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Presentation on the topic: Social responsibility and business ethics

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The true role of business in society In the early 20th century, the doctrine of capitalist philanthropy arose, according to which successful organizations are obliged to donate part of their funds to the benefit of society. E. Carnegie invested 350 million dollars. to social programs and built more than two thousand public libraries. J.D. Rockefeller donated $550 million. to the Rockefeller Foundation. Since the 1950s, the concept of the social role of business began to change. In The Social Responsibility of Business, H.R. Bowen described how the concept of social responsibility applies to business and what social and economic benefits can come from recognizing the importance of social goals in business decision making.

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Two points of view on the relationship of the organization to the social environment The first point of view is that an organization is socially responsible if it operates with maximum profit and at the same time sacredly honors all the laws and norms of its society. According to this point of view, the organization should pursue only economic goals. A staunch supporter of this theory is the Nobel Prize winner M. Friedman, according to whom “the role of business is to use resources and energy in activities designed to increase profits, while observing the rules of the game ... as well as participating in fair competition without fraud and deceit."

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Two points of view on the attitude of the organization to the social environment According to the second point of view, the organization, in addition to obligations of a purely economic nature, must take into account the human and social aspects of the impact of its activities on employees, consumers and local communities and make a positive contribution to solving the social problems of society. This approach also implies that society expects from modern organizations not only high economic performance, but also great success in achieving social goals. The new point of view is that the organization must act responsibly in a number of areas: in the field of environmental protection, health care, civil rights, consumer protection, and so on.

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Business Legal Responsibility Legal responsibility, unlike social responsibility, involves compliance with specific laws and government regulations that define what an organization can and cannot do. An organization that complies with all laws and regulations behaves as legally responsible, but it does not always act as socially responsible. Social responsibility involves a certain degree of voluntary response of the organization to social problems.

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Pros and Cons of Social Responsibility The main arguments for corporate social responsibility are: Favorable long-term prospects for the company Changing needs and expectations of society Availability of resources to help solve social problems Moral obligation to be socially responsible

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Arguments "for" and "against" social responsibility The main arguments against the social responsibility of business: Violation of the principle of profit maximization Costs associated with social activities Low level of accountability to society Lack of social problem solving skills

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Arguments "for" and "against" social responsibility Many contemporaries are of the opinion that organizations should direct part of their resources and efforts to the development of local communities and society as a whole. Professor L. Preston believed that each organization should, first of all, carefully analyze its environment and choose such programs that will be most effective for it. Socially responsible actions are the prerogative of not only large companies. Social responsibility involves not just philanthropic activities, but the main thing for the survival of any company is profit. Profitability and development go hand in hand with the fair treatment of the company's employees, customers and the local community.

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Ethics and modern management The subject of business ethics are the principles that determine the right and wrong approaches to doing business. Opinion polls have shown that society is convinced of the lowering of business ethics standards. According to L. Osmer, “ethical problems in business are related to the conflict, or at least to its probability, between the indicators of the economic activity of the organization, measured by its income, costs and profits, and the indicators of its social responsibility, which are expressed in its obligations towards to other people both within the organization and in society. In an effort to improve the ethical climate, organizations are taking a variety of steps: compiling moral and ethical codes, engaging in social auditing, and providing training on ethics.

Now it's time to ask another question: Does the goal of maximizing the shareholder value of corporations conflict with the need for businesses to maintain high standards of ethical behavior and social responsibility? The answer is that these goals are most definitely the same. Many socially responsible firms have achieved significant growth in market value for their owners, and many unethical firms have now gone bankrupt.
business ethics
The word ethics is defined in Webster's Dictionary as "standards of treatment or moral conduct." Business ethics can be seen as the behavior of a company in relation to its employees, customers, shareholders and society as a whole. High standards of ethical conduct require that the firm treat each party with which it deals with fairness and impartiality. A firm's commitment to business ethics can be measured by the commitment of the firm and its employees to adhere to rules and regulations relating to factors such as product safety and quality, honesty in dealing with employees and counterparties, correct marketing and promotional activities, non-use of confidential information in personal purposes, participation in public events, refusing to participate in corrupt transactions and not using other illegal business practices.
There are many companies that behave unethically. In recent years, for example, employees of several well-known Wall Street investment banks have been jailed for personal use of insider information about alleged client mergers, and E.F. Hutton, a major brokerage firm, went bankrupt after being accused of defrauding its client banks of many millions of dollars. DrexelBurnhamLambert, once the world's most famous investment bank, went bankrupt and its CEO, "junk bonds king" Michael Milken, who once made $550 million in just one year, was sentenced to ten years in prison and a hefty fine. for violating the legislation on foam papers. Another investment bank, Salomon Brothers, was involved in a Treasury bond scandal that led to the dismissal of its chairman and other senior executives.
These cases received wide publicity and made people think about the ethics of business in general. However, the results of a recent study showed that the leaders of most of the largest American companies still try to adhere to ethical standards in all their actions related to their business. Moreover, as it turned out, there is a positive relationship between business ethics and its long-term profitability. For example, the Chase Bapk documents argued that strict adherence to ethics stimulated the growth of his profits, because it helped him, firstly, to avoid fines and legal expenses, secondly, to establish trusting relationships with clients and attract new ones, and, thirdly, attract and retain the highest qualified employees.
Today, most firms have formulated their own codes of business ethics and, in addition, conduct training programs designed to ensure that their employees understand the requirements of business ethics in various business situations. However, it is also critical that senior management - the chairman, president and vice presidents - be truly committed to the standards of ethical conduct and that they can communicate this commitment through their personal actions, as well as through company policies, orders and through the system of punishments and rewards. Social responsibility
Another issue worth considering is the social responsibility of business. Should businesses act strictly in the best interests of their shareholders, or are firms also responsible for the welfare of their employees, customers, and the communities in which they operate? Of course, firms have a moral responsibility to provide a safe working environment, to prevent air and water pollution, and to produce safe products. However, socially responsible business conduct requires certain additional costs, and not all businesses will agree to bear these costs voluntarily. If some firms follow social responsibility standards while others do not, then socially responsible firms will start to lose competitive edge due to excessive costs. Thus, it will be difficult, if not impossible, to ensure that companies voluntarily adhere to social responsibility standards in industries where competition is strong.
And in this regard, what can be said about monopoly firms with profits above the usual level: will such firms finance socially significant projects? No doubt they can do it, and many large successful firms are actually involved in disability welfare programs, environmental events and many other such actions - more than it would seem that this could be due solely to profit. or growth in shareholder wealth. Moreover, many such firms often directly donate large sums of money to charitable causes. At the same time, of course, corporations operate within the limits imposed by market forces. To illustrate this, suppose investors choose one of two firms in which to invest their funds. One of these firms directs a significant part of its own resources to social needs, while the policy of the other is focused on achieving maximum profit and share price. Many investors in this case will choose not to invest in a socially oriented firm, which will limit its ability to raise capital as a result. Indeed, why should the shareholders of a certain corporation finance projects beneficial to the whole society to a greater extent than other companies? For this reason, even firms that earn significant profits, attracting capital from the financial market to any extent, usually avoid making unilateral socially significant decisions that increase their costs.
Does all this mean that firms should not bear social responsibility at all? Of course not. But this means that most of the social activities that increase their costs must become mandatory rather than voluntary, so that costs are shared evenly among different companies. Thus, social programs such as ensuring product safety, training and hiring representatives of national and religious minorities, reduction of harmful emissions into the environment and many others are more likely to be effective if realistic rules of the game are initially set, and then their implementation is carefully monitored by government agencies. Of course, it is also essential that business and government cooperate in developing and establishing rules of corporate conduct, and that the costs, as well as the benefits of such actions, are carefully assessed and taken into account in the development of business regulation policy.
Despite the fact that many socially responsible actions should become mandatory from the point of view of the state, in recent years many companies have voluntarily taken part in such actions, especially in the field of environmental protection, since such actions themselves contribute to increased sales. In fact, companies, thus, were image advertising (imagepromotion). Moreover, it should be noted that for some firms, socially responsible actions may even turn out to be de facto profitable if consumers prefer to buy from socially responsible firms than from firms that avoid participation in socially significant programs.

History of the development of social responsibility

The socialization of business is an objective regularity of a transformational society. It is directly related to modern trends in the development of scientific and technological progress and the growing requirements for the process and results of production, as well as systemic transformations of property relations, the liberalization of economic relations, the processes of forming a social protection system, and the social functions of government bodies. Great hopes are pinned on the social role of business today.

Remark 1

In the 70s. 20th century corporate social responsibility has already begun to be seen as a company's contribution to society based on its production activities, social investment, philanthropy, and taking into account the priorities of state social policy.

Business social responsibility programs

As scientists emphasize, large companies are becoming a new center of power, from which society expects such a performance of social functions that could be compared with the amount of its resources. Among the most frequently cited benefits of implementing corporate social responsibility (BSR) programs for the image of the enterprise are:

1. Improving the efficiency of production processes due to the need to find, for example, hidden levers; the invention of ways to reduce emissions into the atmosphere or adapt production to technological, sanitary, environmental standards;
2. Increasing the motivation and productivity of employees, since all employees of the company are simultaneously citizens, consumers, parents and residents of a particular city, care for society, for society, is translated into care for employees.
3. Psychological factors of motivation, concern for employees revolve around the formation of a stable socio-psychological climate in the organization, contributes to labor efficiency;
4. Increasing the business and public reputation of the company reduces the risks of possible loss of markets, improves access to new markets due to the better reputation of companies.

Remark 2

Improved corporate governance helps to improve access to capital, increase revenues and increase the productivity of the company. Investments in environmentally friendly technologies in the future return due to income growth.

The concept of "business ethics"

Recently, the so-called "ethical investment" has become widespread in the world. It provides that the choice of partners for cooperation is largely determined by ethical motives. For example:

• the investor does not associate his activities with companies that are characterized by unfair business practices that cause damage to society by offering low-quality or socially harmful products;
• negatively affect the environment, act in undesirable territories;
• engage in activities that are morally dubious, if, for example, they cooperate with dictatorial governments, conduct experiments on animals, oppose trade unions that exploit the imperfection of the legislation of countries, developing countries.

On the other hand, they can fundamentally choose as partners companies that solve social problems and directly or indirectly benefit society, develop ethical business strategies.

Saint Petersburg State University

Faculty of Philosophy

Department of Ethics

Business ethics and social responsibility

Graduation work of a student

Fourth year full-time

Gavrilova Kristina Igorevna

Scientific adviser:

Candidate of Philological Sciences, Associate Professor

Perov Vadim Yurievich

St. Petersburg

Introduction

We live in an era of innovation, the growth of free markets and the global economy. In the light of new technologies, the changing role of the state and the emergence of new players on the world stage, new opportunities, requirements and restrictions are emerging. That is why, under the influence of the market and society, the role and responsibility of business is increasingly growing. And while the goal of making a profit in business is clear and understandable, people no longer accept it as an excuse for ignoring norms, values, and standards of behavior. Modern businesses are expected to use public resources responsibly, acting not only for the benefit of their companies, but of society as a whole. By doing business responsibly, firms build the necessary social capital of trust and fairness.

Over the past decades, governments, international institutions, transnational organizations, trade unions and civil society have engaged in a dialogue about business responsibility. New standards and procedures are being formed in the world, and business expectations are emerging. Companies and markets that are not familiar with them or cannot build their future around them will not be able to participate as equals in the global dialogue and risk being left behind as the global market economy develops. Businesses around the world are creating and implementing business ethics programs to address legal, ethical and environmental issues. Such enterprises not only satisfy the needs of their employees, shareholders, communities, but also contribute to the economic well-being of their countries.

In this regard, over the past twenty years, the problems of business ethics have increasingly attracted the attention of researchers, managers and public figures. Mandatory ethics courses are taught in all leading business schools. Ethical judgment and reputation play an important role today in the conclusion of transactions, the choice of business partners, the application of regulatory sanctions, etc. A relatively new principle of modern business ethics is the principle of social responsibility.

The social responsibility of business is beginning to be actively and successfully implemented all over the world. Companies do not just solve the problems of society by investing in the development of education, medicine, science, production, supporting socially vulnerable groups and taking care of environmental measures - they receive certain benefits from this activity. In Western countries, the social responsibility of business functions as a stable social institution, it is rational and effective. Despite the fact that there is a steady interest in the phenomenon of corporate social responsibility in domestic science, there is still no consensus among Russian scientists regarding the main characteristics of corporate responsibility, factors and conditions for the development of corporate social responsibility, which was one of the reasons for this study.

In my opinion, the interdependence of society and business implies an objective choice of business in favor of a socially oriented and moral economic strategy. In addition, it is important to note that the fate of many people often depends on the actions of managers, on what decisions they make.

In the light of the above, the chosen topic of the thesis seems to me very relevant. The purpose of my research is to reveal the meaning of the concept of social responsibility in modern business, to consider the main controversial issues related to social responsibility, as well as the application of this principle in practice, using the example of codes of ethics and reports on corporate social responsibility.

The implementation of this goal involves the solution of the following tasks:

· To trace the history of the development of the concept of responsibility as a moral category;

· Define the concepts of "business ethics" and "social responsibility";

· Compare these two concepts;

· To analyze two approaches to the study of social responsibility of business on the example of the opinions of Milton Friedman and Michael Porter;

· Consider the arguments "for" and "against" social responsibility in business;

· Provide examples of corporations that have held different points of view on this issue;

· Provide an overview of the concept of sustainable development and compare it with the principle of social responsibility;

· Review the codes of ethics of TNK-BP and LUKOIL;

· Outline the main goals and significance of social reporting;

· Consider the basic principles of corporate responsibility reporting outlined in the GRI Sustainability Reporting Guidelines;

· Outline the prospects for the development of Russian business in the field of social reporting;

· Analyze the implementation of the principle of social responsibility in practice on the example of the report of the company "LUKOIL";

In the chapter "The Development of the Concepts of Business Ethics" and "Social Responsibility" I reviewed the history of the development of the concept of responsibility as a moral category. Thus, the first part of the chapter is essentially a generalization of theoretical material in its historical sequence. This chapter uses the works of such philosophers as Aristotle, Kant, Bentham and Mill, Weber, Nietzsche, Sartre, Jonas, Parsons, Lenk. In addition, in the first chapter, I gave a number of possible definitions of the concept of "business ethics", through the prism of which the problem will be considered, as well as the areas of its possible application and an analysis of how comparable the concepts of "business ethics" and "social responsibility" are.

In general, I would define business ethics as the scientific discipline that studies the application of ethical principles to business situations. The most pressing issue in business ethics is the question of the relationship between corporate and universal ethics, the social responsibility of business, the application of general ethical principles to specific situations. I also came to the conclusion that the concepts of "business ethics" and "social responsibility" correlate as general ethical foundations of business with a particular principle.

The second chapter, entitled "Business Social Responsibility and Controversial Motives", focuses on two main approaches to the study of social responsibility, as well as arguments for and against social responsibility in business.

Analysis of the literature allowed me to identify two main approaches to the study of this problem. So, according to the concept of M. Friedman, social responsibility leads away from the fundamental economic role of business. The representative of the second approach is M. Porter, who argues that there is a strong economic justification for the social responsibility of business, and corporations receive numerous benefits from working for a broader and longer perspective than their own momentary short-term profit. In theoretical and methodological terms, the author of the diploma shares the approaches to the study of the problem of corporate social responsibility, laid down in the works of M. Porter.

In the final chapter “Corporate reporting in the field of sustainable development”, I have made an attempt, synthesizing the conclusions of the previous chapters, to give an overview of the concept of sustainable development and compare it with the principle of social responsibility, set out the main goals and significance of social reporting, consider ethical codes of companies, and also analyze the report on corporate social responsibility of OAO LUKOIL.

In the course of writing this chapter, I have come to the conclusion that sustainable development is a process of change in which the exploitation of natural resources, the direction of investment, the orientation of scientific and technological development, the development of the individual, and institutional change are aligned with each other and strengthen the current and future potential to meet human needs and aspirations. It includes consideration of economic, environmental and social factors, as well as their relationship in the organization's management decisions and activities in general. Social responsibility is closely related to sustainable development, as the overall goal of a socially responsible organization should be to contribute to sustainable development.

In addition, I came to the conclusion that the corporate social report is a tool for informing shareholders, employees, partners, customers, society about how and at what pace the company is implementing the goals set out in its strategic development plans regarding economic sustainability, social well-being and environmental stability. Moreover, such reporting, other things being equal, is regarded as a competitive advantage and is of great importance for the company's business reputation. I reviewed the GRI Sustainability Reporting Guidelines in more detail. This system is by far the most used in the world in the preparation of non-financial reports.

In the course of my analysis, I also came to the conclusion that the codes of TNK-BP and LUKOIL, which include specific obligations of the company in relation to its employees, investors, customers and voluntary initiatives in the field of charity, look very solid, declare quite sound and feasible on practice, the purpose of the activity and correspond to the level of similar codes of large foreign oil companies.

After analyzing the corporate responsibility report of OAO LUKOIL, I can also conclude that this is a good non-financial report that corresponds to the C+ level of the GRI classification. It contains information that allows assessing the quantity and quality of the organization's intangible assets, its capabilities, potential and management features. Information about approaches in the field of management is described in three components: economic, environmental and social activities.

The work consists of 3 chapters, 8 paragraphs, Introduction, Conclusion and References of 50 titles.

The general philosophical basis for studying the phenomenon of responsibility was the works of Aristotle, I. Kant, I. Bentham, J. Mill, M. Weber, F. Nietzsche, H. Jonas and others. responsibility of business, such as K.Homann, F.Blome-Drez, T.A.Aleksina, D.J.Fritzsche, R.De George, M.L.Luchko, V.G.Makeeva, V.N. Nazarov and others, as well as Internet resources.

Chapter 1. Development of the concepts of business ethics and social responsibility

1.1 The history of the development of the concept of responsibility as a moral category

I would like to start with the fact that the significance of responsibility as a socio-philosophical category was determined relatively late. X. Jonas explains this by the fact that the measure of responsibility corresponds to the measure of power and knowledge, and they were limited in the pre-industrial era. As a result, the question of the consequences of actions was resolved in a "natural" way - as these consequences occurred. From the standpoint of classical philosophy, responsibility was studied mainly indirectly - through such ethical categories as morality (morality), duty, good and evil, freedom and necessity.

Aristotle is the author of the aretological concept of responsibility, according to which due is paid to both the benevolent and the malevolent. Aristotle does not use the special concept of "responsibility", but, describing certain aspects of arbitrariness and guilt, he quite fully reveals the phenomenology of responsibility. A person has the power to perform both beautiful and shameful deeds, it depends on him what kind of deeds he performs, according to his will a person is just or unjust, and in accordance with the deeds he is honored or punished by the court. Responsibility, therefore, implies that a person is aware of the conditions of action and the requirements that are placed on him.

Immanuel Kant is one of the first thinkers who already in the XIIIV century used the categories “responsible” and “responsibility”, the meaning of which he defined as following the categorical imperative and the absolute moral law.

The most prominent representatives of utilitarianism, J. Bentham and J. S. Mill, believed that the criterion of rationality is “benefit” for the object of responsibility.

In the XIX - XX centuries. responsibility is considered directly - as a problem of imputation. Here we can turn to the conceptualizations of responsibility by M. Weber and F. Nietzsche - it was these thinkers who formulated the most important ideas regarding the origin of responsibility and the principle of responsibility. Their approaches to understanding responsibility differ in the degree of subjectivity. Unlike Nietzsche, M. Weber did not consider responsibility a subjective construct. He emphasized the historical transformation of man's responsibility to God into a secular form of man's responsibility for his own decisions, justified only by individual conscience.

J.-P. Sartre argued that "our responsibility is much greater than we might imagine, since it extends to all of humanity ...". Acting in a certain way, a person thereby, as it were, chooses in himself a person who strives to fulfill his duty to the end, or to prove himself as a completely free person. Moreover, the feeling of full and deep responsibility, according to J.P. Sartre, is the result of a person's awareness that, making a choice, he chooses the whole of humanity along with himself.

In the 60-70s of the XX century. the ethics of responsibility is put forward as an independent part of ethics thanks to the work of Hans Lenk. He defines responsibility as a concept that is expressed in the relational imputation of the norm through the evaluation of controlled expected actions. An analysis of the problems associated with attribution (attribution) and the measure of responsibility is contained in the work Reflections on Modern Technology.

Hans Jonas expounded his views on this issue in his famous work The Principle of Responsibility. Experience of Ethics for the Technological Situation”.

According to Jonas, in connection with the possibility of future man-made disasters, traditional ethics has exhausted itself and a new ethics is needed, based on the principle of responsibility. All ethical concepts must be replaced by an ethics of responsibility. Responsibility is the central concept of modern ethics.

Jonas identifies two types of responsibility:

natural (vocation), which is an integral prescribed status;

contracture (duty), i.e. achieved social status of the individual

The reasons for the emergence of the "ethics of responsibility":

· The immeasurably increased technological power of man (ecology, dependence on technology);

· "Dynamization" of life circumstances in the industrial world (modern man does not have time to think);

· Threat to nature and living things (including man himself) due to side effects of industrial processes.

That is why, according to Jonas, it is necessary to reconsider the concept of "responsibility". He puts forward the idea of ​​expansion from the moral grounds of the concept of responsibility by transition:

· From the concept of responsibility of the perpetrator to the responsibility of the "human guardian" ("ethics of care");

From calling for responsibility ex post (“after that”) to concern for responsibility and preventive responsibility (precaution responsibility);

· From past-oriented responsibility for the result of action to future-oriented self-responsibility, which is determined by the ability to control and the ability to wield power.

Thus, the main ideas of G. Jonas can be briefly formulated in the following paragraphs:

· “Responsibility for the future” (industrial enterprises are the main source of pollution);

· Responsibility “for”, not “before” (area of ​​responsibility);

Not just accountability (but responsibility to everyone);

· Self-accepted responsibility as a universal duty.

Responsibility acquires a special sound in the middle of the 20th century, when the result of economic activity is not only material goods consumed by individuals, but also the essential features of the socio-economic structure of society, “consumed” by society as a whole. To realize the priority of the interests of society as a whole, the problem of the stability of social systems, their integration and stability, developed by T. Parsons, was of particular importance.

By the end of the 20th century, the category of responsibility began to be replaced by such concepts as "local determination" (J.-F. Lyotard), "temptation" (J. Baudrillard), "self-care" (M. Foucault). F. Fukuyama put forward the idea of ​​"the end of history" and "the last man", for whom responsibility disappears altogether.

In the XX century. comprehension of responsibility as a fundamental principle of human action leads to the understanding that not only an individual, but a social group, community, class can “be responsible”. A new category is emerging - "social responsibility", implemented both through forms of social control and through the understanding of their social role by the subjects of responsibility. Social responsibility is attributed not to a single individual, but to an individual as a representative of a social community.

