The FINANCIAL — Corporate Social Responsibility does not mean one-handed charity campaigns for Alliance Group Holding (AGH). AGH considers CSR to be an integral part of its management. Its internal policy is based on respect for human rights, gender equality, environmental protection, transparency and responsibility. Restoration works on Jegeta Mountain in Western Georgia are the latest project which the company has been carrying out.
“The country’s economic and social development is not only the duty of the Government. The country’s progress and advancement is impossible without the support of the private sector. The CSR activities of companies does not only mean up-front, and in many cases disposable, charity campaigns. A more far-reaching and comprehensive approach is required. Conducting ethical business is a main factor of this responsibility. Fair consideration for customers, employees and partners; transparent relations with public authorities; returning share of our profit back to society and environment protection – these are the main responsibilities that every businessman should realize, regardless of their company’s size or experience,” Aieti Kukava, Executive Director at AGH, told The FINANCIAL.
Kukava did not reveal the sum that the company spends on its CSR activities. In his words, AGH does not belong to the same category of companies that consider charity and social responsibility to be simply a part of PR.
Q. A company’s attitude towards its employees determines the responsibility of the business towards its community. How often do you recruit and then train your workers after hiring them?
A. Initially, we rate our social responsibility by how we treat our employees. For this purpose, maintaining fair treatment of employees is the main mission of our HR strategy, as well as social responsibility and internal policy. To respect the dignity of our workers, their well-being and diversity is the main policy of the company. We are following international standards while hiring, promoting and creating working conditions. The company is focused on creating equal conditions for career growth and the development of employees.
As with every rapidly growing company we often need new staff. We are publishing our job applications on leading job search websites, as well as on the company’s website. Promoting interns is quite a common practice in our company. We are cooperating with leading universities and always hire interns in our different departments or subsidiaries.
Staff training and their professional development is one of the most significant aspects of our HR policy. The company contributes to the professional development of staff. We encourage their initiative of professional growth by financing their education.
Celebrating important events in our employees’ private lives is an integral part of our corporate culture. We support families with newborn children so as to improve the demographic condition in the country. Every employee that creates a family, or gives birth to a new child, receives financial incentives from the company, as well as a flexible work schedule.
Q. How do you encourage your workers?
A. We have introduced an internal promotion system. Each employee is rated according to their performance. The diversified structure of the company enables them to try themselves in various departments and subsidiaries. They can work in different companies with one specialization, or in different directions. We have implemented the Idea Box. Through it employees can express their viewpoints regarding the improvement and development of the company. Each month, we award the ‘employee of the month’. The best employee of the year is revealed at the end of the year. They receive various prizes and certificates. We have introduced the Employee Stock Ownership Plan (ESOP). As potential shareholders they are encouraged to care about the development of the company. Such an approach would first of all improve the company’s service. It is a prerequisite for improving customer-oriented service and the implementation of competing and innovative products.
Q. What is the company’s approach towards human resource management?
A. The company takes care of the welfare of its employees. We have a flexible work schedule. They can also work from home. AGH fully compensates employees during maternity leave. We also encourage paternity leave. The company is trying to encourage the promotion of female employees and their professional education. However, the promotion of any women remains in line with their professional achievements. Staff promotion and a bonus system are implemented in accordance with their correspondingly successful work and qualifications.
The staff recruitment policy is based on candidates’ professional experience, knowledge and personal qualities. The company also offers equal pay for the equal work of both sexes.
We are devoted to hiring women to decision-making positions. AGH has gender balance at all levels and actively supports women in balancing their careers and personal lives. As a result of this policy, we are proud that UNDP Georgia has awarded AGH with Grand Award for Gender Equality due to its best gender sensitive policies, actively promoting women on decision-making positions and having a gender balance at all levels, empowering women for career progression and promoting work-life balance.
Q. What is the company’s corporate management strategy? In your estimation, how do the corporate governance systems impact on the economy?
A. The company’s vision is to promote sustainable economic development in the country by providing financial resources (capital) and financial education and guidance to various groups. In this regard the company tries to balance its social and financial objectives. AGH invests only in those sectors and projects that are feasible for the long-term sustainable development of the country.
