1 Organizational ethics

3 The concept of social responsibility of business

2 Principles of social responsibility of OAO LUKOIL

3 Social responsibility program of OJSC RUSAL

Conclusion

Bibliography

Applications

Introduction

Ethics and morality form the basis of human behavior, especially 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. Ethics of business relations distinguishes one of the spheres of public life. Based on universal human norms and rules of behavior, ethical standards of official relations have some distinctive features.

IN last 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 is the voluntary obligation of businessmen to pursue such policies, make such decisions and follow such directions 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 entire society.

Theme development. 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, the problems of ethics and social responsibility of business were dealt with by J. Yager, J. Cestara, D. Carnegie, V.I. Knorring, M.N. Braim, R. T. George and others.

The concept of “corporate social responsibility” was formed about 20 years ago. Before this period, there were disparate standards in various areas of corporate governance related to employee relations policies, corporate ethics, approaches to security environment. The social responsibility of an organization is understood as a certain level of voluntary response to social problems (ecology, employment, improvement, cultural services, etc.). The social responsibility of an entrepreneur consists of his participation in the production of goods required by society, improving their quality, implementing various social programs, accelerating the implementation of scientific and technological progress, etc.

Employers are paying increasing attention to issues of ethics in business and personal relationships when selecting and hiring personnel, as well as in the process of employees directly performing their professional roles.

The object of work is organizations and businesses.

The subject of the work is ethics and Social responsibility organizations and businesses.

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

The objectives of the work are:

1. Study theoretical foundations ethical aspects of organization, management and social responsibility of business;

2. Consider organizational 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 Organizational ethics

From a management perspective, all enterprises (firms) have a common feature - they are organizations. An organization is a group of people whose activities are consciously coordinated to achieve common goal or goals. All complex organizations have characteristics common to all of them. These include: resources, dependence on the external environment, horizontal and vertical division of labor, division, and the need for management. The essence and content of the management process are manifested in its functions. From these positions, organizational management is understood as the process of planning, organizing, motivating and controlling necessary 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 sale of property. At the control center are people (cadres of specialists), who are the basis of any organization. From these positions, management is also the ability to achieve goals by directing labor, intelligence, and motives of behavior of people working in an organization.

From point of view 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 transformation process added value of inputs is generated, resulting in many possible additional outputs (profit, increased market share, increased sales, organizational growth, 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 through the interaction of its constituent elements of its internal environment - its goals, structure, functions, technology and personnel. Every manager, no matter what level he is at, strives to achieve goals while being in a certain structure, performing certain tasks, complying with technology requirements and managing the people subordinate to him.

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

Fig. 1.1.1.. Layout of the “ethical filter” when an organization interacts with the external environment

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

) develop a code of ethics for the organization (department, sector, branch);

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

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

The external environment of an 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 , public administration bodies. Indirectly, the organization is influenced by factors such as the state and level of economic development, the level of development and cultural characteristics, national customs, habits, tastes, moods and expectations of society.

Thus, many subjects influence the organization, and it interacts with them - in different types, V different forms and with different intensities. 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 assessed from the position of social responsibility.

Each company has a certain system of generally 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 experiences 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 economics are formed through 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 relationships 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 places increased demands on the ethical level of the organization. The signs of an ethical organization are the following: the organization as a collective member of society: cares about compliance with laws (even if it is possible to circumvent them); promotes legislation by voluntarily providing available information on additional measures needed in a given industry; complies with fundamental norms of public morality, without resorting to deception, corruption, etc.; abroad acts with respect to 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 production safety; 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: cares about their effective use; takes care of the aesthetics of the occupied land plot. 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 unjustified restrictions on 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 responsibilities.

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

At the macro level ethical issues manifest themselves in relations between organizations (unfair competition), organizations and the state (acceptable limits of control), product manufacturers and consumers (false advertising, imposed demand, concealment of information about consumer characteristics), organizations and investors (owners) (manipulation of investments, understatement or overstatement of income), organizations and local communities (obligatory participation in the development of the local community, preservation of unprofitable enterprises), organizations and the environment (concealment of true information, transfer of production to less “strict” regions, bribery of officials).

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

To prevent or resolve this kind 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 and promote the coordination of the interests of the business sphere and society. The need for corporate codes of ethics arises due to the fact that universal ethical standards is not enough to regulate human behavior in specific situations. Ethical codes contain resources for solving a wide range of problems and help improve the efficiency of company management. Having a company code of corporate ethics becomes a global standard for doing business. In recent years, codes of corporate ethics (ethical codes) have appeared in many Russian organizations in various fields of activity. A code of ethics describes a company's system of shared values ​​and ethical rules that its employees must adhere to. The Code operates alongside 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 has three main functions:

builds trust in the company on the part of external reference groups (description of the policy in relation to clients, suppliers, contractors);

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

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

The structure of the Procter & Gamble corporate code 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 that includes abstract statements about the values, philosophy, and goals of the corporation; a detailed code of social obligations of the company to investors, employees, etc. Codes clarify what personal qualities employees should have; principles of "superior-subordinate" interaction; principles of interaction with external organizations; positions of company representatives during negotiations; features of the activities of employees in other states; use of proprietary information by company employees and much more.

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

Corporate codes of ethics 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 an aggressive environment in the workplace; making fun of workers; racial contempt; religious contempt; threats; coarseness; violence; use, sale of drugs; showing up at work while drunk, under the influence of drugs or toxic substances; loss of organization property; theft of organization property; incorrect, ineffective use of the organization’s property; disclosure of information that is an official or commercial secret; storage of personal materials in the workplace; refusal to inspect one's workplace and the information used by employees personnel services; use of organization consumables for personal purposes; use of the organization’s communication means for personal purposes; transfer of inaccurate, distorted information to the administration; deception by inflating your expenses, for example, on travel, food, accommodation, and other expenses; deception of state and government bodies, external organizations; false statements on behalf of the organization; abuse of the organization's power and influence; abuses and threats towards another organization; execution of orders that are a violation of the law; disparaging statements about competitors; humiliation of competitors, their goods 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 persons outside the organization about production plans, about market research; about production facilities, about private information; use of unworthy methods and services, such as industrial espionage; illegal entry into someone else's territory; eavesdropping; hiring employees to obtain private information about employees, competitors; corrupt practices; receiving gifts and money from a supplier or client (gifts include: material assets, services, for example, personal discounts when purchasing goods for personal use or services at preferential prices); receiving commissions; presentation of gifts to supplier representatives.

Professionally homogeneous organizations (banks, consulting companies) often use codes that describe professional dilemmas. The content of such codes regulates the behavior of employees in ethically complex professional situations (for example, in banking, 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 the purpose of personal enrichment). Supplementing such a code with chapters on the company's mission and values ​​contributes to the development of corporate culture.

Obviously, it is impossible to describe in a code every ethical issue that employees may encounter, but written guidelines can help resolve ethical issues that often arise. To become active, working, ethical rules

code must actually meet the following requirements:

they should be somewhat higher than existing practice, guide employees not to do anything more than is currently accepted, while remaining feasible for implementation;

deviations from their execution by someone should be actually visible and easily assessed by others, i.e. the rules must 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 meaning nothing; repeating in them what everyone else does; the factual unverifiability of their effectiveness; excessive demands that most people are unable to meet.

The corporate code of ethics will actually be 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 process of developing the document. The effectiveness of ethical codes also depends on whether company management perceives them as an institutional norm and whether there is a gap between formalized ethical standards and their application in specific situations. The truest criterion for the quality of a code of ethics is how employees perceive it.

To make ethical codes more effective, companies often adopt certain disciplinary measures, aimed at punishing violations of the code and encouraging actions committed in accordance with the rules of the code of ethics.

IN Russian organizations The practice of developing ethical codes as an independent corporate document has not yet become widespread, however, the basic requirements for employee behavior and the ethics of relationships in a team are increasingly contained in documents such as the Personnel Regulations and the organization’s Working Standards. Basic principles and standards of behavior are included in directories and employee handouts distributed among 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 20th century. in USA. Special attention ethical behavior in business began to be emphasized in the 60s, during various social upheavals. The new management paradigm required a revision of management principles, since the old ones cease to “work” in the conditions of entrepreneurial structures. In the 90s, ethics in business was declared the golden rule of management.

Business ethics is the 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 social responsibility of business, issues of applying 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 consistency of a person's moral standards with the activities and goals of a business organization. It is a tool for analyzing and solving problems that confront a moral person doing 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 macro-subjects 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 the corporation as a moral subject and its employees, as well as shareholders.

In the system of moral relations between macro-subjects, experts distinguish two levels: horizontal and vertical. At the horizontal level, they consider moral relations between subjects 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 his own behavior or makes decisions that affect other people, for example regarding the welfare of his loved ones, colleagues or even a small community. But some people sooner or later begin to make decisions at the macro level, for example, directly participate in the formation of state national policy.

Business ethics is relevant to both the formation of economic institutions and the functioning of business professionals. The economic institutions of society inevitably invade the area of ​​morality, and from this point of view, the importance of the macro level of business ethics cannot 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 and standards must be present in any management phenomenon and process. The essence of management ethics is the nobility of actions, both of an individual manager and of the organization as a whole.

The content of the essential category “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 between ethics and management methods occurs through: a) the ethics of choosing specific management methods; b) the ethics of the specific use (implementation) of these methods; c) the ethics of the perception of management methods by specific people (or the perception by a specific organization of the current situation); d) the ethics of the influence of the selected and implemented methods on increasing the level of ethical management (the latter indicator can be considered a kind of “indicator of the effectiveness of ethics”).

Depending on the degree of formalization, formalized

forms of expression of the category “ethics of management” (for example, ethical standards of corporations, which have a completed form, exist in written form and are mandatory for employees) and informal forms (oral instructions from a manager to a subordinate).