The approach, which is based on the priority not of private interests, but of the whole, is reflected in the concept of social responsibility of business. It is based on the fact that the contradiction between the private interests of business (profit, profit) and the interests of society (stability, successful development for the majority) should be resolved by business in favor of society as a system of which business itself is a part. The main provisions of this concept developed in the 30s of the XX century.

Levels of social responsibility of business:

1. Basic level (“legality”): compliance with legislation and standards, timely payment of taxes, payment of wages, ensuring labor safety, and, if possible, creating new jobs.

2. The second level is to provide workers with adequate conditions not only for work, but also for life: improving the skills of workers, preventive treatment, housing construction, development of the social sphere, etc. (creation of social capital).

3. The third, highest level of business social responsibility is charitable activities and patronage, social marketing programs, sponsorship, philanthropy, etc. plus socially significant programs.

It is about the main problems associated with the concept of social responsibility of business that will be discussed in the second chapter of my work.

1.2 Definitions and comparison of the concepts of "social responsibility" and "business ethics"

Perhaps today it is difficult to find a more fashionable word among domestic entrepreneurs than "business ethics", and most recently the word "social responsibility" has been added to it. In this paragraph, I will try to understand what they mean and how they differ.

As you know, there is a universal ethics as a system of norms of moral behavior of people, their relationship to each other and to society as a whole. But along with this, some areas of professional activity have developed their own specific ethics.

To begin with, let's define the very concept of "business ethics", or "business ethics". Professor P.V. Malinovsky interprets this term in this way:

“Business ethics in a broad sense is a set of ethical principles and norms that should guide the activities of organizations and their members in the field of management and entrepreneurship. It covers phenomena of various orders: ethical assessment of both the internal and external policies of the organization as a whole; the moral principles of the members of the organization, i.e. professional morality; moral climate in the organization; patterns of moral behavior; norms of business etiquette - ritualized external norms of behavior ".

Thus, business ethics is one of the types of professional ethics - it is the ethics of people working in the field of entrepreneurship. When they talk about the business ethics of any companies, they mean the ethical foundations of business, implemented through managers. Under the business culture of the company refers to intra-company traditions and rituals; common values ​​shared by its employees; communication system, including informal relations; established methods of business practice and organization of work. The business culture of the company is closely related to the ethical principles of business, which are its integral elements.

Thus, we can conclude that business ethics is a system of general principles and rules of conduct for business entities, their communication and work style, manifested at the micro and macro levels of market relations. The basis of business ethics is the doctrine of the role of morality and morality in business relations, which reflect the material conditions of society.

Business ethics is also a system of knowledge about labor and professional morality, its history and practice. This is a system of knowledge about how people are accustomed to treating their work, what meaning they give to it, what place it occupies in their lives, how relationships develop between people in the process of work, how the inclinations and ideals of people ensure effective work, and which ones hinder to him.

Business ethics regulates, inspires and at the same time limits the actions of business entities, minimizing intra-group contradictions, subordinating individual interests to group ones.

There are several related concepts. For example, economic ethics (or entrepreneurial ethics) deals with the question of what moral norms or ideals might be relevant to entrepreneurs in a modern market economy.

Entrepreneurial ethics timatises the relationship of morality and profit in the management of entrepreneurs and deals with the question of how moral norms and ideals can be implemented by entrepreneurs in a modern economy.

The purpose of entrepreneurial activity is profit maximization.

The principles of ethics of business relations are a generalized expression of moral requirements developed in the moral consciousness of society, which indicate the necessary behavior of participants in business relations.

In general, business ethics can be defined as the scientific discipline that studies the application of ethical principles to business situations. The most pressing issue in business ethics is the question of the relationship between corporate and universal ethics, the social responsibility of business, the application of general ethical principles to specific situations.

Business ethics, in that part of it that considers the question of the compliance of the entrepreneur's activity with the framework order or the problem of perfection of the framework order itself, the degree of responsibility of the entrepreneur to society, etc., can be considered as part of social ethics.

Business ethics, in the part that discusses the practical issues of the behavior of leaders and managers, relations between company employees, consumer rights, moral standards and value conflicts, is one of the types of professional ethics.

At the macro level, business ethics refers to the ethics of the social order.

At the micro level, it is the doctrine of the goals, values ​​and rules of entrepreneurial activity.

So, modern business ethics is based on the mutual agreement of three major provisions:

1. Creation of material values ​​in all variety of forms is considered as an initially important process.

This is what every business is for.

2. Profit and other incomes are considered as the result of the achievement of various socially significant goals.

3. Priority in resolving problems arising in the business world should be given to the interests of interpersonal relationships, and not to production.

In turn, De George identifies the following levels of analysis of business ethics:

1. If we consider business ethics in the American context, it focuses on the macro level mainly on the moral assessment of the American free enterprise economic system and its possible alternatives and modifications.

2. The second level of ethical analysis - and today it attracts the closest attention - is the study of business within the American free enterprise system.

3. The moral assessment of individuals and their actions in economic and commercial transactions within the framework of organized corporate activity forms the third level of business ethics research.

4. Finally, as business becomes more and more international and global, the fourth level of analysis of its ethics is international in nature and considers the activities of American and other transnational corporations.

Thus, I came to the final conclusion that business ethics encompasses five activities:

The first is the application of the principles of general ethics to specific situations or business practices.

The second type of her studies is metaethics, which deals with the consistency of ethical concepts.

The third area of ​​business ethics research is formed by the analysis of its initial premises - both moral ones proper and premises based on moral positions.

Fourth, wedged external issues sometimes force researchers of business ethics to go beyond ethics and turn to other branches of philosophy and other branches of science, for example, to economics or organization theory.

The fifth is to characterize morally laudable and exemplary actions, both of individual business people and specific firms.

In conclusion, I would like to outline the importance of business ethics in the modern world. So, business ethics can help people:

· to consider moral problems in business in a systematic and more reliable way than they could do it without using our science;

· it can help them to see problems that they would not notice in their daily practice;

· She can also encourage them to make changes that they wouldn't have thought to make without her.

In my opinion, it is very important that the concept of "business ethics" is applicable both to an individual manager or entrepreneur, and to the company as a whole. And if for a businessman it means his professional ethics, then for a company it is a kind of code of honor that underlies its activities. The main principles of business ethics include, first of all, such traditional values ​​developed over the long history of global business as respect for the law, honesty, loyalty to the word and the concluded agreement, reliability and mutual trust. A relatively new principle of modern business ethics is the principle of social responsibility, which began to be seriously thought about in the West only a couple of decades ago, and in Russia not so long ago at all. All these principles should underlie all types of business relationships.

In order for the company's behavior to be recognized as socially responsible, i.e. ethical in the modern sense, it is not enough just to comply with the law or be honest with consumers or business partners. If legal responsibility is the norms and rules of behavior defined by law, then social responsibility (also called corporate social responsibility, responsible business and corporate social opportunities) means following the spirit, not the letter of the law, or the implementation of such norms that have not yet been included the law or exceed the requirements of the law.

There is no generally accepted definition of the social responsibility of business in international practice, which gives reason to understand the term "social responsibility of business" to each in his own way.

The social responsibility of business means charity, philanthropy, corporate social responsibility, social marketing programs, sponsorship, philanthropy, etc.

Summarizing, we can say that the social responsibility of business is the impact of business on society, the responsibility of those who make business decisions to those who are directly or indirectly affected by these decisions.

This definition of the social responsibility of business is rather ideal, and cannot be fully translated into reality, if only because it is simply impossible to calculate all the consequences of one decision. But, in my opinion, the social responsibility of business is not a rule, but an ethical principle that should be involved in the decision-making process.

Thus, we can conclude that the concepts of "business ethics" and "social responsibility" correlate as general ethical foundations of business with a particular principle.

At the beginning of the twentieth century. the first attempts to show social responsibility in business can be called charitable activities. For example, John D. Rockefeller donated $550 million to various charitable causes and founded the Rockefeller Foundation. The head of the American corporation Sears Robert E. Wood in 1936. talked about social obligations that cannot be expressed mathematically, but can be considered, nevertheless, of paramount importance. He was referring to the influence that society has on an organization operating in a market economy. One of the first Western entrepreneurs, Sears recognized the “multi-layered general public” that the company serves, highlighting not only such a group as shareholders, the relationship with which was traditionally important for any company, but also consumers, employees themselves and local communities. He was also a supporter of solving social problems not only by the state, but also by the management of corporations. However, Sears acknowledged that it was difficult to quantify the costs and benefits of corporate social responsibility to society. His views did not receive wide support, in particular, because in the 30s. 20th century - the years of the Great Depression - all sectors of society faced the urgent issue of survival, and business was expected above all to profit.

The controversial motives associated with the concept of social responsibility of business will be discussed in the second chapter of my work.

So, some entrepreneurs believed that wealth obliges, i.e. we need to share it with our neighbors, and we spent a lot of money on charity, directed, among other things, to our employees. For example, George Cadbury, the founder of a food production company of the same name, paid various benefits to his employees at the beginning of the last century (for example, according to ability to work). William Lever, the founder of the now world-famous Unilever, did the same.

Entrepreneurs who were engaged in charitable activities, in fact, became the founders of the idea of ​​​​individual charity and business responsibility.

Chapter 2. Social responsibility of business and controversial motives

As discussed in the previous chapter, business social responsibility is the concept that organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, local communities and other stakeholders, and on the environment. This obligation goes beyond the statutory obligation to comply with the law and involves organizations voluntarily taking additional steps to improve the quality of life of workers and their families, as well as the local community and society at large.

The practice of corporate social responsibility is the subject of much debate and criticism. Defenders argue that there is a strong business case for it, and corporations reap numerous benefits from operating for a broader and longer term than their own immediate short-term profits. Critics argue that social responsibility detracts from the fundamental economic role of business; some argue that this is nothing more than an embellishment of reality; others say it is an attempt to replace the role of governments as controllers of powerful multinational corporations. This discussion is the subject of a separate part of my work.

2.1 Two approaches to studying the social responsibility of business

The practice of corporate social responsibility is the subject of much debate and criticism. Defenders argue that there is a strong business case for it, and corporations reap numerous benefits from operating for a broader and longer term than their own immediate short-term profits. Critics argue that social responsibility detracts from the fundamental economic role of business.

Thus, there are two main approaches to studying the social responsibility of business. On the one hand, this is the concept of M. Friedman, which are based on formal (instrumental) rationality. On the other hand, representatives of the second approach are researchers based on substantive rationality. They recognize that the social responsibility of business is complex and cannot be reduced to pure economic interest.

Before dwelling in more detail on these two opposite approaches to the study of corporate responsibility, I would like to note that the leaders and managers of modern companies are increasingly aware of the positive impact of socially responsible behavior on achieving not only the strategic, but also the financial goals of their business.

Milton Friedman is against social responsibility in business.

Nobel Prize winner, monetarist advocate Milton Friedman, in one of his articles, sets out the following view of business responsibility:

“When I hear businessmen talking emphatically about the ‘social responsibility of business in a market economy’, I involuntarily recall a story about a Frenchman who, at the age of 70, suddenly discovered that he had been speaking prose all his life. Businessmen believe that they are defending the market economy when, not without pathos, they assert that business is connected not only with making a profit, but also with the achievement of certain social results, that business has a special “social conscience”, and that it is responsible for employment, elimination of discrimination, prevention of environmental pollution and anything else that is in the lexicon of the current generation of reformers. They are actually preaching - or would be preaching if they themselves or anyone else took it seriously - pure and undisguised socialism. Businessmen who think this way are puppets of the forces that have undermined the foundations of a free society over the past decades.”

Friedman then goes on to define the very concept of "social responsibility". He argues as follows: “In a market economy system based on private property, the manager of a corporation is an employee in relation to the owners of the business. He is directly responsible to the owners and his employers. This responsibility lies in doing business in accordance with their desires, which, generally speaking, can be reduced to obtaining the maximum possible profit within the accepted rules in society, enshrined in laws or ethical standards. Of course, it may happen that his employers do not share this goal. A group of people can set up a company for charitable purposes, such as a hospital or a school. The manager of such a corporation will have as a goal not the receipt of monetary profits, but the provision of certain services.

In any case, the key point is that in his position as the manager of a corporation, he is the spokesman for the interests of those who own the corporation or set it up for charitable purposes, and his primary responsibility is to them.

In each of these cases, the manager will spend someone else's money in the name of the general public interest. As soon as his actions, carried out for reasons of "social responsibility", reduce the income of shareholders, he spends their money. As soon as his actions lead to higher prices for consumers, he spends consumers' money. As soon as his actions reduce the salaries of some employees, he spends their money.

Shareholders, consumers and employees could manage their money as they wished. The manager acts more out of "social responsibility" than acts as a spokesman for the interests of the same shareholders, consumers, or employees if he spends their money differently than they would do it themselves.

It is impossible not to agree that it is extremely difficult to choose areas for the manifestation of social responsibility of companies. In addition, according to Friedman, the manager of a corporation becomes a public employee, a servant of society, although formally he remains an employee of the private sector.

Milton Friedman's ideas may appeal to some entrepreneurs. But his arguments sometimes work against his own concept of a kind of social indifference. For example, the author himself advocates compliance not only with laws, but also with ethical standards, but does not consider this a manifestation of social responsibility.

Most likely, Friedman means under the social responsibility of the company, first of all, charitable programs, which, in his opinion, should be implemented either by individuals or public organizations.

Friedman also argues that the manager is not a public servant. As for serving the community, the big Japanese businessman Kazuma Tateishi has written well about it. He argues that the very growth of a company should be understood as an increase in opportunities to contribute to the development of society.

It turns out that all the main groups of its stakeholders are interested in expanding the company's activities: its employees, consumers of branded products, shareholders, the local population, and business partners, whose activities, other things being equal, will also develop successfully in parallel with the development of the key company. And Kazuma Tateishi writes that in a concentrated form the idea of ​​service to society finds its expression in the following postulate: the one who best serves society wins the most. If a company is not capable of serving society in its most perfect form, then it does not deserve the right to exist. And it would only be fair to liquidate such companies. On the other hand, those companies that best serve society deserve "oxygen" for their growth and every possible encouragement.

Michael Porter: Why it pays to be socially responsible.

Not everyone agrees with the views of M. Friedman, both among scientists and entrepreneurs themselves. In recent years, social responsibility in business has come to be explicitly referred to as the “social advantage” of a company. This idea was first proposed by Harvard Business School professor and author of the theory of competitive advantage Michael Porter in his 1999 article in the Harvard Business Review, Philanthropy's New Challenge - Creating Value.

Porter points out that social programs are used by companies today mainly as a form of "public relations" or for advertising purposes. For example, the tobacco company Philip Morris (USA) spent $75 million in 1999 on various donations, and then spent another $100 million on their advertising campaign.

According to the author, critics of the implementation of the principle of corporate social responsibility put forward two main arguments. First, the social and economic goals of the company are clearly different from each other, so spending on social programs is a cost in terms of achieving economic results. Second, companies that are engaged in social projects do not bring more public benefit than individual donors. These statements are true if social corporate programs are fragmented and unfocused, which is typical for many companies. However, there is another way to implement socially responsible business: companies can strengthen their competitive positions by improving the quality of the business environment in the places where they operate. As M. Porter notes, the use of philanthropy as a company's competitive advantage makes it possible to link social and economic goals and improve the long-term prospects for its development.

A study of the practice of companies that implement their social projects in the context of competitiveness indicates that both economic and social goals are achieved. In the long term, these goals do not contradict each other, but are closely interrelated. This does not mean that every investment a company makes will bring social benefits, or that every social project will improve its competitiveness. Most of the investments have positive consequences only for business, and various kinds of donations - only for society. However, there is an area where "convergence of interests" occurs. In this case, the social activity of the company becomes truly strategic.

The problem of "strategic philanthropy," as Porter called it, lies in the early nineteenth century. in determining in which areas it is necessary to focus its social activities in order to improve the competitiveness of the company and how to do this effectively.

Unfortunately, it should be noted that the management approaches of most modern corporations, including transnational ones, have not yet changed much in accordance with new ideas.

An example of a social program implemented within the framework of old approaches is one of the projects of Avon Products (cosmetics). In 2002, 400,000 people were involved in a door-to-door campaign (when company representatives go from house to house) to raise funds to fund a breast cancer prevention program. A total of $32 million was collected. Despite the social significance of this project, it did not lead to an increase in the company's competitiveness, although it was aimed at the main category of its consumers - women. Trying to help the health of all women, and not just certain categories of consumers of Avon products, seems to be an attempt to solve a global problem, although it would be best to narrow the field of action and focus our social strategy.

A positive example is IBM, whose social activities are clearly strategically oriented. In particular, as early as 1994, an educational program for retraining in the field of computer technology began to be implemented, intended both for teachers and for schoolchildren and students. Working in close coordination with city schools, colleges and government education departments around the world, IBM employees organize teacher development and student learning and retraining. An independent examination showed that the level of computer training of schoolchildren and students has increased significantly.

The same approach is used by Johnson & Johnson.

It is important to understand that new approaches to the manifestation of social responsibility in business are not easy to implement in practice, they should not be considered by management as some short-term companies - they are designed for the long term and should gradually expand and develop. The more closely connected social responsibility in business is with the goals of achieving competitive advantages, the more social benefits will be received by the company's stakeholders. Thus, the new business paradigm proposed by M. Porter, in my opinion, can become the basis for the strategic management of both national and transnational corporations in the 21st century!

2.2 Arguments for and against social responsibility in business

In the social responsibility literature, there are different opinions about whether or not corporations should bear the burden of social responsibility.

Arguments for":

1. Expecting higher business profitability in the long run.

The image of a socially responsible company is an investment in its business reputation. Indeed, other things being equal, people are more willing to work for a socially responsible company than for a socially irresponsible one; buy its goods, services or shares. Suppliers and business partners will also be more interested in working with a firm with a high business reputation. Thus, in the long term, when the various groups of stakeholders are convinced of the correct behavior of the company, it is likely to increase its income.

2. Creating a more favorable business environment.

It is easier for socially responsible companies to expand their activities in an external environment that is not hostile to me, but benevolent.

3. Positive attitude on the part of state bodies.

The fact is that companies that behave as socially responsible economic entities have not only fewer claims from social regulatory authorities, but also some other benefits, such as participation in the execution of government orders.

4. Relationship between power and responsibility for power.

“In the long run, socially irresponsible use of one’s power inevitably leads to the loss of that power” (Iron Law of Responsibility).

5. Ability to prevent problems in the future.

It must be admitted that the socially responsible behavior of a company can allow it to be, as it were, one step ahead of those companies that follow only the letter, and not the spirit of the law. Thus, when legislation is changed in the direction of adopting more stringent standards for the quality of goods and services, or environmental pollution standards, or advertising rules, socially responsible companies are more prepared to implement them than their competitors, which gives them unconditional advantages.

6. The feeling of "ownership" of the employees of the company.

The awareness by the company's employees of their belonging to a socially responsible organization leads, as a rule, to the formation of a favorable climate in the team, additional labor motivation.

In foreign literature, there is an opinion that companies, especially large ones, have the necessary financial and other resources to implement social programs. This argument is put forward as an additional plus in favor of corporate social responsibility. It seems to me that this argument is incorrect, since the availability of funds does not mean that there is an incentive to spend them in one way or another.

Arguments against":

1. Violation of the principle of profit maximization.

The essence of this argument is that the direction of part of the profit for socially significant purposes reduces its volume, which violates the principle of profit maximization, which is fundamental in business. I note that in the short term, deductions from profits associated with the implementation of the principle of social responsibility in business really reduce the profits of the enterprise.

2. Increasing production costs.

The percentage of social burden in the price of a good or service is quite small, and the increase in costs due to this fact is greatly exaggerated.

3. Insufficiently effective system of social reporting.

Indeed, a company's financial statements are subject to close internal and external audits. Ethical or social audit began to develop not so long ago, even in Western corporations, not enough experience has been accumulated to form a clear system that takes into account all expenses and incomes in this area.

4. Difficulty in choosing priorities.

If, for example, the prices of a company's products are reduced, its consumers will be very happy, but its shareholders are unlikely to be happy if this is not followed by an increase in dividends. The installation of additional environmental protection equipment will certainly have a positive impact on the state of the environment and healthier people in specific regions, but it will increase production costs and, accordingly, prices for goods and services, etc.

5. Responsibility for making decisions in the field of social responsibility.

Typically, in large corporations, these issues are resolved by middle or senior managers, in family firms, by their owners.

6. The difficulty of constantly following the standards of "high" business ethics.

The public as a whole also becomes accustomed to a certain model of behavior of any company and reacts painfully to the lowering of its ethical bar.

7. Involvement in the "ethical race".

The bar of public expectations is rising higher, and in order to keep up with competitors, it is necessary to apply the same, or more effective, means to win the favor of their stakeholders.

Undoubtedly, being a socially responsible company at all times and in everything is not easy. For example, among the obstacles to socially oriented investment at the last World Economic Forum were, in particular, difficulties in defining the concept of corporate responsibility; lack of an effective business model linking investments in social projects and returns from them; lack of specialists in the field of business ethics and social responsibility (!); lack of a clear long-term strategy for companies; the payoff for social responsibility can take the form of lower wages, lower dividends, reduced investment in R&D departments, renewal and improvement of production facilities, reduction of accounts payable, and so on. In addition, the adoption of social responsibility can mislead the members of the organization regarding its main goals, etc. At the same time, pursuing only economic goals and observing the laws and norms of state regulation, the organization: a) satisfies consumer demand for goods and services; b) creates jobs; c) pays taxes; d) provides a certain level of return on capital (in the form of dividends); e) creates new social wealth and values. Thus, the organization is already involved in the closest social interaction and makes a certain contribution in the above areas.

Nevertheless, one must understand that being socially responsible in our time is not only fashionable, but also necessary to build an effective business model not for an hour or a year, but for a long time.

To show the difference between ethical and unethical behavior in practice, I will give two examples from the sphere of company relations with customers.

Johnson&Johnson Company (USA).

On September 30, 1982, three people in the Chicago area died from the cyanide contained in the Tylenol capsules they had used. The connection between the deaths of these people and the use of the capsules was established very quickly, and the authorities notified Johnson & Johnson, the manufacturer of Tylenol. As the number of deaths increased—it eventually reached seven—the firm faced a crisis and the prospect of total collapse. Tylenol, the most commonly used pain reliever, was Johnson & Johnson's single major new product, accounting for 7.4% of its revenue and 17 to 18% of its revenue.

