social report - Norsk Tipping

Transcription

s o c i a l r e p ort
2007
S o c i a l r e p o rt
2007
2007
social report
Contents
04 A changing money game market
06 Events of 2007
08 Our contribution to society
10 Social responsibility
1 4 60 years of profits
1 6 Our customers
22 Responsible gaming
28 Secure gaming
32 New gaming terminals
34 A positive social participant
38 Our employees
44 Our retailers
48 Our suppliers
50 The environment
54 Important jobs in 2008
58 Assurance statement from DNV
for 60 years
we have returned our whole profit to society
Our social remit
Norske Tipping AS
NO-2325 Hamar, Norway
Tel: +47 62 51 40 00
Fax: +47 62 52 71 52
Org no: NO 825 836 613 MVA
www.norsk-tipping.no
Avt. nr. 241 641
Our vision is that “we give the dream a chance. This refers not only to the
roughly 1.5 million Norwegians who buy excitement from us every week and
dream about a big win, but also to the thousands of children, young people
and adults who give their dreams a chance in a mini-pitch, a sports centre or a
cultural arena.
This illustrates the dual nature of our social remit – offering exciting and
attractive games within responsible limits, while simultaneously creating major value for sport and culture. We are the Norwegian government’s most important instrument for ensuring that money games are conducted in responsible and regulated forms. We will help to channel people’s desire for gaming
into games which do not create social problems.
That represents a demanding job at a time when new technology is making the whole world a single gaming market – in which responsibility is not
always the guiding principle.
Contact social report: [email protected] • Design and production: Creo Communication • Photos: Dag Thorenfeldt
• English translation: Rolf E Gooderham • Printer: RK Grafisk
2007
2007
social report
2007
A changing money game market
Games played both for money and for entertainment are experiencing strong growth and
major changes internationally. New technology promises to turn the whole world into a single
market. These developments demand that we are aggressive, creative and responsible when
performing our important social task in coming years.
2007
Responsibility and social benefit
“Channelling” is a term used when talking
about the implementation of government
policy on money games. It means directing
the desire of Norwegians for gaming towards
the country’s legal money games. Our business is founded on responsibility and social
benefit, and our entire profit is paid to sport
and culture. By contrast, profits from internet games go to their owners. Communicating this difference to customers is important
in order to build support for the role we have
been assigned by the government.
Responsible gaming is a competitive factor
Responsibility runs like a red thread throughout this social report, and we have commissioned Det Norske Veritas to document that
responsibility is not just a fine word for us.
The subject of problem gaming attracted
little attention a few years ago. That has
now changed completely. Synovate’s survey
for 2007 (see page 22) shows that more
Norwegians than before regard gaming as a
controversial activity. In such circumstances,
responsible gaming provision and enhanced
corporate social responsibility (CSR) become
very important competitive factors. Through
a strong emphasis on responsible gaming
provision, we will sustain a broad appeal with
the Norwegian public in coming years.
New technology – new opportunities
Developments and competition mean that
we must offer new games while making it
possible to play via new channels, such as
mobile phones. A clear trend can namely be
seen towards offering games to new groups
and via many channels. But the common
feature of all our games is that they must not
encourage compulsive gaming. Technological
developments are certainly not without their
problems. That has also given us the opportunity to create tools which can help players
take responsibility for their own gaming
behaviour and set limits on their own playing.
Technology has also come up with instruments able to identify aspects of a game
which can create problem behaviour. We will
be adopting such tools.
Competition
We launched Keno in 2007 as our first new
game since 2001. Development is under way
to provide new offerings which can make our
range more attractive and thereby support
Norwegian sport, culture and – from next
year – other voluntary organisations in fulfilling their social roles. An important recognition for us as a state-owned gaming company
is that our exclusive right to conduct money
games will not be worth much if we fail to
respond to the challenges presented by the
many large companies fighting us over our
customers. This social report also indicates
how we will manage that job.
2007
social report
Events of 2007
A lot went in our favour during the year. According to a
recent survey, the number of
compulsive gamers has declined by 45 000. The government’s decision to give us
an exclusive right to operate
gaming machines was found
to accord with the European
Economic Area agreement,
and our new Keno game was
a success.
Norwegian policy accepted by Efta Court
The Efta Court delivered a judgement on 14
March which stated that the government
had not contravened the EEA agreement by
giving us an exclusive right to operate gaming machines for money. This represents an
acceptance of the view that such exclusive
rights are a suitable regulatory tool for combating the social problems created by the
private gaming machine market. Revenues
from these machines had grown over a few
years to three times the size of our total
turnover. The Norwegian Supreme Court subsequently confirmed the Efta judgement.
Ban on private gaming machines
A ban on using banknotes in private gamine machines was introduced in 2006. This
resulted in a 40 per cent decline in calls to
our helpline for compulsive gamers. The
machines were prohibited from 1 July 1007,
which further reduced calls to the helpline.
We were asked by the Ministry of Culture and
Church Affairs to launch a project for replacing the machines with new gaming terminals
designed to avoid social problems. See page 32.
Decline in compulsive gamers
We commissioned Synovate and the Norwegian National Centre for Addiction Issues
to carry out a survey of gaming habits and
compulsive gaming in Norway. With 3 000
respondents, this followed up a similar poll
in 2005 and showed that the number of
compulsive gamers had declined by 45 000
people. See page 22.
The survey also found that 0.4 per cent of
the Norwegian population, or 15 000 people,
play so much on the internet that it affects
their education or work, that others have reacted to their behaviour, that they have been
forced to lie and that they themselves think
they devote too much time to web games.
Most of them are young men under the age
of 24. Twenty per cent of on-line gamers play
more than four times a day.
Chief executive resigned
Our long-serving president and CEO, Reidar
Nordby Jr, resigned in November. This followed revelations that he had received
benefits from the company in the form of
gardening work on his private property
which exceeded the level agreed with the
board. He accordingly chose to resign.
in a report which we have submitted to the
Ministry of Culture and Church Affairs. On
the basis of this review, the board has tightened up our routines and controls.
Turnover topped NOK 10 billion
We exceeded an annual turnover of NOK 10
billion for the first time on 18 December. All
our games achieved good growth during
2007.
Keno introduced
The odds-based number game Keno was
launched in November. This is our first new
game since 2000. A total of 185 000 customers had played up to 31 December. Turnover
was about NOK 11 million per week, with
daily draws on the Norwegian Broadcasting
Corporation (NRK).
Vibeke Engskaug won NOK 1 million and became our first
Keno millionaire
Proposal to halt payment processing
for illegal web games
The government presented a proposal in
November to ban processing of payments to
and from gaming companies which are not
licensed to offer games in Norway. This was
justified on the grounds that web games are
undermining Norwegian gaming policy. The
proposal was circulated for consultation with
a deadline of 13 February 2008 for responses.
A Bill will then be prepared for submission
to the Storting (parliament) in the spring of
2008.
In the wake of this affair, we commissioned
consultants Ernst & Young to review our routines. The results of this work are presented
2007
2007
social report
How we created
the value
How we distributed
the value
Games revenue
Customers wagered the following amount
on our games:
The value created was distributed to national
and local government, employees, the company
and retailers, but by far the largest share went
to socially beneficial purposes.
10 388.4
Our total value creation was
NOK 4 049.4 million
Other revenue
Excluding pure games income, our other
revenue and financial income came to:
247.8
Prizes
More than half the games revenue went to
winners as prizes:
-5 510.4
Consumption of goods and services
In order to offer customers exciting games and
develop new ones, we spent the following on
goods and services, development and other
items:
1 076.4
Value created
We thereby created a total value of:
4 049.4
Value distributed to national and local
government
Total income tax deductions for employees, payroll tax and employer’s contributions to pension
funds paid to national and local government
amounted to:
95.6
Value distributed to employees
Total pay and pensions (excluding tax deductions) for employees amounted to:
134,1
Value distributed to retailers
Our retailers – almost 4 000 in number –
received commissions amounting to:
720.1
Value retained by us
To permit the continued development of our
company and our products, the following allocation was made to the investment fund:
219,0
Value distributed to beneficial purposes
By far the largest portion of the created value
went to socially beneficial purposes, and totalled:
All figures in NOK millr
2 880.6
2007
2007
social report
Corporate social responsibility
– a systematic and long-term job
Responsibility has been a
guiding principle for our
business since it was established in 1948. We must make
money and create value for
society, but cannot be indifferent to the way we do this.
Society has great expectations of us, which have been
reinforced by the attention
given to problem gaming in
recent years. Our room for
manoeuvre is heavily influenced by the frame conditions set for our business by
the government. Our legitimacy will always depend on
people knowing what we
stand for and seeing the
value of our contribution.
Our approach
Work on CSR forms an integral part of our
business, and is rooted in our core values,
vision and overall strategies.
Our core values are:
• interaction – acting for mutual
benefit, a commitment to inter disciplinary processes, knowledge sharing and teambuilding
• commitment – encouraging enthusi asm and a proprietary attitude, pro viding good role models, enjoying
work, and caring for and about each
other
• courage – accepting criticism and
new ideas, daring to make choices
and decisions, challenging and del
egating responsibility and authority,
and willingness to take risks
• performance – creating results and
exploiting the organisation’s full
potential
For us, CSR involves a commitment “to conduct our business in a fashion which meets or
exceeds the ethical, commercial, legal, social
and environmental expectations which society
has of us”. The board and chief executives are
ultimately responsible for development of and
compliance with rules and guidelines.
Our work on CSR is a continuous process. We
take a long-term approach, and our efforts are
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purposeful and systematic. They rest on the
following processes:
1. identify requirements and expectations
from our stakeholders
2. develop targets
3. revise and update strategies and action
plans for CSR
4. entrench, develop and implement measures
5. measure and report through an annual social
report
6. evaluate work on CSR on the basis of feed
back from our stakeholders and verification
of our social report.
We have a committee for CSR, with representatives from all our business areas. This body
advises the whole organisation. It develops
plans and strategies, and entrenches work on
CSR.
Since our creation in 1948, we have made a total
profit
NOK 78 billion
of more than
Our action plan in this area is based on specific
measures and challenges, and responsibility
for executing it rests with our various business
areas. Central responsibility for coordination
rests with the department for information and
external relations.
Entrenchment with our management is secured through regular meetings with the chief
executive, reporting to our senior management team and participation in our strategy
and planning processes. Decentralising operational work on CSR requires the establishment of clear performance parameters for the
business in this area. That work has begun, and
will be completed during 2008.
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2007
2007
Values base and ethical platform
We have established principles for our work
on CSR (see page 13). We also observe our
own code and the government’s guidelines
for marketing, as well as in-house guidelines
in a number of areas. In addition, we have
undertaken to comply with the guidelines
for responsible gaming provision provided
by the World Lottery Association (WLA)
and the European Lotteries (EL).