Thus, management ethics is a category present in all other categories of management as a filter that does not allow anything unworthy, ignoble, or 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 are having 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; electoral ethics in business relations; use of force; independence and detachment from politics; creation of “teams” and centralization of management functions; technocracy and paternalism of leadership; workaholism; increased risk appetite and diversification of activities; high degree of adaptability and speed of reaction; reserved 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 government bodies and officials; increasing criminalization of various sectors of the economy; extortion by criminal organizations; absence private property to the ground; threat to personal safety from criminal structures and others. Consistent persistent struggle against the factors listed above that negatively affect the level of ethics Russian entrepreneurship in general, will reduce the number of violations of ethical norms and standards in the Russian Federation. The Chamber of Commerce and Industry of the Russian Federation has been doing a lot of work in this direction since 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 them to establish new economic and trade ties. There are a number of factors hindering the development of Russian business culture: insufficient experience of doing business in Market conditions, unstable and unpredictable legislation, lack of political stability, transitional nature, its criminalization. In addition, this process is also influenced by sociocultural factors: historically established traditions, psychology, habits, mindset, which change much more slowly than everyone else. For example, take new law It can be done relatively quickly, but developing the habit of observing it is much more difficult. In Russia, the formation of new economic legislation is proceeding unevenly, and the acquisition of new experience in the field of business communication, the transition from habits accumulated under the conditions of a command-administrative system to the habits and techniques necessary for effectively conducting business in a modern developed economic system, is an even longer and more spontaneous process, since 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 create an appropriate business culture for domestic producers. At the same time, the increasing internationalization of the world economic process inevitably presupposes civilized business conduct, in particular the unification of the rules of international business interaction, and the recognition of business ethics by all entrepreneurs. According to the testimony of foreign and Russian businessmen, the standards of business behavior that are currently emerging in Russia often differ from the generally accepted ones.

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

In an effort to take into account the specifics of business culture, the National Foundation "Russian business culture" developed the 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 Principles of business relations

General ethical principles of business relationships should be used to develop any organization and managers of their own ethical systems.

You can also cite as an example the “Rules for the Fair Activities of Members of the Professional Association of Stock Market Participants” (1994); "Code of Professional Ethics for Members of the Russian Society of Appraisers" (1994). The Second Congress of Russian Entrepreneurs adopted the "Russian Business Charter".

Based on the foregoing, joint business ethics should be based on three most important provisions: the creation of material values ​​in all its diversity of forms is considered as an inherently important process; profit and other income are considered as the result of achieving various socially significant goals; Priorities in resolving problems arising in the business world should be given to the interests of interpersonal relationships, rather than production. This result can only be obtained through long-term systematic work.

1.3 The concept of social responsibility of business

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 consistently developed with the participation of stakeholders, aimed at implementing significant internal and external social programs, the results of which contribute to the development of the company (increasing production volumes, increasing quality of products and services, etc.), improving its reputation and image, establishing corporate identity, developing corporate brands, as well as expanding constructive partnerships with the government, 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 goodwill. Some countries have already turned corporate social responsibility into an open and highly effective tool public policy. Relevant legislation already exists in Denmark, Sweden, Norway, Holland, France, Great Britain, and the Government of Canada is working in this direction.

Principles of ethical and social economic activity businesses are based on the moral and moral values ​​of society, which are the basis and guarantee successful work economic entities. Today the implementation of every economic policy firms requires solving ethical problems, which necessitate economic and social research and are rather a philosophical and ideological issue. Currently, the foundation for the development and sustainable economic growth of any company are 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; the market way of thinking of managers and personnel of firms, implying 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 personnel and society through the creation of flexible and effective democratic organizational management structures; pursuit economic entity not to success, but to ensuring a fulfilling human life, which is as important as work itself, that is, the formation of active leisure, a new lifestyle and family relationships; belief in the modern work ethic, which implies that people should spend money sparingly and help the Russian economy as a whole, work hard and be proud of the result of their work, earn good money and get promoted.

The basic principles of making social and ethical business decisions include: pragmatic action, that is, obtaining appropriate income and profit; respect for human rights (to work, education, health, etc.) and social and legal protection of society from ineffective 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, respect for human rights and freedoms, utilitarianism and the entrepreneurship of people. The modern concept of business differs from the previous one in that it is focused on increasing 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; to humanism and fair competition; for a decent business, where the main thing is not only money, but also the high art and fascinating creativity of the entrepreneur, since 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 obtaining maximum profits, but in an intense struggle for the buyer by satisfying his needs.

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

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

The basis for the formulated principles of doing business in modern conditions is the concept of sustainable development of an organization, according to which only a company that has achieved the optimal balance between three groups of goals: economic, environmental and social, which form the key areas of sustainable company development. In each of the key areas, areas of responsibility are formed that 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 to the key areas of its sustainable development

In Russia, the process of development of corporate social responsibility is at the initial stage and occurs in the context of the dominant position of the state, the extremely weak development of civil society institutions, oligarchic development of business and the rules of interaction of these institutions, the role of individual parties and measures of their participation in social development are just being formed. Socially responsible behavior of a corporation should be manifested in the choice of priorities and mechanisms for developing the production of goods and services, ensuring employment, maintaining social standards and protecting the environment. The main attention when implementing socially responsible behavior is paid to three areas:

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

environmental activities (protection and renewal of natural 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 sphere of economic activity, as well as in the environmental and social spheres.

Chapter 2. Examples of socially responsible people Russian companies

.1 Practical implementation of the principles of social responsibility by Russian companies

The current level of development of economic and social relations in Russian Federation urgently requires the inclusion of Russian companies in international processes, an adequate response to what is happening in the external environment of the enterprise 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 (RUIE), based on a wide 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, called the Social Charter of Russian Business. "The Social Charter of Russian Business today is a platform for the formation of corporate policies and practices in accordance with the objectives of sustainable business development of companies based on effective interaction with stakeholders - shareholders, investors, employee organizations, government structures, and civil society institutions."

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

Socially responsible business is production quality goods and services at a reasonable price; regular payment decent wages; care for the health and safety of its employees; reducing negative impact on the environment; new workplaces; investments in the development of own production and personnel of enterprises; honesty and transparency of business; support for vulnerable groups 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.

Currently in Russia, mainly large national companies and divisions of international companies are thinking about the policy of social responsibility and the strategy of participation in society. Medium business, with rare exceptions, works “the old fashioned way”, conducting business as necessary and doing occasional charity work. Business 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. Most famous socially responsible companies are the largest Russian corporations - MMC Norilsk Nickel, OJSC Lukoil, FC Uralsib, Rusal, OJSC 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 minimizing them (Table 2.1.1).

Table 2.1.1 Social risks of OJSC MMC Norilsk Nickel

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

When saving for the period 2005-2009. share of labor costs at 33%, in absolute terms this type costs increased from 1056 million dollars in 2005 to 2002 million dollars in 2009, or by 89.6%.

The average salary of employees of Russian enterprises of the OJSC MMC Norilsk Nickel group in 2009 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 Aeroflot OJSC, which is a domestic company for transporting passengers by air. The social report of Aeroflot OJSC states that the average salary of Aeroflot OJSC employees for the period 2005-2009. increased from 30 thousand rubles. up to 45 thousand rubles. In 2009, the increase compared to 2006 was 32.4%.

The structure of additional social payments to Aeroflot employees in 2009 is presented 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 Company's main activities are exploration and production of oil and gas, production of petroleum products and petrochemical products, as well as marketing of manufactured products. The bulk of the Company's activities in the exploration and production sector are carried out on the territory of the Russian Federation, the main resource base being Western Siberia. LUKOIL owns modern oil refineries, gas processing 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 all-Russian oil production and 18.9% of all-Russian oil refining.

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

As of the beginning of 2010, the Company's sales network covered 26 countries, including Russia, neighboring 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 USA, and consisted of 199 petroleum storage facilities with a total storage capacity of 3.13 million m3 and 6,620 gas stations ( including franchise ones).

LUKOIL Mission

We were created to use the energy of natural resources for the benefit of people

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 a leading global energy company. To be a reliable supplier of hydrocarbon resources in the global energy market

LUKOIL goals

LUKOIL considers its goal to create new value, maintain high profitability and stability of its business, and provide shareholders with high income for 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 of the Company and its employees, ethical standards of intra-corporate relationships, social responsibility, as well as other high-priority issues of business ethics. The document regulates the relations of the Company's employees with shareholders and investors of OAO LUKOIL. The Code pays great attention to the disclosure of information that could have a significant impact on the price of LUKOIL securities (insider information). A special procedure in the Company clearly defines the understanding of who is an insider; an updated list of insiders is constantly maintained, for whom a special procedure has been established for performing transactions with securities LUKOIL. A separate part of the Code is devoted to employee relations within the Company. In particular, the Code excludes discrimination against employees on the basis of gender, age, race or nationality, religion or political opinion.

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

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 negatively affect its efficiency, as a result of which the Company has the right to prevent the impact of such conflicts.

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

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

The Code of Business Ethics also sets out the rules for relations with government agencies and public organizations, with special attention paid to labor protection, industrial and personal safety, and environmental protection. In accordance with the provisions of the code, the Company has created a business ethics commission, which regulates corporate ethical relations.

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

2.3. Social responsibility program of OJSC RUSAL

OJSC RUSAL is the world's largest aluminum producer. The combined company, the world's largest producer of aluminum and alumina, was created in March 2007 as a result of the merger of the RUSAL Company, which ranked third in the world in aluminum production, the SUAL Group, one of the ten largest global 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 OJSC 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

OJSC 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 its employees, will be able to ensure the leadership of the created company in a number of new areas of raw materials extraction and metal production.

The Company includes 16 aluminum smelters, 12 alumina production enterprises, 8 bauxite mining enterprises, 3 powder production enterprises, 3 silicon production enterprises, 3 secondary aluminum production plants, 3 foil rolling plants, 2 cryolite plants, 1 cathode plant .

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

The Code of Corporate Ethics of the Company OJSC RUSAL is intended to:

Give each employee an idea of ​​the mission, values ​​and operating principles of the Company;

Establish standards of ethical behavior that define relationships within the team, relationships with clients, 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 adopting the Code, OJSC 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 consideration in their daily activities.

The provisions of the Code apply to RUSAL and to all companies controlled by UC RUSAL. The basis of the Code is 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 individual provisions and requirements compared to previous versions of the document.

The RUSAL Code contains the following provisions and sections: RUSAL Mission ; RUSAL values ; Ethical principles and standards of RUSAL, including the following sections : 1. “Internal relationships” (relations with employees); 2. "External relations" (relationships with investors, clients, business partners, competitors, government agencies, and society; gifts and entertainment expenses); 3. "Use of resources" ; 4. “Health protection, industrial safety and environmental protection”; 5. "Efficiency and profitability" ; 6. “Conflict of interest” ; Enforcement of the Code .

Social responsibility for OJSC RUSAL is an 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 dialogue with authorities, the organization of conditions for attraction and professional development the best personnel. RUSAL's social programs are carried out on a competitive basis, which allows society to receive the maximum effect from the company's social investments. RUSAL considers youth 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 of development of the younger generation supported by RUSAL.

OJSC 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 organizations and institutions of the social sphere that significantly improve the quality of life of children and youth 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 initiatives, creativity, and entrepreneurship of young people, preparing them for active participation in public life. Development of scientific and technical creativity of youth and support of projects in the field of computer technology, robotics and modeling.

