Botagoz Torgaeva
Vice rector KBTU
MANAGEMENT OF CORPORATE SOCIAL RESPONSIBILITY
Abstract. Work is directed on studying of
the many-sided phenomenon which in the modern world gets into all aspects of
human activity. In research it is emphasized that management of social
development of the organization influences increase of welfare of society. The
great attention is given to theoretic-methodological and practical aspects of
social development of the companies, the best Kazakhstan and international
practice of implementation of the concept of strategic planning of the
organization is studied. Components of social development and social
partnership are considered, and also the mechanism of management is offered by
social development of the organization.
Key words:
social development, management,
collective agreement, social package, rating of social development
Introduction
Establishing
a context. The
president of the Republic of Kazakhstan N.A.Nazarbayev repeatedly spoke about
social modernization of society [1]. That fact testifies to importance of
social development also that in many foreign countries within the last 10 years
there were positions of vice-presidents for social development. According to
data of the World Economic Forum, 132 leading companies of the world consider
that social development is the most important component of success of the
company [2, page 6]. Research of the Harward University proved that the
organizations considering social interests of all parties, have indicators of
growth of sales volume of production four times more and indicators of growth
of employment in eight times more in comparison with the companies which are
focused only on interests of shareholders [3]. Research «About unethical
behavior of the company» university of northwest Louisiana shows that public
publicity of unethical behavior of corporations lowers the price of their
stocks [4].
In the conditions of implementation
of market reforms there are certain practical steps in the field which as a
whole can be characterized the following examples. Head of state Nursultan
Nazarbayev personally handed over the main figurine to the director general of
Tengizshevroil LLP T.Miller. The company allocated 2,9 million dollars for the
program which main part is directed on continuation of works on the project
«Reconstruction of system of water supply» in of Kulsara. In 2011 116 million
dollars are allocated for the TSHO social investment programs. They are
directed on improvement of quality of health care, education and training in
Atyrausky area. The president of RK N.A. Nazarbayev handed over two special
awards: «Industrial break» to made plant with shop of electrolysis and to the
leader of industrialization of JSC Kazahstan. The prime minister of RK Brown
Masimov handed over «Gold pairs» to representatives of small and medium
business on four nominations - Kazakhturkmunay LLP, Krendel LLP, association
«Abzal and the company», Kubley LLP. So, the best social projects of year of
the second degree caused a stir "Nort Kaspian Opereyting Kompanii",
Ek dos LLP. Meditsinsky center Evraziya LLP and Shymkentzhilstroy LLP the
concluded collective agreements took the second places. Social and responsible
enterprises, worthy silver "Paryz" of steel of JSC Transenergo,
Oral-dizayn-stroyservice LLP. For a contribution to ecology of the second place
are awarded Kazfosfat LLP and a country economy "Adil". The Minister
of Education and Science of RK Bakytzhan Zhumagulov and head Fonda of
development of business "Lady" Lyazzat Ibragimova handed over bronze
"Paryz" in the nomination «Best social project of year» of JSC KazMunaiGas
and lan-Zholdary LLP.
Reviewing
the literature. Assessment
of a current state of a solved problem and degree of its scientific and
practical readiness. Consideration of the social organization began with a
position of studying of its organizational culture in the second half of the XX
century.
Among the foreign researches which
have been specially devoted to the considered perspective, it is necessary to
allocate Beem F. fundamental works especially, Gobbs T., Gumpolovich L.,
Durkheim E., Cohen A., Titmusa R. M., Tepissa F., Hair dryer of, H.P Calm.
Works of such scientists, as
Betuganova A.A. are devoted to a problem of research of social development.,
Grinchenko V. G., Kleynera G. B., Oksinoida K.E., Mikhalev D. N., Nursidinov
A.F., Parsons T.R., Pishchulin N. P., Yudin V.P., Franchuk V. I., Chucha S.
Yu., Shekshnya S. V.
To problem of social partnership the
works lit: Belyaeva I.K., Vaynulina F.K., Volgin N. And, Gaynulina F.I.,
Genshita B. A., Kiselyov V. N., Malafeev N. A., Makrtchan G., Mikheyev V.A.,
Mitrokhin V. I., Motseli I.M., Mukitova N. A., Nursidinova A.F., Petrov of I.A,
Popanina of L.A, Roik V.A., Razumilova O. G., Smolkov V. G., Simina G. Yu.,
Silin A.A., Titov N. L., Feshchenko N. V., Fidulina A.A., Shlepdera P.,
Shtishelev A., Chistyakov N., Yakimets I.
Among the Kazakhstan scientists
separate aspects of development of social policy, social development, an
economic inequality of the population received lighting in Aytbekov A.B.
works., Adambekova A.A., Doskeeva G. Zh., Zhumagulova R. B., Esimova Sh.A.,
Kairzhana M. Z., Kereva A.M., Koshebayeva G. K., Kubayeva K.E., Kuatbayeva G.
K., Mirzhabayeva A.B., Turkebayeva E.A., Tulegenova M. S., Turysbekova Z.M.,
Sabdena O., Sagadiyev K.A., Sakhanova A.N., Spankulova L.S., Shedenova U.K.,
Shulembayeva F.A.
