World Monitor Magazine June 2014

 

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WM issue dedicated to Corporate Social Responsibility

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№3 |44| 2014 corporate social responsibility

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CONTENTS СОДЕРЖАНИЕ “ 8 DESTINATION KAZAKHSTAN ВЕКТОР КАЗАХСТАН The Government of Kazakhstan offers prospects of large-scale social modernisation coming soon Kazakhstan: where to invest Казахстан: куда инвестировать Social modernisation of Kazakhstan Социальная модернизация Казахстана 16 EXPERT OPINION ЭКСПЕРТНОЕ МНЕНИЕ Tenge devaluation impact on labour market Девальвация тенге и рынок труда Казахстана Government incentives for business to engage in CSR Как мотивировать бизнес на участие в социальных проектах Outsourcing for the public sector Аутсорсинг для бюджетной сферы 4 world monitor “ 26 HOW TO MAKE IT WORK КАК С ЭТИМ ЖИТЬ “Paternity” leave Папа в декрете 30 SOCIAL RESPONSIBILITY СОЦИАЛЬНАЯ ОТВЕТСТВЕННОСТЬ Reach for change Support of SHUGYLA Social Fund Siemens Generation 21 Educational projects

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46 TIME TO MOVE ВРЕМЯ ПЕРЕЕЗДА Out with the traditional and in with the flexible Долой привычное, да здравствует универсальное! Sustainability: what's the big deal? Устойчивое развитие EUROBAK Secretariat Office: Julie Kussidi EUROBAK Executive Director Artyom Belenkov Elena Kudryashova Stanislav Oreshkin Mariya Fridman Секретариат ЕВРОБАК: Юлия Кусиди Исполнительный директор ЕВРОБАК Артем Беленков Елена Кудряшова Станислав Орешкин Мария Фридман 50 HR Julie Kussidi, Юлия Кусиди, Editor – in – Chief Главный редактор Editor of English version Редактор английской (volunteer): версии (волонтер): Wendy Moore Вэнди Мур Marketing: Отдел маркетинга: Anna Ter-Pogossyan Анна Тер-Погосян wmdevelop@eurobak.kz 54 SPORTS CПОРТ Should we switch to a bicycle? Пересаживаемся на велосипед? Yelena Chichibabina Елена Чичибабина wmanager@eurobak.kz 60 FIT LIFE Design: Anna Denisova Дизайн: Анна Денисова Published since February Издается с февраля 2006 2006 г. Address: Rahat Palace Hotel, 10 th Floor, 29/6 Satpaev Str., Almaty, 050040 Tel./Fax.: 298 02 33, 250 34 76/77/78/79 E-mail: executive@eurobak.kz Website: www.eurobak.kz Printed by print house "Sprinter", 16 Baitursynov str., tel. +7 (727) 233 83 52 (62,64), office@sprinter.kz, Almaty, Republic of Kazakhstan Адрес: Гостиница Рахат Палас, 10 этаж ул. Сатпаева 29/6 г. Алматы 050040 Тел./Факс: 298 02 33, 250 34 76/77/78/79 E-mail: executive@eurobak.kz Website: www.eurobak.kz Типография Sprinter, ул.Байтурсынова 16 тел. +7 (727) 233 83 52 (62,64), office@sprinter.kz г. Алматы, Республика Казахстан Yoga on vacations 62 BOOKS corner КНИГИ Circulation – 3100 copies. Тираж– 3100 копий. Issued on bi monthly basis. Выходит один раз в два месяца. No. 3(44) 2014 No. 3(44) 2014 Registration certificate No. 8037 Ж, dated 10 January 2007, issued by the Ministry of Culture, Information & Sport of the Republic of Kazakhstan Publisher: Kussidi o wner - Еsipova N.А. The opinions of the authors may not always coincide with the opinions of the editors. The editors are not responsible for the contents of the advertisements placed and the reliability of the information from the information agencies. Reprinting of materials published in this magazine in any form including electronic mass media is only with permission of the editors. 65 TREND LOCATOR 68 EUROBAK PAGES Редакционное свидетельство No. 8037 Ж, от 10 января 2007 г. (повторно), выдано Министер ством культуры, информации и спорта Республики Казахстан Издатель: Кусиди Ю.Я. Собственник ИП Есипова Н. А. Мнен ия ав торов не всегда совпа дают с м нен ием ре дакци и. Ре дакция не несет от ветс т вен нос т и за содержан ие рек лам н ы х материа лов и дос товернос т ь сообщен и й и нформацион н ы х агенс т в. Перепечатка материалов, опубликованных в данном журнале, и их использование в любой форме, в том числе и электронных СМИ, допускается только с согласия редакции. TRANSLATION PARTNER ПАРТНЕР ПО ПЕРЕВОДАМ Insel 3 79 84 89 ACCOUNTING / БУХГАЛТЕРСКИЕ OUTSOURSING PARTNER УСЛУГИ Intercomp 3 34 06 57 87 Airlines Hotels Restaurants DELIVERY PARTNER ДОСТАВКА FedEx 3 56 38 00

