Corporate social responsibility is a certain concept, according to which the interests of society are taken into account by state and non-state structures. Moreover, they assume all obligations for their activities. This applies to shareholders, suppliers, employees, local communities as well as stakeholders.
The essence of corporate social responsibility
Such a guarantee usually goes beyond legally fixed norms and involves the voluntary adoption of additional measures aimed at improving the quality of life. Here the interests of both workers with their families and entire social groups are affected.
Corporate social responsibility is possible only with the stable development of companies' production, which means contributing to the formation of social peace, the well-being of residents, the preservation of the environment, as well as personal security. At the same time, its implementation takes place with the non-interference of the state in operational activities. After all, excessive regulation deprives the spirit of voluntariness, independence and any social activity.
Among the main ways of development and regulation, there is a fruitful dialogue between the state, public organizations and the main business structures. Perhaps that is why the appropriate policy can only be developed as a result of social contact. In addition to everything, the key role here belongs to employers as organizers of the “large-scale conversation”.
Historical aspects of the development of the concept
Understanding the importance of a balanced development of the country is carried out through not only economic regulation, but also public control. Thinkers of the first half of the 20th century came to this, in particular, J. M. Clark, the famous American specialist in macroeconomics. After all, imperfection of the market and government controlled makes society an integral element of the economic order.
It was believed that the need to increase the role of the components of the public sector, such as collective consciousness and voluntary cooperation, is an integral part of all economic theory.
According to the aforementioned scholar, management activities and is the balance of society. In addition, there should be a symbiosis of government control and private business. Simply put, a balance is ensured between selfish and national interests.
If we consider the concept of "corporate social responsibility" in a broad sense, that is, taking into account the impact of office work on society, then different organizations operate with it in different ways. Despite this, in matters of its origin, everything boils down to one thing: the formation dates back 20 years ago.
However, at the beginning of its formation, this definition meant only the nature of relationships with employees, the timeliness of payments wages and an adequate level of taxation. In other words, the circumstances that characterize the external side of the socio-economic activities of specific companies.
In the early 1970s, it became necessary to realize one's responsibility to society. Western European structures have developed common guidelines in the relationship between employees and employers. It was from that time that all areas of corporate social responsibility began to be studied in detail.
Note! Corporate social responsibility is carried out only on a voluntary basis. This is a kind of integration of the social and economic components of the business with all people, as well as other companies.
Multi-level system
The system of corporate social responsibility consists of three main levels, each of which has its own nuances. In the case of "falling out" of one of them, the meaning of all this activity is completely lost.
- The first level is formed through society's ideas about morality. In other words, the normative basis is moral obligations to the target audience. Basically, they relate to the present or future activities of a particular company.
- The second level implies social responsibility with specific norms. Since this element of the system acts as an object of external control, it requires maximum openness and transparency of actions.
- The third level is focused on creating social values during interaction stakeholders. Here, the ethical component is the core - from setting goals to evaluating results.
Main Models
Models of corporate social responsibility use specific areas that are strictly regulated. The most popular are social, educational and environmental areas.
Social projects
Today, local communities are actively supported, where attention is drawn to the local specifics of social problems. In order for this activity to be visible and sustainable, active cooperation in various areas should be observed on the part of the state, business communities, as well as the non-profit sector. In other words, all efforts should be combined as much as possible.
The most striking examples are programs to support gratuitous donation, create comfortable conditions for recreation, long-term social investment, as well as professional support for specialists.
Educational projects
Support for various educational programs - from teaching elementary manipulations to the most complex research - is one of the priority areas which represents corporate social responsibility in Russia.
After all, as you know, education is focused on development as individual people and society as a whole, so it should be given due attention. Everything is due to the fact that the speed of information exchange is of particular importance, which is why it helps to solve the global problems facing companies.
Support for educational programs in all their diversity is simply necessary, because the professional knowledge of employees and the desire to expand the personal knowledge base is very valuable. Here, resources are invested not only in their own specialists, but also cross-industry exchange of information is supported.
Such examples of corporate social responsibility can be observed in the development of youth entrepreneurship based on student projects. This type of activity is in demand everywhere today, since most young professionals, who have not even graduated from universities, have unique ideas. It is their implementation that becomes possible thanks to corporate support.
This prepares them for future professional cooperation in various fields, both domestic and international.
Environmental projects
Of course, the development of corporate social responsibility affects the environment. Everywhere there is a minimization negative impact, as well as the search for ways to maintain balance in nature.
It is worth noting that already in 153 countries there is adherence to environmental principles, as well as active participation in discussion clubs of the same name. There is also a responsible attitude to the health of company employees, so safety and comfort working conditions come to the fore. It is important to breathe fresh air, drink clean water and come into contact with environmentally friendly materials.
First of all, such projects take into account rational use natural resources, optimal waste disposal, as well as the development of environmental behavior in society.
Principles and strategies of corporate social responsibility
During the implementation of personnel management procedures, companies attract a qualified workforce, which justifies the increase in productivity. For example, by installing a treatment plant, it is possible to have a positive environmental effect, which also allows saving on material costs.
Working with local communities raises the level of trust and improves the social environment. Using the services of local suppliers allows the development of regional markets. In other words, there is a clear relationship of cause-and-effect relationships.
All of the above suggests that any concept should be guided by certain principles and management strategies. After all, they are aimed at realizing the potential of any organization.
If we take into account that the principles of corporate social responsibility are the foundations that reflect its essence, then their non-compliance radically changes the meaning of this concept.
Corporate responsibility and its main principles
- Transparency is manifested in a clear and understandable conduct of social procedures. Any information other than confidential data must be publicly available. Concealment of facts or their falsification is unacceptable here.
- Consistency is displayed in the presence of fundamental directions for the implementation of specific programs. The Directorate takes full responsibility for current and future activities. In addition, it must be integrated into all business processes, despite the different levels.
- Relevance indicates the timeliness and relevance of the proposed programs. They should cover a significant number of people and be as visible to society as possible. In addition, the funds spent are required to help solve the tasks after their objective and regular assessment.
- The exclusion of conflict situations, as well as distancing from specific religious or political movements, contributes to the effective solution of socially significant problems. This creates a situation of full choice, as well as following your preferences.
Conceptual features
The concepts of corporate social responsibility are manifested by the presence of certain needs, focused on providing their resource base. The socio-economic component is taken as a basis both at the moment and in the future.
They allow you to link non-financial aspects with the strategies of a particular business. There is not always a clear logic behind this, and the tasks set may not lead to the expected results. However, it is the implementation of such concepts that is most relevant for most of the world's business communities.
Key Conceptual Components
- Corporate ethics.
- Politics of a public orientation.
- Ecological education.
- Corporate activity.
- Respect for human rights in relation to all subjects of socio-economic relations.
Implementation tools
Corporate social responsibility of business involves many forms of implementation. One of them is charity, or sponsorship. This type targeted allocation of funds is focused on conducting social programs, including monetary or in-kind variations of support.
In addition to this, the voluntary delegation of employees makes it possible to provide recipients with the knowledge, skills, and contacts that are subsequently necessary for cooperation.
Targeted financial assistance in the form of monetary grants in the field of education or applied research is the most accessible and traditional tool for implementing social contacts. As a rule, they are associated with the main activity of the company or its strategic business objectives.
The provision by a corporation of a resource base for the creation of structures or objects of a public nature is often used for self-promotion purposes. Such corporate sponsorship is considered a fundamental factor in addressing the demand for specific areas. Usually, entire funds are created for this purpose, focused on implementation. social activities.
Joint partnership programs, which are aimed at reducing social tension and improving living standards, are made possible through social investment. This financial assistance implements long-term projects that provide a systematic approach to solving social problems.
If it comes to sending a percentage of the sales of a certain product, then such a socially meaningful marketing acts as the most important form of targeted assistance for highly specialized areas.
An important tool is also sponsorship, represented by a legal or individual under the terms of advertising.
Conclusion
The corporate social responsibility of the company, more precisely, its practical implementation, is due to the lack of clear boundaries between the social sphere of life and the state. The economic crises of different years are a vivid confirmation of this. No matter how serious the intentions in the field of social responsibility are, these are primarily advertising tools, and not targeted concern for people.
Today, the whole world lives in conditions in which, as the UN notes, forces that do not consider the territorial state as the only fundamental organizing principle are emerging to a prominent place in society. Nowhere is this more evident than in economics. The existence of a small number of very large corporations (VCCs), tens of thousands of their subsidiaries, and millions of suppliers are the most obvious manifestations of the changes that are taking place.
There are at least two main reasons for the increased attention to OCC today. The first reason for increased attention to the OCC sector is the result of the growing influence and potential of TNCs, especially very large corporations. In terms of efficiency and scale of activity, neither governments nor international organizations can compare with the JCC.
And the second reason is the contradictory development of the policy of the OKC. As noted by many authors, even today some RCCs commit serious violations of human rights, labor standards, environmental and other social requirements.
But on the other hand, the aggravation of the contradictions of the socio-economic and political development of the modern world and other reasons lead to certain changes in the policy of the OKC. This is most clearly manifested in the widespread policy of the so-called "corporate social responsibility", the analysis of which is the subject of this article.
The emergence of the concept of "corporate social responsibility" (CSR)
Recently, the UN has begun to involve the business community in general and transnational corporations in particular in its work aimed at solving the problems of world development. The UN has called on global business leaders to adhere to universal principles in the field of human rights, labor standards and environmental protection in their activities. As a result, the Global Compact initiative was launched in July 2002, under which entrepreneurs commit themselves to making these universal principles an integral part of their activities.
In the report of the UNCTAD secretariat on August 15, 2003, the question of the corporation's responsibility to society was formulated, it was emphasized that the problem of the impact of the enterprise's activities on society is of a global nature.
The report gave a description of the discussions related to the concept of "corporate social responsibility" (CSR). As the authors of the report explain, most definitions of CSR describe it as “the adoption of measures by which an enterprise takes into account social interests in its business policies and activities, including environmental, economic and social aspects.”
As a minimum, businesses must comply with statutory requirements. In those countries where the obligations are not legally defined or not well defined, it is very important that these enterprises still implement measures that meet the needs of society.
The authors emphasized the fact that social responsibility extends to the direct consequences of the enterprise's activities, as well as their indirect impact on society. However, the text of the report noted - "to what extent enterprises should be held responsible for such external influences is still under discussion."
In the absence of sufficient trust between society and businesses, corporate claims of good conduct are often questioned unless they are supported by comprehensive and verifiable information.
At various levels, including international, work is underway to clarify the definition of the boundaries of corporate social responsibility. Guidelines for enterprises have been developed by UNCTAD, the ILO, and the OECD.
The UN Global Compact initiative is an attempt by a number of UN agencies and businesses to help guide the selection of guidelines. Other initiatives include work carried out within the EU, which is still at an early stage of development.
The relationship between corporations and society is greatly influenced by international initiatives in the field of CSR, as well as codes of conduct, the number of which has been rapidly increasing in recent years. But verification of their implementation is clearly insufficient, which does not provide a level playing field in the field of CSR. There are also significant shortcomings in corporate governance.
The effectiveness of CSR is facilitated by pressure from the public and the threat to the reputation of firms. Recent studies on the relationship between compliance business ethics and financial results The company's activities have shown that those enterprises that comply with ethical standards of behavior have more successful financial performance in the long term compared to those that do not adhere to these standards.
The definition of corporate social responsibility has evolved over time. According to UNCTAD specialists, there is still no globally recognized definition of CSR, just as there is no consensus on the problems that this concept covers. It is generally recognized that CSR is not just a charity or compliance with the law. The common denominator of most definitions is that CSR is the concept that businesses integrate social and environmental concerns into their business policies and activities in order to improve their impact on society.