Establishing
a research. Despite so extensive list of the
authors who have devoted the works to aspects of social development, social
problems of modern enterprise firms remain unresolved, as confirms an urgency of
the real research. In particular, there are unexplored such questions, as
planning, rating indicators and standard and legal regulation of social
development. There is no accurate framework of definition of structure of a
social package, collective agreements. As a whole the capacity of the
Kazakhstan companies in the solution of social problems still is insufficiently
used, it is not difficult to notice a certain inconsistency in business
activity. Quite often indifferently there are questions of working conditions,
increase of professional level and wellbeing of workers, in activity of the
private companies there is no transparency - obligatory attribute of social
development of the companies. Meanwhile, not all heads of the Kazakhstan
companies understand increase of transparency of the business and use of modern
approaches to management as the tool allowing not only to reach short-term
objectives of receiving profit, but also to put a basis for long-term
development of the organization. In this regard, development of methodology of
management by social development of the organization became objective need and
makes new demands to formation and having appeared.
Stating
the purpose consists in improvement of theoretic-methodological approaches and
scientific and practical recommendations of the mechanism of management of
social development of the organizations in Kazakhstan.
Achievement of a goal assumes the solution of the following tasks:
1) This paper explores the question of how to study available in the domestic
and foreign theory and practice the content of concepts «social development of
the organizations» in various social and economic systems and to consider
classification of types and forms of social development on the basis of
studying of works of domestic and foreign authors.
2) The aim of the present study was to determine to allocate stages of management
with social development of the company for improvement of quality of life and
improvement of working conditions.
3) This study attempts to give a partial answer to
question posed in the introduction: to determine a role of state regulation by
social development of the organization as main regulator of the social
environment.
4) To study strategic management of
social development in the companies with a view of creation of the conceptual
and logic scheme of strategic planning and the code of social development.
5) The present work extends the use of the last model
by approaches to
rating indicators of social development.
6) To show structure of a social
package of the organizations directed on increases of welfare of citizens of
the Republic of Kazakhstan.
7) To analyzed dynamics of
collective agreements in the organizations and to develop offers according to
their qualitative and quantitative content.
Object an of research. An object of research is management of social development of the
organization.
Theoretical and methodological basis of research. As theoretical and methodological a basis of research provisions of
theories of management, the competition and the innovations, presented in
foreign and domestic classical and modern scientific literature, regulatory
legal acts and documents, program development of public authorities served. The
methodology of research is based on use of set of methods, such as a dialectic
method of knowledge of an object of research, the analysis and synthesis,
logic, methodical, methods of comparison and generalization, forecasting of
economic processes, a historical and logic method.
The working hypothesis consists in submission of theoretical provisions and justification of a
scientific position of the author according to which the main directions of
development of a control system in the conditions of dynamic development of
regulatory legal base taking into account occurring changes in global economy
are defined by social development, forms, methods and borders of state
regulation of activity for the purpose of achievement of an effective
expenditure of budgetary funds come to light. Information base of research. Materials
of the international scientific conferences, scientific magazines are used
legislative and regulations of the Republic of Kazakhstan, annual Messages of
the President N.A.Nazarbayev to the people of Kazakhstan.
Results and discussion
Novelty of research. Scientific novelty of work consists that in it for the first time
within theoretic-methodological approaches the mechanism of management by
social development of the organization, consisting in further improvement of
legislative regulation of the sociol relations, in creation of perspective
model and in creation of national standards of social development is offered.
Result 1 – Give new definition of concepts «social development of the
organization», considering specifics national, economic is made, ethical and
rules of law in the social sphere and author's classification of all types of
social development of the organizations is carried out.
The problem of the organization was
long since considered in a science, but thus the independent role of the organizing
beginning usually wasn't realized. One of the first complex organizational
concepts which had universal character, the textual criticism, or a general
organizational science which in 1913 was published scientific A.A.Bogdanov and
where the general description of various processes of emergence, existence and
disintegration of the organizations was given was. From the logic point of view
the organization can be considered as system, as a condition and as process
[5]. The analysis of an essence of the modern definitions containing in foreign
special literature devoted to the matter, allows to come to a conclusion that
their quantity is rather great and is various. In the presented definitions it
is necessary to pay attention to the following aspects. First, social
development of the organizations is a system of voluntary relationship between
the worker, the employer and society that identifies subjects of social
development. The state and, telling more widely, all society recently play more
and more appreciable role in high-quality change of conditions of the social
relations and social partnership. Secondly, the purposes of social development
didn't present voluntary improvement of the social relations in collective,
maintenance of social stability in surrounding community, development of social
and nature protection activity at national and international levels. The role
of social development in regulation socially - the labor relations consists in
personnel development, in health protection and creation of safe working
conditions, increase in social programs for employees of the enterprises and
members of their families. Thirdly, in definitions it is not specified, in what
forms social support of surrounding community can be carried out. Besides, the
city-forming enterprises are the main payers of taxes in local budgets that
also focuses on rendering of social support to the surrounding population.
Fourthly, development of social and nature protection activity includes all
complex of the questions accompanying forward development of society: economic
growth, solution of problems of the social sphere, food and ecological
security. Fifthly, in definitions coverage of social programs, compliance of
their scales to the current legislation isn't specified. In our opinion, social
development of the organization is not abstract social and economic category,
and quite concrete reaction of business community to occurring changes in labor
collectives, surrounding community, national and international development. Along
with alternativeness of treatment of category of social development, it, in our
opinion, represents, responsibility of the company in relationship with
partners, concerning the consumers, responsible policy concerning workers,
ecological responsibility of the company before society as a whole. Let's
afford author's specification - definition of the content of concept social
development. Social development of the organizations is a system of
relationship between the worker, the employer, the state and the society,
directed on improvement of the social relations, on development of social
programs and nature protection activity, and also on maintenance of social
stability at organizational, regional, national and international levels. The
made definition is offered to be fixed in Republic acts. Having studied
classification of main types of social development and considering their
specific features, we consider that social development can be classified also
on seven signs. Figure 1 gives the results
of the classification
of social development of the organization.
