Business is a source of the wealth of the community

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Business is a source of the wealth of the
community
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private company- the 6th largest world
aluminium company- 2,7 bln revenue in
2005- vertically integrated company with the
full chain of bauxite - alumina aluminum
production- 20 production enterprises in
Russia and Ukraine, in 9 regions, in 15 towns-
60 000 employees.

What is SUAL Group

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SUAL Group enterprises
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To build a world class international resources
company, successfully developing opportunities
within the global metallurgical business.

SUALs mission



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Involving in social investment

Historically(USSR new Russian
Federation)Needs for building the new model of
social interaction community business -
governmentThere can be no effective business
without effective workersBusiness can and must
influence local communitiesCommercial success
of investment projects depends on goodwill of
local communities and governmentInvesting into
people means investing into development of
business ( A person is about more than just
production) Striving to maximize our positive
impacts
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Tasks that are facing society and businesses
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Mechanism for creating sustainability
Corporate social responsibility corporate
social policy social partnership
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Social-partnership tools of SUAL Group
Since 1997 Agreements on general principles of
co-operation between regional administrations
and SUAL Group2001 - Social Partnership
Agreement between municipal authorities and SUAL
Group 2003 - Establishment of a corporate
(integrated) pension system2004 - Memorandum
of Understanding between UN Development Program
and SUAL Group 2004 - Memorandum of
Understanding between USAID-Russia and SUAL Group
2006 - Memorandum of Understanding between
USAID-Ukraine and SUAL Group
-developing of public foundation
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Map of social partnership
Local authorities Regional government Non-commer
cial organizations
SUAL Group Business structures Partners
Social partnership
Bureau of Coordinating Council Working and
controlling body, which oversees realization of
decisions
COODINATING COUNCIL FOR SOCIAL PARTNERSHIP
Public Foundation Energy of Creation Executive
body
Development of potential of municipal units
administrations Creation of local community
foundation, private charity Exposure of problem
and elaboration of joint solutions Creation of
mechanisms and models. Development of NGOs Health
and environmental programs Development of small
and medium-sized business and supporting Developme
nt of citizen activity and volunteering Conference
s and educational programs
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Case study Complex socio-economic development
of the territories of presence of SUAL Group in
Russian Federation
Objectives

• Build capacities of municipal authorities
• Support small and medium-sized businesses
• Develop sustainable mechanisms of environmental
  protection
• Improve health care services
• Establish community foundations and use their
  capacities
• Establish and implement effective mechanisms of
  using charitable resources
• Develop nonprofit organizations and civic
  activity
• Involve citizens in decision-making at a local
  level
• Developing nonprofit organizations providing
  services in health care, education, and culture

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Program Strength and Success Factors

• Complex approach combines fiscal, economic,
  ecological, health, cultural, and educational
  development partnership model allows to attract
  best knowledge and experience
• Parity relationship with local authorities
  constructive dialogue and systematic planning
  that helps break dependency attitudes in local
  community and assure long-term advancement of
  local communities
• Effective constant open dialogue between all
  partners and joint monitoring of external
  factors influence on community development
• New role of NGOs NGO provides social services
• Effective communication experience exchange
  between program partners and general public
• Long-term orientation - 3-5 years strategic
  planning process that systemizes development
  efforts
• Customized approach - takes into account needs,
  opportunities, and limitations of specific
  location
• Creative and transforming role of business,
  active participation in social initiative

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Future opportunities

• Doubling the number of program cites in the next
  year , including Ukraine
• Balance of interests and contributions to
  thecommon cause, to formation of favorable
  environment
• Participation in event financing and
  distributionof responsibility
• Integrating efforts and abilities in the sphere
  ofsocial initiatives, including the use of new
  andmodern technologies
• Long-term goals and stage-by-stage
  achievementof these goals
• Constant measuring (evaluation) of the state
  ofcooperation and achieved results
• Collective evaluation of business positive
  influenceon community development

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Regional and local issues



Redistribution of authorityReduction of income
baseSlow reorganization to satisfy new
legislative and financial conditionsLarge number
of issues that must be resolved with input from
local budgetsLack of readiness to form municipal
income baseDifficulties with transferring and
effectively managing propertyShortage of trained
personnelLack of flexibilityReluctance to
change desire for businesses to solve social
issues
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What are the benefits of cooperation?


Development and implementation of different forms
of social partnershipConditions for sustainable
development of the regionsInvestment
attractiveness of the territories and improved
competitivenessImproved financial and economic
relations with a balance of interestsOptimal
solutions for social issuesPrivate initiatives
by individuals are stimulated while the state
provides minimal social guaranteesDifferent
mechanisms are used to reinvest profits into
communities and territories
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What do we want to achieve?
Effective production Effective cooperation with
regional and local governing authorities and the
community Sustainable development of the
regions Improved quality of life
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