A report by the UNCTAD Secretariat (2003) provides several definitions. Let's take some of them. Let's take it first definitions of private sector entities. For example, here is the definition of an organization Social Responsibility of Business Circles (SOD): “CSR means doing entrepreneurial activity so that it meets the expectations of society or even exceeds such expectations in ethical, legal, commercial and general civil aspects”;
Significantly different from the definition of SOD is the wording "World Business Council for Sustainable Development (WBCSD)":“CSR is the continued determination of entrepreneurs to demonstrate ethical behavior and contribute to economic development, while improving the living standards of workers and their families, as well as the local community as a whole”;
Let us now take the definitions of international organizations:
The World Bank believes that: "CSR is the intention of entrepreneurs to contribute to sustainable economic development by working with workers, their families, the local community and society at large to improve the quality of life in ways that are beneficial to business and conducive to development."
According to OECD experts: “Corporate responsibility refers to the effectiveness of the degree to which business enterprises relate to the society in which they operate. A key element of corporate responsibility is the entrepreneurial activity itself.”
It should also be mentioned that some international organizations were developing the rules of social responsibility of enterprises on their own, even before the adoption of the Global Compact in 2000.
A report by the UNCTAD Secretariat lists a number of such initiatives. In our opinion, the most important among these initiatives were the following:
one)." ILO Principles on Multinational Enterprises”. Within the ILO, a tripartite body comprising representatives of governments, workers' and employers' organizations developed the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. The purpose of the Declaration was to set employment standards for business enterprises. The Declaration covered issues such as non-discrimination, job security, professional training, wages, benefits and working conditions, occupational health and safety, freedom of association and the right to organize. But, as noted in the UNCTAD Secretariat report, this review of principles has been criticized. It had a poorly designed methodology and lacked statistical data in the analysis, making it impossible to compare trends over time. The ILO is currently attempting to address these issues through the introduction of supplements and a more detailed questionnaire for TNCs and the World Federation of Trade Unions.
2).“ Principle corporate governance OECD". The OECD plays a prominent role in promoting corporate governance. In 1999, within its framework, a version of a set of internationally agreed corporate governance principles was prepared. They introduced the concept of a corporation's responsibility to its stakeholders, as well as to its shareholders. But, as emphasized by the authors, the principles are not binding.
3).« OECD Guidelines for Multinational Enterprises”. For the first time, OECD member countries agreed on a set of Guidelines for Multinational Enterprises back in 1976. But they were revised in 2000 and approved by 36 countries. This document represents the most comprehensive set of multilaterally adopted guidelines. They cover issues such as information provision, employment, labor relations, environmental protection, bribery, consumer interests, science and technology, competition, taxation. The guidelines are accompanied by implementation provisions that provide for the establishment of national points of contact in each host country through which complaints can be lodged and disputes between businesses and other parties can be resolved. However, as the authors of the UNCTAD Secretariat report note, the guidelines are often criticized for their lack of clarity on application and on who can file a complaint and how. Other OECD initiatives are also being developed, including the Bribery Convention and guidelines for consumer protection in e-commerce.
four) " United Nations Global Compact» It was an initiative of the then UN Secretary-General Kofi Annan. It was aimed at promoting development and called on enterprises to adhere to the basic principles of environmental protection, respect for human rights and labor standards in their business activities. The principles of the Global Compact are based on the UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the principles of environment and Development, adopted in Rio de Janeiro in 1992.
The Global Compact initiative includes a network of UN agencies, enterprises, business associations and civil society organizations. It calls on businesses to respect and apply these principles, to report to the Global Compact coalition on the most valuable examples of the application of these principles, and to participate in projects that are carried out in developing countries with UN agencies and civil society organizations. Since January 2003, the 700 enterprises participating in the Global Compact coalition have been required to indicate in their annual reports what actions they are taking on all major principles. However, the format and methods of providing information are determined by each enterprise independently.
Issues related to corporate social responsibility are still little discussed by workers' organizations. An exception is the "Principles of the International Labor Organization" discussed above. The development of a tripartite declaration of principles concerning transnational enterprises and social policy was a major step forward. This declaration could be actively used in the struggle to improve the condition of the working people. But, unfortunately, as far as we know, the principles of the ILO are rarely mentioned in the socio-political life of countries where TNCs operate. An exception, perhaps, are the issues of wages, benefits and working conditions.
This can be seen in the example of enterprises owned by foreign companies operating in Russia. The Russian press even talks about these enterprises as sources of "trade-union disease", which risks infecting "the entire domestic industry".
Indeed, recently there have been a number of clashes at foreign enterprises in Russia, in which trade unions took part, defending the interests of their collectives.
Here is one of them. Ilsiyar Sherafutdinova, a painter at the paint shop of the GM-AvtoVAZ joint venture, who also served as deputy chairman of the factory trade union committee, was fired in November 2006. Many months of union struggle followed the decision to dismiss her. Her associates picketed the plant, bombarded the courts with lawsuits, sent complaints to the head office of the General Motors corporation. After the outcry from Detroit, the JV leadership had to back down. The employee was reinstated. She was even paid a salary for all the time she was forced to absenteeism. Similar stories at Russian enterprises are not uncommon.
Second example. One of the most successful actions was a daily strike at the Ford plant in Vsevolzhsk, which led to a 14-20% increase in wages, as well as an expansion of the social package and the list of job guarantees for workers. This company was organized by the former Ford welder Alexei Etmanov, who three years ago established an independent trade union organization at the enterprise.
Another, this time already “Italian”, strike took place in May 2007. at the Heine Ken factory in St. Petersburg. essence Italian strike consisted in the fact that the drivers of forklifts, observing all the norms labor code, regulating the work of the enterprise, moved around the territory of the plant on loaders at a prescribed speed of 5 km / h, with any, even the most insignificant, breakdown, the loaders were immediately sent for repair. As a result, the volume of deliveries of the plant's products has noticeably decreased, some experts spoke about a decrease in the company's income. The demands of the workers were traditional: higher wages, better working conditions and other benefits.
Employers were against it, arguing their position with a description economic situation in the country. Thus, the vice-president of the company, Viktor Pyatko, was convinced that his plant was not able to pay workers the same salary as in European enterprises. “In Europe, a bottle of beer costs 2 euros, while in our country it costs 15 rubles, so the wages of workers should also differ significantly,” Pyatko comments. However, despite this, 370 out of 480 factory workers continued the strike for a long time, hoping for satisfaction of their demands.
In addition to the strikes, one must also say about the strengthening of the ties between the trade union organizations of Russia and international associations. Etmanov applied to join the International Metalworkers' Federation, an organization uniting trade unions in various industrial fields, from mining to automotive. Such associations, as Etmanov correctly emphasized, help in solving serious problems with international concerns. So, when a rally in support of Elsiyar Sherafutdinova was held at the GM-AvtoVAZ joint venture, the help of colleagues from Detroit, who put pressure on the management of the General Motors concern, played an almost decisive role.
Of course, along with a more active use of the documents of the ILO and other organizations on the principles of social policy, their further improvement is necessary.
A resolute struggle against violations of the principles of corporate social responsibility is also necessary. This was clearly shown by the process that went down in history under the name of "accounting crisis".
The crisis of corporate governance at the beginning of the XXI century.
Starting in the United States, the so-called accounting crisis has also affected the countries of Western Europe and a number of other countries. It led to the moral discrediting of the corporate socio-economic system. G. B. Kochetkov and V. B. Supyan, characterizing the American model of the corporation, emphasized that the beginning of the 21st century was a period of serious aggravation of problems in the field of corporate business in the United States. A series of large-scale scandals that shook the most influential corporations in various areas of the US economy forced a critical look at the state of affairs in corporate governance, at many seemingly unshakable business rules and procedures, at the state of corporate morality and ethics.
On November 28, 2001, one of the largest energy companies in the US and the world, Enron, was declared bankrupt. The bankruptcy of Enron began as a true American miracle. The company appeared in 1985 and in just 15 years it has become the seventh largest in America. But in the fall of 2001, a huge scandal erupted. The journalists discovered that the corporation was cheating with its reporting, overestimating its profits. And this, in turn, allows the stock to rise sharply in price. The management of the company profited by selling its securities at the very peak of their value. And at the same time, they willingly wrote out bonuses and additional fees “for hard work”. Information about the fraud immediately "collapsed" the company's shares, and with debts of $ 40 billion, Enron was declared bankrupt.
How could such a huge fraud happen in the "most economically developed" country in the world? After all, the company met all the requirements of international reporting standards, Russian journalists Anna Kaledina and Mikhail Khmelev ask a question. And they themselves answer this question: “It turns out that it was these very standards that allowed the management of the company to lead the shareholders by the nose, and the auditing company Arthur Anderson (its collapse followed the Enron case) - either not to notice, or cover up machinations .
This case could not end peacefully. Shareholders lost more than $60 billion, and company employees lost $1.2 billion of their pension savings. But the leadership was enriched by hundreds of millions of dollars. The trial in the case lasted four years. The court of Houston (Texas) sentenced one of the main perpetrators of the bankruptcy, the former executive director of Enron Corporation, Jeffrey Skilling, to 24 years and 4 months in prison. The second culprit of the bankruptcy of Enron, the founder of the company Kenneth Day, did not wait for the verdict - he died on July 5, 2006 from a heart attack.
This and subsequent corporate crises are viewed in the United States as the most severe shocks to the foundations of the corporate governance system since the crisis of the 1920s. and the Great Depression that followed.
The Enron case was followed by a number of other scandals. The study by G. B. Kochetkov and V. B. Supyan provides data on fraud of 24 more companies. Here are some of them: WorldCom committed one of the largest financial improprieties. Company hid $3.8 billion in profits Xerox asked for a correction in its financial statements for 5 years, due to alleged errors in the audit of $6 billion Merril Linch - the largest investment adviser - was caught in "fake advice" when investing. The largest US financial group, JP Morgan Chase and Co, was involved in fraud to hide Enron's $4 billion debt. The largest US banking group, Citigroup, was caught in fraud to help Enron cover up part of the debt in the amount of $ 4 billion, General Electric was involved in financial fraud with WorldCom.
On June 19, 2008, according to the American press, two former Bear Stearns hedge fund managers were arrested. The authorities claim that they concealed negative information about the position in the company and used this information for personal gain. The US Federal Attorney's Office opened a criminal case. Both face charges of securities fraud.
Bear Stearns hedge funds invested in risky mortgages that caused investors to lose $1.6 billion. But that was only the beginning of the crisis. And the general massive revaluation of the cost of mortgage and credit instruments led to losses by the country's financial companies, according to Bloomberg estimates, as of July 2008, $397 billion.
As of the end of August 2008, the total losses of the financial sector, according to analysts, exceeded a trillion dollars. The fall in housing prices in the US has already reached 20%, almost three million families are not paying their mortgages, they are de facto bankrupt.
The manifestations of the crisis are very significant in the countries of Western Europe, in particular, in Germany. Journalists argue that German concerns are increasingly clearing their way to the markets of other countries with the help of bribery and bribes. Neither mass searches in companies nor arrests of top managers can stop this process.
“The scandal flares up around Siemens,” the journalists emphasize. At the end of 2006, almost three hundred law enforcement officers from Germany, Austria, Switzerland, who were joined by representatives of the Italian prosecutor's office, carried out searches and seizures of documents in the European offices of the company. The management of Siemens is accused of massive bribery of foreign officials totaling at least 100 million euros. Twelve high-ranking employees of the concern were among the suspects. Two of the suspects hold seats on the board of directors of the Siemens Communications Group, the telecommunications division of the concern.
“This is a powerful blow to the reputation of German business. Siemens is the face of the German economy, one of the largest German exporters. Two-thirds of its nearly half a million employees work abroad. And now the concern is at the center of a corruption scandal,” Caspar von Hauenschild, board member of Transparency International Deutschland, complained to Expert.
The investigation, which threatens to significantly spoil the image of German business in the eyes of the world community, was initiated by the Swiss prosecutor's office. Back in 2005, Swiss investigators stumbled upon a chain of front companies that served as a transshipment point for money transfers to officials in various states. The most scandalous thing is that bribes were intended for officials not only in third world countries, but also within the EU.
