Interview of csrkz.org portal with Alexei Bendz, PR Director of AES Kazakhstan

-  Alexei, this isn’t the first year you have worked in the area of corporate social responsibility (CSR). How would you assess the contemporary level of CSR development in Kazakhstan?

- I can see that, both in society and in the business environment, more attention is being paid to corporate social responsibility. For many Kazakhstani companies the issues related to CSR have become a priority.  However, for further development of CSR in Kazakhstan, this area must be encouraged. On the part of the government, this would require supporting the enterprises that are actively working in the area of business social responsibility. There are many large companies in our country that have a high budget but do not invest these funds in social responsibility—in intelligent projects that would develop society, because they think that they don’t gain anything from it. But if companies had some motivation, such as tax exemptions, I think many companies would be happy to introduce CSR into their business practices.

- You have already touched on the subject of our next question. What factors, in your opinion, hinder development of CSR in our country?

- I already mentioned governmental support. Another issue is the principle that is often fundamental to business functioning in our country. Many social projects are being implemented by companies not in order to help the community, but in order to promote the companies themselves. I think the companies must come to an understanding that if they are to work in society, if they are to make money in this community, they need to help it. For some companies it is enough to know that they simply pay taxes. They think that is their way of helping. On the other hand, there are a lot of people in the community that really need help, and unless business representatives become more humane in these matters, I don’t think we can talk about any development whatsoever. Moreover, if these projects were transparent and accountable, and the general public had the opportunity to know how the money is being spent and what it is being spent on, I believe that this would allow many companies to become more involved in corporate social responsibility.

-  What is the vision that AES Company adheres to in the area of CSR?

- Corporate Social Responsibility is a very important part of the activities of the company. Within our social activities, the company is working in the following three areas: health care, education and assisting orphans.

In health care, AES has implemented several interesting projects. For example, in Eastern Kazakhstan, we have donated several fully-equipped ambulance vehicles. One of the vehicles—a Hyundai ambulance— serves a Semey birthing center; another similar vehicle was given to a prenatal center in Ust Kamenogorsk. When we donated these cars, the doctors especially commented on how soft the ride of these vehicles are, which is especially important to women who are in labor. Anyone who has ever ridden in UAZ cars would know what I mean. UAZ vehicles also have another advantage—they are very reliable and low-cost in terms of maintenance, which is why we gave two ambulances to the regional healthcare unit to work in remote areas of the region. Just last week we also donated to the Semey Cancer Center an ambulance car for transporting seriously ill patients from Ust Kamenogorsk. Furthermore, we also fully paid for the renovation of a wing in a regional hospital in 2006. Last year we continued these efforts by completing a project to establish a burn center in Eastern Kazakhstan. I must say, it was very timely as the next day after the builders left the facilities—even before the Center was officially opened—all beds were filled—one  hundred percent.

As for education, together with Eurasia Foundation of Central Asia, last year we completed a large five-year project. In Gumilyov, at the Eurasian Humanitarian University in Astana, we have established a Masters Program for Environmental Management and Engineering. The program is aimed at training highly qualified personnel capable of making the correct decisions in solving problems caused by air and water resource pollution. We currently intend to issue educational grants to students from orphanages who intend to go into technical professions. In the future, after they graduate, these kids can be employed by our company.

Besides small but continuous projects to assist orphans, the AES Company, together with Eurasian Foundation of Central Asia has, for three years, been implementing a program to enhance the social development of children raised in an orphanage in Shulbinsk. The regional orphanage is in Shulbinsk village, seventy kilometers from Semey. The village was built around the Shulbinsk Hydro Power Plant, which is in use by AES Company; therefore we can directly observe the process of program implementation. The program is intended to raise the living standard and welfare of children from the Shulbinsk orphanage through development of communication skills and leadership qualities in these children, and through improvement of teachers’ skills in working with orphans. We were very happy to see that even the very first year produced excellent results: kids hardly ever have any conflicts with villagers; generally, they have found their identities and are able to see the world from a different point of view. All of the 11th-grade graduates were able to enter college to learn the professions they selected.  Moreover, during the course of this year, they received vocational training as cooks, seamstresses, drivers and hairdressers, which means that even if that does not become their primary activity, they will always be able to do things for themselves and their families—make a meal, sew clothes, etc., which is a lot in itself.

