December 12 National Competition of cases on corporate social responsibility(CSR) determined the favorites. The competition has been held for the 4th year in a row by the Center for the Development of Corporate Social Responsibility with the support of the general partner - Ernst & Young, the mobile partner MTS Ukraine, the international partner - the Ukraine-USA Foundation and the law firm Alekseev, Boyarchukov and Partners ". The Rinat Akhmetov Foundation for Development of Ukraine became a partner in the nomination "The Best Contribution to the Development of Ukraine".
About the Competition
The State Business Case Contest on Corporate Social Responsibility is a unique Ukrainian initiative that has been popularizing the best CSR practices since 2009. During this period, more than 140 cases of companies were collected, which were included in the publications "CSR Practices in Ukraine" (2009, 2010, 2011) and the first comprehensive book on social responsibility "CSR: Models and Management Practices".
“It's nice that the number of new participants and the quality of the cases themselves are growing year by year. I expect that such a positive trend will continue in the future,” says Viktor Kovalenko, Head of the sustainable development Ernst & Young.
“Competition cases on corporate social responsibility is one of the platforms where companies that work on global infrastructure social projects exchange experience, thoughts and have the opportunity to start fruitful cooperation, which allows you to bring projects to an excellent new level thanks to the pooling of efforts and resources. This practice brings real results. Evidence, for example, is the all-Ukrainian project "Mobile Medicine", which has been implemented by MTS since 2009 in order to develop such an innovative direction for Ukraine as telemedicine. Now, this project is integrated into the social activities of DTEK, aimed at developing and supporting communities,” said Victoria Ruban, head of the public relations department at MTS Ukraine.
Favorites
Among the 38 cases presented, an international expert jury from 7 countries determined the favorites:
1st place – case of Prykarpattyaoblenergo “Stable power supply and biodiversity protection – conflict of interests. Can there be a solution?
II place - DTEK's case "Development and support of communities".
III place – Kyivstar case “Safety of kids on the Internet”.
“All 38 companies that submitted their cases to the competition are worthy of the highest appreciation - they not only implement CSR practices, but are also ready to share their experience with others. This is the path of the favorites. This year we were particularly pleased with the emergence of new participants, including those from the non-corporate sector, as well as the introduction of new nominations. After all, each new name in the list of companies involved in CSR is a small victory on the way to the sustainable development of society,” says Natalya Telenkova, coordinator of the CSR committee at Ernst & Young.
Organizational management - SCM case study "Dialogue with stakeholders - an effective tool for the successful solution of economic, social and environmental problems."
Human rights - the case of the holding of feelings FEST "Little people".
Labor affairs - case of Turboatom "One for all and all for one".
Community development - the case of Myronivsky Khleboprodukt "MHP invests in local communities, the example of the city of Ladyzhyn", and the case of Nycomed: a Takeda Company "Let's stop a heart attack together".
Business with consumers - case Foxtrot;
Environment - case Tetra Pak Ukraine "Educational program "Package, surrender."
This year, cases for the Competition were submitted not only by companies, but also by 2 municipalities - Cherkasy and Ukrainka. As a result, for the best practice in recruiting stakeholders, the Diploma-recognition was received by the city of Ukrainka for the case “Ukrainian - a city of sustainable development”.
Nomination "The best contribution to the development of Ukraine"
To evaluate practices in the Ukrainian context and identify projects of those companies that make a significant contribution to the development of our country by introducing social and environmental projects and providing jobs, the nomination "The Best Contribution to the Development of Ukraine" was established with the support of the R. Akhmetov Foundation "Development of Ukraine". The favorites of the public presentation of Ukraine developed the aspects of the assessment, and evaluated the exposed cases. The top six included cases from companies: 3M on road safety, Business School "Kids-Coins" for a case in partnership with Amway and Erste Bank on money education for kids, cases from Asters, Kyivstar, DTEK and SCM.
The best practice-contribution to the development of the community was the case of the Kyivstar company “Safety of kids on the Internet”.
Kateryna Zasukha, Director of the External Relations Department of the Rinat Akhmetov Foundation for Development of Ukraine, noted: “For more than 7 years, the Foundation has been implementing programs aimed at systematically solving acute social problems. We are convinced that a specific systematic approach introduced in business CSR will contribute to the sustainable development of our country. That is why this year we have become partners in the respective nomination.”
Legal Sector Award
YURLIGA of the LIGA: ZAKON company and the CSR Development Center, with the support of the law firm Alekseev, Boyarchukov and Partners, organized for market participants legal services in Ukraine a special award.
Sergey Alekseev, partner at Alekseev, Boyarchukov & Partners, confirmed: “Me and Sergey Boyarchukov are very pleased to be the general partners of this competition, because we are socially responsible legal business should not go unnoticed. This is an excellent competition and a good initiative! We are ready to support it in every possible way and take an active role in its upcoming implementation!
The award included three categories:
Pro Bono Award 2012 - an award for the most successful project of a law firm in the field of CSR. The Asters case won.
A more transparent law firm website as a result of website evaluation law firms on the subject of activities in the field of CSR was the website of the "Legal Alliance".
More responsible favorites of the legal sector were also noted:
Lena Sotnik, Partner at Solodko & Partners.
Sergey Alekseev, Partner at Alekseev, Boyarchukov & Partners Law Firm.
Armen Khachaturyan, Senior Partner at Asters Law Firm.
A responsible attitude to future work can be predicted on the basis of past experience. To do this, at the interview, a question is asked about past shortcomings and professional mistakes of the candidate.
Assessing Responsibility - Determining Locus of Control
I propose, on the basis of a specific situation, to disassemble the definition of loci. Imagine that we are conducting an interview for the position of "HR Manager" and asking the candidate the right question:
— Please give an example from your working practice, when the result obtained did not match the pre-defined achievement criteria.