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EDITOR’S ADDRESS welcoming new Members to EUROBAK / Новые компании в Ассоциации: Adizes Institute, Astana Property Management, COMPAREX, Embassy of Estonia in Astana, IFC COLOS, Teksan Dear Reader, We dedicated this issue to Corporate Social Responsibility (CSR) that presents a number of articles highlighting CSR projects run by EUROBAK Members Aristan Project Management Group, Siemens and KPMG, as well as charitable fund “Reach for change”. Julie Kussidi, EUROBAK Executive Director World Monitor Editor-in-Chief In April, the EUROBAK Board met with the Prime Minister of Kazakhstan, Karim Massimov, as well as the Cabinet of Ministers. Through a constructive dialogue, we reached a number of agreements. Details of the meeting are covered in the EUROBAK pages as well as a number of other high level events held. The Government of Kazakhstan is currently working on introducing changes to improve the investment climate in the country. Minister of Industry and New Technologies, Asset Issekeshev, talks about the Government’s efforts to make Kazakhstan even more attractive for foreign investors. The modernisation of the social welfare sphere is also a big part of the process. This subject is covered in the interview with the Minister of Labour and Social Protection of Population, Tamara Duisenova. After an intense and very productive spring, the summer is here and we wish you enjoyable holidays and look forward to a new business season. Sincerely Yours, Julie Kussidi Дорогой читатель, Этот выпуск посвящен корпоративной социальной ответственности и представляет вашему вниманию несколько статей и проектов от компаний, входящих в состав ЕВРОБАК: Aristan Project Management Group, Siemens и KPMG, а также проект благотворительного фонда Reach for сhange. В апреле этого года состоялась встреча Премьер-Министра и кабинета Министров Казахстана с Советом Директоров ЕВРОБАК. В ходе конструктивного диалога был достигнут ряд договоренностей, детали которых вы найдете в рубрике EUROBAK pages, так же как и отчеты о других значимых мероприятиях. Правительство Казахстана неустанно ведет работу по улучшению инвестиционного климата в Delivery partner: стране. Асет Исекешев, Министр индустрии и новых технологий РК, рассказывает о предпринимаемых мерах, которые вводит Правительство, чтобы Казахстан стал еще более привлекательным для инвесторов. Важной частью этого процесса является и социальная модернизация, о которой рассказывает Министр труда и социальной защиты населения РК Тамара Дуйсенова. После насыщенного и продуктивного весеннего сезона наступает лето, мы желаем вам насладиться каникулами и с нетерпением ждем встречи в новом бизнес-сезоне. Искренне, Юлия Кусиди 6 world monitor

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DESTINATION kazakhstan Kazakhstan: where to invest Kazakhstan has made the top 20 countries attracting foreign direct investment. At 2012 year-end, the republic ranked second after Russia, in the CIS for a volume of net FDI inflow. Such data has been provided by the UN Conference on Trade and Development (UNCTAD). We discussed with the Deputy Prime Minister/Minister of Industry and New Technologies, Mr. Asset Issekeshev, about this key activity of the Cabinet of Ministers of Kazakhstan. Asset Orentayevich, in his traditional address to the people, the Head of State Nursultan Nazarbayev set the objective for activating the work to attract foreign investors, in particular transnational corporations. This is far from being a simple thing, if we consider what is happening in the global economy. What are you planning to begin with? It will certainly take much effort. You are absolutely right that the situation in the world economy is quite complicated now. As you know, upon launching the new industrial policy, we focused mainly on FDI attraction; we reviewed the legislation framework, the relative infrastructure. To be more specific, we have established the relationship as follows: foreign institutions – the center – regions (Ministry of Foreign Affairs of the Republic of Kazakhstan – Ministry of Industry and New Technologies, Kaznex Invest – akimats); priority states have been defined with respect to prospective sectors: Germany, France, USA, Japan, South Korea, United Kingdom; priority projects; activities in the regions have been intensified and the Investor Service Centers have been established. As a result, all of this has affected the business climate positively. Could you tell us please, which industries are planned for attracting investors within the second five years of the industrial program? Have the priorities remained the same or changed? Unlike the first five-year plan, the second one will focus on a limited number of priorities. Among them, e.g. there is a high value-added metallurgy, oil processing, oil chemical industry, chemical industry (agricultural chemical industry and industrial chemical production), food industry, engineering industry, construction material production. We are focusing highly on cluster development. Depending on their scale, national, territorial and innovation clusters will be created. It is important to understand that if a businessman decides to invest in other industries, nobody can prevent him/her from doing that. However, if you look to governmental support, then you have to invest in processing industry projects! Over 300 investment projects are under current control; 110 of which have already been implemented. The total investment amount made $20.6 billion. Ninety-eight more projects amounting to $44.7 billion are being implemented; 131 are prospect projects. I have already mentioned it several times, but let me repeat it: when we are talking about investment, we mean not only financial resources, but cutting edge technologies, knowledge, production renovation, as well. Therefore, the Head of State set foreign investment attraction as one of the priorities of the entire economic policy of the country. We should take all reasonable efforts to meet the objectives set by the President to develop Kazakhstan as a regional investment hub. Asset Issekeshev, Deputy Prime Minister, Minister of Industry and New Technologies of Kazakhstan 8 world monitor