Dialogue with stakeholders
Dialogue with those who are affected by or
affect our business is fundamental for our
work on CSR. In this dialogue, we draw on
such inputs as regular surveys which identify
what society needs, demands and expects
of us as a responsible games provider. The
goal is to secure an objective picture of the
issues we face, and apply this knowledge to
our further development.
Dialogue in 2007
CUSTOMERS
Our responsibility to customers is about offering attractive games in a responsible way.
Regular customer satisfaction surveys give
us valuable feedback on the job we do. Read
more on page 19.
RETAILERS AND SUPPLIERS
The retailers are the cornerstone of our
distribution system, and our face to many
thousands of customers every day. We
conduct regular surveys of retailer satisfaction, which provide us with feedback about
our performance as a service provider. Read
more on page 46.
We have worked to reduce our total procurement costs. A procurement policy has
been developed, and we pay close attention
to complying with the regulations on public
procurement. Read more on page 48.
social report
EMPLOYEES
Communication with our employees takes
place continuously through job reviews,
departmental and town meetings, employee
surveys, our intranet and our house journal.
Read more on page 39.
RESPONSIBLE GAMING
We are in close dialogue with a number of
organisations and advisers/researchers in
Norway and abroad who provide valuable
input about society’s expectations of us and
about our opportunities for fulfilling these.
Read more on page 22.
All dialogue and relevant surveys from 2007
have been reviewed. The factual data have
been used as the basis for prioritising stakeholders and their expectations, and form the
foundation for our 2008 action plan on CSR.
Reporting and move to a new standard
We have elected to publish an annual social
report which describes how we relate to our
various stakeholders. We will now convert
to reporting in accordance with the Global
Reporting Initiative (GRI), which consists of
a selection of principles plus recommendations for a reporting standard. The latter
aims to establish a global norm for sustainability reporting. This means that we report
in terms of a triple bottom line – financial,
environmental and CSR. The goals have been
discussed, and the measures adopted are
entrenched in and followed up by our business areas.
We have opted to let an external assessor
review this report before publication. In our
view, this enhances the document’s credibility, objectivity and quality. It also provides
us with an important tool for continuous
improvement of processes leading up to
reporting.
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This report is divided into three sections.
The first describes the society in which we
operate and our work on CSR, and provides
an overview of the principles and guidelines
which govern our work. Part two reports on
the basis of financial, CSR and environmental goals and measures, broken down by our
stakeholders. The third section contains a
GRI index and an overview of our key activities in 2008.
Experience in 2007
Some goals and measures we aimed to
implement were not achieved. But processes
have been initiated, and we are working to
fulfil these ambitions in the longer term.
In other areas, we did more than originally
planned and have become involved in new
areas. It transpires that, even if we choose
to concentrate on specific targets, the
ability to change priorities along the way
and seize new opportunities as they arise is
important.
This new report is an extension of our binding long-term work on CSR. These efforts
will enhance our ability to attain overall
commercial goals.
What we did in 2007
What we plan to do in 2008
•
•
•
•
•
•
•
•
•
•
•
Began work on incorporating CSR in our
functional and work descriptions
Held capability meetings for the management team and employees to entrench
our responsibility platform. This work was
pursued continuously throughout the year
Initiated the development of educational
concepts on CSR and responsible gaming
provision
Initiated the development of performance
parameters for all bottom lines
Adopted the GRI as a new standard for
social reporting
Pursued dialogue with our stakeholders
and worked to entrench our role in society
Continue work on establishing systems
and processes for an active dialogue with
our various stakeholders. Investigate
whether they receive relevant information
and can exert influence. This will be
measured in our annual social accounting
Update and entrench the principles for
CSR and make them available to our
employees
Continue to incorporate and entrench work on CSR in our business operations
Integrate CSR and responsible gaming
provision in our management and
reporting systems
Establish our social reporting within the
GRI standard and self-defined parameters.
Set clear targets which specify responsible gaming provision
2007
Commitments in many areas
Work on CSR involves a number of
goals and commitments, including:
• responsible product development
• safe and secure game management
• prevention of problem gaming
• creating predictable revenues for
good causes
• responsible marketing
• responsible adoption of new
technology
• efficient procurement
• environmental operation
• being a good employer
Our customers
Players
Winners
Players at risk
Our world
Government
Society
The environment
Beneficiaries
Media
Interest groupsr
Our organisation
Employees
Unions
Our partners
Retailers
Suppliers
Our principles for CSR
•
•
•
•
•
•
•
•
•
•
We will conduct our business in a manner which fulfils or exceeds the
environmental, ethical, commercial and social expectations which society
has of us
We will base our operations on responsibility, integrity and openness
We will listen to society at large and seek to balance the interests of different groups in a way which secures a long-term perspective and legitimacy
We will satisfy customer needs for entertainment and excitement within
a secure and socially responsible framework.
We will contribute actively to combating potentially undesirable aspects
of our games
We will offer our employees a good and safe working environment, where
consideration for each member of staff occupies a central place
Our relationships with suppliers and partners will be based on honesty,
integrity and predictability over mutual requirements and expectations
We will act responsibly and cautiously towards the environment
We will develop our operations within a socially responsible framework in
order to secure stable long-term funding for beneficiaries
We will have an open social reporting and communication
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2007
social report
Gaming enjoyment builds society
Our whole profit is devoted every year to socially beneficial activities in Norway. It would
hardly be possible to find a sports facility in the country which has not been helped in this
way, while a large share of the available funds is earmarked for various cultural activities.
Sporting and cultural purposes currently
receive an equal share of our profits. We are
distributing NOK 1 250 million to each category this year. The division is determined on
an annual basis by the government.
In addition, NOK 219 million from the Extra
game is distributed by the Norwegian Foundation for Health and Rehabilitation (SHR).
Measures financed in this way included 88
PhD students in 2007.
NOK 78 billion in 60 years
Ever since we opened for business in 1948,
the idea has been that the profit from our
operations would be channelled directly
back to the Norwegian people. During our 60
years of activity, we have returned more than
NOK 78 billion (in today’s value) to various
purposes.
Sport and research initially benefited from
our profits through the distribution formula.
The latter has been amended by the Storting
on several occasions over the years, and will
be changed again in 2009 to include voluntary groups and organisations. Sport will
then receive 45.5 per cent, culture 36.5 per
cent and socially beneficial and humanitarian
organisations 18 per cent, after up to 0.5 per
cent of our total profit is applied to combating problem gaming.
Sport
Norway is a small nation, but lies among the
world’s best in many sports. This partly reflects a conscious commitment to both elite
and mass participation sport, good sporting facilities, a huge voluntary commitment
and a good financial base. The last of these
derives to a great extent from our profits.
Every time a Norwegian does well in sport,
our players know that they have contributed
a little to this special moment.
About NOK 700 million was devoted in 2007
to building sports centres. Funds were also
allocated to various sports at both elite and
mass participation levels. Norwegian antidoping efforts received more than NOK 24
million in 2007 (see www.antidoping.no).
The introduction of a “grassroots share” was
announced in the White Paper on the voluntary sector. The government wants participants in our games to be able to decide that
five per cent of their stake will go directly to
a local club team, society, organisation or the
like. This scheme will be initiated once a register of cultural associations and voluntary
groups and societies has been created. We
are working on the technical solutions.
Culture
That part of our profit devoted to cultural purposes is distributed partly over the
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central government budget and partly to
designated cultural measures. This selection is made by the ministry. The following
measures receive earmarked funds: the Cultural Schoolbag, cultural buildings and the
Volunteer Fund.
The last of these is a grant scheme aimed
at local cultural activities among children
and young people. This pot totals NOK 155
million, with virtually all the money going
to people below 26 years of age. Since the
scheme started, some 8 000 amateur groups
have been among the recipients.
NOK 180 million has been provided for the
Cultural Schoolbag. This aims to expand
cultural provision in primary and secondary
schools in everything from theatre and dance
to music, so that the children themselves
can participate actively in various cultural
projects. A pilot project will also be conducted in the further education sector to see
whether it should be included in the Cultural
Schoolbag scheme.
NOK 1 250 billion of the 2007 profit goes to
sport
and NOK 1 250 billion to
culture
Funds for cultural buildings provide grants for
the construction of cultural centres as well
as regional meeting places and arenas for
culture. This item totals NOK 125 million.
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2007
2007
social report
2007
Best for positive customer experiences
1.8 million
player card
Norwegians have a
Best for positive customer experiences
About 1.5 million Norwegians participate in one or more of our games every week, and
1.1 million are registered players. This makes us by far the largest provider of money games
in Norway. Our goal is to be among the best in the country for creating positive customer
experiences. Gaming is, and should be, an enjoyable experience in everyday life. We want
our customers to have a healthy attitude to money games, and will strike a good balance
between gaming and CSR.
More competition and smaller player base
Increased competition from gaming operators who are not permitted to operate in
Norway presents us with a particular challenge. Their Norwegian turnover increased
by NOK 1.7 billion in 2007, or more than 19
per cent. Our other challenge is the general
decrease in the player base for our traditional games. This means that a steadily
declining proportion of the population is
buying our products. However, the overall
picture conceals variations. Viking Lotto,
Oddsen and Flax increased their player base
somewhat, but not sufficiently to offset the
decline for Lotto, Extra and Joker. However,
the launch of Keno helped to add about 50
000 people to the total player base and
thereby restore it to the 2005 level. The
overall player base declined by 80 000 from
2006 to 2007.
The trend of recent years, particularly in
2007, makes it clear that the player base
can only be expanded through a constant
renewal of existing products and the launch
of new games which appeal to new target
groups. The goal is to persuade people who
currently play with actors operating outside
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17
Norwegian regulation to turn to a range
of attractive and responsible games we
provide.
Big renewal in 2007
Despite the decline in the player base, we
enjoyed an increase in turnover during 2007
for all our games. This largely reflected the
renewal of the existing range and improved
availability through more sales channels.
We introduced a new game – Keno – in
November. This is a daily odds-based
number game, with draws on NRK. The
player determines how many numbers they
want to wager on, and what the row price
should be. The more the numbers and the
higher the row price the player wagers on,
the higher the prize if the numbers come up.
Player cards
A new-generation player card was launched
in October 2005. Providing an electronic ID,
this meets our requirements and those of
our customers for greater security, simpler
prize management, greater flexibility and
improved control. By January 2008, we had
almost 1.8 million customers with player
2007
social report
cards. About 90.5 per cent of all our games
were played in registered mode during
2007. That puts us in first place worldwide
for registered play. The figure also includes
Flax, which can only be played unregistered.
We are going a step further in 2008 with
plans to require that all our games other
than Flax are played in registered mode.
The player card opens a number of opportunities for our customers. An identity
check conducted when the card is issued
ensures that we have correct information
about the player. And registered games will
automatically enforce the 18-year age limit
for Oddsen.
