KCO approaches history

Social business responsibility – vitally important and universally recognized factor of competition in economically developed countries

Recently within Kazakhstan a term «social business responsibility» was known by a narrow circle of people. Many companies were engaged in irregular charity and did not think about influencing of its activity to the society. But last years positive shifts were noticed: wide public discussion on social business responsibility has been started in Kazakhstan.

First time about social responsibility told in 1905, when Rotary movement  appeared in USA, the sense of which was included in that financially free people had to made contributions to improvements in professional sphere and society.

International conference on stable development held in 1992 in Rio-de-Janeiro, became a landmark that fixed new requirements from world society to corporations on social responsibility increase. They were a strong and powerful activation impulse of large companies role study in solving social problems.

President of Kazakhstan was the first who started discussing the problem of social business responsibility in Kazakhstan in his February message to people 2005 and speech on the II Congress of entrepreneurs. In his speech President of our country noted that «the base of Kazakhstan model he sees in real partners relations between business and power in social dialogue. New goals main of which –entering of Kazakhstan to the number of most competitive world countries with high life standards are ahead. Kazakhstan model shall envisage increase of entrepreneurship contribution to stable development of the country, solving of ecological problems, socially vital national and regional problems, training of professional staff, employees health protection, economical prosperity and welfare of all citizens of Kazakhstan».

Popular international organizations on corporate social responsibility

«Business for social responsibility

It was established in 1992 as alliance of about 50 companies, were as commercially successful as socially responsible. It helps to its members with expertise, design, introduction and evaluation of successful socially –responsible solutions. Today members of BSR have approximately 2$ billions of income annually and over 6 millions of employees all over the world. It is opened for any companies, irrespective of its size or sector. Concentrated on business needs, it does not protect any of standards of social responsibility, but acknowledges that there is no sole «correct» way for company establishment as good «community of society citizens».

The global contract

Kofi Annan UN Secretary General firstly offered «The global contract» in his speech on the World economic forum on 31 January 1999. Secretary general invited directors of business circles to join international initiative— «The global contract», — which will join companies with UN organizations, labor and civil society in support of nine universal principles in spheres of human rights, labor and environment.

With help of such power as collective actions «The global contract» is intended to promote responsible civil position of corporations to a higher level in order to make business circles participating in globalization problems solving. Thus, private sector— in partnership with other public powers— can help in performing Secretary general vision- more stable and covering global economy.

The international business leaders forum

It was established in 1990 to promote responsible business solutions and getting profit for all society. IBLF assists companies to form leadership pursuant to responsible business practice.

IBLF in its activity pays attention in following business activity spheres:

  • business standards and general management;
  • education and development of human potential;
  • human rights, labor standards and prevention of labor conflicts;
  • economical development;
  • health improvement, job sites and environment.

Institute of entrepreneurship and social responsibility ethics

It was created for mobilization of business assistance by socially responsible method, establishment of viable society. Its 800 members include companies of various segments of market and sizes. The main purpose of such companies is included in establishment of ethic samples in relations with officials, clients, suppliers, shareholders and local community.

Institute of ethics functions in four directions:

  • popularization of social movement for social responsibility of companies in Brazil;
  • strives to companies’ activity growth in the sphere of corporate social responsibility;
  • influences to markets and most important market gamers for creation of favorable environment for social business responsibility development;
  • joins corporate social responsibility with other directions of social activity.

Corporate social responsibility Europe

It was created for promoting general social responsibility growth. KCO Europe mission includes in assistance to get profitability by companies, viable growth and progress. КСО Europe was established in 1996 by Jaque Delross Chairman of European commission.

Goals of organization:

  • convince companies’ managers in business practice social responsibility profits;
  • offer training programs that help to form new resources;
  • include all interested parties to a dialogue.

Business in community— BC, Great Britain

Unique movement of 700 Great Britain companies that functions through a network of 98 local business –communities, also works with 45 world partners. BC goals is included in business support in strive to positive image in society. BC was established in 1982. Though a key role in creation of organization played large companies, now it joins also small and middle companies. An important role in organization activity plays Wales Prince. For information: KCA council (Minister for corporate and social responsibility) approved in Great Britain.

Global accountancy initiative (GRI organization)

Independent international organization, mission of which is included in development of common accountancy system on stable development by a principle of «three baskets» or «triple bottom line»: companies’ economy, production ecology and social policy.

It was acknowledged by last World UN summit on stable development. The headquarters is located in Amsterdam (Netherlands).

It follows the principles of stable development, which shall secure satisfaction of present needs without loss for future generations. The goal of organization is stable world economy, where disclosure of not financial information will be usual phenomenon.

The base of Kazakhtelecom JSC strategy in КСО for 2012-2020 – Instructions on stable development of Global accountancy initiative (GRI instructions)

Results of research of «Earnst&Young» showed that over two third of companies from Fortune Global 500 issue not financial accountancy in form of corporate social responsibility statements.

In a brochure of UN Global contract bureau and Global accountancy initiative «Connection» specified that over 1000 organizations from almost 60 countries are officially declared that they use “Accountancy instructions in stable development».

Specifics of GRI standards:

  • social report of a company is formed on basis of same principles on which usual financial statements are formed
  • a company that starts to make social statements  can easily use and consider available information on its activity
  • for those companies which can not immediately and completely satisfy standard requirements will get directions on step by step introduction on base of GRI indices (definite flexibility and «step by step planning»)

Saving voluntary character, not financial statements becomes a practice, gradually turning to a sign of good corporate culture.

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