Figure 1 - Classification
of social development of the organization
The note - is
developed by the author
Classification of social development by various signs
allowed to systematize the conceptual device, to define a ratio of separate
definitions and that the most important to reveal the most essential factors in
each situation and their interaction on social development. The offered
classification of social development of the organization gives opportunity for
detection of features of formation and development of classification of
services of social development.
In our opinion, the presented classification of main
types and forms of social development shines them in more detail that serves as
addition to the theory of social development.
Results 2 - Are shown stages of management by social development of the
organization, allowing to define its purpose and structure are shown.
The results of the second experiment are
shown in Figure 2 - The Scheme of element structure of a control system of social processes.
Many scientists investigated world experience of management [6-15]. As soon as
people occupied the earth and began to live tribes, at once there was a need
for a management skill. Laws and methods of control over production and society
are known to mankind since ancient times. Documents (one of the most ancient
monuments of writing) the Summer civilization existing more than 5 000 years
ago from which it is visible are found that ancient managers perfectly sought
truth by disclosure of contradictions in reasoning of the opponent and
convinced him of the correctness. Xenophon - the great thinker - the historian,
the citizen of Athens and practically Socrat's contemporary, argued that
management of people - a special art form [10, page 36]. «Classical school»
(F.Taylor, A.Fayol, L.Urvik, etc.) considers the organization as the system
defined by formally established hierarchical structure of subordination [by 10,
page 72]. Such approach expresses refusal of the analysis of intellectual
aspects of labor processes. At the same time the positive role of «classical
school» is shown that it promoted origin of scientific production management,
as an independent current, to rationalization development in the field of the
production organization [10, page 50].
School «human relations», called by
also "neoclassical" or "behavioural" school (E.Meyo,
F.Roethlisberger, etc.), pays the main attention to the psychological analysis
of the relations of people in the organization, to personal qualities of
individuals and the incentive incentives causing from their party these or
those actions, that is the informal party of functioning of the organization
[10, page 51].
The doctrine of «the human
relations» was a peculiar reaction to shortcomings of «classical school» [10,
page 51].
The "empirical" school
named also by school tries to unite results of two previous schools on purely pragmatically
basis [10, page 51].
Within school «social systems»
(C.Bernard, G. Simon, etc.) there were some theories in which results of the
first two schools were reconsidered on the basis of structurally functional
representations (T.Parsons, R. Merton, etc.) and some ideas of a system
approach [10, page 54].
So, some representatives of an
economic science limit concept of management to the sphere of a national
economy, the industry, the enterprise [10, page 78]. Sometimes management is
reduced only to management personnel activity [10, by pages 78]. So, the
control system is understood, first of all, as unity of the subject and object
of management which is reached in result not only self-regulation in difficult
social systems, but also purposeful influence of object of management on the
subject. Distinguish various stages of management of the social sphere of the
organizations.
Figure 2 - The Scheme of element structure
of a control system of social processes
The note – is developed by the
author
The offered approach to elements of
a control system of social processes differs from existing that in it at the
initial stage strategy of socially oriented behavior which includes the plan of
social development is developed. The following stage of management of social
development consists in transfer of the declared priorities of social policy on
practice, that is, transition from a formulation of strategic objectives to an
operational management is carried out. The management structure under the
authority of which questions of social responsibility of the company get is for
this purpose created. The position of the director for social development also
can be specially included in the staffing table of the company. The main stage
of management of social development of the company – direct implementation of
its social programs. The final stage of process by social development consists
in carrying out an assessment of social programs of the company and finishing
of the reached results to a wide range interested persons (Figure 3).
Figure 3 – Social programs
The note – is developed by the
author
Social programs of the company
develop together with business and approaches to their realization evolve
together with company activity from isolated cases of charity before
development of strategy in a look business - the project on social investments.
The social report allows the companies not only to present in the consolidated
look information on the priority social programs, but also to bring of it to the
notice a wide range of interested persons. Thereby, it represents also the
instrument of communication of social responsibility of the company. With
reference to practice it means the following. First, operates as an advertizing
action, leading to improvement of reputation of the company in the opinion of
society that, finally, stimulates demand for the goods, it is much more
essential than service, than the traditional advertizing campaigns imposing to
the consumer any product. Secondly, the company, regularly publishes reports on
the social projects, receives "counter" offers from the state, public
and charitable organizations, allowing it to choose effective, both for
society, and for the company, idea and the program. Thirdly, regular preparation
and the publication of the social reporting raises a company assessment in the
opinion of her shareholders and investors who represent the directions of
expenses better and see efficiency of use of resources of the company. Thus,
the social reporting promotes improvement of corporate image of the company
that does it to more transparent from the point of view of financial streams
and increases efficiency of interaction with the groups of the parties
interested in its activity.
Results 3 - It
is proved the defining role of state
regulation for providing a sustainable development of social and economic
system is proved. The leading role in social development of the company,
undoubtedly, belongs to the state. The state played at all times a role of a
leading and directing link in introduction of progressive, economic and social
technologies society activity. Experts of the World bank convincingly showed
that the effective state is an important condition of social and economic
development [1-13]. State regulation of economy - one of the main forms of
participation of the state in the economy, consisting in its impact on
distribution of resources and the income, on level and rates of economic
development and welfare of the population of the country.
