1. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY CSR in Russia Olga Maksimova, International projects specialist

2. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Definition: Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Or CSR is about how companies manage the business processes to produce an overall positive impact on society.

3. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY History of CSR in Russia In 2003 the Russian president made a statement about CSR during the XIII Congress of the Russian Union of Industrialists and Entrepreneurs; In 2002 only 2 companies submitted reports on CSR; In 2003 only 5 companies submitted reports on CSR; In 2006 20 companies submitted reports on CSR (according to the Agenсy on social information). Among them: «Gazprom», Lukoil, Shell, ТNК-BP, «Sibneft», «Rusal», «Norilsk Nickel» etc. In 2012 more than 50 companies submitted reports on CSR; In August 2013 Russia officially became a member of the WTO;

4. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY History of CSR in Russia

5. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Current situation The concept of CSR in Russia is being discussed; The code of corporate ethics is under development; The code of generally accepted rules and principals in environmental policy is under development. Leading Russian companies follow the global trend of integration of CSR into the corporate strategy for all types of corporate social performance, including corporate philanthropy. Corporate philanthropy develops relatively independently with strengthening of strategic and innovative aspects. Education in the field of CSR is included in compulsory core courses and modules for the managerial trainings.

6. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Specifics Historical and geographical features; Features associated with mentality of the population and traditions of corporate governance; The features associated with the social and political situation in the country.

7. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Specifics Historical and geographical features: - A vast territory; - The cities and suburbs are remote from each other, especially in Siberia and the Far East; - The concentration of financial resources in the most undeveloped and regions with difficult climate conditions (Siberia and the North - oil, gas, aluminum, nickel industries); - The predominance of mono cities where infrastructure and people are tied to a single enterprise; - The social infrastructure is poor.

8. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Specifics The features associated with mentality of the population and traditions of corporate governance: -High social expectations at a low social activism; -Tradition of labor relations; -Inadequate attitude of media towards the company's efforts to support the community: from total ignorance to the pathological suspicion of self-interest.

9. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Specifics The features associated with the social and political situation in the country: -High poverty level in the regions; -A huge number and spread of social problems in the territories - it is unclear from where to start; -Lack of experience and state infrastructure for solving "new" problems: drug addiction, homeless people, AIDS; -Pressure from local authorities, forcing companies to allocate resources for programs which are not related to the needs and interests of the company but for the priority programs of the region which don’t always make sense.

10. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY The most popular reporting standards: Sunshine Global Reporting Initiative, GRI Accountability1000 (AA1000) ISO14000 and ISO26000 Russian experience: Standard on social reporting of the Chamber of Commerce and Industry of the RF (based on GRI and АА1000)

11. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Motivation: Higher competitive advantages on the international markets Increases profit; Loyalty to the company and its products increases; PR; Investment policy management tool and pledge of their own sustainable development and prosperity.

12. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Barriers: Lack of financial resources; Business still feels neither legal pressure, nor considerable pressure from media, customers and civil society, which are among the main obstacles to CSR development; Non-transparency of business in Russia is additional challenge; Lack of political support; Lack of understanding of the benefits of CSR for the business; Lack of experience, knowledge and qualified personnel in the companies dealing with this topic; Low interest of media in CSR also slows down the progress.

13. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Prospects: CSR in large organizations; Promoting CSR among SMEs; Introduction and promotion of non-financial reporting standards; Education in the field of CSR is included in compulsory core courses and modules for the managerial trainings. Development of approaches to corporate social responsibility, which would be based on internationally accepted principles of social responsibility, but taking into consideration the specifics of Russia. the government should take a proactive role in popularizing CSR by creating better incentives and legal basis for CSR.

14. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY MORE THAN 20 YEARS OF SUCCESSFUL ACTIVITY Prospects: "Application of mediation techniques in work of the guardian bodies and agencies" (The project is co-financed by the Government of the Kaliningrad region); Social business network; Special nomination in “Amber mercury” competition -"For contribution to the development of socially responsible business in the Kaliningrad region“; Scholarships from the KCCI; Social project "Paper recycling - preserving nature, save a life!“; Teaching English people with disabilities; Business education for people with disabilities.

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