â 5 (49), 2011 - KazEnergy

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KAZENERGY MEMBERSTransforming RuralKazakhstan:Corporate SocialResponsibility in ActionWith its sustained economicgrowth, Kazakhstan, a countryonce little known by theinternational community,is poised to continue its ascentonto the world stage.Kazakhstan has the world’s11th largest proven oil reservesand a strong mineral extraction industry,but the country’s wealth is not limitedto its natural resource sector—the peopleof Kazakhstan are themselves a key asset todevelopment.Kazakhstan citizens boast a literacy ratethat places them 14th in the world, and in2009, Kazakhstan was included for the firsttime into the UN’s list of countries with ahigh human development index (HDI). Inaddition, vulnerable sectors of Kazakhstansociety have seen a gradual improvement intheir quality of life: while in 1997, almost50% of the rural population was living inpoverty, today that number is closer to 15%.While such gains are the result of a confluenceof factors, businesses in Kazakhstanhave a key role to play in maintaining andaccelerating these positive trends. Cogni-76 № 5 (<strong>49</strong>), <strong>2011</strong>
In order to understand the needs of the ruralZhylyoi district more clearly, TCO initiateda social baseline assessment in 2008. Thissurvey indicated a number of serious socialissues in the areas of education, health,youth culture and recreation, and a dearthof community engagement indicated by theabsence of active non-governmental organizations(NGOs).Thus, in 2009, TCO partnered with theEurasia Foundation Central Asia (EFCA),a local NGO with a wealth of experiencesupporting local initiatives in communitydevelopment, private enterprise, educationand public administration. Together, theylaunched the Zhylyoi Community EngagementProgram, a long-term program aimedin 2009, TCO partnered with the Eurasia FoundationCentral Asia (EFCA), a local NGO with a wealth ofexperience supporting local initiatives in communitydevelopment, private enterprise, education andpublic administration. Together, they launched theZhylyoi Community Engagzant of the benefits of continued equitabledevelopment in Kazakhstan, some companieshave begun to participate in the country’snascent corporate social responsibility(CSR) movement.The UN Development Programme (UNDP)has been working in Kazakhstan for 17years on a variety of initiatives aimed atbuilding a well-governed, widely prosperoussociety. According to Botagoz Burilkieva,Project Coodinator for the UNDP in Kazakhstan,“to be a ‘socially responsible business’means to be a sustainable business, ethicalin employee relations; a business aimed atlong-term successful development and not atshort-term gain.”One company that has taken the lead in socialresponsibility is Tengizchevroil (TCO).TCO is a partnership between Chevron, KazMunaiGas,ExxonMobil Inc, and LukArcoB.V. TCO is currently developing the Tengizoil field in the Zhylyoi district of Atyrauoblast, in western Kazakhstan, and has beenin operation since 1993. Then, Kazakhstancitizens made up 50 percent of its workforce.Today, Kazakhstan citizens hold 85 percentof TCO positions. In nearly all of the 15,174households in the Zhylyoi district, at leastone person works for Tengizchevroil or for aTCO contractor.at the sustainable development of the area’shuman potential.The initial stages of the project successfullypursued a multitude of goals, from raisingtest scores in area schools to training doctorsto work more collaboratively with patients.So far, 58 key community leaders have beentrained, 10 NGOs created, 48 training sessionsprovided to the wider community, and11 youth leadership clubs created at schools.In three years, TCO has invested a total of$830,000 in developing the human potentialof the Zhylyoi district, and the positive effectsare expected to continue as the programsupports the sustained growth of initiativesby both individuals and non-governmentalorganizations.For Burilkieva, programs like TCO’s initiativein Atyrau herald a new stage in Kazakhstan’seconomic development. “In general, Iwould like to note that CSR development isinevitable for society. It will be impossiblefor society to form a loyal relationship withbusiness if business does not participatein addressing social problems. Businessesmust build mutually beneficial partnershipswith all parts of society in order to ensuretheir long-term survival.”In all, TCO’s project has reached 4,645 localresidents, who have become participants,volunteers and beneficiaries. Residents ofthe region have learned that they do nothave to wait for help from somewhere else—they have been empowered to create theirown futures.KAZENERGY77
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