dialogue - Norsk Tipping

Transcription

SOCIAL REPORT 2005
ethics: social responsibility:
customers: coworkers:
partners: gaming responsibility:
security: the environment:
dialogue
Contents [05:]
04:
Summary
Reidar Nordby Jr.
Key figures 2005
Goals 2006
06:
09:
Our social responsibility
Fun, responsibility and security
Players and customers
Gaming responsibility
Gaming security
19:
Growth in fellowship
25:
Equal worth
29:
The environment and society
Retailers
Suppliers
Our coworkers
The environment
Society
35:
Healthy management
Auditing
Corporate governance
We promise
to conduct our business in a
fashion that complies with or exceeds the ethical, commercial, legal,
social and environmental expectations society has of us.
Social responsibility
Highlights [05:]
The company’s management
adopted a new “Strategy and
plan for social responsibility”
in 2005.
Ethics
In 2005, we
revised and
adopted ethical
guidelines for
the company
that consist
of 10 basic
principles.
05:]
Dialogue
In 2005, Norsk Tipping had a more active
dialogue with all interested parties. This
involved meetings, personal conversations
and surveys, which are conducted regularly
regarding the public, winners, retailers,
coworkers and others.
Games renewal
We have actively worked to renew our games and increase
their availability. Innovations during the year have therefore
included the introduction of a new player card, new game
concepts with more prizes, and the testing of new channels,
including distribution via cell phones.
[05:]
SUMMARY
Social responsibility
is the foundation for our operations
Norsk Tipping has an exceptional position in the
Norwegian gaming market. We administer exclusive
rights, we are tasked with providing responsible
games, and the profits from our operations shall in
their entirety benefit Norwegian sports and culture.
Norsk Tipping’s operations are thus in every way
inextricably linked to society-at-large. Yes, in many
ways social responsibility forms the nucleus of our
contract with the Norwegian public and the foundation for our operations.
We take this responsibility seriously. The fact that
this year we are for the first time publishing a social
report as a separate publication, and not just as a
chapter in the annual report, is a tangible expression
of this.
Other milestones in our work in this area were:
> In 2005, we drew up a new “Strategy and plan
for social responsibility”, which is now being
implemented.
> In 2005, we revised and adopted “Ethical principles for Norsk Tipping”, which all coworkers have
received an introduction into and which also give
us obligations in relation to customers, retailers
and suppliers, among others.
> In 2005, we continued our work on making
sure that our purchasing routines now fully comply
with the Public Procurement Act.
> We have increased our efforts to minimize the
unfortunate aspects of money games and are working
closely with both researchers and family members.
> We have actively used the insights provided by
reputation and satisfaction surveys, and maintain
an open, active dialogue with all interested parties.
For an enterprise such as Norsk Tipping, social
responsibility runs wide and deep. It is about the
ethical core values that guide us. And about our
relationships with all the interest groups with
whom we interact: customers and players, coworkers,
retailers, suppliers, partners, the media, and the
authorities. Norsk Tipping enjoys a high level of
trust with all of them. It is through our social
responsibility that we prove ourselves worthy of
this trust.
Reidar Nordby Jr.
President and CEO
Norsk Tipping
Problem gaming
Highlights [05:]
We have increased our efforts to minimize
the unfortunate aspects of money games.
We conducted a survey of gaming habits in
cooperation with the market research company,
MMI, we contribute to the government’s
“Action Plan to Prevent Problem Gambling”,
and we work closely with research circles
and interested parties.
The environment
In 2005, we continued
our work on ensuring
coupons and programs
were approved as
environment friendly
with a green swan
label and in the future
will have a special
focus on energy.
PROFITS FOR 2005
Distributed for socially beneficial purposes
NOK
1 200 mill.
NOK
Sports
1 200 mill.
Culture
NOK
12 mill.
Measures related
to problem gaming
NOK
195 mill.
The Norwegian
Foundation for Health
and Rehabilitation
[ How we created value ]
[ How we distributed it ]
Games revenue
Value distribution
Customers wagered the following total amount
on Norsk Tipping’s games (MNOK):
The created value was distributed to national and local
government, employees, the company and retailers,
while by the far largest portion went to beneficiary
organizations.
9 203.2
Prizes
More than half the games revenue went to
winners as prizes:
- 4 828.7
Operating costs
To enable us to offer customers exciting games
and develop new ones we spent the following
on goods and services, development costs and
other costs:
935.2
Other income
Excluding pure games revenue, our other
income and financial income came to a total of:
200.4
Value created
We therefore created a total value of:
3 639.7
Value distributed to national and local
government
Total tax deductions (employees), employer’s payroll tax,
and employer’s contributions to pension funds that went
to national and local government amounted to:
107.5
Value distributed to employees
Total employees’ pay (excluding tax deductions)
amounted to:
110.6
Value distributed to retailers
Our almost 4 000 retailers received commissions from
games, player cards and prize payments amounting to:
689.8
Value retained by the company
To enable the continued development of the company
and our products, the following amount was allocated to
the investment fund:
125.1
Value distribution to beneficiary organizations
By far the largest portion of the created value therefore
went to the beneficiary organizations and amounted to:
2 606.7
Winners
In 2005, we continued our active follow-up
of winners, including offering financial advice
from an external company. In the summer
of 2005, we also conducted a survey of 70
previous winners.
[05:]
OUR SOCIAL RESPONSIBILITY
Norsk Tipping
and social responsibility
Society is constantly changing. One consequence of this is that society’s expectations
concerning companies’ and organizations’ behavior and their impact on society also
change. Traditionally, companies and organizations have been allowed to operate
relatively undisturbed by outsiders, as long as the laws and regulations are complied
with. Today most of them are experiencing that society expect and require them to
greatly increase their social responsibility.
Much of Norsk Tipping’s future success depends
on our managing to fulfill the expectations people
have of us. We have therefore chosen this as the starting point in our ethical guidelines:
“Norsk Tipping shall conduct its business in a fashion
that complies with or exceeds the ethical, commercial, legal,
social and environmental expectations society has of us.”
Even though Norsk Tipping was established to fulfill
important social needs such as raising money for
good causes in sports and culture, as well as ensuring
government control over money games, we know
that long-term growth and freedom can only be
achieved through actively responding to society’s
requirements concerning insight and expectations
with regard to social and ethical responsibility.
Norsk Tipping has noted that we are increasingly
having to respond to the expectations associated
with various aspects of gaming. Not least, we are
being held more responsible for the development of
the potentially negative aspects of gaming, such as
problem gaming. Our external relations have shown
us that there are fairly strong expectations with
respect to Norsk Tipping’s responsibility and involvement in this area. There is, of course, also a clear correlation between our ability to deal with such expectations and future constraints.
However, the expectations of Norsk Tipping exceed this. There are requirements stipulating that we
must run our operations in an environmentally friendly manner; there are requirements concerning
our marketing, that we exercise responsibility when
introducing new technology, and that we be a good
employer. In short, we are expected to exercise
responsibility and deliver results for all the bottom
lines – not just the financial one.
Retailers
Highlights [05:]
Throughout 2005 we have further developed
our service provision for retailers so that being
a retailer remains attractive. At the same time
we have further improved the work on training and control, so that retailers are in step
with us as regards ethics and security.
Purchasing
In 2005, we have
actively worked to
change and adapt
our purchasing
routines to ensure
compliance with
the Public
Procurement Act.
10:]
NORSK TIPPING’S ETHICAL RULES
CONSIST OF TEN BASIC PRINCIPLES:
Our approach to social responsibility
Norsk Tipping’s approach to social responsibility
shall fundamentally speaking build on three elements:
We particularly focus on groups that are important
when it comes to being able to achieve our social
and business related goals:
1:
We shall conduct our business in a fashion
that complies with or exceeds the ethical,
commercial, legal, social and environmental
expectations society has of us.
> Solid core values and a sound ethical platform
> A dialogue with our environment as a basis for
continual improvement
> Honest, relevant reporting and communications
Solid core values and
ethical platform
The nucleus of this is clear, well thought-out ethical
guidelines that provide a clear guide to what the
company stands for, and the ideals for which the
company fights. Norsk Tipping’s four core values are:
> Interaction – by this we mean mutual benefit,
focusing on interdisciplinary processes, knowledge
sharing and team building.
> Commitment – by this we mean enthusiasm,
feeling ownership, being good role models, experiencing job satisfaction, and caring for and about
each other.
> Courage – by this we mean being open to criticism and new ideas, daring to make choices and
decisions, challenging and delegating responsibility and authority, and a willingness to take risks.
> Performance – by this we mean producing
results and exploiting potential with a focus on
teams and individuals, requirements and consequences.
The ethical rules consist of ten basic principles (see
fact box). During 2005, these ethical core principles were revised, adopted and became a key element of the company’s internal training and organizational development.
Dialogue as a basis for improvement
Satisfying the society’s expectations requires a close
dialogue with the groups who have legitimate
interests with regard to how the company is run.
> Customers and players
> Coworkers
> Retailers
> Suppliers
> Beneficiaries
> Society – especially organizations, groups and
expert circles that represent people affected by the
gaming issues.
Honest reporting and communications
Even though over time social responsibility results
in increased trust and improves our reputation, it is
not a marketing discipline. This means that the
reporting done in relation to social responsibility
must be relevant to the genuine expectations that
exist in society, and true to the company’s results.
Over time, as social responsibility has evolved to
become a concept that most companies have to
relate to, certain international standards have evolved concerning what the concept should imply,
how the processes should be run, and in relation to
which criteria reporting should follow. This is partly due to a desire to make it possible to compare
different companies and partly because there has
been a need to create a framework that can help
the companies with the process of establishing
strategies and processes for social responsibility.
Norsk Tipping bases its strategy on current international best practice.
In our social and environmental reporting, we
have chosen to follow the principles stipulated in
the international “AA1000 Series”. This is an international certification standard that covers the
needs for routines, consultation and reporting
The standards involve the company basing its
operations on the principles of sustainable development and relating to ethical standards stipulated in
Internal dialogue
Over several years we have developed our
organization so that we can assume responsibility for gaming machines, but because of the
delay we have had to institute downsizing
here. This has happened in close consultation
with the employees’ trade unions.
Reputation
In our dialogue with
our milieu we are
attempting to increase our knowledge
about Norsk
Tipping’s role and
the causes the
gaming profits help
support.
