The concept of "Sustainable development" originating from the UN Conference on Environment and Development (Rio de Janeiro, 1992), and the "Triple Bottom Line" are expressions of the requirement that trade and industry should be accountable not only financially, but also as regards the impact of business activities upon both the physical and the social environment. The figure below illustrates the elements embraced by the concept of sustainability.

The thinking behind sustainable development[!] has also been extended in recent years to include ethics and social community considerations as well as the working environment. The term Corporate Social Responsibility (CSR[!]) is increasingly used to express this all-embracing perspective. The figure below illustrates important elements of social responsibility or CSR.

The definition below embraces core areas of the general perception of what the term includes.

"Corporate Social Responsibility is the obligation of businesses to contribute to sustainable economic development in co-operation with employees, the local community and the rest of society in order to improve their quality of life."
(World Business Council for Social Development)

Why "social responsibility"?
Following the launching of Telenor on the Stock Exchange, the company's reputation has become more important than ever. "Everybody's" eyes are directed towards the core activities and the financial results being created in the company. In this context, the business's "social and physical footprint" has become an important factor in relation to the confidence which the market and society in general have in the company.

A number of well known companies have been exposed to damaging press coverage because various interested parties do not consider the companies' performance in these areas acceptable. There are also examples of how Norwegian businesses have shown insufficient awareness and knowledge in handling situations in other countries, for example regarding local culture, political conditions, environmental impact, etc., and many have earned a bad reputation as a result.

This kind of attention can have a negative impact on a company's reputation, development, stock market value and market position. Indexes have now been established, for example the Dow Jones Sustainability Index, in which companies are ranked both according to their environmental and social performance. Investors also attach increasing importance to this type of criteria when considering investments.

In order to reduce the risk of deteriorating public opinion and to counteract this risk, a number of companies have worked on the development of a strategy for social responsibility. Such strategies often include tools that will contribute to making CSR a normal business practice throughout their corporate structure. This may involve safeguarding the rights of their employees, contributing to the local community in the form of specific projects or expressly dissociating themselves from corruption and violations of human rights.

A questionable reputation now has the potential of being far more damaging than in the past. At the same time media interest in a company's community-related activities is increasing. It is therefore of crucial importance that Telenor should ensure that its activities both internationally and nationally maintain a high standard in relation to such areas as ethics, environmental considerations, human rights, corruption and other fields embraced by Telenor's social responsibility. Insufficient focus on CSR and sustainability will result in insufficient risk control for the company and for its shareholders.

The internationalisation of Telenor's activities has weakened the boundaries between what was previously considered to be national and international conditions. This means that the social, socio-economic and environmental consequences of the company's activities are expected to be handled equally at all points of presence. As a result of the increasing international consciousness regarding CSR, new standards are also being established, as we have experienced in connection with environmental work in pollution-prone industry. With the level of competition within the telecom industry in mind, both in relation to the market and to attracting the best employees, it is not in Telenor's interest to find itself in a backwater as far as this development is concerned.

The greatest achievement to gain from a serious commitment to CSR is not to avoid a negative reputation, but to create a positive one. Such commitment can bring a dimension to Telenor that will inspire the work force and strengthen the confidence in our company throughout society, while at the same time a serious CSR profile may provide many interesting commercial opportunities.

What does Telenor's "social responsibility" involve?
Telenor faces clear challenges in our endeavour to establish a visible and feasible CSR profile. A number of these challenges are universal, in the sense that they apply to a large extent to all companies with an international scope. Other challenges are specific to the telecom sector and to the Telenor Group in particular. The oil industry and clothing industry, for example, have different and perhaps more obvious challenges than Telenor and the telecommunications industry have.

Telenor's social responsibility involves first of all the need for a corporate-wide consciousness, meaning that every operation should be critically assessed according to CSR requirements that the company is committed to. This presupposes positive management in the direction of a more socially responsible profile and value-based objectives and standards that can permeate the whole corporate structure.

In order to ensure that this process is genuine, it is crucial that the corporate structure is involved in the development of such objectives and standards, and also that a dialogue is initiated with external stakeholders.

A CSR project group in Telenor has identified 10 sub-areas in the fields of ethics, social community relations and environmental consequences. These include both general and more specific challenges in the areas of ethical business conduct, corruption, human rights, working conditions, political conditions, cultural understanding, environmental impact and the consequences of our own products and services.

The table below presents a brief summary of those principal areas and sub-areas that have so far been identified as the most important in Telenor's enterprises in the perspective of ,our commitment to social responsibility/ CSR.

The Telenor Group's social responsibility
Principal areas	Sub-areas
Ethics	Business ethics
Social and community relationships (internally in Telenor and in the rest of society)	Employee policy and rights
	Working environment and HSE[!]
	Human rights
	Impact on local culture and tradition
	Corruption - prevention and counter-measures
	Political conditions and conflict areas
	Social consequences of our own products and services
Environmental consequences of our own activities and our own products	Resource use and consequences of our own activities
	Environmental consequences of our own products and services

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