Social programs of the state and
corporations can be shown in forms of the state, obligatory and voluntary
social insurance, social security, corporate and individual social programs,
and also gratuitous corporate financing of social actions of surrounding
community. The following should become principles of state regulation of social
development of the companies as note N.A.Krichevsky and S.F. Goncharov:
1. Responsibility of the state
before economically active and invalid population for increase of level and
quality of life, for economic and social development of the country.
2. Inadmissibility of decrease in
level of the existing social rights and guarantees in the field of policy of
the income and a salary, safety of work, nature protection activity, protection
against action of social risks.
3. Control of observance of quality
of the goods, works and services of the companies, maintaining by the companies
of diligent business practice.
4. Participation of interested
parties in adoption of decisions infringing on their interests, a priority of
norms of the international and Kazakhstan law over the current interests of the
companies and authorities.
5. Organizational, legal, economic
and information assistance of implementation of the private social programs
which are beyond the current legislation, initiation of the directions of
development [14, page 58-59].
We agree with opinion of authors,
however we consider that for the Republic of Kazakhstan principles of state
regulation of social development can become the following:
1. Responsibility of the state for
economic, social and ecological development of the country.
2. Social protection of the invalid
population and increase of a level of quality of their life.
3. Responsibility of the state for
observance of the rights of workers and employers.
4. Observance of the rights of
consumers of production by the company.
5. Development of the existing
social rights and guarantees in the field of policy of the income and a salary.
6. Inadmissibility of decrease in
level of safety of work, nature protection activity.
7. Protection against social and
ecological risks.
8. Control of formation of diligent
business ethics of the company, of observance of quality of the goods, works
and services.
9. Development of the favorable
competitive environment.
10 Observance of norms of the
Kazakhstan and international law of the sociolabor relations.
11. Implementation of social
programs of the state in the form of obligatory and voluntary social insurance,
social security, corporate and individual social programs, gratuitous corporate
financing of social actions of surrounding society.
12. Assistance in implementation of
private social programs, initiation of the directions of social development.
Results 4 - it is offered the conceptual and logic scheme of strategic
planning of development of the organization is offered, the form of the plan of
social development of the organization is developed and the social corporate
code is offered.
The organization of strategic planning assumes the solution of the following
tasks: creation of the administrative structure realizing function of strategic
planning, development of rules of its functioning; selection and motivation of
the personnel, organization of information support. Modern understanding of
system of the strategic planning, based on a system approach, it is possible to
consider as result of some evolutionary process.
Figure 4 provides proceeding from all aforesaid, we
offer the conceptual and logic scheme of strategic planning in which components
of strategy of social development, their interrelation and sequence of process
of planning are structured. We offer
the following sequence of strategic planning of social development of the
organizations a formulation of economic strategy, a formulation of social
strategy, a formulation of political strategy. The offered concept of strategic
planning of social development is based on system of strategic planning,
features and problems of realization of the social responsibility, revealed
during the analysis. The results 4 is shown 4 figure.
Figure 4 - the Scheme of strategic
planning
The note - is made by the author
The offered approach to formation of
strategy of social development differs from existing that allows to strengthen
public value of the organization, both its roles and impact on social norms and
values both in the organization, and in the relations with environment,
contains the elements, making positive impact on organization development;
defines sequence of planning, establishes interrelation of social development
with economic activity, the organizations.
The
structure of the corporate code can be various, but its main goal should
consist in association of all resources of the company for the sake of
achievement of goals, we undertook attempt to develop the code of the corporate
ethics, the offered code differs from existing, by that in it all key
provisions on which are presented employees the companies should to be estimated. Figure 5 gives is shown the
results of the 4 experiment
Figure 5 – Structure of the
corporate code
The note - is made by the author.
Thus, the code, being the tool of
corporate PR, increases investment appeal of the company. Existence at the
company of the code of corporate ethics becomes a universal standard of
business. Administrative function of the code consists in a behavior regulation
in difficult ethical situations. Increase of efficiency of activity of employees
is carried out by a regulation of priorities in interaction with significant
external groups, definitions of an order of decision-making in difficult
ethical situations, instructions on unacceptable forms of behavior. Corporate
ethics, besides, are a component of corporate culture. The code of corporate
ethics - a significant factor of development of corporate culture.
Results
5 - it is developed methodical providing a
rating of social development of the companies, including definition of
quantitative and quality indicators of efficiency of carried-out social policy
is developed. Need of drawing up of ratings of social development is
dictated by expediency of creation of tools for various public groups. The
relations of business partners depend on a rating and trust of the population.
In the West ratings of business
reputation and social development are very popular. It should be noted that the
standard quantitative criteria aren't widespread in the Kazakhstan practice.
N. And Krichevsky and S.F. Goncharov
allocate three groups of indicators. The first group — indicators of social
responsibility before workers. It includes factors of growth of a salary of the
personnel, turnover of staff, educational level of employees, frequencies of
operational injuries and costs of social protection of workers [14, page 136].
The second group - indicators of social development before surrounding
community. It includes factor of expenses on social support of surrounding
community and factor of the relation of expenses on social support of
surrounding community to net profit [14, page 136]. The third group -
indicators of ecological responsibility. Indicators of the means spent for
increase of ecological protection enter into it: factor of expenses for
environmental protection to prime cost (KoCj) and factor of expenses for
environmental protection to net profit (Êîñ2) [14, page 136]. The techniques of a rating
assessment offered by N. And by Krichevsky and S.F. Goncharov and other
scientists it is used in practice, however they are directed generally on
calculation of the factors relating to social development and don't assume the
further analysis. We believe that the technique of a rating assessment of
social development should cover all social directions of the organization and
comprise a certain algorithm. The rating of social development should pay off
on the basis of a technique which estimates quality standard of a condition of
management by the corporate relations at the companies on the basis of groups
of the indicators having specific weight in total value of a rating. For the
companies the technique of a rating assessment is system of indicators, using
which management can estimate established practices of corporate governance,
level of social development of the company and connected with system of the
corporate relations risks, and also to define ways of increase of management
efficiency.