2:
We shall conduct our operations on the basis
of responsibility, integrity and openness.
3:
We shall listen to our milieu and seek to
balance different groups’ interests in a way
that ensures a long-term perspective and
legitimacy.
4:
We shall satisfy the customers’ need for
entertainment and excitement within a
secure and socially responsible framework.
5:
We shall actively contribute to preventing
potential problems arising from our games.
6:
We shall offer our employees a good, safe
working environment in which taking
account of each individual coworker is
given his priority.
7:
Our relationships with suppliers and partners shall be based on honesty, integrity
and predictability with respect to mutual
requirements and expectations.
8:
We shall exercise responsibility and caution
in relation to the environment.
9:
We shall develop our operations within
socially responsible constraints with a view
to ensuring beneficiaries stable, long-term
funding.
10:
We shall continuously verify and quality
assure that the ethical principles are complied with in all our operations. The ethical
principles shall be revised and developed
regularly in relation to the new requirements society demands of us.
[05:]
OUR SOCIAL RESPONSIBILITY
OUR PARTNERS
Social responsibility is about how we talk to groups that have legitimate interests regarding our operations. These are
the most important groups among Norsk Tipping’s partners:
OUR MILIEU
>The authorities
>Society
>The environment
>Beneficiaries
>Interest groups
OUR PARTNERS AND US
>Coworkers
>Retailers
>Suppliers
OUR CUSTOMERS
>Players
>Winners
>At risk players
international agreements, treaties and recommendations, such as the UN’s Universal Declaration of
Human Rights, confederation of Norwegian
Enterprise, NHO’s Norwegian national recommendations for corporate governance, etc. The social
responsibility principles shall apply to all of the
company’s operations and be implemented in the
company’s normal routines and processes. The
social responsibility processes shall be inclusive,
transparent and based on an active dialogue with
our milieu, and the reporting shall be complete,
true and verified by a third party.
Given this, we have also chosen to let the international risk management company, Det Norske
Veritas, audit the annual social report (see page 36)
starting in 2005. The auditing of the social report
will be implemented as part of Norsk Tipping’s
work on social responsibility.
Challenges in 2005
> In 2005, Norsk Tipping has maintained a more
active dialogue with interested parties and systemized
this dialogue so that it can more precisely identify
social and ethical issues and expectations.
> Social responsibility has been the platform in
the company’s work on a new strategic plan for
2006-2008 and has been a key element in the
annual planning process.
> Norsk Tipping’s management group adopted a
plan for social responsibility for the company
based on the ”AA1000 Series” in June 2005.
> Measurement parameters linked to social
[8
NORSK TIPPING SOCIAL REPORT 2005
]
responsibility have been developed further.
> One of the goals in 2005 was to incorporate
social responsibility into the managers’ and relevant
coworkers’ evaluations of coworkers. This has not
been done systematically, but the company has
introduced management by objectives with accountability for results for each manager. This is followed
up on a quarterly basis with business reviews.
Intellectual capital
The term ‘intellectual capital’ covers the resources
that do not appear in traditional accounting, but
which are, nevertheless, important capital in a
company. This capital is measured according to
four parameters: business concept, organizationowned structural capital, human capital, and relational structural capital. Norsk Tipping conducted
measurements in 2000, 2002 and 2004. The next
measurements will be conducted in 2006 and be
reported in next year’s social report.
Goals and
plans for 2006
It is important that we further develop our processes for dialogue and consultation with stakeholders
and focus on reporting on these dialogues, so it
becomes easier for stakeholders to verify what we
say and in order to ensure that issues brought up
in this dialogue are taken account of in our
evaluations and decision making processes.
[fun]
responsibility and security
fun and
good gaming experiences within a healthy, responsible
We promise our players and customers we will provide
and secure framework.
>>
[05:]
PLAYERS AND CUSTOMERS
Positive gaming experiences
through competitive games
Norsk Tipping’s ambition is to be among the best in Norway at providing
positive customer experiences. Gaming is, and should be, some added spice
in one’s everyday life. We want customers with a healthy attitude to money
games, so we have a clear internal focus on creating a good balance.
Challenges in 2005
The most important market related challenges in
2005 were associated with:
JAN PEDER STRØMSLID
Vice President Sales & Marketing
[email protected]
THORBJØRN UNNEBERG
Senior Vice President Solospill
[email protected]
> increased competition and revision of the games
> fulfilling our social responsibility
Due to the increased competition from other actors
we have in the last two years had 150.000 fewer customers. Revising the games has therefore been an
important job, as has increasing the availability of
our games through, among other things, the introduction of a new player card and the development
of new channels.
At the same time it is important that our market
activities are in accordance with our social policy
tasks. We have tried to ensure this through, among
other things, the implementation of the government’s
new guidelines for marketing and stricter monitoring
of the 18-year age limit for Oddsen.
Activities
GAMES RENEWAL
In addition to competition having increased, it also
appears that money games have a limited life cycle
and need regular revision in order to remain dynamic. Most of Norsk Tipping’s games have been on
the market for many years and are now undergoing
a phase in which the revision of the concepts is
[ 10
]
important in order to maintain their attractiveness in
the market.
The most common method of maintaining a
game’s attraction over time is to increase the first
prize. This is also something that Norsk Tipping will
have to consider, but in 2005 we chose to bet on
new concepts instead, in which players have extra
opportunities to win.
Taking this principle as our starting point we carried out the following activities in 2005:
> Lotto: We had two Lotto drawings in 2005 in
which we ran the ‘One number is enough’ supplementary game. This involves the extra drawing of
one number where all the players who have this
number are entered into a drawing in which five
winners receive NOK 1 million.
> Extra: “Lukelønn” has been carried out once with
Extra. This involved everyone who played on this
Tuesday having a chance to win between NOK
100.000 and NOK 1 million as an additional prize.
> Oddsen: Starting on 18 November we expanded
our selection of game events from 60 to 117 playable
games in every Langoddsen program. This ensures
more interesting game events, especially in the
spring and fall. At the same time as this change was
introduced, the system of two Oddsen programs on
the weekend came to an end, so that retailers who are
closed on Sundays can also accept wagers on games
Increasing
satisfaction
Each quarter Norsk Tipping conducts a customer survey
where we measure the customers’ satisfaction with
the company and the company’s goods and services.
EXPERIENCED CUSTOMER SERVICE
All customer groups, retailers, retailers’ players and online players, have experienced an
increase in the quality of the company’s customer services.
79,3 %
82,3 %
> 80
Q4 2004
Q4 2005
Target
OUR
Customer survey: 2004-2005
CUSTOMERS
>Players
>Winners
>At risk players
that take place on that day. The midweek program
was also expanded from 60 to 117 games.
NEW CHANNELS
Because more and more players expect the game
events to be available through all channels, we
conducted a trial project involving the distribution of
games via cell phones. The project will be evaluated
in 2006, and any further development will take place
after this evaluation.
NEW PLAYER CARD
On 24 October 2005, Norsk Tipping introduced a
new multifunction player card with increased security. The most important changes to the player
card are:
> valid for 3 years compared to only 1 previously
> improved security through the use of chip technology instead of a magnetic stripe
> increased security against financial crime through
the requirement of a Norwegian national identification number and personal ID
> increased functionality because the card can be used
to register games, pay for them and receive prizes
> a permanent player number that the customer
can transfer to his or her next player card
> a separate player account linked to the customer’s
own bank account
Few problems were experienced with the introduction of the new player card.
We have experienced sporadic incidents in connection with the fact that the price one pays when
it is issued has increased from NOK 20 to NOK 60.
The card’s duration of validity has meanwhile
increased from one to three years, so the price is
really the same.
Some customers have reacted to being asked
for their Norwegian national identification number. This is necessary, however, to ensure address
confirmation, which in turn increases security,
ensures correct payments and counters criminal
misuse of the cards.
sidebar]
What our customers
and players think
Our target for customers’ overall satisfaction is 70
out of 100 achievable points. This applies to both
players who play via retailers and online players.
At the end of 2005, the figures were 68.5 points
for retailers’ players and 71.5 points for online
players, which represents a positive development
relative to 2004.
Retailers’ players are the least satisfied with
prices and especially satisfied with the personal
service they receive from the retailer. In the case
of online players there is both increasing overall
satisfaction and an improved reputation relative
Dialogue with
the market and winners
MARKETING
Norsk Tipping’s ambition is to get the players to
choose from an attractive and responsible selection
of games in a controlled Norwegian money games
market. For us this means that an extra marketing
effort also has to be followed up by a focus on
control, security, and responsibility in relation to
our market communicatios.
Despite the fact that our competitors intensified
their marketing, Norsk Tipping reduced the extent
of its paid communications. In 2005, we spent
NOK 95 million (including VAT), which represents
a reduction of NOK 17 million relative to 2003.
to corresponding surveys in 2004, while the
biggest gains in satisfaction can be made relative
in other actors. Both online players and retailers,
who both have a direct relationship with Norsk
Tipping, give our customer services a regular and
consistent score in excess of 80 points.
[05:]
PLAYERS AND CUSTOMERS
RETAILERS’ PLAYERS
The satisfaction of customers who play via retailers remains constant
[ Winners ]
and is just under Norsk Tipping’s target.
Number of winners of more than
NOK 1 million (all games)
319
Number of winners of more than
NOK 1.5 million who have been
offered financial advice
191
68 %
68,5 %
> 70
Q4 2004
Q4 2005
Target
Customer survey: 2004–2005
Number of winners who accepted
45
financial advice
[ Winner behavior ]
Norsk Tipping asked 71 Lotto millionaires some
questions about their thoughts and behavior
since they became Lotto millionaires.
Number of Lotto millionaires called:
71
Did you buy a new car?
55 yes
16 no
WINNERS
Winning several million Norwegian Kroner can in
itself be a challenge to some people. Norsk Tipping
therefore has a well-designed system for following
up winners:
> We guarantee full anonymity to winners who
want to shield themselves from any media coverage
and other attention.
> We personally contact everyone who wins more
than NOK 1 million.
> Everyone who wins more than no 1.5 million is
offered free, independent financial advice from an
external partner.
> If you win NOK 10 million or more, we offer follow
up for an entire year.
Did you repay debt?
45 yes
7 no
9 were debt free
Did you take a vacation?
