1. Zh.S.Belyaeva CORPORATE SOCIAL RESPONSIBILITY IN ENERGY INDUSTRY Ekaterinburg, 2015

2. Lecture 2_ CSR Management: Standards, Audit, Reporting 1.CSR Regulations: Voluntary or mandatory? 2.Standards of Non-Financial reporting 3.CSR Reporting in Practice

3. Mandatory CSR Reporting Backed by increasing calls from investors and the community for more disclosure and reporting on CSR issues, many jurisdictions have now introduced mandatory corporate reporting requirements on environmental and social matters: Australia France South Africa Sweden Canada Denmark Netherlands Norway the UK.

4. Directors’ Duties and CSR New ways of interpreting and conceiving directors’ duties that align with concept of CSR. The duty: To act in the best interests of the company. Traditional, conservative interpretation: Shareholders are the company- Duty is to raise profits for benefit of shareholders. Environmental and social considerations not relevant. The current, progressive interpretation: Supreme Court of Canada, in Peoples v. Wise (2004) “We accept as an accurate statement of law that in determining whether they are acting with a view to the best interests of the corporation it may be legitimate, given all the circumstances of a given case, for the board of directors to consider, inter alia, the interests of shareholders, employees, suppliers, creditors, consumers, governments and the environment.”

5. Directors’ Duties and CSR New UK directors’ duty set to be introduced this year through Companies Bill. (Waiting on Royal Assent) Section 173 Duty to promote the success of the company (1) A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: (a) the likely consequences of any decision in the long term; (b) the interests of the company’s employees; (c) the need to foster the company’s business relationships with suppliers, customers and others; (d) the impact of the company’s operations on the community and the environment; (e) the desirability of the company maintaining a reputation for high standards of business conduct; and (f) the need to act fairly as between members of the company.

6. Pluralism in Theories brings Misunderstanding!

7. CSR Standards 1) Global (international); 2) The State; 3)Corporate (level of group of firms) 4) Inter-corporate (internal) The most important are issues of obligatory and voluntary parity in CSR, dedicated to a balance finding between economic efficiency and social justice.

8. Some International Guidelines ILO Tripartite Declaration (1919) OECD Guidelines for Multinational Enterprises (1976) Caux Round Table Principles for Business (1994) The UN Norms on the Responsibilities of Transnational Corporations and other Business Enterprises with regard to Human Rights (UN Norms) Global Sullivan Principles (1999) UN Global Compact (1999) Green Paper 366: Promoting a European framework for corporate social responsibility (2001) Corporate social responsibility: A business contribution to sustainable development (Communication from the European Commission) (2002+)

10. Current Definition of social responsibility (SR) European Union (EU, 2001) mentions officially four contents of SR (of enterprises): the point is in a free-will-based acceptance of the end of abuse of employees, other business partners, broader society, and natural preconditions of humankind’s survival, beyond law. upgrading of its measures with SR connection between systemic thinking and SR (Cordoba, Campbell, 2008). world peace ISO 26000 (ISO, 2010) requires a holistic approach (based on interdependence) and includes seven content areas: (1) organization, management and governance, (2) human rights, (3) labor practices, (4) environment, (5) fair operating practices, (6) consumer issues, and (7) community involvement and development. Figure 1. The definition of SR in ISO 26000 was not passed by theorists and politicians alone, but by the International standards organization that is backed by businesses.

12. Some Reporting Frameworks Principles for Responsible Investment PRME - Principles for Responsible Management Education Global Reporting Initiative(1-4) Principles for Defining Report Content Social Accountability 8000 Accountability 1000 Ethics Compliance Standard 2000 ISO 26000 is an ISO International Standard giving guidance on SR.

13. CSR Standards in Russia The code of corporate behavior (2002) Social charter for Russian business(2004/2008) «The Social reporting of the enterprises and the organizations registered in the RF» (2006) (АА 1000 and GRI-3) «CSR 2008» (Russia, Ukraine, Kazakhstan and Serbia) The Technical committee on standardization № 471 on «Social responsibility» was created by the order № 1526 by Federal agencies on technical regulation and metrology on November, 22, 2005

14. WHO is Reporting CSR: CSR projects may be administered and communicate achievements via: A dedicated CSR section or department The HR department Business development section Public Relations department Directly via CEO and / or Board of Directors

15. Reporting Formats: The ‘Triple Bottom Line’ This means expanding the traditional reporting framework to take into account performance in terms of: Social (People) Environmental (Planet) Financial (Profit)

16. Reporting Formats: The ‘Triple Bottom Line’ Concept developed by John Elkington in 1994 Expects organisations to be responsible to ‘stakeholders’ interests rather than ‘shareholders’ profit Related concepts: –Full-cost accounting –Social entrepreneurialism –Social and natural capital

17. Other sources for CSR reporting: ‘Sustainability Guidelines’ developed by the Global Reporting Initiative (www.globalreporting.org) SA800 certification developed by the international human rights organisation Social Accountability International. (www.sa-intl.org)

18. Other sources for CSR reporting: The Green Globe programme for ‘benchmarking, certification and performance improvement’, based on Agenda 21 proposals from the 1992 Rio Earth Summit (www.greenglobe.org) ISO 14000 international environmental management standards (www.iso.org)

19. Other sources for CSR reporting: The United Nations Global Compact (UNGC) framework and mechanism designed to encourage businesses to adopt CSR policies (www.unglobalcompact.org) The FTSE 4 Good Index – measures the performance of companies who meet globally recognised CSR standards. (www.ftse.com/Indices/FTSE4 Good_Index_Series)

20. Alternative sources of information: www.corpwatch.org www.naomiklein.org http://www.publiceye.ch/

21. B Corps, unlike traditional businesses: Meet comprehensive and transparent social and environmental performance standards; Meet higher legal accountability standards; Build business constituency for public policies that support sustainable business. 517 B Corporations $2.9 Billion in Revenues 60 Industries $2 million in Annual Savings

22. administrative bases allows considering that CSR is not reduced to The analysis of economic, legal and administrative bases allows considering that CSR is not reduced to a philanthropy, sponsorship and patronage of arts. CSR is the managerial tool of increase of an economic gain, as a tool for competitive struggle, one of the major tools of public relations of the one of the major tools of public relations of the company.

23. Questions and Discussion