Several company executives who had to decide how to respond to this case did not know whether the cyanide was introduced into the Tylenol vials during the manufacturing process or later, whether the reported deaths were isolated or only links in a long chain, whether these cases were limited only the Chicago area or they took place in other cities. The US Food and Drug Administration issued a warning about the dangers of Tylenol, but the government did not require the company to take any special action. Perhaps the deaths were only local in nature and their number will not go beyond the already known seven. Perhaps the authorities will not require the removal of the drug from sale. Perhaps a temporary suspension of sales until the true causes of deaths are clarified will be enough to prevent harm to people.

These assumptions were countered by quite certain prospects: withdrawing the drug from sale would mean a loss of up to $ 100 million for the company; sums insured will not cover this loss; the news of the drug being withdrawn from the market will cause such damage to its reputation that the company's leaders will no longer have the confidence that Tylenol will ever again be able to win the trust of consumers and regain the 37% market share it achieved; the news of the withdrawal of the drug from sale and the loss of the company will inevitably lead to a sharp drop in the price of its shares (in fact, it has already fallen by 15% in the first week of October); competition in the analgesic market is very strong, and Johnson & Johnson's competitors will try to turn the withdrawal from the sale of Tylenol to their advantage. These were the prospects, everything else is just guesswork and assumptions.

However, when faced with seven deaths and the possibility of new cases, Johnson & Johnson is known to have immediately ordered all Tylenol off the market. The company put the safety of consumers in the first place, i.e. acted as prescribed by the Creed proclaimed by her. The inevitable damage to the company, although very tangible and undesirable, was put in second place.

This incident has become a legend, and the company's reaction to it

Johnson & Johnson has become a textbook example of how to respond to a tragedy. The point is not only that the company's decision was quite correct from a moral point of view, but also that it masterfully coped with the consequences of the tragedy. She provided the general public with full information about what happened and within 18 months regained 96% of the previous market share.

James Burke, Chairman of the Board of Directors and Chief Executive Officer of Johnson & Johnson Corporation, who was later praised for his decision, commented on it as follows: firstly, it was in fact the only possible one from the standpoint of the company's Credo, and secondly, he was surprised that people might have expected a different solution from the company.

However, he was fully aware that not every company would have acted the way Johnson & Johnson did, although its decision was morally correct.

Thus, in this example, maximum efforts were made not to hide the poor quality of their goods, but to completely and as soon as possible declassify what happened. Despite the losses incurred, the company managed to maintain the main thing - its business reputation and the trust of customers, who highly appreciated the company's social responsibility. Guided by the rule “it is better to lose a little than to lose everything”, the company not only retained old customers, but also attracted new ones. By the way, a thorough independent medical examination after the seizure of the goods found that the death of consumers was not the fault of the company.

Despite the example set by Johnson & Johnson, a few years later, when a customer found a shard of pottery in a Gerber baby food can, the firm vehemently denied fault and refused to withdraw its products, as did a number of automotive companies in response to complaints about unsafe cars.

Firestone Company (USA).

There have been many complaints from consumers about car tires from this company. Due to defective tires, 34 people died and 50 were injured. Representatives of the company insisted that the causes of the incidents were the careless behavior of drivers, and not the quality of the tires. But even after that, the company tried to obtain an injunction against the publication of the report prepared by the National Office. As a result, at the request of state authorities, the company was forced to return 13 million of its products from the distribution network, and its actions received a negative public assessment.

The above examples vividly illustrated two possible approaches for companies to conduct their business and showed that a socially responsible business is a profitable business. In my final chapter, I will try to consider how the principle of social responsibility is implemented in practice in the conditions of modern Russian reality.

Chapter 3. Corporate Sustainability Reporting

social responsibility ethics business

3.1 Corporate Social Responsibility and Sustainability

At the turn of the XX-XXI centuries, the generally recognized goal for the entire world community, individual countries, regions, cities, enterprises and corporations was the movement towards "sustainable development" (eng. sustainable development), which refers to the preservation of the environment and the saving of natural resources in unity with social and economic well-being for present and future generations. At the company level, the concept of sustainable development actually coincides with the implementation of the concept of corporate social responsibility.

The principle of sustainable development was first mentioned in the 1987 report "Our Common Future" and was called "a global agenda for change". The goals of this program are the eradication of poverty, health care for all, as well as meeting the needs of society in a planetary ecological space.

In a general definition of the concept of sustainable development, it is a process of change in which the exploitation of natural resources, the direction of investment, the orientation of scientific and technological development, the development of the individual and institutional changes are aligned with each other and strengthen the current and future capacity to meet human needs and aspirations. Here, in many ways, we are talking about ensuring the quality of life of people.

The concept of sustainable development emerged as a result of combining three main points of view: economic, social and environmental.

1. Economic component.

The economic approach to the concept of sustainable development implies the optimal use of limited resources and the use of environmentally friendly environmental, energy, and material-saving technologies, including the extraction and processing of raw materials, the creation of environmentally friendly products, the minimization, processing and destruction of waste. However, when deciding what capital should be retained and to what extent different types of capital are substitutable, problems of correct interpretation and calculation arise. Two types of stability have appeared - weak, when it comes to natural and produced capital that does not decrease in time, and strong, when natural capital should not decrease.

2. social component.

The social component of development sustainability is human-oriented and aimed at maintaining the stability of social and cultural systems, including reducing the number of destructive conflicts between people. An important aspect of this approach is the fair sharing of benefits. It is also desirable to preserve cultural capital and diversity on a global scale, as well as to make fuller use of sustainable development practices found in non-dominant cultures. To achieve sustainable development, modern society will have to create a more efficient decision-making system that takes into account historical experience and encourages pluralism. Within the framework of the concept of human development, a person is not an object, but a subject of development. Based on the expansion of options for choosing a person as the main value, the concept of sustainable development implies that a person must participate in the processes that form the sphere of his life, facilitate the adoption and implementation of decisions, control their implementation.

3. Environmental component.

From an ecological point of view, sustainable development must ensure the integrity of biological and physical natural systems. Of particular importance is the viability of ecosystems, on which the global stability of the entire biosphere depends. Moreover, the concept of "natural" systems and habitats can be understood broadly to include human-made environments, such as, for example, cities. The focus is on maintaining the self-healing capabilities and dynamic adaptation of such systems to change rather than keeping them in some "ideal" static state. Degradation of natural resources, pollution and loss of biodiversity reduce the ability of ecological systems to self-heal.

In my opinion, reconciling these different points of view and translating them into concrete actions as a means of achieving sustainable development is a task of great difficulty, since all three elements of sustainable development must be considered in a balanced way. The mechanisms of interaction between these three concepts are also important.

Modern business is faced with the task of securing a strong position in the domestic and foreign economy, which creates the basis for sustainable development. In the context of globalization and open markets, such opportunities largely depend on the level of competitiveness of companies. Competitiveness today is determined by the efficiency of using not only production assets and financial resources, but also the intangible assets of companies, the quality of non-financial risk management.

As already mentioned, the activities reflected by non-financial indicators reflect a wide range of issues, among them:

Quality management;

Ethics of business conduct;

The structure and effectiveness of social investments related to the development of personnel, maintaining health at the workplace, and creating a favorable environment in the areas of presence.

These factors determine the public image of the company, and increasingly influence the formation of its business reputation, which has quite definite economic consequences.

Large companies are the first to face this problem and realize it, but in the current conditions of business development it becomes relevant for many of its representatives who seek to strengthen their positions in the market and have real prospects for the future. This creates favorable conditions for the implementation of long-term business development strategies based on maintaining a balance of interests of all stakeholders.

I cannot fail to note that sustainable development is a concept that is fundamentally different from the concept of sustainability or viability of an individual organization. Sustainable development refers to methods of meeting the needs of society. The resilience of an individual organization may or may not be consistent with sustainable development, depending on how the organization is managed and operates.

Comparing the principles of sustainable development and social responsibility, I can say that social responsibility has much more modest goals, and is aimed at specific organizations, and not the entire globe. However, social responsibility is closely related to sustainable development, as The overall goal of a socially responsible organization should be to contribute to sustainable development. An organization's responsibility for the impact its decisions and activities have on society and the environment is manifested through transparency and ethical conduct, which in turn:

promote sustainable development, health and welfare of society;

take into account the expectations of all stakeholders;

· comply with the requirements of the legislation and international standards of conduct; and

integrated into all areas of the organization and are used in the process of interaction with the external environment.

So, we can briefly summarize what advantages a socially responsible company operating in accordance with the principle of sustainable development has over other companies. The responsibility of an organization allows it to:

Demonstrate to all stakeholders the commitment of the organization's management to the requirements for social responsibility;

ensure compliance with legal requirements in the field of social responsibility;

Enhance and protect the company's image;

Enhance brand image;

integrate social responsibility management with existing management systems

manage risks arising in the social sphere;

improve working conditions, increase the interest of employees, the moral climate in the team;

· receive significant economic benefits from reducing the cost of paying fines for violations of legislation in the field of social responsibility;

· to attract new investments as a socially oriented company;

· gain free access to additional markets, the requirement for entry into which is an internationally recognized system of social responsibility;

· improve the company's relationship with the state, gain an advantage when participating in government projects;

Modern international standards of corporate social responsibility and non-financial reporting in the field of sustainable development provide for the principles and processes of effective and stable sustainable development. Thus, one of the most popular in the world and in Russia, the АА1000S standard thus represents a model of consistent and systematic interaction of a modern socially responsible company with its stakeholders.

Another international standard - the Global Sustainability Reporting Initiative, GRI - provides for a system of indicators in all areas of sustainable development in accordance with the concept of the "triple bottom line". Already the third generation of this G3 reporting standard (introduced at the end of 2006) includes 121 standard reporting elements, including 9 economic, 30 environmental and 40 social indicators, allowing primarily stakeholders, as well as the general public, to correctly assess the level of social responsibility one company or another.

More details about the GRI sustainable development standard will be discussed in the part of my work devoted to social reporting.

As of the middle of 2007, international reporting in the field of corporate social responsibility and sustainable development has already covered more than 3,900 leading companies in the world, including Russian companies. This process is actively supported by the RSPP, which has developed the Social Charter of Russian Business and also created a national register of non-financial reports of Russian companies. In addition, RSPP is the main "conduit" of the ideas of the UN Global Compact with its ten principles of responsible business conduct, which coincide with the fundamental elements of the concept of corporate social responsibility and the principles of international standards GRI and АА1000S.

In Russia, social responsibility is considered and used as an important area of ​​corporate activity by many companies. However, as a rule, corporate social responsibility is interpreted narrowly and unsystematically: as charity and sponsorship, as assistance to socially vulnerable groups in the regions of presence, as one-time support actions in the areas of culture, sports and education. It is no coincidence that CSR is an integral part of PR in most of these companies.

But over the past five years, a group of leading Russian companies has emerged that implement CSR in accordance with international standards, using it as the latest tool for managing capitalization and their non-financial risks in the corporate governance system. This group includes approximately seventy oil and gas, energy, metallurgical, chemical, pulp and paper and food companies, including LUKOIL, TNK-BP, etc.

The social responsibility of Russian companies is determined in accordance with legally stipulated and voluntary actions that are in a constant process of improvement. Here it seems to me appropriate to propose a new, more systematic definition of corporate social responsibility, emphasizing the specific and applied nature of this activity of companies. CSR is a system of consistent economic, environmental and social measures of the company, implemented on the basis of constant interaction with stakeholders and aimed at reducing non-financial risks, long-term improvement of the company's image and business reputation, as well as increasing capitalization and competitiveness, ensuring profitability and sustainable development of the enterprise .

Based on this understanding of corporate social responsibility, corporate governance is a system and process of relationships, as well as a set of principles, rules and procedures for interaction between the owners (shareholders) of a company, its board of directors, its management and other stakeholders within and in the external environment of the enterprise. The hierarchy of corporate social responsibility tools in corporate governance can then be represented as follows:

· Mission and values, Code of corporate ethics;

· Company strategy, including sustainable development goals (economic, environmental and social);

· The concept of non-financial risk management and interaction with stakeholders;

· Measures on CSR and sustainable development;

· Social (sustainable development) reporting;

· Communications (PR, Internet, cross-sectoral partnership).

Thus, in the course of writing this chapter, I came to the conclusion that sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It includes consideration of economic, environmental and social factors, as well as their relationship in the organization's management decisions and activities in general. Social responsibility is closely related to sustainable development, as The overall goal of a socially responsible organization should be to contribute to sustainable development.

3.2 Codes of conduct

As already mentioned in the previous paragraph, the mission and values ​​of the company, set out in ethical codes, play an important role in the hierarchy of corporate social responsibility tools. Their implementation also requires considerable material investments.

The approximate cost of the budget for social programs for large multinational companies is on average about 100-150 million dollars a year. For example, in recent years, IBM has been spending significant funds annually to support education, including higher education, in all regions of the world; for the supply of new technologies, computer equipment and software; provision of technical expertise, various kinds of services. In addition, the corporation allocates funds for programs for the development of healthcare, culture, environmental protection, etc. In the IBM code of ethics, one can read, in particular, that "no company can succeed if it is part of a dysfunctional society, and there can be no prosperous society if it lacks educated people" .

Code of Ethics TNK-BP

Having cited the ethical codes of foreign companies as an example, I cannot fail to mention Russian codes.

Consider the code of ethics of an oil company that was formed through the merger of the Russian Tyumen Oil Company and part of the assets of British Petroleum (BP). The TNK-BP Code was developed based on the business practices of its three predecessor companies, TNK, Sidanco and BP.

The preamble to the code states that TNK-BP expects all employees of the company, regardless of position and place of work, to be well aware of and comply with the provisions of this code. The code itself has been agreed upon and adjusted by the top management of the company and consists of three levels. At the first level, there are five Program Commitments that outline the strategic vision of the company.

The company's business practice includes five areas:

· Business ethics.

· Employees.

· Relationships with third parties.

· Occupational health, safety and environmental protection.

· Control and finance.

These program commitments are the foundation upon which TNK-BP will build and operate.

As part of the second level, the Company's Policies have been developed, which describe in more detail the ways of implementing program obligations. They set out a framework of acceptable practice for all areas of TNK-BP's activities, and also explain what can be expected from cooperation with TNK-BP; at the third level, protocols, operating procedures and instructions are presented, which, in particular, describe in detail the implementation of the Company's Policies.

Here are excerpts from the program commitments formulated in the TNK-BP code relating to business ethics, employees, labor protection, safety and environmental protection.

Business ethics.

TNK-BP operates on the basis of an impeccable reputation, respect for other cultures, dignity and human rights in all regions of the company's operations. In its activities, TNK-BP will:

1. strictly observe the legislation of the Russian Federation;

2. promise only what she is able to do, take on only those obligations that she will certainly fulfill;

3. not intentionally mislead anyone;

4. not condone corruption;

5. not engage in any unacceptable activities;

6. Avoid violence and never intentionally harm anyone.

The Company will require third parties acting on TNK-BP's behalf to comply with similar obligations.

Employees.

All employees and managers are required to use the company's assets only to strengthen and develop the company's business, not seeking personal gain through abusing their official position. TNK-BP respects the rights and dignity of all employees. TNK-BP recognizes and appreciates the contribution of all employees to building a strong and successful company. Combining the professional skills, abilities and creative potential of employees will allow the company to:

1. stimulate the emergence of new opportunities for business development;

2. create an inspiring working atmosphere in which each employee will feel responsible for the performance and reputation of the company;

3. to build a new corporate culture based on the solid foundation of the structures on the basis of which TNK-BP was created;

4. to create a working environment where mutual trust and respect will reign.

Employees have the right:

1. know your job responsibilities;

2. have an open and constructive discussion about the quality and effectiveness of their work;

3. receive assistance in the comprehensive development of their abilities and professional growth within the company;

4. receive recognition and appreciation of their services to the company;

5. make proposals aimed at improving the efficiency of the team;

6. count on the attention of the company to their personal circumstances in the performance of official duties.

Safety, Health and Environment.

All TNK-BP employees are responsible for meeting safety, health and environmental requirements in all regions where the company operates. Strict compliance with the requirements, safety, labor protection and working conditions of all employees of the company plays a key role in the success of its activities. The goals of TNK-BP in the field of safety, health protection and the environment are very clear - these are, first of all:

1. no accidents at work;

2. no accidents at work;

3. respect for the environment.

The Company will constantly strive to reduce the impact of production activities on the environment and the health of workers by reducing production waste, as well as economical use of energy. TNK-BP will produce quality products that are safe for consumers. It will comply with transport safety standards. All managers of the company will be responsible for achieving goals and meeting requirements in the field of safety, health and environment, clear distribution of roles and responsibilities, allocation of resources and taking the necessary measures, analysis and continuous improvement of safety, health and environmental practices in TNCs -VR.

Even from the above excerpts, it is clear that the TNK-BP code looks very solid, declares quite sound and practicable business goals and corresponds to the level of similar codes of large foreign oil companies.

LUKOIL Code.

In another major Russian oil company, LUKOIL, there is not an ethical, but a social code, which deals directly with the company's social responsibility. It is one of the most detailed and well developed codes of its kind. The preamble to the Social Code of OAO LUKOIL states that the company is a “responsible corporate member of society and a conscientious participant in the market economy. Combining these two missions, OAO LUKOIL (hereinafter - the company) voluntarily and on its own initiative assumes the following obligations for socially responsible behavior towards all parties whose interests are affected by the company's activities. The LUKOIL Social Code itself consists of three parts.

1. Corporate social guarantees for employees and non-working pensioners of the LUKOIL Group.

Socially responsible regulation of labor issues, employment and industrial relations, including the policy of remuneration and motivation of labor, labor safety, social policy in relation to young workers, health protection of workers and their families, housing policy, health insurance, pension policy and many other issues.

2. Socially responsible participation of the company in the life of society.

1) Development of single-production settlements.

2) Environmental activities.

3) Development of science, education, technology and innovation.

4) Preservation of national and cultural identity.

5) Support for culture and sports.

6) Assistance to social groups and public associations in need of support.

7) Charitable activities of the Company and employees.

3. Economic basis of social initiatives.

Control over social spending, forms of participation in the maintenance of social facilities, improving the efficiency of social services, socially responsible investment, etc.

Such a code, which includes specific obligations of the company in relation to its employees, investors, clients and voluntary initiatives in the field of charity, in my opinion, is quite worthy of the company itself. You can be sure that everything that is declared there is actually carried out.

3.3 Social reporting

No matter how plausible and solid the codes look, the main point of the socially responsible activity of companies is the social report.

Social reporting in the broadest sense is a company's reports that include information not only on the results of economic activity, but also on social and environmental indicators.

The corporate social report is a public tool for informing shareholders, employees, partners, customers, society about how and at what pace the company is implementing the goals set out in its strategic development plans regarding economic sustainability, social well-being and environmental stability.

This is especially important if we are talking about large corporations, city-forming enterprises or manufacturers with an extensive network of branches and divisions. The information contained in social reports testifies to the commitment of such companies to the concept of corporate responsibility, which includes caring not only for their employees, but also participation in the socio-economic development of the territory of their presence. Many companies treat such expenses as social investments aimed at improving the quality of life, improving the mechanisms of socio-economic development and increasing the competitiveness of regions, which creates favorable conditions for the development of the business of these organizations themselves.

A non-financial (social) report is one of the tools for improving the quality of corporate governance, including planning, monitoring and evaluating the company's activities. At the same time, it can serve as a means of increasing the transparency of the company's activities and improving the dialogue with social partners. Also, a social report is a way for a company to communicate with the outside world, it demonstrates the ability to see risks and take timely and adequate actions to reduce and prevent them.

The first social reports were made by European companies back in the 70s of the last century. Over the past forty years, the number of non-financial reports in different industries and countries has continued to grow.

Non-financial reporting has received the greatest distribution in Europe (the leader is Great Britain) and North America. And in Canada, this process was even more active than in the United States. In the Asian region, Japanese and South Korean companies have actively joined the reporting process. Australia is also active. Understanding that in the global economy to stay away from general processes is a sure way to loss of competitiveness, has significantly expanded the geography of non-financial (social) reporting. Russia has also joined this process.

A number of guidelines and reporting standards have been developed by leading experts in the field of social responsibility, which serve as the main principles of social accounting, auditing and reporting:

· AccountAbility Institute responsibility standard (Institute for Social and Ethical Accountability) АА100, based on John Elkington's triple bottom line reporting principle;

· Incorporation of a sustainability-related reporting system;

· Guidance on reporting on sustainable development of the Global Reporting Initiative;

· Verite Monitoring Guide;

· International standard of social responsibility SA8000;

· Green globe certification (standard);

· Environmental management standard ISO 14000;

· The UN Global Compact helps companies report in the Progress Report format. The progress report describes the company's implementation of the ten universal principles of the Treaty.

· The UN Intergovernmental Working Group of Experts on International Accounting and Reporting Standards provides voluntary technical guidance on economic performance measures, corporate responsibility reporting and corporate governance disclosures.

As for Russia, depending on the goals and development of companies, reporting on corporate social and environmental responsibility is carried out in our country in five main types:

a special section in the annual report;

· a social report that brings together all social, charitable and sponsorship projects of companies, compiled in a free and, as a rule, convenient form for companies, outside the format of international standards of corporate social responsibility;

· an environmental report describing the priorities and main directions of the company's environmental policy, the system of environmental management, monitoring and control, indicators and costs of environmental policy;

· a report on corporate social and environmental responsibility with partial application of the principles and indicators of international standards, including, along with a description of the mission, values ​​and strategic goals of the company, its social activities and projects implemented as a response to dialogues with stakeholders;

· a sustainability report prepared in accordance with the principles and performance indicators of the GRI Guidelines, AA 1000S standard and including all aspects of the company's social mission, its corporate strategy, culture, social and environmental policy.

In Russia, social and environmental reports are predominantly issued today. They come out in separate editions and are also published on the company's website. Due to the fact that the release of non-financial reports in our country is a voluntary initiative, companies independently determine which reporting systems and indicators to use. It can also be noted that the analysis of the reports carried out by the Department of Corporate Social Policy of the RSPP shows that in the reports of domestic companies much attention is paid to charity and sponsorship, issues of social and environmental policy, as well as territorial development programs.

GRI Sustainability Reporting Guidelines.

I would like to cite as a model that corporations can rely on when compiling their annual report on the work done in the field of social responsibility, the GRI Sustainability Reporting Guidelines.

This system is by far the most used in the world in the preparation of non-financial reports. GRI guidance helps the company to meaningfully analyze its contribution to the development of society. It is an internationally recognized system of reporting principles and indicators. Any company, regardless of size and type of activity, can use the GRI guidelines and combine it with other systems: AA 1000 and the global contract, which complement each other. The GRI methodology provides for several levels of reporting, which allow you to gradually implement the approaches laid down in it when preparing reports.