35 yes
36 no
Do you still play Lotto?
69 yes
Of which 37 play quick pick
32 on winning numbers
In 2005, we personally contacted 319 winners.
45 accepted our offer of financial advice.
In the summer of 2005 we conduced a survey
among 70 previous winners. The results from this will
be used to further develop our system for winners.
Winner survey: June 2005
[ 12
On 10 June 2005, the Ministry of Culture and
Church Affairs introduced guidelines for state-controlled money games. These only entailed small
changes in relation to our principles – and the selfassumed ethical guidelines we already use as the
starting point for our marketing. In 2005, we have
been more clear about the chances of winning
when advertising rollover jackpots. All written
communications also state when a rollover jackpot
was last paid out. The Norwegian Gaming Board
has been tasked with ensuring that state-controlled
money games comply with these guidelines.
]
Plans and
goals for 2006
In 2006 we are going to work on:
> continuing to develop the number games,
Lotto, Joker and Extra, to ensure the attractiveness
of the games
> renewing production equipment so that we can
more easily develop the sports games and introduce
product improvements and new variations of games
more quickly
> restructuring our services for big winners from
financial advice to financial guidance, a service
that during the spring of 2006 will also be put out
to public tender
> conducting a new, major survey among big
winners to gain more knowledge about what life is
like after a big win
07:]
68,6 %
Q4 2004
ONLINE PLAYERS
The satisfaction of custo-
[ New players ]
mers who play online has
increased and just exceeds
Diverse games
Norsk Tipping’s target.
Below is a summary and profile of Norsk
Tipping’s games, based on the proportion
of the Norwegian population age 15 and
older who played one or more times
during the last three months.
Number of registered players since
launch of new player card
(24 Oct. – 31 Dec. 2005)
373625
Registered at retailer:
367351
Registered online:
71,5 %
Q4 2005
Customer survey:
2004-2005
1:
6274
> 70
2:
Target
3:
PLAYER CARD
Number of registered new player cards since launch (24 Oct. 2005 – 31 Dec. 2005)
38 9890
Number of old player cards registered during same period last year (24 Oct. 2005 – 31 Dec. 2005)
36 3855
Change
7.20 %
4:
POPULATION DATA
2000
2001
2002
3 583 780
3 601 005
3 617 766
Norsk Tipping total
2000
74.2 %
2001
72.9 %
2002
72.3 %
2003
71.7 %
2004
70.3 %
2005
68.5 %
Lotto
62.4 %
62.0 %
60.4 %
57.5 %
56.6 %
54.8 %
Viking Lotto
29.7 %
27.8 %
27.7 %
27.3 %
27.8 %
24.8 %
Extra
26.0 %
22.5 %
24.4 %
24.9 %
24.4 %
23.1 %
Joker
8.0 %
15.2 %
21.5 %
23.2 %
26.6 %
27.1 %
Tipping
16.9 %
15.9 %
13.4 %
11.7 %
11.5 %
11.6 %
Oddsen
8.7 %
9.1 %
9.3 %
8.6 %
7.9 %
8.7 %
Flax total
22.0 %
21.2 %
25.6 %
28.3 %
29.1 %
28.6 %
Population over 15 years of age
2003
2004
2005
3 641 924 3 666 921 3 697 045
PLAYER BASE
Measured in %
NB! The figures for each game cannot be totaled/accumulated, since the same customer may have played several games.
Source: Market Tracker – TNS Gallup.
PLAYER BASE FOR NORSK TIPPING GAMES
Measured in number of customers (in 1000s)
Norsk Tipping total
2000
2 659
2001
2 625
2002
2 616
2003
2 611
2004
2 578
2005
2 532
Lotto
2 236
2 233
2 185
2 094
2 075
2 026
Viking Lotto
1 064
1 001
1 002
994
1 019
917
Extra
932
810
883
907
895
854
Joker
287
547
778
845
975
1 002
Tipping
606
575
485
426
422
429
Oddsen
312
328
336
313
290
322
Flax total
788
763
926
1 031
1 067
1 057
NB! The figures for each game cannot be totaled/accumulated, since the same customer may have played several games.
Player base: % of population (over age 15) who played one or more times during the last 3 months.
Number of people: calculated from the population figures from Statistics Norway as of 1 January each year – age group over 15.
Market Tracker: a telephone survey of a representative sample of the Norwegian population aged 15 and older.
5:
6:
7:
Lotto:
Player base (number of players): 2.026.000
Average stake: NOK 44
Average age: 47
Gender distribution: 49% men, 51% women
Viking Lotto:
Player base (number of players): 917.000
Average age: 49
Joker:
Player base (number of players): 1.002.000
Average age: 48
Ekstra:
Player base (number of players): 854 000
Average age: 48
Flax:
Player base (number of players): 1 057 000
Average age: 42
Oddsen:
Average age: 36
Tipping:
Average age: 41
Method: a telephone survey of a representative sample of the Norwegian
population age 15 and older. The
number of customers is calculated on
the basis of the population figures from
Statistics Norway as of 1 January 2005.
The average stake is calculated on the
basis of the average weekly accrued
turnover divided by the number of
players in an average week.
[05:]
GAMING RESPONSIBILITY
Gaming responsibility in
all links
Norsk Tipping is tasked with providing excitement and entertainment to the
Norwegian public in the form of informal fun. The players should not experience
our operations leading to addiction or other undesirable behavior.
As Norway’s largest gaming company we have a
special responsibility to take good care of our players,
even though surveys concerning problem gaming
show that it is not our games that first and foremost
trigger compulsive gaming.
Norsk Tipping’s work on gaming responsibility
shall be based on a consistent, lasting policy independent of fluctuating external pressures and trends
in public debate. All decisions in this field shall be
based on internationally acknowledged information.
GRETE SOLLI
CSR Manager
[email protected]
Challenges in 2005
The most important challenges in 2005 were associated with:
> finding a balance between attractive and
responsible gaming
> ensuring adequate training and information
concerning problem gaming behavior
> obtaining adequate factual knowledge and
staying up-to-date with research on the subject
> maintaining an open dialogue with expert and
treatment circles, and other professional circles
Since the introduction of a program for gaming
responsibility in 2004, the further development and
follow-up of this program has been an important
topic. The program contains measures aimed at
players, retailers, our own employees and the rest of
society.
[ 14
]
Activities
The prioritized measures in 2005 were:
> checking that the 18-year age limit for Oddsen
is being complied with (supplementary reporting
on page 20)
> remaining up-to-date on research and information
about problem gambling, both national and
international
> maintaining our good contact with professional
circles
> participating in national and international
conferences on problem gambling
> providing financial support to the pan-Nordic
problem gaming conference arranged by SNSUS
(Nordic Foundation for Information on Problem
Gambling)
> ensuring good, adequate information to
customers about their chances of winning and
about the number of the helpline
> developing the content of our retailer course
> continuing the implementation of gaming
responsibility in all links in the organization
SURVEYS
In our work on responsible gaming operations we
want to base all our decisions on a good, solid knowledge base. This was one of the reasons that in 2005
we ordered and funded a survey on money games
Dialogue
about problem
gaming
The work on problem gaming is a key part of the company’s
social responsibility work. In order to obtain sufficient and
continuous knowledge, it is absolutely necessary to maintain
a close dialogue with various expert circles in this field.
by the market research company, MMI. “Survey on
money games. Gaming behavior and problem
gaming in the population”. The Norwegian
National Center for Addiction Issues and the
Gaming Institute (Sweden) were responsible for
the technical aspects of the survey.
The survey is based on responses from 3.135
people and resulted in an estimate that 1.9 percent
of the population (approx. 71.000 people) have
issues with money games and that 3.6 percent can
be classified as players at moderate risk (approx.
133.000 players).
At-risk and problem players spend far more
money on gaming than ordinary players, and spend
the largest proportion of this online and on gaming
machines. Of our products they spend the most
money on Oddsen. Lotto proved, not unexpectedly,
to be the game that gained most of its turnover
from players without problem-gaming issues.
ACTION PLAN TO PREVENT PROBLEM GAMBLING
Each year 0.5 percent of Norsk Tipping’s profits are
allocated to research, information and the prevention of issues with money games.
The main goals are:
> to increase the knowledge base on money
games and issues with money games
> for fewer people to develop issues with
money games
> to reduce the scope of harm caused by issues
with money games
NOK 12 million from Norsk Tipping’s profits were
distributed between the responsible professional
departments in 2005.
Stakeholder dialogue, players, partners
and society
It is important for Norsk Tipping to seek knowledge
and experiences from outside the company in relation to this subject. Our job is to build good relationships with both national and international experts,
and with various groups with an interest in this field.
During the year we maintained a formal and
informal stakeholder dialogue experts, groups and
organizations. Our goal is to have open and honest
relationships in which feedback is regarded as constructive.
We disagree on some points, and this will
always be the case between the gaming industry
and those who work with problem gaming.
However, as long as we share a goal of having the
fewest possible people with problem gaming issues, we still see an opportunity for a good, constructive partnership.
Dialogue with customers/players:
> The survey we commissioned from MMI has
provided us with valuable information about the
subject of problem gaming behavior and the feedback our players provided us with on this subject.
Dialogue with expert circles:
> Since 2003, we have had a professional partnership
with psychologist Thomas Nilsson at Spelinstitutet
(the Gaming Institute) in Sweden. Nilsson looks at
our responsible gaming work as a whole and provides
advice and guidance.
> Norsk Tipping works closely with the The
Norwegian National Center for Addiction Issues,
the only state competence center in Norway with
a focus on problem gaming. Besides regular contact about issues associated with problem gaming,
the center has this year been responsible for the
technical aspects of the MMI survey on problem
gaming. This cooperation has also resulted in the
production of a brochure and the improvement of
a fact booklet on problem gaming.
> Despite the fact that we no longer support the
helpline through direct funding, we maintain regular contact and utilize the knowledge from their
statistics and results in our work.
> Our dialogue with the Blue Cross and their work
on problem gaming has resulted in, among other
things, us starting production on a training film
about problem gaming.
Interested organizations:
> We have also worked together with the Nordic
foundation SNSUS. This resulted in two meetings
to share experience and financial support/cooperation regarding a conference. The conference took
place in Malmö on 29 June 2005.
