Corporate social responsibility

1. Corporatesocialresponsibility

2. CorporateSocialResponsibility – CSR Thisconceptappeared in 1960s and isdefined as voluntary integrating of social and ecological factors into everyday company operations and interactions with company stakeholders. The principles of such integration is included into the strategy of the company (besides primary orientation on profit generation) and are sometimes called triple responsibility.

3. Economic area • The codeofconductof CSR shouldincludeprinciples such as: • Zero tolerance to corruption(integrity) • Transparency • Good relations withcustomers, shareholders, partners • Intellectualpropertyrightsprotection

5. Social area • Activitieswithinthis area mayinclude: • Philantropy • Communicationwithstakeholders • Adherence to humanrights • Adherence to labourstandards

7. Environmentalprotection • Sustainableproduction (for ex. ISO 14000 certification) • Ecologicalapproach on alllevels ( recycledpaper use) • Protectionofused natural resources

8. Environmentalprotection

9. Importanceof CSR • Developmentof CSR in recentdecades has beeninfluencedmainly by: • Existence ofmultinationalcompanieswithdeveloppedcompanystrategy and valuesystemthatapplythisapproach to bationalbranches • CSR considered by companies as a possibilityofdifferentiatingfromcompetition and how to succeed on unifiedmarkets • Consumerswantproductsthatmeettheirneeds but also do not endangerenvironmentor are producedunderdemenaingorkingconditions • EuropeanCommissionattention sice 1990s

10. Benefitsfor the company • CSR behaviourbrings in many advantages and profitsof non-finantialnaturethat are importantforquality and sustainableoperationof the company • Highertransparency and trustworthinessof the company • Higherattractivityforinvestors • Reputationbuildingthatresults in strongposition on the market • Differentfromcompetition – brand more visible to consumers • Increasedproductivity and loyaltyofemployees • Possibility to attract and keepqualityemployees • Direct financialsavingsrelated to ecologicalbehaviour (energysavings, reuseofwaste) • Increaseofturnover • Increasedqualityofproducts and services

11. Benefitsfor the company • Reducedcostof risk management - CSR isoneof the possibilitiesof risk management – itmaypreventlossofreputationcaused by sociallyorenvironmentallyunsustainableprocedures. • CSR – inpulseforinnovations (based on understandingofsocial and evitonmentalcontext – newproducts and services)

12. How to measurebenefitsof CSR

13. Successfactorof CSR • Systematicapproach, CSR activities are linked to business strategy, values and missionof the company. • The company has to select such activitiesthat support the characterof the company and expectationsofkeystakeholders. • Activitieswithin CSR are not efficientif not supported by engaged management and employees and theirpersonalbeliefs.

14. Importantfeatures: • Voluntary - all activities are performed above the legally required activities • Long term character – CSR activities are realized for a long period of time and are not finished during the period of bad economic situation of company • Dialog withstakeholders • Trustful - CSR activities help to build trust in company, the CSR activities have to be transparent, permanent and not exaggerated.

15. Stakeholders • Stakeholder – all persons, institutions and organizations that have any impact on the operation of the company or are influenced by the company. • Primary stakeholders • Owners and investors • Employees • Customers (existing, potential) • Partners (suppliers) • Local community • Environmental non profit organization • Secondary • General public • State institutions • Lobbyists • Competition • Media • Civil associations, commercial associations

17. Keystakeholderdefinition • Every company needs to know which stakeholders are the most important. Before CSR activities are set, the stakeholder analysis should be performed: • Who are your stakeholders? • How they impact your company? • What do they expect from you? • Which are the key ones?

18. Keystakeholderexpectations Owners and investors: profit, transparency, growingvalueofcompany Customers: qualityproducts and services, adequatepriceofproduct, aftersalesservice Business partners: qualitycontracts and fair treatments, meeting obgligations /in time/ Employees: adequateremuneration and non-financialbenefits, goodworkingconditions, professional and personalgrowth, training, work-life balance Localcommunity: financialormaterial support, know –howfromcompanyvoluntaryworkers EnvironmentalNporganiz. Ecologicalproduction, services, products, minimum impactofcompany on environment

19. Using the analysis the companytries to define the keystakeholderswith the essentialimpactof prosperity of the company and highestexpectations. The following matrix maybeused: High Continuousinformation Dialog Expectations Low Ensuresatisfaction Answerquestions Low High Impact

20. Afteranalysis and segmentationofstakeholders the company has to define: • How to involvestakeholders and to whatextent? • How to set up the participationofstakeholders on companyprocessedbased on theirimpact and expectations

21. Cooperationwithstakeholders List ofstakeholder, segmentation Maintaindialogue, cooperate, use feedback Understandtheirneeds and expectations Initiate dialog Planprocessofstarting a dialog and cooperation

22. How to involvestakeholders • Stakeholdercooperationmanagementshelps to know and understand the interestsofstakeholders and supports the dialog leading to mutualsatisfaction – win-winsituation. • Online discussionforum • Workinggroup • Individualmeetings • Informalmeetings • Joint projects • Phone support, etc.