As Sergei Sumlenny emphasizes, corruption scandals around Siemens occur with enviable constancy. In 2003, the concern was accused of bribing officials during the construction of a high-speed railway in South Korea. In 2002, two employees of the concern were found guilty in the case of giving bribes to Italian officials in the amount of 6 million euros - so Siemens was going to win a tender for the construction of power plants in Italy. Now "Siemens" is doing everything to shift the responsibility for corruption on the shoulders individual employees and save the company's reputation.
The Siemens situation is not the only such scandal shaking German business. Klaus Volkert, the former Chairman of the Volkswagen Works Council, was recently arrested. He is accused of bribing foreign suppliers of spare parts, as well as massive costs: under his leadership, the money from the salary and insurance fund of the company was actively spent on sex tourism for members of the board of directors. "Volkswagen" became the hero of another scandal. The Attorney General of the European Court of Justice found the German “Volkswagen Concern Law” contrary to EU law. European officials have long resented the fact that this law provides representatives of the government of Lower Saxony, where the headquarters of "Volkswagen" is located, two seats in the management of the group. Thus, Kompaniya magazine emphasized, the European Commission almost succeeded in destroying the protective field around the Volkswagen.
Another automaker, Daimler-Chrysler, is at the center of the scandal. At the end of 2006, charges of bribing Turkish officials were brought against the leadership of the group's bus division. The head of the division resigned - "for personal reasons." At the same time, the management of the concern suspended several top managers from work, whose names were not named. This is not the first such accusation against the auto giant. In 2004, the American commission on stock exchanges and securities accused the company of bribing officials in more than a dozen countries around the world - from Poland to Ghana.
Economic crimes committed by employees of German companies are not limited to the distribution of bribes. In August 2006, the Hamburg prosecutor's office indicted eight top managers of the Metro Group. The company's management was accused of taking bribes from the Philips electronics manufacturer and providing the company's products with unacceptable competitive advantages.
Although bribery of foreign officials has been a criminal offense in Germany for 7 years, the number of German companies seeking to gain a competitive advantage abroad through bribes is not decreasing, but growing. According to the estimates of the Federal Criminal Police (BKA), in 2006 alone, the number of registered economic crimes in the country increased by 9.9% and reached 90,000. Bribes account for half of these crimes.
Phenomena, which are conventionally called the accounting crisis, also take place in other countries, in particular, in France. Thus, top managers of the largest French oil company Total are suspected of giving bribes to officials of the Middle Eastern countries in exchange for obtaining contracts for the development of gas and oil fields. French police at the end of March 2007 interrogated CEO"Total" by Christophe de Margerie and other top managers of the oil company.
In the 1990s, de Margerie was in charge of Total's operations in the Middle East. It was during this period that the French company signed a number of promising contracts in this region. The investigators were primarily interested in the conditions for obtaining rights to develop the largest South Pars gas field in Iran. A $2 billion contract signed in 1997 awarded the right to develop the South Pars field to a consortium of Total, OAO Gazprom, and the Malaysian company Petronas. The investigating authorities suspect that there were some bribes to Iranian officials. In addition to this case, other episodes of corruption among the top managers of Total are being investigated in France. One of them concerns the implementation of the Oil for Food program. Total is suspected of paying commissions to Iraqi intermediaries in exchange for allowances under the program. In October 2006, in connection with this case, de Margerie spent 48 hours under arrest at the French police station. The investigation into the Iranian and Iraqi cases continues.
In France, the case of the Elf company also gained great fame. During a 10-year trial, direct damages were established at 300 million euros. In this case, more than a thousand employees of the company were involved as defendants.
As a means of combating corruption and fraud in the UK, a kind of code of so-called ethical consumption and ethical investment has been adopted. The no-consumption policy of multinational companies found to be using child labor, cruelty to animals, or harming the environment has cost these companies £2.6bn.
In 2003-2004 there was a scandal with one of the largest companies in Italy - "Parmalat". On charges of falsification financial statements, fraud and market manipulation, executives, accountants and advisers of the company were arrested. $13 billion in missing assets, a $5 billion account with Bank of America that never existed, hundreds of millions of dollars of false invoices for unsold merchandise, $640 million belonging to " Parmalat" and missing in an investment bank in the Cayman Islands and many other "arts". The company managed to save itself only with the help of the state.
In June 2007, four of the world's leading investment banks (Citigroup, UBS, Deutsche Bank and Morgan Stanley) were indicted by Italian justice for complicity in the fraud of Parmalat, which led to its bankruptcy, perhaps , the most devastating in European history, comparable to the collapse of the American company Enron. The prosecution alleges that the banks disseminated false information about the situation in the company. The hearing of the case continues.
An indicator of the crisis of corporate governance is the widespread development of corruption.
Transparency International (TI) compiles an annual Corruption Perceptions Index based on expert questions. In 2006, 163 countries were included in the Index. Countries are ranked on a scale from 0 to 10 points. Zero indicates the highest level of corruption, 10 the lowest. Finland, Iceland and New Zealand received the highest TI score, as they did last year, with 9.6 points each. Almost half of the countries included in the list (71) scored less than 3 points. In these countries, bribery is perceived as an extremely acute problem. Russia is also included in the group of such countries. In 2006, she received 2.5 points (127th place), her neighbors are Honduras, Nepal, the Philippines, Rwanda. The situation with corruption in Russia is not improving: the results of surveys of entrepreneurs, analysts, risk assessors do not allow TI to give our country even a "troika". In 2004, Russia received 2.8 points (90th place out of 146 countries), and in 2005 - 2.4 points (126th place out of 150 countries).
According to the Indem Foundation's estimate in 2005, business corruption in Russia is $316 billion, with another $3 billion related to bribery in the domestic sphere. In the 2006 report, TI emphasizes the need to take measures to combat corruption not only on the demand side (extortion of money by officials) but also on the supply side (willingness of businessmen and citizens to pay bribes).
In an attempt to stop the avalanche of revelations, or at least weaken its impact on the minds of Americans and citizens of other countries, US government circles took extreme measures. In 2002, the Sorbanes-Oxley act was adopted. In accordance with it, the leaders of the largest American companies were obliged to personally check the books of their companies and take an oath on the bible that all entries in them are accurate. Violation of such an assurance was punishable by a fine of up to $15 million or imprisonment for up to 10 years.
Some analysts believe that this measure could provoke an aggravation of the crisis of the entire system both in the US and in Europe. At the same time, the adoption of the Sorbanes-Oxley act can also be seen as the beginning of a transition to a “new course” like Roosevelt’s “New Deal” of the 1930s. in his modern form. This is also evidenced by the increased activity of mixed public-private institutions in a number of countries.
The most socially responsible companies in the world
Business awareness of its social responsibility is one of the keys to the successful and harmonious development of society, preventing its stratification and internal conflicts.
As we have already noted, the problem of "social responsibility" of business has been increasingly discussed in recent years in many countries around the world. Natalya Kirillina believes that there are currently three main approaches to solving this problem in the West. Supporters of the first insisted and continue to insist (at least some of them) that the only task of entrepreneurs is to increase profits. Kirillina calls this approach the theory of corporate selfishness.
There is also a directly opposite view - a kind of corporate altruism.
However, the third approach, which is somewhere in between the first two, has the largest number of adherents.
The development of the policy of corporate social responsibility in theory and in practice forms new approaches. Among large corporations, there is a growing number of active participants in social activities, which are not only charity, although it includes it. According to rough estimates, charity spending today is about 3% of the income of enterprises.
Meanwhile, contemporary role very large corporations within the already existing programs corporate social responsibility significantly exceeds this general figure of a few percent of corporate income devoted to charity. Suffice it to say that today the vast majority of OKCs are involved in this activity in one form or another.
The influential American magazine Fortune, with the help of British consulting firms, ranked the most socially responsible companies in the world. The winners were evaluated on how the company takes into account the interests of shareholders, employees and consumers, how it reacts to criticism, whether its managers and board of directors are responsible, whether it hires an external controller. The outsiders are those who prioritize exclusively material gain.
As a result, the OKC of the countries of Western Europe unconditionally won. The first 10 places on the list are behind them. Moreover, 5 of them belong to British and Anglo-Dutch corporations, 4 - French, 1 - Italian.
The winner of the rating is the cellular company Vodafone. This world's largest mobile operator has provided subscribers in Kenya with the opportunity to conduct banking transactions with cell phone. Provided discounts for rescue workers. And for clients concerned about the content of the Internet, I implemented filters so that their children do not see what is not necessary.
Only in 12th place behind the Europeans is the Japanese energy company Tokyo Electric Power. And behind it are four American corporations at once.
If we talk about industries in the ranking of social responsibility, then at first glance, the fuel and energy complex is in the lead. This is evidenced by the fact that oil and gas giants BP and Royal Dutch Shell are in second and third place. And in total there are 6 representatives of the fuel and energy complex in the top ten. Giant profits from record oil prices allowed fuel and energy companies to allocate more funds to solve social problems. The compilers of the rating clearly did not take into account carbon dioxide emissions into the atmosphere as a negative for society, the root cause of which is the growing use of hydrocarbons. However, in general, the aggregate rating of the oil and gas sector has decreased compared to last year. This happened despite the fact that the Russian Gazprom (51st place) got into it for the first time. It became the only Russian company on the list of the world's most socially responsible companies.
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Corporation name |
Indicators-criteria |
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Revenues, billion dollars |
Changes compared to 2004, % |
Assets, billion dollars |
Place among the 500 largest companies in the world |
Number of employees, thousand people |
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Great Britain |
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Great Britain |
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"Royal Dutch Shell" |
UK and the Netherlands |
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"Electricité de France" |
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HSBS Holdings |
Great Britain |
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»Veolia Environment» |
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Great Britain |
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An analysis of the composition of the most socially responsible corporations allows us to draw 3 conclusions:
Firstly, they are dominated by OCCs that implement especially high profits. An example is not only representatives of the fuel and energy complex. Here are financial giants (the English banking holding HSBS Holding, etc.) and the largest trading corporations (Carrefour). One should not underestimate the primacy of the Vodafone group, which is a representative of the rapidly developing "new economy" (the latest information technologies, etc.).
Secondly, it must be said that among the "exemplary" socially responsible corporations, those whose production and other activities are most closely related to personal consumption, the satisfaction of people's needs, also have a wide participation. Among the leaders, one can point to the Carrefour trade association, other trade groups that are especially actively involved in retail(American "Wall-Mart", French "Auchan", etc.), the largest corporation in Food Industry Nestle, etc.).
Thirdly, it is necessary to emphasize the active representation of state or public-private enterprises in this rating. Communication with the state strengthens their social responsibility, stimulates the corresponding social activity.
Among the most active in the field of corporate social responsibility is one of the richest people in the world - Bill Gates. He is the founder of the world's largest corporation, Microsoft.
Bill Gates was born into a wealthy family. Without much difficulty he entered Harvard University. However, he quickly abandoned his studies, deciding to start creating computer programs. In 1975, together with childhood friend Paul Allen, he created the Microsoft company. The rapid development of this company has made it a world market leader software. Operating system Windows, which is owned by Microsoft, forms the basis of the memory of 90% of the world's personal computers. In recent years, he has set up a foundation with his wife, Melinda, to fight poverty and diseases such as AIDS. With grants from this Gates Foundation, medical facilities are being built in a number of countries. Spouses monitor the work of the fund personally. In addition, Gates founded a corporation that creates a digital archive of works of art. According to press reports, Gates has now decided to focus entirely on the activities of his foundation.
As another example, one can take the most rich woman France, Europe and possibly the whole world - Liliane Betancourt. She owns a large stake in the huge L'Oreal concern, as well as part of the capital of the famous Swiss company Nestlé. The amount of capital controlled by Betancourt is estimated at $25 billion.
The L'Oreal group currently accounts for 12% of the global turnover of cosmetic products and occupies the 1st place in the international perfume hierarchy. It has long been a giant transnational enterprise. Of the 74 factories of the company, 40 operate in the USA, Germany, Belgium, Great Britain, and Italy. L'Oreal spends millions of euros on medical research in a wide range of fields, equipping hospitals.