A candidate who is set on giving out so-called "socially desirable" answers may feel a little tense at such a question. Help him:
- After all, it certainly happened at least once: the management set a task for you, and the result was not prepared by the deadline. Or the plan was not fulfilled one hundred percent.
If the candidate cannot remember:
“Well, look, only the one who does nothing is not mistaken. Surely in your practice there were cases of failure. Maybe when you just started new position and haven't gotten around to it yet.
And here the candidate should be let go a little: after all, you can’t admit that you are doing nothing. And making mistakes in a new place is really not shameful. And he tells an example of failure:
- When I worked as a training manager in one organization, I was given the task of conducting a training program for personnel reservists for higher positions. The list of personnel reserve - 320 people. All of them were to attend leadership development trainings and from there an assessment of responsibility was to be built. The schedule of events was scheduled six months in advance. Each person had to take part in three or four trainings with a frequency of once a month. Then I had to evaluate the effectiveness of the training and exclude from the list of the reserve "losers" and truants.
So far, the candidate has not even approached the description of failure, only told the preamble. Here the assessment of responsibility is useless.
- My problem was that exactly three months after the start of classes, that is, in the middle of the training cycle, I summed up the intermediate results of the work and saw that the occupancy of the training groups was 2/3 of the planned one. The assessment of responsibility, respectively, was lower than expected.
And here is the description of the situation of failure: the intermediate result is slightly more than 60% of the required indicators.
So what were the reasons for this failure? we ask the candidate.
He replies that we are exploring the loci of control and we need a qualitative assessment of responsibility. The correct answer is written at the end of this article. But try to cope on your own.
— The company was so huge (over 6,000 employees in 12 branches) that intra-organizational communications were often “clogged”. In this connection, personnel officers in the field could not notify employees on the dates of training in time. Plus, this organization has never held such a educational projects, and employees did not really understand what it all meant and why it was being done, so they often treated training irresponsibly. And I did not think in advance about holding a preliminary informational presentation for all participants in the study. In addition, he did not call the participants on the eve of the trainings. But I sent them the charts three months ago, they could well have forgotten. Moreover, the leaders of the reservists did not always let their subordinates go for training, citing the fact that there was no one to work. And the order that would oblige them to give employees the opportunity to take part in the training was not prepared.
How many loci were counted? What are they - external or internal? What is the assessment of responsibility? Are you hiring a candidate?
You can, of course, take. He is not hopeless. But the manager will have to control such an employee more often, developing his responsibility (since the assessment of responsibility was not at the highest level). If he is not given due attention, then the next time after an independent analysis, the employee will correct only 2 points out of 10: he will make a presentation and call the training participants. That is, it will increase its own efficiency by 20%. And he will wait for someone to issue an order, instead of preparing a draft order himself. It will wait until candidates have less work, and managers will easily let them go for training, instead of finding additional levers of influence, the same order, or optimizing the training schedule for the needs of production. He will wait for the personnel officers to begin to treat their duties professionally, instead of controlling them themselves. And with the size of the company and “clogged” communications, it’s not at all clear what to do.
Responsibility assessment - correct answers:
- The company is huge - external.
- Communications "clogged" - external.
- Personnel officers could not notify - external.
- Such projects have never been carried out - external.
- The staff did not understand and were treated irresponsibly - external.
- I did not think in advance about the presentation - internal.
- I did not call - internal.
- People forgot to come - outside.
- The leaders of the reservists did not let go - external.
- The order was not prepared - external.
Experience of small and medium business by example Russian manufacturer Skincare
Charity and social projects- the prerogative of not only large companies with a large staff and a significant budget. Small and medium business can find its format in helping. First of all, cooperating with charitable organizations. As for their own projects, on the one hand, it is difficult for companies of this size to launch and maintain large-scale actions - this requires labor and financial resources. On the other hand, it is possible to find such forms of assistance that will bypass the problem of limited resources. And sometimes it turns out very interesting projects. The experience of the Skincare company is just from this series.
The main activity of the Skincare company is related to the production of protective equipment for workers of industrial enterprises, and in itself is socially significant. The company produces six brands of protective equipment, producing them in Russia and Europe. As the company grew, issues of social responsibility became more and more relevant. At the transitional stage from small to medium-sized businesses, the creation of a charity program and the building of a corporate culture began. All this was in line with the mission of the company: “We help people enjoy life, raise children, build the future, providing protection from harmful factors production and environment striving to turn our work into art." Currently CJSC Skincare is implementing an extensive program to help children and veterans.
Yelena Sheptak, public relations specialist at CJSC Skincare, and Andreeva Yana, event manager at CJSC Skincare, talk about the stages of development of projects in the field of CSR, the results achieved and prospects.
How did the company start participating in social responsibility programs?
Elena Sheptak: The starting point can be called 2011, when we took part in our first charity event. Before that, there were doubts whether the company and the employees themselves were ready for such, as it seemed, responsible business as charity. There was also no clear idea in what form to provide assistance, in what volumes. But there was an understanding that charity issues are important, and helping children was a priority. Therefore, the search for its format continued.
The action "Give a smile to children" seemed suitable in order to "try" yourself in the charitable field. It was organized by students of the Russian Academy of Justice together with the Prefecture of the South-West Administrative District and students of the Moscow Institute of Television and Radio Broadcasting "Ostankino". All proceeds were directed to the operation of children with congenital cleft lip and palate.
A mailing list was held to announce the action within the company. There were about 60 people in the state at that time. Funds were received not only from CJSC Skincare, but also from employees. Together they managed to raise money for an operation for one child. In total, the campaign raised money for the operations of nine children. It turns out that the company contributed 1/9 of the total amount. We felt that we could make a real contribution to the cause of relief. The company also became a sponsor of the action, donating its products to the organizers, attended the ceremony as a participant and plunged into the positive atmosphere of the charity event.