Registered gaming will also help to prevent
money laundering, because players must
identify who they are.
Customer programme
We work continuously through our customer programme to create and maintain good
relations with players. This programme
involves following up players with player
cards, based on our knowledge of customer
behaviour – such as information on customer status and gaming behaviour. We want to
provide customers with the right information at the right time and through relevant
communication channels. A fundamental
aspect of the programme is that customers consent to inclusion. We communicated
with customers in 2007 via newsletters sent
by e-mail and via mobile phones.
Winner follow-up
Everyone who wins more than NOK 2 million
is offered free financial advice and guidance
by external advisors to help them tackle
their new financial position. That gives them
a better basis for making the right financial
choices. A total of 261 people won more
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than NOK 2 million in 2007, and guidance
was provided to 109 of them.
Advertising and marketing
We are a big advertiser in Norway. After
some years of reduced spending on marketing, we restored our 2007 advertising
budget to the 2004 level. That increase
reflected the need to provide information
and market support for renewals, changes
and campaigns related to the games and
for the introduction of Keno. It should be
noted in this context that Norway’s overall
advertising market expanded by 46 per cent
from 2003 to 2007, while our growth of
about three per cent over the same period
was much weaker. This means that we have
become less visible in the overall advertising
picture.
Marketing is necessary for our ability to
channel money game activities by Norwegian players into gaming areas which build
on responsibility. Our advertising spend
amounts to roughly 1.8 per cent of our
turnover – in other words, a relatively small
proportion compared with other large buyers in the Norwegian advertising market.
We have a big responsibility for informing
the players who use our games and products. This applies to details of jackpots, for
instance, and to other conditions relating to
the games.
The Ministry of Culture and Church Affairs
has developed guidelines for marketing
state-run games. These are supplemented
by our own code of practice.
Comments by the Gaming Board
The Norwegian Gaming Board is responsible
for supervising that our marketing complies
with the regulations. Its report is consid-
ered by the Ministry of Culture and Church
Affairs, which concluded that our marketing
for the first half of 2007 was by and large
conducted in a satisfactory manner. However, it noted that the Gaming Board’s report
specified that we “on a number of occasions
have failed to explain the probability of winning specific prize payouts highlighted in
the marketing”. The board also commented
that some of our advertisements failed to
show the date for final payment of specific
prizes.
plaining the probability of winning specific
prizes. With effect from January 2008, we
announce on the radio only that a jackpot
exists and say nothing about its size.
Leaving out probability information in
certain communication channels reflects a
failure either of our in-house routines or of
radio announcements relating to jackpots in
reporting on the probability of winning and
the final date for paying a jackpot.
Although radio announcements have lacked
the required information about the probability of winning specific prizes, we would
emphasise that these details have been provided in other media. In our view, therefore,
players have had good overall access to such
information in virtually all campaigns. We
implemented a number of measures in 2007
to ensure that marketing through different
media channels complied with the regulations. Particular attention was paid to ex-
Our advertising films have often been
among the most popular in Norway. We
received two Norwegian Silverfish awards
for the month’s best advertising film in
2007, relating to Flax and Keno respectively.
Advertising films for Lotto and Joker have
also been well received.
Auditing and guidelines
We plan to review our marketing code in
2008. This supplements and amplifies the
government’s guidelines for marketing
state-controlled money games adapted to
new media channels and communication
expressions.
Measuring customer satisfaction
The Norwegian Customer Satisfaction
Barometer measures customer and retailer
satisfaction with us twice a year. Similarly,
we measure satisfaction among our users on the basis of the customer service
experience (CSE). The results for 2007 are
presented below.
If we look solely at the CSE, the survey
Customer satisfaction (CS) with Norsk Tipping
Group
Retailer players
Web players
CSE
CS 1st half 07
68
66
78
CS 2nd half 07
67
68
84
Targe
70
70
80
(80-100 = Meget fornøyd. 70-79 = Fornøyd. 60-69 = Likegyldig <60 = Misfornøyd
19
CS 06
63,1
66,2
82,5
2007
shows that players and retailers were very
satisfied with what they got.
The figures show that we failed to hit our
targets for the other performance criteria.
At the same time, the results are better
across the board than in 2006.
2007
social report
Other facts about customers, market and games
2006*
2007*
Total players (2007 shows registered players)
2 430 443 1 679 168
Average stake per player per week (NOK)107107
Average stake per player per year (NOK)3 958
5 596
Total number of prizes paid29 904 652
Number of prizes paid per week (average)
81 930
Total value of prizes paid (NOK)
5 438 911 201
Value of prizes paid per day (NOK) (average) Abt 14 000 00014 901 126
Number winning NOK 1 million or more324333
Share of registered players by turnover
88.2%90,45%
Average number of players per week (registered plus estimated unregistered)1 073 790
Average number of players per day (registered plus estimated unregistered)330 000
Calls answered within 20 seconds by customer service (share)
71.4%
72.3%
E-mail queries answered by customer service within two hours (share)98.3%99.3%
* Figures for 2006 and 2007 are not comparable. Whilst the 2006 figures are estimates, those for 2007 are based on registered games.
Players per game (1 000s)
Average stake per week
Game
2006*
% of NT 2007*
% av NT
Player base total
No of reg
total
estimated
players
reg players
Tipping35815%29017,27%
Oddsen25811%17310,32%
Lotto1 964
81%1 59494,93%
Viking Lotto
81433%1 043
62,14%
Joker95639%1 207
71,89%
Extra
80633%
853
50,78%
Flax91137%
87937%
Keno19711,72%
**
Game
2006*
2007*
Tipping
65
49
Oddsen214176
Lotto
54
47
Viking Lotto
5829
Joker2713
Extra3020
Flax
80198
Keno
-
55 * *
* Figures for 2006 are based on market analyses and may accordingly contain some margin of
error. The 2007 figures show registered players. Note that the same people can be included in
the player base for several games
** Keno was launched in week 45.
20
•
•
•
•
•
What we did in 2007
Keno was introduced
Extra acquired a new TV concept, a new
prize and more prize chances
Oddsen was improved with more play
options at the weekends
We continued to develop our range of
games for mobiles
We organised a special Lotto festival in
September, with draws for a NOK 1 million
prize every day for a fortnight. We also
introduced the concept that “one number
is enough”
Ethical guidelines for marketing
• Communication about games will be
legal, honest, inoffensive and non intrusive
• Our marketing communication will
not be misleading
• We will be fully open about the prob ability of winning for all our games
• We will be especially careful in all
our marketing with respect to
children, young people and particu larly vulnerable groups
• Youngsters below the age of 18 will
not play a key role in game advertising
• Our marketing communication will
not encourage people to play beyond
their means
• Information on unfortunate player
behaviour and help for vulnerable
groups will be readily available
•
•
•
•
•
•
•
•
Continue work on product development
and renewal of existing games with a view
to reversing the negative trend in the
player base. An important aspect of this
will be renewal of the TV draws
Prepare for the introduction of the “grassroots share”
Prepare to adopt registered mode for all
our games, with the exception of Flax
Launch our new gaming terminals to
replace the old gaming machines
Follow up with another Lotto festival
Continue developing supplementary
services associated with the existing
games portfolio
Pursue various activities relating to our
60th anniversary – including a campaign
for Tipping (the football pools), which has
also existed for 60 years
Consider the creation of, and particiption in, a new international game in
cooperation with other state-owned
gaming companies in Europe
* The 2007 figures are based on registered players and
calculated as registered total turnover divided by the total
number of players and by 52 weeks. No account has been
taken of unregistered turnover, which comprises about 10
per cent. Figures for Flax are based on market analyses. The
figures are not comparable with 2006.
** Keno was launched in week 45.
21
2007
2007
social report
We know that gaming can lead to
problems, and meet this fact head-on
Responsibility will always be fundamental to our business. We will not only develop safe and
attractive games, but also ensure that our players display healthy gaming behaviour.
Generally speaking, two main types of problems are associated with gaming:
• gaming can lead to compulsive play
• gaming can be exploited for financial crime
and money laundering.
We respond to these issues through purposeful and systematic efforts on responsible
gaming provision and gaming security. Our
goal is to be among the best providers of
responsible gaming – nationally and internationally. This attitude will be demonstrated in
all our activities – from product development,
marketing and communication to the message conveyed through TV draws and sales in
the retailer network.
in 2005 was a single unemployed young man
with low income and education, resident in
an east Norwegian town. Many of the same
characteristics could be observed in the 2007
survey, but the picture of the typical problem
player had become more diffuse.
2005
83.1% 85.2%
80%
60%
40%
20%
11.4% 10.6%
3.6%
0%
Fewer compulsive players
Synovate and the Norwegian National Centre
for Addiction Issues carried out a survey of
gaming habits and compulsive gaming in
Norway for us. With 3 000 respondents, this
followed up a similar poll in 2005. The findings
showed that 85 per cent of the population has
no gaming problems. A further 1.7 per cent
can be defined as compulsive gamers, while
2.6 per cent are at risk of becoming compulsive. Compared with 2005, this represented
a significant decline of 1.2 percentage points
in the proportion of Norwegians who have
problems with gaming. That corresponds to
45 000 fewer people with gaming problems in
2007 than in 2005. The typical problem player
2007
100%
Play without
any problems
Low-risk
player
2.6%
Players at
moderate risk
1.9%
1.7%
Problem
players
Distribution of the population
over the age of 15 by degree of problems
with gaming
Problem gamers spend an estimated 12 times
more on money games than others. The
survey estimates that they spend about NOK
16 000 a year on gaming.
According to the survey, 0.4 per cent of the
Norwegian population, or 15 000 people,
play so much on the internet that it affects
their education or work, that others have reacted to their behaviour, that they have been
22
forced to lie and that they themselves think
they devote too much time to web games.
Most of them are young men under the age
of 24. Twenty per cent of on-line gamers play
more than four times a day.
High expectations of responsibility
Within the space of a few years, the attention paid by society to problem gaming has
gone from little or none to very great. An
important contribution to this debate has
been the use of gaming machines. That has
prompted a change in attitude to gaming.
What was previously regarded as harmless
fun is now seen much more as a controversial
activity. According to the 2007 Synovate
survey, only about one Norwegian in five
now regards gaming as harmless fun. This
means that we must be prepared for great
expectations related to the actions we take
to combat social problems related to gaming. An overview of the games cited in calls
to our helpline during 2007 is provided on
pages 26-27.
NOK 12 million
for research into, information on and prevention
of problem gaming
We know that problem gaming will occur as
long as games are available in society. We are
not intended or qualified to treat compulsive
players. That must be done by professionals. Our role is to heighten the awareness of
players so that they have their gaming under
control and do not run into problems with
money games.
