Ethics

In 2004, ethics was high on the agenda at Telenor. The implementation of the Group's revised Codes of Conduct was completed at all consolidated companies in Norway, as well as in the international portfolio, and a new training programme in ethics was introduced. Our environmental work comprised the project Energy focus 2004, as well as the compilation of new information on radiation from antennas and mobile handsets. These were among our key activities during the year. New products were introduced, with a special focus on web safety, including a new child pornography filter, launched in cooperation with NEW KRIPOS.

Here is a brief presentation of the most important events in 2004.

Telenors Codes of Conduct
Telenor's Codes of Conduct cover a wide range of aspects that are important to ensure good business ethics in all parts of the Group's activities. Relevant areas are: confidentiality, discrimination, corruption and conflicts of interest.

Telenor's Codes of Conduct have been adopted by Telenor's Board of Directors and apply to Board members, managers, employees, hired staff and anyone acting on behalf of Telenor. The Codes are applicable at all companies of which Telenor has operational control, both in Norway and internationally. The process of implementing the Codes of Conduct at companies outside Norway was completed in 2004. Failure to comply with the Codes of Conduct will result in sanctions adapted to suit the nature and extent of the violation in question. Telenor's Compliance Officer and the Internal Audit function will provide follow-up to ensure full compliance with the Codes of Conduct. The Codes of Conduct are available on: www.telenor.com/csr/

Ethical training programme
Telenor has developed a mandatory training programme in ethics for all managers and employees. The training programme was implemented at Telenor's Nordic companies during the final quarter of 2004, and will be implemented at the Group's other international companies during the first quarter of 2005.

The training programme is designed as an interactive e-learning programme whereby individual employees are confronted with a number of ethical dilemmas. The dilemmas are presented as video inquiries received from fictitious employees around the world being faced with an ethical challenge in their work situation which they need help resolving. The five-episode programme requires participants to provide advice to the best of their ability, assisted by the Codes of Conduct. The programme is an attempt to exemplify business ethics in practice, thereby helping individuals understand the Codes of Conduct. The dilemmas are of varying degrees of difficulty and focus on difficult grey areas that employees are likely to encounter in their daily work. A recurring element in the feedback provided throughout the programme is that employees should always seek help and advice in difficult situations, and always report any irregularities.