia is committed to the highest
standards of ethical conduct and full compliance with all applicable national and
international laws. Nokia's goal is to be an industry leader in these areas as well as a
good corporate citizen wherever it does business.

Ethics and Law

Nokia is strongly committed to the highest standards of ethical conduct, and full
compliance with all applicable national and international laws. This includes, for
example, those relating to antitrust and promoting fair competition, corporate
governance, preventing bribery, illicit payments and corruption, publicly traded
securities, safety in the intended use of the products and services Nokia delivers to
customers, labor laws and practices, the environment, human rights laws and
internationally recognized standards, and protecting copyright, company assets and
other forms of intellectual property. Nokia's goal is not mere minimum legal
compliance, but as an industry leader to be among the world’s best in corporate
responsibility, practicing good corporate citizenship wherever it does business.

Nokia respects the privacy and integrity of its stakeholders and endeavors to adhere to
strict standards when processing personal data and product information. All personal
data collected and held by Nokia will be processed fairly, lawfully and carefully and
in a way that protects the privacy of individuals.

Human Rights
Nokia respects and promotes human rights. Nokia recognizes that certain human
rights should be considered as fundamental and universal. Among those rights are
freedoms from discrimination based on race, colour, sex, language, religion, political
or other opinion, national or social origin, property or birth. Nokia will not use child
or forced labor. Nokia will not tolerate working conditions or treatments that are in
conflict with international laws and practices.

Conflicts of Interest. Gifts & Bribes

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Nokia employees are strictly expected to avoid conflicts of interest. Nokia and Nokia
people do not pay or offer to pay bribes or illicit payments to obtain or retain
business.

This includes, but is not limited to acceptance and giving of personal gifts or
hospitality, to or from Nokia stakeholders, other than gifts of nominal value or
reasonable hospitality given in the ordinary course of business. Any agreement or
understanding regarding favors or benefits in exchange for the gifts must be avoided.
Gifts of other than nominal value may not be accepted without full disclosure to and
prior relevant clearance from the employee’s supervisor. Nokia and its employees
will not pay or offer to pay bribes or illicit payments to government officials or
candidates, or other parties, in order to obtain or retain business. Nokia does not
provide financial support to political parties or other political groups.

Workplace Practices
Freedom of peaceful assembly and association as well as freedom of thought,
conscience and religion are respected in everyone's actions at Nokia. Freedom of
opinion and expression are very much in line with Nokia's open and straightforward
way of working and its corporate value, 'Respect for the individual.'

Nokia employees must respect and encourage Nokia Values at work, promoting
teamwork, individual responsibility, and the strength that comes from diversity.
Nokia will strive to pay fair compensation, and provide a safe and healthy workplace
for employees. Nokia is committed to equality of opportunity in all its employment
practices, policies and procedures. Job requirements fulfilled, no employee or
potential employee will, therefore, receive less favorable treatment due to their race,
creed, colour, nationality, ethnic origin, age, religion, gender, gender reassignment,
sexual orientation, marital status, connections with a national minority, opinion,
disability, membership or non-membership of a trade union. Nokia will continue to
invest in the personal and professional learning and growth of Nokia's employees.
Nokia will encourage its employees to lead balanced personal and professional lives.

Environment
Nokia’s environmental activities are based on life-cycle thinking. The goal is to
reduce environmental effects during our product life cycles. This is done by managing
our own operations and our supplier network, incorporating Design for Environment
(DfE) into our product development, processes and service design and supporting
sound End-of-life practices. 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, or
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the method of procurement or distribution is illegal. In marketing and other company

activities, Nokia will depict animals in a dignified manner.

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. 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.

Implementation
The compliance commitment in this Code extends to all matters, including decisions
relating to trade, investment, subcontracting, supplying, business development, and in
all other business and employment relationships. Nokia's approach to implementing
this Code of Conduct will be active, open and ethically sound. Although difficult
questions of interpretation may arise in specific instances, particularly regarding the
need to sensitively balance local customs and requirements with global standards and
guidelines, Nokia recognizes that the above commitment means that Nokia will do its
utmost to identify ethical, legal, environmental, employment, and human rights issues
and resolve matters consistent with this Code of Conduct.

To remain successful, Nokia respects and encourages teamwork and the strength that
comes from diversity. Working in a multicultural environment is considered to be an
advantage and privilege.

Equal opportunity is a key part of the Nokia way. Nokia invests in the personal and
professional learning of all its employees. Its target is to learn something every day
and to secure the continuous learning of the entire team. Nokia also considers the
balance of the personal and professional lives of its employees to be important.

Everyone at Nokia is encouraged to follow strict ethical rules in their own work
environment. Discrimination, for example, can sometimes be hard to detect.
Whenever a problem in the workplace is detected, it is tackled immediately.

CORPORATE SOCIAL RESPONSIBILITY

Corporate responsibility reflects the way in which companies impact on the world
around them; economically, socially, and environmentally.
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Corporate responsibility for Nokia means acknowledging and responding to the

impacts of our business on society and the environment. As market leader and a
global company, Nokia takes its responsibilities seriously. Sound company ethics
makes business sense by helping to minimize risk, ensuring legal compliance,
enhancing company efficiency and building reputation amongst stakeholders.

