KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY

KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY

CSR in Russia

Olga Maksimova, International projects specialist


MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY

Definition:

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Or

CSR is about how companies manage the business processes to produce an overall positive impact on society.



History of CSR in Russia

• In 2003 the Russian president made a statement about CSR during the XIII Congress of the Russian Union of Industrialists and Entrepreneurs;

• In 2002 only 2 companies submitted reports on CSR;• In 2003 only 5 companies submitted reports on CSR;• In 2006 20 companies submitted reports on CSR (according to the

Agenсy on social information). Among them: «Gazprom», Lukoil, Shell, ТNК-BP, «Sibneft», «Rusal», «Norilsk Nickel» etc.

• In 2012 more than 50 companies submitted reports on CSR;• In August 2013 Russia officially became a member of the WTO;



History of CSR in Russia

2002 2004 2006 2008 2010 20120

10

20

30

40

50

60

CSR reports

CSR reports



Current situation

• The concept of CSR in Russia is being discussed;• The code of corporate ethics is under development;• The code of generally accepted rules and principals in environmental policy is

under development.• Leading Russian companies follow the global trend of integration of CSR into the

corporate strategy for all types of corporate social performance, including corporate philanthropy.

• Corporate philanthropy develops relatively independently with strengthening of strategic and innovative aspects.

• Education in the field of CSR is included in compulsory core courses and modules for the managerial trainings.



Specifics

• Historical and geographical features;• Features associated with mentality of the

population and traditions of corporate governance;• The features associated with the social and political

situation in the country.



Specifics

Historical and geographical features:

- A vast territory; - The cities and suburbs are remote from each other, especially in Siberia and the Far East; - The concentration of financial resources in the most undeveloped and regions with difficult climate conditions (Siberia and the North - oil, gas, aluminum, nickel industries); - The predominance of mono cities where infrastructure and people are tied to a single enterprise; - The social infrastructure is poor.



Specifics

The features associated with mentality of the population and traditions of corporate governance:

- High social expectations at a low social activism;- Tradition of labor relations;- Inadequate attitude of media towards the company's efforts to support the

community: from total ignorance to the pathological suspicion of self-interest.



Specifics

The features associated with the social and political situation in the country:

-High poverty level in the regions; -A huge number and spread of social problems in the territories - it is unclear from where to start; -Lack of experience and state infrastructure for solving "new" problems: drug addiction, homeless people, AIDS; -Pressure from local authorities, forcing companies to allocate resources for programs which are not related to the needs and interests of the company but for the priority programs of the region which don’t always make sense.



The most popular reporting standards:

• Sunshine

• Global Reporting Initiative, GRI

• Accountability1000 (AA1000)

• ISO14000 and ISO26000

• Russian experience: Standard on social reporting of the Chamber of Commerce and Industry of the RF (based on GRI and АА1000)



Motivation:

• Higher competitive advantages on the international markets• Increases profit;• Loyalty to the company and its products increases; • PR;• Investment policy management tool and pledge of their own

sustainable development and prosperity.



Barriers:

• Lack of financial resources;• Business still feels neither legal pressure, nor considerable pressure from media,

customers and civil society, which are among the main obstacles to CSR development;

• Non-transparency of business in Russia is additional challenge;• Lack of political support; • Lack of understanding of the benefits of CSR for the business; • Lack of experience, knowledge and qualified personnel in the companies dealing

with this topic;• Low interest of media in CSR also slows down the progress.



Prospects:

• CSR in large organizations;• Promoting CSR among SMEs;• Introduction and promotion of non-financial reporting standards;• Education in the field of CSR is included in compulsory core courses and

modules for the managerial trainings.• Development of approaches to corporate social responsibility, which

would be based on internationally accepted principles of social responsibility, but taking into consideration the specifics of Russia.

• the government should take a proactive role in popularizing CSR by creating better incentives and legal basis for CSR.



Prospects:

• "Application of mediation techniques in work of the guardian bodies and agencies" (The project is co-financed by the Government of the Kaliningrad region);

• Social business network;• Special nomination in “Amber mercury” competition -"For contribution

to the development of socially responsible business in the Kaliningrad region“;

• Scholarships from the KCCI;• Social project "Paper recycling - preserving nature, save a life!“;• Teaching English people with disabilities; • Business education for people with disabilities.

Thank you!

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KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY

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