Program "Computer for schoolchildren". Implementation jointly with the Volnoe Delo Foundation the “Computer for Schoolchildren” project, 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, Novokuznetsk (Kemerovo Region), Zhovtnevy District of the Nikolaev Region (Ukraine) and 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 make educational institutions among the leaders in informatization and innovative teaching methods.

The operational management of the UC RUSAL social investment program is carried out by the Charitable Organization “Center for Social Programs” Foundation. 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 created. This means that a stable, free, and 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 each of us could do 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, partner competitions, charity seasons, which strengthen contacts between people and help joint creativity. The second is strengthening partnerships: it is important that 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 that are 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 “Good Way, Good Deeds!” campaign. (Bratsk).

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

The 2007 charity season was opened by the Spring Week of Kindness 2007 . This event, first held in Krasnoyarsk nine years ago, has long turned into the most widespread and popular event of the Charity Seasons. Having crossed the boundaries of the regional center, it covered the entire region and went beyond its limits. In 2007, Achinsk, Bratsk, Sayanogorsk, Novokuznetsk and other cities joined the program for the first time. Krasnoyarsk has become an intercity information and organizational base.

In 2007, as part of the Charity Season, a new event appeared - the Route of Good Deeds. Its goal is to contribute to the development of community initiatives through support and recognition of the results of volunteer activities of local residents. The routes took place in Krasnoyarsk, Achinsk and Sayanogorsk. To remote villages of Mansky and Achinsky districts, village. Kuragino (Krasnoyarsk Territory), in the urban settlement. Representatives of public associations, local governments and businesses, and student volunteer teams traveled to Ust-Abakan (Republic of Khakassia) on a voluntary basis. Experts provided free consultations to the population on legal, medical and social issues and presented social technologies with which active citizens will be able to solve pressing problems in their area. In Ust-Abakan and village. Shali visiting delegation visited Fairs of public initiatives, which were prepared by local non-profit associations and initiative groups of citizens. Volunteer teams shared their experience in conducting volunteer actions. Specialists from the Center for Social Programs of RUSAL held a round table where participants discussed the possibilities of disseminating social design technologies and organizing partnership events in rural areas.

RUSAL company is holding a competition social projects. Small grants competitions were held in 10 cities where the program was implemented. The competition received 172 applications. In Bratsk, Kamensk-Uralsky, Krasnoyarsk, Sayanogorsk a consolidated budget was formed to finance the competition of social projects. The competition participants 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 the Company OJSC RUSAL attracts the Company's employees to direct participation in charity and provides everyone with simple and understandable mechanisms for personal voluntary assistance to children. On September 1, 2005, RUSAL-UK launched an automated program for collecting personal donations. With its help, every employee Management Company can transfer funds to 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 funding 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 practice developed countries world, where 10 to 13% of employees are involved in charitable activities of companies. On days of 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.

The company OJSC RUSAL provides 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 and increasing labor productivity. The company’s goal is to ensure that in the coming years, the level of wages at RUSAL enterprises becomes one of the highest in the industry and in Russia, so that workers of the highest professionalism strive to get a job at RUSAL. There is a program to improve the environment, improve occupational safety, sports and fitness programs, etc.

Let's consider the program of OJSC "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 to some kind of general order. A competitive 10-level payment system was created, which is based on a flexible system for assessing work results and the opportunity for career growth. The main objectives in developing the system were: creating an internal hierarchy of the company based on a universal job evaluation system; eliminating disproportions in wages across various professions and unifying requirements for similar positions within the company’s enterprises.

The following criteria for evaluating positions have been defined, developed differentiated by 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 possible, i.e. promotion to a position of the same name over a fairly long period of time. For example, a person works conscientiously, improves his skills, takes initiatives, takes on additional responsibility and fulfills his goals. Everything suggests that he deserves a pay rise. But according to the previously valid uniform tariff schedule this could only be done by promoting him or giving him some kind of allowance. When inserted new system An employee’s salary can be increased within a fairly wide “range” (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 on the company's staff became clear.

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

The new system eliminates the imbalances that exist in the remuneration of workers in primary and auxiliary production. It becomes possible to increase an employee’s salary without promoting him in position.

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

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

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

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

The concept of “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 they exist harmful conditions labor, as well as rehabilitation and recovery treatment for those for whom it is indicated.

Let's consider the personnel development program of OJSC RUSAL. The task of improving personnel qualifications is one of the most important for both the RUSAL company and the personnel management service of any of its plants. There are quite a large number of courses in various areas and forms of training. A modern and promising form of education is distance learning. Staff interest 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 competency that includes corporate spirit, professionalism, effective communication, decision making, motivation to achieve, leadership, utilization management, change management, strategic approach. Almost all courses contribute to the development of the listed qualities. Among the available courses there are courses designed for 5-6 curricula-trainings aimed at improving people management skills.

There is training for directors of areas and heads of plant departments. A course on the topic “Personal effectiveness of a manager” was conducted for directors of 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. A preliminary assessment of managers was carried out using the Assessment Center method, which made it possible to determine individual development programs.

Based on these data, a course of six trainings was prepared on

different topics. The training is conducted by trainers from the Moscow company “BEST-training”. The effectiveness of the training is high. If a person has analyzed and passed through everything that he has learned, then he will apply the information obtained during 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, we will draw conclusions about the work.

The new management paradigm required a revision of management principles, since the old ones cease to “work” in the conditions of entrepreneurial structures. In the 90s, ethics in business was declared the golden rule of management. Business ethics is the 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 social responsibility of business, the application of general ethical principles to specific decision-making situations, ways to improve 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 consistency of a person's moral standards with the activities and 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 macro-subjects 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 the corporation as a moral subject 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 allow anything unworthy, ignoble, or ungenerous into management practice, both at the level of an individual manager and at the level of the organization as a whole.

Ethics of business relations in an organization is a system of universal and specific moral requirements and standards of behavior implemented in professional activities. It includes: ethical assessment of the organization's internal and external policies; moral principles members of the organization; moral climate in the organization; business etiquette standards.

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; independence and detachment from politics; creation of “teams” and centralization of management functions; technocracy and paternalism of leadership; workaholism; increased risk appetite and diversification of activities; high degree of adaptability and speed of reaction; reserved 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 create an appropriate business culture for 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 sphere of economic activity, as well as in the 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 turned corporate social responsibility into an open and highly effective public policy instrument. The principles of social responsibility are not always followed by Russian business, but under public pressure they are gradually beginning to become part of the practice of its activities. In Russia, the process of developing corporate social responsibility is at the initial stage and occurs in the context of the dominant position of the state, the extremely weak development of civil society institutions, oligarchic development of business and the rules of interaction of these institutions; the role of individual parties and the measures of their participation in social development are just being formed. Currently in Russia, mainly large national companies and divisions of international companies are thinking about the policy of social responsibility and the strategy of participation in society. The most famous 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:

Annex 1

Structure of the Procter & Gamble Corporate Code

Declaration of company goals.

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

Ethical principles.

Conflict of Interest Policy.

Confidential or Proprietary Information.

Behavior in the workplace.

Bribery for commercial purposes.

Occupational safety, health and environmental protection policy.

Honesty in relations with customers and suppliers.

Credibility accounting documentation companies.

The government as a customer.

Relations with government officials.

Appendix 2

Table 1. Modern principles of interaction between business and society

Appendix 3

Social Code of OAO "LUKOIL"

Open Joint-Stock Company“The oil company LUKOIL is a responsible corporate member of society and a conscientious participant in the market economy. Combining these two missions, OAO LUKOIL (hereinafter referred to as the Company) voluntarily and proactively assumes the following obligations for socially responsible behavior to all parties whose interests affects the activities of the Company.

The implementation of these obligations (timing of introduction, volumes of financing, etc.) is carried out during collective negotiations with the trade union of the Company and is enshrined in the Agreement between the Company and the trade union, as well as in local regulations.

The principles and norms laid down in this Social Code are mandatory 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 complementary to the legislation of the Russian Federation and international standards;

do not cancel or replace the results of collective bargaining with employees; addressed both to employees, non-working pensioners of LUKOIL Group organizations, shareholders of the Company, and, more broadly, to commercial partners, the state and civil society;

are based on economic calculations confirmed in front of shareholders and business partners;

designed for joint initiative actions of market participants and partnership interaction with the state and society;

will be periodically reviewed during collective negotiations to conclude an 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 current economic situation in the country and in the world.

Part I. Corporate social guarantees employees and non-working pensioners of LUKOIL group organizations

Complying with fundamental principles and rights in the world of work, other international labor standards, labor legislation of the Russian Federation and host countries, the Company sets itself higher social goals in the following areas:

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

1.1. Socially responsible restructuring

1.2. Considering the scale of employment in LUKOIL Group organizations and the single-industrial nature of many areas of their activity, the Company undertakes to take a socially responsible approach to the restructuring of its divisions and controlled organizations, as well as to the delocalization of production.

1.3. In the event of a massive layoff of workers, in addition to compliance with legally established standards, the Company will strive to:

take all measures to ensure the maximum possible employment of laid-off workers in LUKOIL Group organizations;

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

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

1.2. Remuneration and labor motivation policy

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

uniformity of remuneration and labor motivation policies for all organizations of the LUKOIL Group;

establishing a minimum guaranteed level of wages in LUKOIL Group organizations 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 workers;

regular indexation of wages based on the consumer price index;

periodic increases in wages due to increased labor productivity;

the use of flexible bonus systems in order to most fully take into account the individual labor contribution of the employee.

1.3. Industrial safety, labor and environmental protection

Considering strategic goal The company maintains industrial safety, labor protection and environmental protection in all divisions and controlled organizations at the advanced level oil companies world, the Company is taking the following measures:

complies with the principle of priority of preserving the life and health of an 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 21st century;

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

creates favorable opportunities for the exercise of public control;

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

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

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

observes the priority of preventive measures to protect the environment at all stages of the production cycle;

promptly informs all interested parties about cases of pollution, oil and petroleum product spills;

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 carrying out work for LUKOIL Group organizations with principles and standards in the field of industrial safety, labor protection and environmental protection, not lower than those stipulated 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 LUKOIL Group organizations;

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

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

necessary sanitary, hygienic and living conditions in the workplace;

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

1.4. Social policy regarding young workers

Considering that the sustainable development potential of LUKOIL Group organizations depends on the influx of qualified and competent young workers, the Company constantly pursues a policy aimed at:

creating jobs for young workers;

combination labor responsibilities young workers with the opportunity to continue their 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 settlement of a young employee and his family at a new place of work in 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 members of 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 financing for activities aimed at protecting the health of workers;

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

organizes recording and analysis of employee morbidity, causes of disability and mortality in LUKOIL Group organizations;

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

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

organizes regular preventive examinations of employees;

allocates targeted funds to provide sanatorium and 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 organizations in harmful and dangerous conditions.