As for the social responsibility of Russian entrepreneurs, it still remains at a fairly low level. According to experts at the end of 2007, more than 60% of domestic businessmen do not believe that their responsibility extends beyond providing working conditions for their employees. According to the European Institute of Management, Russia occupies last place on social responsibility of business.
But lately the situation has begun to change. It is already possible to give examples of ongoing shifts. Among them is Vladimir Potanin's non-profit foundation. Founded more than 10 years ago, it is engaged in education and culture. Students of some universities, in particular, the Institute of International Relations, which Potanin himself graduated from, have the opportunity to receive scholarships and grants for study from this fund.
Another famous Russian businessman is Roman Abramovich. Until recently, the governor of Chukotka, he made an important contribution to the socio-political development of the region. For example, he put into practice the summer trips of children to the warm sea. At his expense, new schools were built and provided with computers, modern hospitals and medical centers appeared.
Of course, it would be wrong to exaggerate the degree of social responsibility of even "exemplary" corporations. Familiarization with the content of the "accounting crisis" indicates that the process has not yet received a sufficiently wide scope. The mechanisms for influencing the leaders of the OKC and stimulating them have not yet been fully formed. Not all of them realized the deep need for socially responsible behavior of corporations and the danger for the OCCs themselves, society as a whole, if social activities are ignored or underestimated.
Introduction
Corporate social responsibility is, firstly, the fulfillment by organizations of social obligations prescribed by law, and the readiness to strictly bear the corresponding compulsory expenses. Secondly, CSR is the readiness to voluntarily bear unnecessary expenses for social needs in excess of the limits established by tax, labor, environmental and other legislation, based not on the requirements of the law, but on moral and ethical grounds. In general, CSR involves:
Production of sufficient quantities of products and services, the quality of which meets all mandatory standards, while complying with all legal requirements for doing business;
Observance of the right of workers to safe work with certain social guarantees, including the creation of new jobs;
Assistance in improving the qualifications and skills of personnel;
Protecting the environment and saving irreplaceable resources;
Protection of cultural heritage;
Supporting the efforts of the authorities in the development of the territory where the organization is located, assistance to local institutions social sphere;
Help for low-income families, the disabled, orphans and lonely elderly;
Compliance with generally accepted laws and regulations ethical standards business.
aim this study is the analysis of corporate social responsibility in MTS OJSC.
Targets and goals:
· To study the activity of the enterprise;
· Conduct an analysis of internal CSR at the enterprise;
· Conduct an analysis of external CSR at the enterprise;
· Make conclusions about the development of CSR, as well as recommendations for the development of CSR at the enterprise.
CHAPTER 1. BRIEF DESCRIPTION OF MTS OJSC ENTERPRISE
JSC Mobile Tele Systems (MTS) is a leading telecommunications operator in Russia and CIS countries. The consolidated subscriber base of the company, excluding the subscriber base of MTS Belarus, is about 100 million subscribers. MTS and its subsidiaries provide services in the GSM standard in all regions of Russia, as well as in Armenia, Belarus, Ukraine, Uzbekistan and Turkmenistan; in the UMTS standard - in all regions of the Russian Federation, Armenia, Belarus; in the CDMA-450 standard - in Ukraine; in the LTE standard - in Russia and Armenia. The company also provides fixed-line and cable TV services in all federal districts of Russia with more than 7 million broadband access and pay TV subscribers.
In 2014, for the seventh year in a row, the MTS brand entered the top 100 most valuable brands in the world in the BRANDZ™ ranking published by the international research agency Millward Brown, was recognized as the most expensive Russian telecommunications brand, and entered the top ten largest global telecommunications brands by value.
The company provides high-quality voice communication, data transmission and high-speed Internet access services, offers new tariff plans and innovative services that meet the diverse needs of a wide range of private and corporate subscribers. Thanks to the extensive network coverage area and roaming agreements, MTS subscribers remain connected in almost all countries of the world, and Internet roaming is available in more than 200 countries. MTS prioritizes customer service and maintenance. The company is developing its own retail network, represented by more than 4,000 stores, and has a wide dealer network of points of sale throughout the country.
Today, MTS is a successful multi-service company providing subscribers with unique converged products and services based on advanced technical solutions. The development strategy of MTS Group for 2014-2016 "3D" ("data, differentiation dividends") is aimed at strengthening leadership in the Russian telecommunications market by increasing the penetration of mobile Internet services, diversifying services, increasing operational efficiency and investment attractiveness of the company for shareholders.
To achieve its goals, MTS is actively building high-speed mobile networks and developing its own transport infrastructure. At the end of 2014, MTS LTE networks operated in 76 regions of Russia. As part of the implementation of the MTS GPON project, the company provides an opportunity to connect to a fiber-optic line, which allows you to use fixed Internet at speeds up to one Gbps. In addition, MTS offers fixed FTTB/FTTH solutions in more than 180 Russian cities, and also uses its retail network to increase the penetration of subscriber devices for Internet access, developing its own branded line of affordable smartphones.
Based on synergy with a fixed broadband client, MTS has access to digital cable and television (IPTV and DVB-C), video services, integrated solutions for offices that combine fixed and mobile communications.
MTS actively develops navigation and telematic services, M2M solutions, which are widely used in various sectors of the economy, develops new business areas, offering electronic document management services and solutions based on cloud computing. In close cooperation with MTS Bank, the company provides banking and financial services in its retail network, develops services of mobile commerce and contactless payments based on NFC technology.
MTS Group is the undisputed leader in absolute terms of revenue, OIBDA and OIBDA margin among the Big Three operators. The consolidated revenue of the MTS Group for the first nine months of 2014 increased to 303.6 billion rubles, the consolidated OIBDA for the first nine months of 2014 increased to 132.9 billion rubles, the OIBDA margin for this period amounted to 43.8%.
MTS is one of the blue chip companies Russian market shares and is one of the ten largest mobile operators world in terms of subscriber base. Since June 2000, MTS shares have been listed on the New York Stock Exchange under the symbol MBT. The largest shareholder of MTS is AFK Sistema, which owns 53.5% of the operator's shares, about 46.5% of the shares are in free float.
CHAPTER 2. ANALYSIS OF INTERNAL CSR AT MTS OJSC
MTS provides telecommunications services to more than 100 million subscribers in Russia and the CIS, countries of Eastern and Central Europe. The quality of life of all these people is affected by our technologies, price policy, connection quality. They are fully aware of their responsibility to their customers, and therefore sustainable development for MTS is, first of all, a mechanism that:
· contributes to sustainable development, health and well-being of society;
takes into account the expectations of interested parties;
integrated into the activities of the Company and implemented by it in practice;
Complies with the law and is consistent with international standards of conduct;
· Helps to increase the transparency of the Group and improve the management system.
One of the main principles of MTS is the integration of corporate social responsibility into all aspects of the Group's activities. MTS firmly follows the adopted strategy in the field of sustainable development. By sustainable development, MTS understands a system of consistent economic, environmental and social measures implemented on the basis of constant interaction with stakeholders and aimed at more effective risk management, long-term improvement of the image and business reputation MTS Group, as well as the growth of capitalization and competitiveness.
The principles of conducting socially responsible business, aimed at ensuring sustainable development and growth of the Company's welfare, formation of a competitive economy, improvement of the quality of life and prosperity of society, underlie the CSR activities of MTS. These principles were formulated with the participation of and taking into account the expectations of all stakeholders.
On the official website, you can get acquainted with the sustainable development reports of the MTS Group, the main charitable projects implemented by the Company, as well as information for feedback. MTS maintains a constant dialogue with stakeholders and give them the opportunity to get all the information about their social activities.
The policy "MTS activities in the field of corporate social responsibility" is aimed at supporting the business strategy of the Company and since 2014 is based on the principles of three "d":
· data,
differentiation,
Dividends.
At the end of 2013, the corporate strategy of MTS was changed - the Company focused on the development of the data component, a data strategy was developed. Similar changes have taken place in the Company's CSR strategy: since 2013, all CSR projects have become data-oriented.
MTS is actively developing the internal policy of the enterprise. The company has a system of bonuses, benefits, compensations and social guarantees provided for by law, industry agreements with trade unions, collective agreements, corporate social package. The company also conducts activities to obtain vouchers to sanatoriums, travel to places of rest.
The Company operates the Corporate University, which sets the standards of training and coordinates the processes in the field of training and development of personnel. The tasks of the Corporate University also include building training systems for various functional divisions of the company. The mission of the Corporate University is to create development opportunities, expanding the boundaries of people and business, for a confident future of MTS.
The company performs an analysis of the effectiveness of the implementation of the CSR policy based on the target values established at the planning stage, key indicators reflected in the CSR strategy of MTS. Based on the results obtained, the Company assesses the relevance and completeness of the CSR policy. As part of this assessment, the need to revise the areas of activity in the field of corporate social responsibility for the next year or adjust the values of target indicators is discussed.
CHAPTER 3. ANALYSIS OF EXTERNAL CSR AT MTS OJSC
CHARITY POLICY:
Charity is the most important part of MTS's social responsibility. The Company's activities in this area are determined by the following principles:
· priority projects are aimed at improving the quality of life of society;
· MTS are interested in projects that can be implemented as widely as possible within the territories where MTS operates;
· MTS, implement projects aimed at creating equal conditions and opportunities for residents of remote regions and large centers;
MTS, believe that modern innovative technologies make a significant contribution to improving the quality of life, so our priority is charitable projects in which our technologies, products and services contribute to solving this problem;
· MTS believes that the society is most in demand for charitable projects aimed at improving health, as well as projects that contribute to the harmonious development of the younger generation;
· MTS, ready to cooperate with authorities, non-profit organizations, representatives of the business community in the implementation of joint charitable programs that comply with the social and charitable policies of MTS, on the terms of equal partnership and subject to the legal and other restrictions applicable to the Company.
CSR - MTS projects are implemented in the following strategic areas:
Help for children
Support for veterans of the Great Patriotic War and the communications industry;
Help for the elderly
assistance in the socialization of disabled people;
support for those affected in emergencies.
We pay special attention to socially vulnerable children at MTS. MTS employees, together with partners, regularly hold events for orphanages, children with disabilities and children from disadvantaged and low-income families throughout Russia.
In 2014, permanent creative workshops organized by the best teachers, directors and volunteers will start functioning for the children of sponsored institutions. The result of joint creativity, vocal and dance numbers, performances, children will be able to show at the final Festival of Workshops, which MTS plans to hold at the end of the year.
Since 2012, MTS has been running a corporate volunteer puppet show"Mobile Theater of Fairy Tales". The theater's repertoire includes several performances, including the educational musical fairy tale "Children on the Internet", which MTS volunteers show to children in sponsored orphanages. In 2013, the "Mobile Theater of Fairy Tales" became a member international festival High Fest in Yerevan as a unique corporate volunteer puppet theater.
In 2014, one of the landmark projects for MTS was the project “Networks are submissive to all ages”, which was included in the TOP-20 projects of the “Best Social Projects in Russia” Program. The objective of the project, which MTS has been implementing for 3 years together with the Internet Development Fund, is to popularize modern information technologies and useful online services among older people, helping them to acquire practical skills in using the Internet to solve everyday problems. MTS, being one of the largest operators providing mobile and fixed Internet access services, sees its social mission in providing equal access to the digital world for people of all ages. As of the end of 2014, there were more than 10 Internet literacy training sites in Russia - in the Samara Region, Obninsk, St. Petersburg, Kazan, Tula, Kirov, Perm Territory, Kemerovo, Amur Region, Kamchatka and Sakhalin. In total, more than 9,000 people have gained Internet skills during the existence of the project. In 2015, MTS plans to launch the "Mobile Academy" - special classes for teaching people over the age of 50 how to use the mobile Internet.
In 2014, MTS started implementing the national educational project"Children teach adults", aimed at teaching teenagers to their parents useful opportunities mobile Internet. The project won in the Social Responsibility and Charity nomination of the Crystal Pyramid award. "Children teach adults" allows adults to overcome the technical and psychological "barrier" when using the mobile Internet, and children - to realize their creative potential. The “reverse lessons” competition aroused genuine interest among teenagers, it allowed them to gain skills in the beneficial use of information technology and find new points of contact in relations with their parents.