The GRI Guidelines consist of reporting principles, reporting guidelines, and standard reporting elements, including performance indicators. The main principle on which the GRI is based is the voluntary provision of information. In addition, principles are outlined for determining the content of the report and for ensuring its quality. According to the GRI methodology, the key principles for ensuring the quality of the information provided are comparability, balance, accuracy and clarity. Respect for materiality, completeness, comprehensive coverage of stakeholders, taking into account the context of sustainable development allows you to determine the content of the report.

According to the GRI guidelines, it is recommended to include information in the report according to the “three-one bottom line principle”, which implies the inclusion of information on the economy, ecology and the social sphere. For each of these components, a specific set of indicators is provided.

All indicators are subject to external verification and verification by auditors. However, the GRI does not restrict entities in this area, nor does it preclude the use of additional metrics at the discretion of the reporting entity.

I would like to draw attention to the fact that GRI does not strictly determine the scope and form of the report. The main thing is that it should use the performance indicators of the company. The organization has the right to determine the concept and structure of the report. Although, of course, it is necessary to take into account the standards of information disclosure, which affect the following aspects:

strategy and characteristics of the company;

· approaches to management;

performance indicators.

Very important, in my opinion, is that the report should not be a foreign document. It must be consistent with the strategic goals of the company, be included in corporate governance and consistent with its mission.

The GRI methodology provides for several levels of reporting, allowing you to gradually implement the approaches laid down in it when preparing reports. In order to meet the needs of both beginners and experienced organizations, as well as those in an intermediate phase, three levels of application of the guidance have been introduced: C, B and A. A report will be recognized as GRI compliant if the organization itself declares the level of application. At the same time, she can add a “+” sign to the selected level, which will indicate the use of external confirmation.

At each level, standard reporting elements are used differently. So, for example, information about management approaches is required only if levels B and A are met. Performance indicators for the initial level C are minimal compared to higher levels B and A. For levels C and B, it is enough to use information on 10 and 20 performance indicators, respectively. At the same time, a Level A report must disclose each of the main GRI indicators. The characteristics of the company at each next level also require more disclosure. If, for example, for level C, a minimum of information on the company's activities is acceptable, then for levels B and A this is no longer enough. Thus, we can conclude that the C and C+ levels indicate the initial degree of development of GRI reporting. B and B+, in turn, about developed and expanded reporting, and levels A and A+ indicate the inclusion of additional non-financial information in it. For example, the sustainability report of LUKOIL, which I will discuss in more detail in the next paragraph, corresponds to the C+ level. It highlights key operational and financial indicators, major events during the reporting period, describes strategic priorities and goals related to sustainable development, large-scale trends that have had an impact on the organization during the reporting period. In addition, the report examines the main risks from the company's activities that affect the development of society, and also describes the mechanisms for managing these risks. Information about approaches in the field of management is described in three components: economic, environmental and social activities. The report also describes the practice of the company's interaction with stakeholders. Of the indicators characterizing the company, those that show the scale of the organization are most fully disclosed. They are supplemented by information on the economic efficiency of the enterprise.

As for the information provided, the level of its disclosure is determined by the companies themselves. There is a choice here. As a result, the company can announce some indicators, but not others. This rule is very relevant in Russian conditions, when the disclosure of some information may lead to the danger of drawing excessive attention to the company from the regulatory authorities. Although, of course, for large organizations whose shares are listed on the world's leading stock exchanges, this is no longer relevant, since the existing procedure for listing the exchange provides for a list of data that must be disclosed. Such companies have already achieved a certain degree of transparency and are not intimidated by the prospect of non-financial reporting. Moreover, such reporting, other things being equal, is regarded as a competitive advantage and is of great importance for the business reputation of the company, the attitude of investors and analysts towards it.

Obviously, the preparation of non-financial reporting is of interest exclusively to large and medium-sized businesses, because for small firms it only entails additional troubles and costs. Such reporting can be used by enterprises of different turnover and areas of activity. However, its compilation is most relevant for large companies that occupy leadership positions in the industry. In almost all countries, they were the first to publish non-financial reports. If we talk about the sectoral structure, then the enterprises of the oil and gas industry, the metallurgical complex, the timber industry and the electric power industry are most actively involved in the reporting process. At the same time, the level of capitalization of the company and the market share that it occupies are not the main criteria for making a decision on the preparation of such reports. Each company independently evaluates and weighs all the advantages and disadvantages of such a project and makes its choice.

In the next paragraph of my work, I will consider the application of the principles of the Guidelines in practice using the example of the LUKOIL report.

3.4 Analysis of the report of OAO LUKOIL

The leading Russian oil company LUKOIL actively entered into this practice a few years ago by preparing a Sustainability Report for 2003-2004. Thus, in fact, for the first time in the country, the main principles and indicators of international standards АА1000 and the Global Reporting Initiative (GRI) Guidelines for Reporting in the Field of Sustainable Development were applied. This, according to the general public, has become an important milestone on the way to a new quality of corporate governance, an expression and confirmation of the company's responsibility in pursuing economic and social policy.

LUKOIL ranked first among Russian oil companies in the Corporate Responsibility Rating compiled by the Institute for Social and Ethical Accountability (Account Ability, UK).

Recently OAO LUKOIL has prepared and published the second Sustainability Report in the Russian Federation for 2005-2006. It is noteworthy that in the context of considering corporate cases, the company positions itself as an integral part of the country, and considers its interests and successes to be inseparable from the interests and successes of Russia as a whole. The huge responsibility that Russia has assumed for the stable supply of energy to other countries of the world, including half of Europe, the company perceives as its own responsibility.

To date, LUKOIL has issued the third Sustainability Report. When preparing the report, international documents are used - the AA1000 standard (1999) and the Guidelines for Reporting in the Field of Sustainable Development of the Global Reporting Initiative (GRI), version 3.0, the Global Compact and the Social Charter of Russian Business. The report is confirmed by an independent auditor - CJSC "Bureau Veritas Rus". The Company's report has been included in the GRI database, and is also included in the National Register of Corporate Non-Financial Reports, which is administered by the Russian Union of Industrialists and Entrepreneurs, and has been noted in Russian and international reviews and ratings. In addition, LUKOIL is included in the list of 100 largest companies in the world according to the international corporate social responsibility rating Accountability Rating and ranks 3rd in its Russian version. LUKOIL plans to issue such reports every two years and gradually introduce the principles of sustainable development into its daily practice.

The content of the report is presented in four sections: “OJSC LUKOIL's activity”; "Socio-economic partnership and sustainable development of Russian regions"; "Social politics"; "Responsibility for the environment". The consistency, completeness and reliability of the presentation of the material will allow not only me, as a narrow specialist, but any interested reader to easily find, evaluate, analyze materials related to large-scale practical activities in the oil and gas business.

The company's goal is a dynamic, sustainable development that will turn it into one of the leaders in the global oil and gas business. It is important to note that the company is not moving towards its goal in any way: there is clearness in the means and methods used. They a priori fit into the mainstream, determined by the principles of national orientation and social responsibility. The foregoing is very intelligibly illustrated by the company's strict compliance with laws on the payment of taxes to budgets of various levels, and considerable taxes at that.

Through the report, the idea is consistently conveyed that all corporate activities are deployed in accordance with the conviction that the main competitive advantage in the 21st century has become the possession of not cheap material resources, but intellectual and scientific potential. True professionals are actively involved in the company, the personnel motivation system is aimed at achieving the personal interest of employees not only in improving the efficiency of their enterprise, but also in the steady expansion of its capabilities, in constant development.

An unbiased eye will certainly find in the report a lot of confirmation of the company's real responsibility to society, responsibility for the proper maintenance of the living environment shared with it. Here and special attention to the issues of nature protection, increasing the level of utilization of associated gas. This includes the use of "zero discharge" technology when working on the shelf, the reduction of harmful emissions into the atmosphere during oil refining, the transition to European fuel quality standards.

The consulting support of the Agency for Social Information helped in many ways to maintain the required quality in the preparation of the report. The clarity of the company's transparent reporting was noted by experts. Thus, the veracity and reliability of the statements, arguments, and illustrations given in the report are certified by experts from an independent professional company. In her audit opinion, she provides detailed evidence of which corporate documents were used, which areas of the company's operations were visited, which facilities were inspected, and with whom purposeful dialogues were held. Characteristically, the audit assurance, by definition, is limited to the reporting period of 2007-2008. At the same time, attention is drawn, on the one hand, to the assertion of independent experts that the current report is a balanced presentation of the economic, environmental and social aspects of the company's performance. On the other hand, it is impossible not to notice that these aspects, according to them, determine sustainable development indicators in the context of the adopted Strategic Development Program of the LUKOIL Group for 2008-2013.

I cannot but agree that such an assessment, firstly, organically takes the process beyond the bounds of the past reporting period. And secondly, it makes this period a kind of launching pad, aiming the many thousands of the company's staff and everyone who is interested in its prosperity for future responsible accomplishments.

In my work, I set myself the goal of analyzing the non-financial report of LUKOIL.

The results of the analysis reflect the trends and specifics of the development of social reporting, characterize the ideas of the business community about corporate responsibility and corporate practices that comply with the principles of socially responsible business conduct. The review is my first attempt at an end-to-end analysis of non-financial reports and a generalization of the information contained in them.

There is no doubt that one of the most important tools for improving the quality of corporate governance, including planning, monitoring and evaluating the company's activities, is a non-financial (social) report. At the same time, it can serve as a means of increasing transparency in the company's activities and improving dialogue with social partners.

The development of non-financial reporting is directly related to the problem of information openness of companies. The company I analyze has its own corporate website, where they clearly clarify their position on the issue of corporate social responsibility, publish their own ethical and social codes, as well as corporate responsibility reports.

Today, the leaders in non-financial reporting are the largest companies in Russia, occupying the top lines of the ratings and making the greatest contribution to the welfare of the country, both through their direct economic activity and the implementation of approaches to corporate responsibility. Among them, one of the leading positions is occupied by LUKOIL, whose corporate responsibility report I reviewed in the course of my work.

The content of a company's non-financial report reflects the company's decision on which issues should be given the most attention, based on the goals and objectives that the company sets for itself when starting to prepare the report. The decision on the nature of the information included in the report is significantly influenced by the requests and expectations of stakeholders, the interaction with which the company considers the most relevant at this stage. It is important to keep in mind that the report is reader-oriented in general. As a rule, it is addressed to specific target audiences, each of which should find a reflection of their interests in the report. Proper consideration of these interests, adequate selection and disclosure of information is an important element in the preparation of the LUKOIL report.

An analysis of the report reveals distinct specifics in the disclosure of information that Russian companies consider significant and significant: a lot of attention is paid to issues of social policy in relation to employees, development programs in the territories of presence, as well as charity and sponsorship. Companies are investing heavily in these programs. Thus, in 2004, the costs of the three leading Russian oil companies for solving socially significant problems amounted to more than 16.5 billion rubles. which in total corresponds to 0.1% of GDP.

A significant part of the company's report is devoted to presenting the results in the field of forming an effective personnel policy and social programs for employees: improving the professional level and qualifications of employees, educational programs, systems of motivation for productive work; personnel health protection and improvement of working conditions; voluntary medical insurance programs; corporate pension funds and systems.

The company has to deal with a large number of problems related to the environmental consequences of its activities. Investment programs for technical modernization, as well as environmental programs, occupy an important place in LUKOIL's plans.

Industry specifics are reflected in the report in only a few topics, among which the most common are product quality and customer relations, as well as environmental activities.

I would like to emphasize that the comparison of the nature of the information reflected in the report with the GRI principles shows a high degree of compliance, which indicates the practical implementation of these principles in business practice, even when the company itself does not indicate this. Following the principles of socially responsible business conduct in the interests of its own sustainability is a long-term process of movement. At different stages of the development of the company, the degree of progress in the implementation of these principles may be different. It is important that they are actually reflected in corporate strategies and embodied in the daily activities of the organization, as evidenced by the results of the analysis.

The results of the analysis confirm that the Guidelines for Sustainability Reporting (GRI) can serve Russian companies as a universal platform for reporting and be used along with other documents recognized in world practice.

The information presented in the LUKOIL report demonstrates that the company has built an extensive educational system, through which an employee can receive and improve professional training and make a career based on their ambitions and capabilities. Corporate spending on employee training removes the financial burden of millions of rubles a year from citizens and the state, which is a significant contribution of the corporate sector to solving national problems of developing labor potential. Internal programs are supported by financing of external programs to support the development of secondary and higher education, as well as university science and research. Based on the available information, we can speak about the comprehensive contribution of LUKOIL to the development of education.

In order to improve the health of employees and their families, the company uses a range of programs ranging from voluntary medical and pension insurance and disease prevention measures to developing corporate sports and organizing summer holidays for employees' children. The report convincingly presents the scope of this activity within a single reporting organization.

In conclusion, I would like to conclude that the corporate responsibility report of OAO LUKOIL is a good non-financial report that contains information that makes it possible to assess the quantity and quality of the organization's intangible assets, its capabilities and potential, management features and management quality. Investors, partners, customers and own personnel can obtain from the report information that, along with information on financial results, helps them make the necessary decisions regarding LUKOIL. It can be assumed that in response to the challenges of the time and public expectations, such an approach to business decision-making will become common. All the more valuable is the experience of LUKOIL, which was the first in Russia to start preparing and publishing its non-financial reports. This experience paves the way for others and contributes to the formation of modern ideas about corporate practice and business ethics in the Russian business community.

The company's experience with non-financial reporting has shown that it should be viewed not simply as a description of charitable and environmental activities, but as part of a broader definition of organizational strategy. It involves an ongoing process that does not begin with the publication of the report, and certainly does not end with it. This process can stimulate the company to improve corporate governance and improve management efficiency. It sums up certain results on the way to sustainable development and sets new goals to improve the results obtained.

Conclusion

In the course of my work, I considered in detail the tasks assigned to me.

In the first chapter of my work, I traced the history of the development of the concept of responsibility as a moral category, paying special attention to the concept of G. Jonas.

In addition, I gave definitions of the concepts of "business ethics" and "social responsibility". Then I compared these concepts and came to the conclusion that they correlate as general ethical foundations of business with a particular principle. As examples of corporations that were among the first to apply the principle of social responsibility in their business, I cited such companies as Sears, Unilever.

I devoted the second chapter of my work to the consideration of problems and controversial motives associated with the concept of corporate responsibility. First, I discussed two approaches to the study of corporate social responsibility using the opinions of Milton Friedman and Michael Porter as an example. Second, I looked at the arguments for and against social responsibility in business. After that, I gave examples of corporations with different points of view on this issue: Johnson & Johnson and Firestone.

In the process of writing the final chapter, I came to the conclusion that sustainable development is a process of change in which the exploitation of natural resources, the direction of investments, the orientation of scientific and technological development, the development of the individual and institutional changes are aligned with each other and strengthen the current and future potential to meet human needs and aspirations. It includes consideration of economic, environmental and social factors. Social responsibility is closely related to sustainable development, as the overall goal of a socially responsible organization should be to contribute to sustainable development.

In addition, I came to the conclusion that the corporate social report is a tool for informing shareholders, employees, partners, customers, society about how and at what pace the company is implementing the goals set out in its strategic development plans regarding economic sustainability, social well-being and environmental stability. I reviewed the GRI Sustainability Reporting Guidelines in more detail. This system is by far the most used in the world in the preparation of non-financial reports.

In the final third chapter, I also reviewed the ethical codes of foreign and Russian companies such as IBM, TNK-BP and LUKOIL, compared them with the principle of social responsibility and came to the conclusion that all the principles proclaimed in the preambles are actually implemented.

I also analyzed the implementation of the principle of social responsibility in practice on the example of the report of the company "LUKOIL" and traced the extent to which it complies with the principles set out in the guidelines for compiling social reporting. I came to the conclusion that the social responsibility report of this organization corresponds to the C + level according to the international GRI classification and can take a well-deserved place among the reports of international oil companies.

LUKOIL was the first in Russia to start preparing and publishing its non-financial reports. All the more valuable is his experience, which paves the way for others and contributes to the formation of modern ideas about corporate practice and business ethics in the Russian business community.

I would also like to express my opinion when answering the question: is a business generally responsible, or is its only goal profit. Most likely, I am a supporter of the affirmative approach. In my opinion, the managers and employees of an organization are responsible for balancing the company's pursuit of the common interest: the economic interests of the organization, the interests of stakeholders, and the global public interest. In my opinion, organizations should bear voluntary obligations to society and direct part of their funds to improve it.

In conclusion, I would like to note that a deep understanding and acceptance of business ethics as an internal norm today is mandatory for a manager of any level, and especially for an entrepreneur. Management, being a very specific activity, obliges managers to take care of the limits and consequences of their actions. Recently, for many business representatives, it has become obvious that the sustainable development of companies, combining economic, social and environmental factors, leads to a reduction in entrepreneurial risks, strengthens competitiveness, increases staff efficiency and consumer loyalty, improves the reputation of companies, creates a positive contribution from the business community. in the economic and social development of the territories of its presence. This creates favorable conditions for the implementation of long-term business development strategies based on maintaining a balance of interests of stakeholders. This is the essence of socially responsible business conduct as the basis for sustainable development of companies.

I would like to make a small contribution to the development of the problem of social responsibility of business through my work.

Bibliography

1. Aleksina T. A. Business ethics. #"#_ftnref1" name="_ftn1" title=""> Jonas, X. Principle of Responsibility. Ethics Experience for Technological Civilization / X. Jonas. - M.: Iris-press, 2004. p. 196

1 Ethics of the organization

3 The concept of corporate social responsibility

2 Principles of social responsibility of OAO LUKOIL

3 JSC RUSAL social responsibility program

Conclusion

Bibliography

Applications

Introduction

Ethics and morality form the basis of human behavior, especially the economic, economic behavior of people. In modern society, they are a necessary prerequisite for the well-being and functioning of social institutions and systems. Ethics in a broad sense is understood as a system of universal and specific moral requirements and norms of behavior implemented in the process of social life. The ethics of business relations highlights one of the areas of public life. Based on universal human norms and rules of conduct, the ethical norms of service relations have some distinctive features.

In recent years, issues of social responsibility and professional ethics in the global business community have come to the fore.

The meaning of the concept of social responsibility of business lies in the voluntary obligation of businessmen to conduct such policies, make such decisions and follow such lines of activity that are desirable from the point of view of the goals and values ​​of society. In other words, this is a kind of social contract between entrepreneurs, the population and the state, the purpose of which is to promote the good of the whole society.

The development of the theme. The problems of ethics and social responsibility of business were dealt with by such domestic scientists as: V.K. Belolipetsky, L.G. Pavlova, V.N. Lavrinenko, N.G. Moskovtsev, S.M. Shevchenko, V.A. Sukharev, V.A. Spivak, Yu.Yu. Petrunin and others.

Among foreign scientists, J. Yager, J. Chestara, D. Carnegie, V.I. Knorring, M.N. Brime, R.T. George and others.

The concept of "corporate social responsibility" was formed about 20 years ago. Prior to this period, there were disparate standards in various areas of corporate governance regarding the policy of relations with employees, corporate ethics, approaches to environmental protection. The social responsibility of an organization is understood as a certain level of voluntary response to social problems (environment, employment, development, cultural services, etc.). The social responsibility of the entrepreneur consists in his participation in the production of goods required by society, improving their quality, implementing various social programs, accelerating the implementation of the achievements of scientific and technological progress, etc.

Employers pay more and more attention to the issues of ethics of business and personal relationships in the selection and hiring of personnel, as well as in the process of direct performance by employees of their professional role.

The object of work are organizations and businesses.

The subject of the work is ethics and social responsibility of organizations and business.

The aim of the work is to study the features of the ethics of organizations and business ethics, the concept of social responsibility.

The tasks of the work are:

1. The study of the theoretical foundations of the ethical aspects of organization, management and social responsibility of business;

2. Consider organization ethics, business ethics and management ethics;

Consider examples of socially responsible Russian companies;

Determine the practical implementation of the principles of social responsibility by Russian companies;

Determine the principles of social responsibility of OAO "LUKOIL" and OAO "RUSAL".

The structure of the work consists of an introduction, two chapters, a conclusion, a list of references and four appendices.

Chapter 1. Theoretical aspects of ethical aspects of organization, management and social responsibility of business

.1 Ethics of the organization

From the standpoint of management, all enterprises (firms) have a common feature - they are all organizations. An organization is a group of people whose activities are consciously coordinated to achieve a common goal or goals. All complex organizations share common characteristics. These include: resources, dependence on the external environment, horizontal and vertical division of labor, division, the need for management. The essence and content of the management process are manifested in its functions. From these positions, the management of an organization is understood as a process of planning, organization, motivation and control necessary in order to formulate and achieve the goals of the organization. Management in the modern world acts not only as an integral part of joint, combined labor, but also as a function of the realization of property. In the control center are people (cadres of specialists), which are the basis of any organization. From these positions, management is also the ability to achieve goals by directing labor, intellect, and motives for the behavior of people working in an organization.

From the point of view of a systematic approach to the organization and its management, all organizations are open systems, i.e. characterized by interaction with the external environment. If the management organization is effective, then during the process of transformation, an additional value of inputs is formed, as a result of which many possible additional outputs appear (profit, increase in market share, increase in sales, growth of the organization, etc.). The object of management on the part of management at the enterprise are several groups of functional processes: marketing, research and development, production, finance, personnel, etc.

An organization is created, exists and functions due to the interaction of its constituent elements of its internal environment - its goals, structure, functions, technology and personnel. Each manager, at whatever level he is, strives to achieve goals, being in a certain structure, performing certain tasks, observing the requirements of technology and leading people subordinate to him.

Each of the elements of the internal environment during its formation, development must pass the "ethics test" (Fig. 1.1.1).

Fig. 1.1.1 .. The layout of the "ethical filter" in the interaction of the organization with the external environment

The "ethical-unethical" rating scale should work constantly, regardless of whether a new technology is mastered or new job descriptions are introduced for any manager. To ensure the required level of ethics in the functioning of the internal environment, organizations implement various measures, such as:

) develop an ethical code of the organization (department, sector, branch);

) periodically conduct training of personnel, primarily managers, in the basics of management ethics;

) form a committee-type body designed to monitor compliance with ethical standards and resolve problems and conflicts arising from ethical violations.

The external environment of the organization includes a large number of elements: these are competitors, and consumers of products (or services) produced by this organization, and suppliers of raw materials, materials, etc., and sources of labor resources, and investor organizations, and individual shareholders , state administration bodies. In an indirect form, the organization is also influenced by such factors as the state and level of development of the economy, the level of development and characteristics of culture, national customs, habits, tastes, moods and expectations of society.

Thus, many actors influence the organization, and it interacts with them - in different ways, in different forms and with different intensity. All types and forms of interaction, all activities of the organization, from the moment of formation to the end of its life cycle, must be constantly evaluated from the standpoint of social responsibility.

