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Corporate Business Principles (Bangladesh)

We are dedicated to following the best practices laid down by our parent company, Nokia Corporation. We have implemented the Corporate Governance Principles established by Nokia Corporation, covering four core areas:

Rights and responsibilities of shareholders Equitable treatment of shareholders Duties and responsibilities of the board of directors
Disclosure and transparency

Corporate Internal Audit


Recognizing the need to maintain transparency and verify the application of corporate standards, Nokia Bangladesh has established an internal audit department that monitors administrative and operational functions throughout the company. Thanks to its operations, we can be assured that adequate internal controls are in place, management information is reliable, resources are used effectively, and company assets are safeguarded.

Regulatory Authorities
(Source:
Nokia Corporate Business Principles Document, June 2007, Nokia Corporation, Public Affairs.)

National Legislation Recommendations

and

International

Nokia emphasizes that, as a minimum, its employees must comply with the laws applicable in the countries in which it operates. Nokia ensures that the highest standards of responsible conduct are met throughout the organization, by complying in a responsible way with the Nokia Corporate Business Principles, which guide Company activities and relationships worldwide in each sector of business interest. Nokia supports and publicly advocates the United Nations Global Compact and its ten principles, an initiative of the United Nations SecretaryGeneral. The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards and the environment. Nokia recognizes that increasing globalization is leading to the development of more and more international recommendations. Although, as a general rule, these recommendations are addressed to governments, they inevitably impact on business practices. Among others, Nokia has incorpo-

rated relevant International Labor Organization Conventions, and the International (WHO) Code of Marketing of Breast-milk Substitutes into its policies. Nokia endorses relevant commitments and recommendations for voluntary self-regulation issued by competent sectoral organizations, provided they have been developed in full consultation with the parties concerned. These include the International Chamber of Commerce (ICC) Business Charter for Sustainable Development. Also, Nokia uses the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, approved in June 2005, as a reference point for its Corporate Business Principles.

Regulatory Authorities within Bangladesh


Nokia is in constant contact with the following three main government organizations whilst operating in Bangladesh: While representatives of Nokia were unable to give any specific details on the direct influence of any of these organizations, we can see that they have obvious implications on local operations of Nokia as an MNC operating within Bangladesh.

1. National Bank of Bangladesh (NBB)


National Bank of Bangladesh is responsible for formulating and conducting monetary and credit policy in a manner consistent with the Governments targets for growth and inflation and the recommendations of the Monetary and Fiscal Policies Co-ordination Board with respect to macroeconomic policy objectives. The basic objective underlying its functions is two-fold i.e. the maintenance of monetary stability, thereby leading towards the stability in the domestic prices, as well as the promotion of economic growth. The "Rules of Business" for NBFIs became effective since the day NBFIs came under National Banks jurisdiction. As from January, 1997, modarbas and leasing companies, which are also specialized type of NBFIs, are being regulated/supervised by the Securities and Exchange Commission (SECP), rather than the National Bank of Bangladesh. As the custodian of countrys external reserves, the National Bank is also responsible for the management of the foreign exchange reserves. The task is being performed by an Investment Committee which, after taking into consideration the overall level of reserves, maturities and payment obligations, takes decision to make investment of surplus funds in such a manner that ensures liquidity of funds as well as maximizes the earnings. These reserves are also being used for intervention in the foreign exchange market.

2. Bangladesh Chamber of Commerce & Industry


The BCCI serves as a bridge between the private sector and the Government. It plays an important role in policy formulation by maintaining a

constant interaction with the relevant authorities in both the Government and businesses.

3. Securities and Exchange Commission of Bangladesh (SECB)


The SECB is responsible for providing the rules regulations, policies and guidelines for MNCs, SMEs and all other businesses operating within the boundaries of Bangladesh. The SECB is responsible for promoting Corporate Social Responsibility in Bangladesh and Regulation, Supervision and Performance in Corporate Governance. The Nokia officials who were interviewed for this purpose mentioned that the policies that Nokia is following are in accordance to the rules National by the legal requirements of the Government of Bangladesh.

FINANCIALS

Figures International

STRATEGIES FOR INTERNATIONAL BUSINESS


OPERATIONS

PROBLEMS/OPPORTUNITIES
Problems:
As such, there seems to be no problem that Nokia is facing in almost all zones it is operating in, including The Asia, Oceana and Australia (AOA) region including Bangladesh. Also, local competition, although high, provides little in the way of taking away profits from Nokia. There is constant market growth and potential in the market for future growth. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

Growth in Key markets driven by:


The strength of the Nokia Brands Clear priorities for innovations Above average growth with top customers & Discounters

Opportunities:

AOA: growth opportunity Performance is on track Potential for continued growth is promising Aligned organization and portfolio with a vision and a plan Strong management with local expertise

Direction for 2008


Focus on growing business Focus on delivering return on investment Focus on profitable growth