The first experience was recognized as more than successful, there was a desire to participate in such projects on a regular basis, and to make the assistance itself systemic. The next step was the search for a sponsored orphanage and a charitable foundation for helping children. The proposal to help the orphanage came from initiative employees. True, the management had concerns - whether they would be able to pay enough attention to the children, whether they would be ready to visit sponsored children regularly. Additional surveys within the company made it possible to dispel doubts - enough colleagues agreed to visit the children so that the company agreed to support the project. Looking ahead, we can say that he justified himself by 100%. The trips have become a valuable experience for employees in providing personal assistance, a source of positive emotions for both parties and good experience targeted assistance from the company.
The orphanage was carefully chosen. When choosing, they were aimed, firstly, at orphanages that did not have permanent chefs. Secondly, the opportunity to personally come to the children, communicate, interact.
As a result, an institution in Novoperedelkino became our sponsored orphanage. A group of initiative employees began to regularly visit the children. We did not limit ourselves to material contributions, we tried to give the children maximum live communication. Conducted contests and competitions, engaged in the development of school subjects in game form, drew with crayons on the pavement, ran at fun races with the children. We did not do a show, we tried to communicate with them on an equal footing. For which they received words of gratitude from the leadership of the orphanage and love from the pupils. Each trip gave both us and the children a charge of positive emotions. Of course, we are not professional psychologists and educators. But some of the employees already had their own children, had experience of communicating with them. Someone himself sociable by nature and quickly included in the process. Every time we visited children, we tried to come up with something new, to raise the bar of requirements as we gained experience. The programs became more varied and interesting.
Choosing among charitable foundations, we settled on the Life Line Foundation. This organization aims to reduce child mortality rates from serious diseases and conducts a large-scale campaign to raise funds for the treatment of children. It is valuable that the fund does not concentrate on sad moments. It raises funds in the most positive way, seeks, first of all, to arouse people's interest in charity, to arouse the desire to become a participant in a particular charity project. The fund has a lot of actions and events. Life Line really develops a culture of charity. In addition, the fund's reporting is transparent, its reputation is reliable, targeted assistance is possible with the choice of an addressee, and the geography of assistance is the whole of Russia. We, a small company at that time, cooperating with all Russian regions, were looking for such an organization.
The Foundation is an example of creativity in the charitable field. He initiates a lot of unusual events for Moscow: bright, interesting, touching, dynamic. Their diversity and attractiveness resulted in the fact that we not only began to transfer funds for the treatment of children, but also joined the fund's actions, such as the 5275 charity Run and the action "Someone's life is no longer a trifle", by participating in them permanent. This was also in line with our focus on assistance projects, where employees themselves could make their personal contribution, not limited to financial assistance from the company.
By that time, the company had grown to 100 people, and the marketing department supervised and coordinated charitable projects.
In addition to planned activities, we continued to participate in situational assistance campaigns. So, we collected money and bought essential items, sent our products to the victims of the floods in Krymsk and the Far East. Our cargo for Far East left in two trucks to the aid depot and was sent by separate aircraft.
Since the spring of 2013, we have introduced the practice of collecting unnecessary things from employees and donating it to funds for family assistance programs and social service centers, including organizing master classes in sewing toys from old things. We donated things to the Creation Foundation and to the Center social services Troparevo-Nikulino. In the latter, master classes were held for veterans and children.
The culmination of our development social programs we can name the launch of the RIZA® charity program at the end of 2012. He brought together separate areas of assistance and provided them with a more significant financial basis. By that time, the company was already classified as a medium-sized business.
What is the essence of the RIZA® social program?
E. Sh.: As a basis for the socially oriented RIZA® program, we took the European best practice - to transfer part of the proceeds from the sale of a particular brand to charitable purposes. By the time it was launched, we had accumulated enough practical experience assistance programs and were not afraid to launch such a serious project.
RIZA® is the name of our brand of skin protection products, which we produce in Russia. This is a completely Russian development - from the recipe developed in the company's laboratory to production, which is carried out near Moscow. Creams and pastes of this brand are the most popular among our partners and on the market as a whole. At the end of 2012, we radically modernized the line: we improved the recipes and changed the packaging design. Together with the release of the updated line, a socially oriented program was launched, the essence of which was to allocate 1% of the proceeds from the sale of RIZA® brand products to charity. The increase in the cost of products due to the introduction of the program was not done. This initiative is the only one of its kind in the labor protection market, including the European one. In Europe, similar programs are presented in other industries.
The peculiarity of our project is that it actively involves the B2B sector, including those enterprises that do not carry out any projects related to CSR. Engagement occurs automatically: when buying RIZA® brand products industrial enterprises become participants in the program, since deductions to charity come from the proceeds from the products they purchased. By doing this, we achieve two goals: first, we add value to the use of protective equipment that preserves the health of the skin of workers through a charitable component. Secondly, we give the company the opportunity to combine assistance to its workers with charity, without requiring additional efforts from it other than buying the right products. For all participants, an annual report is provided on what kind of targeted assistance was provided under the program.
What charities are you currently working with?
E. Sh.: The Life Line Foundation has organically become a partner of the RIZA® charity program. Transfers to him are now made from the proceeds from the sale of the renewed trademark.
With the launch of the program, we expanded the scope of assistance and opened a new direction - assistance to veterans. As part of it, we began cooperation with Russian Foundation Veterans. The organization was chosen according to the same criteria as the fund for helping children: transparency of reporting, the possibility of targeted assistance, direct participation in the selection of candidates for assistance, a wide geography of cooperation, reputation in the charity market.
Yana Andreeva: A new experience of cooperation is assistance to regional funds of strategic partners. The first in this regard was the Road to Home fund, founded by the company's partner OAO Severstal. It implements an extensive program of assistance to children, adolescents and foster parents aimed at reducing orphanhood in the Vologda region. The fund has a lot of projects, as well as wards. This form of cooperation gives us the opportunity to develop relations with a strategic partner at a new level, interacting within the framework of joint assistance programs. And a very valuable experience of working with foster children and families during the foundation's regional events in which we take part.