Each company has a certain system of universally recognized moral procedures (norms, values, knowledge) that are mandatory for all employees. The core of corporate ethics is formed by the founders of the organization and is directly related to their life experience and worldview. The reputation and authority of the leader, the effectiveness of his work are perceived by subordinates as a given, and they begin to imitate him.

The ethics of national management is formed by joint efforts in the sphere of the state, business circles, trade unions, civil society and the church. In the last decade, the ethical side of business relations in organizations has become increasingly important. In Western countries, this is explained by the fact that society has become more knowledgeable in the field of business relations and makes higher demands on the ethical level of the organization. The signs of an ethical organization are as follows: the organization as a collective member of society: cares about the observance of laws (even if there is a possibility to circumvent them); contributes to lawmaking by voluntarily providing available information on additional measures needed in a given industry; observes the fundamental norms of public morality, without resorting to deceit, corruption, etc.; acts abroad with respect for the laws of the host country.

The organization as a manufacturer: focuses on the production of safe and reliable products at fair prices. The organization as an employer: cares about the safety of production; takes care of the good emotional state of its employees; does not allow gender, age, national and other discrimination. The organization as a subject of resource management: takes care of their efficient use; takes care of the aesthetics of the occupied land. The organization as an investment object: fully and truthfully provides information about its economic situation. The organization as a competitor: does not take part in unfair competition; does not take part in unreasonable restriction of competition. The organization as a participant in social development: stimulates innovation and introduces new products and technologies; does not forget that its activities have an impact on the quality of life and recognizes the associated responsibility.

Many business entities face a number of ethical issues, the root cause of which is contradictions in the interests of interest groups - customers, employees, shareholders, suppliers, competitors, governments and local communities.

At the macro level, ethical problems manifest themselves in relations between organizations (unfair competition), organizations and the state (permissible limits of control), product manufacturers and consumers (unfair advertising, imposed demand, withholding information about consumer characteristics), organizations and investors (owners) (manipulations with investments, understatement or overestimation of income), organizations and local communities (mandatory participation in the development of the local community, the preservation of unprofitable enterprises), organizations and the environment (concealment of true information, transfer of production to less "strict" regions, bribing officials).

At the micro level, i.e. directly in organizations, these problems arise when making managerial decisions (illegal, careless, immoral decisions for career development), the relationship between managers and subordinates (methods of influencing subordinates), in the case of official disclosures (permissibility of informing about unseemly acts), women in the organization (career restrictions, sexual harassment), in the provision of "mutual favors" (gifts, favors in addition to or bypassing formal relationships).

In order to prevent or resolve such problems, it is necessary to develop a set of moral standards (code of corporate ethics) that would assist participants in business relations in the successful fulfillment of their professional tasks, contribute to the coordination of the interests of the business sphere and society. The need for corporate ethical codes arises from the fact that universal ethical standards are not enough to regulate human behavior in specific situations. Codes of ethics contain resources for solving a wide range of tasks, and allow you to improve the efficiency of company management. The presence of a company code of corporate ethics becomes a global standard for doing business. In recent years, codes of corporate ethics (codes of ethics) have also appeared in many Russian organizations in various fields of activity. The Code of Ethics describes a system of common values ​​and rules of ethics for a company to be followed by its employees. The Code operates along with the administrative-legal order and, unlike the latter, has no legal force, but acts as a "moral contract" between the enterprise and employees. The Code of Ethics performs three main functions:

forms confidence in the company on the part of reference external groups (description of the policy in relation to customers, suppliers, contractors);

regulates the behavior of personnel in difficult ethical situations (regulation of priorities in interaction with significant external groups, determining the procedure for making decisions in difficult ethical situations, indicating unacceptable forms of behavior);

develops a corporate culture (the code of ethics can ensure that the values ​​of the company are communicated to all employees, orient them towards common corporate values ​​and thereby enhance corporate identity; with the help of the code, certain patterns of behavior and uniform standards of relations and joint activities are set).

The structure of the corporate code of Procter & Gamble is given in Appendix 1. The following types of corporate codes of ethics are distinguished: a regulatory document with detailed rules, including sanctions provided for in case of violation of the code; a short code, including abstract provisions on the values, philosophy, goals of the corporation; a detailed code of the firm's social obligations to investors, employees, etc. The codes clarify what personal qualities employees must have; principles of interaction "boss-subordinate"; principles of interaction with external organizations; positions of company representatives during negotiations; features of the activities of employees in other states; use by company employees of proprietary information and much more .

The content of the ethical code of a particular company is determined by its features - structure, development tasks, attitudes of managers. As a rule, codes contain two parts: ideological (mission, goals, values) and normative (standards of working behavior). The code of ethics can be developed for the company as a whole, and in this case it contains ethical rules common to all, both for managers and for ordinary performers. A code may also be created for certain functional units in order to address specific ethical issues. A characteristic feature of modern codes of ethics is that the sections containing recommendations for dealing with ethical problems arising from conflicts of interest are developed in more detail and thoroughness than other sections. At the same time, emphasis is placed on the clash of interests of the organization: with government bodies; with employees or shareholders of the organization; foreign governments.

Corporate ethical codes prohibit: discrimination based on: race; skin color; religion; gender; sexual orientation; age; nationality; disability; work experience; beliefs; party affiliation; education; social, class origin; language; property status; sexual harassment; creating an aggressive work environment; remarks, jokes and other actions that encourage a violent workplace environment; making fun of workers; racial contempt; religious contempt; threats; coarseness; violence; use, sale of drugs; appearance at work in a state of intoxication, a state of narcotic, toxic intoxication; loss of property of the organization; theft of property of the organization; improper, inefficient use of the property of the organization; disclosure of information that is an official, commercial secret; storage of personal materials at the workplace; refusing to inspect your workplace and the information used by employees of personnel services; use of company consumables for personal purposes; use of the organization's communications for personal purposes; transfer of inaccurate, distorted information to the administration; fraud by overstating their expenses, for example, for travel, food, accommodation, other expenses; deception of state, government bodies, external organizations; false statements on behalf of the organization; abuse of power and influence of the organization; abuse and threats against another organization; execution of orders that are a violation of the law; disparaging remarks about competitors; humiliation of competitors, their products and services; talking to outsiders about the terms of contracts and thereby making those terms public; conversations with outsiders (persons not working in the organization) about inventions used in organizations; conversations with outsiders to the organization about production plans, about market research; about production capacities, about private information; use of indecent methods and services, such as industrial espionage; illegal entry into foreign territory; eavesdropping; hiring employees to obtain private information about employees, competitors; corrupt practices; receiving gifts and money from a supplier, client (gifts include: material values, services, for example, personal discounts on purchases of goods for personal use or services at reduced prices); receiving commissions; presentation of gifts to representatives of the supplier.

Professionally homogenous organizations (banks, consulting companies) often use codes that describe professional dilemmas. The content of such codes regulates the behavior of employees in ethically difficult professional situations (for example, in banking, the codes describe the rules for handling confidential information about clients, information about the stability of one's bank, and prohibit the use of information for personal enrichment). Complementing such a code with chapters on the mission and values ​​of the company contributes to the development of corporate culture.

Obviously, it is impossible to describe in a code any ethical problem that employees may encounter, but written instructions can help resolve ethical issues that are quite common. To become acting, working, the rules of ethical

codes must actually meet the following requirements:

they should be somewhat higher than the existing practice, orient employees not to something more than is currently accepted, while remaining feasible for implementation;

deviations from their fulfillment by someone should be actually visible and easily assessed by others, i.e. rules should be such that their violation is immediately recorded.

When formulating the norms of the ethical code, the following mistakes can be made: reducing them to slogans, abstract and practically meaningless; repetition in them of what everyone does; the actual unverifiability of their effectiveness; overstated requirements, which most are not able to meet.

The corporate code of ethics will be actually implemented only if it is accepted by each employee, therefore, even at the stage of its creation, it is necessary to provide procedures that include, if possible, all employees of the company in the document development process. The effectiveness of ethical codes also depends on whether the company's management perceives them as an institutional norm, whether there is a gap between formalized ethical norms and their application in specific situations. The surest criterion for the quality of an ethical code is the perception of it by employees.

In order to make codes of ethics more effective, companies often take certain disciplinary measures aimed at punishing violations of the code and encouraging actions taken in accordance with the rules of the code of ethics.

In Russian organizations, the practice of developing codes of ethics as an independent corporate document has not yet become widespread, however, the basic requirements for the behavior of employees, the ethics of relationships in the team are increasingly contained in such documents as the Regulations on Personnel, Work Standards of the organization. The basic principles and norms of behavior are included in the handbooks and memos of the employee of the organization distributed among the employees, and other means of visual propaganda.

.2 Business ethics and management ethics

Business ethics as a field of knowledge was formed in the 70s of the XX century. in the USA. Particular attention to ethical behavior in business began to be paid in the 60s, during various social upheavals. The new management paradigm required a revision of the principles of management, as the old ones cease to "work" in the conditions of entrepreneurial structures. In the 90s, ethics in business is declared the golden rule of management.

Business ethics is a scientific discipline that studies the application of ethical principles in business situations. The most developed issues in business ethics are the following: the relationship between corporate and universal ethics, the problem of business social responsibility, the application of general ethical principles to specific decision-making situations, ways to increase the ethical level of an organization, the impact of religious and cultural values ​​on economic behavior, and some others. Business ethics is the study of the correspondence between the moral standards of a person's activity and the goals of a business organization. It is a tool for analyzing and solving problems that confront a moral person in business.

Business ethics is divided into macroethics and microethics. Macroethics is understood as that part of business ethics that considers the specifics of moral relations between both macrosubjects of the social and economic structure of society: corporations, the state and society as a whole, and its parts; under micro-ethics - the study of the specifics of moral relations within a corporation, between a corporation as a moral entity and its employees, as well as shareholders.

In the system of moral relations between macro-subjects, specialists distinguish two levels: horizontal and vertical. At the horizontal level, consider the moral relationship between entities with the same characteristics, between different corporations; on the vertical - moral relations between subjects with different characteristics and properties. This level includes relations between corporations and the state, between corporations and society as a whole (or part of it), and between corporations and the environment.

Most people make ethical decisions at the micro level, i.e. when a person is responsible for their own behavior or makes decisions that affect other people, such as the welfare of their loved ones, colleagues, or even a small community. But some people sooner or later begin to make decisions at the macro level, for example, to directly participate in the formation of state national policy.

Business ethics is relevant both to the formation of economic institutions and to the functioning of business professionals. The economic institutions of society inevitably intrude into the realm of morality, and from this point of view, the importance of the macro level of business ethics can hardly be overestimated.

Ethics plays the role of a kind of filter when implementing methods, management style, when creating a management structure, when making decisions, etc. Ethical norms, standards must be present in any phenomenon and management process. The essence of management ethics is in the nobility of actions, both for an individual manager and for the organization as a whole.

The content of the essential category of "ethics of management" is revealed in the specific actions and behavior of managers and organizations. The category "ethics of management" is in close connection with other categories of management. The connection of ethics with management methods occurs through: a) the ethics of choosing specific management methods; b) the ethics of specific use (implementation) of these methods; c) the ethics of the perception by specific people of management methods (or the perception of a specific organization of the current situation); d) the ethics of the influence of the chosen and implemented methods on improving the level of ethical management (the latter indicator can be considered a kind of "ethical effectiveness indicator").

Depending on the degree of formalization, formalized

forms of expression of the category "ethics of management" (for example, ethical standards of corporations that have a finished form, exist in writing and are binding on employees) and non-formalized forms (oral instructions from a manager to a subordinate).

Thus, management ethics is a category that is present in all other categories of management as a filter that does not let anything unworthy, ignoble, ungenerous into management practice, both at the level of an individual manager and at the level of the organization as a whole.

In Russian society, managers and entrepreneurs have an increasingly noticeable influence on the economic, social and political life of the country. The ethical characteristics of Russian business life are: semi-legal regulation of activities; the power of informal relationships; selective ethics in business relations; use of force methods; independence and detachment from politics; creation of "teams" and centralization of managerial functions; technocracy and paternalism of leadership; workaholism; increased propensity for risk and diversification of activities; high degree of adaptability and responsiveness; restrained attitude towards charity.

In Russian entrepreneurship, the most common ethical violations (mistakes) are the following: dishonesty of Russian entrepreneurs; extortion by government officials; political instability in society; financial instability; infringement of the rights of entrepreneurs by state bodies and officials; the increasing criminalization of various sectors of the economy; extortion by criminal structures; lack of private ownership of land; threat to personal security from criminal structures and others. A consistent stubborn struggle against the factors listed above, which negatively affect the level of ethics of Russian entrepreneurship as a whole, will reduce the number of violations of ethical norms and standards in the Russian Federation. A great deal of work in this direction has been carried out by the Chamber of Commerce and Industry of the Russian Federation - from the very first years of Russia's entry into the system of market world economic relations.

Today, it is extremely important for Russian businessmen to create a positive opinion of themselves among the international community, since this will open up broad prospects for establishing new economic and trade ties. There are a number of factors hindering the development of Russian business culture: little experience of doing business in the Market, unstable and unpredictable legislation, lack of political stability, transitional nature, its criminalization. In addition, socio-cultural factors also influence this process: historical traditions, psychology, habits, mindset, which change much more slowly than all the others. For example, a new law can be adopted relatively quickly, but it is much more difficult to develop the habit of complying with it. In Russia, the formation of new economic legislation is uneven, and the acquisition of new experience in the field of business communication, the transition from the habits accumulated in the conditions of the command-administrative system to the habits and techniques necessary for the effective conduct of business in a modern developed economic system is an even more long and spontaneous, as it is associated with colossal economic, psychological and moral costs for Russian business people.

It is possible to stop the development of negative trends under the following conditions: improvement of economic legislation, improvement of the socio-political situation, as well as the targeted development of a system of practical measures to form an appropriate business culture of domestic producers. At the same time, the growing internationalization of the world economic process inevitably implies a civilized business conduct, in particular, the unification of the rules of international business interaction, the recognition of business ethics by all entrepreneurs. According to foreign and Russian businessmen, the standards of business conduct that are currently taking shape in Russia often differ from those generally accepted.

The business world as a whole is moving towards convergence and complementarity. However, each country goes its own way, has its own cultural and historical specifics. Over the past years, the business environment, both in the world and in Russia, has changed significantly. Significant impact on the relationship in the international business community have serious environmental problems, causing the mutual responsibility of all participants in the economic process. The growing criminalization of business is exacerbated by the sophisticated technique of "money laundering", the relations between entrepreneurs and bureaucracy have become aggravated.

In an effort to take into account the specifics of business culture, the National Foundation "Russian Business Culture" has developed a document "Twelve principles of doing business in Russia", calling on entrepreneurs to approve the following principles of business relations (Table 1.2.1).

Table 1.2.1 Business relationship principles

	Name of a group of principles	Composition of group principles
	Principles of personality	1. Profit is most important, but honor is more important than profit. 2. Respect the participants in the common cause - this is the basis of relations with them and self-respect. Respect and self-respect are given by the fulfillment of direct business obligations. 3. Refrain from violence and the threat of violence as a way to achieve business goals.
	Principles of professionalism	4. Always conduct business according to means. 5. Justify trust, it is the basis of entrepreneurship and the key to success. Strive to gain a reputation as an honest, competent and decent partner. 6. Compete with dignity. Don't take business disputes to court.
	Principles of Russia	7. Obey applicable laws and obey legitimate authority. 8. To legally influence the government and lawmaking, unite with like-minded people on the basis of these principles. 9. Do good for people, not for the sake of self-interest and vanity.
	Earth Citizen Principles	10. When creating and running a business, at least do not damage nature. 11. Find the strength to resist crime and corruption. Help them to become unprofitable for everyone. 12. Show tolerance towards representatives of other cultures, beliefs and countries. They are no worse or better than us, they are just different.

The general ethical principles of business relations should be used to develop any organization and leaders of their own ethical systems.

Also cited as an example are the Rules for the Good Practice of Members of the Professional Association of Securities Market Participants (1994); "Code of Professional Ethics for Members of the Russian Society of Appraisers" (1994). The Second Congress of Russian Entrepreneurs adopted the "Business Charter of Russia".

Based on the foregoing, a joint business ethics should be based on three most important provisions: the creation of material values ​​in all its variety of forms is considered as an initially important process; profit and other incomes are considered as the result of achieving various socially significant goals; priorities in solving problems arising in the business world should be given to the interests of interpersonal relations, and not to production. This result can be obtained only in the course of long-term systematic work.

1.3 The concept of corporate social responsibility

Corporate social responsibility is a regularly reviewed and dynamically changing set of obligations that meets the specifics and level of development of the corporation, voluntarily and in concert developed with the participation of stakeholders, aimed at the implementation of significant internal and external social programs, the results of which contribute to the development of the company (increase in production volumes, increase quality of products and services, etc.), improving its reputation and image, establishing a corporate identity, developing corporate brands, as well as expanding constructive partnerships with the state, business partners, local communities and civil organizations.

Today, according to the classic definition of the European Commission, corporate social responsibility is a concept that reflects the voluntary decision of companies to participate in improving society and protecting the environment. This movement of business towards society is valuable because it is an expression of good will. Some countries have already made corporate social responsibility an open and highly effective public policy tool. Relevant legislation already exists in Denmark, Sweden, Norway, Holland, France, Great Britain, and the Government of Canada is working in this direction.

The principles of ethical and socio-economic activities of business are based on the moral and moral values ​​of society, which are the basis and guarantee of the successful operation of economic entities. Today, the implementation of any economic policy of firms requires the solution of ethical problems that necessitate economic and social research and are more of a philosophical and ideological issue. At present, the foundation for the development and sustainable economic growth of any company is the ethical principles of behavior based on public morality and moral values, including: freedom and democracy, social responsibility and care for others, honest business practices, fairness of actions and actions; a market way of thinking of managers and personnel of firms, which implies the free movement of resources and firms between industries, self-control, mutual assistance and internationalization in actions; focus on people, on the possibility of improving the economic and social life of staff and society through the creation of flexible and efficient democratic organizational structures of management; the desire of an economic entity not for success, but for ensuring a full-fledged human life, which is important, like the work itself, that is, the formation of active leisure, a new lifestyle and family relationships; belief in a modern work ethic, which implies that people should save money and help the Russian economy as a whole, work hard and be proud of the result of their work, earn well and be promoted.

The main principles for making social and ethical business decisions include: pragmatic actions, that is, obtaining appropriate income and profits; observance of human rights (to work, education, health, etc.) and social and legal protection of society from inefficient owners; fair distribution of benefits and responsibility to society. These long-term principles are built on the basis of religious beliefs, customs and traditions of peoples, observance of human rights and freedoms, utilitarianism and entrepreneurial spirit of people. The modern concept of business differs from the former one in that it is focused on raising the ethical level of business; sustainable business development in the future with moderate profits; on the mass of profit instead of the maximum rate of profit; on humanism and fair competition; to a decent business, where the main thing is not only money, but also high art and fascinating creativity of the entrepreneur, as smart and talented people go to those corporations that pay more attention to the personality of the employee; on the combination and interaction of monopolies and competition, which manifests itself not in setting high prices and maximizing profits, but in a sharp struggle for the buyer by satisfying his needs.

Today, all norms and rules of conduct in business are evaluated from the point of view of public morality and law, and the business itself is responsible to various social groups: consumers and investors, partners and its own staff.

Business has a social responsibility to society, that is, to the population and the environment in terms of: ensuring the freedom of entrepreneurship; providing equal employment opportunities for women and national minorities and emigrants; protection of the environment and methods of its control, protection of consumer rights, especially in problematic sectors of the consumer market.

The formulated principles of doing business in modern conditions are based on the concept of sustainable development of an organization, according to which only a company that has reached the optimal balance between three groups of goals: economic, environmental and social, forming the key areas of sustainable company development. In each of the key areas, areas of responsibility are formed, which are assumed by the management of a particular organization (Table 1.3.1).

Table 1.3.1 Correspondence of the areas of responsibility of the organization's management with the key areas of its sustainable development

Key areas of sustainable development of the organization	Responsibilities of the organization's management
Economic and financial sustainability, corporate governance, interaction with sources of capital	Economic growth Financial performance Obligations to shareholders, sources of capital Tax and mandatory payments
Labor rights, employee relations, workplace health and safety	Labor rights and decent remuneration for labor Occupational health, safety and health in the workplace Personnel development Equal opportunities in recruitment, professional and career growth Employee participation in decision-making
Product quality, relationships with consumers and suppliers	Quality of goods and services Consumer health and safety Fair pricing Fair competition and advertising Compliance with ethical business practices
Environmental Safety	Environmental safety of production Economical consumption of natural resources Reuse of resources, waste disposal
Human rights	Respect for the legal rights of the employee and citizen in the workplace Prevention of any form of discrimination, forced labor Respect and support for any human rights related to the activities of the organization
Interaction with local communities	Use of business resources for the local community Support for civil initiatives Partnership with the local community and authorities Charity programs for the social and cultural development of the local community
Interaction with the authorities

In Russia, the process of development of corporate social responsibility is at an early stage and takes place in the conditions of the dominant positions of the state, the extremely weak development of civil society institutions, the oligarchic development of business and the rules for the interaction of these institutions, the role of individual parties and the measures of their participation in social development are only being formed. The socially responsible behavior of a corporation should be manifested in the choice of priorities and mechanisms for the development of the production of goods and services, employment, maintenance of social standards and environmental protection. The main attention in the implementation of socially responsible behavior is paid to three areas:

economic activity (sustainable growth and production of quality products);

environmental activities (protection and renewal of natural environment resources);

social activity (active social policy).

Thus, corporate social responsibility is understood as a model of strategic behavior of corporations, in which programs of socially responsible initiatives are developed and implemented, directly in the field of economic activity, as well as in environmental and social spheres.

Chapter 2. Examples of socially responsible Russian companies

.1 Practical implementation of social responsibility principles by Russian companies

The current level of development of economic and social relations in the Russian Federation urgently requires the inclusion of Russian companies in international processes, an adequate response to the enterprises taking place in the external environment and a comprehensive solution to the internal problems of the organization, taking into account external trends.

In 2004, the initiative group of the Russian Union of Industrialists and Entrepreneurs (RSPP), based on extensive discussion in the business community and taking into account the provisions of the UN Global Compact, developed the basic principles of responsible business conduct and business practice, which were called the Social Charter of Russian Business. "The Social Charter of Russian business today is a platform for the formation of corporate policy and practice in accordance with the objectives of sustainable business development of companies based on effective interaction with stakeholders - shareholders, investors, employee organizations, government agencies, civil society institutions."

In accordance with the Social Charter of Russian Business, the very concept of social responsibility and socially responsible business practices includes an economic, environmental and social component.