At the moment, the program is expanding to cover the entire eastern part of Kazakhstan. Even now, there is a support center for the graduates of orphanages working in Semey; there will also be a graduates’ association established. In short, we are trying to create an environment in which a young person will not be left all alone in this big, confusing world, but will be able to receive both psychological and legal counsel. We are especially emphasizing the goal of having those students who were admitted to college complete their degree—we don’t want them to drop out, as often happens even with kids raised in homes. The staff of the center will also supervise that. Generally, our social development work is being conducted and is not going to stop. We have plans to implement other projects that are equally interesting and necessary for the region. Year after year, our corporate social responsibility budgets increase.

- Tell us about your company’s policy in environmental protection.

-  In the environmental area, the AES Company has a very clear policy established. Back in 2008, all enterprises of the company received certificates of compliance that testified that their integrated management systems complied with international occupational safety and health standards—OHSAS 18001:2007 and environmental management system 14001:2004.  In 2011, we were certified as compliant with the requirements of quality management standard ISO 9001. Our certification authority is an acknowledged TUV SUD international company. Our environmental experts, apart from their special training, have undertaken internships in various countries in the world, where they received the most advanced knowledge and experience in environmental defense.

In view of the fact that some of our enterprises inevitably affect the environment, the company continues to work on decreasing any possible damage to the environment, because the production of environmentally friendly and good-quality electric and heat power is one of the priorities of AES Corporation.

- Could you share a little bit about supporting your employees and about their development? What is the Company’s policy in this area?

– The Company is interested in developing its employees. This year we opened a corporate training center in Kazakhstan: a separate building with separate training classes, and special testing areas for electrical and thermal engineering. This center is the biggest for the AES Corporation in the world. It works continuously, through the staff of teachers who hold training sessions and courses. This certainly implies that the Company cares about the development of its employees. We endeavor to make their work even more safe and effective; we want their work to be of consistently excellent quality. Training at the center is free of charge for all employees and the list of courses continues to expand. This is a great example that demonstrates the general understanding by the corporation of its mission in terms of our responsibility to society. We invest large amounts into social responsibility projects—tens of millions of tenge, but we do not see these funds as wasted because as we raise the level of the society and we ourselves benefit from that, in the widest sense. That is, just as I have said earlier, it is also to our benefit to better society. Everyone benefits.

- Do you involve your employees in the company’s charitable activities?

- Certainly. Several times a year, we arrange a big collection of clothes and toys for kids in orphanages. We put out large boxes, hold promotions at our offices; we send out emails, make posters, collect the donations and take them to orphanages. Also, every spring we congratulate our veterans. For example, the Shygysenergotrade Company collects food baskets each year for all the veterans in Eastern Kazakhstan and we involve our employees as volunteers. Our company’s specialists do so gladly: they buy, pack and take groceries to people. We also have established a tradition of holding corporate volunteer clean-ups when our employees gather together and go to some place in Ust Kamenogorsk and Semey to pick up litter there. For our employees, this is a common spring practice. Members of the Young Specialists’ Council are the most active participants of these unofficial projects—these are young kids, with hardly any experience, but with great grades on their diplomas; very promising young people that the company has taken on for further development. The point is that for the company, working with these young people is also a social project as there is yet a lot to be invested in them—they need to be mentored, trained and nurtured. But these investments are worthwhile, and often such kids climb the career ladder rapidly, making themselves useful both to the company and to their families. To these kids, this Young Specialists development program becomes a start in life. 

We also have a Young Specialists’ Council and we involve them in different projects whenever we need help. They also invite and involve us when is needed.

- Tell us about AES Company’s experience in working with non-governmental organizations.

- NGOs are some of our main stake holders. We work with them in matters related to the environment, social responsibility and safety regulations. For instance, Eurasia Foundation of Central Asia is our reliable partner, with whom we’ve been working on various social projects for over five years now. The work continues on different levels and in various directions. We happily assist NGOs; we help, train, explain, and support different projects. It’s a mutual process of growth.

- How do you inform the general public of the charitable campaigns held by AES? What mechanisms do you use?

- When we have big projects, of course we make them known to public. For example, when there is a memorandum being signed with the Akimat of Eastern Kazakhstan we call for a press-conference and share our planned projects. On one hand, it is important to talk about social projects, but on the other hand, we should not become too fixated on publicity and try to build relationships with the community exclusively based on that. When there is too much promotion like that, it may only damage and scare people. It’s always good to know when to stop.

