CSR In Kazakhstan: Looking Forward Ken Mack, President American Chamber of Commerce in Kazakhstan

Impetus for CSR Working Group Int’l firms want to share CSR best practices and coordinate their CSR activities with others Int’l firms want to promote CSR among domestic corporations Companies and NGOs want to promote a better environment for corporate philanthropy

1. Share CSR Best Practices A number of firms want to coordinate CSR activities with other firms – to promote more efficient CSR throughout Kazakhstan Firms are willing to share best practices to raise CSR standards in the country CSR Working Group can serve as a forum for promoting this dialogue

Sample List of CSR Activities Human rights, labor and security Enterprise and economic development Business standards and corporate governance Health promotion Education and leadership development Humanitarian aid Environmental protection

2. Promote CSR Among Domestic Firms Growing number of domestic firms want to engage in good corporate citizenship But few domestic firms have the capacity to practice CSR effectively CSR Working Group could promote more effective CSR throughout Kazakhstan

3.Advocate a Better Environment for Corporate Philanthropy Promote better tax legislation for charitable activities. Increase awareness of the importance of corporate philanthropy. Conduct and publicize research on the development of corporate philanthropy.

Origins of CSR Public Demand for Accountability Demand for Community Engagement Demand for Better Working Conditions Demand for Environmental Protection

CSR Working Group Set up in January 2005 AmCham Working Group Focus on Community Engagement Ran Community Engagement Practitioners’ Forum in April 2005 Frequent CSR speakers at monthly meeting

CSR Research in Kazakhstan Eurasia Foundation surveyed more than 120 firms –Kazakhstan Private Corporations –Kazakhstan State-Owned Corporations –Foreign-Owned Corporations

Are you familiar with the term Corporate Social Responsibility?

Does your company have a Corporate Social Responsibility policy?

Is your CSR policy accessible to the public or described on your website?

Average distribution of aggregate philanthropic budget

Do you have a policy for managing philanthropic activity?

Do you have dedicated personnel to manage your philanthropic activity?

Trends in Community Engagement More firms supporting community projects Firms volunteering time and other resources Expansion of corporate foundations Government promotion of CSR concept Gov’t support for non-profit organizations

The Impact on Business Greater PR opportunities from CE activities Consumers prefer to buy from firms with CSR Int’l investors favor companies with good CSR Governments support firms with good CSR

Recommendations 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