In the reporting period, MTS actively developed the educational and exhibition project "Children on the Internet" - a set of educational events that combines interactive exhibitions, a series of training lessons for junior schoolchildren and parent meetings. The project is implemented by MTS jointly with the Internet Development Fund with the support of the Ministry of Communications and mass communications Russian Federation, as well as the Ministry of Education and Science of the Russian Federation since 2011. The purpose of the project is to inform children of primary school age, parents and teachers about potential risks when using the Internet, ways to protect against online threats and useful features global network for education, development, communication and leisure. In just 4 years, the exhibitions were held in more than 30 cities of Russia and Belarus, over 300 thousand people took part in the project. In 2014 exhibitions were held for the first time in Siberia (Barnaul, Tomsk) and in the south of Russia (Krasnodar). The key vector in the development of the project in the reporting period was the Interregional Scientific and Practical Program "Digital Childhood: Socialization and Security", which was attended by more than 650 educators and over 5 thousand children from seven regions of Russia: Moscow, Moscow, Nizhny Novgorod and Sverdlovsk regions, Bashkiria, Altai and Krasnodar Territories.
Along with the main strategic directions, as part of the implementation of activities in the field of CSR, the Company is working in the following areas:
Eco-telecom: a set of measures to improve the environmental sustainability of business and create a culture of respect for the environment and each other among employees, customers and partners of the Company. In 2014, MTS implemented and took part in a number of projects: the eco-campaign for the collection and disposal of used batteries and accumulators "Batteries, give up!" Save the tree" and many others.
Social HR: support and implementation of activities aimed at recruiting and adapting employees of mature age and specialists with disabilities, as well as creating an accessible and comfortable working environment for all categories of personnel. In 2014, MTS supported such major and socially significant events as:
· the annual Forum "Business for Equal Opportunities" is an open platform for discussing the possibilities of business and the state to provide joint assistance in the socialization of people with disabilities;
· the competition for young professionals "Path to Career", which allows businesses to see that, along with other participants in the labor market, there are uncovered resources - young, enterprising and talented professionals with disabilities, professionally trained in various fields;
· The annual dance marathon "Best Friends", in which MTS involves employees, in order to once again draw public attention to the fact that everyone in MTS has equal opportunities. More than 500 people take part in the event;
· sports events aimed at creating inclusion in sports - holding joint football matches and beach volleyball matches with the participation of MTS corporate teams.
· educational business trainings, which are conducted by MTS employees and corporate trainers, as well as summer internship programs.
Charity is one of the most important parts of MTS CSR. The Group's activities in this area are guided by the following principles:
· projects aimed at improving the quality of life of society and providing assistance to seriously ill children are given priority;
· MTS are focused on long-term projects in the field of charity, contributing to the solution of acute social problems, covering wide sections of the population and corresponding to the priorities of the state in the field of social policy;
· MTS is interested in projects that can be implemented as widely as possible within all countries where MTS operates;
· MTS implement projects aimed at creating equal conditions and opportunities for residents of remote regions and large centers;
· MTS believes that modern innovative technologies make a significant contribution to improving the quality of life, therefore, charity projects are a priority for us, within the framework of which our technologies, products and services contribute to solving this problem;
· MTS believes that the society is most in demand for charitable projects aimed at improving health, as well as projects that contribute to the harmonious development of the younger generation;
· MTS is ready to cooperate with authorities, non-profit organizations, representatives of the business community in the implementation of joint charitable programs that comply with the social policy and MTS charity policy, on the terms of equal partnership and subject to the legal and other restrictions applicable to the Company.
The company is convinced that successful business cannot but help those who need help. MTS directs part of its income to finance projects in the field of CSR and charity.
Charitable projects of MTS are implemented in the following strategic areas:
Help for seriously ill children;
Support for WWII veterans;
Help for the elderly;
Assistance in the socialization of disabled people;
· Support for victims in emergencies.
The Group pays great attention to children. MTS volunteers, together with partners, regularly hold various events in orphanages, provide assistance to children from low-income and disadvantaged families, and children with disabilities. Since 2014, a number of MTS sponsored institutions have launched creative workshops organized by the best teachers, directors and volunteers.
For four years now, MTS has been implementing the Donate Kindness charity program (www.dobroedelo.mts.ru), which helps treat children with cancer and other serious illnesses. MTS invests its own funds in the program, and also, thanks to a unique system of work that guarantees safety and targeted assistance to specific children, attracts funding from subscribers, partners and customers. The company actively promotes the development of mass charity in Russia: MTS creates and popularizes modern means of raising funds for the treatment of children, which allow each owner mobile phone make a donation. Funds raised under the Give Kindness! sent for the treatment of 114 children from the regions of Russia.
"Generation of Mowgli" is a key project of the MTS charity program. It is implemented in the “Creativity for Life” format, contributing to the development of mass charity in Russia through the use of Internet technologies.
The MTS company pursues an active policy in the field of CSR, and cannot remain unnoticed. Holding various events for kids, charitable foundations and much more, can not but leave a good impression about this company.
CHAPTER 4. CONCLUSIONS ON THE DEGREE OF DEVELOPMENT OF CSR. RECOMMENDATIONS FOR THE DEVELOPMENT OF CSR AT THE ENTERPRISE
As a result of the work done, it can be concluded that the company is pursuing an active policy in the field of corporate social responsibility. The company also makes plans for the next year in the field of development and improvement of CSR:
· move to a more modern and high-quality level of non-financial reporting: application of the GRI G4 standard, which will allow focusing on the significant aspects of sustainable development of the MTS Group when compiling a sustainable development report;
· more actively use social and educational mechanisms to popularize and promote the use of mobile Internet in society;
· continue to replicate key CSR projects in the regions and countries where MTS operates: Telecom Idea, Networks for All Ages, and Children on the Internet;
· actively develop the creative charitable project "Generation of Mowgli" in Moscow and in the regions of Russia;
· to continue development of the Social HR direction: to expand opportunities for internships, practice and employment of specialists with disabilities, to increase the involvement of the Company's employees in socially significant events aimed at the socialization of young people with disabilities in society;
· to continue work in the direction of "Eco-telecom": to promote an environmentally responsible lifestyle and attitude to natural resources, support for federal and international eco-activities;
Continue work on the application of the provisions international standard ISO 26000:2010 Guidelines for social responsibility.
In our opinion, the company also needs to pay some attention to the development of internal CSR policy, since the company does not fully disclose how social responsibility functions within the company, what it can offer for its staff and what it does not, the detailed development of any activities and etc.
Conclusion
In the process of work, various types of CSR were considered on the specific example of MTS OJSC
Going deeper into the history of CSR development in Russia, MTS sees that in connection with Russia's entry into the world arena, the increasing pace of globalization, the desire of domestic enterprises to receive foreign investment (especially in the context of the global economic crisis), the question arose of introducing new standards of corporate responsibility with a focus on pro-Western model. Reporting standards related to the social responsibility policy have been developed. One of the most famous was the set of nine rules of corporate ethics and social policy of the United Nations Global Compact, proposed by the UN in 2000. The quality of corporate responsibility is assessed by social audit. Some well-known agencies develop social responsibility ratings, which, along with business indicators, influence the capitalization of firms. For example, British Petroleum has pioneered social auditing among oil companies. In Russia, this concept was followed oil company Yukos. A number of business associations are concerned with the development of a strategy for participation in society and the responsibility of business to it. Among the well-known project participants: the Russian Union of Industrialists and Entrepreneurs, the Association of Managers, the Eurasia Foundation, the British Charities Aid Foundation (CAF). And yet it is impossible to consider corporate responsibility without the internal political situation, the specific features of the regions, especially for city-forming enterprises. As a result of these factors, the development of CSR in Russia faces a number of difficulties. Only large, nationwide companies, as well as branches and subsidiaries of international companies, think seriously about the policy of social responsibility and have the financial opportunity. Unfortunately, medium and small businesses, especially in the regions, due to numerous tax payments and other obligatory opportunities to donate their income for the sake of society, organizing only one-time charity events. Consequently, it is necessary to develop corporate social responsibility for both small and large enterprises. large enterprises in Russia and around the world.
Posted On 04/22/2018
Let's take a look at what the COP means the responsibility of the company in practice.
The company implements a policy of corporate social responsibility in three directions.
In relation to society as a whole, the company implements the following areas of social responsibility:
Implementation of a set of measures to optimize production and sale of products necessary for society, in the most efficient way, taking into account the interests of business and society, in a volume, quality and assortment corresponding to market demand;
Ensuring environmental and industrial safety of production
Development and implementation of new technologies and implementation of measures that reduce the negative impact of equipment on the environment;
Strict observance of the legislation of the Russian Federation regarding the payment of taxes.
In relation to local communities as a whole, the company implements the following areas of social responsibility:
Contributes to the employment of the population of the territory of presence through the effective management of jobs with a competitive level of remuneration and social benefits;
Ensures timely transfer of tax and non-tax payments that form local and regional budgets
It implements projects that contribute to the socio-economic development of the territory affected by the company's activities and the social sphere.
Facilitate the provision of charitable assistance to vulnerable categories of the population
In relation to the personnel as a whole, the company implements the following areas of social responsibility:
Organizes a system of relationships on the principles of social partnership;
Creates an atmosphere of trust that enhances the effectiveness of individual work, strengthens team spirit, and focuses on collective results;
Provides a competitive level of remuneration in accordance with the growth of labor productivity and enterprise efficiency;
Strictly observes the norms established by the legislation and collective agreements in the field of social and labor agreements;
Provides safe conditions labor and a high level of social and living conditions at work, based on the priority of the safety of workers and the preservation of their health;
Promotes comprehensive professional and cultural development of employees.
CSR involves different levels of implementation.
1. The basic level is timely cash payments, payment of taxes, and, if possible, the provision of new jobs (expansion of the workforce).
2. The second level of CSR is to provide employees with adequate conditions not only for work, but also for life: advanced training through continuous training, preventive treatment, housing construction, development of the social sphere. This is a classic type of CSR.
3. The third, highest level of CSR involves charitable activities.
Corporate social responsibility can be divided into internal and external. The internal ones include: the stability of payments and the maintenance of their socially significant level, labor safety, additional medical and social insurance for employees. Development is of great importance human resources through training programs and training and development programs, as well as providing assistance to workers in critical situations.
External CSR include: sponsorship and corporate charity, promotion of environmental protection, interaction with local organizations, willingness to help in crisis situations, responsibility to consumers of goods and services (improving their quality).
CSR is implemented through different kind social programs. Among the most common programs of companies can be identified in areas such as: personnel development, health protection and safe working conditions, socially responsible restructuring, environmental protection and resource conservation, local community development and fair business practices.
The first direction - personnel development - is the direction of the company's social programs, which are carried out as part of the personnel development strategy, in order to attract and retain talented employees.
Among the social programs for the development of the company's personnel, the following areas of activity can be used: training and professional development, the use of motivational remuneration schemes, the provision of a social package to employees, the creation of conditions for recreation and leisure, the maintenance of internal communications in the organization, the participation of employees in managerial decision-making and etc.
The second direction - health protection and safe working conditions - is the direction of the company's social programs, which ensure the creation and maintenance of additional health protection standards and safety conditions in the workplace in relation to the legislatively fixed ones.
Programs within this area of social activity of the company, as a rule, cover the following areas of activity: occupational health and safety, medical care for personnel at the enterprise, maintenance of sanitary and hygienic working conditions, support for motherhood and childhood, creation of ergonomic workplaces, prevention of occupational diseases and etc.
The third direction - socially responsible restructuring - is the direction of the company's social programs, which are designed to ensure that restructuring is carried out in a socially responsible manner, primarily in the interests of the company's personnel (usually, information campaigns are carried out covering upcoming structural changes, professional retraining, employment assistance, compensation payments employees who have been made redundant, etc.).