Promoting the development and maintenance of a healthy lifestyle, the Company:

develops and implements comprehensive programs for improving health and involving workers and members of their families living in difficult climatic conditions in physical education and sports;

carries out physical education and health work and develops mass sports among employees and members of their families, providing them with access to sports infrastructure, organizing training and competitions;

creates the opportunity for employees to purchase cheaper vouchers for sanatorium and resort treatment for themselves and family members at the expense of LUKOIL Group organizations;

assists in organizing summer holidays for the children of employees, providing partial compensation for the cost of vouchers and/or travel;

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

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

2.3. Housing policy

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

ensuring personnel mobility of employees of LUKOIL Group organizations;

providing comfortable living conditions for workers in dormitories and rotational camps;

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

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

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

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

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

3. Harmonious combination of work and family responsibilities

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

3.1. Additional days of rest and vacation

In addition to the standards labor legislation The company provides:

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

short-term leaves, both paid and without pay, due to family circumstances.

3.2. Social support for families with children and disabled people

Taking into account 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 compensation:

lump sum benefit for the birth (adoption) of a child;

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

annual financial assistance to employees with disabled children under 18 years of age;

compensation for low-income families with three or more minor children, as well as for children of workers who died or became disabled at work, for the cost of maintaining children in preschool institutions and health camps;

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

4. Corporate social security and insurance

In compliance with the obligations to participate in state systems social insurance and providing all employees with mandatory social protection, the Company supports 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 organizations and is based on the following principles:

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

financing the voluntary health insurance program;

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

4.2. Non-state pension provision

The long-term goal of non-state pension provision for employees of LUKOIL Group organizations within 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:

preservation and development unified system non-state pension provision for employees of LUKOIL Group organizations at the expense of the employer;

creating conditions for the development of employee participation in the formation of their own pension savings;

implementation of a gradual transition from the current unified system of non-state pension provision with defined benefits to a system with defined contributions, meaning linking the amount of the pension with the amount of contributions made on the basis of shared 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 within the framework of corporate mortgage lending.

4.3. Corporate personal insurance system

Personal insurance for 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 the event of accidents. The company develops and maintains at least the following types of personal insurance at the corporate level:

additional personal insurance against accidents at work; critical illness insurance; life insurance in case of death from any cause. All types of personal insurance within the corporate system can be provided 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 market.

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

Taking into account the socially vulnerable situation 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 is pursuing a policy aimed at social support for non-working pensioners of LUKOIL Group organizations:

5.1. Social support for non-working pensioners

In order to help maintain the standard of living of employees of LUKOIL Group organizations retiring during a difficult transition period, the Company undertakes the following obligations: to pay a one-time benefit to the retiring employee;

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

preserve the rights of non-working pensioners to participate in the corporate voluntary health insurance system.

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

In an effort to promote social and labor rehabilitation of employees who have become disabled as a result of an industrial accident or occupational disease while working in LUKOIL Group organizations, the Company proactively provides them with:

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

material and organizational support for prosthetics abroad if this is not possible in the employee’s country of residence.

5.3. Social support for non-working disabled people

The Company undertakes the following additional obligations for social support of disabled people who became disabled while working in organizations of the LUKOIL Group and left their working career:

maintaining the right to participate in the corporate voluntary health insurance system;

provision of vouchers for sanatorium-resort 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 growing inequality among the population in access to decent work and benefits, the Company accepts voluntary commitments to socially responsible participation both in the life of the local population in the regions where LUKOIL Group organizations operate, and in society as a whole.

1. Development of single-industry settlements

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

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

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

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

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

2. Environmental activities

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

carries out periodic information and maintains an open dialogue with all interested parties in the Company’s activities in the field of industrial and environmental safety, publishes reports on its activities, on the results of assessing the impact on the environment, personnel and population;

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

3. Development of science, education, technology and innovation

Realizing that the Company’s competitiveness 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, quality vocational training employees, the Company constantly promotes the development of scientific potential and improvement of the quality of education by:

financing research and pilot work in the field of exploration and development of hydrocarbon deposits, development of innovative technologies and materials, reducing production costs, increasing 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 vocational educational institutions and educational divisions of LUKOIL Group organizations;

organizing scientific and technical development competitions among young scientists and specialists;

providing organizational and material support to graduate students and doctoral students working in organizations of the LUKOIL Group;

material incentives for young people studying in specialized vocational educational institutions.

4. Preservation of national and cultural identity

Appreciating additional features given to the Company by the rich national and cultural diversity of its employees and the population living in the areas where LUKOIL Group organizations operate, the Company builds its work with staff and local residents on the following principles:

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

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

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

assistance to indigenous peoples in access to vocational training, skilled jobs, higher education, as well as to better conditions for relaxation and recovery. For these purposes, the Company takes, to the extent possible, the following steps:

partial compensation for the cost of summer recreational holidays for children of employees who are representatives of small indigenous peoples, including travel to and from the holiday destination;

payment for education of students representing small indigenous peoples in universities in oil and gas fields;

providing assistance in the restoration of national historical monuments;

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

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

assistance in organizing competitions, festivals, folk art concerts;

assistance in organizing trade in souvenirs, folk art products, and products of traditional crafts in large cities in order to materially support 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 market economy, The company is looking for opportunities to provide financial support to:

creative individuals and groups, theaters, museums;

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

public organizations supporting children's sports.

6. Assistance 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 during 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 during law enforcement activities;

public organizations of people with disabilities in order to create an environment for the full functioning 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 during a difficult transition period, the Company uses available opportunities to provide charitable assistance:

individual persons - 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 budget organizations socially oriented, finding themselves in difficult situations - hospitals, orphanages, nursing homes, educational institutions and scientific and cultural institutions;

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

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

Part III. Economic basis of social initiatives

As 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 expenditures

The company provides in its organizational structure a unified centralized system for accounting, analysis and monitoring of the Company’s social expenses with the aim of constantly monitoring social expenses, conducting their socio-economic examination and predicting the consequences of all changes introduced in this area.

1.1. Mechanisms for controlling corporate pension expenses

Control over corporate pension expenses is carried out at three levels:

on the part of pension program participants (employees and pensioners) - based on the state of pension accounts and based on the participation of employee representatives in the Supervisory Board Pension Fund and the Commission for the Organization of Non-State Pension Provision;

on behalf of shareholders - based on the results of financial statements and audit reports; in the system of government supervision - based on the results of financial and special reporting of the Company and the Pension Fund, audits and inspections of relevant government bodies, as well as based on the results of an actuarial assessment of the Pension Fund and the Company’s pension program.

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

In order to curb the unjustified increase in costs for medical care for employees and pensioners under the voluntary health insurance program, the Company:

carries out, through the medical insurance company with which it interacts, three-stage expert control of the volume, timing and quality of 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 examination as part of the work to protect the rights of insured workers and pensioners of LUKOIL Group organizations;

requires the medical insurance company with which it interacts, when agreeing on the volume 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 the maintenance of social infrastructure

The Company recognizes the fact that social infrastructure, not related to the main production, can be on the balance sheet of a commercial enterprise only if there is an urgent need to compensate for the shortcomings of the private and public sectors in a given area or in a given industry. In this regard, when resolving issues regarding the maintenance of social, domestic 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 strives to:

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

to preserve on the balance sheet of LUKOIL Group organizations those social infrastructure facilities that are in demand by employees and members of their families, make up for the infrastructure or range of services lacking in a given 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 organizations from medical and health institutions that are 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 property.

3. Increased production efficiency social services

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

3.1. Outsourcing of social services producers on a competitive basis

The Company is committed to the widespread use of outsourcing to meet the many social needs of its workforce, using independent contractors and suppliers on a fair competition basis. The company understands that outsourcing:

reduces internal costs of LUKOIL Group organizations;

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

contributes to improving 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 maintaining the production of social services in-house in many remote areas of activity of LUKOIL Group organizations or even carrying out insourcing to restore equal access of employees to corporate social guarantees.

4. Implementation of the principles of co-financing

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

4.1. Share participation of employees in corporate social insurance and provision

The employee's insurance contribution to the corporate insurance or security system is in an equal or lesser share compared to the employer's contribution:

strengthens the position of employees in matters of managing insurance funds;

legitimizes the essence of the insurance premium as deferred wages;

increases the predictability of payments for the employee;

increases the independent responsibility of employees;

all other things being equal, increases the level of insurance coverage.

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

corporate pension provision and

corporate personal insurance.

4.2. Joint payments by employees, members of their families and local residents for the use of social infrastructure of LUKOIL Group organizations

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

take care of employees of LUKOIL Group organizations;

establish control over the consumption of services;

reduce the costs of LUKOIL Group organizations for maintaining 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 impede access to the social infrastructure of LUKOIL Group organizations, especially in areas where it makes up for the missing municipal infrastructure.

4.3. Long-term housing lending (mortgage)

In order to expand the possibilities of solving the most pressing and capital-intensive social problem - providing workers and their families with decent housing conditions - the Company is committed to developing the most cost-effective instrument - 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 LUKOIL Group organizations;

refuse to maintain the balance of the housing stock;

give new impetus to resettlement programs from unpromising areas;

not to divert funds from the production turnover of LUKOIL Group organizations;

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

control and influence the loan repayment process;

attract investment in regional housing construction.

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

In its relations with federal, regional authorities and local governments, the Company strives for partnership cooperation for the benefit of comprehensive socio-economic development of the regions of operation of LUKOIL Group organizations 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 of operation of LUKOIL Group organizations, the Company strives for a flexible approach in finding opportunities for co-financing, participation, and sharing of responsibilities with the state and local government in the course of socio-economic development of the regions. For these purposes, the Company uses the following opportunities:

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

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

providing local residents with access to the social and living infrastructure of LUKOIL Group organizations;

carrying out charitable activities.

5. Multiplication of intangible assets

The Company recognizes the fact that in the modern world, socially responsible behavior towards employees and society as a whole ultimately serves to increase the Company’s capitalization. In this regard, the Company views many social expenditures 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 investing

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

increasing social protection of workers;

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 counter the increase and use of capital resulting from the use of forced labor, child labor, drug trafficking, harm to human health and the environment.