23
2007
2007
social report
We pursue the following measures to promote responsible gaming
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Our market communication is open about the probability of winning
We will not market our products to children and young people
Marketing will not encourage people to play beyond their means
We do not allow anyone below the age of 18 to play Oddsen or any game
conducted via the internet or a mobile phone
Our player card is a smart card which provides a secure ID for the player,
makes playing secure and guarantees safe transfer of prizes. It also provides
a good overview of playing history
Only one player account can be created per player
An upper limit has been imposed on wagers per combination per terminal
per day for playing Oddsen with retailers
The player account can hold a maximum of NOK 10 000
We have our own guidelines for work on responsibility
We take account of the risk of compulsive gaming when developing new games
We cooperate with other public centres of expertise in Europe, such as the
Norwegian National Centre for Addiction Issues, Sweden’s Gaming Institute
and Nottingham Trent University
We list our helpline number on our own website, on our coupons and on
other printed information materials, and provide regular information about
the number in our external magazine
We educate our retailers and employees about problem gaming
Up to 0.5 per cent of our profit is devoted to the action plan on compulsive
gaming instituted by the Ministry of Culture and Church Affairs and the
Gaming Board. This money is devoted to research, information and preventive
measures.
24
Our business rests on self-imposed guidelines. We also observe the guidelines and
standards developed by the World Lottery
Association (WLA) and European Lotteries
(EL), of which we are members. We moved
to the WLA’s Level 4 in 2007, its highest certification level for responsible gaming. This
means that we have undertaken to observe
the WLA’s standards and routines for responsible gaming provision at the highest level.
When we can document that these guidelines have been implemented, which must
be certified by an independent third party,
we can adopt a logo which confirms that
certification. This process must be repeated
every second or third year.
Our responsibility platform
A responsibility platform is entrenched in our
whole business to ensure that this aspect
is taken into account throughout our value
chain. Conducting registered games through
the mandatory use of a player card provides
the basis for further development of this
platform.
Work related to responsibility builds on the
principal areas outlined below.
Research
Our work on responsibility is based on
consistent and durable efforts. All decisions
in this area build on accepted national and
international knowledge. When we develop
new games and manage existing production, we collaborate with the internationally
recognised psychologists Thomas Nilsson at
Sweden’s Gaming Institute and Mark Griffith and Richard Wood at Nottingham Trent
University in the UK. In 2007, this collaboration dealt primarily with work related to the
new gaming terminals and the launch of the
Keno game.
We joined the newly-established International Responsible Gaming Organisation (IRGO)
in 2007. Backed by some of the world’s
leading researchers into problem gaming,
this body’s job is to convert research findings into practical action and to familiarise
gaming companies and governments with international scientific findings. The IRGO held
its constituent meeting in Stockholm during
October 2007, with 114 delegates from 23
nations. A collaboration across sectors and
disciplines has thereby been established.
Marketing and availability
Many foreign gaming companies want to
recruit Norwegians as their customers, and
effective marketing is needed to channel
players towards our range. This marketing
must not be aggressive or encourage people
to play beyond their means. We seek in all
our communication and marketing to comply
with the government’s guidelines and our
own ethical standards for marketing. We
regularly report on our communication measures to the Norwegian Gaming Board.
We also participated in conferences at home
and abroad to secure expertise on responsibility in general and compulsive gaming in
particular.
Technological progress makes its mark on
games, which move into new environments
– the internet, mobile phones and shops.
Games become more readily available, and
researchers say this will increase the risk of
problem gaming. We are in a phase where we
are developing systems which will help players to have a conscious attitude to the scale
of their gaming. They allow players to set
personal limits and thereby gain control over
their activity.
Game design
Development of our new games is an extensive process. We want to adopt newlydeveloped tools such as GAM-GaRD to
enhance awareness of a responsible approach
to developing, launching, distributing and
evaluating new types of games and services. This tool indicates whether elements
in a game could cause vulnerable people to
turn into compulsive players. It also shows
how the game can be modified to make it
secure. Another tool is Playscan, which can
demonstrate player behaviour over a period
and which can predict with a high degree
of certainty whether players are developing
compulsive behaviour.
We want to use behavioural data to
identify which factors promote unfortunate
gaming behaviour, and to adopt corrective
measures in time. This will ensure that none
of the games we launch and operate conflict
with our responsibility platform. Close collaboration is sought here with recognised
researchers and specialists on compulsive
gaming.
Education and information
We will be open about the probability of
winning and the laws of chance. The number
of our helpline will be printed on customer
materials. Our goal is to ensure that players
are correctly informed as a basis for making
conscious choices about their own gaming.
We provide continuous information on responsibility and compulsory gaming through
in-house and external publications, and have
produced a number of brochures and presentations on this topic.
All employees and retailers are educated
about responsible gaming. We have launched
a revision and updating of our educational
concept, and are introducing certification
for personnel and retailers. This work will be
completed in 2008.
25
2007
Every new employee is briefed about our
work on responsibility, security, goals, visions
and strategies. The whole workforce was
invited in 2007 to take part in a professional
updating on responsibility. Speakers included
Mr Nilsson from Sweden’s Gaming Institute
and representatives from Svenska Spel.
Dialogue with specialists on compulsive
gaming
We want an open and honest dialogue with
our stakeholders. We have held meetings to
exchange views with the Norwegian National
Centre for Addiction Issues, Norway’s only
facility with cutting-edge expertise on compulsive gaming. We also organised a meeting
at Hamar in December with various interest
groups to seek a dialogue on issues related
to problem gaming and our role. Challenges
and issues were raised by both sides.
Calls to the helpline
Statistics from the helpline show that the
number of calls from or about individuals fell
by 42 per cent after gaming machines were
banned on 1 July. During the second half,
relatively more of the calls related to men
and the average age declined. This is because
calls about gaming machines fell sharply and
games such as poker accounted for a larger
proportion of the conversations.
2007
social report
Main problem game in first calls to the helpline
Developments from 2006 to 2007
1st half
2nd half
2007
Main problem game
No
Percent No
Percent No
Percent
Gaming machines253
60%14
6%267
40%
Bingo machines27
6%16
6%
43
6%
Bingo
51%31%
81%
Poker
8220%114
46%19629%
Casino games
41%17
7%213%
Odds19 5%2912%
48
7%
Tipping
61%9
4%152%
Lotto / Extra3
0.7%31%
6
0.9%
Keno
0
0% 5 2%
5
0.7%
Horse betting143%18
7%32
5%
Scratch cards1
0.2%
42%
5
0.7%
Other money games
61%18 7%24
4%
Total 420
100%
250
100%
670
100%
Main problem game Banknote ban 1 July Gaming machine ban 1 July
in first call 1st half 06 2nd half 06 1st half 06 2nd half 07
Gaming machines
71127025314
Poker
58
68
8214
Bingo/bingo machines*
5303219
Odds/betting22232538
Horse betting 16
51418
Casino games3
4
417
Scratch cards331
4
Lotto/Extra / Keno 323
8
Other money games
7
8
618
Not stated129131
Total 840
422
433
251
1
2007
* Bingo machines were first registered separately from the second half of 2006.
Source: Helpline for compulsive gamers, call statistics 2007.
The table shows which were the only or biggest problem money game(s) in conversations where the game was mentioned for the first time.
What we did in 2007
Main problem game played
on the web/mobile
1 halvår 2007
2. halvår 2007
Totalt 2007
Poker
82112194
Casino games/gaming machines
131730
Odds/betting
81624
Horse betting
51
6
Lotto/Extra/Keno13
4
Bingo2
02
Other money games
61420
Tota 117
163
280
1)
Fourteen conversations have been excluded because no main problem game was specified or the caller was uncertain.
Thirteen of these were received in the first half.
26
•
•
•
•
•
Defined our responsibility platform
Financed a new money game survey about
Norwegian gaming habits and compulsion
Were updated on research into and knowl
edge of compulsive gaming nationally and
internationally
Initiated a process of revising and updating all information and educational
materials relating to responsible gaming
Had a dialogue and meetings with specialists on compulsive gaming in Norway.
•
•
•
•
•
•
•
Pursue purposeful communication with
various interest organisations and centres
of expertise on compulsive gaming
Work purposefully to spread knowledge
of compulsive gaming throughout the
organisation
Develop e-learning modules on responsibility. Certify our employees and retailers
Adopt and comply with industry standards
for responsibility (WLA, EL)
Finance a new survey on money games
Develop and implement responsibility
tools
Update guidelines for responsible gaming
provision
27
• Participate actively in a Nordic forum
for CSR and responsible gaming provision,
together with the other state-owned gaming
companies in this region
2007
social report
Gaming security
An important foundation for our work on
responsible gaming provision is provided by
gaming security. This concept has several
aspects.
Gaming security is primarily about protecting
the integrity of our games – ensuring that
sales, conduct (draws, winner selection and
registration of results) and payment of prizes
accord with game rules and our in-house
guidelines.
ore than
m
t
e
b
r
e
v
e
N
.
“..
rules on
e
h
T
.
d
r
o
f
f
a
n
you ca
tended
in
e
r
a
s
r
e
g
a
w
maximum
...”
c
li
b
u
p
e
h
t
t
c
e
t
to pro
Responsible gaming since 1948
Responsible gaming provision was an issue
from the very first round of the pools. The
Pools ABC (right) was intended to advise
people and prevent them staking more than
they could afford.
Links
• WLA: http://www.world-lotteries.org/
• EL: http://www.european-lotteries.org/
• IRGO: http://www.internationalresponsible-gaming.org/
28
It is also about making sure that everyone
concerned complies with the regulations
– that retailers do not permit people to play
on credit, that they do not sell age-restricted
games to underage customers, or otherwise
breach their duties. And it is about ensuring
that the games are not misused by criminals
for such purposes as money laundering.
Finally, gaming security is about protecting
players against possible abuse, either through
their own unfortunate excessive gaming or
through the misuse of their player card or
identity.
Our approach
We work along several lines and with various
approaches to maintain security in all these
areas.
• Information and education: The basis for
gaming security is that everyone knows which
rules apply and the responsibility they bear for
preventing breaches of the security rules.
• Surveillance and reporting of non-conformances: Unusual behaviour often provides
the first sign that something is wrong. If we
pick this up, we will always conduct further
investigations to check whether the abnormal
activity is mere chance or has other causes.
• Draws: A representative for the Gaming Board
is present when we handle equipment used to
make all physical draws.
• Unclaimed prizes: Prizes which remain unclaimed by the deadline are paid into a special
fund. This money can be utilised in accordance with regulations issued by the Ministry
of Culture and Church Affairs, with prizes in
campaigns as one application. To prevent a
prize being claimed by somebody without
entitlement to it, investigations are conducted into how unregistered prizes are claimed
over a period and the scope of such claims by
comparison with the normal level.
