SCM GROUP PUBLIC REPORT 2011

Our main social goal is to make the regions of our presence
as convenient for living as possible, not only by the local,
but also by the European standards. We strive to provide our
employees with good and safe working conditions and to increase
our productivity to the extent that our enterprises are
capable of paying salaries, comparable to those in Eastern
European countries.
Achieving the social goals we set before ourselves is the prerequisite
to achieving our business results, since it allows us
attracting and retaining the best talent, managing our business
risks, and making large-scale investments in the upgrade
of our equipment.
To maximize our contribution to Ukraine’s socio-economic
development, we do the following:
• Follow the principles of sustainable development
in our operations. How we achieve our ambitious
results is no less important to us than what those results
are. In the operational planning for our enterprises we
take into consideration the specific interests of the local
communities and the Ukrainian society overall.
• Implement social projects, which create practical
value to the society. Our goal is not to duplicate
the government’s efforts, but to complement the ongoing
state-run social programs, where necessary. Particularly,
we are focused on education, health, energy efficiency
and local business development. We always take
into consideration the priorities and the needs of the local
communities where our enterprises operate.
We believe that:
• Safety and proper working conditions are the foundation
of the sustainable approach to business.
• By investing in our employees’ development, we help
them grow professionally.
• By implementing production efficiency programs,
we bring our enterprises, and Ukraine’s economy as
a whole, closer to comply with the international standards
– particularly in energy consumption and greenhouse
gasses’ emissions. For the local communities, this
approach means cleaner air and water, as well as preserved
biodiversity. For hundreds of thousands of our
employees increased production efficiency means higher
wages.
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Business ethics and corporate
governance
Our long-term success is founded on the unified rules for all enterprises
of SCM Group, as stated in our Code of Ethics, as well
as the responsible approach to doing business, regular reporting,
and constant dialogue with our stakeholders. Following these
rules is mandatory for all SCM Group employees – from the CEO
to the workers at our enterprises. Every company at SCM Group
regularly discloses information about its business, indicators, and
contribution to the local community development.
Our employees
SCM Group is the largest employer in Ukraine – with more than
260,000 people working at its companies and enterprises.
Our people are at the core of SCM’s sustainable development
strategy, since without the strong dedicated team we would
not be able to achieve the ambitious results and to be successful
in the long term.
We attract the talented professionals and provide them with
career growth opportunities.
We try to be the priority employer for the young generation,
as well as for the seasoned professionals. We believe in the
principles of succession and transparency in our relations
with employees.
We invest heavily in our personnel education and development
– at all levels of SCM Group, s well as provide for
the proper working conditions and quality medical care for
our employees. The average salary level at SCM Group is
twice the size of the average salary in Ukraine.
Our ongoing projects for employees:
• At DTEK Academy, a corporate university, employees
and managers enroll in the programs, tailored to their
needs jointly with the professors of well-known business
schools, with London School of Business and Kyiv-Mohyla
Business School among them.
• Metinvest, in partnership with Russia’s leading business school,
operates the integrated development program, targeting
the employees from the company’s succession pool.