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Файл:Corporate Social Responsibility. Monograph
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eye microsurgery for Ukhta medical center. Interestingly, this state-owned
company provides public goods in different countries. For instance, sport
complex for children in Belarus. These examples are consistent with the
view of (Reinhardt et al., 2008) of “reluctant” CSR, since the owners of
Gazprom – Russian citizens – have no say in making the decisions about
them.
Regional level of CSR
Another, but closely related issue, is the local effect of most of CSR
projects and reduction of tax base for federal taxation. Though such
deductions are limited to 25% of company’s profits, they can still play a
substantial role in redistributing wealth to the regional level. This can be
potentially beneficial, since both employees of the company and regional
administration might feel that they have greater stake in success of the
company, and, consequently, have stronger incentives in furthering its
wellbeing.
Business Associations and CSR
(Yakovlev, 2013) concludes that business associations help
companies to negotiate their preferred policies in return for corporate
sponsorships of various social and government projects. This is most
pronounces on regional, but not federal level. For example, regional
governments were more likely to back a company that is a member of
RSPP, Delovaya Rossiya or OPORA (Most prominent Russian business
associations ) by 18 p.p., and this coefficient is lower (but still positive) for
other business associations. They are 11.5 p.p. more likely to support those
firms that reported some help to regional or municipal governments in their
turn. The magnitude of this conclusion is significant: according to the study
of 957 industrial firms in 2003-2009 conducted by researchers in HSE
(Yakovlev, 2011), the share of firms in a random sample that are members
of business associations constitutes approximately 40%. By 2009 one
quarter of companies in the sample were the members of several
associations. On one hand, this suggests some coordination of CSR activity
of companies. On the other hand, it might suggest that CSR activities are
directed not to the social benefit directly, but to lowering the cost of
provision of public goods for regional and federal governments. That is,
such projects do not generate new public goods in addition to those
provided by the state, but lower the costs of these their provision for
regional or federal governments.
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CSR and city-generating companies
Finally, the role of CSR for city-generating companies is much
more important than for companies in economically diverse regions. In such
situation investment in community development, schools, recreation centers
etc can be an important tool for company to keep its employees and to
prevent them from moving to a more attractive city. We have already seen
the example of CSR projects of Slavneft in city of Megion. Such projects
also help employees to feel that they have a stake in company’s success and
improve their incentives. In this sense, CSR becomes much more important
for city-generating companies than for their peers in economically diverse
regions.
CSR Projects in Tatarstan
Tatarstan is one of the biggest Russian regions in terms of and also
one of the most economically developed regions of Russia. The republic is
highly industrialized, and ranks second only to Samara Oblast in terms of
industrial production per square kilometers. It is number one in Russia in
foreign direct investment. One of the first regional programs of corporate
social responsibility was the program of liquidation of dilapidated housing.
All companies were strongly encouraged, if not mandated, to devote 1% of
their revenue to construction of affordable houses for families that needed
relocation. As a result of this program, more than 100000 families received
new housing, which was only possible through the coordination of efforts
of many companies. CSR projects also contributed to the restoration of
many historic buildings in Kazan – Tatarstan capital – and other major
cities of the region. Nowadays large companies carry on the tradition of
providing affordable housing for their employees through co-financing their
mortgage. Other important venues for CSR projects of the region are child
recreation, employee healthcare, insurance and sports. Tatarstan Chamber
of Commerce and Industry encourages CEOs of large corporations to join
the board of trustees of companies that engage in socially-important
businesses and to provide them with expertise and corporate support. It
also coordinates businesses and organizes support of orphanages. Large
companies build recreation centers that provide substantial discounts for
their employees.
Regional fund Renaissance (“Vozrozhedie”) accepts and
coordinates corporate and private donations and directs them to restoration
and preservation of such objects of historical and cultural heritage as
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ancient city of Bulgar (became a UNESCO object in 2012) and Sviyajsk
(and island fortress built in 1552). Major sports teams in fields of soccer,
hockey, basketball, water polo, etc. are supported by large companies, such
as Tatneft, Nizhnekamskneftehim, Kazanorgsintez and others.