The fourth direction - environmental protection and resource saving - is carried out at the initiative of the company in order to reduce the harmful impact on the environment. Programs are being carried out for the economical consumption of natural resources, reuse and disposal of waste, prevention of environmental pollution, organization of an environmentally friendly production process, organization of environmentally friendly transportation, landscaping campaigns and "clean-up days" of the company, etc.
The fifth direction - the development of the local community - is carried out on a voluntary basis, contributing to the development of the local community. Companies become involved in the life of the local community through the implementation of various social programs and actions to support socially vulnerable groups of the population, support children and youth, support the preservation and development of housing and communal services and objects of cultural and historical significance, sponsorship of local cultural, educational and sports organizations and events, support for socially significant research and campaigns, participation in charity events, etc.
The sixth direction - fair business practices - aims to promote the adoption and dissemination of fair business practices among suppliers, business partners and customers of the company. This is information openness in relation to owners, suppliers, business partners, customers and stakeholders in the organization big companies programs to assist small businesses, programs to voluntarily restrict business activities - for example, the promotion by tobacco companies of a policy not to sell cigarettes to minors, as well as cooperation with government agencies, consumer associations, professional associations and others public organizations.
Publication date: 2015-07-22; Read: 6600 | Page copyright infringement
Topic: Corporate Social Responsibility
2 Principles and examples of CSR implementation in marketing strategies
List of used literature
1 CORPORATE SOCIAL RESPONSIBILITY
The topic of corporate social responsibility (CSR) is one of the most discussed topics in the business world today. This is due to the fact that the role of business in the development of society has noticeably increased, the requirements for openness in business area. Many companies have clearly realized that it is impossible to successfully run a business operating in an isolated space.
Therefore, the integration of the principle of corporate social responsibility into a business development strategy becomes feature leading domestic companies.
The modern world lives in conditions of acute social problems, and in this regard, the social responsibility of business is especially significant - enterprises and organizations associated with the development, manufacture and supply of products and services, trade, finance, since they have the main financial and material resources enabling work to be done to solve the social problems facing the world. Understanding by business leaders of their key importance and leading role in such work led to the birth of the concept of "corporate social responsibility" at the end of the 20th century, which became an essential part of the concept of sustainable development not only of business, but of humanity as a whole.
In world practice, there is a well-established understanding of what corporate social responsibility is. Organizations that operate in this area define this concept in different ways.
Business for Social Responsibility: Corporate Social Responsibility means achieving commercial success in ways that value ethical principles and respect people, communities and the environment.
"International Business Leaders Forum": corporate social responsibility is understood as promoting responsible business practices that benefit business and society and promote social, economic and environmentally sustainable development by maximizing the positive impact of business on society and minimizing the negative.
World Business Council for Sustainable Development: defines corporate social responsibility as a business commitment to contribute to sustainable economic development, labor relations with employees, their families, the local community and society as a whole to improve their quality of life.
“Center for System Business Technologies “SATIO”: Social Responsibility of Business (SOB) is a voluntary contribution of business to the development of society in the social, economic and environmental spheres, directly related to the main activity of the company and going beyond the minimum specified by law.
The social responsibility of business has a multilevel character.
The basic level involves the fulfillment of the following obligations: timely payment of taxes, payment of wages, and, if possible, the provision of new jobs (expansion of the workforce).
The second level involves providing workers with adequate conditions not only for work, but also for life: improving the skills of workers, preventive treatment, housing construction, and developing the social sphere. This type of responsibility is conditionally called "corporate responsibility".
The third, highest level of responsibility, according to the participants in the dialogue, involves charitable activities.
Internal corporate social responsibility includes:
1. Labor safety.
2. Stability of wages.
Corporate Social Responsibility and Sustainability
Maintenance of socially significant wages.
4. Additional medical and social insurance for employees.
5. Development of human resources through training programs and training and advanced training programs.
6. Assistance to workers in critical situations.
The external social responsibility of business includes:
1. Sponsorship and corporate charity.
2. Promoting environmental protection.
3. Interaction with the local community and local authorities.
4. Willingness to participate in crisis situations.
5. Responsibility to consumers of goods and services (production of quality goods).
Business social responsibility motives:
1. The development of our own staff allows not only to avoid staff turnover, but also to attract the best specialists in the market.
2. The growth of labor productivity in the company.
3. Improving the company's image, reputation growth.
5. Coverage of the company's activities in the media.
6. Stability and sustainability of the company's development in the long term.
7. The possibility of attracting investment capital for socially responsible companies is higher than for other companies.
8. Preservation of social stability in society as a whole.
9. Tax incentives.
Areas of activity, types of social programs.
Administrative / social budget - financial resources allocated by the company for the implementation of its own social programs.
The corporate code is a formal statement of values and principles business relations companies. The code contains the stated minimum standards and the guarantee of companies to comply with them, as well as to require compliance with these standards from their suppliers, contractors, subcontractors and licensees. The Code is not a law, therefore, it is binding only for those who have pledged to comply with them.
The mission of a socially responsible company is the officially formulated position of the company in relation to its social policy.
The priorities of the company's social policy are the documented main directions for the implementation of the company's social programs.
Social programs - activities voluntarily carried out by the company to protect nature, develop personnel, create favorable conditions labour, community support, philanthropy and fair business practices. At the same time, the main criterion is the correspondence of programs to the goals and business development strategy. The social activity of the company is expressed in the implementation of various social programs, both internal and external. Distinctive features programs of social activity are the voluntariness of their implementation, systemic nature and connection with the mission and development strategy of the company.
Types of social programs can be the following: own programs of companies; partnership programs with local, regional and federal authorities government controlled; partnership programs with non-profit organizations; cooperation programs with public organizations and professional associations; programs of information cooperation with the media.
Management of corporate social programs consists of the following steps:
Determining the priorities of the company's social policy;
Creation of a special structure for the management of social programs;
Conducting training programs in the field of social responsibility;
Implementation of social programs of the company;
Evaluation and communication to stakeholders of the results of the company's social programs.
Areas of social programs:
Fair Business Practices is an area of the company's social programs that aims to promote the acceptance and dissemination of fair business practices among the company's suppliers, business partners and customers.
Environmental protection and resource conservation is a direction of the company's social programs, which are carried out at the initiative of the company in order to reduce the harmful impact on the environment (programs for the economical consumption of natural resources, reuse and disposal of waste, prevention of environmental pollution, organization of an environmentally friendly production process, organization environmentally friendly transportation).
The development of the local society is a direction of the company's social programs, which is carried out on a voluntary basis and is designed to contribute to the development of the local society (social programs and actions to support socially vulnerable segments of the population, support for childhood and youth, support for the preservation and development of housing and communal services and facilities cultural and historical significance, sponsorship of local cultural, educational and sports organizations and events, support for socially significant research and campaigns, participation in charity events).
Personnel development is a direction of the company's social programs, which is carried out as part of the personnel development strategy, in order to attract and retain talented employees (training and professional development, the use of motivational remuneration schemes, providing employees with a social package, creating conditions for recreation and leisure, maintaining internal communications in the organization, the participation of employees in managerial decision-making).
Socially responsible restructuring is a direction of the company's social programs, which is designed to ensure that restructuring is carried out in a socially responsible manner, in the interests of the company's personnel.
Socially responsible investing is investing not only to generate financial returns, but also to achieve social goals, usually by investing in ethical companies.
Tools for the implementation of social programs:
1. Charitable donations and sponsorship - a form of targeted assistance allocated by the company for social programs both in cash and in kind (products, administrative premises, premises for events, transport, equipment, prize funds, payment of bills of recipient organizations help, etc.).
The principles of corporate social responsibility define the main provisions that express the nature and essence of the organization and activities for the implementation of corporate social responsibility in the company. Failure to comply with the requirements of one of the principles distorts the essence of the concept of CSR.
There is a general understanding in society that social politics should be absolutely transparent to citizens. Thus, it is possible to distinguish The first group of principles is openness. The principles of openness assume that the company conducts its activities in a public, understandable and accessible way, providing only reliable information and assuming feedback from all interested parties.
Social programs should be regular, respectively the second group of principles is consistency, which means that the focus of social programs in the required areas consistently and regularly.
It is especially important that social programs be implemented in those areas in which society is in need at the moment, which means that there is such a group of principles as significance, which determines the relevance of the programs being implemented, their effectiveness and scale.
And, finally, the principles of CSR should be based on the observance of subordination by the company regarding religion, politics, sports and music trends. Based on these principles, companies include in their strategy the task of protecting human rights, and assessing the impact of their company's activities on the conflict, they develop and take measures aimed at preventing or resolving the conflict. Therefore, it is necessary to single out the last the fourth group of principles is the avoidance of conflicts.
Corporate social responsibility is an integral part of corporate governance, and not just PR. This activity, which is reflected in the system of economic, environmental and social indicators of sustainable development, is carried out through a regular dialogue with society, is part of strategic planning and company management.
Social responsibility can be defined as the set of obligations that an organization must fulfill in order to strengthen the society in which it operates.
Corporate social responsibility of the organization
Organizations have a social responsibility in relation to their internal and microenvironment, in relation to the environment and in relation to the prosperity of society as a whole. We will consider each of them in turn.
The internal and microenvironment of the organization. Defined as people and other organizations who are directly affected by the organization's behavior and who have an interest in its performance. This includes buyers, lenders, suppliers, employees, owners/investors, national government, etc. In order to maintain social responsibility to investors, for example, it is required that financial managers perform proper accounting procedures, provide participants in companies with relevant information on financial indicators companies and managed the organization, in favor of the rights and interests of shareholders. Trading by people with inside information, illegal manipulation of stocks and withholding of financial information are examples of unethical behavior that has emerged in many companies in recent years.
Environment. More and more attention is paid to the environment. Examples of issues raised here are:
Development of possible ways to avoid acid rain and global warming;
Development of alternative methods for the treatment of wastewater, hazardous waste and general waste;
Development of a safety policy that will eliminate accidents with potentially catastrophic consequences for the environment;
Development of crisis management plans;
Use of recyclable raw materials for containers and packaging materials.
Expanded society. Many experts are convinced that enterprises should contribute to the growth of the welfare of society. Examples of this are:
Contributions to charities, philanthropic organizations, non-profit foundations and associations;
Support for museums, symphony orchestras, public radio and television;
Active participation in public health and education;
Actions to overcome existing political inequalities in the world, for example, protest against states in which dictatorial rule or apartheid regime.
Another approach involves the allocation of such areas of CSR as internal (focused on the company's personnel, including labor safety, social insurance, personnel development, etc.) and external (aimed at consumers of the organization's products, partners, residents of the territory, the state, local communities, etc.). .).
The socially responsible activity of an organization can also be focused on meeting the interests of different stakeholders: shareholders, investors, employees of the organization, consumer products of the organization, partners, suppliers, representatives of state and municipal authorities, social and public groups, etc. Different stakeholder groups can act as participants in CSR working alone or collaboratively.
Basic interpretations of the concept of social responsibility.
There are three basic interpretations of the concept of socially responsible business.
The first and most traditional emphasizes that the sole responsibility of a business is to increase profits for its shareholders. This point of view was "voiced" by Milton Friedman in 1971 and can be called theory of corporate selfishness: "There is one and only one social responsibility of a business: to use its resources and energy in activities leading to increased profits, as long as it is carried out within the rules of the game."
The second concept is directly opposite to Friedman's theory and can be called " theory of corporate altruism. It appeared at the same time as the publication of Friedman's sensational article in the New York Times and belonged to the Committee for Economic Development (the Committee for Economic Development). The Committee's recommendations stressed that corporations must make a significant contribution to improving the quality of American life.
The third point of view is represented by one of the strongest "centrist" theories - theory of "reasonable selfishness"(enlightened self-interest). It argues that the social responsibility of business is simply " good business because it reduces long-term profit losses.
Rice. Basic interpretations of the concept of socially responsible
business
By spending money on social and philanthropic programs, a corporation reduces its current profits, but in the long run creates a favorable social environment and, therefore, sustainable profits.
Socially responsible behavior is an opportunity for a corporation to fulfill its basic needs for survival, security and sustainability.
