Kestävän kehityksen etiikka tietoliikennealan näkökulmasta Pekka Isosomppi Director, Social Regulation Nokia

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1 Kestävän kehityksen etiikka tietoliikennealan näkökulmasta Pekka Isosomppi Director, Social Regulation Nokia Nokia

2 There is one and only one social responsibility for business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game Milton Friedman, from Capitalism and Freedom, 1962 What are the rules of the game? Nokia

3 Towards the 5 Billion Milestone Mobile phone subscriptions globally, millions Global penetration >50% 5 billion in billion in billion in Source: Nokia e Nokia

4 Future growth in mobile communications will come primarily from lower-income segments Share of population Example income distribution Population without mobile Penetration now Expected penetration High Upper mid Mid Low Very low Income classes Everyday, there is over 1.8 million new mobile subscribers majority of this growth coming from emerging markets¹. In addition to voice services, also mobile solutions such as finance, health and education ramp-up quick in emerging markets where the barrier of an existing solution does not exist. ¹Source: Informa, WSIC+ September 2008 Company Confidential

5 New Opportunities There were over 400 m users worldwide accessing the internet services via a mobile (14% cellular user penetration) (Dec 2008). Mobile internet user penetration increased significantly across each region in Source: Strategy Analytics (Jan 2009)

6 The world as we know it is changing Financial crisis aftermath Economic growth leveling Increasing government intervention Scarce financial resources Shift of economic power balance GDP and inequality of wealth distribution keeps growing Rising power of BRIC+ countries Global topics: health, security and education booming in emerging markets hand-in-hand with internet Climate change accelerates Environmental issues have increasing impact on societies and political systems ICT seen as a solution to climate change challenges Company Confidential

7 Nokia s business case Nokia is the world s largest manufacturer of mobile devices We are the world s 5 th most valuable brand Of those to whom much is given, much is required John F. Kennedy Nokia

8 Mobility and development Connectivity is no longer a privilege; it is a fundamental human right and a key enabler of social and economic activity Mobility reaches more than 4 billion people worldwide However, still many challenges: income, physical and the knowledge barriers Overcoming these barriers is not only crucial to ensuring that no one is left behind but it also makes good business sense for companies and economies looking to grow Nokia

9 Impact Mobile communications can contribute per cent of the GDP growth for an economy (McKinsey & Company 2006) Impact in a developing country can be even more profound: A London Business School study shows that an increase of 10% in the mobile coverage will have a positive effect of 0.6% on the country s GDP Individual level impact is often even more dramatic New income opportunities, education, social and political participation, equality of opportunity Social innovations benefit society as a whole this includes the company operating in the society in question The use of mobile technology in the public sector still in its infancy; barriers mainly in the processes Nokia

10 Village Phone Microfinancing enables individuals to buy and rent a mobile phone in remote and rural communities Nokia

11 Design for all Nokia is committed to pursuing accessible solutions for everyone As an industry leader in product and user-interface design, Nokia is proud to respond to the diverse needs of a global marketplace Connecting People is our business Nokia

12 Full impact of mobility is yet to be discovered There is plenty of macroeconomic data, anecdotal evidence and common sense to suggest that mobility benefits societies in multiple ways Many countries and areas bypass the fixed communications stage and go directly mobile, because it is more convenient, cost-effective and faster Yet the full consequences of mobility are yet to be discovered Nokia

13 Our effect on people and the planet At Nokia, Corporate Responsibility is about managing our business in a sustainable way, accounting for how our activities affect people and the planet Four core principles: Minimize harm Maximize benefits Be accountable and responsive to key stakeholders Support strong financial results Nokia

14 Demand supply network management An efficient demand-supply network is a significant competitive advantage for Nokia Environmental, ethical, health and safety, and labor practices are not separate issues, but embedded within all of our sourcing processes Clear expectations Nokia Supplier Requirements Support assessments & development programs Industry driving improvements through GeSI Nokia

15 Privacy the services challenge Privacy has always been a central issue in the telecommunications industry The industry is transforming fast, with the convergence of telecommunications and the internet creating new opportunities and challenges for the industry and policy makers Nokia

16 A shared responsibility Climate change has an impact on every business, posing challenges and opportunities Increasing interest in business responsibility in human rights Corporate Responsibility aligns with business strategy Reaching the bottom of the pyramid: Poverty alleviation as a business strategy Corporate Responsibility issues become normal operational items Nokia