5.2. Social aspects of business reputation

The Company believes 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 relations with contractors and suppliers

Realizing that modern standards of relations between business and society require the Company to answer for the actions of its suppliers and contractors, the Company takes a responsible approach to their selection.

The modern scale and ramifications 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 compliance with the fundamental principles and rights at work adopted by the International Labor Organization, as well as the international standard “Social Responsibility 8000”;

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

Final provisions

To confirm the sustainability and seriousness of its commitments to socially responsible behavior, the Company is introducing an internal control mechanism, both managerial and trade union, over compliance with this Social Code. The Company also confirms its readiness for various types of external control from society, including participation in shows, competitions, both state and public, as well as organizing negotiation platforms with a critical public that has the moral right to demand dialogue with the Company. Realizing that unilateral acceptance of social obligations commercial enterprise impossible in a competitive environment, the Company counts on the solidary position of other market participants and interested cooperation from the state.

Appendix 4

RUSAL Code of Corporate Ethics

RUSAL'S MISSION

Our mission is to become the most efficient aluminum company in the world, which 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 value:

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

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

· Honesty in dealings and providing information necessary for our work.

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

· The courage to confront what we do not accept, and to take personal responsibility for the consequences of our 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 you to delegate authority and responsibility for decision-making and their implementation.

By living our values, we will be able to maintain the culture we need to achieve excellence in all our business endeavors.

Our values ​​are reflected in our successes, are binding on us and are offered to everyone who cooperates with us. We do not compromise our values ​​for the sake of profit. We perceive them as the connecting link in all areas of our activities and expect the same in our relationships with our business partners.

ETHICAL PRINCIPLES AND STANDARDS OF RUSAL

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 Company resources; behavior in situations involving 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.

EXTERNAL RELATIONS

Relations with investors, clients, business partners, competitors. All our relations are built 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 high quality of our products and services, stability and predictability.

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

We value our reputation and strictly adhere to the norms and rules of business ethics and law.

We assume that our business partners also maintain high ethical standards. Company agents, representatives and consultants must demonstrate their willingness to act in accordance with accepted Company policies and procedures and not violate our principles and values. Whenever possible, we encourage 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 unethical or unfair means to influence our partners or competitors, nor do we resort to threats to use them.

We are committed to complying fully with anti-money laundering laws and regulations. Money. We do business with those clients and business partners who have a good reputation and are engaged in lawful entrepreneurial activity, whose funds come from legitimate sources. When establishing a relationship with a new business partner, we carry out due diligence to ensure that he meets 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 conducting an audit or assessment of financial performance. None of the Company's directors or employees takes any direct or indirect action that could influence, mislead or deceive the Company's external auditors.

B. Relations with society. We view social investment as an essential element of sustainable development in the countries and regions in which we operate. Multilateral dialogue with local communities is an essential element of the Company’s social activities at all 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 members of 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 apply transparent mechanisms for financing social activities, involving competitive selection of projects and clear criteria for their evaluation. Information about our social programs is open to each participant.

B. Relations with government authorities. We strive to build and maintain healthy, constructive and open, conflict-free relationships with government agencies, officials and other government officials on a legal basis:

We do not attempt to unfairly influence the decisions of government authorities or officials.

We follow all laws and requirements that apply to our activities in each country where the Company operates, as well as the Company's guidelines. We are committed to both the letter and spirit of these laws and guidelines.

We pay taxes on time and in full.

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

Employees may participate in whatever political activities they deem appropriate on their own time and at their own expense. The Company will not provide any remuneration or compensation for these activities or their 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 securities regulatory authorities or in any other documents for general use, we guarantee the accuracy, objectivity, relevance, timeliness and reliability of this information .

D. Gifts and entertainment expenses. Gifts, services and entertainment expenses may be provided at the expense of the Company or accepted from a competitor, individual or a company having or seeking to establish a business relationship with the Company only if they meet all of the following criteria:

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

· Their cost is insignificant

· They cannot be construed as bribery on behalf of the donor

· Disclosure of such gifts or favors will not place the Company or its employee in an awkward position.

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

INTERNAL RELATIONS

IN this section the standards of relations between the Company and employees, requirements for employees, obligations and expectations of the Company are presented. The Company values ​​its employees - their performance is the key to its success - and expects from them high standards of business conduct and professional achievements.

Wherever we work, we work for a common result.

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

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

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

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

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

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

We strive to act in such a way that our close, personal, friendly, family and kinship 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 set goals.

We value our employees and reward them for success in their work based on achieving 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 its employees and provides all the necessary resources. We use them rationally to achieve our goals.

We welcome careful handling of the Company's property and funds.

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

We strive to use our resources rationally work time and the time of your colleagues and business partners.

Information is provided to those who need it for their work. At the same time, information should not be transferred to persons for whom it is not intended. All employees are responsible for the Company's property and assets, including confidential and proprietary information of the Company and third parties (as well as customers, suppliers and other business partners), for which the Company is subject to confidentiality obligations and obligations regarding 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 if each employee is... general director to the worker - will work efficiently.

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

Each employee participates in determining the goals of their own activities in accordance with the interests of the Company; immediate managers participate in determining the goals of their subordinates.

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

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

We are constantly improving our processes and methods of work, fighting unnecessary 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 supported data, calculations of the payback period of investments and expected rates of return.

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

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

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

CONFLICT OF INTEREST

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

We will avoid any relationships or actions that may interfere with our ability to make objective and fair decisions in our business.

The Code does not attempt to describe all possible conflicts of interest that may arise. It should be resorted to in any situation where a person's emerging personal interest conflicts with the interests of the Company as a whole or where a person may be considered to have received an unlawful personal benefit due to his position in the Company.

HEALTH, INDUSTRIAL SAFETY AND ENVIRONMENTAL PROTECTION

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 everything possible to ensure the absence of accidents, industrial injuries and environmental incidents.

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

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

We develop and improve occupational 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 that accompany his activities and affect the safety of his life and health, as well as the life and health of others;

· realize personal responsibility for your life and health and for the life and health of others; encourage by personal example the safe behavior of your colleagues and contractors at work, as well as family 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 effectiveness, initiate and apply advanced approaches to manage production and environmental risks;

· use natural and energy resources sparingly, treat the environment with care, 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 INTEREST

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

When performing their official duties, the Company's managers and employees must be independent of conflicts of interest affecting the Company or them personally.

The Company expects employees to conduct business with suppliers, customers, contractors and others doing business with the Company based solely on the interests of the Company and its shareholders, without favor or favoring third parties based on the employees' personal considerations.

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

The Company expects employees to promptly report any conflicts of interest to their supervisors.

In cases where a conflict of interest cannot be avoided, employees must disclose the conflict of interest to their supervisors and not participate in future decisions on this issue.

If a conflict of interest arises or may arise for a member of the Board of Directors, he must immediately inform the Chairman of the Board of Directors or the Chairman of the Corporate Governance and Nominating Committee. Members of the Board of Directors must recuse themselves 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.

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

We will avoid any relationships or actions that may interfere with our ability to make objective and fair decisions in our business. The Code does not attempt to describe all possible conflicts of interest that may arise. It should be resorted to in any situation where a person's emerging personal interest conflicts with the interests of the Company as a whole or where a person may be considered to have received an unlawful personal benefit due to his position in the Company.

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The social responsibility of business is determined by the significance of this institution for the life of people and civilization as a whole. Business is the most important social institution, thanks to which certain social structures and order in society are maintained. And this, first of all, determines his social responsibility in society. Being a powerful creative force, business can lead to the creation of a new situation in society. At the same time, we must not forget that business development can lead to the destruction of established social values, familiar details of the environment, and aggravation of social inequality among people (Emelyanov, Povarnitsyna, 1998). Therefore, the consequences of a businessman’s activities for society can be comparable to the activities of all other social institutions. Just like an institute of science or politics, a business can short term make the lives of many people happier or, conversely, devalue them and lead to serious upheavals in society. Many guides for businessmen and managers are based on the thesis that business plays a special role in society. There are concepts of social responsibility and business ethics based on the fact that a person is an undoubted value (in business as well as in other areas of life). All sections of business management are considered with this thesis in mind.

What is the social responsibility of business? Some business representatives, citing the works of A. Smith, believe that by its very existence, business plays a responsible social role in society: it creates jobs, promotes economic development, and provides technical progress by creating and mastering new technologies, satisfies people’s needs for certain goods and services, etc. However, most of the business community understands the problem of social responsibility much more broadly. Socially responsible business activities include a whole range of activities both inside and outside the organization. Within the organization, these may be measures aimed at improving the working conditions of workers, creating social infrastructure (providing workers with housing, childcare facilities, medical care, conditions for sports, nutrition, etc.), creating a comfortable psychological atmosphere, developing measures to ensure work-life balance, etc. In the external environment, the social responsibility of a business can have different directions. These are measures aimed at creating social infrastructure in the region or locality in which the enterprise is located, measures to reduce the harmful impact of the enterprise on the environment, establishing honest relations with all stakeholders (fair trade with third world countries, openness to shareholders and partners - business transparency, corporate volunteering and charity in all its forms, for example sponsoring children's sports teams, helping orphanages, etc.).

The main declared goal of business activity – making a profit – is ethically neutral. It can be considered highly moral if the funds received are used for the development of production, science or social sphere, and thus contributes to the prosperity of the community. For a long time, almost until the beginning of the 20th century, initially good, ethical goals economic behavior, associated with the production and distribution of economic goods, were pushed aside by the unbridled desire of economic entities to maximize their own benefit. Contributing to this trend were the weakness of legal regulation, as well as injustice and social inequality, enshrined in the social (including religious and ethical) norms of most states. Science is a reflection of existing economic and social reality. Accordingly, scientific theories explaining the economic behavior of people have long been distinguished by the predominance of non-humanistic approaches that ignore the influence of the ethical factor.

The view of moral regulation as secondary (compared to economic interest) and having a restraining influence on economic behavior remained until the middle of the 20th century. Changing relations between society and business in recent decades have led to a fundamentally different view of the relationship between economic activity and ethics. The increased influence of large manufacturers, financial institutions and trading companies on the well-being, safety and health of large groups of people has led to the fact that public opinion has begun to attach increasing importance to the morality of economic entities. The consequence of this was a change legislative framework many developed countries, tightening control over compliance with ethical standards in the economic and, in particular, business sphere.

Another reason for the change in attitude towards business ethics is a universal tendency noted by modern philosophers. The evolution of ethics reflects, on the one hand, man’s desire for personal freedom, which manifests itself in the fight against all types of power (religious, political, power public opinion), and on the other hand, the search for opportunities for cooperation and constructive interaction of people. Social norms that perpetuate inequality, allow for unfair distribution of income and the right to exploit some groups of people by others are becoming a thing of the past in almost all cultural communities. Skin color, gender, age or level of education can no longer be used to justify such immoral practices.

