What is CSR?
What is CSR?
European Union and World Bank:
• voluntary obligation
• to support sustainable economic
development;
• to integrate business activity into social and
economic aspects;
• to improve common welfare of society
What is CSR-2
«Free choice of business towards improving
social welfare of society by using relevant tools
and corporate resources in order to manage
business»
Phillip Kotler
The history of CSR
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60-70-80 years;
Ecology;
Child labor;
Naomi J Kley, «NO Logo»
Importance of CSR
Environics International, 26 thousands respondents,
2001:
• image of a company: 49%;
• formation of the brand: 35%;
• financial situation: 10%;
Cone Roper the survey of consumer tastes, 1993:
• 78 % -ready to buy the product of the company
that attempts any kind of social activity;
• 66 %- will refuse their favorite “brands” in favour
of other companies implementing CSR policies;
Types of CSR (Kotler)
Internal
External
Security of employment;
Stability of wages;
To support socially valuable wage;
Additional medical and social insurance
of employees;
• To improve human resources by training
programs, to organize preparation
courses;
• To help employee in critical moment;
• Sponsorship and corporate charity
• Participation in the protection of
environment
• Mutual connection with local
community and local government
• Preparation for participation in the
elimination of emergency situations
• Responsibility on consumers of
goods and services (qualitative
production)
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CSR: World practice
• America: Selfhood, charitable programs;
• Germany: ignorance of CSR by society, rating:
DHL, BASF;
• Austria: ecology;
• Russia: The Collegium of Commerce, Social
Charter, honor code of bankers;
• Ukraine: newly established legal framework;
• Kazakhstan: encouraged actions.
CSR IN AZERBAIJAN
CSR in Azerbaijan
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Haji Zeynalabdin Taghiyev
Murtuza Muxtarov
Agamusa Naghiyev
****
TNC and local companies
CSR in Azerbaijan...SOCAR
• Repair of rural schools (Balakan region)
• Neftchi Health and Sport Center
• Assistance to internally displaced persons
(IDPs)
CSM in Azerbaijan...TNC
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Oil companies: ecology
BP: Project Management School
World Bank, EBRD, İFC
Joint projects;
CSM in Azerbaijan...Mobile operators
• Bakcell:
– Sport for Women, 3200 women, 8 regions
– Entertainment of children: 20 districts
• Nar Mobile:
– Art festival, 7 districts, 17 artists, 40 works;
– Organization of mountain climbing competition;
– «Disability does not matter».
• Azercell
– Holiday gifts;
CSR in Azerbaijan : Current problems
• The weakness of the legal framework;
• Low awareness of entrepreneurs;
• Lack of experts;
• Lack of accountability;
• Lack of relevant literature.
CSR in Azerbaijan: Survey, 2008
• 100 companies, 38 answers;
• 74.1% do not publish report;
• 25.9% publish report.
Barriers to CSR:
• institutional barriers-8 respondents,
• social barriers-7;
• economical barriers-5 respondents;
• Political barriers-2 resp.
CSR in Azerbaijan: Survey, 2008
• Encouraged actions:
– 74.3% tax exemption;
– 20% tax water down;
– 5.7% other incentives (?)
CSR in Azerbaijan: State
• Ministry of Economic Development and the
International Finance Corporation:
– Azerbaijan Corporate Management Project;
• Google cache link:
http://webcache.googleusercontent.com/search?q=cache:oajvjctHDJUJ:www.economy.gov.az/index.php/en/economy/coperategovernance/19-economy/korporativ-idar%25C9%2599etm%25C9%2599/100-korporativ-idar%25C9%2599etm%25C9%2599m%25C9%2599c%25C9%2599ll%25C9%2599si+&cd=1&hl=az&ct=clnk&gl=az
• Ministry of Economic Development : The Code of
Corporate Ethics;
• Parliament: The Law on CSR (?);
• NGO Forum: The Charter on CSR (?);
CSR in Azerbaijan: Solution of
problems
• Corporate Social Responsibility Azerbaijan,
www.csraz.com
– Organization of trainings and seminars on CSR
– Researches on CSR;
– Consulting services on CSR;
– Preparation and organization of CSR projects;
– Spreading information about CSR.
• Legislative projects
CSR in Azerbaijan: The result and
Suggestions
• Encouraged actions should be planned and
fulfilled;
• Tax incentives should be applied;
• Trainings should be conducted;
• Public and private sector should join international
calls;
• Code of social responsibility should be motivated,
the development of corporate governance
standards. Companies should be encouraged to
increase the social accountability;
The result and suggestions…cont’d
• Government and local regulatory bodies should
report annual priorities in the field of CSR;
• While implementing CSR policy in Azerbaijan
foreign transnational corporations should give
more priority to cooperation with local civil
society institutions;
• Literature should be published in Azerbaijan
language and CSR as a subject should be tutored
economic faculties in order to overcome the
weakness of CSR culture;
Questions?
Ziya Alili
Economist-researcher;
Center for Economic and Social Development;
AliliZiya@CESD.Az
Image credits, in order of appearance in slides:
• Business Ethics.com;
• Wall street journal;
• Charitystar.com
• Wikipedia (2)
• ERC.com
• Veryicon.com
This project is funded by the Konrad Adenauer Stiftung (KAS)