Corporate Social Responsibility

1. Corporate Social Responsibility Kazakhstan Business Council for Sustainable Development September 29, 2010

2. Sustainable Development and Corporate Social Responsibility SD and CSR are interrelated. CSRis a concept reflecting voluntary decision of the companies to participate in making a positive impact on the society and environment.

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

4. Corporate Social Responsibility “CSR is about how companies manage the business processes to produce an overall positive impact on society”.

5. Corporate Social Responsibility Key Features • Values based • Goes beyond compliance • Is relevant to, & needs to be embedded in all business activities • Builds trust in local communities and with authorities • Affects all employees • Involves engaging with and responding to stakeholders • Strives to maximise positive & minimise negative impacts on society • Requires enhanced accountability & transparency • Drives long-term shareholder value by delivering stakeholder value.

6. Benefits of Corporate Social Responsibility as part of the SD • Preserving our ecosystem for present and future generations • Ensuring rational use of natural resources • Increasing economic and environmental efficiency of production • Improving companies’ reputation • Implementing effective risk management system • Facilitating access to investments • Improving corporate governance system • Contributing to growth of company’s assets • Promoting potential development of new markets and new types of products.

7. Corporate Social Responsibility Reporting • Reporting is a part of a wider process in the company strategy development, planning and fulfilling action plans and results evaluation. • Reporting is a tool for interacting with stakeholders and ensuring a positive contribution of the latter in the organizational process. • It is a reliable tool in assessing company activities results, which may contribute to the consistent improvement of the company’s performance. • SD reporting enhances corporate management system and contributes to the company assets’ growth.

8. CSR Reporting Sustainability development (SD) reporting is a process for publicly disclosing an organization’s economic, environmental, and social performance. Many organizations find that financial reporting alone no longer satisfies the needs of shareholders, customers, communities, and other stakeholders for information about overall organizational performance.

9. Global Reporting Initiative In 1997 Global Reporting Initiative (GRI) organization has developed the Sustainability Reporting Framework with the guidelines for reporting on sustainability performance, which also provides stakeholders a universally-applicable, comparable framework to understand disclosed information.

10. Global Reporting Initiative • According to KMPG survey more than half of the worlds’ biggest companies issues reports on sustainability and corporate social responsibility. • Until 1999 companies mostly reported on environmental performance. As of 2005 sustainability reporting encompasses economic, environmental and social issues.

11. Global Reporting Initiative • Global Reporting Initiative (GRI) is a network-based organization that has pioneered the development of the world’s most widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide. • The reporting framework is developed with participantion of business, civil society, labour, and professional institutions.

12. Global Reporting Initiative • This framework sets out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance. • The cornerstone of the framework is the Sustainability Reporting Guidelines. The third version of the Guidelines – known as the G3 Guidelines - was published in 2006. • Sector Supplements are now available.