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ВЕКТОР КАЗАХСТАН Казахстан: куда инвестировать Казахстан вошел в ТОП-20 стран-лидеров по объему привлеченных прямых иностранных инвестиций. По итогам 2012 года республика заняла второе место в СНГ по объему чистого притока ПИИ после России. Такие данные приводит Конференция ООН по торговле и развитию (ЮНКТАД). Об этом ключевом направлении работы казахстанского Кабинета министров мы беседуем с заместителем Премьер-Министра – министром индустрии и новых технологий Асетом Исекешевым. Асет Орентаевич, в своем традиционном обращении к народу глава государства Нурсултан Назарбаев поставил задачу активизировать работу по привлечению иностранных инвесторов, особенно ТНК. Далеко не простая работа, если учесть то, что творится в глобальной экономике. С чего начнете? Безусловно, потребуется немало усилий. Вы абсолютно верно подметили – сейчас сложилась непростая ситуация в мировой экономике. За инвесторов идет жесткая борьба. Как вы знаете, со стартом новой промышленной политики мы основной акцент сделали на привлечение ПИИ. Пересмотрели законодательную базу, соответствующую инфраструктуру. Если более конкретно, то построена такая взаимосвязь: загранучреждения – центр – регионы (МИД РК - МИНТ, Kaznex Invest - акиматы); определены с учетом перспективных секторов приоритетные государства: Германия, Франция, США, Япония, Южная Корея и Великобритания; приоритетные проекты; усилена работа в регионах и созданы центры обслуживания инвесторов. Все это в итоге благоприятно сказалось на бизнес-климате. А в какие отрасли планируется привлекать инвесторов во второй пятилетке индустриальной программы? Приоритеты те же или изменились? В отличие от первой пятилетки вторая будет сконцентрирована на ограниченном количестве приоритетов. В их числе, например, металлургия высоких переделов, нефтепереработка, нефтехимия и химическая промышленность (агрохимия и производство химикатов для промышленности), пищевая промышленность, машиностроение, производство строительных материалов. Большой акцент ставится на кластерное развитие. В зависимости от масштаба когда мы говорим об инвестициях, то подразумеваем не только финансовые ресурсы, но и трансферт новейших технологий, знаний, обновление производства будут создаваться национальные, территориальные и инновационные кластеры. Важно понимать, что если бизнесмен решит инвестировать в другие отрасли, никто ему не запретит. Но если он рассчитывает на господдержку в рамках индустриальной программы, тогда будьте любезны вкладывать в проекты обрабатывающей промышленности! Сейчас у нас под контролем более 300 инвестиционных проектов. Из них 110 уже реализовано. Общая сумма инвестиций составила $20,6 млрд. Еще 98 проектов стоимостью 44,7 млрд долларов реализуются. Перспективных - 131. Я не раз отмечал, но все-таки повторюсь, что когда мы говорим об инвестициях, то подразумеваем не только финансовые ресурсы, но и трансферт новейших технологий, знаний, обновление производства. Поэтому глава государства обозначил привлечение иностранных инвестиций одним из приоритетов всей экономической политики страны. И мы должны приложить все усилия для достижения поставленных Президентом задач по формированию Казахстана как регионального инвестиционного хаба. supported by EUROBAK 9