It is already possible to evaluate the results from the launch of the charity program. At the end of last year, the transition to the supply of the new RIZA® among partners was completed. And since the beginning of this year, we have transferred 1 million rubles under the program. The operations of 5 children were paid for, the treatment of 3 veterans, participation in the 5275 charity run, the proceeds of which are also directed to the treatment of children, and the programs to help foster children of the Road to Home regional fund were financed.
What is the role of employees in the implementation of your projects, what results have you achieved? You mentioned that you are trying to involve them as much as possible.
E. Sh.: Betting on projects with the maximum involvement of employees and partners is really our credo. A group of active and sociable people go to orphanages, sports-oriented employees participate in the races of the Life Line Foundation. During the year, everyone can donate change under the Life Lines campaign, transfer things and donate money to other assistance campaigns in which the company takes part. We do not keep track of whether all employees participate in certain activities. And this is not necessary, because the willingness to help is a personal decision for everyone. It is important that employees can find the form of assistance that suits them. And the results show that there are few people who are indifferent to the forms of assistance chosen by the company. If they exist at all.
Ya. A.: Active work on the development of a culture of charity within the company also helps. The marketing department strives to carry it with a "smile" - it announces promotions in a positive way, comes up with interesting forms of involvement in participation. For example, our innovation is intra-corporate auctions in favor of the campaign “Someone's life is no longer a trifle!”. This increases fundraising.
How does Skincare plan to develop social responsibility programs in the future?
Ya. A.: The launch of the RIZA® charity program can be considered a transitional moment from participating in other people's assistance programs to creating our own. We cannot call the RIZA® program completely our own project, since assistance to the final recipients is provided thanks to funds. But the source of financing is our own brand, and partners are our customers. Therefore, the program cannot be considered as a third-party assistance campaign to which we have joined. This is really the first serious step towards creating your own project.
Currently, the company has singled out charity as a separate area, emphasizing its priority for itself. My responsibilities include only assistance projects, other areas of PR are handled by other specialists of the department. And in the near future the company plans to develop its own programs. We have accumulated enough experience and information to launch something of our own.
Among the already approved ideas is the arrangement of the landscape on the site around the orphanage. For this event, we plan to attract partners, which again corresponds to the concept of maximum involvement. The company is moving to a more complex level of helping children. This holding curricula, integration with the general learning process. For this purpose, contacts are being established with government bodies at the ministry level. The tasks that we now set ourselves are definitely more difficult than before. But our experience has become wider, and resources - more.
Environmental issues, to which the company has always paid much attention in its activities, set the tone for charity. In particular, the training we are considering is related to the issues of ecology, environmental protection and human protection. In addition to the classic lessons in the classroom, we want to conduct it in an interactive form: eco-quests, excursions to own production, interactive classes in the company's research laboratory.
About what cooperation gives a charitable organization with CJSC Skincare, says Yulia Brilliantova, administrator corporate programs Charitable Foundation "Line of Life"
Third year charitable foundation Liniya Zhizni cooperates with CJSC Skincare. We are glad that we have such a reliable and loyal partner. The company is a member of the Plus One Life corporate club, which means that it saves at least one child a year. But in fact, the number of transactions paid by the company has moved into the second ten. In addition, almost all employees of the company are involved in the process of charity and take an active personal, and often family part in the events held by the foundation: Run 5275, “Someone’s life is no longer a trifle!”, “1000 hearts in the Grove of Life” and many others.
CURRENT CONTROL
Current control includes:
I. Completion of a written assignment (abstract);
II. Interactive activity (case solution).
I. Completion of a written task (abstract).
The topic number for the abstract is determined by the table:
|
First letter student's last name |
Abstract topic number |
Essay topics
1. The essence of the development of corporate social responsibility.
2. Stages of development of corporate social responsibility.
3. Formation of corporate social responsibility: stages and key elements.
4. Social programs and projects in the organization.
5. Types of social programs of organizations (on the example of a company...).
6. Management of corporate social programs.
7. Development of the competence of managers in the field of formation and development of corporate social responsibility.
8. Technologies of personnel management in the context of increasing corporate social responsibility.
9. Types of organizational cultures.
10. Methods of organizational culture management.
11. Optimizing the impact of internal and external environment on the formation of the image of the organization.
12. Internal and external image of the organization as the basis of corporate social responsibility.
13. Image technologies in the formation of corporate social responsibility.
14. Theoretical foundations of the study of social responsibility in the system corporate governance.
15. Practical application of the results of the study of social responsibility in the corporate governance system.
16. Relations of the company with stakeholders in the corporate governance system.
17. Analysis of relationships with stakeholders as a form of implementation of corporate social responsibility.
18. Distribution of stakeholders by types in accordance with Savage's classification.
19. Distribution of stakeholders depending on the presence of the main features according to Mitchell.
20. Basic methods for determining the level of corporate social responsibility.
21. Development and application of basic methods for determining the level of corporate social responsibility.
22. Development of a methodology for the analysis of corporate social responsibility using the concept of stakeholders.
23. Research of corporate social responsibility (on the example of the company...).
24. Development of mechanisms to increase corporate social responsibility by improving the relationship of companies with stakeholders.
25. Development of main directions state participation in improving corporate social responsibility.
26. The mechanism of increasing corporate social responsibility as a factor in the effectiveness of corporate governance.
27. Realization of social responsibility of business in the system of corporate relations.
28. Key aspects of corporate governance.
29. Analysis of the development of social responsibility of business in Russia.
30. Corporate ethics in the formation of corporate social responsibility.
32. Technologies of reputational control in increasing corporate social responsibility.
The main requirements for writing an essay are that the essay must demonstrate the ability of students to apply the received theoretical and practical knowledge in presenting the chosen topic. Writing an essay in a discussion format is welcome. Work must be submitted in hard copy, 5-6 pages.
The topic number for the essay is determined by the table:
|
First letter student's last name |
Essay topic number |
1) Who should be responsible for solving social problems?