Socially responsible business is the production of quality goods and services at a reasonable price; regular payment of decent wages; concern for the health and safety of its employees; reduction of negative impact on the environment; new workplaces; investments in the development of own production and personnel of enterprises; honesty and transparency in doing business; support for vulnerable segments of the population; participation in regional programs to support education, culture, sports and infrastructure, not related to the main field of activity of the organization.

At present, in Russia, the policy of social responsibility and the strategy of participation in the life of society are mainly thought of by large national companies and divisions of international companies. Medium business, with rare exceptions, works "the old fashioned way", doing business as it should, and doing one-time charity. The economic conditions and the content of Russian business impose their own characteristics on the development of the concept of social responsibility in Russia. More and more new organizations and participants are actively joining the Social Charter of Russian Business. The most famous socially responsible companies are the largest Russian corporations - MMC Norilsk Nickel, OAO Lukoil, FC Uralsib, Rusal, OAO Severstal, AFK Sistema, Gazprom and others).

OJSC MMC Norilsk Nickel in its corporate social report analyzes in detail the possible social risks of this enterprise and the main directions for their minimization (Table 2.1.1).

Table 2.1.1 Social risks of OJSC MMC Norilsk Nickel

General Factors	Risks of implementation of the Company's production development strategy until 2020 related to personnel	Company specific factors
Reduction in the supply of labor resources due to the demographic situation Increase in demand for personnel due to the growth of the Russian economy	The risk of providing production with personnel in the required quantity and quality	Non-compliance of the level of training of young specialists in universities and vocational schools with the requirements of production Decrease in the attractiveness of work in the production divisions of the Company due to difficult and dangerous working conditions, the environmental situation in the region Unprofessional actions of line managers of lower and middle levels in terms of interaction with personnel "mainland"
Changes in the socio-economic situation in the country and the world Destabilizing actions of internal and external forces (international and Russian trade unions, other public organizations interacting with workers, destructive leaders of social movements)	The risk of ensuring social stability	Violation of life support systems, deterioration of the environmental situation, fatal accidents Significant dissatisfaction of employees with the level of remuneration, social benefits and the system of their distribution
Strengthening of the ruble against the US dollar Accelerated wage growth in the Russian Federation Growth in social contributions and payroll taxes	Risk of growth in personnel costs in amounts critical to ensure an acceptable level of profitability	Growth of labor costs required to implement the production development strategy High costs for attracting and arranging labor resources from the "mainland"

A large place in the structure of the social report of OJSC MMC Norilsk Nickel is given to the analysis of the structure of the compensation package (Fig. 2.1.1) and the dynamics of the average wage.

While maintaining for the period 2005-2009. the share of costs associated with wages, at the level of 33%, in absolute terms, this type of costs increased from 1056 million dollars in 2005 to 2002 million dollars in 2009, or by 89.6%.

In 2009, the average salary of employees of Russian enterprises of the OJSC MMC Norilsk Nickel group increased by 31% compared to 2006 and amounted to 41.4 thousand rubles, which is 3 times higher than the average salary in the Russian Federation and 2.3 times - in the Russian metallurgical industry.

Let's consider the principles of social responsibility of JSC Aeroflot, which is a domestic company for the transportation of passengers by air transport. The social report of JSC "Aeroflot" says that the average salary of employees of JSC "Aeroflot" for the period 2005-2009. increased from 30 thousand rubles. up to 45 thousand rubles In 2009, the growth compared to 2006 was 32.4%.

The structure of additional social payments to Aeroflot employees in 2009 is shown in fig. 2.1.2.

Rice. 2.1.2. Structure of additional social payments in 2009

In 2006, the cost of the social package per Aeroflot employee was 33,768 rubles. For the period 2005-2009. additional social payments to employees of this enterprise increased by 79.5% and amounted to 203.5 million rubles by the end of the period.

.2. Principles of social responsibility of OAO "LUKOIL"

LUKOIL is one of the largest international vertically integrated oil and gas companies. The main activities of the Company are the exploration and production of oil and gas, the production of petroleum products and petrochemical products, as well as the marketing of manufactured products. The main part of the Company's activities in the exploration and production sector is carried out on the territory of the Russian Federation, the main resource base is Western Siberia. LUKOIL owns modern oil refineries, gas refineries and petrochemical plants located in Russia, Eastern and Western Europe, as well as neighboring countries. The Company's products are sold in Russia, Eastern and Western Europe, neighboring countries and the USA /

LUKOIL is the second largest private oil and gas company in the world in terms of proven hydrocarbon reserves. The Company's share in global oil reserves is about 1%, in global oil production - about 2.4%. The company plays a key role in the Russian energy sector, accounting for 18.6% of Russia's total oil production and 18.9% of Russia's total oil refining.

As of the beginning of 2010, the Company's proven oil reserves were 13,696 million barrels, and its gas reserves were 22,850 billion cubic meters, totaling 17,504 million barrels. AD

As of the beginning of 2010, the Company's sales network covered 26 countries of the world, including Russia, CIS countries and European countries (Azerbaijan, Belarus, Georgia, Moldova, Ukraine, Bulgaria, Hungary, Finland, Estonia, Latvia, Lithuania, Poland, Serbia, Montenegro, Romania, Macedonia, Cyprus, Turkey, Belgium, Luxembourg, Czech Republic, Slovakia, Croatia, Bosnia and Herzegovina), as well as the United States, and consisted of 199 oil depot facilities with a total reservoir capacity of 3.13 million m3 and 6,620 gas stations ( including franchising).

Mission LUKOIL

We were created to turn the energy of natural resources for the benefit of man

To promote long-term economic growth and social stability in the regions where the Company operates, to promote prosperity and progress, to ensure the preservation of a favorable environment and the rational use of natural resources

Ensure stable and long-term business growth, transform LUKOIL into the world's leading energy company. To be a reliable supplier of hydrocarbon resources in the global energy market

Goals of LUKOIL

LUKOIL considers its goal to create new value, maintain high profitability and stability of its business, provide shareholders with a high return on invested capital by increasing the value of the Company's assets and paying cash dividends

To achieve these goals, LUKOIL will use all available opportunities, including further efforts to reduce costs, increase the efficiency of its operations, improve the quality of products and services provided, and use new advanced technologies.

In August 2010, OAO “LUKOIL” introduced the Company's Code of Business Ethics (Appendix 3). The Code is a set of the most important rules of business conduct for the Company and its employees, ethical norms for intra-corporate relationships, social responsibility, and other top-priority business ethics issues. The document governs relations between the Company's employees and shareholders and investors of OAO LUKOIL. The Code pays great attention to the disclosure of information that can have a significant impact on the value of LUKOIL's securities (insider information). The understanding of who is an insider is unequivocally determined by a special procedure in the Company, and an updated list of insiders is constantly maintained for whom a special procedure for transactions with LUKOIL securities is established. A separate part of the Code is devoted to the relationship of employees within the Company. In particular, the Code excludes discrimination against employees on the basis of gender, age, race or nationality, religion and political opinion.

LUKOIL employees are encouraged to constantly improve their professional level through the personnel training system, learn new skills, acquire the necessary professional knowledge, and strive to improve the quality of their work results.

The Code also regulates conflicts of interest when, as a result of personal, family and other circumstances, a LUKOIL employee loses or may lose loyalty and objectivity towards the Company. The resulting conflict of personal interests with the interests of the Company will adversely affect its effectiveness, as a result of which the Company has the right to prevent the impact of such conflicts.

The Code defines the rules for dealing with business partners. Thus, LUKOIL declares that it establishes and maintains mutually beneficial relations with any partner if, like the Company, it follows the principles of mutual respect and mutual benefit, honesty and good faith, and strict mutual obligation. At the same time, the Company stands for fair competition and compliance with all applicable competition laws in all countries where it operates.

The Code of Ethics states that LUKOIL employees should never accept gifts, services, payment for entertainment and recreation, monetary compensation or any other benefits that could affect the impartiality and independence of the performance of their duties, as well as the adoption of decisions that are not in the interests of the Company.

The Code of Business Ethics also spells out the rules for relations with government agencies and public organizations, special attention is paid to labor protection, industrial and personal safety, and environmental protection. In accordance with the provisions of the Code, the Company has established a Business Ethics Commission that regulates corporate ethical relations.

“It is important to remember that each of our employees is the face of the Company, their work and behavior supports its reputation and prestige. The Code of Business Ethics is one of the tools for creating such a Company, in which all employees are members of a team of professionals,” said Vagit Alekperov, President of OAO LUKOIL

2.3. JSC "RUSAL" social responsibility program

JSC RUSAL is the world's largest aluminum producer. The United Company, the world's largest producer of aluminum and alumina, was established in March 2007 as a result of the merger of RUSAL, the world's third largest aluminum producer, SUAL Group, one of the world's top ten aluminum producers, and the alumina assets of the Swiss company Glencore. The company includes enterprises for the extraction of bauxite and nepheline ore, the production of alumina, aluminum and alloys, foil and packaging materials based on it, as well as energy assets. More than 75 thousand people work at the company's enterprises on five continents in 19 countries.

The main goal of JSC "RUSAL" is to ensure the sustainable development of the company as a global corporation, a leader in the global aluminum industry. Actively developing our scientific and technical potential and investing in the creation of new environmentally advanced and energy-saving technologies, we continue to increase production volumes through the implementation of projects to modernize existing enterprises and build new plants that meet the highest international standards in the field of ecology, labor protection and industrial safety

JSC "RUSAL" intends to create an international diversified energy and metallurgical corporation, which, using access to energy resources, a powerful research base and the professionalism of employees, will be able to ensure the leadership of the established company in a number of new areas for the extraction of raw materials and the production of metals.

The Company has 16 aluminum smelters, 12 alumina plants, 8 bauxite mines, 3 powder products plants, 3 silicon plants, 3 secondary aluminum plants, 3 foil mills, 2 cryolite plants, 1 cathode plant .

RUSAL enterprises employ about 76,000 people. The company sells its products primarily in Europe, North America, Southeast Asia, Japan and Korea. The main consumers of products are the transport, construction, and packaging industries.

The Code of Corporate Ethics of JSC RUSAL is intended to:

To give each employee an idea of ​​the mission, values ​​and principles of the Company;

Establish standards of ethical behavior that define relationships within the team, relationships with customers, business partners, government agencies, the public and competitors;

Serve as a tool to prevent possible violations and conflict situations, as well as to develop a corporate culture based on high ethical standards.

By accepting the Code, JSC RUSAL confirms its intention to follow high ethical standards of business practice. The provisions and requirements of the Code are the same for everyone and are mandatory for implementation and accounting in their daily activities.

The provisions of the Code apply to RUSAL and to all companies controlled by UC RUSAL. The Code is based on the provisions of the Code of Corporate Ethics adopted by RUSAL on February 7, 2005. Since that time, the text of the Code has been supplemented with several new sections. It contains more detailed explanations of certain provisions and requirements compared to previous versions of the document.

RUSAL's Code contains the following provisions and sections: RUSAL's Mission ; RUSAL values ; Ethical principles and standards of RUSAL, including the following sections : 1. "Internal relationships" (relationships with employees); 2. "Foreign relations" (relationships with investors, customers, business partners, competitors, government agencies, and the public; gifts and hospitality); 3. "Use of resources" ; 4. "Health protection, industrial safety and environmental protection"; 5. "Efficiency and profitability" ; 6. "Conflict of interest" ; Implementation of the Code .

Social responsibility for JSC RUSAL is active participation in the formation of a sustainable economic environment in the regions and countries of its presence, the constant development of relationships with local communities, a full-fledged dialogue with authorities, and the organization of conditions for attracting and professional development of the best personnel. RUSAL's social programs are implemented on a competitive basis, which allows society to get the maximum benefit from the company's social investments. RUSAL considers youth to be a priority target group for its social programs. Organization of extracurricular activities, development of a healthy lifestyle, professional and personal development, volunteering - these are the main areas for the development of the young generation supported by RUSAL.

JSC "RUSAL" offers the "RUSAL Territory" program, which contains three areas of activity:

. "Development of social infrastructure in the regions where UC RUSAL operates". The main goal of this direction is to create opportunities for the implementation of innovative infrastructure projects of organizations and institutions in the social sphere, which significantly improve the quality of life of children and young people in the regions where the company operates.

Support and development of civil initiatives in the local community. Promoting promising ideas of sustainable development among young people through supporting the initiatives, creativity, entrepreneurship of young people, preparing them for active participation in public life. Development of scientific and technical creativity of young people and support for projects in the field of computer technology, robotics and modeling.

Program "Computer for schoolchildren". Implementation of a joint venture with the Volnoe Delo Foundation project "Computer for schoolchildren", which provides for equipping schools with student laptops. As part of the project, student laptops have already been purchased for schoolchildren in the Krasnoyarsk Territory, the city of Novokuznetsk (Kemerovo Region), the Zhovtnevy District of the Nikolaev Region (Ukraine) and the city of Yerevan (Armenia). Further implementation of the project will be carried out on the principles of public-private partnership. Equipping schools in the regions where the company operates, in addition to ongoing school informatization programs, will bring educational institutions among the leaders in informatization and innovative teaching methods.

Operational management of the UC RUSAL social investment program is carried out by the Charitable Organization Foundation Center for Social Programs. By investing in the development of the regions where RUSAL operates now, the potential for economic, social, material and spiritual growth of thousands of people is being created. This means that a stable, free, confident society is being formed.

RUSAL has developed the following partnership programs.

Charity Seasons. Reviving the traditions of charity in the regions, expanding cooperation with non-profit organizations, transferring the social experience accumulated by the Company to the local community - these are the goals of our partnership projects. By joining forces, we can do much more than either one alone. The launch of the first partnership projects in 2006 was an important step in the development of the Company's social policy. Each affiliate program goes through three stages of development. The first is the formation of forms of cooperation: these are fairs of public organizations, partnership competitions, charity seasons that strengthen contacts between people and help joint creativity. The second is the strengthening of partnerships: it is important that the events do not turn out to be one-time events. The third is the development and implementation of partnership projects aimed at solving social problems significant for the region on the basis of joint financing of partners. Among the main pilot projects are the Charity season in the Krasnoyarsk Territory and the action "Good luck, good deeds!" (Bratsk).

The tradition of holding Charity Seasons in Krasnoyarsk was renewed in 2006 on the initiative of the RUSAL Center for Social Programs. This is a large-scale project of the CSP in partnership with regional authorities and public organizations. The project became a notable event in 2007, which was declared the Year of Charity in Russia. In 2007, the Charity Season was already held in three regions where the Company operates: in the Krasnoyarsk Territory, the city of Bratsk and the city of Sayanogorsk.

The charitable season - 2007 was opened by the Spring Week of Kindness-2007 . This action, first held in Krasnoyarsk nine years ago, has long since become the most massive and popular event of the Charity Seasons. Having stepped over the borders of the regional center, it covered the entire region and went beyond it. In 2007, Achinsk, Bratsk, Sayanogorsk, Novokuznetsk and other cities joined the program for the first time. Krasnoyarsk has become a long-distance information and organizational base.

In 2007, as part of the Charity season, a new campaign appeared - the Route of Good Deeds. Its goal is to promote the development of community initiatives through support and recognition of the results of the volunteer activities of local residents. Routes passed in the years. Krasnoyarsk, Achinsk and Sayanogorsk. In remote villages of Mansky and Achinsk districts, with. Kuragino (Krasnoyarsk Territory), in the settlement. Ust-Abakan (Republic of Khakassia) was visited on a voluntary basis by representatives of public associations, local governments and businesses, student volunteer teams. Specialists provided free consultations to the population on legal, medical and social issues and presented social technologies with which active citizens can solve the acute problems of their area. In Ust-Abakan and with. The visiting delegation from Shali visited the Fairs of Public Initiatives, which were prepared by local non-profit associations and initiative groups of citizens. Volunteer groups shared their experience in conducting volunteer actions. Specialists from the Center for Social Programs of RUSAL held a round table where the participants discussed the possibilities of disseminating social design technologies and organizing partnership events in rural areas.

RUSAL is holding a competition of social projects. Small Grant Contests were held in 10 cities where the program was implemented. The competition received 172 applications. In the years Bratsk, Kamensk-Uralsky, Krasnoyarsk, Sayanogorsk, a consolidated budget was formed to finance the competition of social projects. The participants of the competition were organizations with little experience in project activities. As a result, 49 projects received grants totaling 1,804,510 rubles. In Novokuznetsk and Bratsk, on the initiative of the Center for Social Programs, joint projects were organized together with local authorities and representatives of small businesses.

The corporate program of personal donations created by JSC RUSAL attracts the Company's employees to direct participation in charity, provides everyone with simple and understandable mechanisms for personal voluntary assistance to children. On September 1, 2005, RUSAL-UK began to operate an automated program for collecting personal donations. With its help, each employee of the Management Company can transfer funds for charitable purposes without leaving the workplace. During the period from September 1, 2005 to May 2007, employees donated 1,753,745 rubles from their earnings to charitable purposes. After additional financing from the Company - under the terms of the program RUSAL doubles each charitable contribution - the total amount of donations amounted to 3,507,490 rubles. More than 150 people, or about 14% of all employees of the Management Company, constantly participated in the personal donation program. This indicator corresponds to the practice of the developed countries of the world, where from 10 to 13% of employees are involved in the charitable activities of companies. During special fundraising events, up to 40% of the Company's employees participate in the program. Monthly transfers for charitable purposes amount to 150-200 thousand rubles.

JSC "RUSAL" provides employees with voluntary medical insurance (VHI) for employees of all the company's plants. The company also has a salary increase program. Its implementation is impossible without increasing the motivation of each employee, increasing labor productivity. The company's task is to ensure that in the coming years at RUSAL enterprises the level of wages becomes one of the highest in the industry and in Russia, so that employees of the highest professionalism strive to get to work at RUSAL. There is a program to improve the environment, improve labor safety, sports and recreation programs, etc.

Let's consider the program of JSC "RUSAL" in the field of wages. When RUSAL was formed, each enterprise became part of the company with its own remuneration system, and it was necessary to move on to some kind of general procedure. A competitive 10-level remuneration system was created, which is based on a flexible system for evaluating the results of work and the possibility of career growth. The main tasks in the development of the system were: the creation of an internal hierarchy of the company based on a universal system for assessing positions; elimination of disproportions in wages for various professions and unification of requirements for similar positions within the company's enterprises.

The following criteria for assessing positions are defined, developed differently for workers, managers, specialists and employees: professional knowledge and experience; people management, level of analytical thinking, independence in decision-making; level of authority; professional risk. Now not only vertical, but also horizontal career growth is already possible; promotion in the same position for a sufficiently long period of time. For example, a person works with integrity, improves skills, takes initiatives, takes on additional responsibility, and achieves goals. Everything suggests that he deserves a pay rise. But according to the unified tariff scale that was in force earlier, this could be done only by raising him in office or setting any allowances for him. With the introduction of a new wage system, an employee can increase wages within a fairly wide “fork” (horizontally) established for his position, taking into account its market value.

As a result of the introduction of a 10-level wage structure, the relative importance of all positions in the state of the enterprise became clear.

Employees have a real opportunity to increase their salary, because for each level of positions a "fork" has been developed - the minimum and maximum limits that allow a more objective assessment of the contribution of each employee to the overall business result. A flexible approach to remuneration will benefit both the employee, who will have an incentive to work better and get more for it, and the employer, who will not have to complicate the system by introducing individual allowances and additional payments.

The new system makes it possible to eliminate the distortions that exist in the remuneration of workers in the main and auxiliary industries. There is an opportunity to increase the salary of an employee without promotion.

Another plus is the possibility of career growth for specialists, managers and executives based on the results of the annual assessment of their performance.

Consider a housing program. At the enterprises of RUSAL, as well as at other enterprises of the country, there are known problems with housing - mainly with the improvement of living conditions. In order to speed up the resolution of these issues, RUSAL entered into an agreement with the Sberbank of Russia on the provision of a loan at preferential rates for the improvement of housing conditions. Many RUSAL employees expressed their desire to take advantage of this opportunity. For an organized solution of issues related to the possibility of expanding living space to the desired size, workshop housing commissions were created in the subdivisions of the company's factories, whose duties include preliminary work with applicants for a loan and assistance in obtaining it. When lending for the improvement of living conditions, a worker can also take out an interest-free loan in the amount of up to 30% of the cost of housing at his factory. The application indicates the specific amount of the loan and the loan, the approximate maturity of the loan and the loan (the maximum period is 15 years), the area actually occupied by the borrower.

The factory commission, after reviewing the documents, makes a decision on issuing a loan at a reduced interest rate and an interest-free loan, then these documents are sent to RUSAL. After approval by the company, the lists from the factories are sent to the local branch of Sberbank of Russia. At the local branch, the applicant is interviewed and fills out a questionnaire. The branch is negotiating the issuance of a loan at the regional level. After receiving the approval of the regional branch of Sberbank of Russia, the bank transfers money to the recipient's account within two to three days. Credit and loan targeted, they can only be spent on housing.

Consider the program of JSC "RUSAL" in the field of medical insurance. RUSAL entered into an agreement on voluntary medical insurance for 15 Russian enterprises that are part of the holding company with MAKS insurance company. The insurance contract, concluded for five years, provides for a standard package of medical services for all employees, and this is a total of more than 61 thousand people. In the future, the tasks of RUSAL include medical insurance for employees and those of its enterprises that are located outside the Russian Federation. RUSAL treated the choice of the insurer with special responsibility. A tender was held among the eight largest insurers in Russia, and MAKS became the winner of the tender.

The concept of a “standard package of medical services” includes: outpatient care, dentistry, inpatient care, all preventive medical measures that employers are required to carry out at enterprises where there are harmful working conditions, as well as rehabilitation and rehabilitation treatment for those to whom it is indicated.

Let's consider the program in the field of personnel development of JSC "RUSAL". The task of staff development is one of the most important for both RUSAL and the personnel management service of any of its plants. There is a fairly large number of courses of various directions and forms of education. A modern and promising form of education is distance learning. The interest of the staff in the LMS system is constantly growing.

To reach the level of a modern leader, it is necessary to develop the skills of effective people management - a competence that includes corporatism, professionalism, effective communication, decision making, achievement motivation, leadership, use management, change management, strategic approach. Almost all courses contribute to the development of these qualities. Among the available there are courses designed for 5-6 training programs aimed at improving the skills of managing people.

There is training for directors in areas and heads of plant departments. A course on the topic “Personal effectiveness of a manager” was held for directors in areas and heads of SAZ departments. At the same time, 11 managers of the enterprise mastered the skills of effective time management, planning, delegation of responsibility, decision-making, setting goals and their implementation. The leaders were previously assessed using the Assessment Center method, which made it possible to determine individual development programs.

