1. Model Forests in Russia
Corporate social responsibility

2. Pscov Model Forest WWF-Stora Enso SIDA founder
3 pillars of sustainability: economic, social, environmental
Co-management, multi-stakeholder governance

3. Corporate social responsibility as a business strategy
Building Models of sustainability (Pscov Model Forest)
FSC certification to justify sustainable forest operations.
Stora-Enso—WWF partnership
A) with the goal to adjust the organizational and institutional environment of the country to their business
B) to intensify forest management
C) to legitimize business operations in the eyes of both transnational and local stakeholders, especially NGOs and final consumers

4. What can we learn from this case
Impacts of CSR (FSC, Model forest) on the local practices on the ground
TNC as agent of institutional change, to what extent they can change the institutions
To what extent results can be disseminated?

5. Context in Russian forest sector
Constant restructuring of state institutions, high institutional turbulence
Extensive forest management
Forest Code of 1997, 2006 (undeveloped regulations
Well developed NGOs networks

6. Project with new practices
Transnational actors
TNC
Donors
ENGO
FSC
NGO
TNC
subsidiary
Project with new practices
Space of Place

7. Stora Enso Business Network
Level
International
(Global) (EU)
(Pan-European)
National
(Russian Federation)
(NW Russia)
Regional
(Republic)
District
(Priluzie leskhoz)
Local
(Logging company)
(Village)
Stora Enso Business Network
Buyers
Wood Supply Russia
Kingisepp
STF-Strug
STF-Gdov

8. International
Level
(Global) (EU)
(Pan-European)
National
(Russian Federation)
(NW Russia)
Regional
(Pscov oblast, St. Petersburg)
(Kraj)
(Okrug)
(County)
District
(Leskhoz)
(Raion)
(Municipality)
Strugi Krasnie raion
Local
(Logging company)
(Village)
FSC International
Model Forest Network
Rainforest Alliance
WWF International
Smartwood
WWF Germany
FSC Russia
WWF Russia
WWF
NEPCon
Greenforest
Forest club
WWF
Eco-tour

9. Governments at different levels
International
(Global) (EU)
(Pan-European)
National
(Russian Federation)
(NW Russia)
Regional
(Republic)
(Kraj)
(Okrug)
(County)
District
(Leskhoz)
(Raion)
(Municipality)
Local
(Logging company)
(Village)
Stora Enso
SIDA
WWF Germany
WWF International
Steering Committee
WWF Russia
Governments at different levels
St. Petersburg Forestry Research Institute
Advisory Board
Pscov
Model Forest
Forest Club
STF-Strug so
Civil Society

10. Transnational stakeholders
SIDA-official agenda poverty reduction, real interest to help Swedish companies in Russia, required public participation in decision making
WWF- promote sustainability through Model Forests, implement FSC

11. Interaction with governments
Federal- “special status” of the Model Forest– special agreement, could not change legislation, could not reproduce lessons learned in intensive forest management

12. Interaction with local stakeholders
Small grants supporting community initiatives
Media campaign
Public participation- forest club, one public hearing with scenarios to choose (public manipulated, but happy)
Educational programs- very successful
Citizens loved WWF and not STF-Strug (Stora-Enso subsidiary)

13. Outcomes
FSC implemented in all Stora-Enso subsidiaries, all workers safety, community involvement, biodiversity conservation
Efforts to reproduce all other innovations failed
Strong expert community in Russia was created
CSR as a business strategy did not worked well for establishing business in Russia but worked well with final consumers and shareholders
In December 2008, STF- strug and other subsidiaries (except two in Karelia were closed)

14. Model Forest Priluzie Silver Taiga (before 2002 WWF)
With the international level: Swiss agency for international development, WWF network
Governmental agencies partners: forest agency, ministry for natural resources, local forest management units
Business not interested on early stage, on late stage Mondi Business paper—driver of certification

15. Time 1.Global SFM discourse 2.Donor 3.Silver Taiga 4.Working group
9. Local practice in
Model Forest Priluzie
Time
1.Global SFM discourse
10.Building
trust
12.Use of
Different
Mechanisms
11.Identify
Suitable
institutions
3.Silver Taiga
2.Donor
4.Working
group
6.Scientists
5.Komi government agencies
7.Local community organisers
13. Forest council
8.Business

16. Silver Taiga Foundation
Level
Gradient
(Negotiating NGO Radical NGO)
International
(Global) (EU)
(Pan-European)
National
(Russian Federation)
(NW Russia)
Regional
(Komi Republic)
(Kraj)
(Okrug)
(County)
District
(Leskhoz)
(Raion)
(Municipality)
Local
(Logging company)
(Village)
(Parish)
Silver Taiga Foundation
Save Pechora
NGO
Local groups in Udora region
IMFN
Rainforest Action Network
WWF
Rainforest Alliance
SmartWood
WWF-Russia
Forest Ethics
Greenpeace-Russia
Greenpeace
WRI
Biodiversity Conservation Centre
FSC

17. Business networks dynamics
Mondi Business Paper-with its commitment to certification-key player
Certification of forest management unit facilitates certification of chain of custody
15 leasers in Priluzie

18. Ilym Pulp Mondi Business Paper Level International (Global) (EU)
(Pan-European)
National
(Russian Federation)
(NW Russia)
Regional
(Komi Republic)
District
(Priluzie leskhoz)
Local
(Logging company)
(Village)
Mondi Business Paper
Luzalec
Veldoria
(timber export)
Nodzul LZK
(China)
Ilym Pulp
(Siberia, Arkhangelsk)
Komiles-nab
Mondi Global Business
Network
Timber buyers
Mag
Verkhnyaya
Lopya
Viledlec
(”mr Durakov”)
Obselkhoz-
tekhnica
LZK Priluzlec
Sevlesprom
kompania
Agriles-servis
Kusty-shev
Butalov
Grigorash
Local logging for personal needs

22. Model Forest innovations
Practice of public hearings when forest industry rents the territory
Forests for community use around villages
Old growth forests excluded from management

23. What practices changed?
Social: Workers safety, salary in time, food in the forest, medicine
Environmental: biodiversity conservation on the logging plots
Economic: benefit big companies, while small struggle, certification allows higher prices abroad, under Mondi monopoly

24. Comparison Komi Model Forest Pskov Model Forest
NGO-government partnership—the driver
Forest management unit a certificate holder
Innovations transferred to Komi
Multi-level governance: Model Forest Priluzie as a Laboratory for Social Change
Pskov Model Forest
NGO-business partnership—the driver
Company a certificate holder
Innovations transferred only to company subsidiaries
Less stakeholders involvement
Different ways of introducing SFM into Russia—different agents of institutional change