> Norsk Tipping maintains a regular dialogue
with the Norwegian association for questions concerning money games (NFP), including an online
forum that deals with problem gaming. Norsk
Tipping participated with four representatives in
NFP’s problem gaming conference in Hamar in
OUR
CUSTOMERS
>Players
>Winners
>At-risk players
sidebar]
Families of
compulsive gamers
PTS (families of compulsive gamers) is one of the
organizations Norsk Tipping shares experience
with. PTS works with various expert circles in the
field of problem gaming, and works to establish
groups in which members can help themselves
and others in difficult situations. PTS was established in January 2003 on the initiative of Lill Tove
Bergmo.
Lill Tove Bergmo was very sceptical about
Norsk Tipping when the company contacted her
and wanted to open a dialogue.
“After personally experiencing the consequences
of problem gaming, I was naturally skeptical
about the gaming industry in general and knew
little about both the market and the actors. I had
no expectations other than that this would be a
battle with powerful forces. I was therefore extremely surprised when I was met with humility,
understanding and genuine interest concerning
problem gaming. Norsk Tipping acknowledged
that they had a lot to learn and that knowledge
about problem gaming is a key part of running
responsible gaming operations.”
“Since the first meeting, Norsk Tipping has
put some of its own people exclusively to work on
problem gaming, and the dialogue has been very
good. We have had one formal meeting with
them during the year, but there have also been
informal meetings, and we have regular telephone
contact,” says Bergmo.
[05:]
GAMING RESPONSIBILITY
PROBLEM GAMING
Classification of the Norwegian population
(over age15) by degree of gaming problems:
September 2005.
> We regularly share experience with PTS Norge
(families of compulsive gamers) throughout the
year, primarily via their chairperson Lill Tove
Bergmo. Norsk Tipping met with the PTS’ board in
Hamar in March 2005.
The gaming industry:
> Norsk Tipping, Dansk Tipstjenste, Svenska Spel
and Veikkaus have for several years held cooperation
meetings to discuss their experiences concerning
their work on gaming responsibility. In 2005, we
held three meetings: two in Sweden and one in
Norway. The companies also regularly share experience via other channels.
> Norsk Tipping is a member of the World Lottery
Association (WLA) and has signed the WLA’s Code
of Conduct. In 2005, Norsk Tipping played a very
active part in discussing and formulating a set of
common rules concerning gaming responsibly
that all member enterprises agreed to at the world
conference in Mexico in February 2006.
83.1 %
No gaming problems
11.4 %
Low-risk players
Plans and
goals for 2006
and the professional circles within problem gaming
> participating in the public debate and reaching
an agreement on what responsible gaming operations entail and the role and responsibility Norsk
Tipping has in this area
> increasing our focus on problem gaming training
by developing a learning module and completing
a training film on gaming responsibility that will be
shown to our employees and retailers
> revising a brochure for retailers about responsible
gambling and republishing this in the spring of 2006
> verifying our work on gaming responsibility
with the help of external expertise, both through
continuing our work with psychologist Thomas
Nilsson and external verification in cooperation
with the Nordic national gaming companies
> focusing more intensely, in all our information,
on the principle that the customer should be able to
make an informed choice based on sufficient, necessary and timely information about the possible
implications linked to gaming
> carrying out a follow-up of the survey on problem gaming in the summer of 2007
In 2006, we will work on:
> maintaining good relationships with the authorities
3.6 %
MONEY GAME PLAY BY PLAYERS WITH VARIOUS GAMING BEHAVIORS
Moderate-risk players
Players who have different degrees of issues with problem gaming behave very differently in relation to different
types of games. The table shows how many Norwegain Kroner a player spent the last time they wagered, distributed
among players in total, players without gaming issues, low risk players and players at risk and with gaming issues.
1.9 %
Risk
Problem gamers
All players
Players without
issues
Low-risk players
Players at risk and
with gaming issues
781
134
239
2143
89
31
64
392
Horses
121
96
134
244
Bingo
111
102
97
190
Oddsen
89
66
79
174
Tipping
72
63
77
127
Scratch tickets
81
82
73
89
Lotto
80
79
88
83
Online gaming
Gaming machines
MMI survey on money games: 2005
Flax
43
39
45
73
Viking Lotto
71
70
73
69
Joker
39
38
39
48
Extra
46
48
42
41
[ 16
]
Secure and safe
gaming administration generates trust
One important prerequisite for successfully achieving the company’s purpose
is that customers, partners and society-at-large trust us. Gaming security is
an important factor for gaining trust.
WERNER BOSAAEN
Head of Security
[email protected]
The term gaming security covers two main
processes:
> That sales of games, the conducting of drawings
and the payment of prizes are carried out in a correct,
consistent and secure manner.
> That our retailers and players administer and
use our games within the agreements and regulations that apply.
Norsk Tipping bases its security work on a standard published by the World Lottery Association,
the WLA Security Control Standard. This standard
stipulates requirements concerning the routines
and processes that we have to have in place. Norsk
Tipping is annually certified by Det Norske Veritas in
relation to whether or not we meet this standard.
Challenges in 2005
The most important security-related challenges in
> cases in which our retailers have allowed players
to play on credit
> monitoring abnormal gaming activity by retailers
and players
> cases in which we have suspected that our
games are being misused for laundering the proceeds
of criminal acts
The follow-up of abnormal gaming activity by
retailers and players is done in order to achieve the
purpose for which Norsk Tipping AS was established, as described in section 2 of our articles of
association:
“provide and organize satisfactory forms of money
games under public control, with a view to preventing
negative consequences from the money games.”
In 2005, two retailers lost their positions after allowing gaming on credit. One of these went to court
to regain his position, but lost in two courts. After
these cases we sent out reminders and more detailed
information about the regulations for our retailers.
These are also described in our retailer newsletter.
Dialogue with players, partners and society
We maintain an active dialogue about gaming
security, security risks, and deviations with players,
retailers and the authorities.
Dialogue with retailers:
> We continuously monitor gaming activity and
payments from our retailers. Our collection routines were made stricter several times in 2005.
During 2005 we canceled our agreements with
four retailers and reported them to the police
because of financial infidelity against Norsk
Tipping. In addition to this we know of two cases
in which a retailer has reported employees for
embezzlement and/or misappropriation of funds.
[ NORSK TIPPING SOCIAL REPORT 2005 17 ]
[05:]
GAMING SECURITY
The cases have not had any financial consequences
for Norsk Tipping.
[ Follow-up ]
RISK AND BREACHES OF GAMING SECURITY:
We continuously analyze risk for both
players and retailers and follow-up specific
cases in which there has been a breach of
gaming security.
Follow-up of risk and security breaches
because of misappropriation of funds
against Norsk Tipping
4
Number of retailers reported to police
because of misappropriation of funds
against Norsk Tipping
4
Number of letters sent out because of
abnormally high gaming in 2005
36
Dialogue with players in the danger zone:
> Abnormal gaming activity by players is followed
up in accordance with objective criteria that we
have established. Players who pass certain amount
limits for total gaming during the last 365 days
receive a letter from us in which we make them
aware of the scope of their gaming activity. We
inform them that all gaming is associated with a
risk of losing and ask them not to play for more
than they can afford to loose. In 2005, we sent
letters to 36 players.
Legal authorities:
> In 2005, we testified in several legal proceedings in which there was a suspicion that our prize
certifications and unregistered gaming receipts
with prizes may have been used in an attempt to
launder the proceeds of criminal acts. We monitor
gaming activity to uncover the laundering of
money if possible. We also cooperate with the police and the prosecuting authorities to gain knowledge about cases of possible document misuse so
that we can implement measures against retailers
who may be involved in this activity.
The Norwegian Gaming Board:
> This authority plays an important role with
regard to following up drawings and the payment
of prizes to the correct winners. During 2005, we
moved the location of physical drawings outside
Norsk Tipping’s premises. In connection with this
we did a lot of work on testing and practicing,
including in cooperation with the Norwegian
Gaming Board. We follow-up deviations with the
Norwegian Gaming Board on an ongoing basis
and hold three or four meetings a year in which we
coordinate changes and evaluate in order to
improve routines and processes.
In 2005, we also implemented the following
measures to communicate with interested parties:
> Meetings with the security managers of the
major chains that organize many of our retailers
[ 18
]
> Meetings with and visits to suppliers of scratch
tickets
> Meetings with and visits to providers of services
associated with the new player card
> Meetings with the police and prosecuting
authorities concerning the challenges represented
by the use of our games for money laundering and
criminal acts committed by/at retailers
> Meetings with the contact committee for retailers
in which various factors concerning performing
the role of retailer were discussed
Plans and
goals for 2006
During 2006 our goal is to implement the following
measures regarding gaming security:
> Two meetings with the security managers of
chains that organize retailers.
> Four meetings with Buypass AS to follow-up
gaming security in relation to our new player card.
> The establishment of a system involving an
annual statement of prizes instead of sending out
prize certifications to those who win more than
NOK 50 000 on an ongoing basis.
> Three or four meetings with the Norwegian
Gaming Board to follow-up changes and deviations.
> Continued follow-up of abnormal gaming activity
by retailers and players through internal measures
and meetings of the gaming security steering group.
> The establishment of reporting and routines
enabling us to send a second letter to players with
abnormal gaming activity.
> Targeted information to retailers about their
responsibility to prevent the abuse of our games
and about the possible consequences of breaking
the law, e.g. by contravening Section 317 of the
General Civil Penal Code: aiding and abetting the
securing of proceeds from criminal acts.
[Growth]
of fellowship
We promise to make clear,
professional demands of our partners,
who shall be able to grow and evolve together with us.
>>
[05:]
RETAILERS
Good availability and
great integrity
The retailers are Norsk Tipping’s external public face and our principle ambassadors.
Every week nearly 4.000 retailers with a total of 15.000 – 16.000 employees are
involved in the sale of games for Norsk Tipping.
JAN PEDER STRØMSLID
Vice President Sales & Marketing
[email protected]
THORBJØRN UNNEBERG
Senior Vice President Solospill
[email protected]
Completed
FURTHER DEVELOPMENT OF THE RETAILER SYSTEM
Norsk Tipping has chosen two main areas for its
work on the development of the retailer system:
> Internal development to ensure that being a
Norsk Tipping retailer remains attractive, including
the development of differentiated service concepts
that can be adapted to each individual retailer’s operations.