Of course, many business representatives would strive to continue to earn additional income using not entirely moral methods, if not for the losses that would have to be incurred if violations were discovered. Strict control over business by both government agencies and the public in conditions of intense competition leads to the fact that violation of moral norms becomes economically inexpedient.

Abroad, active discussions about ethical business began to take place only in the 1960s. At the same time, the first empirical studies in the field of business ethics appeared. By the 1980s activity in the field of business ethics, points out R. T. De George, has acquired such a significant scale that it could already be called a movement. The results of this movement have been the widespread adoption of codes of ethics, the introduction of ethics training programs and ethics committees in large companies.

By the beginning of the 1990s. Western governments have also taken up this problem. In 1991, the US Congress enacted a federal penalty statute that provided companies with the opportunity to reduce their fines if they could demonstrate that they had implemented an effective program to detect and prevent violations of the law. Such a program should include both the introduction of rules and procedures for compliance by the company's employees with moral and legal standards, and measures for supervision and control of their implementation. The adoption of the Code served as an impetus for many corporations to try to create a moral climate that would reduce the tendency to violate the law among staff. The consequence of this was the introduction of corporate ethics officers, one of whose functions is to oversee the implementation of ethics programs in corporations.

Thus, the moral regulation of economic behavior is in no way secondary to economic interest and legal restrictions. It is also incorrect to say that compliance with moral standards is economically unprofitable. As the results of our research and research by other authors have shown, the moral relations of an individual largely determine the choice of type of economic activity, methods and means of achieving goals, as well as the specifics of relationships with partners in business interaction. The peculiarity of moral regulation of economic behavior is that it is carried out in an implicit, often unconscious form (Kupreichenko, 2011). This hidden nature leads to the emergence of conflict situations that have moral implications. Eliminating the causes of such conflicts requires a clear clarification of the moral positions and dialogue of the interacting parties. There is a need to create a special language (conceptual apparatus), as well as procedures for developing systems of moral norms, negotiating and making decisions taking into account the moral component. The need to solve these scientific and practical problems is another reason for the growing interest in business ethics.

The areas of special ethics are such branches of knowledge as business ethics (business ethics), medical, technical ethics, ethics of people of liberal professions, etc. Sometimes the term “professional ethics” is used in relation to business ethics, but it should be noted that professional ethics is a much narrower concept. Business activity includes representatives of a number of the most various professions, whose activities are regulated by their own ethical standards and rules. There are ethics of accountants, ethics of salespeople, business ethics and a number of others. professional ethics. Each of them is part of business ethics and deserves special study.

R. T. De George emphasizes that business ethics, as a special field, is determined by the interaction of ethics and business. The concept of business, specified by R. T. De George, covers different kinds activities in the production, sale and purchase of goods and services for the purpose of making a profit. Thus, traditionally, business ethics studies the regulation of economic activity associated with the production, distribution and exchange of goods, i.e. those areas of activity that are related to business activity (business). It is clear that other types of economic activity, for example, the ethics of economic behavior in the family or the ethics of the unemployed, are beyond the focus of attention of specialists in business ethics. The following definition can be formulated: business ethics as a branch of knowledge studies the moral relations that arise in the field of business. A narrower understanding of business ethics is often found. Yu. Yu. Petrunin and V. K. Borisov proceed from the fact that business ethics is a scientific discipline that studies the application of ethical principles in a business situation. D. J. Fritzsche defines business ethics as the process of evaluating decisions based on their correlation with the moral standards inherent in the culture of a given

Stakeholder theory like the theory of social contracts, it calls for protecting the interests of all social groups with which the organization is connected or whose livelihoods may be influenced by the activities of the organization. The classic business view is that corporations have obligations to their shareholders. However, the stakeholder approach views the corporation as part social structure society to which it is also responsible. Stakeholders include shareholders, workers and employees, consumers, suppliers, government agencies, local communities, trade unions, social movements, competitors. IN modern ethics business concept of stakeholders is used as a frame of reference for analysis: the system of moral norms (specification of universal norms) and the degree of compliance with moral norms in relation to each group of stakeholders are studied.

In practice, an important question is the following: will the consequences of the functioning of the business institution as a whole be negative or positive? The answer to this depends on many circumstances. At the psychological level, the main factors that will draw a divide between the poles of valence of the consequences of a business will be, first of all, the activity and personality of a businessman, in particular the motives, goals and values ​​of a businessman on the path to success. In modern conditions, it is customary to view success as a certain result of the efforts of a person, group of people or organizations, which has social and public assessment. For example, about good leader firms say that he did a lot for the organization, but the bad thing is that he did everything only for himself. Thus, society largely evaluates the activities of a leader and decides whether his achievements can be considered a success. But the leader himself must be able to evaluate his own success. Therefore, the results will be assessed from different points of view, depending on one’s own perception and attitude towards oneself, other people, one’s business, i.e. about ethical standards, without which the work of a manager is impossible.

The well-known principle “the end justifies the means” causes rejection among many people, and for many years the dilemma – the end or the means – remains insoluble. Psychologically, business ethics is based on a certain human attitude towards the material and social world, expressed in a certain cultural space. For example, in the Western world, this attitude is based on the main values: work and wealth, embedded in the Protestant ethic (M. Weber, B. Franklin, N. Hill). This is also present in our culture, but not so straightforward, since in addition to work and money, love and friendship are traditionally of great importance.

If we trace the development of business ethics, we can note that in the modern world the principle “the end justifies the means” is sometimes, especially during periods of crisis and social upheaval, considered as the main recipe for success (this, by the way, still occurs today). At the same time, it attracts widespread criticism and is ethically unacceptable to many. The formula: “man is an end, not a means” is becoming increasingly relevant. And the development of a new approach to business, based on respect for the individual, is nothing more than a manifestation of the introduction of a humanistic approach into management ethics and the realities of modern business.

As a rule, a businessman is a person who makes his own career, i.e. tries to achieve success in his work. Therefore, the question of success criteria for him is closely related to both the real path of his advancement and the subjective assessment of this path and the results of his work (Melia, 2006). For one businessman, success will be an increase in income or the construction of a new office, for another - a transfer to new higher consumption opportunities, for a third - the popularity of the products of his enterprise, etc. We can say that success depends on the idea of ​​a particular person’s life, his value system, goals, attitude to life, and personal qualities. It is also important to take into account the circumstances characteristic of a particular social period. Under some conditions, the success of a businessman’s activity may be the development of his company and an increase in profits. In others, for example, unstable and difficult conditions, success at some point can also be called maintaining a position in the market, jobs, and sources of financing.

The experience of any businessman shows that there are no recipes for guaranteed success; it is important to know what a person himself understands by success: either luck, or the result of work, or both. But in any case, he has to test his moral principles in practice more than once.

In this regard, the issue of the career and moral character of the head of a business organization is psychologically important. For active, active, gifted and ambitious people, the prospect of making a profit and status advancement is of great psychological importance. Many people assert their dignity and make a professional statement through their careers. Main business qualities A businessman's qualities are his courage, ingenuity, initiative, and responsibility. All this is united by the term “enterprise”. Entrepreneurship reveals a person’s personal dignity and professional honor. Thus, each person, while making his career, solves problems of a professional and moral nature. Business reputation depends on your attitude towards people, society, and your activities.

Not only in terms of the amount of money and other material resources people evaluate a businessman, although this also plays an important role. His behavior, performance results, moral qualities, and habits are also assessed. The more consistently the behavior of a modern business leader demonstrates basic moral values, the wiser and nobler his daily actions, the higher his reputation among employees and business partners. Moral character is a very important category for a businessman. Organizational psychologists are familiar with this situation. The business organizer was rude to his subordinates, showed up drunk at work, etc. He believed that since the owner could successfully solve financial problems, everything would be forgiven. Very often, this behavior has detrimental consequences for business: people stop respecting the manager, start looking for another job, use company funds for personal purposes, etc.

Therefore, the moral character of a businessman is one of the factors in the stability of his business. What does this concept include? The answer to this question is very complex, since it depends on specific situations, people, cultural traditions of the people, religion, etc. In modern European business etiquette, a business organizer or leader must have such moral qualities as humanism, justice, moral will, honesty, integrity, accuracy, organization, sociability, and activity. In addition to efficiency, a businessman is also expected to have the ability to communicate with people. The effect of charm and personal charisma are very important components of success in modern business. A special role is given to the leadership qualities of the manager, the ability to lead oneself and at the same time support democratic principles in the team. The distribution of responsibilities in management is one of the most important democratic principles on which modern business is based.

Thus, in the moral character of an individual, general culture and upbringing are inextricably linked, which predetermine the level of development of moral qualities. If a businessman does not take into account the moral situation, his activities can become a threat to the development of the company. The level of development of his moral qualities will influence relationships in the team and the moral character of employees. In addition, the moral and psychological characteristics of managers regulate relationships with partners, founders, competitors and other stakeholders. In addition, they determine the direction, goals of activity and, ultimately, the psychological and economic efficiency organizations. Over the past decade and a half, we have studied various moral and psychological factors in the economic consciousness of managers. In particular, the attitude of entrepreneurs and managers to compliance with moral standards of business conduct, the ideas of modern Russian managers about the ethical problems of their activities; criteria of trust and distrust in business relationships among managers, managers’ ideas about the world of business, etc. As a result, it can be stated that modern Russian managers are mainly characterized by an awareness of the high importance of morality and moral regulators in their activities. A significant portion of managers have ambivalence and contradictions in their moral assessments of the world of business, money, and attitudes towards compliance with moral standards of business behavior. To resolve contradictions, managers use psychological defenses, depersonalization of responsibility for unethical actions, differentiated compliance with moral standards in relation to representatives of different social categories, etc.

The mentioned studies established that the moral and psychological characteristics of business activity are quite closely interrelated. For example, the moral assessment of the business world influences the choice of method of material self-sufficiency and the formation of individual behavioral strategies in business interaction (Kupreichenko, 2011). Thus, representatives of the first type with a negative moral assessment of money – “money is evil” – see the world of business in black tones. For this type, the activities of a leader are extremely labor-intensive, associated with a large number of moral contradictions, and therefore they reduce their activity.

