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Corporate Social Responsibility

Corporate Social Responsibility. World practice and the current problems in Azerbaijan Ziya A lili Economist - researcher Center for Economic and Social Development This project is funded by the Konrad Adenauer Stiftung (KAS). What is CSR?. What is CSR?.

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Corporate Social Responsibility

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  1. Corporate Social Responsibility World practice and the current problems in Azerbaijan Ziya Alili Economist-researcher Center for Economic and Social Development This project is funded by the KonradAdenauer Stiftung (KAS)

  2. What is CSR?

  3. What is CSR? European Union and World Bank: • voluntary obligation • to support sustainable economic development; • to integrate business activity into social and economic aspects; • to improve common welfare of society

  4. What is CSR-2 «Free choice of business towards improving social welfare of society by using relevant tools and corporate resources in order to manage business» Phillip Kotler

  5. The history of CSR • 60-70-80 years; • Ecology; • Child labor; • Naomi J Kley, «NO Logo»

  6. Importance of CSR Environics International, 26 thousands respondents, 2001: • image of a company: 49%; • formation of the brand: 35%; • financial situation: 10%; ConeRoper the survey of consumer tastes, 1993: • 78 % -ready to buy the product of the company that attempts any kind of social activity; • 66 %- will refuse their favorite “brands” in favour of other companies implementing CSR policies;

  7. Types of CSR (Kotler)

  8. CSR: World practice • America: Selfhood,charitable programs; • Germany: ignorance of CSR by society, rating: DHL, BASF; • Austria: ecology; • Russia: The Collegium of Commerce, Social Charter, honor code of bankers; • Ukraine: newly established legal framework; • Kazakhstan: encouraged actions.

  9. CSR in Azerbaijan

  10. CSR in Azerbaijan • HajiZeynalabdinTaghiyev • Murtuza Muxtarov • AgamusaNaghiyev • **** • TNC and local companies

  11. CSR in Azerbaijan...SOCAR • Repair of rural schools (Balakan region) • Neftchi Health and Sport Center • Assistance to internally displaced persons (IDPs)

  12. CSM in Azerbaijan...TNC • Oil companies: ecology • BP: Project Management School • World Bank, EBRD,İFC • Joint projects;

  13. CSM in Azerbaijan...Mobile operators • Bakcell: • Sport for Women, 3200 women, 8 regions • Entertainment of children: 20 districts • Nar Mobile: • Art festival, 7 districts, 17 artists, 40 works; • Organization of mountain climbing competition; • «Disability does not matter». • Azercell • Holiday gifts;

  14. CSR in Azerbaijan : Current problems • The weakness of the legal framework; • Low awareness of entrepreneurs; • Lack of experts; • Lack of accountability; • Lack of relevant literature.

  15. CSR in Azerbaijan: Survey, 2008 • 100 companies, 38 answers; • 74.1% do not publish report; • 25.9% publish report. Barriers to CSR: • institutional barriers-8 respondents, • social barriers-7; • economical barriers-5 respondents; • Political barriers-2resp.

  16. CSR in Azerbaijan: Survey, 2008 • Encouraged actions: • 74.3% tax exemption; • 20% tax water down; • 5.7% other incentives (?)

  17. CSR in Azerbaijan: State • Ministry of Economic Development and the International Finance Corporation: • Azerbaijan CorporateManagementProject; • Googlecachelink: http://webcache.googleusercontent.com/search?q=cache:oajvjctHDJUJ:www.economy.gov.az/index.php/en/economy/coperate-governance/19-economy/korporativ-idar%25C9%2599etm%25C9%2599/100-korporativ-idar%25C9%2599etm%25C9%2599-m%25C9%2599c%25C9%2599ll%25C9%2599si+&cd=1&hl=az&ct=clnk&gl=az • Ministry of Economic Development : The Codeof Corporate Ethics; • Parliament: The Law on CSR (?); • NGO Forum: The Charter on CSR (?);

  18. CSR in Azerbaijan: Solution of problems • CorporateSocialResponsibilityAzerbaijan, www.csraz.com • Organization of trainings and seminars on CSR • Researches on CSR; • Consulting services on CSR; • Preparation and organization of CSR projects; • Spreading information about CSR. • Legislative projects

  19. CSR in Azerbaijan: The result and Suggestions • Encouraged actions should be planned and fulfilled; • Tax incentives should be applied; • Trainings should be conducted; • Public and private sector should join international calls; • Code of social responsibility should be motivated, the development of corporate governance standards. Companies should be encouraged to increase the social accountability;

  20. The result and suggestions…cont’d • Government and local regulatory bodies should report annual priorities in the field of CSR; • While implementing CSR policy in Azerbaijan foreign transnational corporations should give more priority to cooperation with local civil society institutions; • Literature should be published in Azerbaijan language and CSR as a subject should be tutored economic faculties in order to overcome the weakness of CSR culture;

  21. Questions? Ziya Alili Economist-researcher; Center for Economic and Social Development; AliliZiya@CESD.Az Image credits, in order of appearance in slides: • Business Ethics.com; • Wall street journal; • Charitystar.com • Wikipedia (2) • ERC.com • Veryicon.com This project is funded by the Konrad Adenauer Stiftung (KAS)

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