> Activities, training and supervision with a view to
ensuring that our values and attitudes concerning
responsibility are communicated to retailers.
> information campaigns targeted at retailers
> information about sanctions linked to a failure to
comply with the 18 years age limit
> spot checks of retailers with the help of the security company, Falck
Challenges in 2005
The most important challenges in 2005 were associated with:
> monitoring the 18-year age limit for Oddsen
> new player card
> the industry’s rapid evolution
> differentiated retailer development
> increasing competition
[ 20
]
activities
In 2005, a total of 203 million sales transactions were
sent in to Norsk Tipping’s central system from our
retailers, which make the retailers our absolutely
most important distribution channel.
The retailers also have an important responsibility
to ensure that the games are promoted in a responsible manner that prevents any potential unfortunate
aspects of gaming such as problem gaming, money
laundering and gaming on credit.
18-YEAR AGE LIMIT FOR ODDSEN
Because Oddsen is potentially the one game we run
which entails the greatest risk of problem gaming,
Norsk Tipping introduced a self-imposed 18-year
age limit for playing Oddsen. One of the main priorities for 2005 was to ensure the effective enforcement of this at retailers. This was done through the
following three types of measures:
In connection with the sale of odds games, retailers
are supposed to check the ID of all odds players
under the age of 23 to ensure the 18-year age limit
is complied with. The inspectors who conducted spot
checks during 2005 where all at least 18 years old,
but well under 23. Based on the spot checks that
have been conducted, more than 80 per cent of the
retailers did not ask for age ID when selling to our
inspectors. This result shows that a lot of work
remains to be done before Norsk Tipping can feel
satisfied with the enforcement of the 18-year age
limit for Oddsen.
Feedback from some of our retailers may indicate
that there is a conflict in values and interests with
Good, consistent
customer services
Retailers are an extremely vital part of Norsk Tipping’s
value chain, and it is therefore important to analyze
the degree of service they receive and their satisfaction.
regard the age limit. They think it is difficult to ask
for ID from a customer whom they think is over 18.
Some retailers also think that they have a good tradition of showing responsibility in the sale of games
and that they are good at assessing a customer’s
age through observation.
Norsk Tipping will continue its dialogue with its
retailers concerning this problem and increase its
efforts with respect to training, information and
monitoring. As a final solution we will also utilize
our option to impose sanctions, which in the ultimate consequence may result in the retailer losing
their post.
NEW PLAYER CARD
Norsk Tipping launched its new player card in
October 2005. 1,850 retailers were visited in the
space of the final few weeks prior to its launch to
ensure a pain-free introduction of the player card.
The remaining retailers were called by customer
services. As a result the new player card was introduced without technical problems. Almost half a
million cards were issued in the course of the year’s
last three months.
GAMING AT THE REGISTER
One of the development measures in 2005 was a
trial project involving gaming at the register. Five
retailers had an opportunity to offer ‘lightning’
gaming directly at the point of sale. The project
will be evaluated in 2006, and any further development will take place after this evaluation.
COURSES AND TRAINING
Norsk Tipping held 47 retailer courses during 2005
with a total of 686 participants. All those holding
new positions as retailers were called into Norsk
Tipping for training. The course subjects involve
training in all the practical things one has to know
to be a retailer, and they also include subjects such
as ethics and gaming responsibility. The content of
the course was adjusted in the fall of 2005 because of the introduction of the new player card.
ting of retailer positions on any special district policy considerations. This is balanced somewhat by
our participation in the Merkur Program under the
auspices of the Ministry of Trade and Industry.
The program is threefold and has the following
goals:
> To facilitate the maintenance of good quality
service provision in the periphery through the further
development and improvement of the existing
service provision.
> To ensure the local population in the periphery
access to a grocery store near their home.
> To contribute to increased comprehension
among the population and politicians of the
importance of the grocery store in one’s local
neighborhood.
In 2005, 12 retailer positions were established
thanks to the cooperation with Merkur. The criteria
for obtaining a retailer position under this program
include the applicant being a typical rural store,
the applicant being a participant in the Merkur
project, and the turnover from gaming averaging
at least NOK 8,000 per week.
INCREASING COMPETITION
Money games are not meant to compete through
the use of financial incentives. This is a steadily
increasing dilemma for Norsk Tipping, also with
regard to the retailers. For example, by approving
the Yezz scratch tickets run by Norske Spill, the
authorities have helped establish a competitor for
Norsk Tipping’s Flax tickets through the same distribution channel.
Norske Spill is currently offering double the
commission from the sale of its scratch tickets
compared with Norsk Tipping’s commission. This
is a strong financial incentive to retailers, and the
most important reason why Flax experienced a fall
in turnover in 2005 that reduced the contribution
to the beneficiaries by NOK 60 million. This is a
dilemma and a challenge for the company.
OUR PARTNERS
AND US
>Coworkers
>Retailers
>Suppliers
sidebar]
What retailers think
Every quarter, Norsk Tipping conducts a customer
survey in which retailers are included. The survey
looks at both players’ satisfaction with retailers
and the retailers’ own assessments of Norsk
Tipping.
We have noted a slight fall in total satisfaction,
which is mainly due to Norsk Tipping not living
up to the retailers’ expectations to the extent
they did before. The level of satisfaction however
remains close to the target figure, which is 75
out of 100 achievable points.
The games are the most important driving force
behind satisfaction, and here the level of satisfaction remains high and stable. This indicates that
the retailers are satisfied with the attractiveness
of the games. There is, however, some room for
improvement regarding the number of games
because many people think, for example, that
there are too many types of Flax ticket. In the
NEW RETAILERS
Norsk Tipping stipulates strict criteria when granting positions as retailers, with respect to both
finances and suitability. The number of retailers
increased by 107 in 2005. Norsk Tipping now has
a total of 3.954 retailers.
Norsk Tipping does not usually base the gran-
Dialogue with retailers
Stores are increasingly coming under the management of chains through defined chain concepts.
Several chains also own the stores themselves,
which helps to increase the degree of central
management of those of our retailers who belong
to one of the major chains. A dialogue and contact
case of customer services, Norsk Tipping regularly
and consistently scores higher than the target
figure, which in relation to retailers lies above 80
out of 100 attainable points.
RETAILERS
3954
[05:]
x
x
with the chains is becoming increasingly important
in ensuring that money games are prioritized as a
product group.
x x
3847
x
3840
3846
3849
x
x
x x
The most important elements of the dialogue with
retailers are:
> a formalized dialogue and contact schedule
with individual retailers and chains
> continuous, ongoing cooperation on campaigns,
development plans, day-to-day operations and skills
development
> direct dialogue with each individual retailer
through our sales managers and customer services
> regular surveys to measure the retailers’ satisfaction with Norsk Tipping, in which the results form
the basis for specific improvements in the cooperation with retailers
> meetings with the retailers’ contact committee.
This committee consists of representatives of the
chains, independent retailers, and committee
members from the Federation of Norwegian
Commercial and Service Enterprises (HSH). Three
meetings were held in 2005.
x x x x x
x x x x x
01
02
03
04
05
NUMBER OF RETAILERS
4470
As of 31 December 2005
x
4379
x
4364
4343
4386
x
x
x
x x x x
x x x x x
x x x x x
x x x x x
01
02
03
04
Plans and
05
NUMBER OF TERMINALS
660 mill.
x x x
682 mill.
x x
711 mill.
729 mill.
741 mill.
x
goals for 2006
In 2006, Norsk Tipping is planning to invest in new
digital flatscreens for all retailers. The screens constitute an important part of our retailer concept
and open the way for a totally new method of
communicating with customers. The screens will
facilitate future central management of content,
which will ensure that the retailers get correct, upto-date information at the right time. The new
solution will thus save retailers time in connection
with the follow-up of campaigns. At the same time
this will produce savings through reduced advertising
material costs for Norsk Tipping. The new screen
will be installed as of the month of May.
x x x
Otherwise we will specifically work on the following in 2006:
x x x x
x x x x x
> Continuing our focus on retailer development
with special planning concepts adapted to our
partners’ needs. We will introduce separate skills
programs adapted to the various chains and have
a more differentiated follow-up of the customers
based on individual needs.
> Increasing utilization of the potential inherent
in new technology for training purposes as well.
x x x x x
x x x x x
01
02
03
04
05
TOTAL REPORTED
RETAILER REMUNERATION
[ 22
]
We are therefore planning to introduce eLearning
for retailers in the spring of 2006.
> Continuing our focus on the 18-year age limit
in which we will continue our cooperation with the
security company Falck to check age limits at our
retailers, while at the same continuing our information and public awareness campaigns.
RETAILERS PER COUNTY
At the end of 2005, Norsk Tipping had 3.954 retailers
in its nationwide network, distributed as follows:
Retailers per county
Akershus
Aust-Agder
Buskerud
Finnmark
Hedmark
Hordaland
Møre og Romsdal
Nordland
Nord-Trøndelag
Oppland
Oslo
Rogaland
Sogn og Fjordane
Sør-Trøndelag
Telemark
Troms
Vest-Agder
Vestfold
Østfold
Svalbard
287
100
192
112
196
361
278
280
125
201
362
281
130
236
155
168
132
159
198
1
Effective purchasing within
predictable limits
Norsk Tipping shall be a professional purchaser and make clear demands
on its suppliers. At the same time the suppliers shall be given the opportunity
to grow and develop.
Challenges in 2005
The most important supplier-related challenges in
KJELL OLSTAD
Manager Common Functions
[email protected]
> the implementation of the Public Procurement Act
> the Program 150 efficiency program
> internal competence programs associated with
purchasing
PUBLIC PROCUREMENT
From 1 January 2005, Norsk Tipping AS became
subject to the Public Procurement Act. The act and
pertinent regulations are intended to contribute to
increased value creation in society by ensuring the
most efficient possible utilization of resources
when undertaking public procurements. The Act
contains fundamental requirements concerning
competition, equal treatment, predictability, transparency, verifiability and objective and non-discriminatory criteria.
We comply with the Public Procurement Act
and practice competition in all purchases that fall
under the regulations’ provisions. Purchasing processes are implemented with public notice at all
public procurements that exceed a threshold of
NOK 500 000.
