In the Republic of Kazakhstan, basic social norms are gradually improving, which is raising the overall quality of life in Kazakhstan (living wages, minimum wage, and consumer basket) – this is the standard of a social responsible state.

In accordance with recommendations made by the International Labor Organization, and based on past experience of developed countries, a Code of Labor was adopted in 2007. This allowed for the introduction of a fundamentally new legal model of workers’ rights, designed to further develop social partnership. In the country, there have been over 21 thousand collective bargaining agreements, 2,000 of which were regional, and 19,000 of which were sectorial.

In Kazakhstan, the international model of Corporate Social Responsibility was met with the most widespread popularity. This model includes public-private partnerships, charity, and philanthropy, and establishes the responsibility of companies to their partners, to consumers, to society as a whole, and in general to environmental preservation and responsible treatment of employees. A characteristic feature of Kazakhstan's model of social responsibility is participation in solving social problems in cooperation with state and public structures.

The ministry conducted an analysis of the development of Corporate Social Responsibility in the Republic, based on the experience of over 40 large enterprises in 7 industries (mining, oil and gas, construction, легкой и пищевой промышленности, and agriculture). The analysis indicates the presence of internal and external Corporate Social Responsibility  in Kazakhstan.

Internal social responsibility is development and training of employees; providing health care and a safe work environment; creation and maintenance of extra services related to the law, health and safety standards, workplace conditions; measures to reduce harmful impacts on the environment; and adoption and dissemination of good business practices between business partners and customers.

External social responsibility is sponsorship and corporate philanthropy designed for external recipients, protecting the environment through the use of new environmentally-friendly technologies, interaction with the local community and local authorities on the development of the region, willingness to participate in crisis situations of the region, and responsibility for consumer goods and services, by producing quality products in accordance with industry standards.

The activities of a business are dominated by the costs that are associated with external social responsibility. 53% of funds are directed to development and maintenance of social infrastructure and infrastructure in the region, 35% are directed to nature, and about a tenth are directed towards staff development and training, health care, and creation of a safe working environment. In some regions, practice in development of signed Memoranda and Agreements on Corporate Social Responsibility. In Astana, for instance, in order to help bring together business initiatives and social interests, they held a fair where business representatives signed a memorandum for the joint implementation of 45 projects totaling 1.1 billion tenge.  Similar memoranda were signed in Atyrau, Karaganda, Zhambil, Northern Kazakhstan, and Southern Kazakhstan regions. In Akmol, Aktyubinsk Kostanay, Zhambil and Mangistau regions, special funds were created to implement meaningful social projects.

For internal social responsibility, funds are directed to an increase in workers’ wages, creation of safe working conditions, and workforce development. The leader in this field is the mining and smelting industry, which directed over 18.7 billion to this purpose in 2006.

Salary is one of the most important components of internal social responsibility. Today, the minimum salary in the country is about 10,515 tenge, and the average salary is about 54 thousand tenge; this is 11.2 times higher than the average salary in the mid-90s.

To further the development of social policy objectives depends on the creation of socially oriented businesses and partnerships, and the creation of a cooperative triangle “state – society – business.” During 2007, the Ministry, together with its social partners, implemented several common parameters for a Corporate Social Responsibility model in Kazakhstan, including indicators on industry and enterprise. This was designed to introduce agreed-upon definitions of the indicators of Corporate Social Responsibility, and to secure them in the agreement with specific numerical targets. When defining the indicators, viability and the effects of development were necessary points to consider. These suggested indicators of Corporate Social Responsibility were in accordance with the UN’s Global Compact

To assess internal social responsibility

• Workers’ wages
• Financial support for secure and safe working conditions
• Professional trainings, refresher courses, and advanced qualifications trainings

To assess external social responsibility

• employment promotion
• Investment in the establishment of socially significant projects (rehabilitation centers for the disabled, mobile centers for vocational-technical training, etc.).

Forum participants noted significant social activities among Kazakhstan's businesses, and their readiness to develop this form of partnership in society.
At the forum, President of the Republic of Kazakhstan Nursultan Nazarbayev На Форуме Президентом Республики Казахстан Нурсултаном Назарбаевым established “Paryz,” an annual competition on Corporate Social Responsibility.

The competition aims to develop Corporate Social Responsibility in Kazakhstan, increase the role that Corporate Social Responsibility plays in solving pressing social issues, and build a positive perception of Corporate Social Responsibility in the public consciousness.

The results of the Forum called for signing of an Agreement between the Ministry of Labor and Social Protection of the Republic of Kazakhstan and the socially-oriented business-structures of the country, in order to advance the principles of the UN Global Compact  on social and labor relations, within the framework of the defined indicators on internal and external Corporate Social Responsibility

Press Secretary of the Ministry
Dyusenov Arseniy Kenesovich
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(87172) 74 35 30, 74 28 55
+7705 311 0067
http://www.enbek.gov.kz/socotv/soc_details.php?IDSoc=50