2) social role enterprises in Russia.
3) The role of the state in the implementation of companies' activities in the field of CSR.
4) What needs to be done Russian company to become socially responsible?
5) Models of participation of city-forming (mining) enterprises in solving social problems of the local community.
6) Models of participation of companies producing goods and services for the population (trading, service companies) in solving social problems.
7) Models of participation of financial and consulting companies in solving social problems.
8) How to manage a portfolio of social projects?
9) Who should be responsible for CSR in the company structure?
10) Overview of the most common difficulties in the implementation of corporate social programs.
11) Social responsibility as a component of corporate culture.
12) Is there a conflict between economic benefit and social benefit in the implementation of corporate social programs?
13) Legislation regulating charitable activities in Russia.
15) The effectiveness of social projects of companies.
16) PR of charitable business projects.
17) Criteria and indicators for assessing corporate social responsibility of companies.
18) Overview of the Russian market of consulting and audit services in the field of corporate social responsibility.
19) The role of CSR in the process of attracting financial resources.
20) GRI guidelines and its application in Russia.
21) Is a social report a requirement of the Russian market or a necessity dictated by international competition?
22) To what extent international standards CSR applicable in Russia?
23) Examples of famous brands applying the concept of social responsibility.
24) Similarities and differences of CSR in Russia and in foreign countries.
25) Ethics of formation of corporate social responsibility.
26) Relationship "Company" - "Stakeholders" within the framework of the concept of social responsibility.
27) The effectiveness of the application of CSR codes in Russia and in foreign countries.
28) Company reputation and corporate social responsibility.
II. Interactive activity (case solution).
Case #1: Idea from IKEA: look for a chance in every problem.
Ingvar Kamprad, born in small town Elmhult, who grew up in a harsh environment, showed the world that ideas and companies can grow even on stony ground. Here, where the glacier sets the rules, and began history of IKEA, a company that has chosen its own path.
Many obstacles awaited her on this path, but the northern climate taught Kamprad to endure the hardships of nature and survive in a tough struggle. Difficulties hardened IKEA, becoming for her an inexhaustible source of new opportunities.
Ingvar considers problems to be the driving force behind his business and unwittingly becomes wary when the existence of IKEA seems too cloudless to him. Competition and struggle have always propelled him forward.
And back in 1948, it was competition that prompted the future founder of the furniture empire to start advertising furniture in his catalog. Prior to that, he had only sold small items: postcards, seeds, pens, wallets, frames, watches, and jewelry. In an effort to outdo an opponent who, like him, traded from catalogs, Kamprad accidentally stumbled upon an idea that determined his whole life.
Soon competitive fight went into a price war. Companies dumped one after another, along with prices, quality also decreased. This continued until Kamprad was inundated with numerous complaints from customers.
“It was then that I realized,” Ingvar says, “that quality also matters. Realizing this made me draw conclusions and go the other way.”
The main problem with buying from catalogs was that customers could not feel the product before buying - the credibility of advertising brochures disappeared along with sales. Customer complaints became the impetus for the development of IKEA and the appearance in 1953 of a furniture exhibition where people could come to see the goods with their own eyes.
Suddenly, IKEA became the first company in the world to combine mail order with live demonstration. The unique format brought success and funds to open an "incredible" store in Älmhult, which offered customers another innovation - free coffee and rolls. Later, this invention turned into a chain of popular restaurants. IKEA believes that good business is not done on an empty stomach.
IKEA's innovative solutions and low prices have become a serious threat to furniture manufacturers and competitors - they rushed to the offensive. Some demanded that the company be banned and the exhibition closed, others boycotted the company, while Kamprad was banned from attending furniture fairs.
This plunged him into despair, but did not make him give up - Ingvar began to look for workarounds. He had to open several firms in order to fulfill the role of seller and buyer at the same time.
The same suppliers who continued to work with IKEA had to use fictitious addresses and deliver goods at night. But by the end of the 1950s, their capacity was no longer enough to meet the needs of the company.
The search for new partners has become a new round in the development of IKEA. Remembering the events of these years, Kamprad encourages his employees to treat problems as new opportunities:
"Problems offer amazing opportunities," he says. When we weren't allowed to buy the same furniture that was made for others, we began to come up with our own design, and we had our own style. When we lost suppliers in our country, the whole world opened up before us. .
Soon, the growing flow of orders marked another problem: during transportation, most of the furniture fell into disrepair - legs and other parts broke. Then the advantage of collapsible furniture became obvious: the safety of furniture increased, and the cost of transportation decreased.
This is how flat-pack packaging appeared in IKEA stores, which made it possible to reduce prices for customers and at the same time shift the delivery and assembly of furniture to them.
Interestingly, IKEA was not the first to come up with the idea of selling collapsible furniture. In Stockholm, there was already a furniture company NK that traded in a similar way, but it was IKEA that made this idea commercial.
Indefatigability in the search for new solutions and focus on his customers allowed Kamprad to get enough money to open the IKEA Kungens Kurva store in 1965 in the suburbs of Stockholm.
After 5 years, a serious fire broke out in the store, which became not only a test for the company, but also a kind of cleansing fire. After him, IKEA decided to update its sales strategy by increasing the number of cash registers at the exit by reducing order sales and introducing a self-service system.
Opened in 1971, the modernized IKEA Kungens Kurva store became a turning point in the life of the company - the conquest of the world began with it.
In one of his studies Harvard Business School calls IKEA's strategy "soft enforcement" and says that the company, by turning ordinary shopping into an enjoyable pastime, subtly makes customers spend more money. I cannot agree with this. You can't force people to buy if they don't want to. The secret of IKEA's success is simple - they look at things through the eyes of the buyer.
Actively developing in international markets, IKEA continued to be an original Swedish company. And the main merit in this belongs to its creator. "We are a company with a single concept," Kamprad never tires of repeating. “If we stick to the concept, we will never die.”