• Sanctions: Respect for the prevailing regulations also depends on our willingness to
impose sanctions in the event of breaches. In
2007, for instance, 37 retailers lost the right
to sell our games for a 14-day period because
of their failure to comply with routines for
checking customer age when selling Oddsen.
• Dialogue: The police and public prosecution
service have provided information from time
to time which indicates that our games are
being used to launder criminal spoils. Contact
with these law enforcement agencies is
important both for tackling specific cases and
for identifying possible general issues which
need to be followed up. We also assist police
investigations into other cases.
• Risk analyses: Systematic risk identification
is an important preventive measure. During
2007, for instance, we conducted an extensive risk assessment involving all our departments – partly to identify the risk that our
games and systems might be misused. The
assessment showed that we have an acceptably low level of risk for internal dishonesty
29
2007
related to our games and gaming systems.
New reviews are being conducted in certain
areas to provide quality assurance that the
level of security is sufficiently high.
• Security requirements for gaming
companies: We have opted to adopt the
WLA’s security control standards (SCS) as the
minimum level for our measures in this area.
These measures are based on our goals, limits
for accepting risk and risk assessments. We
are certified every year by Det Norske Veritas
in relation to our compliance with the SCS.
We are currently certified to the 2003 version
until the end of May 2008. We will conduct
a new certification in accordance with the
2006 version before the current certificate
expires.
Misuse of the new player card
We uncovered two major cases in 2007 related to theft and misuse of player identities.
Our player cards contain a digital electronic
ID, which means that a lost or stolen card
can be used by criminals to take up loans,
establish credit and buy goods over the internet. This was what had happened in the two
incidents.
We also had some cases of people stealing
from a player account. Because prizes larger
than NOK 10 000 are paid to the player’s
bank account, the size of such thefts will be
limited. We initiated a number of measures
in 2007 to prevent such incidents, and are
constantly considering further action.
These cases illustrate how important it is
that players take as much care of their cards
as they would of debit or credit cards. Many
of our players have not been aware that their
card can be used as an electronic ID in other
contexts, and have therefore failed to appreciate the importance of having it blocked
should it go missing. A well-known problem in
2007
social report
this context is that people forget to remove
the card from the reader at the retailer.
These findings prompted us to conduct an
information campaign to make players and
retailers aware of the issue. We have also
modified the card readers so that they sound
a warning if the card is not removed when the
transaction has been completed. We meet
regularly with Buypass to follow up issues
relating to the electronic ID function.
Every week,
1.5 million
Norwegians play one or more of our games
Unusually high playing activity
We conduct activities to combat excess play.
Naturally, it is not up to us to decide how
much people want to wager, or where the
pain threshold lies in individual cases. But we
write to heavy gamers, informing them how
much they have spent and where help can
be obtained if they feel that their gaming
has got out of control. Should their gaming
continue at the same high level, the person
will receive a second letter.
One consequence of this routine is that we
end up writing to a number of player groups
or others who deliver games collectively on
one player card, and who are consequently
not in any risk zone with regard to their level
of play.
30
2007
Letters to heavy gamers
2004
2005
2006
2007
(from 1 June)
Letter 1 1836
5793
Letter 2 19
62
As the table shows, the number of letters has
risen every year since 2004. Because we know
nothing about the personal financial position
of the players, their other gaming behaviour
or whether they are individuals or groups, it
would not be reasonable to conclude that
problem gaming is on the increase. When the
number of letters is related to the fact than
about 1.5 million customers play our games
every week, it also confirms that the proportion of heavy gamers is very low.
What we did in 2007
•
•
•
•
Pursued activities relating to the security
of player cards
Following a comment from the Office of
the Auditor General, we conducted a
process for identifying our potential
in-house risks. This analysis was carried out
department by department, and em
braced the whole organisation. It will be
followed up with the preparation of
specific improvement plans, and the
analysis process will be repeated at regular
intervals
We focused on gaming security together
with the big chains. This occurred partly
through contact with security personnel
at the chains in connection with the
investigation of breaches, and partly
through activities aimed at identifying
security challenges which can be specifically addressed for the individual chain
In cooperation with the Gaming Board, we
held a number of meetings to follow
up operations and plan changes. Constant
contact has also been maintained with the
board on following up non-conformances
in business processes during the year
•
•
•
•
•
Initiate measures and processes to establish a broad collaboration with the chains
on joint targets and action over gaming
security
Implement systems for identifying operators when personal player cards (chip and
pin) are used for specific transactions with
the player account and card. The purpose
is to prevent misuse and eliminate vulner
abilities
Continue follow-up of and cooperation
with Buypass on security and operational
non-conformances in the use of player
cards and accounts
Work with the Gaming Board to coordinate changes in the games, follow up nonconformances at an overall level and update/amend guidelines and routines
Carry out a risk assessment to specify
the risk of breaches at the retailer level,
and adopt possible measures. The aim is to
prevent misuse of our games and systems
31
2007
social report
2007
New gaming terminals in 2008
Gaming machines were banned in Norway from 1 July 2007, and we are due to introduce new
gaming terminals about a year later. This launch will represent the biggest reputational challenge in our history. Society has great expectations that these terminals will avoid the kind
of social problems associated with the old machines.
• Games are being developed with a longer
We will therefore be introducing gaming
terminals which differ very considerably
duration, less emphasis on gambling and
from the old machines, both in appearance
greater focus on entertainment. Their develand not least in content. Mandatory use of
opment rests on international research findplayer cards, cash-free terminals, behaviourings to limit the risk of compulsive gaming.
al tools and games with high entertainment • Fewer locations and terminals. The first new
value will be key aspects.
gaming terminals will be installed in the
autumn of 2008, with the roll-out taking six
Some important project principles
to 18 months depending on how many local
• Gamers must use our player card. Requiring
operators we decide to have
• The terminals will be tied to a central
that all play be in registered mode permits
age to be checked and allows the use of
network. This provides full overview and
behavioural tools which can limit excessive
control, and possible changes can be made
gaming. Players can set personal limits on
immediately on all gaming terminals
• Rational operation ensures predictable revhow much they can wager and how long
they can play, for instance. Through the
enue for the beneficiaries
card, they can also exclude themselves from • The terminals are flexible and can be integaming for periods. Information stored in
grated in various gaming settings
the card provides players with an overview
of their own player behaviour over time.
This will help them to take responsibility for
Work on the new terminals resumed after
their own scale of play
the government won its case in the Efta
• Payments in and out can only be made with
Court and the Supreme Court. During the
the player card. The player takes money from
autumn of 2007, the project concentrated
their player account, and prizes are returned
on conceptual development and worked in
to it. This solution means that the terminals
close contact with the authorities to finalwill contain no money, reducing the amount
ise the business model. Some work has been
of theft. This will also be a substantial opcompleted, but much remains to be done
erational advantage, partly through reduced
before the roll-out begins in the autumn of
administration for the local operator
2008.
32
We are confident that we are now developing an exciting terminal which will be well
received by the players, the local operators
(retailers) and public opinion.
Gaming terminals
•An exciting new form of entertain-
ment, where the player can choose between many different games.
•Because this concept is very different from the old gaming machines in terms of both content and appearance, we have renamed the machine a gaming terminal.
•That provides a better description of the concept.
•The terminals can also be used to play our traditional games, such as Lotto, Extra, Tipping and so forth.
•They will primarily be located in kiosks and various kinds of restaurant.
Nobody will be able to use our new
gaming terminals
without a player card
33
2007
social report
2007
Playing a positive social role
The cornerstone of our communication strategy towards customers, the media, politicians
and interest organisations is to explain what we stand for and to highlight the value added by
our business to sport and culture.
We give
the dream
a chance
A survey carried out for us by Synovate and
the Norwegian National Centre for Addiction Issues in 2007, with 3 000 respondents,
showed that we enjoy broad support for
our social remit. This remit is to serve as
the government’s instrument for ensuring
that money games are conducted within an
acceptable framework, while simultaneously
offering entertaining games which generate a profit for good causes. Some of the
survey’s findings are listed below.
•
•
•
Eight out of 10 Norwegians associate
money games with support for good
causes. Eighty-two per cent of the population agreed wholly with the statement
that “profits from money games go to good
causes”. Only seven per cent disagreed
Three out of four Norwegians agree
wholly or partly that money games should
be conducted under strict state control
Sixty-two per cent agreed that more
control should be exercised over where,
when and how much people played games.
Another Synovate survey on the images of
major Norwegian companies confirmed our
broad popular support. Read more on page
37.
Communication challenges
Solid support for our role from society at
large is required in order to legitimise our
business. The challenge in 2008 is greater
than before. Launching the new gaming
terminals will be the biggest reputational
challenge we have ever faced. See page 32.
Our efforts to ensure legitimacy are also
under challenge from steadily rising competition in the Norwegian gaming market, both
from the emergence of Norwegian actors
who compete directly with our products and
because Norwegian gamers are opting to
play with foreign web companies.
We fulfil dreams
A survey of the way our profits are applied can be found – in Norwegian only
– at www.spillemidlene.no, along with
information on procedures for seeking grants. Another Norwegian-only
website, www.idrettsanlegg.no, details
every facility which has received gaming
funds. NOK 1 250 000 000 was distributed to sports in Norway during 2007,
with an equal sum for cultural purposes.
Go to page 14 for a more detailed presentation of the contribution our profits
make to society.
34
35
2007
Funds for health and rehabilitation
In addition to our contribution to sport
and culture, about NOK 200 million of our
profit goes to the Norwegian Foundation for
Health and Rehabilitation (SHR). These funds
come from the Extra game, which helps to
give it a positive reputation. Players perceive
Extra as a pleasant game in which generosity, participation and the social aspect are
more important than large money prizes. A
relaunch of Extra in a new guise, with revised
rules and an increased probability of winning
generated increased turnover last year. TV
broadcasts of the Extra draw were watched
by an average of 430 000 viewers per week.
Great media attention
The resignation of chief executive Reidar
Nordby Jr attracted great media attention
towards the end of the year (see the chapter
on events on page 6). This case also prompted the media to dust off old stories which
could present us in a negative light, and is
therefore likely to have weakened our reputation. This will be investigated in our social
accounting, which is conducted every other
year and is due in the spring of 2008.
However, it is worth noting that the volume
of positive coverage increased significantly
from 2006 to 2007. The first Lotto festival,
with daily draws, was one of the events
which generated numerous positive media reports. Much positive coverage was
also achieved by the cultural projects we
supported. That applied particularly to the
Dream Grant and the presentation of the
first Golden Schoolbag award as part of the
Cultural Schoolbag.
social report
Norsk Tipping i mediene
2007
2006
Antall oppslag om Norsk Tipping
52273243
Antall positive oppslag31192374
Antall negative oppslag1951
791
Positive oppslag i prosent
60
73
Annonseverdi for positive oppslag24,3 mill19,6 mill
Selected sponsorship and
promotional projects
Our collaboration with the Football Association of Norway (NFF) primarily helps to
provide us with attractive gaming targets
throughout the summer. Through the NFF’s
agreement with TV2, we also collaborate
closely with that broadcaster. This contributes to good promotion not only of
our products but also of the values-based
projects embraced by the collaboration
which reflect our desire to present our role
as a responsible social player. One of these is
Fair Play, for which we are the general sponsor. The programme builds attitudes against
bullying and racism. Measures during 2007
included Colourful Football tournaments,
Ganging Up Against Bullying schools, Fair
Play tournaments and so forth. A total of 45
000 elected officials have attended Fair Play
courses over three years. This programme
is presented – in Norwegian only – on the
www.fotball.no and www.motmobbing.no
sites.