Methodical providing a rating of
social development of the companies, including definition of quantitative and
quality indicators of efficiency of carried-out social policy is developed.
Need of drawing up of ratings of social development is dictated by expediency
of creation of tools for various public groups. The relations of business
partners depend on a rating and trust of the population. In the West ratings of
business reputation and social development are very popular. It should be noted
that the standard quantitative criteria aren't widespread in the Kazakhstan
practice. N. And Krichevsky and S.F. Goncharov allocate three groups of
indicators. The first group — indicators of social responsibility before
workers. It includes factors of growth of a salary of the personnel, turnover
of staff, educational level of employees, frequencies of operational injuries
and costs of social protection of workers [14, page 136]. The second group -
indicators of social development before surrounding community. It includes
factor of expenses on social support of surrounding community and factor of the
relation of expenses on social support of surrounding community to net profit
[14, page 136]. The third group - indicators of ecological responsibility.
Indicators of the means spent for increase of ecological protection enter into
it: factor of expenses for environmental protection to prime cost (KoCj) and
factor of expenses for environmental protection to net profit (Êîñ2) [14, page
136]. The techniques of a rating assessment offered by N. And by Krichevsky and
S.F. Goncharov and other scientists it is used in practice, however they are
directed generally on calculation of the factors relating to social development
and don't assume the further analysis. We believe that the technique of a
rating assessment of social development should cover all social directions of
the organization and comprise a certain algorithm. The rating of social
development should pay off on the basis of a technique which estimates quality
standard of a condition of management by the corporate relations at the
companies on the basis of groups of the indicators having specific weight in
total value of a rating. (results 5).
Figure 6 – the Rating of social
development
The note - author's treatment of a
rating of social and economic development
As a whole, the had results of an
assessment of level of social development of the separate companies show that
application of a technique offered by us allows to define a real situation in
the field of management of the corporate relations in the company and to reveal
problems which the various parties interested in their activity can face. As a
result, the companies receive the tool representing possibility not only to
estimate and compare the general level of social development of the separate
companies, but also to carry out an appraisal in comparison of separate areas
of management by the corporate relations, and, therefore, to make the weighed
and reasonable decisions concerning these companies, considering various
related financial and non-financial risks (table 1). The 5 results shows table 1.
Table 1-Scale of a rating of social
development of the companies
|
Rating |
Interpretation |
Quantity of points |
|
ÀÀÀ |
The companies with high level social development |
450 - 500 |
|
ÀÀ |
420 - 450 |
|
|
À |
400 - 420 |
|
|
ÂÂÂ |
The companies with an average level of social development, not breaking requirements of the
legislation |
300 - 400 |
|
 |
350 - 380 |
|
|
 |
300 - 350 |
|
|
ÑÑÑ |
The companies with the low level of social development |
250 - 300 |
|
ÑÑ |
||
|
Ñ |
200 - 250 |
|
|
D |
The companies with the unsatisfactory level of social development |
150 - 200 |
|
SD |
100 -150 50 -100 |
|
|
The note – is made by the author |
||
In a technique more than
450 indicators which are distributed according to the allocated groups are
used. Each of used indicators depending on degree of its importance for an
assessment of level of corporate responsibility has the certain quantitative
value expressed in points. In the course of carrying out an assessment of level
of social development the consecutive analysis of existence and extent of
manifestation in the company of the characteristics corresponding to each of
indicators presented in a technique, and charges of points corresponding to
these indicator is carried out. As a result of summation of the received points
total value of the rating which maximum size can make 500 points is determined
by weight indicators. Result of analytical processing of information on the
estimated company is the individual numerical indicator and a specific
numerical indicator corresponding to it. According to the received value of a
specific numerical indicator, the company treats one of classes according to 1
scale presented in table. Thus it is possible to allocate the companies with
high level of the social development, observing requirements of the legislation
and a regulation of the Kazakhstan codes of corporate behavior. The companies
of this class pursue the active and balanced policy in the field of social
development
The companies with the
average level of social development are the companies which are not breaking
requirements of the Kazakhstan legislation and partially carrying out base
provisions of the code of corporate behavior. The companies of this class
realize active policy in separate areas of corporate social responsibility.
Risks of violation of norms of interested parties, unfair activity of executive
bodies of the company and providing poor-quality information at the moment of
exposure of a rating assessment are minimum.
The companies with low
level of social development allow a violation of the law in the activity in
this or that volume and non-compliance with base provisions of the code of
corporate governance. The companies of this class have high risks of violation
of the rights of interested parties, unfair activity of executive bodies of the
company and the granting facts not qualitative or not full information.
The companies with
unsatisfactory level of social development. In practice of these companies
violation of a number of the main requirements of the legislation, not
observance of base provisions of the code of corporate behavior is revealed.
The carried-out assessment
of the separate companies, according to the presented technique, showed that
the companies relating to one class on level of corporate responsibility, can
have considerable distinctions in the separate directions of realized policy in
the field of the corporate relations. So, for example, the companies with the
state participation have lower rating in the sphere of the relations with the
personnel and shareholders in comparison with completely private companies.
