High Impact Corporate Social Responsibility for Kazakhstan 2 nd International PR Forum, Almaty May 16, 2006

2nd International PR Forum Origins of CSR  Public Demand for Accountability  Demand for Community Engagement  Demand for Better Working Conditions  Demand for Environmental Protection

2nd International PR Forum Argument Against CSR  Companies Should Maximize Profit  Shareholders, Not Management, Should Decide How to Invest Profits  Community Engagement and Social Protection is the Responsibility of the Government, Not Corporations

2nd International PR Forum Why This Argument is Wrong  Companies Cannot Maximize Profits Without Community Engagement  No Government Can Solve All Community Needs on its Own  CSR Can Have a Positive Impact on Business Environment

2nd International PR Forum The Role of Government  Provide Social Protection (via taxes)  Protect Environment and Work Force (via regulation)  BUT…Government Must Provide Attractive Investment and Operating Environment for Business  BECAUSE…Without Vibrant Economy, there is no tax base

2nd International PR Forum The Role of Business  Maximize Profits, which will directly support employees and build a stronger economy  Support their Communities, which will help ensure a better working environment  Complement, BUT NOT REPLACE, the social protection work of local and federal governments

2nd International PR Forum Conclusion  Government should support, but not control corporate community engagement  Domestic corporations should follow global CSR best practices  Domestic corporations should practice transparent community engagement and promote interactive community partnerships

High Impact Corporate Social Responsibility for Kazakhstan 2 nd International PR Forum, Almaty May 16, 2006