Our extensive collaboration with the Norwegian Confederation of Sports (NIF) and
the Norwegian Olympic Committee (NOK)
focuses on specific projects. Some of these
are outlined below.
The Club in My Heart, where we help to
encourage mass participation sport
36
The Knowledge Tour disseminated information on important areas to be tackled by
Norwegian sports over the next few years. It
also provided sports officials with information about our significance for Norwegian
sporting life. The tour visited Bergen, Sogndal, Sarpsborg, Stavanger, Bodø, Steinkjer,
Kristiansand, Hamar, Alta, Oslo and Dram•
men. Topics covered were open and inclusive
sports, rules on children’s sport and the
•
rights of young participants, voluntary participation and our significance for Norwegian
sporting life. Some 1 000 people attended
this year’s tour, and their feedback was
almost wholly positive.
Collaboration with the NIF/NOK also
involves close cooperation with 15 sports
associations. In addition, we contribute to
disseminating knowledge about preventing
sports injuries in cooperation with the Oslo
Sports Trauma Research Centre. See www.
klokavskade.no (in Norwegian only)
• Agreement was reached in 2007 with the
Norwegian Handball Federation on extending
Fair Play to this sport. That included the pro•
grammes on respect for referees, respect on
the pitch and respect in indoor stadiums. The
goal is to strengthen the reputation of both
the federation and our company as important social actors. Magazines about Fair Play
in both football and handball were produced
during 2007.
Our collaboration with the cultural sector
aims to raise the status and image of its
participants, to build relationships, and to
promote our role as a committed and socially
responsible actor. Some important projects
in 2007 are listed below.
• The Norwegian Council for Music and Art
Schools received NOK 180 million in gaming
funds for the Cultural Schoolbag, a project
which helps 620 000 children to experience
art and culture at school.
• The Dream project was implemented in
collaboration with the Norwegian Band
Federation. Support was provided for three
large Dream events, as well as 75 smaller local concerts. All these events contributed to
numerous and wholly positive media reports.
One concert was also covered by NRK TV.
Cooperation, promotion and events
The 10 largest cooperation and sponsorship
agreements:
Image survey of major Norwegian companies
2007
We came eighth in the 2007 image survey of
major Norwegian companies, compared with
ninth in 2006. We have seen a downward
trend in this ranking over recent years. Synovate, which carries out the survey, believes
that the reason is the gaming machine issue
and the general debate on monopolies. It
nevertheless notes that we are positioned at
the topmost level of this image survey.
We came seventh for CSR and ethics
(2006: sixth). This ranking was described as
flattering in relation to our business today
and in the future. We were second (2006:
third) for financial performance, reflecting our reputation for doing extremely well
financially. Combined with a very good ranking for the other factors, we are seen as a
company with a rounded and solid image. We
were fourth for advertising and information,
and eleventh for environmental awareness
– both unchanged from 2006.
Partners
• Football Association of Norway
• Norwegian Confederation of Sports
• The Norwegian Ice Hockey Federation
• The Norwegian Handball Federation
• Norwegian Council for Music and
Art Schools
• Norwegian Band Federation
• St Olav Festival in Trondheim
• By:Larm and Oslo Music Festival
• Queen Sonja International Music
Competition
• Elverum Music Festival
37
2007
What we did in 2007
•
•
Highlighted our CSR through sponsorships
and other communication
Launched a detailed review of our com
munication strategy, with a clear emphasis
on CSR
•
•
•
•
•
•
Compile a social accounting
Conduct new surveys of attitudes to
gaming and the scope of problem gaming,
partly to identify the impact of removing
gaming machines in Norway for a period
Complete our new communication strategy and entrench this in the organisation
Educate the whole workforce on our
ethical guidelines
Pursue communication measures to
support the legitimacy of the exclusive
right model
Pursue PR activities for our games to
boost our commercial strength, and implement image-building campaigns
centred on our good causes
2007
social report
2007
Our employees
Well-being,
pride
commitment
Pride at and commitment to
their jobs characterise the
attitude of our employees,
according to the working
environment survey carried
out in the autumn of 2007.
Conducted in cooperation
with TNS Gallup, this poll was
based on written and anonymous responses. No less than
85 per cent of our staff participated. The survey sought
to chart the working environment, goal attainment and
performance, management,
and our values, culture and
ethics.
and
•
•
•
•
38
The survey generally yielded very good
results. Converting all the responses to indices for comparison with other enterprises
shows that we are among the top 20 per
cent of companies in northern Europe. Positive responses to the following questions
make a particular contribution to pushing
up the results:
I am proud to work for Norsk Tipping
I always get help and support from those
around me at work
I look forward to going to work every day
I feel that my job is meaningful to me
• I have good opportunities to work independently.
It transpires that our working environment
is characterised by well-being, pride and
commitment, and is probably an important
reason why our sickness absence is still well
below the national average.
TRI*M index
78
Norsk Tipping 2007: 73
62
Average Norway 59
Northern Europe
Top 10%
Top 33%
58
Average
51
Bottom 33%
39
Bottom 10%
Benchmarked against the TNS international experience database.
Source: TNS Gallup
The working environment survey shows that
we are one of the best Norwegian companies to work for.
Improvement areas
Naturally, the survey also identified certain
areas where improvements are needed. A
more detailed analysis of the measures we
should adopt at a general level and those
which should be directed at specific departments will be conducted during the first
few months of 2008. This work will lead
to a specific action plan. Support will be
provided by Right Management, our partner
for management development.
39
Equality and diversity
We give weight to equal treatment of our
employees. So it is positive that the working
environment survey showed that employees
do not experience any form of discrimination on the basis of gender, sexual orientation and/or ethnicity, and that women and
men have equal opportunities. Nor were any
cases of discrimination or bullying identified by other means in 2007.
In addition to having an inclusive workplace
(IA) agreement, we issue an annual report
on our work with integration and diversity
to the Directorate of Integration and Diversity. We do not have many employees with
minority backgrounds. A recruitment guide
has been developed which requires that
applicants with such backgrounds who are
otherwise qualified for the advertised post
must be called to an interview.
We consider it desirable to increase the
number of women in senior posts. Our
hierarchical gender distribution is currently
unbalanced, with men over-represented at
the topmost levels. Women are over-represented in the rest of the workforce.
2007
social report
Development of female pay
as a proportion of male
Senior management
Middle managers/sr specialists
Gender distribution by job level
Senior manager Middle manager/
Jr specialist/ Employee
sr specialist team leader Women14%23%33%
60%
Men
86%
77%
67%
40%
Fifty-two per cent of our employees are
organised in two unions, the Norwegian
Union of Government Employees (NTL) and
the Norwegian Society of Engineers (Nito),
which have negotiating rights. We are a
member of the Spekter employer’s association.
Focus areas
Substantial work was done during 2007 in
a number of areas to improve the working
environment, continue developing capabilities and strengthen management of human
resources at every level. We gave priority to
revising our ethical guidelines and entrenching these through in-house educational
measures.
We also conducted an in-house professional
programme for managers and specialists,
covering the following subjects: the importance of setting good targets, innovation,
capability development, and cooperation
and communication. These topics reflected
improvement areas identified by the intellectual capital (IC) rating compiled in 2006.
Total
42%
58%
A separate report and action plan on
health, safety and the environment (HSE) is
prepared every year, and provides a detailed
overview of work in this area. No special issues were identified in 2007.
nates our operational work on HSE, and is
responsible for facilitating health-promoting measures and activities to encourage
healthy living by our employees. This person
also participates in the working environment committee and our Akan committee
for prevention of alcohol and drug problems
in the workplace. The healthy living coordinator holds monthly meetings with human
resources managers to follow up cases of
sickness absence and to assist with workplace customisation. A special programme
was implemented for people on long-term
sick leave in 2007. Participants were initially
wholly incapacitated but could all be redefined as partially incapacitated over the
period of the programme.
Generally speaking, we have a very extensive
HSE programme. This is based on principles
for prevention, customising and monitoring.
The healthy living coordinator coordi-
A first-aid course was conducted during
2007 with a focus on dealing with specific
illnesses such as epilepsy, diabetes and heart
attacks.
HSE
We collaborate well with our employees
through the work environment committee, which comprises an equal number of
workforce and management representatives.
The employee members are elected by the
unions and represent all personnel
40
Specialists
Employees
What we did in 2007
•
•
•
•
•
•
•
•
•
•
•
•
•
Implemented safety training for all
employees and managers
Developed new and more specific ethical
guidelines, which describe expectations
for the individual employee in a clearer way
Developed an educational programme
for managers and employees based on the
new ethical guidelines. The management
course was conducted in October, with
the remaining workforce taking the
programme in January 2008
Developed proposed guidelines for
capability development, which will be
implemented during 2008
Conducted a professional management
development programme with contributions from in-house and external resources.
About 60 managers and specialists took part
Implemented a procurement process
which led to Right Management being
selected as our new partner for management and employee development
Prepared functional and responsibility
descriptions for all our employees
Entrenched our identify and produced a
booklet on its content. All employees have
taken a course on this
0
0
0
0
20
20
20
20
40
40
40
40
60
60
60
60
80
80
80
80
100
100
100
Seven per cent of our workforce are employed in part-time jobs or have had their
working hours reduced at their own request.
There are no differences in benefits or rights
between full- and part-time workers.
100
Pay differentials between men and women
have declined substantially over the past
five years, particularly in the lower ranks
where the differences were previously
greatest.
(based on average pay)
Offer modules in practical human resources
management to managers with such
responsibilities as and when required
Priority measures based on the working
environment survey will be implemented
at both departmental and general level
Our core values will be clarified in such a
way that employees can identify and comply with them in a positive manner
We will implement measures in line with
our HSE plan, and continue our healthy
living commitment to prevent sickness
absence and contribute to a good working
environment
Because our organisation is constantly
changing, functional and responsibility
descriptions need to be continuously
revised. As in earlier years, development
reviews will be conducted with all employees
41
2007
social report
Employees by gender
2006 number/share
Women135 / 42%
Men189 / 58%
2007 number/share
134 / 42%
188 / 58%
20-29 30-39 40-49 50-59 60- % av kjønn % av ansatte This corresponds to 317 work-years
for 2007
Managers by gender
Senior Senior
Middle Middle Team leaders* Total
Total
managers 2006 managers 2007 managers 2006 managers 2007 2007
2006
2007**
Women14%14%23%22%31%22%23%
Men
86%
86%
77%
78%
69%
78%27%
Sickness absence
The table below shows the development of our sickness absence compared with the national average (Statistics Norway) from 2003 to 2007.