Results 6 -
It is offered the structure of a social package of the organizations, reflecting
necessary components of social protection of workers is shown.
One of the most important
results of work of the organization in the direction of the joint venture is
existence and formation of a social package, as organization card. The social
package is the instrument of management of human resources — both cash, and
potential. Into its functions enter: motivation of the personnel and ensuring
high efficiency of work, maintenance of health of workers and, thereby,
reduction of the expenses connected with temporary disability and disability,
attraction and accumulation of the best shots, creation of favorable reputation
of the enterprise before a social environment, so — consumers and potential
labor, maintenance of social standards which are at other enterprises — in
other words, competitiveness of the enterprise on a branch and interbranch
labor market.
It is possible to tell that
a social package — this one of means of «internal PR», raising devotion of
staff of the company, causing in them feeling of a demand, care.
It is important to note
that the social package unlike bonus system doesn't stimulate the personnel to
more good results. Its purpose — prevention of negative tendencies, not
stimulation positive.
The social package is a set of
privileges which are provided by the employer. The social package gives the
right to free drugs at out-patient treatment, the right to the free permit on
sanatorium treatment according to medical indications, the right to free
journey in suburban railway transport, the right to journey in railway
transport once a year to a place of sanatorium treatment and back. During an
assessment of social development of JSC Kaztransgaz we found out that in
connection with decrease in net profit society couldn't provide performance of
all provisions of the collective agreement which is the unique local document
of the organization fixing social actions. In this regard we recommend during
the planning and formation of the budget of expenses on the personnel including
on social actions to develop a certain algorithm of the actions considering
both internal, and external factors, the organizations influencing profit. It
is necessary to choose the priority directions on which and to pay close
attention and financial support. It can be formation of social and
psychological climate in collective, corporate culture, that is those
directions which don't demand considerable financial investments, but rather
significantly influence the relation of the employee both to the organization,
and to the work in it. Really, prospering firms differ high level of culture
which is formed as a result of the thought-over efforts directed on development
of corporate spirit and undertaken for the benefit of all parties, interested
in company activity. Ignoring of corporate ethics negatively affects image of
the enterprises, their investment appeal, size of their corporate cost;
aggravates intra firm contradictions. In our opinion, it is necessary to choose
the most effective from the social package fixed in the existing collective
agreement, but not demanding too high expenses, for example, to refuse
corporate support to the workers acquiring housing in a property, but to
strengthen work in the direction of implementation of non-state provision of pensions,
as age of the main part of employees – 35-45 and more than 45 years and
rendering of medical care under contracts, but not in non-state establishments
of health care. The compensatory system developed at the enterprise, should be
issued in the form of the local statutory act, for example, "Regulations
on compensation and awarding" in which should be defined not only
conditions, but also mechanisms, sources of financing of monetary compensation
of employees. This situation should be brought to the notice each employee of
the organization in order that there were no the problems connected with
distribution of awards, financial support, the size of compensation. For
example, control over pension expenses can be carried out at three levels: from
participants of the pension plan (workers and pensioners) on with. The figure 7
shows the results 6.
·
Figure
7 - Structure of a social package
The
note – is developed by the author
The offered structure of a social
package serves as addition to the theory of development of social obligations
and promotes further development of competitiveness of firms.
Results 7 - are developed offers on structure of collective agreements,
their qualitative and quantitative content are given. Collective agreements are the
important tool of an equilibration of interests of the worker and the employer,
and also unique real, today, institute which is capable to compensate to some
extent the liberal legislation on the work, operating in the Kazakhstan
economy. At the conclusion of the collective agreement at level of the
enterprise of the party start with Laws of the Republic of Kazakhstan «About
collective labor disputes and strikes», the Republic of Kazakhstan. The law
«About trade unions», «About collective agreements» [15, 16, 17]. The contract
at level of the republic, branch (the tariff agreement), the region prepares
and will be legalized with the assistance of the state, and these procedures
are regulated by the Law «About social partnership» [18]. It should be noted
that the contents and structure of the agreement are determined by the
arrangement between representatives of the parties who are free in a choice of
a circle of the questions, included in it. In branch (regional, territorial)
agreements can be excluded, for example, such questions as: compensation;
conditions labor protection; work and rest modes, development of social
partnership; social protection and others [19].
In turn in collective contracts
mutual obligations of workers and employers on the following questions can
join: forms, systems and sizes of compensation; payment of grants, competences,
the mechanism of regulation of compensation, employment, retraining, conditions
liberation of workers, working hours and rest time, improvement of conditions
and labor protection of workers, ecological safety and health protection of
workers on production, a guarantee and privileges to the workers combining work
with training; improvement and rest of workers and members of their families;
control over the implementation of the collective agreement, the organization
of the social are sewn up workers and other questions [20].
Branch (regional, territorial)
tariff agreements and collective contracts should be in close interaction and
interrelation. Thus it should be noted that in the collective agreement taking
into account financial and economic position of the employer privileges and
advantages to workers, conditions of social protection and work more favorable
in comparison with the established laws, and also other normative legal acts
and agreements can be established.
In our opinion the collective
agreement made within the concept should include the following provisions the
figure 8
show results 7.
Figure 8 – Structure of the
collective agreement
The note - the Scheme is developed
by the author.
As formation of competitive
commodity markets is closely connected with a liberal labor market and
decentralization of process of collective agreements, the initiative conclusion
of the collective agreement at enterprise level, as the most effective
institute, capable to express interests of hired workers will be the most real
means of an equilibration of interests of workers and employers.