13. GRI Indicators ПОКАЗАТЕЛИ ЭКОНОМИЧЕСКОЙ РЕЗУЛЬТАТИВНОСТИ АСПЕКТ: ЭКОНОМИЧЕСКАЯ РЕЗУЛЬТАТИВНОСТЬ ПОКАЗАТЕЛИ ЭКОЛОГИЧЕСКОЙ РЕЗУЛЬТАТИВНОСТИ АСПЕКТ: МАТЕРИАЛЫ АСПЕКТ: ЭНЕРГИЯ АСПЕКТ: ВОДА АСПЕКТ: БИОРАЗНООБРАЗИЕ АСПЕКТ: ВЫБРОСЫ, СБРОСЫ И ОТХОДЫ АСПЕКТ: ПРОДУКЦИЯ И УСЛУГИ СОЦИАЛЬНАЯ СОСТАВЛЯЮЩАЯ ПОКАЗАТЕЛИ РЕЗУЛЬТАТИВНОСТИ ПОДХОДОВ К ОРГАНИЗАЦИИ ДОСТОЙНОГО ТРУДА АСПЕКТ: ЗАНЯТОСТЬ АСПЕКТ: ВЗАИМООТНОШЕНИЯ СОТРУДНИКОВ И РУКОВОДСТВА АСПЕКТ: ЗДОРОВЬЕ И БЕЗОПАСНОСТЬ НА РАБОЧЕМ МЕСТЕ АСПЕКТ: ОБУЧЕНИЕ И ОБРАЗОВАНИЕ АСПЕКТ: РАЗНООБРАЗИЕ И РАВНЫЕ ВОЗМОЖНОСТИ ПОКАЗАТЕЛИ РЕЗУЛЬТАТИВНОСТИ: ПРАВА ЧЕЛОВЕКА АСПЕКТ: ПРАКТИКИ ИНВЕСТИРОВАНИЯ И ЗАКУПОК АСПЕКТ: НЕДОПУЩЕНИЕ ДИСКРИМИНАЦИИ АСПЕКТ: СВОБОДА АССОЦИАЦИИ И ВЕДЕНИЯ КОЛЛЕКТИВНЫХ ПЕРЕГОВОРОВ АСПЕКТ: ДЕТСКИЙ ТРУД АСПЕКТ: НЕДОПУЩЕНИЕ ДИСКРИМИНАЦИИ АСПЕКТ: СВОБОДА АССОЦИАЦИИ И ВЕДЕНИЯ КОЛЛЕКТИВНЫХ ПЕРЕГОВОРОВ АСПЕКТ: ДЕТСКИЙ ТРУД АСПЕКТ: ПРИНУДИТЕЛЬНЫЙ И ОБЯЗАТЕЛЬНЫЙ ТРУД АСПЕКТ: ПОДХОДЫ К ОБЕСПЕЧЕНИЮ БЕЗОПАСНОСТИ АСПЕКТ: ПРАВА КОРЕННЫХ И МАЛОЧИСЛЕННЫХ НАРОДОВ ПОКАЗАТЕЛИ РЕЗУЛЬТАТИВНОСТИ: ВЗАИМОДЕЙСТВИЕ С ОБЩЕСТВОМ АСПЕКТ: СООБЩЕСТВО АСПЕКТ: КОРРУПЦИЯ АСПЕКТ: ГОСУДАРСТВЕННАЯ ПОЛИТИКА АСПЕКТ: ПРЕПЯТСТВИЕ КОНКУРЕНЦИИ АСПЕКТ: СООТВЕТСТВИЕ ТРЕБОВАНИЯМ ПОКАЗАТЕЛИ РЕЗУЛЬТАТИВНОСТИ: ОТВЕТСТВЕННОСТЬ ЗА ПРОДУКЦИЮ АСПЕКТ: ЗДОРОВЬЕ И БЕЗОПАСНОСТЬ ПОТРЕБИТЕЛЯ АСПЕКТ: МАРКИРОВКА ПРОДУКЦИИ И УСЛУГ АСПЕКТ: МАРКЕТИНГОВЫЕ КОММУНИКАЦИИ АСПЕКТ: НЕПРИКОСНОВЕННОСТЬ ЧАСТНОЙ ЖИЗНИ ПОТРЕБИТЕЛЯ АСПЕКТ: СООТВЕТСТВИЕ ТРЕБОВАНИЯМ

14. ENVIRONMENTAL INDICATORS MATERIALS ENERGY WATER BIODIVERSITY WASTES (DISCHARGES, EMISSIONS, WASTES) TRANSPORT

15. CSR Reporting CSR reporting should reflect • past performance (last years) • current status and • future plans. CSR reporting is a tool for continuous improvement of company operations, a system based approach to SD embedded into corporate governance system and a part of the company’s strategy.

16. CONCLUSION • It is important that companies start going beyond compliance and turning to a performance operating mode. CSR reporting can be used as an effective tool to improve it. • Environmental performance in compliance with CSR and best international practice will have a positive impact on eco-system. • Companies’ operations should be performed in along-term context, taking into consideration interests of future generations. • We have been taking a lot from our planet, now the time has come to give back. Humanity can do a lot for our common wellbeing.