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Article of the Vice-Minister of Health and Social Development of the Republic of Kazakhstan D. Argandykov in "Business. Enbek. Socium" magazine

A strong economy and social welfare are essential factors in the growth of business in Kazakhstan. Therefore, business entities must be in search of business opportunities in accordance with the needs of society. In turn, the Government of the Republic of Kazakhstan is paying increasing attention to promoting the idea of corporate social responsibility and creation of favorable conditions for creating a culture of socially responsible behavior of entrepreneurs.

The President of the Republic of Kazakhstan N.A. Nazarbayev said in his speech "formation of social responsibility of the state and business is one of the basic conditions for sustainable development" and urged the business to approach with more responsibility to solving problems in the field of social and labour relations, develop and improve the collective bargaining mechanisms at the national forum on social responsibility of business on January 24, 2008 in Zhezkazgan. This applies to wages, health and safety, training and professional development. Business must take part in the construction of social facilities.

In addition the Head of State established the annual competition for corporate social responsibility "Paryz" aimed at development of corporate social responsibility, intensifying its involvement in solving the most pressing social problems and formation of a positive perception of socially responsible business in the public consciousness at the Forum.

This year, the Ministry of Health and Social Development of the Republic of Kazakhstan jointly with the National Chamber of Entrepreneurs of Kazakhstan, Ministry of Energy, Trade Union Federation of the Republic of Kazakhstan and local executive bodies is carrying it for the seventh time.

During this time the contest "Paryz" became a kind of indicator of the multifaceted interaction between government and business, contributing to preservation, strengthening and development of strong partnerships between them.

Equitable distribution of wealth is the most important area of harmonization of relations between employers and their employees.

In recent years, more and more business communities has been following this principle as the provision of decent work and creation of conditions for social accord and reducing social conflicts is the key to sustainable prosperity of the enterprise.

This is evidenced by the growing number of participants at the competition: more than 2.5 thousand of small, medium and large businesses.

This year 584 companies from all regions of the country have applied. For comparison, in 2013 there were 534 applications; in 2012 - 525; in 2011 - 509; in 2010 - 434; in 2009 - 321; in 2008 - 296 applications.

Leaders by the number of applications for participation in the competition "Paryz" are Kostanay Region, where 69 companies have expressed their desire to participate in the competition, East Kazakhstan Region is represented by 56 participants and 50 applicants from Pavlodar Region.

The greatest number of entities was presented in the nomination "Best socially responsible enterprise". 261companies filed an application to participate in this category. This category deals with the activities of applicants, implementing social programs aimed at supporting its own personnel, social inclusion of people with disabilities and improvement of welfare of society as a whole.

Participants in the new category "Best Enterprise in the field of occupational safety and health" were 98 enterprises. This category deals with the activities of applicants, creating working conditions that allow preserving the health of employees in the workplace.

114 companies have applied to the category "Best collective agreement". In this category collective agreements, significantly improving and strengthening labour and social rights of workers provided by the legislation of the Republic of Kazakhstan are considered.

There were 111 applications received to the nomination "For contribution to the environment". This category deals with the activities of applicants, notable for implementation of environmental (ecological) programs aimed at improving the environment.

The grand prize, the highest award of “Paryz” is given to an applicant with the best results of the work and implementation of principles of corporate social and environmental responsibility.

Previously the Corporation "Kazakhmys" (2008), which is one of the first in Kazakhstan, began to actively implement the values and principles of corporate social responsibility has won this award. The Corporation has focused on safety, stability, wages, additional medical and social insurance, social welfare of its employees and retirees. Graduates of local schools are provided with grants to study in the most prestigious universities. In all regions where the company "Kazakhmys" works, there are kindergartens listed on the balance sheet of the corporation.

"Kazakhmys" sponsors basketball, volleyball and hockey teams, sections on boxing and wrestling, sports school "Taekwondo" and the Football Academy.

JSC "Turgay Petroleum" (2009) created more than 350 jobs with 100% local content under the "installation of complex processing of gas". In 2009, the Company directed more than 126 million tenge on education and training of Kazakhstani specialists, technical and specialized education.

As part of corporate social responsibility in the form of sponsorship, the Company transferred to the account of corporate fund "Demeu" under the Governor's office of Kyzylorda Region 1.2 billion tenge from 2004 to 2009. Various social programs worth more than 600 million tenge were implemented to support the low-income groups of people, representatives of culture and sports.

"CNPC-Aktobemunaygaz" (2010) increases the volume and direction of granting tariff preferences for all categories of workers. So, in 2010, financial assistance for health improvement to leave was 158.8 million tenge, the total amount of social benefits per year per employee - 185.2 thousand tenge. Expenses of sponsorship and charity in the total amount of 815 million tenge were incurred.

LLP "Tengizchevroil" (2011) allocated 2.9 billion tenge on the program "Igilik", most of which focused on continuation of the project "Reconstruction of water supply system" in Kulsary, 116 million tenge to improve quality of health care, education and training, provided mortgage loans at a zero rate, and financial assistance in obtaining higher staff and / or postgraduate education)  in 2010.

JSC "KazTransOil" (2012) funded construction of social facilities totaling 4.1 billion tenge, including: a house in Usharal; construction of five multifunctional sports fields in Pavlodar; construction of 6 five-storey residential buildings in Uralsk; construction of 6 multi-functional sports fields in Karaganda, Kokshetau, Kostanay, Petropavlovsk, Semey and Ust-Kamenogorsk; construction of a kindergarten for 170 seats in Atasu settlement of the Karaganda Region, construction of 2 multipurpose sports fields in Usharal, construction of a multifunctional sports complex in Pavlodar. The Company provided sponsorship (charity) aid totaling 2.6 billion tenge.

JSC "Ust-Kamenogorsk Titanium Magnesium Plant" (2013). In 2013, there was a project of building a medical center in the village of New Sogra, including a clinic for 240 places in change for the people of Ust-Kamenogorsk and other areas in the amount of 1.1 billion tenge. Social expenses of the company amounted to 359 million tenge. About 40 million tenge was spent for employee training.

Contribution to development of social responsibility is also made by small businesses.

A number of projects are being implemented in rural areas - ranging from construction and support of rural infrastructure and social and cultural purpose. Small businesses - private entrepreneurs are engaged in sponsorship and charity, larger companies are implementing a comprehensive program of social development of the regions.

This year, the program of the competition "Paryz" has made a few changes, namely, a new nomination "The best enterprise in the field of occupational safety and health" was introduced. Nomination was created to encourage private entrepreneurs to create safe working conditions that preserve the health of workers in the workplace.

There were some adjustments that have made even more transparent process of selection of candidates on the basis of the regional tripartite commission on social partnership, as well as optimized application procedure.

The significance of the contest "Paryz" will only increase every year, because the potential of the business community and strengthening their role in social partnership is very high.


Wishing you continued success and active

promotion of socially responsible behavior

D. Argandykov

Changed on 12 December, 2014 - 16:26
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