There was a case in the history of the company when the British authorities advised IKEA to open small "themed" stores in the city instead of building huge suburban hangars. This was followed by an indignant response: "This will never happen! Everything under one roof is our sacred concept."
For IKEA, maintaining the spirit remained just as important as sticking to its vision. This is how the spiritual message of the IKEA Way company appeared, the main one in which are the 9 commandments of the furniture dealer, written by Ingvar Kamprad for his employees:
1. Product range is our main difference
It's easy to create beautiful and expensive things, but IKEA has a different approach: they strive to make beautiful and functional things that will be cheap so that as many people as possible can buy them. The main focus is on the range, which forms the "typical IKEA style", limiting and not diluting it. The pricing philosophy of the company is that in each group of goods there is an offer that will take the buyer's breath away.
2. The soul of IKEA is a living and real force
IKEA is built on passion, innovation and personal responsibility. "We must take care and encourage each other," Kamprad urges, "I feel sorry for those who do not want or cannot be with us." Ingvar is convinced that work should not be just a means of subsistence: "Without a passionate attitude towards work, a third human life", he says. Therefore, it is so important for IKEA that people who come to the company share its spiritual values.
3. Profit creates resources
In order to change to better life people, IKEA must have the resources. And these resources create profit. "We must offer the lowest possible prices combined with good quality writes Kamprad. If we set the price too high, we won't be able to keep the picture low. If we set too low price, we won't be able to create resources. Great problem!"
4. Achieve good results with limited means
Over the years, IKEA has proven that you can get good results with limited funds or resources. This is largely achieved by the project development strategy. A product is put into production only when a way has been found to make it available to the majority of buyers. "We cannot express our attitude to the project until we know its cost. A product without a price tag is fundamentally wrong! - Kamprad is sure. - Before choosing a solution, determine its cost. Only after that you can judge its value" .
5. Simplicity is a virtue
IKEA preaches simplicity and modesty in everything. This also applies organizational structure- it is almost flat, and the interactions between employees and partners, and the way of life (people from IKEA do not drive luxury cars and do not stay in expensive hotels). Complicated rules and bureaucracy paralyze the company. The more difficult the rules, the harder they are to follow. Kamprad always encourages his employees to use sound planning and common sense.
6. We choose our path
IKEA has always gone its own way, setting its own rules and destroying stereotypes. And this is her strength. "We sell umbrellas low when it rains, high when the sun is shining," Kamprad says, emphasizing the company's commitment to being different and experimenting. "Why" is the key word in the company. IKEA refuses to accept templates or put up with the impossibility of anything. This is what drives her forward and helps her succeed.
7. Focus is essential to our success
Rapid growth taught IKEA not to lose sight of the main thing. Understanding that it is impossible to do everything, everywhere and at the same time, concentrates the company's efforts on the right things. "We can't conquer all markets at once. We have to concentrate to get the maximum effect, often with only limited funds," Kamprad notes. This approach allows the company to be consistent in achieving its goals. As one of its board members put it, IKEA can't "rush down the autobahn at breakneck speed and look for places suitable for building new stores."
8. Taking responsibility is our privilege
At IKEA, they rely on people who take responsibility and make decisions. They are what companies need for development and progress. The absence of such people in the company is the reason for endless meetings and the dominance of bureaucracy. “Our initiative and ability to take responsibility are the determining factors,” notes Kamprad. “Only the one who sleeps does not make mistakes. You need to allow yourself to make mistakes. he looks ahead.
9. The main things are ahead of us - a great future!
A company that decides that it has achieved its goal becomes inert, loses its flair and loses its sense of the market. IKEA never rests on its laurels and is constantly working to improve reality by creating new business models. “Happiness is not in achieving a goal, but in striving for it. Standing at the origins: this is our wonderful destiny,” Kamprad is sure. The main condition for our progress is the question that we constantly ask ourselves: “What else can we do better tomorrow? "The main things are yet to come!"
Tasks
1) What is the history of the formation of the company Ikea?
2) Describe the organizational culture of this firm.
3) What are the features of Ikea's strategy?
4) What, in your opinion, are the consequences of the company's penetration into the Russian market for the domestic furniture industry?
5) Your assessment of the solution to the problem of succession in the management of the company, adopted by its owner.
Case number 2. Coca-Cola: brand and social responsibility.
Such a grandiose success of the Coca-Cola company could hardly have been predicted at first. After all, this is just a modest drink to quench your thirst. But now Coca-Cola is the most valuable brand in the world and the most extensive distribution network in the world.
The drink was invented in Atlanta back in 1886 by a pharmacist with the sonorous name John Stith Pemberton. The name "Coca-Cola" was coined by his accountant Frank Robinson. He also brought out the words “Coca-Cola” on the first label in beautiful calligraphic letters. By doing this, he made it easier for all future designers - the inscription is still the logo of the drink.
Further, the drink was patented as a drug "for any nervous disorders", and it began to be sold through a vending machine in the largest city pharmacy in Atlanta. They sold it on tap, as kvass is now.
The recipe for Coca-Cola is still kept secret, but its main ingredients are as follows: three parts coca leaves to one part tropical cola tree nuts (A popular myth now says that only two executives can have access to the drink formula, while each can only be able to access half of the formula).
Mr. Pemberton claimed that Coca-Cola could cure many diseases.
At first, an average of only 9 people bought the drink daily. Sales revenue for the first year was only $50. But gradually the popularity of Coca-Cola increased, and the profits from its sale too.
In 1888, the widow of John Pemberton sold the rights to Coke. And in 1892, businessman Asa Griggs Candler, who bought them, founded The Coca-Cola Company, which has been producing the drink to this day. It is to him that we owe this success.
The new soft drink was gaining more and more popularity. Many of those who first tried Coca-Cola in a store or restaurant also took it home. Soon, almost everyone considered it their duty to try the trendy drink that everyone around was drinking with such enthusiasm. One of the franchise sellers thought of selling it in bottles, and away we go. In 1902, the company gained $120,000 a year in sales, and Coca-Cola became the most famous drink in the United States.