By conducting business in a responsible way, Nokia can make a significant

contribution to sustainable development, at the same time building a strong
foundation for economic growth." Nokia Chairman and CEO, Jorma Ollila Mobile
communications is now an established force for social and economic development.

Corporate responsibility for Nokia means :-

 acknowledging and responding to the impacts of our business on society and
the environment.
 As market leader and a global company, Nokia takes its responsibilities
seriously.
 Sound company ethics makes business sense by helping to minimize risk,
ensuring legal compliance, enhancing company efficiency and building
reputation amongst stakeholders.

Nokia believes that:-

 Economic, social and environmental responsibilities are not distinctly separate
issues. In addition to providing technology, products and services that have as
little environmental impact as possible.
 Nokia respects and promotes human rights and acts as a responsible member
of the society.
 Nokia sees ethical conduct and corporate citizenship issues as an integral part
of environmental thinking. This includes supporting charitable, educational,
human rights and community activities through donations and other resources.

• PARTICIPATION IN INDUSTRY
COOPERATION
Aiming to develop closer cooperation between businesses, governments and other
organizations concerned with the environment and sustainable development, Nokia
participates actively in association work both at national and international level.
Nokia cooperates in creating a framework that allows businesses to contribute
effectively to sustainable development, to demonstrate progress in environmental and
resource management and to share best practices.
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Membership in associations is a channel to contribute to the development of

legislative requirements and voluntary agreements. Nokia is e.g. a member of the
European Association of Consumer Electronic Manufactures (EACEM). It has also
participated in the pilot project of ECTEL for the take back of mobile phones. In
Finland, Nokia has a representative in an environmental working group under the Co-
federation of Finnish Industry and Employers. Nokia participated in a pilot project for
take back of electronic products arranged by the Federation of Finnish Electrical and
Electronics Industry during 1997 - 1998. This project has progressed to its second
phase to developing the take back scheme further. In addition, a number of individual
Nokia employees participate actively in various associations and forums within in the
industry.

• LIFE CYCLE THINKING

Life cycle thinking is a holistic approach to map a product’s environmental aspects.
The manufacturing phase is just one of the many stages the product goes through
during its life cycle. The product life cycle starts when raw materials are extracted
and ends with waste treatment. In every stage of the product life cycle there are
emissions causing impact on air, water or soil. 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.

• ENVIRONMENTAL POLICY
The commitment to continuous improvement in environmental issues is stated in
Nokia’s Environmental Policy, published in 1994. The line organizations of Nokia’s
business groups and divisions are in charge of implementing the policy.

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, open and ethically sound approach to
environmental
protection.

• The objective of Nokia’s environmental policy is sustainable development

inaccordance with the ICC (International Chamber of Commerce) business charter.
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To implement these, Nokia applies the following

principles:
• The environmental policy is a part of the general management process.

• Line organizations plan and implement the action programs by using environmental
specialists and the best available technology.

• The action programs are based on a thorough understanding of the environmental

impacts of a product throughout its life cycle.

• Minimizing the environmental impacts requires continuous efforts and follow-up of

the results; it is thereby a part of the total quality improvement process. Nokia uses
the international environmental management standard, ISO 14000 series, as
guidelines for environmental management. The results of environmental work are
reviewed on an annual basis, plans are updated and special goals are set where
needed.

Goal areas within Nokia’s environmental

management are :-
• Design for Environment is integrated into Nokia’s product development.

• Environmental management systems of all main Nokia production sites have to.
Meet the requirements of ISO 14001 by the end of year 2000.

• Environmental aspects are integrated into supply chain management.

• End-of-life practices are supported.

Corporate social responsibility involves:-

 Acknowledging the company’s range of opportunities to be realized and risks
to be minimized.
 Acting responsibly brings us improvements in risk management, legal
compliance, enhanced reputation and improvement in company efficiency
issues like productivity, quality and costs.
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 The Nokia brand is one of the most valuable in the world, so a good reputation
is vital in order to maintain our standing among employees, investors, network
operators and consumers.

Nokia believes that it makes business sense to look after the markets we operate in, to
anticipate risks, demonstrate company values, work at increasing employee
satisfaction, enhance corporate governance principles, protect the Nokia brand and
build a reputation for citizenship.

The most obvious link to Nokia’s strategy can be found in the strategic intent, where
"trusted brand" clearly demands a good reputation. But there are other areas where
corporate responsibility directly supports company strategy. The "license to do
business" begins with legal compliance and good practice, to which environmental
work and employee programs contribute. Increased mobility and new marketing
opportunities are served by nurturing diverse, innovative teams, catering for
accessibility in use of mobile phones, digital bridging work and including developing
countries in our market scope; innovative and high-quality products cannot be created
without attracting, retaining and motivating employees, and efficient supply chain
management; good reputation is helped by, among other things, community
involvement. Acting in a responsible way also facilitates extensive cooperation across
the industry and demonstrates the company values, corporate transparency and
responsiveness to stakeholder expectation.

Our future success demands responsible business. By acting responsibly in those

issues over which we have most influence, Nokia will make a positive difference to
society, while standing a better chance of achieving sustainable growth. In the long
run, as the World Council for Sustainable Business aptly puts it, "companies cannot
succeed in societies that fail".
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