Sickness absence 2002-2007
88
Total
15
95
131
64
17
322
66
44
Norsk Tipping
Total
134
188
322
43
4. kvartal 07
3. kvartal 07
2. kvartal 07
1. kvartal 07
4. kvartal 06
3. kvartal 06
2. kvartal 06
We have a total sickness absence of 4.8 per cent in 2007. Short-term absence totalled 1.1 per cent.
We apply Statistics Norway’s methodology for calculating sickness absence.
“Temporary part-time” differs from “part-time” in that these employees have themselves requested reduced working hours for a period.
42
1. kvartal 06
4. kvartal 05
3. kvartal 05
2. kvartal 05
1. kvartal 05
4. kvartal 04
3. kvartal 04
2. kvartal 04
1. kvartal 04
part-time work
Number Percent 14 10%
3 2%
17 5%
4. kvartal 03
Part-time Number
Percent
5 4%
0 0%
5 2%
3. kvartal 03
Full-time Number
Percent
115 86%
185 98%
300 93%
2. kvartal 03
1. kvartal 02
Employees by full- and part-time work
1. kvartal 03
Statistics Norway
22
Gender
Kvinner Menn Totalt 0,3%
1,6%
1,2%
n.a
n.a
10
10
Employees by age
0,7% 0,3% 0,7%
1,5% 2,7% 2,2% 1,5% 1,6% 0,5% 0,3% 0,7% 1,6% 0,5% 0,3% 3,0% 1,1% 1,6%
5,2% 4,8% 3,0% 3,2% 5,0% 3,1% % of age group
External turnover represents employees who leave/join us. In-house turnover refers to job changes within the company.
*Team leaders (new category from 2007) – managers with responsibility for organising and leading the work of a small team. They do not necessarily have human resources responsibility.
**The total for 2007 is not directly comparable with 2006 because team leaders have been included. The comparable figure for 2007 is 22 per cent women and 78 per cent men
Age
Number
Women Men 20-29 8 7 30-39 30 65 40-49 47 84 50-59 38 26 60- 11 6 Total134 188 External and in-house turnover by gender and age group
External turnoverIn-house turnover
% of women % of men % of age group
% of women % of men Age
4. kvartal 02
2003312
2004373
2005367
2006324
2007322
2007
Turnover by age group and gender
(at 31 December)
3. kvartal 02
All employees
2. kvartal 02
2007
2007
social report
Retailers – our face to the customer
More than 93 per cent of our sales take place through the network of almost 4 000 retailers.
We can therefore safely say that they represent our most important channel to the customer
Our challenge with regard to retailers – as
we formulated it in 2007 – is even clearer
this year: “Shops are increasingly run today as
part of retail chains, and the four largest of
these in Norway (ICA, NorgesGruppen, Coop
and the Reitan group) account for the bulk
of our turnover. Below these big chains come
a number of individual stores with their own
identity. We must accept that these differ
fairly considerably. More distinct branding
by the different chains also makes demands
on how we fit in, and presents us with challenges in preserving our identity within the
various groups.”
In other words, we must continue our efforts to ensure that money games are given
priority as a product category and that we
are seen as a clear sender. That calls for close
dialogue and contact with the chains and
retailers.
Further development of retailer network
Our turnover grew by eight per cent in
2007. The retailers were paid a total of NOK
720 million in commission. At a time when
competition is getting tougher, we must
ensure that being one of our retailers remains
attractive. Through good marketing and an
attractive range of games, we will satisfy
customer needs and expectations and create a good result for the retailers and the
beneficiaries.
44
Challenges at the till
We want to develop gaming concepts tailored to the requirements of our retailers and
customers. The most important project for
renewing the retailer channel is a concept for
sales at the till in grocery stores. Our aim is
to test this out during 2008.
Continuous dialogue and contact meetings are pursued with retailers and chains
with the aim of following up and developing
the retailer channel. Various activities and
training courses are also pursued to ensure
implementation and responsibility in the
retailer network.
3 973 retailers accounted for
93%
of our games turnover
Digital communication
Most of our retailers have installed digital
flat panel displays. This opens an entirely
new way of communicating with customers.
We control the content of the display, which
ensures that the retailers get correct and
updated messages. This solution also saves
them time when following up campaigns,
and represents an environment-friendly
alternative. The displays significantly cut
the production of printed campaign material. Another effect is to reduce transport
requirements and thereby emissions.
45
2007
2007
Retailer training
All new retailers must take a mandatory basic
course. In the event of changes/transfers of
ownership, retailers are required as a minimum to attend a one-day course on games
and responsible gaming. Each retailer has a
person responsible for gaming, who must at
least have taken our basic course, and who is
responsible for training other shop staff.
Thirty-five two-day basic courses were held
in 2007, with a total of 570 participants. In
addition, 12 one-day courses on games and
responsible play were provided for 113 participants. We have also developed a course
which can be applied in-store. Eight of these
were held, with a total of 40 participants.
Subjects covered range from practical exercises on retailer work to ethics and responsible gaming.
To strengthen the quality of our retailers
even further, we intend to introduce a webbased e-Learning programme which also
incorporates a certification scheme. This will
be important in enhancing the capabilities of
those involved in selling our products every
week, who total more than 15 000 people.
Enforcing the 18-year age limit
for Oddsen
We imposed an age limit of 18 years for
playing odds-based games from 1 January
2005. Retailers, game managers and other
point-of-sale staff must check the ID of all
people under the age of 23 who want to play
Oddsen. Through an external partner (G45),
we conduct spot checks of our retailers to
identify possible breaches of routines for
enforcing the age limit.
A total of 208 checks were carried out by
G45 in 2007, based on a random representative sample of retailers. These checks led to
social report
the imposition of sanctions on 35 retailers,
who lost the right to sell Oddsen for 14 days.
It is worth noting that we do not check
whether games are sold to people under 18,
but whether our routines – which require
everyone under the age of 23 to be asked for
their ID – are being observed.
We will make registered gaming mandatory
during 2008. This means that people must
have a player card to play. When a player card
is issued, an ID check is run to ensure correct
information about the holder. Registered
gaming will automate checking and enforcement of the 18-year age limit for Oddsen.
Retailer satisfaction
We carry out regular surveys of overall retailer satisfaction with us, and two of these
were conducted in 2007. An average retailer
satisfaction of 72.9 per cent was achieved
during the year (2006: 75.4). A score of
70-70 means satisfied. We fell short of the
target, which was 75 per cent.
Appointment of retailers
We set strict financial and suitability standards for appointing retailers. New appointments are made on commercial criteria, a
policy which is questioned from time to
time. Trond Giske, minister of culture and
church affairs, answered a question on this
issue in the Storting on 26 April 2006, when
he said in part: “Agreements on establishing the retailer network form part of Norsk
Tipping’s commercial operation, which are a
matter for the company itself. New retailers
are accordingly appointed on commercial
criteria.”
Taking account of such considerations as
sector, location, opening hours, customer
flow, sales area, net goods turnover and the
competitive position in the relevant area,
we decide whether the commercial basis
exists for appointing a new retailer. We also
conduct credit evaluations of the relevant
applicant and assess their ability and willingness to give priority to gaming in line with
our commercial and ethical standards and
values.
Participation in Mercury programme
We cooperate with the Mercury programme
when appointing retailers with shops in
outlying districts. This programme is an important part of the Ministry of Trade and Industry’s commitment to small communities.
The local shop plays a key role in efforts to
create solid local communities with access
to a good range of products and services.
The Mercury programme aims to integrate
training and information for retailers and
consultants, so that gaming turnover is assessed on the same terms as other commodity categories. The criteria for being
Group
CS 1st half CS 2nd half
Goal 2007
2007
Overall retailer satisfaction
with us
74
72
75
Customer service experience
– satisfaction of players and
retailers with our customer service 78
84
80
46
CS
2006
75,4
82,5
appointed as a retailer under this programme
are determined primarily by the requirements
specified for inclusion in Mercury.
A total of 137 new retailers were appointed in
2007, including 11 as a result of cooperation
with Mercury. Just over 275 retailers are covered by this programme. To develop capabilities in gaming and responsible gaming, we
participated at all the Mercury programme’s
area meetings in 2007.
What we did in 2007
•
•
•
Developed a new distributor concept for
sales in grocery stores. This is ready for
testing
Installed digital flat panel displays with
retailers
Developed a system and concept for
e-learning and certification of retailers
•
•
•
Test and customise a new distributor
concept for selling games in grocery stores
Implement a new system and concept for
e-learning and certification of retailers
Introduce mandatory registration for all
games except Flax
2007
We have 3 973 retailers in all
Number of retailers
per county:
Number of retailers
per umbrella chain
County
No of retailers
Akershus291
Aust-Agder98
Buskerud193
Finnmark114
Hedmark201
Hordaland365
Møre og Romsdal284
Nordland277
Nord-Trøndelag127
Oppland207
Oslo352
Østfold204
Rogaland288
Sogn og Fjordane137
Sør-Trøndelag239
Svalbard1
Telemark150
Troms164
Vest-Agder127
Vestfold154
3 973
Umbrella chain Number of retailers
Reitan group
745
Norges Gruppen1 653
COOP
665
ICA Norge AS
449
Other grocery stores12
BK-Gruppen Gyda38
Best
6
Select Service Partner
8
Other convenience stores204
Esso
42
Shell26
Statoil
44
Other
4
Not in an umbrella chain
77
3 973
Turnover per channel
2006
2007
Retailers9 1519 696
Internet
463 664
Mobile phones
5 29
Total9 619 10 388
47
Change
+6%
+8%
2007
social report
NOK 200 million saved over three years –
and continued focus on quality collaboration
Ensuring that as much as possible of our profit will be available for distribution to sport and
culture is an important responsibility. It calls for close attention to costs. At the same time, we
know that the quality of our collaboration with suppliers is crucial for the value we get back.
In other words, we must be as efficient as
possible in order to ensure that we do not
use money and resources unnecessarily. We
must simultaneously develop relationships
with our suppliers in a way which means that
we jointly stretch as far as we can to achieve
results which benefit society.
NOK 200 million saved
Since we became subject to the Act concerning Public Procurement in 2005, we have
saved NOK 200 million through improved
buying. This has been achieved by working
along three axes:
• clearer testing of the need for all
purchases
• opening the purchase of all goods and
services to competitive tender
• a clear process for negotiating the
terms of all purchases
New procurement policy
We purchase goods and services worth some
NOK 850 million every year, and have registered just over 1 300 suppliers. With procurement on this scale, quality and efficiency
can only be achieved by developing good
routines and a systematic approach.