Improvement of the mechanism of the
address social help – development of the specialized programs directed on
ensuring of availability of social services and the mechanism of address social
support of the most needing segments of the population.
Along with it, when developing the
current and perspective regional and local budgets, at implementation of
measures for the state support of business activity, including small business,
to involvement of foreign investors, drawing up of target social programs and
schemes developed and placements of productive forces on long-term prospect in
the state it is offered to use social standards.
Social standards, unlike concrete
indicators of these or those social programs, possess a number of features,
namely them treat: lack of a directivity and addressing, restriction in time
for their achievement, coordination with their financial and material security
(resources). Besides, social standards are corrected in process of change of
scientific representations and justifications of these or those social
requirements. At the same time social standards possess an active role in
management of social processes in the conditions of transition to the market
relations, development of business activity, increase of economic and legal
independence of certain subjects of RK.
In this regard special value is gained
by scientifically reasonable differentiation of social standards for separate
regions of RK, and at their definition the complex of the factors connected
with climatic conditions, a demographic situation, nature of moving of the
population, should be considered by an ecological situation and national
features. Thus, in the field of social and economic development of RK on the
near-term outlook social standards should consider a complex of the main
actions at ratio definition between material and social spheres, structures of
capital investments and population employment, proportions between separate
branches and the most social sphere.
Practical importance of research. The recommendations developed and
proved by the author can be used:
- public authorities of various
levels, RK Agency statistically, the World bank, the government of the Republic
of Kazakhstan, the Ministry of Labour and Social Protection of the population
of the Republic of Kazakhstan, association of appraisers, when developing national
standards of an assessment, the labor code, methodology of estimation of cost
of the company;
- the enterprises and the
organizations when developing programs of social development of the
organizations, in practice of management, an assessment of investment projects,
introduction and system effectiveness of management;
- higher educational institutions by
preparation of training materials and lecturing in educational process when
developing and teaching training courses in system of preparation and retraining
of the managerial personnel and experts in the field of an assessment and
management, a number of financial and economic disciplines on specialties:
"Finance", "Assessment", "Management",
"Social policy", «Management of social processes»,
"Business".
- scientists at carrying out further
researches.
Conclusions
During research it is possible to
draw the following conclusions:
1. Due to the lack today in the
Republic of Kazakhstan theoretical researches of scientists about essence and
the content of social development of the organizations, social partnership,
corporate social protection, we generalized existing views of foreign
scientists of the past and the present in a broad sense this concept,
methodical bases, the economic nature and the content of these concepts that
allowed to specify signs of their distinction and similarity are opened theoretic-methodological
and organizationally, and also to formulate author's definitions of these
concepts. It is established that social development of the organizations is a
system of relationship between the worker, the employer, the state and the
society, directed on improvement of the social relations, on development of
social programs and nature protection activity, and also on maintenance of
social stability at organizational, regional, national and international
levels. The made definition is offered to be fixed in acts of the Republic of
Kazakhstan, in particular in the labor code of the Republic of Kazakhstan. The
offered senior classification of social development of the organization gives
opportunity for detection of features of formation and development of
classification of services of social development. Classification of social
development by various signs allowed to systematize the conceptual device, to
define a ratio of separate definitions and that the most important to reveal
the most essential factors in each situation and their interaction on social
development.
2. An important component of social
development are stages of management of social development which can be
characterized as follows: development and acceptance of strategy of socially
oriented behavior, definition of priorities of social policy of the company,
creation in the company of structure of management of social programs that includes
frames of management, a control facility, information and a management place,
the business organization according to special programs of training in the
field of social development, administrative decisions, regional system of
social protection and social security, social standards, social programs,
resource providing, social objects, realization of social actions and programs,
social guarantees, an assessment and finishing of interests.
3. The leading role in social
development of the company, undoubtedly, belongs to the state. The state played
at all times a role of a leading and directing link in introduction of
progressive, economic and social technologies society activity. We consider
that for the Republic of Kazakhstan principles of state regulation of social
development can become the following: responsibility of the state for economic,
social and ecological development of the country, social protection of the
invalid population and increase of a level of quality of their life,
responsibility of the state for observance of the rights of workers and
employers, observance of the rights of consumers of production by the company,
development of the existing social rights and guarantees in the field of policy
of the income and a salary, inadmissibility of decrease in level of safety of
work, nature protection activity, protection against social and ecological
risks, control of formation of diligent business ethics of the company, of
observance of quality of the goods, works and services, development of the
favorable competitive environment, observance of norms of the Kazakhstan and international
law of the social relations, implementation of social programs of the state in
the form of obligatory and voluntary social insurance, social security,
corporate and individual social programs, gratuitous corporate financing of
social actions of surrounding society, assistance in implementation of private
social programs, initiation of the directions of social development, is offered
the conceptual and logic scheme of strategic planning in which components of
strategy of social development, their interrelation and sequence of process of
planning are structured.
4. For ensuring competitive
development it is very important to provide economic, social, legislative
restrictions, moral, ethical requirements of society in economic strategy of
the enterprise. In the course of strategic planning of social development the
interrelation of economic and social strategy should be provided. This
interrelation is based on that that economic processes always have social
aspect without which efficiency of their realization can't be reached. In turn,
the social phenomena always have an economic basis out of which they can't be
realized. On their basis strategic alternatives are formulated and to be made a
set of the most optimum strategy social a development. The choice of strategy
of social development decides in the course of political negotiations on groups
of influence. We developed a form of the plan of social development of the organization
on the basis of which the conceptual and logic scheme of strategic planning of
social development in which components of strategy of social development, their
interrelation and sequence of process of planning are structured is developed.