Publication date: 2015-10-09; Read: 2357 | Page copyright infringement
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- assist in determining whether the company's strategy and practices, which directly affect the relative resources and power positions of the company's key members, are in conflict with social priorities, on the one hand, and the legitimate expectations of individuals, on the other;
- make available to key social components relevant information on the company's goals, programs, indicators and contribution to social objectives.
Arguments for social responsibility
1. Business-friendly long-term outlook. Social activities of enterprises that improve the life of the local community or eliminate the need state regulation may be in the self-interest of enterprises due to the benefits provided by participation in society. In a society that is more prosperous from a social point of view, conditions are more favorable for business activities. Moreover, even if short run costs due to social performance are high, in the long run they can stimulate profits, as consumers, suppliers and the local community form a more attractive image of the enterprise.
2. Changing needs and expectations of the general public. Business-related social expectations have changed radically since the 1960s. In order to narrow the gap between new expectations and the real response of enterprises, their involvement in solving social problems becomes both expected and necessary.
3. Availability of resources to assist in solving social problems. Since the business has significant human and financial resources, he should have transferred some of them to social needs.
4. Moral obligation to behave socially responsibly. An enterprise is a member of society, so moral standards should also govern its behavior. The enterprise, like individual members of society, must act in a socially responsible manner and contribute to strengthening the moral foundations of society. Moreover, since laws cannot cover every occasion, businesses must act responsibly in order to maintain a society based on order and the rule of law.
Arguments against social responsibility
1. Violation of the principle of profit maximization. The direction of part of the resources for social needs reduces the impact of the principle of profit maximization. The enterprise behaves in the most socially responsible manner, focusing only on economic interests and leaving social problems to state institutions and services, charitable institutions and educational organizations.
2. Expenses for social inclusion. Funds allocated for social needs are costs for the enterprise. Ultimately, these costs are passed on to consumers in the form of higher prices. In addition, firms that compete in international markets with firms in other countries that do not incur social costs are at a competitive disadvantage. As a result, their sale on international markets is reduced, which leads to a deterioration in the US balance of payments in foreign trade.
3. Insufficient level of reporting to the general public. Because managers are not elected, they are not accountable to the general public. The market system controls the economic performance of enterprises well and poorly controls their social involvement. As long as society does not develop a procedure for direct accountability of enterprises to it, the latter will not participate in social actions for which they do not consider themselves responsible.
4. Lack of ability to resolve social problems. The personnel of any enterprise is best prepared for activities in the fields of economy, market and technology. He is deprived of the experience that allows him to make significant contributions to solving problems of a social nature. The improvement of society should be facilitated by specialists working in the relevant public institutions and charitable organizations.
Charity as a form of social responsibility
Despite all the problems of Russian entrepreneurship, there is still a charitable side in our country.
The concept of "charity" in the conscious aspect has an extremely wide range of action.
This is a moral act, and the moral qualities of a philanthropist, this is moral relations between people, and the socially just activity of classes and social groups, and a measure of a more just state of society as a whole. Charitable actions represent one of the forms of public good deeds. They are actions that meet the requirements of morality, committed consciously for moral reasons in the name of high ideals, the interests of man and society. Charitable actions in the moral sense mean good, which is one of the most general concepts moral consciousness.
One of the essential functions of charity is creative. By it, we mean the construction of cultural institutions at the expense of philanthropists, sponsors and patrons: theaters and museums, schools and clinics. The material and material function of charity leads to the creation, functioning and development of the spiritual life of society in those places where insufficient efforts were made by the state for its prosperity due to a lack of financial resources or simply nothing was done in this regard due to the lack thereof.
In society, in recent times, more and more importance is attached to the spiritual needs of man. Gradually, there is a realization that the economic model of society should not be based on pure materialism and utilitarianism, because. in this case, it tends to self-destruction. Therefore, today an urgent task is to find a compromise between the material and spiritual aspirations of a person both as an individual and as a collective being.
What are the reasons, motives that push entrepreneurs to donate a part of their earned fortune? In this regard, first of all, it is necessary to turn to history, to the roots that largely determine our worldview today. In this regard, it must also be said that today they prefer to take Russian pre-revolutionary entrepreneurs as a role model.
First, one of the motives that prompted wealthy merchants to donate their funds for certain purposes is a sense of guilt. The fact is that the low level of productivity of the economy, aimed mainly at surviving and maintaining the existing state, gave rise to an attitude towards wealth as a symbolic, significant sign of the distinction of the ruling class, which disposes of it by the right of capture and distribution, and not production. Under these conditions, wealth inevitably became a kind of compensation for the service efforts and hardships of social groups performing state functions. From this point of view, the possession of wealth by other social strata became socially undeserved, illegal, at least from a moral standpoint. This is especially true of commercial capital, which was seen as the result of forced but profitable fraud. Trade-acquired wealth was perceived as excessive and excessively easy to obtain, especially against the background of other sources of its acquisition. The merchant, as it were, receives money for nothing and from nowhere. He does not plow or sow, he does not perform the sovereign's service, this creates a situation of moral duty to society, the fulfillment of which justifies trading and business activities and relieves the merchant and entrepreneur of moral guilt before the nobles and the poor for "undeserved" wealth. It is this that can explain the spending by Russian patrons of money on charitable institutions, on the construction of churches, monasteries, etc. The purpose of patronage this case- removal of guilt, self-justification both before people, the world, and before God for the excessive materiality of aspirations. In this case, philanthropy is a generally useful waste of private funds and, at the same time, a kind of expiatory sacrifice to God, which should ensure the salvation of the soul. In addition, many philanthropists, being religious people, considered their activities as a kind of mission entrusted to them by God. In this case, it turns out that God, as it were, gave them wealth to use and will require a report on it. And charity, which is, in fact, an expression of goodness, is pleasing to God.
Traditions that have accumulated over the centuries cannot simply disappear without leaving a trace in our memory, in our minds.
Corporate social responsibility of the company
And therefore, I believe that modern patrons (entrepreneurs involved in charitable activities) are also guided by these motives to some extent. Of course, today the situation has changed a lot: the relationship between people, their worldview is no longer the same. However, there is such a thing as mentality, which determines behavior in a given situation. So, the very motives that guided the rich people of the past are very likely to exist in the subconscious of wealthy people of our generation, regardless of their view on the ideas of charity, but they have ceased to be decisive, as it seems to me.
In addition, charitable activities can be regarded as a form of preserving a good name and fame for posterity. Goals become more secular, but retain moral motivation. Ideally, everyone, an entrepreneur, understands that he will not take millions to the grave with him, and by doing charitable deeds, he improves relations between himself and those people for whom he does good, and by undertaking large charitable actions, he achieves immortality, because will live forever in those monuments of art and culture, which he provided the opportunity for practical implementation.
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Federal State Budgetary Educational Institution
higher professional education
"Moscow State University of Economics, Statistics and Informatics" Yaroslavl Branch
Department of General Management and Entrepreneurship
In the discipline "Corporate social responsibility" on the topic: Corporate social responsibility on the example of the corporation "Google"
Completed by: group student
MTZbak-43 abbr. Abashidze I.D.
Checked by: Associate Professor of the Department of OMP,
Beketova N. E.
Yaroslavl
1. Definition of CSR……………………………………………………………………………………..3
2.
Principles of CSR at the enterprise………………………………………………………………..4
3. Interaction within the framework of CSR with the authorities and society………………………….10
4. Responsibility to employees …………………………………………………..11
5. Responsibility to society and government………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
6. CSR activities ………………………………………………………………………………..14
7.
Content:
Introduction ______________________________ ____________________________ 2
- Examples of CSR of Russian and foreign companies.__________________ 3
- What is the corporate social responsibility of business? ___________________________________ _____________________________ 3
Positions of social responsibility _______________ _________ 5
CSR technologies aimed at and influencing the environment, society, personnel ______________________ ____________________________ 8
- CSR experience in Russian and foreign business _____________________ 12
- Royal Dutch/Shell Group (Dutch Experience)___________________14
- 2.2 CSR "vs" social marketing. (Experience of unsuccessful rebranding of British Petroleum Corporation)____________________ _______________16
- 2.3 Involvement of Russian companies in CSR (Non-financial reporting in the financial sector) ______________________ __________________ 18
- Legislative regulation and federal interest in CSR_________20
- (Europe)______________________ ____________________________20
(America)_____________________ ____________________________21
- 3.3 (Russia)______________________ ____________________________22
4. Conclusion: Transformation of CSR Models in Conditions of Economic Instability________________ ______________________________ _____24
4.1 (Experience of Russia: What can be offered in the field of CSR?)___________255. List of sources ____________________ ________________________________27
Introduction
“For many businessmen, the fact that the success of a company in the market largely depends on the volume of its investments in the social sphere of the country is becoming more and more obvious. As practice shows, high corporate social responsibility allows you to create a positive image of the company or enterprise. This, in turn, gives the company certain benefits:
- helps in expanding the client base, strengthening partnerships,
facilitates obtaining loans, simplifies insurance,
makes interaction with state structures more constructive,
provides an opportunity to attract/retain highly qualified specialists in the company's staff,
strengthens the rating positions in the domestic and international markets.”
However, there is another side of the coin. Not all people are insensitive and immoral, not everyone is focused on momentary profit, not everyone supports the neoliberal concept of "business without borders", neglecting ethical and moral principles - there are those few who most often occupy leadership positions who adequately assess their capabilities and opportunities of their corporations, understand that it is in their power to change the world for the better. Of course, large companies are leaders in terms of implementing various social programs. After all, they have great weight in society, significant influence on the market, huge capital, and therefore a lot of opportunities.
It is these influential companies that have embarked on the path of socially responsible business that will be discussed.
- Examples of CSR of Russian and foreign companies.
- What is the corporate social responsibility of business?
Let's start with the history of the origin of this concept. How did the conceptual program of CSR come about?
Some believe that the "hunch" of corporate social responsibility (CSR) came along with the capitalist economic model, i.e. in the 17th century. But only in the 20th century did these sensations begin to take on the shape of a concept.
The theory of CSR was introduced by scientists and researchers, and then began to be tested by pioneer companies that made attempts to apply it in their own business practices. In different countries, this process proceeded with different speed and degree of adaptation to local conditions. The scenario of the “rooting” of an idea in a particular country largely depended on the position taken by the main stakeholders: the state as a regulator, society represented by the most active organizations, and members of the business community.
Schematically, some of the milestones that influenced the "new" history of the development of the idea can be depicted as follows.
N 1950s–60s: the emergence of individual scientific papers and studies in the field of economics, which dealt with the new model of the company and its new role in the world.
N 1970s–80s: speeches by public groups criticizing the decisions and actions of companies in different countries of the world, "consumer riots", the development of ideas of social partnership in labor relations activization of the trade union movement.
N 1990s: acceleration of globalization processes, information technology revolution, "wave" of environmental reporting, a new model of stakeholders (AA1000) has been developed.
N 2000s: promoting the idea of sustainable development, the emergence of the GRI reporting system.
The new concept came to Russia at a time when the rules for the coexistence of different sectors of society were once again changing:
“The discussion about CSR reflects the situation when business turned out to be “extreme” in the dispute about the fairness of the arrangement of mechanisms for creating public goods and ... the fairness of the principles of their redistribution ... The issue of CSR in Russia is primarily related to the inefficiency of state regulatory mechanisms and the lack of civilized mechanisms of public pressure both business and government. (Report on social investment in Russia, Association of Managers, 2004)
Thus, speaking in general terms, CSR is a company's voluntary contribution to the development of the state and societies, its vigorous activity in the economic, social and environmental spheres.
Conclusion:
Business Social Responsibility- responsibility of business entities for compliance with the norms and rules that are implicitly defined or not defined by legislation (in the field of ethics, ecology, mercy, philanthropy, compassion, etc.), affecting the quality of life of individual social groups and society as a whole.
Responsibility comes as a result of ignoring or insufficient attention of business entities to the requirements and demands of society and is manifested in a slowdown in the reproduction of labor resources in the territories that are the resource base for this type of business.