23. CSR implementation KeystakeholdersGoalActivityIndicators Investors transparency • Regular processing of reports on CSR (methodology of CSR, quant. and qual. Indicators) • CSR report audited by certified auditor • Number of indicators Customers Increase of customer satisfaction and loyalty • Customer service and care development • Aftersales service expansion • Focus on quality of products and services • Customer satisfaction index • Number of loyal customers • Number of claims • Number of alternative working regimes • Number of actively included ML employees Work-life balance Employees • Flexible working hours • Home office • Inclusion of employees on maternity leaf to company activities • Number of awards • Amount of financial or material help • Response of local community Local community Support to community in the business location • Voluntary work • Charity • Education of community Environment • Energy consumption • Water purity • Emissions • Volume of unused and unsorted waste Minimum adverse impact on environment • Waste sorting • Waste reuse • Duplex print and copy • Ecological fuel use • Water and energy consumption reduction

24. CSR relatedcommunication • Aftertime and financialinvestmentsinto CSR activities the samevolume has to beinvestedintocommunication. • The importanceof CSR forcompaniesisgrowing, it has greatimpact on ability to compete. CSR offersgoodwayhow to bedifferentfromothers. • Communicationabout CSR willbring: • More informationabout the companythatwillbecome more transparent forcommunity • More attentionpaid to CSR willenable to findweakestlinks in CSR strategy • Strengtheningofstakeholder relations, incl. Into management decisions • Employeeawarenessabout CSR, possibility to compareofficiallypromotedapproachofcompany to CSR and reality • Possibility to promote and buildcrossindustrialpartnershipsbetweenentreprices, institutions and NP organizations

25. Toolsofcommunication • Internalcommunication - withemployees and colleagues: explainwhys and whats and howsrelated to CSR in yourcompany • External – let the othersknowthatyou are responsible • Tools: • Company web page • Special e-mail address • Forumforquestions • Annualreports (printed and electronic) • Announcementssent by e-mails or standard mail • Free phone line • Media- PA activities and paidadvertisement

26. Goodpractice Vodafone foundationwill double yourhelp to victimsofviolence in the Ukraine Goal: money to helpvictimsofMajdanviolence Sendsms DMS SOSUKRAJINA to 87777 and wewill double yourcontribution… (+ oneoffgiftof 200 000 CZK)

27. Goodpractice Vodafone foundationwill double yourhelp to victimsofviolence in the Ukraine Vodafone project „ Oneyearanotherjob“ Goal: money to helpvictimsofMajdanviolence Sendsms DMS SOSUKRAJINA to 87777 and wewill double yourcontribution… (+ oneoffgiftof 200 000 CZK) Vodafone project „ Oneyearanotherjob“ – Rok jinak

28. Goodpractice Česká spořitelna „Magnificent 5“ Employmentofhandicappedpeople O2 Foundation – Think Big program European program to helpyoungpeople to implementtheirideas and projectsof support to localcommunities. Forpeopleaged 13-26 years (financial grant up to 70 000 CZK). http://www.vodafone.com/content/dam/sustainability/pdfs/vodafone_sustainability_report_2012_13.pdf

29. Goodpractice IKEA - http://www.ikea.com/ms/cs_CZ/this-is-ikea/people-and-planet/index.html http://www.ikea.com/ms/cs_CZ/pdf/reports-downloads/peopleandplanetpositive.pdf

30. ABB Wins $10m Mine Hoist System Order in Ukraine Thursday, May 02, 2013 by ABB ABB, the leading power and automation technology group, has won an order to supply a mine hoist system to Zarya Mine, KryvyiRih iron ore plant (Kryvbaszalizrudkom JSC) in Ukraine. Being one of the mine's key elements, the hoist will lift the ore from 1,717 meters depth with 50 ton skips at a speed of 12 m/s.The recent order consists of the complete mine hoist system with the mechanical part equipped with hydraulic disc brakes, two 3,700 MW overhung synchronous motors and an ACS6000 MV drive inverter, power transformers, medium and low voltage switchgears, a state-of-the-art control and monitoring System 800xA incorporating underground control equipment, shaft alarm, as well as an operator control panel and a combined operator and engineering station. "This project is very promising not only in terms of development of our company's business but also for the whole Ukrainian mining industry", says Igor Khilko, manager of ABB's Process Automation division in Ukraine. "Mine operators are now in urgent need of production upgrade. The use of ABB products and solutions will thus not only allow to replace obsolete equipment but also to significantly improve energy efficiency, productivity and reliability of operation." A complete ABB mine hoist system including mechanical, electric drive and control equipment has been in operation at Zarya Mine since 1960 without any modifications. Due to the system's proven reliability and the long-term service provided by ABB, the customer now decided to order new ABB equipment. "This is not the first time we have chosen ABB equipment", said FedirKaramanyts, CEO of JSC Kryvbaszalizrudkom. "Already in 2010 the plant started to use a modern electric drive, a control and monitoring system as well as disc brakes supplied by ABB with the hoist installed at Lenin Mine. With the launch of this hoist system, the plant is now able to hoist barren rock by increasing payload capacity to 35 tons and the speed to 14 m/s, while lowering hoisting energy consumption." The hoist system replacement with the newest equipment from ABB will enable KryvyiRih iron ore plant to increase productivity, reduce maintenance time and cost, cut energy consumption as well as improve energy efficiency. ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.