However, in the late 1890s, public opinion turned against cocaine, and in 1903 a devastating article appeared in the New York Tribune, stating that “it was Coca-Cola that was to blame for the fact that blacks from the urban slums who had drunk on it began to attack whites. of people". After that, not fresh coca leaves were added to Coca-Cola, but already “squeezed out”, from which all cocaine was removed.
Despite this "loss", the popularity of the drink increased exponentially. And fifty years after the invention of Coca-Cola, Americans have become something of a national symbol. Since 1894, Coca-Cola has been sold in bottles, and since 1955 in cans.
Due to such popularity, the company was widely overgrown with imitators - in 1916, 153 lawsuits were filed against imitator brands, such as Fig Cola, Candy Cola, Cold Cola, Cay-Ola, etc.
The Coca-Cola Company then began an extensive sponsorship of the Olympic Games, thanks to which it gained general fame. An interesting fact is that the red clothes of Santa Claus were invented by the designer specifically for Coca-Cola advertising. Prior to this, the Christmas character was dressed in multi-colored clothes, but Coke officially assigned red and white to him.
A few facts about this wonderful drink. From 1915 to the present, 6 billion bottles of cola have been sold. Experts have calculated that if all Coca-Cola produced were to fill a pool 180 centimeters deep, its length would be 33 kilometers, and its width would reach almost 15 kilometers, 512 million people would be able to enter such a pool at the same time.
An inflated bottle is easier to hold in your hand than a straight and slippery one. Now designers have found a golden mean. The special expansion of the bottom contributes to its stability on the conveyor.
And another very interesting fact- About 8,000 glasses of the drink are drunk every second in the world. This is the most successful company in the world.
Tasks
1. Coca - Cola has been the official sponsor of the Olympic Movement for a long period of time. Is this, in your opinion, an example of the application of the concept of social responsibility? Justify your answer.
2. What social projects, in your opinion, can be considered by this company for present stage its development within the framework of the concept of social responsibility?
3. Suggest 5 areas of charity for this company as part of the concept of social responsibility.
INTERIM CONTROL
For students studying in the direction 080200.62 "Management" intermediate control in the discipline "Corporate social responsibility" is carried out in the form of a test in the form of a written test ( Test #1).
For students studying in the direction 080400.62 "Personnel Management" intermediate control in the discipline "Corporate Social Responsibility" is carried out:
1 semester - in the form of credit in the form of a written test (Test number 1);
2 semester - in the form of an exam in the form of a written test (Test number 2).
1st semester
TEST #1
in the discipline "Corporate social responsibility"
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Answer options |
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How is the concept of "corporation" interpreted in domestic practice? |
a) a set of persons united to achieve some goal; is a legal entity; b) a united group, a circle of people of one profession, one class; c) organizational form entrepreneurial activity, providing for shared ownership, legal status and concentration of management functions in the hands of the upper echelon of professional managers (managers) working for hire; d) answers 1, 2, 3 are correct; e) this concept absent in domestic practice. |
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b) " human capital»; c) "capital society"; d) " business reputation»; e) "authorized capital". |
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Depending on the goals pursued, corporations are divided into types: |
a) public and semi-public; b) entrepreneurial and non-entrepreneurial; c) American, English, German, Russian; d) only answers 1, 2 are correct; e) all answers are correct. |
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a) corporate relations; |
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a) consumers; b) employees; c) shareholders; d) suppliers; e) society as a whole. |
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e) all answers are correct. |
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What conditions are necessary for the effective implementation of corporate governance in our country? |
a) the development of the economy and the entrepreneurship mastered by the population; b) coexistence various forms property; c) a sufficient number of professional managers (managers); d) regulatory and economic preconditions for corporate success; e) the totality of all responses. |
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e) all answers are correct. |
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Indicate the correct definition of the consortium among the proposed options: |
a) joint-stock company, owning controlling stakes, managing or controlling the activities of other companies, enterprises in order to exercise control over their operations; b) association of enterprises producing homogeneous products in order to organize their collective sale through a single trading network; c) temporary association of corporations, banks and other organizations on the basis of a common agreement for the implementation of a capital-intensive project or joint placement of a loan; d) a large association of enterprises connected by common interests, contracts, capital, participation in joint activities; e) voluntary association of individuals and (or) legal entities for the purpose of mutual cooperation while maintaining the autonomy and independence of the members of the association. |
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What is the focus of an organization that follows a task-oriented corporate culture model? |
a) flexibility, agility, ability to cope with and adapt to new situations; b) the skill and potential of individual workers; c) growth of the organization; d) procedures and rules, clearly stated operational requirements; e) all answers are correct. |
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Which of the options is an example of the onset of corporate social responsibility? |
a) the business entity paid insufficient attention to the requirements of society; b) the business entity pays close attention to the needs of society; c) reproduction slows down labor resources in the territories that are the resource base for this type of business; d) there is a slowdown in the reproduction of labor resources in territories that are not a resource base for this type of business; e) all answers are correct. |
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b) Great Britain; c) Japan; d) Germany; e) all answers are correct |
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Social responsibility is: |
a) a rule; b) ethical principle; c) the law to be enforced; d) standard; e) all answers are correct. |
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What unites the concept of socially responsible business? |
a) certain expectations of society in relation to owners and management, production structures; b) voluntary contribution to the development of society in the social, economic and environmental spheres; c) the interaction of business, society and the state in general; d) theories of corporate altruism and corporate selfishness; e) all answers are correct. |
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c) charity; e) all answers are correct. |
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a) moral motives; b) increased consumer confidence; d) love for art; e) all answers are correct. |
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a) consumers; b) employees; c) society as a whole; d) clients; e) all answers are correct. |
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a) corporate fund; b) social investment; c) sponsorship; d) cash grants; |
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c) making a profit; e) all answers are correct. |
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d) individuals; e) all answers are correct. |
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a) charity; b) payment of pensions; c) social investment; e) salary. |
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e) all answers are correct. |
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b) "managerial" stage; c) "defensive" stage; d) “strategic” stage; e) stage “civil |
2nd semester
TEST #2
in the discipline "Corporate social responsibility"
