Principles of responsibility and finances

Ownership and corporate governance

CSC is a company with a special task owned by the State of Finland and Finnish higher education institutions that provides ICT infrastructure and expert services. Our primary customers are the Ministry of Education and Culture and organizations in its field, higher education institutions, research institutes and the public administration. The State of Finland owns 70% of the company's share capital, while the remaining 30% are held by the Finnish higher education institutions as shareholdings of varying sizes. CSC is a non-profit company that does not pay dividends or other gratuitous compensation.

In public procurements, CSC operates as an in-house entity of its shareholders as referred to in Article 12 (1 and 3) of Directive 2014/24/EU of the European Parliament and of the Council. CSC may provide services to other organizations besides its owners, provided that it does not exceed the permitted limit for external sales laid down in section 15 of the Act on Public Procurement and Concession Contracts (FINLEX 1397/2016).

CSC's owners have organized their cooperation by drawing up a shareholder agreement and forming a joint advisory council. The council draws up the company’s ownership strategy, ensures that the company is working towards the owners’ goals, and monitors the company's societal impact and financial performance.  The council’s term of office is two years. Five council members are appointed by the government and the remaining five by the universities and universities of applied sciences. Acting on behalf of the State owner, the Ministry of Education and Culture appoints the chairperson of the Council. The Council members appointed at the beginning of 2021 are: Eerikki Nurmi (Chair), Minna Harjuniemi, Erja Heikkinen, Ari Hirvonen, Minna Karvonen, Kati Komulainen, Tapio Kujala, Ilkka Niemelä, Soili Vasikainen and Aleksi Yrttiaho. Read more about the Council.

The Annual General Meeting, Board of Directors and Managing Director share the responsibility for CSC's administration and operations. The Annual General Meetings are held every year before the end of June. The Board of Directors consisted of seven members in 2021. Until the AGM held on 5 May 2021, the Board Chairperson was Mirjami Laitinen, while the other Board members were Tua Huomo, Heikki Mannila, Jukka Mönkkönen, Jouko Paaso, Veera Sylvius and Leena Viljo. The new Board of Directors appointed by the Annual General Meeting on 5 May 2021 is chaired by Jukka Mönkkönen, while the other Board members are Tua Huomo, Riitta Autere, Hannu Kemppainen, Petri Myllymäki, Matti Sarén and Laura Vilkkonen. The company's CEO is Kimmo Koski.

The key norms governing CSC are the Finnish Limited Liability Companies Act (624/2006) and the State Shareholdings and Ownership Steering Act (1368/2007 and 1315/2016). CSC's governance is also subject to the Government Resolution on State Ownership Policy (VNK/2020/48), the Articles of Association, the owners’ shareholder agreement, and the principles and guidelines defined by the council and the Board of Directors. As an unlisted company, CSC also complies with the Corporate Governance 2020 code issued by the Securities Market Association where applicable.

Read more: Board of Directors and Management Group.


Sustainable development themes

We offer IT solutions for digitalization and the green transition and follow the principles of sustainable development. Climate issues and ethical conduct of business are important to us, as are our customers and employees. We strive for the goals and adhere to the values of sustainable development in our daily work, while we help our customers find new and sustainable innovations for a greener and better future.    

The UN’s 2030 Agenda for Sustainable Development aims for the eradication of extreme poverty as well as sustainable development in which the environment, the economy and p eople are taken into account equally. The 2030 Agenda has 17 goals, of which 10 concern CSC directly.              

              Our work on sustainable development focuses on four main themes: climate actions, prospering customers, ethical business and empowered employees. Read more about these themes.

Social responsibility management and operating principles

CSC's activities are guided by values that emphasize cooperation, expertise, caring and responsibility. CSC’s motto “We advance expertise as a community with assurance and integrity” forms the foundation of our corporate culture. Our ethical guidelines (Our Way of Working – CSC Code of Conduct) help us operate in line with our values. The Code of Conduct explains what is meant by good business practices and healthy engagement with stakeholders, society and the environment. These guidelines apply to all CSC personnel and members of the Board of Directors, and all topics addressed in the Code of Conduct are covered during orientation. The Code of Conduct is public and CSC also requires its partners to comply with the same principles.

CSC's Board of Directors monitors the management and implementation of social responsibility as part of its rules of procedure. The Board of Directors continuously assesses the societal impact of CSC's services and the company's ability to provide added value to society in the manner referred to in the special task. The company's ability to act in accordance with the principles of sustainable development affects the Board of Directors' decision to distribute any performance-based bonuses to the company's personnel and management.

The Board confirms the annually updated risk management plan and the approved residual risks. In addition to changes in the operating environment, risks arising from the company's operations, such as risks related to the environment, are taken into account in the assessment of strategic risks. The Managing Director and Management Group are jointly responsible
for ensuring that risk management has been appropriately arranged. Responsibility management and the coordination of practical procedures are carried out through the company's routine management system.

Together with the CSC Management Group, the Managing Director is responsible for internal control, or the steering and operating processes used to ensure that we operate legally and profitably as well as for ensuring that reports on our financial position and activities are reliable and transparent. The CFO is responsible for internal auditing in cooperation with the auditor and other members of the company management.

CSC is committed to promoting sustainable development objectives that balance economic activities with ecological, social and cultural values. Implementing different areas of environmental management is a routine part of each and every employee’s daily work at CSC.

Reporting and accounting principles

The Corporate Social Responsibility Report covers all operations under CSC’s control. Comparison data for the previous year is presented in accordance with the organizational model and operations of the year in question, and earlier key indicators have not been converted to reflect later changes.

As CSC does not have a direct or indirect holding of more than 50 per cent in any of the companies it owns, no information on companies in which CSC has holdings is included in our Corporate Social Responsibility Report.

CSC is aware of the challenges posed by gathering and collating data, and seeks to develop appropriate monitoring practices.

Measurement and calculation principles

Financial responsibility

The data used to calculate key indicators has been gathered from the accounting system and the audited Financial Statements. Key indicators have been calculated as follows:

Operating profit (%) = operating profit / net sales

Return on equity = net result / equity

Return on investment = (net result + taxes + financial items) / capital employed

Quick ratio = financial assets / (current liabilities - advances received)

Current ratio = (financial assets + inventories) / current liabilities

Equity ratio = equity / balance sheet total * 100

Gearing % = balance sheet liabilities / net sales (12 months)

Social responsibility

Our data on HR responsibility is taken from a variety of source systems, such as the working hour monitoring system and personnel database. HR management personnel are appointed to compile the data and submit reports on the required key indicators and statistics. Key indicators have been calculated as follows:

Turnover = (number of employees leaving the company 1 Jan–31 Dec) / (number of employees 31 December) x 100%

Accident frequency = (number of accidents 1 Jan–31 Dec) / (1,000,000 work hours)

Sick leave rate (%)= (number of sick leave days 1 Jan–31 Dec) / (theoretical standard working hours 1 Jan–31 Dec) x 100%

The Net Promoter Score (NPS) is calculated as follows:

NPS = (number of promoters - number of detractors) / (number of respondents) * 100

Customer responses (on a scale of 0–10) were classified as follows: 0–6 = detractors, 7–8 = passive, 9–10 = promoters

Environmental responsibility

At our Espoo and Kajaani data centers, the energy consumed by infrastructure and IT systems is separately monitored. Energy efficiency is measured as a PUE value (Power Usage Effectiveness) as follows:

PUE = (total energy used by the data center) / (energy used by servers)

PUE does not provide a complete picture of energy efficiency, as it should take the data center's usage rate into account. However, being the most widely used international benchmark, PUE was chosen as a key indicator because of its comparability.

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