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DESTINATION kazakhstan Social modernisation of Kazakhstan The Government of the Republic of Kazakhstan offers prospects of large-scale social modernisation coming soon. The development of this relevant concept is in its final stage. In her interview with World Monitor magazine, Tamara Duisenova, Minister of Labour and Social Protection of Population, talks with us about what Kazakhstanis should expect upon its implementation, as well as about the role of socially responsible business in Kazakhstan. Improvement of the Social Protection System within the Republic of Kazakhstan The concept of social modernisation is a crucial strategic one, which is aimed at essential developments in the social structure – usually understood as retirement benefits or allowances, though it actually includes education, health care, and accommodation; all components of our life in general. The concept is aimed at developing all these components hand-in-hand. Each Kazakhstani should have the right to an education, to a job choice, for labour and medical assistance, as well as for the governmental support in case of any difficult life circumstances. People should feel confident about their future. The task for the government is to enable this confidence and take any measures required to monitor the compliance. With the concept’s implementation, an efficient model of social and labour relations will be created in the country based on productive employment, safe work places and decent salaries. The social security system will become complex, based on inclusive economic growth. The social assistance system will be improved; the retirement benefits and allowances will grow – depending on the budget headroom. The social service system will continue to be reformed. Development and implementation of social services standards will make them more available and of better quality. Kazakhstan should become a state where life is comfortable for anyone – both for ordinary people and disabled people. Besides, private structures and non-governmental associations will also be engaged in such work along with the state. The state’s addressing the issues of social assistance will enable average income per capita of financially disadvantaged citizens to reach a livable wage, provided that able-bodied citizens will take active part in employment programs, social integration and social promotion programs. Thus, the mechanisms to reduce poverty will be mainly based on personal initiatives and readiness of an individual to break out of the vicious circle of poverty and proceed to productive labour. Mutual obligations of the state and able-bodied family members will be provided for by the social agreement, which will become a kind of road map in order to leave behind a difficult situation. The major task here is to switch from a consumer society, to which we are unfortunately inclined today, to the universal labour society. The key task of the state here is to provide conditions Tamara Duisenova, Minister of Labour and Social Protection of Population of the Republic of Kazakhstan 10 world monitor

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DESTINATION kazakhstan for business development and therefore employment of population. International experiences prove the importance of such an approach as well. Thus, e.g., according to the Anglo-Saxon model, business plays a leading part in providing social benefits. Social assistance is based financially on private savings and private insurance. Corporate social responsibility in Kazakhstan The strategic objectives of Kazakhstan, to make the top 30 developed and competitive economies in the world by 2050, are possible only based on public private partnership. Kazakhstani business should become an engine for economic growth, as well as become responsible for social developments. We can see the possibility of distributing responsibilities for social welfare and social stability between the state, business society and labour unions, where: • the state is responsible for development and constant improvement of legislation in the area of social and labour relations, assistance in implementation of international standards concerning the labour guiding principles and rights and development of positive social partnership; • the business society undertakes responsibility for conditions of decent labor, environmental protection, active promotion of policies and practices of “corporate sustainable development” and creation of a new category of “socially responsible businessmen and investors.” Business development combining economic, social, environmental, and high-tech factors in turn improves the competitive ability of the state; and • labour unions ensure protection of labour rights, social and economic rights and interests of employees. For the purpose of promoting corporate social responsibility by private enterprises and the implementation of best practices for its arrangement in Kazakhstan, the Head of the State, Mr. N.A. Nazarbayev, signed the Decree of the Republic of Kazakhstan On Paryz Corporate Social Responsibility Contest in January 2008, which impacts large enterprises and small and medium-sized enterprises by the following categories: The Best Collective Agreement, The Best Socially Responsible Company, The Best Social Project, The Contribution to Environment. Since 2008, 2,720 companies have taken part in it from all regions of the country. During the contest years, its participants, who are local and several multinational companies operating in Kazakhstan, have demonstrated a high level of social responsibility. In 2013, 534 companies participated in the contest. The projects implemented by both large and small and medium enterprises became known to the public. “The social images” presented for the contest demonstrated a larger number of new initiatives and a high corporate responsibility both to their employees and to society in general. For example, last year the Sarbayski and Sokolovski Mining Plant implemented projects for the construction of a 270 million KZT sport and recreation center in the Kachar village; a 120 million KZT kindergarten for 50 children in Rudny; Akhmutdinov IE from North Kazakhstan region granted 4.8 million KZT for sponsorship and charity in 2012: for kindergartens, boarding schools, retired citizens, WWII participants, disabled people, and financially disadvantaged people. And I would like to mention that it is just an ounce of the contribution enterprises make to development of the social sphere. Such programs improve infrastructure and living environment, as well as develop labour activities and provide development of productive employment, which is also very important. Therefore, they provide growth of income for the general population. Social responsibility has great development potential in Kazakhstan, however, it requires much effort by all stakeholders. There is a base of standards to operate in such area; such a base has been developed for many years by countries with advanced CSR practices and serves as a guideline, such as the OECD Guidelines for Multinational Enterprises; 10 principles of UN Global Compact; SA8000 Standard for Assessment of Social Aspects of Management Systems; ILO Tripartite Declaration of Principles; ISO 26000 – International Standard Guidelines for Social Responsibility, which cannot be certified, and so on. We should remember that by developing corporate social responsibility, all parties assist in the innovative development of the country and enable the improvement of the quality of life and welfare of Kazakhstanis. 12 world monitor

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