Norsk Tipping AS was not reported to the
Norwegian Complaints Board for Public
Procurement (KOFA) in 2005 for breaching the
rules concerning public procurement. The Office
of the Auditor General has reviewed our routines.
PROGRAM 150
The Public Procurement Act has required a lot of
attention vis-à-vis the incorporation of routines
and procedures for purchasing in all parts of the
organization. The Program 150 purchasing program shall ensure both the implementation of the
Public Procurement Act and result in cost savings
totaling NOK 150 million by 2007.
INTERNAL PROGRAM
In order to ensure that the efficiency goals are achieved at the same time as the routines are revised to
accommodate the new purchasing requirements,
we have continued the work that was started in
2004 with internal programs along several lines:
> corporal climate
> knowledge
> organization
> tools
> quality
> ethics
CORPORAL CLIMATE
Program 150 has worked systematically to develop a
climate that focuses on cost awareness and commercial understanding. This is reinforced by the organization working to achieve specific savings goals.
KNOWLEDGE
Much emphasis is placed on furnishing information
to all levels of the organization, and both the internal
[05:]
SUPPLIERS
and external training of key coworkers has been
completed.
[ Purchasing ]
Total consumption of goods and services
in 2005:
1 022 000 000,Completed public procurements in 2005:
276 000 000,Renegotiation of valid agreements in 2005:
223 000 000,Proportion of public procurements and
renegotiations in 2005:
49 %
Other consumption consists of two factors:
1) Valid agreements signed pursuant to the
Public Procurement Act prior to 2005.
These often have a validity of 2-4 years
before they will be put out to tender again.
2) Purchases under NOK 500.000 that are not
subject to the regulations relating to public
procurement. These purchases are made
pursuant to the principles of competition
among the competitors to ensure the best
possible utilization of resources for Norsk
Tipping AS.
Norsk Tipping AS was not reported for
breaching the rules concerning public
procurements in 2005.
ORGANIZATION
The purchasing organization in Norsk Tipping
undergoes continuous evaluation and development.
This work will be ratcheted up in 2006.
]
goals for 2006
Plans and
QUALITY
The purchasing program generally entails a stronger
focus on the quality of our supplier relationships.
This also applies to, among other things, fulfillment of signed contracts, follow-up of agreements,
and the introduction of systems and routines that
can ensure the necessary openness and predictability
in all contractual relationships.
In 2006, we will particularly work on:
> the continuous evaluation and development of
the purchasing organization
> further development of the electronic purchasing
guide
> cost-effectiveness and compliance with the
regulations for public procurement, while at the
same time developing good relationships with our
chosen suppliers
> the company’s ethical guidelines were revised
and adopted in 2005, and in 2006 we will ensure
that these are complied with in all processes within
the purchasing organization
ETHICS
The company’s principles concerning ethical and
moral conduct in relation to purchasing have been
revised and adopted in 2005. The purpose of the
ethical guidelines for purchasing is to make the
company’s purchasers aware that they must have a
high level of integrity and loyalty to the organization’s guidelines and routines for purchasing. In
this way the company’s interests will be addressed
through our building up a good, trusting relationship with society, public authorities and suppliers.
All purchases in Norsk Tipping shall be put out to
tender and involve the equal treatment of suppliers,
predictability, verifiability and the utilization of
objective, non-discriminatory criteria (see the ethical
guidelines on page 7).
Norsk Tipping maintains an active dialogue with
suppliers and is interested in both Norsk Tipping’s
needs and the suppliers’ development opportunities.
As an important tool the company has developed
a supplier development program to manage key,
important deliveries and partner relationships. The
> increasing value and improving
cost-effectiveness
> increased quality and precision of deliveries
TOOLS
An electronic guide for purchasing has been developed. The purchasing guide contains information
and guidelines for purchasing pursuant to the
regulations for public procurement. The guide also
contains an electronic system for the administration
of contracts and agreements which will replace the
current manual filing system.
Dialogue with suppliers
[ 24
program aims to promote closer cooperation with
selected suppliers in which the following are
among the things to be focused on:
Norsk Tipping relies on good external partners in
both operational activities and in being able to
develop our products and services. In 2006, there
will be greater focus on the organization’s handling of deliveries that are of strategic importance to
the organization, and our goal is to initiate more
specific projects in the course of the year.
[equal]
worth
We promise our coworkers technical, professional and personal
development based on equal worth and ethical core values.
>>
[05:]
OUR COWORKERS
motivated
Competent,
coworkers strengthen our brand
Norsk Tipping’s employees are an important part of Norsk Tipping’s total brand.
We are therefore interested in further developing the organization’s human capital.
There will always be areas in which we can develop and improve. Human resource
management is one of the areas that have been in particular focus during 2005.
Challenges in 2005
GRO SØRBØ
Organization and HR Director
[email protected]
The most important internal challenges in 2005 were
associated with:
>
>
>
>
>
management development
practical HR management
ethical issues and values
healthy lives and health initiatives
seniors policy
Activities implemented
MANAGEMENT DEVELOPMENT
In the last two years Norsk Tipping has carried out
management training in cooperation with the Senter
for Prestasjonsutvikling/Olympiatoppen. Training
processes were initiated in all management teams
during 2005. In some departments all coworkers are
involved in this. The training is based on four main
topics: good leadership, good understanding of
goals, optimum organization of the team, and culture,
values and attitudes.
PRACTICAL HR MANAGEMENT
By increasing our competence in selected subjects
we wish help managers with personnel responsibility
become more aware of their management responsibilities. We have developed internal thematic modules, and all of these are carried out using internal
[ 26
]
resources. Practical personnel management contains
12 different subjects:
>
>
>
>
>
>
>
>
>
>
>
>
inclusive employment
working hours, leave, time off and vacations
agreements and collective wage settlements
the difficult conversation
security – policy and routines
finance – policy and routines
review of the company’s policies (ethical
guidelines, secondary occupations/board
positions, seniors policy, benefits, alcohol policy)
competence building
development interviews
conflict management
workforce/recruitment
project work
In 2005, 33 managers participated in one or more of
the modules.
ETHICAL QUESTIONS AND VALUES
During 2005, the employees received an introduction
to the ethical guidelines. This also forms part of the
start program for all new employees. Managers with
personnel responsibilities must follow this up within
their own departments and units.
The policy concerning secondary occupations
AGE DISTRIBUTION OF EMPLOYEES
Information is
important
7%
36 %
32 %
20 %
5%
20–29 years
30–39 years
40–49 years
50–59 years
60 years and older
and board positions was revised in 2004. All
employees have written confirmation of which
position/secondary occupation they hold, and
they also have written confirmation that they have
read Norsk Tipping’s policy concerning secondary
occupations and board positions. An advance
assessment is made of the extent to which a position
can be combined with the employment situation
in the company.
The company’s core values are interaction, courage, commitment and performance. The values
were established a few years ago based on suggestions from the employees and as part of the company’s strategic process. “Annual Gleams of the year”
is nominated in connection with the work on the
values in the company. The person who is elected
must have adhered to the company’s core values
in a particularly good way. All employees can
nominate candidates, and a jury makes the final
selection.
FINE PRODUCTS MUST BE WELL CARED FOR
The company has an established seniors policy.
The aim is to ensure that coworkers are treated well
and in a predictable manner throughout their entire
period of employment.
In 2005, the company celebrated the fact that
28 workers were awarded the Royal Norwegian
Society for Development’s medal for long and
faithful service. The company has an active pensioner
Tipping’s brand, but internally the employer –
employee relationship is at least as important.
association. This association holds its meetings in
the company’s premises and several pensioners
exercise at Norsk Tipping on a weekly basis.
Internal
dialogue with coworkers
We have for several years held a regular weekly
forum with the employees’ trade unions. The
topics discussed at these meetings vary from company strategy to reviews of status and results achieved by the customer services unit. The purpose of
the meetings is to gain an insight into a variety of
the company’s areas, tasks and challenges.
Managers from various areas participate in the
meetings as needed within their fields. The employee
representatives are invited to put forward proposals regarding subjects.
Formal issues are discussed among the parties
on the basis of the applicable information, based
on the earlier agreements.
Plans and
HEALTHY LIVES AND HEALTH INITIATIVES
The company has continued its preventative
health work. Norsk Tipping also shared its experience internationally in 2005 at the Enterprise for
Health conference in Berlin.
The exercise activities are comprehensive and
range from Nordic walking to relaxation training.
The “walking team” was started as a new initiative
in 2005. Some people exercise before the working
day starts or right after it ends, while others exercise in the evening. The goal of the initiative is to
encourage greater physical activity. Just over 250
employees are now active participants. Some
select groups have also been offered health profiles. The provision is targeted at shift employees
and groups in which it is important to prevent
load-induced disorders. The company also has an
active company sports team that organizes various
types of activities.
The company’s coworkers are a key part of Norsk
goals for 2006
In 2006, we will particularly focus on:
> downsizing as a consequence of the gaming
machines case
> human resources management
> management and coworker development
> ethical guidelines
GAMING MACHINES
The company’s main challenge in 2006 will be
downsizing as a consequence of the gaming
machines case. Based on policy signals, Norsk
Tipping has implemented the organizational
changes necessary to facilitate the operation and
development of gaming machines. New coworkers
were recruited into the company during the last
two years to run this field. The consequence of the
postponement of the gaming machines case was
that Norsk Tipping had to take the same measures
that other companies would in a similar situations,
i.e. implement downsizing. This process is being
carried out in close cooperation with the trade unions. Cooperative meetings were held at an early
point in time to deal with the various issues associated with this special situation.
OUR PARTNERS
AND US
>Coworkers
>Retailers
>Suppliers
sidebar]
What our
coworkers think
The biggest internal challenge lately has been
downsizing as a consequence of the postponement of Norsk Tipping’s take-over of the gaming
machines market.
“This has been a major and important issue. We
have not won acceptance on all points. However,
it has been our experience that the process has
been conducted orderly and performed with a
large degree of openness and willingness to
negotiate on the part of the management,” say
representatives of the key trade unions in Norsk
Tipping, Tone Andersen of NTL and William
Nilssen of NITO. The two union representatives
place great emphasis on the regular, weekly
meetings with the company’s personnel management, which make it possible to share points of
view and get involved in the process at an early
stage in important issues.
