The owner of Russian metallurgical company promotes best Corporate Social Responsibility practices
In an ever-changing business environment, factors that affect an organization’s image, reputation and credibility are now going beyond the traditional combination of price and value of the available product / service. Today, new standards of business practice are emerging which in addition to the provided products and services and the value those offer, are governed by the principles of corporate responsibility, promoting a wide range of actions.
In recent years, Cypriot enterprises, especially medium and large-sized, have been focusing on the practical aspect of responsibility in business, with more and more choosing to integrate social, environmental and other actions into their budget. Recently, Cypriot businesses had the opportunity, during a specialized conference, to become familiar with internationally recognized practices of corporate social responsibility. In particular, one of the largest companies in the steel industry worldwide, Russian Magnitogorsk Iron & Steel Works (MMK), visited Cyprus in order to share its know-how and expertise with the companies operating in the Cypriot market.
Through a multi-faceted CSR program, MMK and its Chairman of Board of Directors, a prominent Russian businessman Victor Rashnikov, allocate millions of euros every year towards the implementation of a series of activities that aim primarily at protecting the environment and improving the quality of life of the residents of Magnitogorsk, the city where the company’s production facilities are located.
Forging social bonds
A major channel of MMK’s social investments is Metallurg Charity Foundation, founded in 1993. In addition to the activities that MMK promotes at corporate level, the metallurgical enterprise is also the main contributor to the fund’s budget with more than a 90% share. The Chairman of the Foundation’s Supervisory Board is Viktor Rashnikov, who, since taking the helm of the company in 1997, has implemented a series of actions that have enhanced the local community. Through the Foundation’s programs, such as the “Veteran”, the “21st Century – for the Children of the Southern Ural”, etc., vital help has been provided to the children and the elderly of the area.
Recently, more than three million euros were allocated to the Foundation’s Care Program benefiting 30,000 retirees, people with disabilities and low-income groups who used to work at industrial enterprises, as well as to the public services of Magnitogorsk and other neighboring areas.
By deriving inspiration and ideas from such enterprises as MMK, many Cypriot companies could implement a targeted CSR program that will not be limited to financial contributions and charity events. Instead, they would integrate the local community and their staff into the sphere of their activities, thus providing additional incentives to all parties involved.