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How does CSR evolved

in Russia?Tesi Magistrale di Davide Albergoni

Bergamo, 23 of Febraury, 2016

Moscow

Why)Russia?

2Tesi Magistrale- CSR Russia – Davide Albergoni

RESEARCHQUESTIONS:Which is the1evolution of1Russian1companies1approachtowards CSR?Which are1scope1and1motivesof1reporting?

Agenda

What)is)CSR?

Russia’s)Peculiarities

Methodology

Findings

Tesi Magistrale- CSR Russia – Davide Albergoni

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CORPORATEresponsibility?SOCIAL

Tesi Magistrale- CSR Russia – Davide Albergoni

www.bestppt.comTesi Magistrale- CSR Russia – Davide Albergoni

The1social1responsibility of1business1(that)1encompasses the1economic,,legal,,ethical and,discretionary expectations thatsociety1has on1organisations ata1given point in1time

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CARROLL (1979)

SociallyDesiderable

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Carroll’s)Four)Pillars)(1979)

Socially)Necessary

Mandatory

Mandatory

Tesi Magistrale- CSR Russia – Davide Albergoni

CSR1is a1concept wherebycompanies1integrate1social and1environmental concerns intotheir business,operations and1in1their interactions with1theirstakeholders on1a1voluntary

basis

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EUROPEAN COMMISSION

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ECONOMIC ENVIRONMENTAL SOCIAL

Tesi Magistrale- CSR Russia – Davide Albergoni

CORPORATE) SOCIAL)RESPONSIBILITY

From)Carroll)to)The,Three,Pillars,Of)CSR

The,Defining Difference Of)Russian)CSRDuring)the)Soviet)Period)Central)State)provided)all)the)benefits.)This)role)has)been)partially)shifted)to)Private)Firms)after)the)collapse)of)the)Soviet)Union

SOVIET PAST

Tesi Magistrale- CSR Russia – Davide Albergoni

Many companies,)mainly the)one operating in)remote)areas were the)single,largest employerin)the)whole region.)As a)consequences,)theywere compelled to)take)care)of)some)social,functions too (Poussenkova &)Solantseva,)2007).)Most of)the)oil companies)of)Siberianregions were considered like “founding fathers” of)social)towns as they provided all the)mainsocial)services like school,)roads,)kindergartens,)hospitals,)theatres…and)more)

The,Defining Difference Of)Russian)CSR

Tesi Magistrale- CSR Russia – Davide Albergoni

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QUANTITATIVE ANALYSISFull)Historical)data)from)GRI)(Global)Reporting)Initiative)

QUALITATIVE ANALYSIS35)Interviews)to)Russian)Managers)from)Moscow)and)Nizhny)Novgorod

Methodology,Of)Research

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Sample,Composition)(GRI)

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: GRI1(2014)

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Source: GRI1(2014)

2320

8

21

PrivateSubsidiaries

State)Owned

NGOsPartnership

Sample,Composition)(GRI)

Source: GRI1(2014)

CSR)needs to)be)contextualised

70%Of)the)Manager)interviewed)stated)that)his/her)company)was)engaged)in)philanthropy)or)charitable)activities

Tesi Magistrale- CSR Russia – Davide Albergoni

FollowingWildowicz – Giegel (2010))&)Crotty (2014)

CSR)needs to)be)contextualised

40%Of)the)Manager)interviewed)still)account)pay)taxes)and)and)provide)jobs)as)CSR

Tesi Magistrale- CSR Russia – Davide Albergoni

FollowingWildowicz – Giegel (2010))&)Crotty (2014)

InterviewQuote

Tesi Magistrale- CSR Russia – Davide Albergoni

“In,Russian,Federation?”(Telecommunications 3,)NizhnyNovgorod)

“It does not exists”(Cigarettes 1,)Moscow)

DEFINE)CSR)IN)3)WORDS

International,Trade works as a)driver

60%Of)the)companies)which)follows)GRI)standards)are)listed)on)stock)exchanges)(MICEX,)LSE)or)NYSE))(2014)

Tesi Magistrale- CSR Russia – Davide Albergoni

Following Campbell) (2007)

International,Trade works as a)driver

48% Of)Russian)companies)which)follows)GRI)standards)are)subsidiaries)of)foreign)companies)(2014)

Tesi Magistrale- CSR Russia – Davide Albergoni

19Tesi Magistrale- CSR Russia – Davide Albergoni

Instrumental and,Normative,Approach

50% Of)Manager)interviewed)stated)improve,brand,and,image as)the)first)motives)of)CSR)Reporting

35%Of)Manager)interviewed)stated)required,to,compete,in,the,market,or)demanded,by,government,and,bodies)as)motives)of)

CSR)Reporting

Following Vogel)(2005)

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Instrumental and,Normative,ApproachWHY)CSR) IS)IMPORTANT

“No,principle,,importance of,money”(Cigarettes 1,)Moscow)

“Take,care,about client,,partners and,employees”

(Food and)Beverage 1,)Moscow)

Final,Quote

Natalia Sergina – Coca Cola Hellenic (2015)

CSR is the best way to survive economically in the future. and it isa management concept thatminimises risks, bonds customers to the brand

and creates satisfiedemployees. a csr commitment can open the doorsof russian companies to enter into foreign markets. but "in russia CSR is

considered as charity."

Tesi Magistrale- CSR Russia – Davide Albergoni

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(The)Moscow Times,)Accessed on)9)of)January 2016)

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THANK YOU FOR THE ATTENTION

Powered1by1Davide,Albergoni

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: KPMG1(2015) Source: KPMG1(2015)

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: KPMG1(2015)

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

0

10

20

30

40

50

60

70

80

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: GRI1(2014)

Companies1Using1GRI$Standards

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: GRI1(2014)

0

5

10

15

20

25

2013

2014

Companies1Using1GRI$Standards by$Sector

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: GRI1(2014)

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014

SME Large MNE

Companies1Using1GRI$Standards by$Dimension

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: GRI1(2014)

0

5

10

15

20

25

30

35

40

45

Non - GRI GRI - G3.1 GRI - G3 GRI - G4

2013 2014

History of1Reporting1By1GuidelinesFollowed

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: Blagov (2014)

Stakeholder,groups affected by1the1company1(percentage)

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: GRI1(2014)

31

23

Listed

Not)g Listed

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Appendix:,Graph1and1Tables

Tesi Magistrale- CSR Russia – Davide Albergoni

Source: GRI1(2014)

2320

8

21

PrivateSubsidiaries

State)Owned

NGOsPartnership

Source: GRI1(2014)

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� Sustainable development isthe1development that meetsthe1needs of1the1presentwithout comprimising the1abilty of1future,generationsto1meet their own needs

WORLD BANKBrutland Report

Tesi Magistrale- CSR Russia – Davide Albergoni