It is necessary to include the following components in the plan of social
development: health of workers, condition of the production sphere, mode of
work, condition of production sale, treatment and rest condition, education
level and qualifications of workers, possibilities of increase of an education
level and qualification, labor and production discipline, labor activity and
quality of work, a creative initiative and participation in management, extent
of mechanization and work automation, mobility of the personnel, a form of
carrying out leisure, public activity of staff of the organization,
blagosostochny and level of social security of workers, unity of a social
community of employees of the organization, social composition and structure of
workers, satisfaction of needs of workers in housing and child care facilities,
consumer and trading services, satisfaction of cultural needs of employees,
development of corporate culture.
We offer the following sequence of
strategic planning of social development of the organizations: formulation of
economic strategy, formulation of social strategy, formulation of political
strategy. The offered concept of strategic planning of social development is
based on system of strategic planning, features and problems of realization of
the social responsibility, revealed during the analysis. Taking into account
limitation of resources we offer such principles of a choice of the directions
of social investment, an urgency, long duration. The principle of a means that
the enterprise chooses those directions of social activity which meet the
following requirements: compliance to strategic objectives of the enterprise,
compliance to financial and other possibilities of the enterprise, assistance
to success of economic strategy. The offered approach to formation of strategy
of social development of the organization differs from existing that allows to
strengthen public value of the organization, both its roles and impact on
social norms and values both in the organization, and in the relations with
environment, contains the elements, making positive impact on organization
development, defines sequence of planning, establishes interrelation of social
development with economic activity, organization.
5. One of the most important
indicators of activity of social development are served by its rating
assessment. We offer the developed methodical providing system of estimated
indicators of social development on the basis of which could the unified rating
assessment of social development of the organizations, including quantitative
and quality indicators of social development is made. It is possible to provide
algorithm of development and application of a technique of system of a rating
assessment of social development as follows: to be carried out the analysis and
a management assessment, the directions and an assessment of indexes of social
investments are studied, the directions of business reputation of the companies
and consumers are investigated, level of corporate culture of the company is estimated,
the policy realized by the company concerning the workers is estimated; the
assessment by the realized company of policy concerning business partners is
made, the realized policy concerning shareholders and investors is studied,
level of the organization of monitoring systems behind financial and economic
activity is investigated, the assessment of the realized company of policy
concerning the state and the obligation becomes. In aggregate with other
quantitative and qualitative methods of an assessment of management efficiency,
this technique allows management of the organization and representatives of the
various groups interested in its activity of the parties, to carry out an
objective and all-round appraisal of management efficiency the organization and
to make reasonable decisions concerning the considered organization. The rating
of social development should pay off on the basis of a technique which
estimates quality standard of a condition of management by the corporate
relations at the companies on the basis of groups of the indicators having
specific weight in total value of a rating. For the companies the technique of
a rating assessment is system of indicators, using which management can
estimate established practices of corporate governance, level of social
development of the company and connected with system of the corporate relations
risks, and also to determine ways of increase of management efficiency by the
corporate relations. The rating of social development should be under construction
proceeding from standard ensuring process with management with social
development, the direction of the analysis and an assessment of indexes, an
assessment of business reputation of the company, the analysis concerning the
workers, an assessment of level of corporate culture, the analysis concerning
business partner, the analysis concerning shareholders and investors, the
analysis concerning the state and society. As a result, the companies receive
the tool representing possibility not only to estimate and compare the general
level of social development of the separate companies, but also to carry out an
appraisal in comparison of separate areas of management by the corporate
relations, and, therefore, to make the weighed and reasonable decisions concerning
these companies, considering various related financial and non-financial risks.
6. As a whole studying practical
activities of the organizations, we come to a conclusion that there is no clear
boundary and definitions of a making social package of the organization. In our
opinion in the list of obligatory social guarantees of the employee should be
included: insurance conditions, professional development, sports payment,
holidays, dinners, motor transport.
7. It is important to note that
drawing up of collective agreements is necessary in modern conditions of
managing. The collective agreement made within the concept of social
development of the enterprise, should include the following sections: general
provisions, the mechanism of regulation of compensation, payment of awards and
compensations, employment assistance, working hours and rest time, improvement
and rest of workers and members of their families, labor protection and health
of workers on production, the social programs which have been directly
connected by the labor relations, contract control over the implementation,
responsibility of the parties, providing conditions of activity of workers. In
our opinion in the collective agreement made within the concept of the
enterprise: enter the regulation mechanism: order of its indexation, payment of
awards and compensations, working hours and time of rest, feature of definition
of working hours, condition and duration of holidays, privileges on paid
holidays, mechanisms of granting unpaid privileges, features of support of
workers, features of support of workers in holidays, improvement and rest of
workers: the feature of support of workers necessary for high-grade rest,
feature of support of workers, in holiday or rehabilitation; labor protection, health
of workers, the list of actions for labor protection improvement in production,
ecological safety of work. In the collective agreement taking into account
financial and economic position of the employer privileges and advantages to
workers, the working conditions which more favorable in comparison with were
established laws, other regulatory legal acts, agreements can be established.
Acknowledgments
My thanks are due professor
Kaznu named al-Farabi Muctarova K.S. for valuable comments. Some of their suggestions
have been incorporated without further acknowledgements, so not all errors are
necessarily my own!
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