The working environment committee and the
Board of Directors, on which two employee
representatives sit, are also important arenas for
COMPETENCE MANAGEMENT
Competence management is strategically important to the company and will be developed further
in 2006. This will be done by:
employee information and influence according
to the union representatives.
[05:]
OUR COWORKERS
SICK LEAVE
2004
2005
4.0 %
1.0 %
4.6 %
1.1 %
Total
Short-term sick leave
Total
Short-term sick leave
GENDER DISTRIBUTION OF ALL
EMPLOYEES
88 %
88 %
85 %
92 %
92 %
91 %
ETHICAL GUIDELINES
During 2006, we shall review how we can ensure
that the company’s ethical guidelines are followed
up and complied with. We shall establish routines
in which it is clear to all employees where to report any
ethical breaches and how Norsk Tipping’s management and Board of Directors will follow this up.
We are also going to ensure compliance with
the policy for secondary occupations and board
positions, and that there is a good balance between
the employees’ commitment inside and outside
the company.
88 %
97 %
95%
96 %
92 %
87 %
Men
367
67 %
Women
373
33 %
98 %
95 %
GENDER DISTRIBUTION OF MANAGERS
MANAGEMENT AND COWORKER DEVELOPMENT
Norsk Tipping’s strategic plan stipulates that annual
surveys of employee satisfaction shall be conducted.
The methodology and layout of the survey will be
prepared during Q1 and Q2. The intention of this
is to facilitate the measurement of the effect of the
areas one has specifically worked on.
New managers shall participate in training in all
the modules for practical personnel management,
while other managers shall be offered training in
individual modules as needed.
The results from the (Intellectual Capital) IC
Rating in 2004 showed that there is a need to
make responsibilities and goals clearer for coworkers
and managers. In 2006, we shall therefore implement the following measures:
> Draw up and implement role and responsibility
descriptions and measurement parameters for all
96 %
Men (206)
94 %
56 %
Women (161)
93 %
44 %
managers with personnel responsibilities.
> Prepare goals at an individual level for all
coworkers: a task that will be assigned to all managers with personnel responsibilities.
> Further develop the meetings with all managers
on the topics: sick leave, designation of areas for
improvement, and the planning of measures.
86 %
> developing and implementing a skills strategy for
the company, including methods of human resource
management
> analyzing business-critical competence
> drawing up measures to safeguard business-critical
competence
x x x x x
x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
82 %
x x x x x
79 %
x x x x x
312
x x
299
x
289
x
x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
01
01
01
01
01
02
03
04
05
02
03
04
05
Senior managers
02
03
04
Middle managers
05
02
03
TREND IN WOMEN’S PAY AS A PERCENTAGE OF MEN’S PAY
Based on average pay
]
05
Experts/group leaders
TOTAL EMPLOYEES
[ 28
04
02
03
Coworkers
04
05
[society]
and environment
We promise the environment and society-at-large that we will develop
our reputation through
openness and dialogue.
>>
[05:]
COMMUNICATION AND SPONSORSHIP
Our reputation shall be developed
through
communication
and dialogue
transparent
The main goal of our communications work is to help define, develop
and strengthen Norsk Tipping’s reputation in society in general and with
all the groups and stakeholders parties that in some way or another have
an interest in our operations.
PEER JACOB SVENKERUD
Senior Vice President Information
and External Relations
[email protected]
We place special emphasis in this work on performing our operations in a manner that balances the
various groups’ interests, making Norsk Tipping’s
contribution to society visible, and that takes into
consideration each of the individual interested parties’
unique relationship with Norsk Tipping. We seek to
do this proactively and therefore approach this challenge in a way that ensures the early identification of
issues that could affect our reputation and our position.
Challenges in 2005
The gaming market milieu is undergoing rapid
change and competition continues to increase from
all sides, despite attempts by the authorities to put
the brakes on this development. This is due to a
number of reasons:
> foreign actors who want to enter the Norwegian
market
> new technology that facilitates new games and
gaming channels and which enables games to be
offered across national borders
> a gradual merging of entertainment and gaming,
as well as increased public interest in money games
As a result of this we are seeing people’s gaming
behavior change, which is one of the reasons behind
the ‘explosion’ of the gaming machines market.
[ 30
]
Simultaneously, a number of interested parties and
actors are challenging Norsk Tipping’s exclusive rights
role. This has been particularly evident in connection
with the Storting’s (the Norwegian parliament) resolution to grant Norsk Tipping the exclusive right to
operate gaming machines and the legal proceedings
that have followed in the wake of this decision.
Dialogue with society
From a communications perspective we face challenges in gaining support for and legitimizing our
role and operations towards the individual interested
parties. Over a period of time, the communications
function has therefore developed a structured approach
based on dialogue, monitoring and the identification
of relevant issues and the actual measurement of status
and results.
As a result of this, our work is based on a regular,
close dialogue with, among others:
> The Ministry of Culture and Church Affairs
> representatives of the beneficiaries within
Norwegian sports and culture
> retailers and partners
> organizations and individuals with a special
interest in our operations
Combating
bullying
STRICT STATE CONTROL
Statement: Money games should be run under strict state control.
Soccer celebrities, the Tufte boys and thousands of
schoolchildren and young people are involved in the
anti-bullying project “På lag mot mobbing”.
51 %
24 %
10 %
6%
5%
2%
Strongly
agree
Somewhat
agree
Neither agree
nor disagree
Somewhat
disagree
Strongly
disagree
Do not
Unanswered
know/cannot
answer
1%
MORE CONTROL
Statement: There should be more control of where, when, what and how much people play.
28 %
27 %
17 %
11 % 13 % 2 %
Strongly
agree
Somewhat
agree
Neither agree
nor disagree
Somewhat
disagree
Strongly
disagree
2%
Do not
Unanswered
know/cannot
answer
NORWEGIAN SPORTS AND CULTURE
Because of the distribution of the profits it is natural for Norsk Tipping to develop special relationships with Norwegian sports and culture. Today we
are one of Norway’s most important partners with
and sponsors of Norwegian sports and culture and
have a series of agreements of both a strategic and
tactical nature. Because we feel a value-related
sense of fellowship with precisely the sports and
cultural sectors, these agreements help to communicate and reinforce our reputation-related value
base and facilitate an effective positioning of our
games. The measures and activities we carry out
within the areas of sponsorship and partnership
are intended to contribute to consolidating the
company’s position as a responsible operator and
social entrepreneur.
MEDIA CONTACT
As one of enterprises in the country that receives
the most media coverage external information about
Norsk Tipping is both important and necessary.
During the last few years we have developed steadily better routines to identify relevant issues and
monitor what is actually being said and written
about Norsk Tipping. We use this knowledge actively to ensure that we develop precise and relevant
communications for all target groups, not least in
relation to the media.
OUR MILIEU
>The authorities
>Society
>The environment
>Beneficiaries
>Interest groups
sidebar]
Community
partners
Regardless of what the gaming profits go to, Norsk
Tipping is involved in sponsorship and collaborative
projects with others in society. The anti-bullying
REPUTATION MEASUREMENT
The final area of our communications work is measurement. In addition to regular media analysis, we
conduct a major reputation analysis/reputation
accounting every second year in which all important
interested parties’ relationships with Norsk Tipping
are surveyed. This analysis provides us with an
important picture of society’s perception of Norsk
Tipping as a company and the expectations society
has of the company. The reputation analysis is used
as a basis for further improvement work, both within
the communications function and across Norsk
Tipping’s other units.
SPONSORS
On the sponsorship side of things, we have strengthened our contact with important partners.
Among other things, we have renewed our largest
and most important partnership agreement with
the Norwegian Football Federation (NFF) and
strengthened our partnership with the Norwegian
Confederation of Sports. The primary purpose of
this is to work actively with parallel challenges that
the partners and Norsk Tipping face. In addition,
project, “På lag mot mobbing”, which is a collaborative project with the Norwegian Football
Federation (NFF), is one of the largest and most
important of these. Meetings between well-known
role models and 5th, 6th and 7th graders are a key
part of the anti-bullying program. These meetings
can involve well-known and popular soccer players
visiting schools or school classes visiting Norwegian
soccer teams like Rosenborg or Stabæk. An educational course has been designed which turns the
spotlight on the issue of bullying in sports, at school
and in with friends situations.
The project has an active website which both
children and parents can visit and seek advice and
guidance. The children’s TV show, “PysjPopBaluba”,
also has its own anti-bullying segments.
The Tufte soccer team members are now honorary ambassadors for the campaign. The well-known
Tufte player and psychology student Martin Bull
Gudmundsen thinks it is very important that they
do their bit for this campaign.
“Many people find a sense of fellowship
through sports. But there are also examples of
sports circles which reject people because of their
sexual orientation, for example, or the fact that
someone doesn’t live up to expectations on the
playing field,” says Bull Gudmundsen.
The Tufte star also wants to shed light on this
negative aspect of sports.
[05:]
MILJØ
PROFITS FOR
SOCIALLY BENEFICIAL
GOOD CAUSES
PURPOSES
Statement: The profits
Statement: It is sensible to fund
from money games go
socially beneficial purposes
to good causes
through money games
59 %
Strongly
agree
30 %
Strongly
agree
23 %
24 %
Somewhat
agree
Somewhat
agree
7%
13 %
Neither agree
nor disagree
Neither agree
nor disagree
5%
12 %
Somewhat
disagree
Somewhat
disagree
2%
17 %
Strongly
disagree
Strongly
disagree
3%
2%
Do not
know/cannot
answer
Do not
know/cannot
answer
1%
2%
Unanswered
Unanswered
we have increased our visibility in Norway’s culture
sector through the establishment and reinforcement
of several important partnership agreements, e.g.
through Drømmekonsertene (The Dream Concerts)
under the auspices of the Norwegian Band Federation,
Drømmestipendet (the Dream Scholarship) that is
awarded in cooperation with the Norwegian Council
of Art Schools and similar agreements.