Therefore, it aims to create value not only for consumers, but also for the whole of society. To date, the projects implemented by the company have made a significant contribution to the development of the national economy and especially the financial sector. Since its inception, we have introduced pioneering and innovative services. We are always supporting the development of the Georgian economy, which has significantly contributed to the growth of business information, micro-finance, leasing, hydropower, investment, and banking and real estate sectors.
A special social committee operates in the company. It determined the social direction of the company and oversees the implemented projects. The committee decided which project should be implemented.
A strategy focused on long-term and sustainable results should prioritize more than just one-time promotions. For this purpose, investment in the education of the young generation, promotion of ethical business standards among them and environment protection, are directions that will bring more benefits for the country’s economic development.
Q. The UN clarifies that corporate social responsibility means business transparency, and participation in activities against money laundering and corruption. What is your approach in terms of safety and protection issues?
A. For this purpose, AGH has maintained a good governance principle since its inception. This includes carrying out all activities in line with national legislation and best international practice. The procedures are in accordance with the standards of international quality and approved by the supervisory board of the company. We aim to align our own interests with those of our clients. It is a guarantee of establishing reliable and long-term relations with customers. Integrity, responsibility, professionalism, transparency and teamwork are essential principles on which the company relies while dealing with various interested sides.
Open and constructive dialogue with the Government is one of the pillars of the company. Membership of various organizations allows us to share our ideas and suggestions regarding the improvement of the economic and investment climate of the country.
AGH has become a signatory of the Code of Conduct initiated by ILO, for prevention of human trafficking and forced labour.
Q. Please can you provide the list of all AGH’s CSR projects?
A. In 2010 we founded the charity fund Ardza. It carries out projects funded by AGH in three main directions: promoting business ethics among young entrepreneurs; the rehabilitation and preservation of Georgia cultural heritage; and environmental projects. We have implemented many projects, however I would like to distinguish only several of them:
AGH has been cooperating with Caucasus University for four years. We have been promoting the subject of ethical business practice among students. We annually reveal the three best students in the class and award them with monetary prizes, books and opportunities of internship in the company. To promote ethical business principles among young leaders we have sponsored the international event – the 74th International Session of the European Youth Parliament. It was held in Georgia for the first time. A total of 300 youths from 35 countries participated in it. We also sponsored one of the projects of School of Diversity, initiated by local NGO Iris Group. The project was targeting the establishment of pluralistic society in Georgia. It was focused on enhancing cooperation between different social groups residing in the country.
The company tries to promote the volunteer spirit of its employees. A voluntary programme operates in the company. We have over 30 philanthropists. They transfer money from their salaries to the fund account. Later, we donate the selected sum to orphanages and shelters. We have a charity box which employees often bring in various household items for. Once every month we sort the selected items and then proceed to donate them to orphanages and shelters.
In order to maintain our cultural heritage, we have financed the full rehabilitation of several churches and monasteries. We are also actively involved in environmental protection. We follow the Green Office principle. Only energy efficient equipment is used by the company. In order to promote energy efficiency we have introduced an eco-loan with lower interest rates compared to other products. Restoration works on Jegeta Mountain in Western Georgia are the latest project which we have been carrying out.
Q. What are the principles of the social responsibility policy of AGH?
A. AGH considers CSR to be an integral part of its management. We use it in our daily activities. Internal policy is based on respect for human rights, gender equality, environmental protection, transparency and responsibility. The ground of any of our business is based on care of the future generation, contribution to the development of economic and social development.
Q. What are the main challenges for your company and the whole economy in 2015?
A. Further diversification of the economy is important for the country. It will help to avoid dependence on particular countries in terms of export as well as FDI. Together with financial investments, attracting innovative technologies and know-how is crucial. In order to increase the availability of cheap financial resources, it is important to increasing the sovereign rate of the country. All the positive reforms that contributed to the simplicity of doing business in the country should continue. The tax code as well as officials’ attitude towards business should be improved. Improving service quality is also important. The country, government and private sector should pay more attention to the environment. Investment in energy-efficient equipment should be encouraged more.
As for the Alliance Group Holding, our goal is to continue attracting FDI. Our main target sector in 2015 will be renewable energy (mainly hydro power), one of the most strategic fields in the country. We also plan to introduce various innovative projects with the support of our international partners.
Finally, I would like to take this opportunity to wish your readers a successful and prosperous New Year 2015!
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