- Tell us a little bit about your personal experience in participating in charitable projects. Have you ever worked as a volunteer?

- There were a couple of exciting projects. One of them was as follows: a friend of mine had a baby with serious liver problems. The child needed a liver transplant. My friends and I were able to collect $30,000 in just a week in order to send the baby for a surgery in Moscow.

Another project was quite well-known. In 2006, under the umbrella of the Nomads Initiative Group, we organized a project called “Horse Parade.” There were statues of horses painted by different artists set up throughout the city. We sold these statues to different firms and we also organized an art-festival and a charity event and had a big event in the square with the participation of various performers. We used the funds raised to buy a blood transfusion machine for Almaty prenatal center. We managed to raise $30,000 in one month. No one received any profit from this project—that was the main requirement.

“Open Kyrgyzstan” interview with Asel Arstanbekova, Director of CSR Business Network

During recent years many people have been talking about corporate social responsibility, philanthropy and the role of business in solving a country’s domestic social problems. What is CSR? What price has to be paid for this concept and does Kyrgyzstan need this?

АА: Not only in Kyrgyzstan but also in the global world society people are holding discussions on corporate social responsibility, that is policies for involving business structures into society and solving social-orientated problems. In developed countries the corporate social responsibility concept has been actively applied since long ago.  As for us we are only now taking our first steps in its direction. This was influenced in many ways by the events currently happening in the country. The CSR process has been running for about 20 years in the world, and today there are many versions of what exactly corporate social responsibility (CSR) is. The term CSR is unique because it holds a certain meaning although its understanding in not always identical throughout various regions in the world.

How do you evaluate the development of CSR in Kazakhstan?

Companies and corporations that have international investors are more effective in this regard. At their level, CSR is a must. However, the results of the Republic’s “Paryz” contest have revealed that many small- and medium-level companies have met certain CSR benchmarks.  Such contests help develop a better understanding of CSR concepts.

Since 2004, UNDP Kazakhstan has been actively involved in promoting the UN Global Compact principles as well as expanding the local Global Compact network. As a response to the national priorities, UNDP began implementing projects aimed at increasing the understanding of the private sector, government institutions and civil society organizations of the role and potential of business in addressing social concerns. In order to understand the dynamics behind the CSR promotion in Kazakhstan, UNDP, jointly with the Forum of Entrepreneurs of Kazakhstan, decided to carry out a sociological study to research the current status and prospects for development of CSR in Kazakhstan.

From your point of view, how are corporate social responsibility and corporate governance interrelated?

In my opinion, these concepts are inextricably linked. Corporate governance and corporate social responsibility (CSR) complement each other, allowing the company to increase efficiency and achieve better results in their work. But this relationship is not obvious to everyone. Besides, I am sure that there will be opponents to my point of view, because, unfortunately, many people still share the view that businesses do not have to be socially responsible.

Corporate Social Responsibility: a Study of Kazakhstan Corporate Sector

Abstract
Purpose: The main purpose of this research is to know the attitudinal displays of Kazakhstan companies’ towards Corporate Social Responsibility.  Apart from this, this paper also analyzed the opinions of Kazakh employees, customers and general public about their companies’ socially responsible actions.

Corporate Social Responsibility: A Corporate Governance Perspective

Corporate social responsibility (CSR) is a concept with a growing currency around the world. It overlaps with concepts such as corporate sustainability, corporate sustainable development, corporate responsibility, and corporate citizenship. It does not, however, have a universal definition. Some see it as the integration of the economic, social, and environmental imperatives of business activities. Others see the creation of innovative and proactive solutions to socioeconomic and environmental challenges, involving  both internal and external corporate stakeholders.

In your opinion, what is the current state of CSR in Kazakhstan?

-At the moment, CSR in Kazakhstan is only at the initial stage of its development, if compared to the levels of CSR development in member-countries of OECD. Mostly CSR in Kazakhstan is treated as a charity, in the form of sponsorship or voluntary based actions in several spheres of public life, which are aimed mostly at promoting companies’ PR activities.

Business daily CAPITAL. Olga Veselova/- CSR practice is the subject of many arguments, misunderstandings, critism and debates. From one point of view, people say that companies receive many benefits from having a wider and more long-term outlook than their own immediate short-term profit. On the other hand, critics say that CSR departs from the fundamental economic role of business. However, in 2000, the UN established a Global Compact to promote the concept of responsible corporate citizenship,