Business is a source of the wealth of the community

Business is a source of the wealth of the community 2006 What is SUAL Group -private company; - the 6th largest world aluminium company; - 2,7 bln $ revenue in 2005; - vertically integrated company with the full chain of bauxite - alumina – aluminum production; - 20 production enterprises in Russia and Ukraine, in 9 regions, in 15 towns; - 60 000 employees. 2006 SUAL Group enterprises 2006 2006 SUAL’s mission To build a world class international resources company, successfully developing opportunities within the global metallurgical business. 2006 Involving in social investment Historically (USSR – new Russian Federation) Needs for building the new model of social interaction: community – business government There can be no effective business without effective workers Business can and must influence local communities Commercial success of investment projects depends on goodwill of local communities and government Investing into people means investing into development of business ( A person is about more than just production) Striving to maximize our positive impacts 2006 Tasks that are facing society and businesses Society Creation of conditions to improve the wellbeing of the population and decrease poverty through dynamic and sustainable socio-economic development of the territories Creation of a flexible economic environment, which is quick to react to changes in external conditions Creation of widespread middle-class Business Guaranteeing the effectiveness and profitability of business (There can be no social well-being without businesses) Ability to quickly adapt to competition Promotion of economic growth; establishment of new work places Ensuring steady improvement in Russia’s Implementation of managerial, global competitiveness in terms of people, environmental and business state institutions and business transparency standards Creation of conditions for the stimulation of economic development and the investment attractiveness of the territory 2006 Mechanism for creating sustainability Corporate social responsibility = corporate social policy + social partnership 2006 Social-partnership tools of SUAL Group Since 1997 – Agreements on general principles of co-operation between regional administrations and SUAL Group 2001 - Social Partnership Agreement between municipal authorities and SUAL Group 2003 - Establishment of a corporate (integrated) pension system 2004 - Memorandum of Understanding between UN Development Program and SUAL Group 2004 - Memorandum of Understanding between USAID-Russia and SUAL Group 2006 - Memorandum of Understanding between USAID-Ukraine and SUAL Group -developing of public foundation 2006 Map of social partnership SUAL Group Business structures Partners Bureau of Coordinating Council Local authorities Social partnership COODINATING COUNCIL FOR SOCIAL PARTNERSHIP Regional government Non-commercial organizations Public Foundation «Energy of Creation» Executive body Working and controlling body, which oversees realization of decisions Development of potential of municipal units’ administrations Creation of local community foundation, private charity Exposure of problem and elaboration of joint solutions Creation of mechanisms and models. Development of NGOs Health and environmental programs Development of small and medium-sized business and supporting Development of citizen activity and volunteering Conferences and educational programs Case study “ Complex socio-economic development of the territories of presence of SUAL Group in Russian Federation” Objectives:  Build capacities of municipal authorities  Support small and medium-sized businesses  Develop sustainable mechanisms of environmental protection  Improve health care services  Establish community foundations and use their capacities  Establish and implement effective mechanisms of using charitable resources  Develop nonprofit organizations and civic activity  Involve citizens in decision-making at a local level  Developing nonprofit organizations providing services in health care, education, and culture 2006 Program Strength and Success Factors  Complex approach: combines fiscal, economic, ecological, health, cultural, and educational development partnership model allows to attract best knowledge and experience  Parity relationship with local authorities: constructive dialogue and systematic planning that helps break dependency attitudes in local community and assure long-term advancement of local communities  Effective constant open dialogue between all partners and joint monitoring of external factors’ influence on community development  New role of NGO’s – NGO provides social services  Effective communication: experience exchange between program partners and general public  Long-term orientation - 3-5 years strategic planning process that systemizes development efforts  Customized approach - takes into account needs, opportunities, and limitations of specific location  Creative and transforming role of business, active participation in social initiative 2006 Future opportunities Doubling the number of program cites in the next year , including Ukraine  Balance of interests and contributions to the common cause, to formation of favorable environment  Participation in event financing and distribution of responsibility  Integrating efforts and abilities in the sphere of social initiatives, including the use of new and modern technologies  Long-term goals and stage-by-stage achievement of these goals  Constant measuring (evaluation) of the state of cooperation and achieved results  Collective evaluation of business’ positive influence on community development 2006 Regional and local issues Redistribution of authority Reduction of income base Slow reorganization to satisfy new legislative and financial conditions Large number of issues that must be resolved with input from local budgets Lack of readiness to form municipal income base Difficulties with transferring and effectively managing property Shortage of trained personnel Lack of flexibility Reluctance to change; desire for businesses to solve social issues 2006 What are the benefits of cooperation? Development and implementation of different forms of social partnership Conditions for sustainable development of the regions Investment attractiveness of the territories and improved competitiveness Improved financial and economic relations with a balance of interests Optimal solutions for social issues Private initiatives by individuals are stimulated while the state provides minimal social guarantees Different mechanisms are used to reinvest profits into communities and territories 2006 What do we want to achieve? Effective production Effective cooperation with regional and local governing authorities and the community Sustainable development of the regions Improved quality of life 2006