Based on these data, a course of six trainings on

different topics. Training is conducted by trainers of the Moscow company "BEST-training". The effectiveness of the trainings is high. If a person has analyzed, passed through himself everything that he has learned, then he will apply the information received during the training in his daily work. In addition, participants are given material containing abstracts on the topic.

ethical social responsibility management

Conclusion

Based on the analysis carried out, we draw conclusions on the work.

The new management paradigm required a revision of the principles of management, as the old ones cease to "work" in the conditions of entrepreneurial structures. In the 1990s, ethics in business was declared the golden rule of management. Business ethics is a scientific discipline that studies the application of ethical principles in business situations. Business ethics deals with the following issues: the relationship between corporate and universal ethics, the problem of business social responsibility, the application of general ethical principles to specific decision-making situations, ways to increase the ethical level of an organization, the influence of religious and cultural values ​​on economic behavior, and some others. Business ethics is the study of the correspondence between the moral standards of a person's activity and the goals of a business organization. Business ethics is divided into macroethics and microethics. Macroethics is understood as that part of business ethics that considers the specifics of moral relations between both macrosubjects of the social and economic structure of society: corporations, the state and society as a whole, and its parts; under micro-ethics - the study of the specifics of moral relations within a corporation, between a corporation as a moral entity and its employees, as well as shareholders. Management ethics is a category that is present in all other categories of management as a filter that does not let anything unworthy, ignoble, ungenerous into the practice of management, both at the level of an individual manager and at the level of the organization as a whole.

The ethics of business relations in an organization is a system of universal and specific moral requirements and norms of behavior implemented in professional activities. It includes: ethical assessment of the internal and external policy of the organization; moral principles of the members of the organization; moral climate in the organization; business etiquette.

The ethical characteristics of Russian business life are: semi-legal regulation of activities; the power of informal relationships; selective ethics in business relations; use of force methods; independence and detachment from politics; creation of "teams" and centralization of managerial functions; technocracy and paternalism of leadership; workaholism; increased propensity for risk and diversification of activities; high degree of adaptability and responsiveness; restrained attitude towards charity. It is possible to stop the development of negative trends under the following conditions: improvement of economic legislation, improvement of the socio-political situation, as well as the targeted development of a system of practical measures to form an appropriate business culture of domestic producers.

Corporate social responsibility is understood as a model of strategic behavior of corporations, in which programs of socially responsible initiatives are developed and implemented, directly in the field of economic activity, as well as in environmental and social spheres. Social responsibility is a concept that reflects the voluntary decision of companies to participate in improving society and protecting the environment. Some countries have already made corporate social responsibility an open and highly effective public policy tool. The principles of social responsibility are not always implemented by Russian business, however, under pressure from the public, they are gradually beginning to enter into the practice of its activities. In Russia, the process of development of corporate social responsibility is at an early stage and takes place in the conditions of the dominant positions of the state, the extremely weak development of civil society institutions, the oligarchic development of business and the rules for the interaction of these institutions, the role of individual parties and the measures of their participation in social development are only being formed. At present, in Russia, the policy of social responsibility and the strategy of participation in the life of society are mainly thought of by large national companies and divisions of international companies. The most well-known socially responsible companies are the largest Russian corporations - OJSC MMC Norilsk Nickel, OJSC Aeroflot, OJSC Lukoil, Rusal, OJSC Severstal, AFK Sistema, Gazprom and others.

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LUKOIL -URL:

RUSAL -URL:

Attachment 1

Procter & Gamble Corporate Code Structure

Declaration of the company's goals.

Compliance with the laws and rules of business ethics and conduct by the company's employees.

ethical principles.

Conflict of Interest Policy.

Confidential or Company Proprietary Information.

Behavior in the workplace.

Bribery for commercial purposes.

Occupational Safety, Health and Environment Policy.

Honesty in dealing with customers and suppliers.

Reliability of company records.

Government as a customer.

Relationships with government officials.

Annex 2

Table 1. Modern principles of interaction between business and society

Principles	Types of business activities	Violations of business principles	Society's reaction to business actions
Awareness of public mission businesses	Definition of flexible goals: why the company exists, what kind of business should be engaged in, how we will provide customers today and in the future. Justifying the high mission by developing an appropriate set of firm values	Deviations from general goals. Lobbying their interests in the authorities and management. Pressure on the government and state officials. Excessive political influence of business that defends the interests of industries, not society	Loyal attitude of society to business in case of their interests coincide. An unfriendly attitude of society towards business when it violates public interests (in case of harm)
Consumer Orientation	Establishing, serving and meeting the needs of consumers and clients, as the company is an organization for everyone. Creating healthy and desirable products for customers. Informing buyers of their rights. Improving the quality and standards of people's lives. Recall of substandard goods from trade	Misleading buyers. False advertising with bait. The imposition of substandard and unsafe goods to buyers through agents. Poor customer service. Excessive markups on branded goods of the company	Requirements to limit the harmful effects in the activities of the company. State restriction of the company's activities in case of adverse effects on the buyer. Organization of a public movement for the protection of consumer rights
Maintaining the value of the product	Guarantees of quality and safety of goods and services. Adding new items and removing old ones. Reflection of the truth on the packaging and labeling of goods about the quality and expiration dates of goods. Ensuring the specified parameters of goods. Information about the introduction of new materials into the product to reduce the price	Use of scarce natural resources for product packaging. Excessive packaging cost. Sale of goods at a dumping or fixed price. Selective discounts and markups for various buyers. Compulsory assortment agreement. Environmental pollution and product quality degradation	Legislative and administrative influence on economic entities through state and public controlling organizations
innovative marketing	Creating products with a benefit that the buyer is waiting for and that no competitor can provide. Expansion of the company by developing new tozars. Complete customer satisfaction. Ensuring consumers' rights to information and protecting them from dubious and counterfeit goods	Fraudulent price gouging. Theft of professional secrets. Exclusive dealership in specified territories. Maintaining a shortage of socially necessary goods. Artificial stimulation of passion for things through advertising. Transferring large production and advertising costs to buyers	Using the right of self-defense of buyers through the media, government, judicial authorities and public organizations in accordance with the existing legislative acts of the state
Socio-ethical responsibility of business to society L. ..	Introduction of norms of respectable behavior of firms in the market. Establishing strict rules for all market participants without excluding anyone. Protection of patent rights of business entities. Use of advertising messages to buyers without deception. Satisfaction of the material and spiritual needs of the personnel of firms. Ensuring the safety, mutual respect and honor of the personnel of firms, shareholders and competitors	Immoral, immoral behavior of economic entities for the sake of obtaining momentary benefits. Pollution of the environment and subsoil. Offering bribes to clients and government officials. Destruction of competitors and weakening of competition. Predatory competition and barriers to entry for new firms	Organization of the movement for the protection of the natural environment. Appeal of the population to the court, state and public regulatory authorities for the protection of life and health of people, the environment and subsoil

Annex 3

Social Code of OAO "LUKOIL"

Open Joint Stock Company Oil Company LUKOIL is a responsible corporate member of the company and a conscientious participant in the market economy. Combining these two missions, OAO LUKOIL (hereinafter referred to as the Company) voluntarily and on its own initiative assumes the following obligations for socially responsible behavior towards all parties whose interests are affected by the Company's activities.

The implementation of these obligations (terms of introduction, amounts of financing, etc.) is carried out in the course of collective negotiations with the trade union association of the Company and is fixed in the Agreement between the Company and the trade union association, as well as in local regulations.

The principles and norms laid down in this Social Code are obligatory for the Company, its subsidiaries and non-profit organizations controlled by it (hereinafter referred to as the LUKOIL Group). By accepting the Social Code, the Company confirms that these obligations:

are predominantly additional in relation to the legislation of the Russian Federation and international standards;

do not cancel or replace the results of collective bargaining with employees; are addressed both to employees, non-working pensioners of LUKOIL Group entities, shareholders of the Company, and, in a broader sense, to commercial partners, the state and civil society;

based on economic calculation, confirmed in the face of shareholders and business partners;

designed for solidarity initiative actions of market participants and partnerships with the state and society;

will be periodically reviewed in the course of collective bargaining on the conclusion of the Agreement between the Company and the trade union, with subsequent approval of the necessary changes at a meeting of the Board of Directors of the Company.

The Company will take all measures to fulfill its obligations contained in this Social Code, regardless of the prevailing economic situation in the country and in the world.

Part I. Corporate social guarantees for employees and non-working pensioners of LUKOIL Group entities

Observing the fundamental principles and rights in the sphere of labor, other international labor standards, the labor legislation of the Russian Federation and host countries, the Company sets itself higher social targets in the following areas:

1. Socially responsible regulation of labor, employment and industrial relations

1.1. Socially responsible restructuring

1.2. Taking into account the scale of employment of the population in the LUKOIL Group entities and the single-production nature of many areas of their operation, the Company undertakes to take a socially responsible approach to the restructuring of its divisions and controlled entities, as well as to the delocalization of production.

1.3. In case of mass dismissal of employees, in addition to complying with legally established standards, the Company will strive to:

take all measures for the maximum possible employment of laid-off employees in the organizations of the LUKOIL Group;

together with federal and regional government authorities, take measures to mitigate the consequences of the delocalization of production for the regional labor market, including advance notification of the plans of LUKOIL Group organizations to reduce jobs, finance retraining of workers, and create new jobs;

take part in the implementation of programs for the resettlement of workers and their families in other regions in the event of the closure of production in single-industry settlements, including using the mechanisms of corporate mortgage lending for the purchase of housing.

1.2. Remuneration and motivation policy

Given the fundamental nature of the policy of remuneration and labor motivation in relations with employees, the Company will build it on the following principles:

unity of the policy of remuneration and labor motivation for all organizations of the LUKOIL Group;

establishing a minimum guaranteed level of wages in LUKOIL Group entities for all professional and qualification groups of employees at a level exceeding the legally established minimum wage, based on the need to satisfy basic life needs and provide a certain disposable income;

"transparency", objectivity and competitiveness of the system of remuneration and motivation of employees;

regular indexation of wages based on the consumer price index;

periodic increase in wages in connection with the growth of labor productivity;

the use of flexible bonus systems in order to take into account the employee's individual labor contribution to the fullest extent possible.

1.3. Industrial safety, labor and environmental protection

Given the strategic goal of the Company to maintain industrial safety, labor protection and the environment in all divisions and controlled organizations at the level of the world's leading oil companies, the Company takes the following measures:

observes the principle of priority of preserving the life and health of the employee in relation to the results of production activities;

ensures the fulfillment of the obligations set out in the corporate Policy in the field of industrial safety, labor protection and the environment in the XXI century;

creates and maintains a local regulatory framework, organizational structure and financing mechanisms for the industrial safety, environmental and labor protection management system based on constantly improved norms and standards;

creates favorable opportunities for public control;

constantly identifies and investigates sources of danger and harm to human health and life associated with the production of LUKOIL Group entities, and takes measures to eliminate them or mitigate their effect;

uses advanced technologies and management methods to reduce waste generation, minimize adverse environmental impacts and conserve natural resources;

constantly improves production tools, based on world experience in the development and implementation of safe technologies and equipment;

observes the priority of preventive measures for environmental protection at all stages of the production cycle;

timely informs all interested parties about cases of pollution, spills of oil and oil products;

takes measures to consistently reduce the amount of emissions, discharges of pollutants and waste, reduce their toxicity, regardless of the dynamics of production volumes through the use of modern environmental technologies, equipment, materials and management methods;

monitors compliance by contractors performing work for LUKOIL Group entities with principles and norms in the field of industrial safety, labor protection and the environment, not lower than those provided for by the Company;

maintains an open dialogue with all stakeholders, including the critical public, and regularly publicly informs about the results of the Company's environmental activities.

The company consistently strives to provide:

safe and ergonomic organization of all workplaces in the organizations of the LUKOIL Group;

functional and high-quality special clothing and footwear for all employees involved in production;

clean drinking water for employees of LUKOIL Group organizations at all workplaces and in rotational camps;

necessary sanitary and hygienic and living conditions at the workplace;

the opportunity for employees to receive high-quality hot meals at all facilities of the LUKOIL Group.

1.4. Social policy for young workers

Considering that the sustainable development potential of LUKOIL Group entities depends on the influx of qualified and competent young employees, the Company is constantly pursuing a policy aimed at:

creating jobs for young workers;

combining the work responsibilities of young workers with the possibility of continuing education, advanced training and professional development;

assistance in providing housing for young workers and their families;

development of financial assistance programs for the relocation and settling of a young employee and his family at a new place of work in the organizations of the LUKOIL Group.

2. Quality of working and living conditions for workers and their families

Recognizing the responsibility for creating decent working and living conditions for employees and their families, the Company takes proactive actions, primarily in the following areas:

2.1. Health protection

In order to preserve and strengthen the physical and psychological health of each employee, the Company carries out the following work:

provides funding for activities aimed at protecting the health of employees;

ensures the development and implementation of corporate standards for the organization of medical care at work for employees of LUKOIL Group entities, guided by Russian legislation and international standards in the field of health protection;

organizes accounting and analysis of employees' morbidity, causes of disability and mortality in LUKOIL Group entities;

ensures monitoring of working conditions and health of employees of LUKOIL Group entities to assess occupational health risks;

based on the results of periodic medical examinations and analysis of morbidity, develops long-term and annual programs for the prevention of general morbidity and the improvement of workers, including preventive vaccination and sanatorium treatment;

organizes regular preventive examinations of employees;

allocates targeted funds to provide health resort treatment for employees;

exercises control over the targeted and specialized protection of the rights of pregnant women, nursing mothers, mothers of many children, as well as women of reproductive age working in LUKOIL Group entities in harmful and dangerous conditions.

Contributing to the development and maintenance of a healthy lifestyle, the Company:

develops and implements comprehensive programs for the improvement and involvement in physical education and sports of employees and their families living in difficult climatic conditions;

conducts physical culture and health-improving work and develops mass sports among employees and their families, providing them with access to sports infrastructure, organizing training and competitions;

creates an opportunity for employees to purchase vouchers for sanatorium and resort treatment for themselves and their family members, which are cheaper at the expense of the funds of LUKOIL Group organizations;

assists in the organization of summer holidays for the children of employees, partially compensating the cost of vouchers and / or travel;

organizes leisure activities for employees and their families at the corporate level;

conducts systematic promotion of a healthy lifestyle and preventive medical measures among employees using corporate media.

2.3. housing policy

Given the severity of the housing problem and the economic inefficiency of solving it entirely at the expense of the employer, the Company will build its housing policy based on the following principles:

ensuring personnel mobility of employees of LUKOIL Group entities;

ensuring comfortable living conditions for employees in dormitories and shift camps;

provision and availability of housing loans for each employee of a LUKOIL Group organization;

organizing a system of corporate long-term mortgage lending based on the principles of self-sufficiency, without diverting financial resources from the production turnover of LUKOIL Group entities;

protecting the interests of the employee within the framework of the corporate mortgage system from negative macroeconomic factors;

ensuring the repayment of issued mortgage loans under the guarantees of the employee's individual savings in corporate insurance systems;

use of mortgage lending opportunities in the programs of resettlement of non-working pensioners of LUKOIL Group organizations and members of their families from the Far North and unpromising regions, subject to legal security for the repayment of mortgage loans issued.

3. Harmonious combination of work and family responsibilities

Recognizing the importance for human life of harmonizing work and family responsibilities and following in its practice the norms of the Convention of the International Labor Organization No. 156 (employees with family responsibilities), the Company assumes the following additional obligations:

3.1. Additional days of rest and vacation

In addition to the norms of labor legislation, the Company provides:

monthly additional paid day of rest for employees of LUKOIL Group entities located outside the regions of the Far North and equivalent areas; additional paid leave for mothers with many children;

short-term leave, both paid and unpaid, due to family circumstances.

3.2. Social support for families with children and disabled people

Given the fact that wages do not depend on the number of dependents in the family, the Company provides employees with the following cash payments and compensations:

a one-time allowance at the birth (adoption) of a child;

monthly allowance for an employee (mother or father) who is on parental leave until the child reaches the age of 3 years;

annual material assistance to employees with disabled children under 18;

compensation for low-income families with three or more minor children, as well as for the children of employees who died or lost their ability to work at work, for the cost of keeping children in preschool institutions and health camps;

partial compensation of the cost of vouchers to sanatoriums and children's health centers for disabled children and orphans of employees of LUKOIL Group entities.

4. Corporate social security and insurance

In compliance with the obligations to participate in state social insurance systems and provide all employees with mandatory social protection, the Company maintains and develops additional corporate social insurance and social security in the following forms:

4.1. Voluntary health insurance

Corporate voluntary medical insurance aims to increase the availability, volume and quality of medical care and services provided to employees of LUKOIL Group entities and is based on the following principles:

adherence to the provisions of the adopted Corporate Health Protection Standard;

financing of the voluntary medical insurance program;

ensuring constant non-departmental quality control of medical care in order to protect the interests and rights of employees in a medical institution.

4.2. Non-state pension provision

The long-term goal of non-state pension provision for employees of LUKOIL Group entities within the framework of the corporate pension system is to increase the level of compensation for lost earnings. The Company believes that a cost-effective way to achieve this goal should be based on the implementation of the following principles:

maintaining and developing a unified system of non-state pension provision for employees of LUKOIL Group entities at the expense of the employer;

creation of conditions for the development of the employee's equity participation in the formation of their own pension savings;

implementation of a gradual transition from the current unified system of non-state defined benefit pensions to a system with defined contributions, which means linking the size of the pension with the amount of contributions made on the basis of equity participation;

guaranteeing the safety and increase of pension savings;

the admissibility of using pension savings before the onset of pension grounds solely for the purpose of guaranteeing the repayment of borrowed funds in the framework of corporate mortgage lending.

4.3. Corporate system of personal insurance

Personal insurance of employees is being developed by the Company at the corporate level in order to expand employees' access to insurance services and increase the level of protection for their families in case of accidents. The Company develops and maintains at least the following types of personal insurance at the corporate level:

additional personal insurance against industrial accidents; critical illness insurance; life insurance in case of death for any reason. All types of personal insurance within the framework of the corporate system can be carried out with the employee's share in their financing, with the exception of additional insurance against industrial accidents, which is financed at the expense of the employer.

The Company also provides employees with free information and consulting services to expand their insurance coverage and protect their interests in the insurance services market.

5. Social support for disabled and non-working pensioners of LUKOIL Group entities

Given the socially vulnerable position of persons receiving state pensions and the relatively low level of pension payments at the initial stage of development of the corporate pension system, the Company pursues a policy aimed at social support for non-working pensioners of LUKOIL Group entities:

5.1. Social support for non-working pensioners

In order to help maintain the standard of living of employees of LUKOIL Group entities retiring during a difficult transitional period, the Company undertakes to: pay a one-time allowance to a retired employee;

provide regular financial assistance to non-working pensioners who do not receive non-state pensions from LUKOIL Group entities;

preserve the rights of participation of non-working pensioners in the corporate system of voluntary medical insurance.

5.2. Social support for victims of industrial accidents and occupational diseases

Striving for the social and labor rehabilitation of employees who have become disabled due to an accident at work or an occupational disease while working in LUKOIL Group entities, the Company, on its own initiative, provides them with:

full compensation of expenses for special medical care and annual spa treatment;

material and organizational support for prosthetics abroad in the absence of the opportunity for this in the country of residence of the employee.

5.3. Social support for non-working disabled people

The Company undertakes the following additional obligations to provide social support to persons with disabilities who became disabled while working in LUKOIL Group entities and left their employment:

retaining the right to participate in the corporate system of voluntary medical insurance;

provision of vouchers for sanatorium treatment with partial compensation of their cost.

Part II. Socially responsible participation of the company in society

Realizing the new social responsibility of business in the context of the growing inequality of the population in access to decent work and benefits, the Company assumes voluntary obligations for socially responsible participation both in the life of the local population in the regions where LUKOIL Group entities operate, and in society as a whole.

1. Development of single-production settlements

Taking into account the fact that the largest organizations of the oil-producing sector of the LUKOIL Group are city-forming in their areas of operation, the Company builds its activities on the following principles:

mutually beneficial cooperation with regional state authorities and municipal authorities for the benefit of the socio-economic development of the territory;

development of compensatory activities of oil producing organizations of the LUKOIL Group as subsoil users;

socially responsible behavior both in the face of employees of LUKOIL Group entities and the local population as a whole.

Developing production facilities in such areas and creating high-quality working and living conditions for its employees, the Company is ready to take a share in the repair, reconstruction of social and cultural facilities for the needs of the population of the regions.

2. Environmental activities

The Company, being a major subsoil user, is aware of its responsibility to society for the preservation of a favorable environment, the rational use of natural resources, and also counts on the understanding by society of the complexity and scale of the tasks facing the Company in this area, for which:

provides periodic information and maintains an open dialogue with all stakeholders in the Company's activities in the field of industrial and environmental safety, publishes reports on its activities, on the results of environmental impact assessment, personnel and population;

encourages understanding of health and environmental issues among shareholders, partners and the population living in the areas where LUKOIL Group entities operate.

3. Development of science, education, technology and innovation

Realizing that the competitiveness of the Company depends on a scientific approach to the development of natural resources, the development of a scientific and technical base for the development of new technologies and materials, the quality of professional training of employees, the Company constantly contributes to the development of scientific potential and improving the quality of education by:

financing of research and pilot works in the field of exploration and development of hydrocarbon deposits, development of innovative technologies and materials, reduction of production costs, improvement of environmental safety of production and in many other areas of the oil and gas industry;

providing financial support to specialized regional educational and research programs and projects;

strengthening the material and technical base of specialized educational institutions of vocational education and educational departments of LUKOIL Group organizations;

organization of competitions of scientific and technical developments among young scientists and specialists;

providing organizational and financial support to postgraduate and doctoral students working in LUKOIL Group entities;

financial incentives for young people studying in specialized educational institutions of vocational education.

4. Preservation of national and cultural identity

Highly appreciating the additional opportunities provided by the Company with the richest national and cultural diversity of its employees and the population living in the areas where LUKOIL Group entities operate, the Company builds its work with personnel and the local population on the following principles:

preserving and maintaining the traditions of national tolerance and benevolence inherent in the multinational oil industry;

creation of conditions for the preservation of national and cultural traditions, values, arts and crafts in the areas where LUKOIL Group entities operate;

respect for the religious beliefs of workers and the local population and assistance in the revival of national religious shrines;

promoting indigenous peoples' access to vocational training, skilled jobs, higher education, and better recreational and health conditions. To this end, the Company takes, to the extent possible, the following steps:

partial compensation of the cost of summer health-improving holidays for the children of employees who are representatives of small indigenous peoples, including travel to and from the place of rest;

payment for education of students representing small indigenous peoples in universities in the field of oil and gas profile;

assistance in the restoration of national historical monuments;

assistance in the restoration and construction of places of worship of various faiths in the areas where LUKOIL Group entities operate;

providing material and organizational support to folk art groups, children's art houses and other organizations developing folk arts and crafts;

assistance in organizing competitions, festivals, concerts of folk art;

assistance in organizing the trade in souvenirs, folk art products, products of traditional crafts in large cities in order to provide financial support to small businesses among indigenous peoples.

