Having a considerable impact on the development of a big number of Russia's industries and the Russian society as a whole, Sistema JSFC regards corporate social responsibility as a strategic platform required for the sustainable development of its business. The company operates in accordance with the Principles For Responsible Investment, which reflect the existing correlation between environmental and social issues on the one hand and corporate governance and investment practices on the other. Sistema makes sure that its business goals are consistent with public interest and takes into consideration environmental, social, and corporate governance (ESG) factors underpinning the sustainable development of the market sectors and regions in which its portfolio companies operate.
Sistema JSFC became one of the first Russian companies to join the United Nations Global Compact (in 2002) and strictly abide by the ten principles of sustainable development enshrined therein. The Corporation fully embraces the social responsibility concept outlined by the Russian Union of Industrialists and Entrepreneurs in the Social Charter of Russian Business, as well as the international standard ISO 26000: 2010 (Guidance on Social Responsibility).
Sistema's Policy on Corporate Social Responsibility defines CSR as a philosophy of long-term and sustainable development of the Corporation that would allow for a harmonious combination of a successful business with basic human values and national development priorities. Sistema's CSR principles include the following:
- improving living standards through innovative business development and adoption of new technologies;
- ensuring occupational safety and investing in human potential;
- protecting the environment;
- making efficient investments in manufacturing development aimed at enhancing Sistema's competitiveness to benefit its business and Russia's economy as a whole;
- taking into account the expectations and opinions of interested parties, adopting a consistent approach to building a mutually beneficial relationship with such parties based on good faith and business ethics;
- making a contribution to the development of local communities by building mutually beneficial partnerships in the regions of the Corporation's presence;
- openness and transparency, development of social reporting.
In its daily operations the Corporation aims to make sure that its contribution to sustainable development is long-standing, consistent and transparent for all interested parties, the key ones being:
In its interactions with investors and shareholders, the Company sees sustainable business growth, high return on investment, increasing shareholder value, and development of an effective mechanism for planning and implementation of investment projects as its main tasks.
In its interactions with the State, the Company recognizes its responsibility to ensure strict compliance with legislation, create conditions for resource and energy efficiency, environmental safety, job creation, development of the nation’s economic and innovation potential, improving the living standards of the population.
In its interactions with employees, Sistema is committed to providing decent salaries and work environment. The Company recognizes its responsibility as an employer to offer jobs with competitive salaries and fringe benefits, provide for comprehensive professional and cultural development of its employees, and offer opportunities for career growth.
In its interactions with customers, Sistema and its subsidiaries are responsible for ensuring strict quality and environmental safety control of products and services, and building long-term relationships with customers based on mutual trust and respect. The Company’s portfolio companies seek to accommodate the interests of different customer groups and grow their business to meet the different needs of our diverse customers.
In its interactions with partners and suppliers, Sistema is guided by the principles of transparency, openness and fairness, providing interested parties with all required information to an equal extent. Equal access to procurement procedures is implemented through the provision of equal competitive opportunities and uniform rules for all bidders in the procurement process before the launch of the tender process.
In its interactions with NGOs, public organisations and local communities, Sistema provides support to socially vulnerable groups, promotes projects in the sectors of the economy that are important to society, pursues socially significant charitable projects in the social, cultural, environmental and sci - ence fields, and seeks to support traditions of small peoples of Russia. Part of the Company’s income is regularly allocated for funding of the above categories of projects, including in cooperation with non-governmental organisations and associations in the regions where we operate.