For the second type of leader, the world of business is an interesting and risky world, the work is difficult but exciting, largely for the sake of money and the benefits that it can give. This type is characterized by an even attitude towards competition, high satisfaction with material well-being, the opportunity to increase material income, and the highest level of economic activity with an upward trend. They are characterized by a fairly high level of willingness to comply with moral standards, as well as the highest assessments of the morality of a “typical leader.” These are managers who are successful in business, probably largely due to adherence to moral standards.

Representatives of the third empirical type of attitude towards money view business as a world of competition, partnership, goal achievement, a world of great opportunities and at the same time a world of high risks, a world of self-realization, professional growth and achievement social status, a world of healthy competition. The level of economic activity, according to their estimates, is above average with a clear upward trend. The highest assessment of the possibility of increasing material income among all types. The highest level of competition. The attitude towards compliance with moral norms of truthfulness, responsibility, tolerance is quite low, but the highest value is integrity. Since these are ambitious and daring young leaders who are increasing economic activity, it can be assumed that intrapersonal moral conflict is a natural stage of economic self-determination for this. How the resolution of this conflict will be (constructive - with the development of one’s own ethical codes and strategies, or destructive - with a decrease in business activity) depends on many factors.

The fourth type exhibits a businesslike, adequate attitude towards the world of business - without emotions, the same attitude towards competition. Representatives of this type have no moral conflicts either in relation to money, or in relation to the observance of moral standards, or in relation to the world of business. It can be assumed that representatives of this type have realized themselves in the business sphere, have what they need for life and reduce economic activity in order to direct their energies to achieving other life goals.

For the fifth type - business and what is connected with it - money, connections, information, cruelty - a very useful game for real people. These leaders either don't consider ethical business practices to be important or simply don't think about it. Since money has the lowest importance for them, we can say that these managers have neither high goals in business, nor the means available to them to increase their well-being, nor the desire to seek them, so they reduce their activity.

The sixth type of managers is characterized by low adaptability in the business environment, a sharply negative attitude towards it (“the world of jackals”, “an ocean with sharks”, “there is no ideal”, etc.) and conflict with others. The world of business and the world of money seems to such leaders to be a hostile, immoral environment to which they do not strive to adapt. Apparently, this explains the strong downward trend in economic activity (Kupreichenko, 2011).

In the process of solving problems faced by a businessman, an important role is played by his value system. A person’s values ​​have a direct connection with the culture and norms of the social environment. This must be taken into account both in business activities and in advisory work. Business values ​​have always diverged in many ways from traditional ones, for example, the irrepressible enjoyment of life among the “new Russians” and virtues: diligence, hard work, punctuality. A businessman's list of values ​​can be quite broad, such as power, career, education, family, money, work, age, risk, attitude towards other cultures, ethnic groups, age, risk, work, helping others, reward and punishment, law, pleasure and etc.

Relationships with others are also determined by the content of a businessman’s life position. In practice, models that allow a person to understand his life positions work well, the most common of which is E. Berne’s model:

• 1. "I'm fine – are you okay". People who have developed such a life position generally have a positive attitude towards themselves. They are responsive, maintain good relationships with others, inspire trust, are calm, and responsive to changing situations. They value good relationships and contact with others.
• 2. "I'm fine – You're not okay." People who adhere to this position in life generally have a positive attitude towards themselves, but they feel a very significant difference between themselves and those around them. They consider most other people to be imperfect or worse than themselves. Believe that other people are not as smart, honest, moral, attractive, or experienced. They have an inflated ego, are difficult to communicate with, appear arrogant, suppress others, and exaggerate their role in work.
• 3. "I'm not fine – are you okay". People of this life position believe that they have a significant weakness or shortcoming that causes them to be inferior to others. They lack optimism about themselves. They focus on their weaknesses, failures, shortcomings, lack self-confidence, are prone to retreat, lack sufficient conviction, are unable to take the initiative, underestimate their role in work, and succumb to stress. They value others more highly and look up to others.
• 4. "I'm not fine – You're not okay." People in this position may feel depressed and may lose faith in their ability to create acceptable living conditions for themselves or feel pleasure in life. They are not energetic enough, are not able to show persistence, have become accustomed to failures, and are not creative enough in their work. They feel any relationship as a complete disappointment.

We can find justification for all four life positions, but still, for making a decision that balances the interests of various parties, the first position is most favorable, since it contributes to the establishment of harmonious relationships with others.

The improvement of morals always lags behind the progress of technology and technology. Whether a businessman will try to do something more than what he currently knows, whether he will strive to expand his capabilities and the capabilities of his company, what he will consider success and what success will satisfy him depends on what really he wants and appreciates. These and other questions are related to the moral position of a businessman. Thus, the moral factor plays a big role in the activities of a businessman, in the ways and means of achieving success and in the criteria for assessing what has been achieved.

The professional ethics of a businessman are based on traditional ideas about business and management, as well as on modern ethical standards of society. In our country it is still just being formed. One of the features of civilized business is the increase in psychological and moral factors. This is evidenced by the experience of developed countries of the world community. Almost all manuals note that a businessman and manager must have moral maturity. It manifests itself in dissatisfaction with achieved business successes and concern for one’s moral improvement. “Money and morality” is a principle known in many countries for several centuries. In our time, it has transformed into the principle of “economic science and social morality.”

In modern business ethics, the main attention is paid to the justification of the principles and norms of moral behavior of all participants in the organization, the need to treat official rights and responsibilities as a professional duty, obstacles are created for the development of socially dangerous personality traits: immodesty, injustice, bribery, biased selection of personnel, abuse power and bad habits.

Business ethics in all areas includes examples of the best moral solutions to specific management problems. New approach in business relies on human wisdom, which is opposed to a functional and narrowly oriented solution to individual problems. Therefore, moral problems occupy a large place in business ethics. They contribute to the preservation and strengthening of the moral health of the individual and the team.

Taking care of your moral health is the professional duty of a businessman and leader. Although, of course, the problem of moral health is very complex.

One can only outline the main components of this concept: moral feelings, moral position, moral habits, moral self-control. Therefore, it is important for a businessman to pay attention to his own values, goals, and feelings in achieving socially significant success.

There is a social and cultural conditioning of the criteria of moral health. For example, if 20 years ago the best confirmation of a person’s moral health was moral uncompromisingness, now more and more people are turning to a reasonable understanding of the situation, a vision of the immediate and long term and the ability to make reasonable compromises. This also applies to modern management. Therefore, the work ethics of a leader begins to include rules and techniques that were previously known only to diplomats, for example, ways to get out of a conflict or resolve a contradiction.

Modern theory (methodology and technology) of business management pays great attention to the problem of ethics and, as a consequence, to the improvement of the management system as a whole. This can be seen in many works, for example, M. Tribus on diagnosing diseases of the management system, M. Mescon and others on types of management and the need for an in-depth analysis of social responsibility and management ethics, J. Duncan on ways to manage goal-oriented systems, human factors, coordination and change ; R. Blake, J. Mouton on ways to manage conflict situations, etc.

From the experience of working with the heads of business organizations, we are convinced that the development of the moral positions of teams also occurs along the path of strengthening a civilized way of life. As a rule, in a mature team there is a friendly atmosphere. One can feel people's passion for the tasks at hand. Employees are confident in their abilities, show respect for managers, and trust in colleagues. In order for relationships in a team to be based on moral values, the efforts of all members of the team, a management system based on democratic principles, and the activity of the leader himself in this direction are necessary.

Indicators of the moral health of the team are:

• correspondence moral values team to universal human values;
• the passion of employees for the tasks assigned to the team or the acceptance of common goals by subordinates;
• conscious labor discipline and distribution of responsibilities, the fulfillment of which is prerequisite existence of the organization;
• satisfaction of team members with communication and joint work activities and confidence in fairness and correct attitude towards oneself;
• the presence of noble moral values ​​in the team;
• the presence of moral security for each member of the team, for example, the teaching staff guarantees the individual protection from any immoral attacks or non-recognition of his dignity;
• the presence of moral creativity, which manifests itself in the desire of the team to interpret (realize, comprehend) the moral principles and norms of society, as well as develop these principles and norms and collectively create new ones;
• the presence of traditions of holding debates, round tables, conferences at which issues such as professional duty, honor, dignity, and professional ethics are discussed.

A modern businessman has a large arsenal of means to maintain an appropriate moral climate in his team. Ultimately, moral attitudes influence the results of affairs and the state of people in the team. In the literature, such means are referred to as technologies of moral influence. When thinking through this technology, businessmen need to take into account that all employees, especially those who are managers of various ranks, participate in solving their problems differently depending on their place in the hierarchical ladder.

Business performs a variety of functions: planning, organizing, directing and controlling. Senior managers spend most of their time planning and organizing the business. Taking this into account, it is important for a businessman to carefully analyze what he spends his working time on, whether the responsibilities of his employees are rationally distributed and whether all management functions are reflected in specific activities. The business organizer can influence the distribution professional functions, formation of governing bodies, development of common goals, creation of traditions, etc. Big role This is due to moral influence.

Let us give examples of moral influence that will contribute to the moral improvement of the professional team and the development of the principles of business and interpersonal cooperation.

• 1. Creation of working conditions worthy of people. These are objective factors that reflect the attitude towards the physical and mental health of employees. These conditions comply with ergonomic standards and aesthetic needs.
• 2. Creating conditions for the professional and ethical growth of employees through various courses, the media, discussion of specific situations and actions, etc.
• 3. Creating conditions for accumulation professional experience and transmission of traditions. For example, mentoring, with the help of which experienced specialists pass on their experience to young ones. It's easier to learn from examples. Instructions that are not supported by examples have little, if not the opposite, effect.
• 4. Organization of work with the public. In developed European countries, many business structures participate in the life of society. For example, in the work of boards of trustees of educational institutions, in the organization of holidays, in the activities of socially significant structures, etc. Such work is necessary, first of all, to create stable living conditions for society, without which business cannot develop. Working with the public is an important means not only of solving the company’s immediate problems, such as selling products, entering new markets, but also for solving strategic problems related to survival and development. In our country, this tool is still poorly used by companies.
• 5. Use of moral influence methods in work. These methods are widely represented in the management literature. Traditionally, these include moral conviction, moral examples, systematic work with literary sources, consultations, business and role-playing games, and public assignments.

Modern approaches to business ethics involve the development of civilized forms of relations (Samoukin, Samoukina, 2001).

This needs to be taught to both managers and employees of companies. Training occurs both by analyzing one’s own experience and by using theoretical and practical examples of the work of our and foreign managers. It is important to note that the process of transferring cultural stereotypes, norms, and rules in management has a number of problems. For example, M. Trybus, the author of the so-called viral theory of management, writes wittily about this. His approach is associated with the creation of conditions for a developed management system and analysis of the health status of the organization. He believes that processes can also suffer from immunodeficiency. Managers need to work on management systems as well as solving specific problems. The management system can only be improved with the help of the people themselves, who can understand and get rid of their stereotypes and thereby change the standard management scheme when necessary.