Business Social Responsibility (SSR) is a voluntary contribution of business to the development of society in the social, economic and environmental spheres, directly related to the company's core business and going beyond the legal minimum.
Unfortunately, this definition is rather ideal, and cannot be fully translated into reality, if only because it is simply impossible to calculate all the consequences of one decision. But social responsibility is not a rule, but ethical principle which should be involved in the decision making process. The obligation here is internal, to oneself, and is based on moral norms and values acquired in the process of socialization.
- Positions of social responsibility
- production of the required volume of products or services that meet accepted standards and quality requirements;
compliance with business rules;
ensuring the safety of all employees;
creation of new jobs, their reinforcement with social guarantees;
support of motivation for staff development;
environmental Protection;
promotion of the preservation of the cultural and historical heritage of the country;
assistance to authorities in the development of the economy, social sphere of the regions where the company's branches are located;
financing of social programs.
In addition, it is worth noting that business CSR is not an isolated theory. It complements an interconnected network of socially relevant theories and concepts, such as:
- social and environmental audit;
- theory of stakeholders;
- corporate ethics;
- strategic philanthropy;
- corporate governance.
There are several approaches to defining CSR in business:
1) Any actions within the framework of legal legality are considered socially responsible - "There is no place for ethics in business." Thus, Nancy Ranken in her work "Morals and Business" puts forward the thesis that a businessman cannot be considered as a moral subject, since any businessman is concerned with the problems of survival, growth and profit and is not capable of altruistic actions. Thus, she rejects the so-called "harmony thesis", according to which everything that is really useful for business is morally correct. Supporters of this position are convinced that business plays an exclusively economic role in society, and the manager's duty is to provide shareholders with the highest returns on their investments through the production of competitive goods and services.
At the same time, they believe that they do not bear any special ethical obligations and responsibility for preventing someone's harm or for promoting certain goods and services, and not others. They don't see any need to break the law to prevent hurting anyone. From the point of view of supporters of this position, the responsibility of the entrepreneur is identified with legal responsibility, i.e. any action within the framework of legal legality is considered socially responsible.
2) Another position can be characterized by the motto: "Maximum profit is the only duty of business." Supporters of this position argue that they can break the law in order to pursue someone's benefit, such as making a profit.
In the five years from 1981 to 1985, every two of the ten largest American corporations were involved in at least one illegal operation, according to research conducted by scientists at the University of Washington. This is indirectly confirmed by the following facts. Between 1976 and 1986 arrests for fraud among managers increased by 75%, for embezzlement by 26%. business owners. He is responsible directly to his employers, and his responsibility is to conduct business in accordance with their wishes. The wishes of employers, in general, come down to the requirement to make as much money as possible, adapting to the embodied in laws and ethical traditions basic norms of society. Based on these positions, managers decide on their ethical responsibility to look after the interests of the owners, and it is this, and not the responsibility for preventing harm to someone or for promoting socially oriented goods and services, that determines the boundaries of their ethical responsibility. Thus, supporters of this direction reduce social responsibility to professional responsibility, which is dictated by the norms of interaction between a professional and an employer. Any actions within the framework of these norms are considered socially responsible.
3) Proponents of the third position admit that there is a place in business for social responsibility, but understand it as a tool or condition that managers use to achieve the goals of the corporation in the economy. Social responsibility must lead to success and maintain success. And if it does not stand this test now or sometime in the future, then it can be discarded for pragmatic reasons. Thus, the supporters of this direction recognize that it is possible to speak about the specific social responsibility of entrepreneurs not only within the framework of legal or professional responsibility, but also in a broader aspect. But this is possible only if this activity leads to success. If this is not the case, then social responsibility is not useful, so it must be abandoned. It's kind of economic responsibility.
4) The fourth position represents a socially responsible organization that considers itself morally responsible both to the people who work in it and to everyone who is influenced by its activities. The responsibility of the company is governed by moral and ethical standards. The problem of achieving and combining the interests of all participants in the "life activity" of the organization is put in the center. it moral and ethical responsibility.
- CSR technologies aimed at and influencing the environment, society, personnel
At a primitive level, a company might, for example, introduce restrictions on the use of paper for printers (global goal: save forests), use paper cups for water in offices rather than plastic ones (global goal: save the planet from non-recyclable plastic), install waste bins with separate compartments for various types of waste (global goal: recycling and further use of recycled materials). At the macro level (global, interregional), corporations can influence various spheres of the life of societies by investing in:
- charity: support for the poorest segments of the population and local organizations in Africa and the Third World, animal protection;
health care: money transfers in favor of patients with various diseases, in support of healthy lifestyle campaigns and the rejection of drugs. Companies invest in the construction of hospitals and specialized health centers, etc.
education: educational activities affecting various spheres of life (from educational programs in the field of HIV / AIDS, ending with education in the field of fundamental human rights and freedoms, retraining of workers, etc.)
The first level, lower, basic, is an obligatory component of social responsibility - this is compliance with laws (tax legislation, labor and civil codes). If the legislation is not observed, then there can be no talk of any social responsibility - thus, the entrepreneur violates the obligations established for his activities initially.
The second and third levels refer to the voluntary component of social responsibility. These two stages differ in the motives for the implementation of socially responsible behavior. The second level is the implementation of socially responsible behavior for the sake of economic gain. The economic benefit can be to improve the image of the organization for consumers of its products and for its employees, increase investment attractiveness, create more favorable conditions for the existence and development of the company on the part of the authorities or society.
The third level covers those types of socially responsible behavior that are not aimed at obtaining economic benefits. This is a higher level of awareness of the position and role of the organization in society. Such actions may bring economic profit, but this is not their goal. Helping socially vulnerable groups of the population, transferring donations often turn out to be hushed up actions, since the media cannot publish information about such actions for free (under the law on hidden advertising), and according to the law, the money spent is not always exempt from taxes.
With regard to interest groups and the impact of CSR technologies on them, we can classify this data in terms of business benefits:
- Staff
- The CSR program can be aimed at recruiting and retaining staff, in particular in the competitive market of university graduates. Potential employees often ask during an interview about a firm's CSR policy, and having a comprehensive policy can be advantageous. In addition, CSR can help improve the perception of a company among its staff, especially when staff can participate through payroll, fundraising activities or social work in the local community.
- Management of risks
- Risk management is central to many corporate strategies. A reputation that has taken decades to build can be destroyed in a matter of hours by incidents such as corruption scandals or environmental disasters. These events may also attract unwanted attention from the courts, governments and the media. Creating your own culture of "good behavior" in a corporation can minimize these risks.
- Product brand differentiation
- In crowded markets, companies strive to create a unique selling proposition that, in the minds of consumers, sets them apart from competitors. CSR can play a role in building consumer loyalty based on distinctive ethical values. Several major brands such as the Co-operative Group, the Body Shop and American Apparel are built on ethical values. Business service organizations can also benefit from building a reputation for integrity and best practice.
- Work license
- Corporations seek to avoid interference in their activities through taxation and regulation (GOSTs, SNiPs, etc.). By taking consistent voluntary action, they can convince governments and the wider public that they take health and safety, biodiversity, and the environment in general seriously, and thus avoid intervening in the company's internal affairs. This factor also applies to firms seeking to justify flashy profits and high boardroom salaries. Companies operating overseas can be reassured that they are welcomed by being conscientious corporate citizens with regard to labor standards and environmental impact.
- CSR experience in Russian and foreign business.
On January 31st, 1999, United Nations Secretary General Kofi Annan addressed the World Economic Forum in Davos (Switzerland) in an attempt to humanize the process of globalization. In his address, he called on world business leaders to unite and sign an Agreement with society based on universal human and environmental principles. “Let's combine the energy of markets with the power of universal ideals. Let us reconcile the creative forces of private enterprise with the needs of the disadvantaged and the demands of future generations” (Annan, January 31, 1998, 5). “What we need is an Agreement on a global scale that will strengthen the new world economy. I ask that business leaders unite, support and sign on to a set of core values in the areas of human rights, labor standards and environmental regulations” (Annan, January 31, 1999, 4). This appeal was within the framework of the policy that he began shortly after taking office. He supported a change in the approach of the United Nations, recognizing the need to build partnerships with governments, businesses and non-governmental organizations to reduce poverty and ensure the sustainable development of mankind.
The UN has revised its relationship with business, which was due to the emergence of certain social, political and economic trends. This was in line with the developments that took place in the 1990s, when the world began to see significant changes in patterns of trade, development and use of natural resources. Much of this change has been driven by the evolving forces of globalization, which is making the world more and more interconnected and interdependent, as communication technology has shortened distances and enabled the diffusion of knowledge-intensive capital. There has been a significant increase in international trade and foreign direct investment to liberalize markets. As a result, globalization has created unprecedented opportunities for existing and developing economies. Kofi Annan, however, warned of the fragility of globalization. While only a few economies develop sustainably, others continue to be marginalized, resulting in an unequal distribution of wealth. Meanwhile, the ability of states to fulfill their traditional role in dealing with social issues such as human rights and environmental protection has diminished in sound ways. Finally, the depletion of natural resources to non-renewable levels continues.
Annan's initiative aims to bring together firms and business organizations, non-governmental organizations, the UN and other international structures. The challenge of this so-called "tripartism" - leading to continued discussion between governments, companies and civil society (which includes the UN as a non-governmental organization) - is to find ways to make a free and open market system sustainable. and social. World Agreement established a list of nine general norms for responsible corporate conduct.
On July 26th, 2000, the UN organized a conference on these nine global norms, which was attended by many of the largest multinational companies. The surprise was the participation of a large number of companies from Europe, engaged in the sector of the processing industry, like the Royal Dutch/Shell Group. Many of these companies have agreed to support the Worldwide Agreement - which currently has over 1,300 corporate signatories. In their activities, they underpin their corporate social responsibility (CSR) by their active involvement in global social investment, community engagement, adaptation to social and environmental conditions and the recognition of social capital.
The policy of the UN stimulated further growth of interest in such approaches in Europe. Since 2000, the UK has appointed a Minister responsible for work that encourages CSR initiatives; six European governments have required pension funds to consider social practices when making investment decisions.
In 2001 the European Commission published a so-called advisory green paper entitled “Supporting a European Framework for Corporate Social Responsibility”. The purpose of this document is to start a broader debate on how the European Union could support and promote the development of the concept of corporate social responsibility at the European and international level. This new structure should be based on European values such as democratic participation and social cohesion based on an open market economy. Values, as they say, must be translated into action. According to Vogel (2005, 8) some European companies have indeed taken some action. “ In many areas, European companies are now more engaged in CSR than their American competitors. European firms, more willingly than US firms, have signed up to the UN's global agreement.” However, in order to force companies to fulfill their CSR obligations, it was urgently required to adopt the relevant documents. The publication of standards of conduct in annual reports is not the same as the actual implementation of CSR in a specific company practice.
2.1 Royal Dutch/Shell Group (Dutch experience)
The Royal Dutch/Shell Group was among the first to subscribe to the principles of the World Covenant. Approximately 25 years ago, the company adopted the Shell General Business Principles. These principles were based on three fundamental values: honesty, integrity and respect for people and were supposed to strengthen all aspects of corporate behavior. These principles were not questioned until the Brent Spar conflict in 1995. Since then, harsh criticism of their ineffectiveness has forced Shell to develop a list of social responsibilities, an integrated view of the company's role in its impact on society and an understanding of the role that the company plays in society, in addition to benefiting only financial investors.
The previous CEO of Shell, Moody-Stuart (1998-2001), explained in the 1999 annual report why the company began to adopt the concept of CSR: well-being of the planet and its inhabitants”. This call should lead to a sustainable balance between people (social welfare), the planet (environmental quality) and profit (economic prosperity). “New in 2005 is the release of our golden rules, which emphasize compliance with law and company procedures, respect for our neighbors and requiring intervention in dangerous situations. Three simple, easy-to-remember rules designed to improve understanding and personal responsibility” (Shell 2005 annual report).
The international discussion about CSR and the role that Shell has begun to play within this discussion has inspired the Dutch government to turn to its main advisory body for national
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