12 NikitinaTable 1: The annual <strong>social</strong> reports preparation (% оf respondents)Compilation <strong>of</strong> reports <strong>of</strong> <strong>social</strong>Years2007 2009Yes 10,0 6,0No, but plan 23.3 2,0No 66,7 92,0Table 2: Forms <strong>of</strong> <strong>social</strong> reporting (% оf companies that make up <strong>social</strong> reports)The form <strong>of</strong> <strong>social</strong> reportingYears2007 2009A separate report in accordance with international non-st<strong>and</strong>ard 0,0 0,0Appendix to the Annual Report 100,0 66.7Report to the board 0,0 0,0Speech in the Media 0,0 33.3Other 0,0 0,0Table 3: Reasons for not making <strong>social</strong> reports (% оf companies that do not make up <strong>social</strong> reports)ReasonsYears2007 2009Other tasks 48.1 29.8The company is not ready for dialogue with the public 14.8 4.3Lack <strong>of</strong> financial resources 11.1 10.6Necessity absence 26.0 46.8Other 0,0 2.1Do not call the cause <strong>of</strong> 0,0 6.4In 2007 “other tasks” <strong>and</strong> “the absence <strong>of</strong> thenecessity” were named as the most importantreasons for not drawing on the CSR reports. In 2009the same reasons were named, but their rankings arereversed. It is noteworthy that only 26.0% <strong>of</strong>managers saw no need for <strong>social</strong> reporting in 2007<strong>and</strong> in 2009 there were 46.8%. We can assume thatthe worsening economic situation in the countryaffected the views <strong>of</strong> managers. But in general, thissituation is because the level <strong>of</strong> businessesmanagement relationship to <strong>corporate</strong> <strong>social</strong>responsibility is very unstable. Socially responsiblebehavior is seen as an attribute <strong>of</strong> a good life, whichcan be neglected for the deterioration <strong>of</strong> thesituation. That indicates that the level <strong>of</strong>underst<strong>and</strong>ing <strong>of</strong> CSR as a strategy is not achieved.In this regard Russian federal <strong>and</strong> regionalgovernment authorities are taking steps to enhance<strong>social</strong>ly responsible behavior <strong>of</strong> Russian enterprises.METHOD OF "STANDARD OF CORPORATESOCIAL RESPONSIBILITY OFENTERPRISES OF VORONEZH REGION"It should be noted that at the present time in Russiathe unified <strong>social</strong> st<strong>and</strong>ard does not exist. Socompanies could not make up st<strong>and</strong>ardized <strong>and</strong>comparable reporting. All national st<strong>and</strong>ards for<strong>corporate</strong> <strong>social</strong> responsibility are developed basedon the documents <strong>of</strong> authoritative internationalorganizations: OECD Guidelines for MultinationalEnterprises (OECD, 2000); UN Human RightsNorms for Business; Global Compact; ILOConventions; Global Sullivan Principles. At theirbase the separate documents, which are advisory innature, <strong>and</strong> the fulfillment <strong>of</strong> their dem<strong>and</strong>s isvoluntary were formed: St<strong>and</strong>ard "Socialresponsibility <strong>of</strong> the organization. Requirements"-CSR/2008 developed by Russian Organization forQuality (ROQ, 2007); St<strong>and</strong>ard "Social reporting byenterprises <strong>and</strong> organizations registered in theRussian Federation. Guidelines", proposed byRussian Chamber <strong>of</strong> Commerce; "Basicperformance indicators. Recommendations for use inthe practice <strong>of</strong> management <strong>and</strong> <strong>corporate</strong> nonfinancialreporting", prepared by Russian Union <strong>of</strong>Industrialists <strong>and</strong> Entrepreneurs in order to promotethe ideas <strong>of</strong> the Social Charter <strong>of</strong> Russian Business(2005).The lack <strong>of</strong> clear quantitative indicators <strong>of</strong> CSR <strong>and</strong>methodological basis for the interpretation <strong>of</strong> theresults are the main problems <strong>of</strong> the majority <strong>of</strong>st<strong>and</strong>ards. The use <strong>of</strong> the st<strong>and</strong>ards GRI <strong>and</strong> "Basicperformance indicators. Recommendations for use inthe practice <strong>of</strong> management <strong>and</strong> <strong>corporate</strong> nonfinancialreporting" (Russian adaptation <strong>of</strong> the GRI)can help to overcome these problems (Prokopov <strong>and</strong>Feoktistova, 2008). But first <strong>of</strong> all they do not allow
JOURNAL OF ENGINEERING MANAGEMENT AND COMPETITIVENESS (JEMC) 13evaluation <strong>of</strong> results <strong>of</strong> <strong>social</strong> activity without theinvolvement <strong>of</strong> experts, as they do not have specificguidelines for the indicators. Secondly, thecomposition <strong>of</strong> the proposed indicators <strong>of</strong> activityfits only to a large industrial enterprise. And thirdly,they give rise to only a formalization <strong>of</strong> the reportingprocess in the management <strong>of</strong> CSR. Also, thegeneral purpose <strong>of</strong> each st<strong>and</strong>ard is not reduced tothe common goal: one can assess the quality <strong>of</strong> thepreparation <strong>of</strong> <strong>social</strong> reports, while others aredesigned to improve the quality <strong>of</strong> reporting onsustainable development, the third are made forstakeholders.In the last 2-3 years in the Russian regions somesteps to enhance <strong>social</strong>ly responsible behavior <strong>of</strong>regional companies have been taken. This processwas developed by such tools as organization <strong>of</strong> thevarious competitions, building a rating <strong>of</strong> <strong>social</strong>lyresponsible businesses, <strong>and</strong> developing their ownCSR st<strong>and</strong>ards <strong>and</strong> codes. In the Voronezh regionthe initiative in the introduction <strong>and</strong> development <strong>of</strong>CSR has also been taken. We have developed"St<strong>and</strong>ard <strong>of</strong> <strong>corporate</strong> <strong>social</strong> responsibility <strong>of</strong>enterprises <strong>of</strong> Voronezh Region". It covers thegeneral theoretical position associated with theterminology, goals, principles <strong>of</strong> <strong>corporate</strong> <strong>social</strong>responsibility, <strong>and</strong> includes minimum requiredindicators to assess the level <strong>of</strong> <strong>social</strong> responsibility.The st<strong>and</strong>ard can be used by organizations <strong>of</strong> allsizes <strong>and</strong> types, regardless <strong>of</strong> affiliation to aparticular industry, the level <strong>of</strong> knowledge <strong>of</strong> therequirements <strong>of</strong> international st<strong>and</strong>ards for <strong>self</strong><strong>assessment</strong><strong>and</strong> provided information to keystakeholders (public authorities <strong>and</strong> managementbodies <strong>of</strong> local <strong>self</strong>-government, communityorganizations, made available to the public throughmedia, etc.).The St<strong>and</strong>ard provides the use <strong>of</strong> both quantitative<strong>and</strong> qualitative indicators. The use <strong>of</strong> quantitativevariables ensures comparability <strong>of</strong> data. Theprincipal feature <strong>of</strong> this st<strong>and</strong>ard is that the CSRindicators are grouped in three spheres <strong>of</strong>responsibility - technical-technological,organizational-economic <strong>and</strong> non-productive. Thisallows description <strong>of</strong> three areas <strong>of</strong> socio-economicrelations:− State <strong>of</strong> the productive forces, from which allother components <strong>of</strong> <strong>social</strong>ly responsiblebehavior <strong>of</strong> the enterprise depend on;− The degree <strong>of</strong> organizational <strong>and</strong> economicrelations, which mediate the productive forces;− The nature <strong>and</strong> intensity <strong>of</strong> interaction <strong>of</strong>companies with governments, local governments,civil society organizations in decision <strong>of</strong> a widerange <strong>of</strong> <strong>social</strong>ly significant issues <strong>of</strong> nonproductiveactivities.For example, composition <strong>of</strong> the indicators in theorganizational-economic sphere is presented inTable 4.The structure <strong>of</strong> the indicators in the St<strong>and</strong>ard showsnot only content elements <strong>of</strong> the specific areas <strong>of</strong>CSR, but also evaluates the level <strong>of</strong> achievement inthis area.INTERPRETATION OF THE RESULTS OFCORPORATE SOCIAL RESPONSIBILITYFOR THE COMPANY AND ITSSTAKEHOLDERSSt<strong>and</strong>ard’s indicators rank the activities <strong>of</strong> thecompany's <strong>corporate</strong> <strong>social</strong> responsibility at threelevels. Ranking done on the basis <strong>of</strong> theimplementation obligations <strong>of</strong> <strong>social</strong>ly responsibleactivities: m<strong>and</strong>atory <strong>and</strong> voluntary. The minimumvalue <strong>of</strong> the indicator sets a limit <strong>of</strong> m<strong>and</strong>atory level.Failure to comply with m<strong>and</strong>atory actionsautomatically precludes the company from a number<strong>of</strong> responsible, no matter what voluntary <strong>social</strong>lyimportant transactions it may produce. In thepresence <strong>of</strong> at least one indicator with a value <strong>of</strong>"zero", the enterprise cannot be considered <strong>social</strong>lyresponsible. This is due to the fact that in prescribingregulations the values that society considersunconditional are reflected. The company may notshare this value system, but has no right (either legalor moral) to consider their own values moresignificant than that prescribed by society. This doesnot exclude the possibility to initiate the introduction<strong>of</strong> changes to regulations aimed at improving the<strong>social</strong> responsibility <strong>of</strong> all society that can beconsidered as an element <strong>of</strong> <strong>social</strong>ly responsiblebehavior on a higher - voluntary level.The St<strong>and</strong>ard takes into account that the conditionsin which businesses operate are specific to eachregion. Achievement <strong>of</strong> at least average levelindicates that the enterprise-specific parameter <strong>of</strong> itsactivities is working "better than others." Therefore,the averages over sphere <strong>of</strong> activity in Voronezhregion were taken as the first level <strong>of</strong> CSR.The first level is primary. It represents thecompany's activities aimed at the assimilation <strong>of</strong> theCSR provisions which are already developed,obtaining a sufficiently common for companies inthe region results <strong>and</strong> the adaptation to the generatedrules. So it can be treated as a voluntary adaptive.