In conclusion, the conclusion suggests itself is that achieving socially significant success in an organization and the survival of a business in a democratic and civilized society are impossible without the development of business ethics, which will be reflected in employees and the organization’s work system as a whole. Neglect of moral standards deprives the leader, his subordinates and the structure he manages of stability in dynamic social conditions, development prospects on a par with the best organizations and serious and reliable partners.

• DeGeorge R.T. Business ethics / trans. from English R.I. Stolper. St. Petersburg: Economic School. M.: Publishing group "Progress", 2001.
• United States Sentencing Commission Guidelines Manual // United States Sentencing Commission. 1993. November 1. Ch. 8. Bern E. People who play games. M.: Eksmo, 2011.
• Ivanova N. L., Mikhailova E. V., Shtroo V. A. Introduction to business psychology. M.: Publishing house of the State University Higher School of Economics. 2008.
• Trybus M. Viral theory of management. M.: RIA Standards and Quality. 1997.

Modern trends in business development have long confirmed the need for a social orientation. Entrepreneurs strive not only to make a profit, but also to provide all possible assistance to society in solving social problems. But there is an important component in this direction, which not everyone takes into account. Any socially oriented event must bring benefits, material or intangible, but must be beneficial in the long term. There are several strategies that can achieve this effect; entrepreneurs should know them and put them into practice.

What is social responsibility of business

The social orientation of doing business involves the implementation of certain measures aimed at the benefit of society, carried out at the expense of the organization. With their help, socially significant programs are implemented to improve the lives of certain segments of the population or for employees of their company. The results of such companies contribute to growth, improvement of image, development, and increase in the profit of the performer, that is, the enterprise.

The social measures plan has its own distinctive features. It is constantly reviewed and changed in accordance with modern trends development of society. Such a plan is adopted by an individual enterprise independently and voluntarily. Coordination with other project stakeholders may also take place. As a result of socially oriented activities, the following goals are achieved:

• improving the company's reputation at the level indicated target audience and the entire settlement;
• improving the company's image;
• increasing the volume of manufactured and sold products;
• improving the quality of services or goods of the enterprise;
• development and strengthening of the corporate brand;
• the emergence and strengthening of new partnerships, connections with representatives of business, government, civil associations and organizations.

It should be understood that social responsibility of business is not the same as charity. Also, social responsibility cannot be associated with the following concepts:

• PR and self-promotion;
• political activity and promotion of the individual;
• government projects and programs;
• economically oriented government programs.

How is social responsibility assessed?

This concept has a clear assessment structure; it is carried out at several levels.

The first level means compliance with the laws of the Russian Federation, according to which business carries out certain social functions. For example, registration of employees according to the Labor Code of the Russian Federation and full payment of taxes means relieving tension in society and guaranteeing stability. Also, work at this level means compliance with the laws of the Criminal Code of the Russian Federation, and conducting business activities within the legal framework.

The second level of social responsibility of a business involves conducting activities that make the enterprise attractive to investors and consumers. This is the creation of a product or service that contributes to the growth of citizens’ well-being, strengthening their health, etc. And the attractiveness of a business for investors means improving the image of the entire country.

And the third level of responsibility involves planning and implementing activities that are aimed at relieving social tensions, strengthening the image of the enterprise, but at the same time - the lack of profit in monetary terms.

The entrepreneur himself decides at what level he works, but it should be noted that the implementation of the highest level is impossible if the previous one is missing. For example, participation in serious events on regional level It is impossible if your employees receive “black” wages and work illegally, without paying full taxes.

Models of corporate responsibility

Corporate responsibility can take four forms. All of them are aimed at the well-being of the company, so they are worthy of attention.

Manipulative model– involves processing public opinion to achieve the company’s goals.

Information model– achieving the company’s goals through constant information regarding the company’s intentions in a variety of directions.

Model of mutual understanding– explanation of the enterprise’s behavior and understanding of the employees’ behavior.

Social partnership model– study and analysis of the entire social environment and public sentiment in general.

Each country has its own preferences for corporate partnerships and liability. In Russia, these concepts are still at the stage of formation. Analysts say that positive results and achievements are already visible. It traces the features of the European model (when the state actively takes part in the formation of the company's strategy) and the British (with the participation of voluntary employee initiative in the company's policy).

Forms of social responsibility

Social responsibility can be hidden or open.

Open strategy presupposes the behavior of an organization when an enterprise takes responsibility for solving issues that concern society. This form of social responsibility is chosen independently; behavior and all measures are formed voluntarily.

Hidden the form affects all institutions of the state - official and unofficial. All activities and plans are coordinated with these institutions. The norms, rules of behavior, values ​​and even the mission of the company are formed in full accordance with the interests and objectives of the state; in achieving its personal results, such a company works primarily for the goals and objectives of the entire society and the institution of the state. Moreover, the goals are not only social, but also political and economic.

Basic principles of social responsibility marketing strategies

In order for the principles of social responsibility to be unconditionally visible and accepted by society and business partners, certain rules should be followed. The first is to always keep all your promises, do what you say. This attitude, without further ado, demonstrates respect for consumers, partners, and demonstrates impeccable ethics in business circles.

The second principle is honesty in advertising. Never promise in videos and texts what you cannot deliver in your products or services. Consumers will definitely appreciate honesty and lack of exaggeration in this regard and will begin to respect your company.

The third principle is to demonstrate ethical behavior in your products or services. For example, it is very important to note on a product that it was produced without harming the environment. It is also important to honestly indicate the composition, and it is very good if it does not contain harmful substances both for the human body and for nature. Or, for example, many indicate the period for recycling and decomposition of packaging, methods for its harmless decomposition into components that are safe for nature.

The effectiveness of socially responsible business

The chain of growth for a business that is socially responsible is quite simple. It is not difficult to trace the effect of events that have a social orientation. Positive effects can be seen after some time; an immediate effect should not be expected. The first stage of implementing such a strategy is full monitoring of the situation in society, preparing a so-called social profile. Based on the identification of problems and critical issues, an action plan is formed. In the course of its implementation, business tasks expand and production develops. Which ultimately entails an increase in respect for the enterprise from consumers, an increase in sales, and an increase in profits.

Confirmation of the growth of loyalty to socially responsible enterprises according to research from various organizations:

• citizens prefer to buy products from companies that have proven their social responsibility; in the USA this figure is 83%;
• young professionals prefer to work in companies with a high degree of social responsibility, especially those that are attentive to environmental issues;
• three quarters of working citizens are convinced that if an enterprise is involved in issues of social responsibility, then it is certainly interested in their personal development;
• The Institute of Business Ethics has provided figures that show that companies with a high degree of social responsibility have success rates that are 18% higher than those of ordinary companies.

What is the social responsibility of business?

Internal responsibility:

• creating conditions for labor safety;
• stable wage payments, the level of which is considered acceptable and above the average in the industry;
• medical care for employees and additional measures to maintain their health;
• training and advanced training of employees;
• providing financial assistance to employees who find themselves in difficult living conditions.

External social responsibility:

• rendering sponsorship in promotions and programs;
• participation in measures to revive natural resources and protect the environment;
• close contact and cooperation with local communities and authorities;
• participation in crisis situations of the city;
• responsibility to consumers in terms of the quality of a product or service.

Social responsibility quite often takes the form of volunteering. It is expressed in the form of visiting specialized institutions and helping them, these are orphanages, nursing homes, hospices, animal shelters.

Interesting forms of responsibility to society are the appointment and payment of special scholarships and bonuses to talented citizens, pensions to deserving people, participation in the formation of funds to support certain areas of social life (sick children, talented performers, etc.).

Remuneration for socially oriented enterprises from the state is also an expected, but not obligatory, factor in this activity. Sometimes such enterprises are exempt from certain types of local taxes, and sometimes they are given priority in competitions and tenders. But such measures are not guaranteed to anyone; they are not an end in themselves for businessmen.

Elena Shchugoreva is a business consultant, a trainer in public speaking and speech techniques, and the head of the online school “Orator Master”. She can be contacted by email [email protected] or through a group on Facebook

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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 emerged, according to which successful organizations are required to donate a portion of their funds to the benefit of society. E. Carnegie invested 350 million dollars. into 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 Social Responsibility of Business, H.R. Bowen described how the concept of social responsibility applies to business and the socio-economic benefits that can arise from recognizing the importance of social goals in business decisions.

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Two points of view on the organization's attitude towards social environment The first point of view is that an organization is socially responsible if it works with maximum profit and at the same time sacredly respects all the laws and norms of his society. According to this point of view, an organization should pursue only economic goals. A staunch supporter of this theory is the laureate Nobel Prize M. Friedman, according to whom “the role of business is to use resources and energy in activities designed to increase profits, and to comply with the rules of the game... as well as to participate in fair competition without fraud and deception.”

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Two points of view on the attitude of an organization to the social environment According to the second point of view, an organization, in addition to obligations of a purely economic nature, is obliged to 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 social problems of society. This approach also implies that society expects modern organizations not only high economic indicators, but also great success in achieving social goals. The new view is that an organization must act responsibly in a number of areas: environmental protection, health care, civil rights, consumer protection, etc.

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Legal responsibility of business Legal responsibility, unlike social responsibility, implies compliance with specific laws and regulations government regulation, defining 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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Arguments for and against social responsibility Main arguments in favor of social responsibility of business: Favorable long term prospects for the companyChanging needs and expectations of society Availability of resources to help solve social problemsMoral obligation to be socially responsible

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Arguments for and against social responsibility Main arguments against social responsibility of business: Violation of the principle of profit maximization Expenses associated with social activities Low level of reporting to society Lack of skills to solve social problems

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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 select programs that will be most effective for it. Socially responsible actions are not only the prerogative of large companies. Social responsibility involves more than just philanthropic activities; after all, the main thing for the survival of any company is profit. Profitability and growth go hand in hand with a firm treating its employees, customers and the local community fairly.

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Ethics and modern management The subject of business ethics is the principles that determine right and wrong approaches to doing business. Public opinion polls have shown that the public is convinced that ethical business standards are declining. According to L. Osmer, “ethical problems in business relate to a conflict, or at least its likelihood, between the indicators of an organization’s economic activity, measured by its income, costs and profits, and 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: writing codes of ethics, engaging in social audits, and providing ethics training.