5. Support for culture and sports

Realizing the fundamental role of patronage and sponsorship for the development of culture and sports in a market economy, the Company seeks opportunities to provide material support:

creative individuals and groups, theaters, museums;

sports teams of various levels - from yard to national teams;

public organizations supporting children's sports.

6. Assistance to social groups and public associations in need of support

Recognizing the need to form a mature civil society as an active and independent party in negotiations between the state, business and society, the Company, to the extent possible, provides material and organizational support:

public organizations of veterans in order to support a social group that finds itself in a difficult financial situation in the context of the transition to a market economy;

public associations of veterans and/or family members of military personnel who took part or died in military conflicts or in the course of law enforcement activities;

public organizations of the disabled in order to create an environment for the full life of people with disabilities;

public associations and their initiatives in favor of orphans, street children, refugee children;

public associations of refugees.

7. Charitable activities of the Company and employees

Recognizing the enduring value of charitable activities in any society and the special need for it by some organizations and people in a difficult transition period, the Company uses the available opportunities to provide charitable assistance:

individuals - refugees, labor veterans, disabled people, orphans, families of fallen soldiers and officers, families of employees of LUKOIL Group organizations who died at work, and many others;

state budgetary organizations of a social orientation that find themselves in a difficult situation - hospitals, orphanages, nursing homes, educational institutions and institutions of science and culture;

religious and charitable organizations. The Company considers caring for orphans to be one of the priorities of its charitable activities.

Funds for charity are received both from the funds of LUKOIL Group organizations and from personal funds of employees.

Part III. Economic basis of social initiatives

Being a conscientious participant in free competition and an effective owner, the Company assumes economically justified social and ethical obligations, which it intends to fulfill using the following economic sources and mechanisms:

1. Implementation of continuous control over social spending

The Company provides in its organizational structure a unified centralized system for accounting, analysis and monitoring of the Company's social costs in order to constantly control social costs, conduct their socio-economic expertise and predict the consequences of all changes introduced in this area.

1.1. Control mechanisms for corporate pension spending

Corporate pension spending is controlled at three levels:

from the participants of the pension program (employees and pensioners) - according to the state of pension accounts and on the basis of the participation of employees' representatives in the Supervisory Board of the Pension Fund and the Commission for the organization of non-state pension provision;

on behalf of shareholders - according to the results of financial statements and audit reports; in the system of state supervision - based on the results of financial and special reporting of the Company and the Pension Fund, audits and inspections of the relevant state bodies, as well as on the results of actuarial valuation of the Pension Fund and the pension program of the Company.

1.2. Control over the consumption of medical services in the corporate health care system

In order to curb unjustified growth in medical expenses for employees and pensioners under the voluntary medical insurance program, the Company:

carries out through the medical insurance company with which it interacts, a three-stage expert control of the volume, timing and quality of the medical care provided, including a medical and economic examination of the accounts of medical institutions, a planned and targeted examination of the quality of medical care, as well as an examination as part of the work to protect the rights of insured workers and pensioners of LUKOIL Group entities;

requires from the medical insurance company with which it interacts, when agreeing on the amount of financing, to provide a report containing an analysis of the consumption of medical services by insured employees and pensioners of LUKOIL Group organizations.

2. Optimization of social infrastructure content

The Company recognizes that non-core social infrastructure can only be placed on the balance sheet of a commercial enterprise if there is an urgent need to fill the shortcomings of the private and public sectors in a given locality or industry. In this regard, when addressing issues of maintenance of social and other non-production facilities, the Company uses the following approaches, taking into account local conditions:

2.1. Forms of participation in the maintenance of social facilities

The company is committed to:

to the transfer to the balance of municipalities of existing or newly built social infrastructure facilities wherever it can be guaranteed that the profile of the facility, the level of access of personnel and the local population to services and the proper maintenance of the facility can be guaranteed;

to keep on the balance sheet of LUKOIL Group entities those social infrastructure facilities that are in demand by employees and their families, replenish the infrastructure or range of services missing in the area, or otherwise increase the protection of the interests, rights and funds of employees;

to ensure priority in the provision of services to employees and pensioners of LUKOIL Group entities by health-improving institutions on their balance sheet;

to the flexible use of equity participation of LUKOIL Group organizations in the repair, reconstruction, construction and maintenance of social infrastructure facilities, including equity participation in ownership.

3. Increasing the efficiency of the production of social services

Following modern trends in production management and respecting the freedom of individual choice of the consumer, the Company strives to minimize the production of social and other services and goods that are not related to the main production on its own. To this end, the Company uses the following approaches:

3.1. Outsourcing of social service providers on a competitive basis

The company is committed to the widespread use of outsourcing to meet the many social needs of the staff, attracting independent contractors and suppliers on the basis of fair competition. The Company recognizes that outsourcing:

reduces the internal costs of the organizations of the LUKOIL Group;

maintains the level of protection of interests, rights and funds of employees in the service market; expands the freedom of choice for the consumer; promotes the development of the local market for services and goods;

contributes to the improvement of the price-quality ratio through fair competition. The Company is also aware that the use of outsourcing is limited to regions with developed service markets, which requires that in many remote areas of activity of LUKOIL Group organizations the production of social services on their own or even insourcing be carried out to restore equal access of employees to corporate social guarantees.

4. Implementation of co-financing principles

The Company recognizes the fact that combining various sources of financing for the production of social benefits creates a sound basis for a dialogue of equal parties, self-responsibility of the employee, and mutually beneficial cooperation with the state. In this regard, the Company is developing the following types of co-financing:

4.1. Equity participation of employees in corporate social insurance and security

An employee's insurance contribution to the corporate insurance or security system in an equal or smaller proportion compared to the employer's contribution:

strengthens the position of employees in the management of insurance funds;

legitimizes the essence of the insurance premium as a deferred wage;

increases the predictability of the size of payments for the employee;

increases the self-responsibility of employees;

ceteris paribus increases the level of insurance coverage.

To this end, the Company organizes a systematic transition to joint financing with employees:

corporate pensions and

corporate personal insurance.

4.2. Joint payments of employees, members of their families and the local population for the use of the social infrastructure of LUKOIL Group entities

LUKOIL Group entities may establish different levels of payment for services provided at their social infrastructure facilities for employees, their family members and the local population. This approach allows:

take care of the employees of LUKOIL Group entities;

establish control over the consumption of services;

reduce the costs of the organizations of the LUKOIL Group for the maintenance of facilities;

ensure continuous development and expansion of the range of services. Payment by the local population for the services provided should be set at a level that does not hinder access to the social infrastructure of the LUKOIL Group organizations, especially in areas where it replenishes the missing municipal infrastructure.

4.3. Long-term housing lending (mortgage)

In order to expand the possibilities of solving the most acute and capital-intensive social problem - providing employees and their families with decent housing conditions - the Company strives to develop the most cost-effective tool - long-term mortgage lending.

The development and practical implementation of this type of lending within the corporate system allows:

increase the attractiveness of work in the organizations of the LUKOIL Group;

refuse to maintain the housing stock on the balance sheet;

give new impetus to resettlement programs from unpromising areas;

not divert funds from the production turnover of LUKOIL Group entities;

achieve the necessary level of trust between the borrower and the lender;

control and influence the loan repayment process;

attract investment in regional housing construction.

4.4. Equity participation in socio-economic development programs provided for by municipal, regional and federal budgets

In its relations with federal, regional authorities and local authorities, the Company strives for partnership cooperation for the benefit of the integrated socio-economic development of the regions where LUKOIL Group entities operate and the creation of a favorable business climate in them. Taking into account the diversity of geographical, socio-economic, demographic and other living conditions in the regions where LUKOIL Group entities operate, the Company strives for a flexible approach in finding opportunities for co-financing, complicity, sharing responsibility with the state and local government in the course of the socio-economic development of the regions. For these purposes, the Company uses the following opportunities:

equity participation in social programs of the federal, regional and municipal levels, relating primarily to single-production (oil and gas) settlements, unpromising areas, regions with harsh climatic conditions;

economic methods - placing orders with local suppliers and manufacturers, coordinating the volume of supplies of fuel and lubricants, participating in the development of transport infrastructure through the construction of gas stations, and much more;

providing access for the local population to the social infrastructure of LUKOIL Group entities;

charitable activities.

5. Multiplication of intangible assets

The Company recognizes the fact that in the modern world, socially responsible behavior in the face of employees and society as a whole, ultimately serves to increase the Company's capitalization. In this regard, the Company considers many social expenses as investments in intangible assets and strives to meet the highest standards over time in the following areas that are strictly assessed by the public:

5.1. Socially responsible investment

By investing in securities and material production, the Company, without undermining the economic essence of this operation, seeks to take into account ethical and social aspects. The Company strives to ensure that its investments contribute to:

improving the social protection of employees;

building a fairer and more sustainable economy;

conservation of the natural environment;

reducing inequality between people. The Company is committed to the necessary awareness and caution in order to resist the accumulation and use of capital derived from the use of forced labor, child labor, drug trafficking, damage to human health and the environment.

5.2. Social aspects of business reputation

The company is convinced that the social aspect is becoming increasingly important for business reputation and supports the spread of this trend in the business world.

The company strives to ensure that its symbols and trademarks are associated by the general public with socially responsible behavior in general and specific social initiatives and projects in particular.

5.3. Socially responsible relationships with contractors and suppliers

Realizing that modern standards of relations between business and society require the Company to be responsible for the actions of its suppliers and contractors, the Company approaches their choice responsibly.

The current scale and branching of economic relationships in this regard require the Company to have a special system of accounting, selection and monitoring, which the Company undertakes to develop. At the same time, the main criteria for the Company's selection of suppliers and contractors include:

their observance of the fundamental principles and rights in the sphere of labor adopted by the International Labor Organization, as well as the international standard "Social Responsibility 8000";

implementation of an effective policy in the field of industrial safety and environmental protection.

Final provisions

In confirmation of the stability and seriousness of the obligations assumed for socially responsible behavior, the Company puts into action a mechanism for internal control, both managerial and trade union, over compliance with this Social Code. The Company also confirms its readiness for various types of external control by society, including participation in reviews, competitions, both state and public, as well as organizing negotiation platforms with a critical public that has the moral right to demand a dialogue with the Company. Realizing that a unilateral acceptance of social obligations by a commercial enterprise in a competitive environment is impossible, the Company relies on the solidarity of other market participants and interested cooperation on the part of the state.

Appendix 4

RUSAL Code of Corporate Ethics

RUSAL'S MISSION

Our mission is to be the most efficient aluminum company in the world that we and our children can be proud of.

Through the success of RUSAL - to the prosperity of each of us and society.

RUSAL'S VALUES

In our Company we especially appreciate:

· Respect for the personal rights and interests of our employees, customer requirements, terms of interaction put forward by business partners, society.

· Fairness, which implies remuneration in accordance with the results achieved and equal conditions for professional growth.

· Honesty in dealing with and providing information necessary for our work.

· Efficiency as consistently achieving maximum results in everything we do.

· Courage to confront what we do not accept, as well as to take personal responsibility for the consequences of their own decisions.

· The care shown in our desire to protect people from any harm to their life and health and to preserve the environment around us.

· Trust in employees, allowing to delegate authority and responsibility for decision-making and their implementation.

By following our values, we will be able to maintain the corporate culture necessary to achieve the highest level in all our business endeavors.

Our values ​​are reflected in our success, are binding on us and offered to all who cooperate with us. We do not deviate from our values ​​for the sake of profit. We perceive them as a link in all areas of our activity and expect the same in our relationships with our business partners.

RUSAL ETHICAL PRINCIPLES AND STANDARDS

RUSAL's ethical principles and standards are based on the Company's values, respect for the rule of law and compliance with laws. They regulate internal and external relations; use of the Company's resources; behavior in situations related to the occurrence of a conflict of interest. These principles apply to each UC RUSAL company, as well as members of the Board of Directors and employees of each company within UC RUSAL.

FOREIGN RELATIONS

Relations with investors, clients, business partners, competitors. All our relations are based on the principles of partnership and mutual respect. Fair dealing is the basis for all our transactions and relationships.

We always fulfill our obligations and expect fulfillment of obligations from our partners.

We are interested in the sustainable development of our business and the business of our partners.

We strive for long-term and mutually beneficial cooperation and believe that relationships with business partners based on respect, trust, honesty and fairness are paramount to our success.

We focus on customer needs and guarantee the high quality of our products and services, stability and predictability.

The Company has adopted a system for processing applications and proposals, which helps to deal with situations where our high standards are called into question.

We value our reputation, strictly comply with the rules and regulations of business ethics and law.

We assume that our business partners also maintain high ethical standards. Agents, representatives and consultants of the Company must confirm their willingness to act in accordance with the adopted policies and procedures of the Company and not violate our principles and values. Where possible, we promote the adoption of our values ​​and principles by the companies in which we invest.

We compete fairly. We do not accept or make illegal payments in any form. We do not use or threaten to use unethical or unfair means to influence our partners or competitors.

We are committed to complying fully with laws and regulations regarding the fight against money laundering. We do business with clients and business partners who are in good standing and who are engaged in legitimate business activities, whose funds come from legitimate sources. When establishing a relationship with a new business partner, we conduct appropriate due diligence to ensure that they meet the specified criteria.

We provide full support to the Company's external auditors.

The Company's managers and employees always provide reliable financial information to the Company's external auditors who conduct audits or evaluate financial performance. None of the managers or employees of the Company takes direct or indirect actions that may influence, mislead or deceive the external auditors of the Company.

B. Relations with society. We view social investment as an essential element of the sustainable development of the countries and regions where we operate. Multilateral dialogue with local communities is an obligatory element of the Company's social activity at all its stages.

We develop and support local social initiatives aimed at improving the quality of life of people in the regions where the Company operates.

We welcome the participation of employees and their families in the company's social initiatives and create the necessary conditions for this.

We provide equal opportunities for participation in our social programs and use transparent mechanisms for financing social activities, involving a competitive selection of projects and clear criteria for their evaluation. Information about our social programs is open to every member.

B. Relations with public authorities. We strive to build and maintain healthy, constructive and open, excluding conflict of interest, relationships with government agencies, officials and other representatives of government on a legal basis:

We do not attempt to dishonestly influence the decision-making of public authorities or officials.

We follow all laws and requirements applicable to our activities in each country where the Company operates, as well as the guidelines adopted by the Company. We are faithful to both the letter and the essence of these laws and guidelines.

We pay taxes on time and in full.

The company does not take any direct or indirect part in political movements or organizations.

Employees may take part in political activities as they see fit, on their own time and at their own expense. The Company will not make any remuneration or compensation for this activity or its costs either directly or indirectly.

We provide complete and reliable data on the Company's activities and are ready to provide a breakdown of all indicators of the Company's activities. No employee will ever even consider the possibility of misrepresenting facts or misrepresenting information.

In cases where disclosure of information about the Company's activities is required in various reports and documents provided by it to the authorities exercising control over securities, or in any other documents for general use, we guarantee the accuracy, objectivity, relevance, timeliness and reliability of this information. .

D. Gifts and hospitality. Gifts, favors and hospitality may be provided at the expense of the Company or accepted from a competitor, individual or company that has or seeks to establish a business relationship with the Company only if it satisfies all of the following criteria:

· They comply with accepted business practices and do not violate applicable laws or ethical standards.

Their cost is negligible

They cannot be construed as bribery on behalf of the donor

· Disclosing the facts of such gifts or services will not put the Company or its employee in an uncomfortable position.

The company undertakes to carry out its activities without the use of bribes or corruption. We do not allow cash payments or receipt of cash or gifts in cash or its equivalent in dealings with competitors or business partners. Employees of the Company shall not solicit, make, offer or accept such payments or gifts in cash or its equivalent.

INTERNAL RELATIONSHIPS

This section presents the standards of relations between the Company and employees, requirements for employees, obligations and expectations of the Company. The company values ​​its employees - it is their activities that are the key to its success - and expects high standards of business conduct and professional achievements from them.

Wherever we work, we work for a common result.

We respect personal freedom, human rights and dignity, treat employees with trust and provide everyone with equal opportunities. We do not tolerate any form of discrimination or harassment in the workplace and conduct that is considered offensive and unacceptable by most people.

The Company always fulfills its obligations to employees, and employees fulfill their obligations to the Company and to each other.

The Company does not use child labor or forced labor, even if it is permitted by law in the regions where the Company operates.

We welcome leadership as the ability to make decisions at all levels. The necessary authority is delegated to each employee, each of which is expected to take personal responsibility for the implementation of the assigned tasks.

We expect the initiative and maximum contribution of each of us to solving the problems facing the Company, and we value teamwork, where every voice will be heard.

We always communicate openly, clearly expressing our thoughts. We encourage any feedback that is significant for our work, and we can apply with a proposal to improve performance to any manager of the Company, up to the CEO.

We strive to act in such a way that our close, personal, friendly, family and related attachments do not interfere with the implementation of the principle of equal opportunities, do not limit us in making effective decisions and do not allow the disclosure of confidential information.

The company creates conditions for the professional development of employees. Professional development is aimed at improving the quality of work performed and achieving goals.

We value our employees and reward them for their performance based on the achievement of our business goals.

We take into account the cultural characteristics of the countries and regions where the Company operates when making decisions and carrying out our activities.

RESOURCE USAGE

The company trusts employees and provides all the necessary resources. We use them rationally to achieve our goals.

We welcome the careful attitude to the property and funds of the Company.

We do not use our position in the Company, funds, information and resources of the Company for personal purposes. This applies equally to trading operations using the Company's internal information.

We strive to rationally use our working time and the time of our colleagues and business partners.

Information is provided to those who need it for their work. Along with this, information should not be transferred to those persons for whom it is not intended. All employees are responsible for the Company's valuables and funds, including confidential and proprietary information of the Company and third parties (as well as customers, suppliers and other business partners), in respect of which the Company is obliged to maintain confidentiality and be liable for the extent of its use. All employees have the right to disclose this information only with the permission of its owners or in cases provided for by law.

EFFICIENCY AND PROFITABILITY

The company will achieve its goal only on the condition that every employee - from the CEO to the worker - will work efficiently.

Each employee sets ambitious goals and does everything to exceed them.

Each employee is involved in setting the goals of their own activities in accordance with the interests of the Company, direct supervisors are involved in setting the goals of their subordinates.

Each employee needs to clearly understand their goals and their relationship with the goals of their unit and the entire Company.

We are always ready for changes and new requirements of the external environment.

We are constantly improving the processes and methods of our work, fighting unreasonable bureaucracy, increasing productivity and efficiency.

We strive for consistency in our decisions and actions.

We analyze the risks associated with our activities and constantly minimize them.

We make investment decisions based on appropriately verified and validated data, calculations of the payback period of the investment and the expected rate of return.

We are constantly looking for and using opportunities to optimize the resources involved.

Our choice of suppliers and contractors is always based on the interests of the Company, without any prejudice.

The company constantly increases the profit and value of its business, focusing on the production of products that meet the needs of our customers, conquering new markets, increasing production capacity, introducing new technologies.

CONFLICT OF INTERESTS

No employee shall, directly or indirectly, solicit any personal loan or favor from any person or entity having or seeking to do business with the Company. This does not apply to entities offering such loans or services in the normal course of their business.

We will avoid any relationship or activity that could interfere with objective and honest decisions in our business.

The Code does not attempt to describe all possible conflicts of interest that may arise. It should be invoked in any situation where an individual's personal interest is at odds with the interests of the Company as a whole, or where the individual may be viewed as receiving an undue personal benefit as a result of their position with the Company.

HEALTH, SAFETY AND ENVIRONMENT

We value human life and health above economic results and production achievements.

We support behavior that improves the health of employees and their families. We are constantly developing educational, organizational and environmental activities to reduce the risks associated with our activities.

We do our best to ensure that there are no accidents, industrial injuries and environmental incidents.

We strive to comply with officially accepted norms and requirements in the field of health protection, industrial safety and environmental protection.

We develop and apply resource-saving technologies and consistently reduce the impact on the environment and humans.

We develop and improve safety and environmental systems.

Any employee of the Company and each specialist performing work on behalf of the Company must:

be aware of the risks accompanying his activities and affecting the safety of his life and health, as well as the life and health of others;

be aware of personal responsibility for one's own life and health and for the life and health of others; by personal example to encourage the safe behavior of their colleagues and contractors at work, as well as relatives and friends at home;

comply with all necessary safety and environmental requirements applicable to its activities, and understand the possible consequences of deviation from established procedures for the environment;

· increase personal efficiency, initiate and apply advanced approaches to manage industrial and environmental risks;

· economically use natural and energy resources, take care of the environment, understanding its uniqueness and the need to preserve it for future generations.

Ensuring production conditions that are safe for life, health and the environment is the direct responsibility of managers at all levels of management

CONFLICT OF INTERESTS

All employees must act in the best interests of the Company and avoid any conflict of interest.

In the performance of their duties, the Company's directors and employees must be independent of any conflict of interest affecting the Company or them personally.

The Company expects employees to conduct business with suppliers, customers, contractors and others who do business with the Company based solely on the interests of the Company and its shareholders, without the protection or preference of third parties based on the personal considerations of employees.

No employee shall, directly or indirectly, solicit any personal loan or favor from any person or entity having or seeking to do business with the Company. This does not apply to entities offering such loans or services in the normal course of their business.

The Company expects employees to report any conflicts of interest to their supervisors without delay.

In the event that a conflict of interest cannot be avoided, employees should disclose the conflict of interest to their supervisors and not further participate in decision-making on this issue.

If a member of the Board of Directors has or may have a conflict of interest, he must immediately inform the Chairman of the Board of Directors or the Chairman of the Corporate Governance and Nominations Committee. Members of the Board of Directors must refrain from any discussion or decision that affects their personal, business or professional interests. In cases of conflict situations that cannot be resolved, a member of the Board of Directors must leave his post.

The requirements for the inadmissibility of a conflict of interest apply both to members of the Board of Directors, managers and employees of the Company, and to their close relatives if they are involved in situations related to a conflict of interest. Close relatives should be understood as spouses, children, parents, brothers and sisters, spouse's parents and persons living together with them.

We will avoid any relationship or activity that could interfere with objective and honest decisions in our business. The Code does not attempt to describe all possible conflicts of interest that may arise. It should be invoked in any situation where an individual's personal interest is at odds with the interests of the Company as a whole, or where the individual may be viewed as receiving an undue personal benefit as a result of their position with the Company.