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Answer options |
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The most important tasks in the corporate governance system are: |
a) management of corporate property and capital; b) innovation management; c) improvement of corporate policy. |
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From the proposed options, choose a more accurate synonym for the concept of "corporation"? |
a) "social responsibility"; b) "human capital"; c) "capital society"; d) "goodwill"; e) "authorized capital". |
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To the elements internal environment corporations include: |
a) the structure of the corporation, the management and employees of the corporation; b) corporate goals, corporate objectives, technology and communications; c) corporation shareholders, consumers, suppliers. |
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What is a corporate environment? |
a) corporate relations; b) local population and society as a whole; c) small businesses looking to collaborate with big companies fair trade relations and timely payments; d) the area of interaction of the corporation with those whom it can, by virtue of its capabilities, influence; e) an element of corporate culture. |
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Which of the participants in the corporate environment can demand fair remuneration from the corporation? |
a) consumers; b) employees; c) shareholders; d) suppliers; e) society as a whole. |
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How can a balance be achieved in relations between all participants in the corporate environment? |
a) by profit maximization; b) in the course of negotiations and establishment of agreements between the participants of the corporate environment; c) by developing and approving a specific list of documents that regulate the rules of relationships and establish a structure within the corporate environment; d) a well-thought-out personnel policy; e) all answers are correct. |
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A certain behavior of a corporation in a market environment that ensures a stable position, development and strengthening of market positions, the choice of optimal ways of technical and technological development is: |
a) the mission of the corporation; b) corporate strategy; c) the mission of the corporation. |
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What factor(s) determine(s) the structure of corporate governance in any particular country? |
a) the law of that country; b) regulations governing the rights and obligations of all parties involved; c) the actual structure of governance in the country; d) the charter of each joint-stock company; e) all answers are correct. |
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The main positive goals of merging enterprises into corporations that do not contradict the law are: |
a) increase in market share; b) preventing other firms from entering the market; c) cost savings compared to competitors; d) division of the commodity market; e) maintenance of purchase or sale prices in order to obtain monopoly high profits; f) strengthening competitive positions at the international level; g) optimization of the structure of income sources; h) restriction of competition and elimination of competitors. |
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Which of the proposed formulas most accurately defines corporate culture? |
a) competitive labor market - employment - decent wages; b) role orientation - following tasks - influencing people - gaining power; c) organizational culture = corporate culture; d) competitiveness - customer orientation - business success; e) shared values - mutually beneficial relationships and cooperation - good organizational behaviour. |
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The main most common reason for the emergence of transnational corporations for leading economic states is: |
a) the desire to obtain excess profits; b) being able to scale up production; c) internationalization of production and capital based on the development of productive forces. |
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What is the name of the theory that states that corporations are required to make a significant contribution to improving the quality of people's lives? |
a) the theory of corporate selfishness; b) the theory of corporate altruism; c) theory of responsible behaviour; d) the theory of social responsibility; e) the theory of charity. |
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The fundamental conditions for the successful functioning of the corporation are: |
a) economic development; b) low inflation; c) coexistence of different forms of ownership; d) absence of bureaucratic obstacles; e) entrepreneurship mastered by the population; f) a sufficient number of professional managers. |
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The concept of socially responsible business in the late 60s - early 70s of the XX century. started to take shape in: |
b) Great Britain; c) Japan; d) Germany; e) all answers are correct |
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The main functions of corporate management decisions are: |
a) guide; b) organizer; c) motivating; d) integrating; e) regulatory. |
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The rules of conduct developed by the governing bodies of the corporation, applicable only to members of the corporation and aimed at regulating relations within corporations, are: |
a) corporate regulations; b) treaty rules; c) individual norms. |
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The social responsibility of business is manifested by: |
a) paying taxes to the health insurance fund; b) financing by the corporation of measures for the protection of the environment; c) charity; d) socially oriented policy towards employees of the corporation; e) all answers are correct. |
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What is the internal motive of a charity company? |
a) moral motives; b) increased consumer confidence; d) love for art; e) all answers are correct. |
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The social responsibility of corporations is manifested in relation to: |
a) consumers; b) employees; c) society as a whole; d) clients; e) all answers are correct. |
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What is the name of the form of financial assistance allocated by the company for the implementation of long-term and joint partnership social programs aimed at improving the living standards of various sections of society? |
a) corporate fund; b) social investment; c) sponsorship; d) cash grants; e) socially significant marketing. |
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What is the purpose of commercial organization, carrying out social investments? |
a) an increase in national income; b) improving the level (quality) of life; c) making a profit; d) improving the level and quality of life by meeting material, spiritual and social needs; e) all answers are correct. |
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The subjects of social investments are: |
a) public authorities; b) government and municipal enterprises; c) Russian and foreign private commercial and non-profit organizations; d) natural persons; e) all answers are correct. |
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What manifestation of social responsibility was already practiced in the 19th century by German entrepreneurs brought up on Christian values? |
a) charity; b) payment of pensions; c) social investment; d) financing of environmental protection measures; e) salary. |
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What do organizations do in the strategic stage of organizational learning for corporate social responsibility? |
a) take into account socially significant issues in the main management processes; b) take into account the needs of society in their business development strategy; c) contribute to the widespread dissemination of social responsibility standards in the industry; d) have a policy of following rules as a cost of doing business; e) all answers are correct. |
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At what stage of organizational learning of corporate social responsibility do organizations deny their guilt for specific violations and do not admit their responsibility for them? Negative consequences? |
a) the “follow the rules” stage; b) "managerial" stage; c) "defensive" stage; d) “strategic” stage; e) stage “civilian. |
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