We introduced a new overall procurement
policy in 2006, which was revised and
improved in 2007 on the basis of the experi-
ence we had gained. The policy builds on
the Public Procurement Act, and its most
important elements are:
• all purchases above NOK 500 000
must be put out to public tender
• a log must be kept and competitive
bids obtained for all purchases between
NOK 100 000 and NOK 500 000
• all suppliers must be treated equally
– the rules do not permit preference
to be given to local firms, for instance
• the procurement department is
process leader for all purchase above
NOK 500 000, and must also be involved
in all other purchasing.
Although no exact survey has been conducted, we know that some minor direct
purchases made in 2007 breached this policy.
With the tightening of procedures now being
made, and as all employees are trained in the
new procurement rules, the intention is that
all purchases during 2008 will accord with
the approved guidelines.
Procurement in 2007
A total of 33 public invitations to tender
were issued in 2007, covering such areas as:
• advertising services
• retailer interiors
• group travel for retailers and prizewinners
• organisation development
48
•
•
•
bank services
architectural services
advisory services relating to
game and concept development.
In addition, we conducted more than a
100 minor competitions and placed a large
number of orders and calls under existing
contracts. The new requirement to log all
procurement above NOK 100 000 will be
implemented and monitored.
New and improved routines for contract follow-up have been introduced, and standardised contract templates developed. We have
also been very active in improving all aspects
of the procurement function, such as:
• planning and preparation of action plans
for procurement
•
•
•
•
improving our electronic archive
of contracts
communicating and informing both
in-house and to suppliers
expanded invoice checking
quality assurance and efficiency
improvements for procurement processes.
In addition to observing the procurement
guidelines, it is also important that both
employees and suppliers observe ethical
guidelines. We had initially planned a number
of activities relating to this issue with our
suppliers. However, that work was postponed
while we revised our ethical guidelines in
2007 – including those related to procurement and supplier contracts. Most of our
suppliers are Norwegian companies. They
are subject to Norwegian law, and we have
for that reason not conducted a systematic
review to identify possible breaches of human rights.
Feedback from the Auditor General
In Document 1 for 2006, the Office of the
Auditor General noted that we made some
major purchases which were not advertised
in accordance with the regulations, and that
written contracts had not been signed with
several big suppliers.
We sorted out these issues in 2007, and took
action to ensure future quality assurance of
routines. Expanded invoice checks and quality assurance of all our agreements where
among the measures adopted. Our procurement policy was also amended to secure
better professional purchasing quality and to
clarify responsibility for observing the regulations. Possible comments for 2007 will be
submitted to the Storting in October 2008.
What we did in 2007
• Our procurement policy with associated
guidelines was revised in December
• Our ethical guidelines, which also
embrace procurement rules, were
completed in December
• Plans were developed to extend the
use of procurement tools
• A review of all our existing contracts
was pursued throughout the year, and
will continue in 2008. New and improved
routines for contract follow-up and
contract templates were introduced
• A guide for supplier development was
developed as an aid for such activities
as managing important purchase
contracts and supplier relationships
with the aim of enhancing quality and
delivery accuracy
• We announced and conducted more than
30 tendering processes in accordance with
the public procurement regulations
•
Our procurement department held
mandatory meetings in the first week of
January with all employees involved in this
activity. Revision of the policy and the new
ethical guidelines were among the topics
discussed at these information sessions
Our suppliers by size
Category
No of Share of suppliers
total number All1 318100%
>1.7 NOK mill 523.9%
0.5 - 1.7 NOK mill 58
4.4%
NOK 5 000 - 500 000 721
54.7%
<NOK5 000 kr
48736.9%
Purchases
Share of total
less VAT purchases
(in NOK 1 000)
682 298100%
580 376
85.1%
54 123
7.9%
46 930
6.9%
869
0.1%
49
•
•
•
•
2007
We will conduct an analysis during the
first half-year to provide a decision base
for introducing new and more efficient
electronic tools
We have developed a mandatory course
for all employees to provide general
information about the regulations,
logging, division of responsibilities, ethics
and morality. At 31 January, 40-50 personnel
had completed this programme. The goal
is for all employees involved in the
purchase of goods and services to take
the course during the year
A tool developed for our procurement
portal, which is used to register all
purchases above NOK 100 000, will be
introduced from 1 January
Improve existing tools and processes,
including measures to ensure compliance
with the revised procurement policy,
further standardisation and efficiency
improvements for processes and tools,
better communication and sharing of
capabilities within the procurement
department and with other colleagues,
create a structure for supplier development and drive its adoption, implement a
new electronic tool for mini-competitions,
improve invoice checking with the
emphasis on traceability, and prepare a
transition to electronic invoicing
2007
social report
2007
Every little helps
We have reduced our own energy consumption by
12%
from 2006
We are not involved in any
form of production which
causes emissions to the air
or discharges to the water.
Nonetheless, we have a conscious attitude to our environmental impact through
resource consumption, transport and waste creation.
Our impact on the environment relates primarily to the
printing and distribution of
coupons and the Oddsen
programme, transport, energy consumption in our own
premises and waste management.
Printing of coupons and Oddsen
programme
We distributed 170 million coupons and about
15 million Oddsen programmes in 2007. We
expect the 2008 figure for coupons to be
closer to 180 million because of Keno, with
its daily rounds. Helping to ensure that these
are printed in an environmentally good and
acceptable manner is important for us. We
accordingly require that our sub-contractors for these products meet environmental
standards. Our contractual requirements
specify, for instance, that all coupons and game
programme must be printed on unbleached
recycled paper and with non-toxic ink.
Our coupons and programmes have been
certified to the Nordic Swan label since
2004. This confirms that production of
coupons and Oddsen programmes satisfies a
number of environmental standards, and that
they are printed on Nordic Swan-labelled
paper. Our contract with sub-contractors for
coupons and Oddsen programmes specify
that “the supplier works in compliance with
Norwegian public law and statutory regulations. Deliveries must satisfy the requirements of version 3.2 of the Nordic Ecolabelling criteria document on ecolabelling of
printed materials”.
We are involved in a tendering process on the
distribution of coupons, where environmental measures are a separate item. The installation of flat panel displays at all our retailers,
50
51
which took place in 2007, will contribute to
a significant reduction in the distribution of
brochures and other materials.
The number of coupons has increased over
the past year, partly because of the introduction of Keno. We pay constant attention to
reducing the printing and distribution of
coupons, but have no specific performance
targets.
Transport
We have our own transport policy. Our
employees use public transport whenever
appropriate. One of our own vehicles will
preferably be used for business trips where
a car is needed. To help reduce carbon emissions, our company cars have diesel engines.
Energy and management
We have good routines for efficient energy consumption, and have invested over
a number of years in various technological
solutions to cut energy usage. Installing time
switches in part of our premises during 2007
provides a further reduction.
Energy consumption in our own premises
during the year amounted to 4 755 megawatt-hours, a reduction of 570 megawatthours from 2006. This decrease reflects
better control of electricity consumption,
including recovery of surplus heat in the operations room. Electricity meters have been
installed.
social report
2007
6000
5000
4000
3000
2000
0
1000
Energy consumption offices,
megawatt hours
350
300
250
Figures for waste
management
We delivered 114 tonnes of waste in
2007, which broke down as follows:
Mixed food waste 69.5 tonnes
Wood
6.5 tonnes
Paper/cardboard36.0 tonnes
Blank plastic foil1.0 tonnes
Glass/metal1.0 tonnes
Recycling of materials
We have had a permanent agreement since
2004 with the Materialretur company, and
pay a fee to ensure that the packaging from
our products is recycled. Materialretur collects the packaging fee needed by materials companies to organise collection and
recycling schemes.
52
200
150
100
0
50
Waste management
We have good routines for dealing with
waste. All refuse is sorted and organised for
recycling:
• fluorescent tubes are treated as hazardous
waste and placed in a separate container
• residual waste is sorted at the reception
point
• paper and cardboard are placed in their
own container
• we have a separate refrigerated room for
food scraps and wet waste.
2007
Recyclable coupons distributed
What we did in 2007
• Worked purposefully on energy-saving
measures
• Facilitated the introduction of district
heating
• Began work on introducing time manage ment of lighting, which will be introduced
as the remaining departments are refurbished
The impact of our operations on
the environment
will be a small as possible
• Introduce new waste collection routines
aimed at increased recovery
• Replace ventilation fans in the rest of our
premises
• Install time switches in the rest of our
premises
• Install a new cooling system
• Pursue a tendering process for coupon
distribution which includes environmental
measures
• Continue efforts to reduce the production
and distribution of coupons
• Introduce a return scheme for terminals.
Reach agreement with an approved supplier
53
2007
social report
2007
Important tasks in 2008
The football pools, our oldest game, can celebrate its
60th anniversary
in 2008
We were established in 1948,
which means we can now
celebrate being a source of
pleasure and profit for 60
years. Our oldest game, the
football pools, can also celebrate its 60th anniversary.
We have produced an anniversary book, which was
published to coincide with
the celebrations at the end
of March.
Registered gaming
We want to introduce mandatory used of
player cards for all our games (apart from the
Flax scratch card, where this is not technically possible). We will thereby become the
first country in the world with all gaming in
registered mode, which provides effective
age control while giving players opportunities to regulate their own gaming behaviour.
other year and is due to be carried out in the
spring of 2008.
Responsibility platform
Work on CSR and responsible business operation will continue to be pursued with great
vigour. (See page 22)
Gaming at the till
We are working with a pilot project on selling
games at the till in grocery stories. This will
involve various quick-play variants of Extra,
VikingLotto and Keno. Our goal is to test this
out during 2008.
Introduction of gaming terminals
To ensure revenues for voluntary groups
and associations, our gaming terminals will
replace the old machines which were prohibited on 1 July 2007.
New study of problem gaming
We financed surveys of compulsive gaming
and attitudes to gaming in 2005 and 2007.
A similar study will be carried out in 2008
before the new gaming terminals are rolled
out. This will pick up the effect of the ban
on gaming machines. Researchers worldwide
are awaiting the findings of this survey with
great interest, since it will measure the effect in a whole nation.
Reputation survey
Both the introduction of Keno and the
Nordby affair are expected to have affected
our reputation. This will be investigated in
our social accounting, which is compiled ever
54
55
Grassroots share
The government wants participants in our
games to be able to decide that five per cent
of their stake can go to a specified club, society, organisation or the like. We are working
on this scheme.
2007
social report
NOK 16. 4 million
is spent on inclusion measures and outdoor activities for children and young people
56
57
2007
2007
social report
58
59
2007

social report - Norsk Tipping

Transcription

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