Plans and
> a new reputation analysis
> the renewal of our communications tools
> spreading information and knowledge about
Norsk Tipping’s role
NEW REPUTATION ANALYSIS
We will conduct a new reputation analysis to analyze
the development of our reputation and identify
new viewpoints and issues that interested parties
might be interested in. The analysis will help to
form the basis of future prioritizations and plans,
and will be used as a starting point for further dialogue with various interest groups. We already
know that there are great expectations when it
comes to Norsk Tipping fulfilling and displaying its
social role. While the expectations today are that
we should be able to document responsible gaming
behavior, we nonetheless expect that we will increasingly have to document and make visible the
fact that we also have responsible intentions and
good intentions in all that we do. It will therefore
be important to develop the company’s communications platform and activities in a manner that
makes our social profile even more visible to all
groups. In order to achieve this we must first identify
factors that promote our reputation and establish
MMI Survey on money games: 2005
[ 32
goals for 2006
In addition to continued ongoing improvements in
all aspects of our communications work we will
prioritize three specific projects in 2006:
]
clear communications programs for these, as well
as improve our tools for the continuous measurement of our reputation.
RENEWAL OF COMMUNICATIONS TOOLS
It is important to ensure that we always develop
and renew our communications tools so that we are
able to communicate our values and the contribution we make to society in changed circumstances
and to new target groups. To increase the visibility
of our social commitment and our willingness to
exercise social responsibility we will therefore do a
lot of work on developing new sponsorship concepts
like the anti-bullying project “På lag mot mobbing”.
These are concepts that can reach new target
groups better and help establish new attitudes and
new information that the company wishes to stand
for and bring to the attention of society. This will be
the main focus of the sponsorship efforts in 2006.
KNOWLEDGE ABOUT OUR ROLE
Finally it is important to call attention to the fact
that Norsk Tipping is in a special position with
regard to the role we fulfill by making a positive
contribution to society. By increasing knowledge
about what the company’s profits go to and thus
focusing on the company’s importance to Norwegian
sports, culture and voluntary organizations, we are
going to increase loyalty to the company and the
games that we deliver at any given time. We will
focus further on this work in 2006.
Good indoor climate
and the sustainable consumption of resources
Norsk Tipping delivers products that do not pose major challenges with respect to
emissions into the air or water, but it is nonetheless very conscious of the environmental impact of its operations from the consumption of resources, transportation
effects, and waste management. A good indoor climate is not least a high priority.
GUSTAV THORSRUD
Real Estate Manager
[email protected]
The environment is taken into consideration at
all levels in Norsk Tipping’s premises. This includes
ecology, economy and society. The building is
designed to consume resources and energy in an
environmentally friendly way, and provide a good
and healthy indoor climate. The building is also
flexible, has good communications, and is of an
aesthetic, holistic quality.
Environmentally certified, sustainable products
are utilized.
Norsk Tipping AS realizes there is a correlation
between the physical working environment and
the employees’ health and performance. In a good
environment with good relationships between
people one can both feed off and generate energy.
The building has good ventilation, good acoustics
and good lighting. Green plants form part of a
good working environment.
Energy consumption and waste
management
Norsk Tipping has good routines for efficient energy
consumption and waste management:
> All waste is source-sorted
> Fluorescent tubes are treated as hazardous
waste and placed in a separate container
> There are separate containers for food waste,
paper and other waste
> Other waste is source sorted at the waste
reception facility
> All electricity consumed for heating is time
controlled
> Comfort cooling provides the right indoor
temperature during both summer and winter
> Dedicated cleaners clean daily
> The entire building is maintained annually
Heat recovery
Norsk Tipping has a modern ventilation system
that filters incoming and outgoing air. The system
involves a rotating heat recuperator, which means
that one can use the existing hot air in the building
to heat up cold air from outside.
Dialogue with
interested parties
Norsk Tipping distributes 200 million coupons and
20 million Oddsen programs annually. It is therefore
important for us to maintain a good dialogue with
our suppliers of paper and printing. We cooperate
with our suppliers on this, and stipulate contractual
environmental requirements concerning the fact
that everything should be printed on unbleached,
recycled paper using atoxic printer’s ink.
Norsk Tipping’s coupons and programs have
been certified with the green swan label as environment friendly since 2004.
The label is visible evidence that the production
[05:]
THE ENVIRONMENT
Green-swanlabeled printed
materials
Green-swan-labeling is visible evidence that the
production of Norsk Tipping’s coupons and programs
satisfies a series of environmental requirements.
of coupons and Oddsen programs satisfies a series
of environmental requirements.
Recycling of materials
Since 2004, Norsk Tipping has had a permanent
agreement with the company ‘Materialretur’ involving the payment of a certain fee to help ensure
that the packaging from Norsk Tipping’s products
goes to recycling.
The company ‘Materialretur’ collects the packaging fee that the materials companies need in
order to organize the collection and recycling
schemes.
OUR MILIEU
>The authorities
>Society
>The environment
>Beneficiaries
>Interest groups
Plans and
sidebar]
goals for 2006
Norsk Tipping will primarily focus on energy saving
measures in its environmental work in 2006.
Environmental
considerations
Norsk Tipping annually produces 200 million
coupons and 20 million Oddsen programs.
25
x
x
x
x x x
x
x x x x x
x x
x x
x x x x x
x x x
x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
such as Norsk Tipping, environmental considerations are a key part of the company’s social
responsibility.
Norsk Tipping has worked closely with its print
suppliers to achieve environmental friendly
production. The green swan label is the visible
evidence of this. The green swan label is a
x x
222
4468
304
21
23
20
x x
174
justifiable manner. For a state-owned enterprise
x x
x
191
printed in an environmentally friendly and
x
4310
to ensure that both coupons and programs are
4500
It is therefore important that the company helps
4580
chopping down 30 soccer fields of forest.
23
show that this quantity of paper is equivalent to
348
4781
Calculations carried out by Ecolabelling, Norway
x x x x x
x x x x x
x x x x x
01
01
01
02
03
04
05
02
03
04
05
02
03
04
05
guarantee that the production of coupons and
ENERGY CONSUMPTION
OPERATIONAL BUILDINGS
NUMBER OF RECYCLABLE
ODDSEN PROGRAMS
NUMBER OF RECYCLABLE
COUPONS
programs has been certified since 2004.
Megawatt hours
Distributed in millions
Distributed in millions
[healthy]
management
We promise to manage our operations in accordance with healthy
organizational principles that can be
evaluated and verified.
>>
[05:] AUDIT REPORT VERITAS
[ 36
]
[05:] CORPORATE GOVERNANCE
Corporate
governance
Norsk Tipping’s corporate governance is based on the company’s two key
social tasks: to generate profits for socially beneficial purposes and to
imultaneously act as the state’s instrument for ensuring a responsible gaming
market. A great deal of emphasis is given to good, reliable corporate
governance in line with the expectations society-at-large has of us.
The company’s
purpose
Norsk Tipping’s purpose is defined by the company’s
articles of association: “The company shall, pursuant
to the rules of the games stipulated by the Ministry,
provide and organize satisfactory forms of money
games under public control, with a view to prevent
negative consequences from the money games, at
the same time as the rational operation of the company
shall facilitate as much of the profit from the games
as possible being able to go to the purposes mentioned
in Section 10 of the Gaming Act.” Section 10 of the
Gaming Act stipulates that the company’s profits
shall be distributed equally between sporting and
cultural purposes.
The Ministry’s role
Norsk Tipping is a wholly state-owned corporation
under the jurisdiction of the Ministry of Culture and
Church Affairs. The Ministry of Culture and Church
Affairs grants permission to introduce new games
and decides on the rules for the games. The Ministry
also determines the portion of the total amount
wagered that is allocated to prizes. The Minister of
Culture and Church Affairs constitutes the company’s
general assembly.
The Board’s
role
Norsk Tipping AS is governed by a Board of Directors
consisting of five independent members appointed
by the Ministry of Culture and Church Affairs, and
two representatives from Norsk Tipping, elected
from among and by the company’s employees. In
this context, independent representatives means
that the members are independent of the beneficiaries. The Board’s duties include ensuring that the
company is operated in accordance with its objecti-
[ 38
]
ves, articles of association, and guidelines.
Furthermore, the Ministry of Culture and Church
Affairs is kept informed about matters of principle crucial to the company’s operations.
The Office of the Auditor General and The
Norwegian Gaming Board
The Office of the Auditor General, which is the
Storting’s supervisory authority and holds an independent position relative to other state institutions,
audits the company’s accounts. The Norwegian
Gaming Board oversees the company’s compliance
with relevant legislation and the rules of the games.
In connection with the new guidelines for marketing state-controlled money games, the Norwegian
Gaming Board has also been tasked with the ongoing
assessment of marketing and reports on this to the
Ministry of Culture and Church Affairs twice a year.
Administration and internal control
The CEO is responsible for the day-to-day management of the company. The CEO is appointed by the
Board, which also sets the CEO’s compensation and
other contractual terms, including pension schemes.
Norsk Tipping is certified pursuant to the World
Lottery Association Security Control Standards.
Relationship to other legislation
Norsk Tipping is a wholly state-owned corporation.
The Norwegian Companies Act does not apply to
Norsk Tipping. The company’s Board of Directors has
decided that the Accounting Act shall be complied
with as long as this is practically possible. The company is subject to the Public Procurement Act.
This is an abridged version of the company report concerning corporate governance. The complete report can be found in Norsk Tipping’s annual report for 2005.
Our
goals for 2006:
With all the fun and entertainment associated with money games
comes great social responsibility. As is evident from the social report,
Norsk Tipping is aware of its responsibility.
Our goal for 2006 will be to continue to
promote this balance between fun and
responsibility:
> We will continue to preserve the dream and
gaming fun through the renewal and development of our games.
> We will further raise our own awareness and
that of society-at-large of the necessity of
gaming responsibility through our constraints,
marketing and information to the players.
> We will contribute to the continued growth and
development of our retailers and suppliers, but
also ensure through information, training and
control that the retailers stand on a responsible
platform.
> We will continue to develop the competence of
our managers and coworkers on the basis of
solid core values and a sound ethical platform.
> We will continue to spread knowledge and
information about Norsk Tipping’s role, both in
the gaming market and in Norwegian sports
and culture.
> We will continue to run a competitive enterprise
that in turn can create value that benefits Norwegian
sports and culture.
Design: Dinamo PR • Photos: Tommy Normann Hansen, Ørjan Svendsen
Norsk Tipping AS
NO – 2325 Hamar, Norge
Tel: (+ 47) 62 51 40 00
Fax: (+ 47) 62 52 71 52
Org. no. NO 925 836 613 MVA
norsk-tipping.no

dialogue - Norsk Tipping

Transcription

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