Appealing to consumer, appealing to the state: strategies of smaller
and bigger companies in Tatarstan
There are many studies that underscore the difference between
larger and smaller companies in the likelihood of engaging in CSR projects
and the amount spent in such projects (see Adams and Hardwick, 1998)
But the case of Tatarstan offers an insight in the difference in audience that
is targeted by such activities. In Tatarstan, larger companies often make
contributions that are more visible to officials than to general public, while
smaller companies target their consumers more directly. For instance, large
companies often contribute to the funding of large objects of cultural and
historical significance, while smaller companies partake in activities that
provide public entertainment.
Let us consider larger companies first. TAIF petrochemical
company, large food chain Bahetle, Helicopter Factory, Tatneft oil
company, Nefis Cosmetics are large players not only for regional, but also
for Russian and sometimes for world economy. All of them invested in
Renaissance Fund that fosters reconstruction of historic and cultural objects
of Tatarstan. However, little of these contributions were advertised to the
general public. In most cases, citizens were only informed about these CSR
activities through the plates on the historic buildings. To regional officials,
however, these contributions were highly visible and much appreciated.
Small companies, by contrast, inform public directly of their CSR activity
either directly (as in example of Food Festival), or through media.
Clusters and CSR in Tatarstan
In July 2016 several dozen Tatarstan restaurant organized Food
day, with entertainment and free food from the participating restaurants.
When interviewed about their motives, they stated that together they hope
to make Kazan “The Food capital of Russia”, spurring the interest in food
tourism to the city. There are strong competitive forces between the
companies, but collaborating in CSR projects allows them to achieve more
than each firm can do alone, since not single restaurant can be attractive
enough to draw tourists to the city. This situation closely relates to the
notion of business clusters introduced by M. Porter by which he a
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geographical proximate group of interconnected companies and associated
institutions in a particular field, linked by commonalities and externalities.
Clusters are considered to increase the productivity with which companies
can compete, nationally and globally. Interestingly, while the notion of
clusters is typically applied with regard to the main field of activity of the
firm, it can also apply to their CSR activities.
For instance, many of largest Tatarstan companies invest substantial
amounts in sports teams in various sports: large companies, such as Tatneft,
Nizhnekamskneftehim, Kazanorgsintez and others sports teams in fields of
soccer, hockey, basketball, water polo.
All these teams were a great success in both Russian and World
competitions. Their success contributed to Kazan officially capturing the
title of “sports capital of Russia”, and holding Universiade in 2013. Note
that the companies themselves do not match the definition of M. Porter,
since they do not belong to the same field. However, their CSR activities
happened to belong to the same field and produced a cluster effect.
Conclusion
We conclude from the existing literature that efficient engagement
in CSR can help companies to survive in the long run, and especially so in
the times of crises. However, CSR that does not match the overall strategy
of the firm increases its risk of bankruptcy. This means that CSR must be
analyzed from the efficiency, and not moral point of view. Corporate
engagement in CSR is not a good in itself: its misuse can be harmful for
social welfare, in particular if the company is hurt by it and must lay off its
employees. In this situation, employees lose their income and CSR projects
led by the company cease. It also has a potential for exacerbating the
principal-agent problem due to the combination of managerial discretion in
CSR issues and lack of accountability and transparency of this sphere.
However, CSR can help build thus between the company and its
stakeholders that can help company to survive, especially in times of crises.
We found that both positive and negative sides of CSR are present in
Russian CSR and in Tatarstan in particular. Russian economy has several
peculiarities that are significant in CSR activities of companies. For
instance, CSR is especially important in mono-cities. However, CSR of
government corporations is questionable, since it provides the grounds of
non-democratic redistribution of government funds. As more companies
engage in CSR activities of the region, they can attain the Porterian cluster
effect, even if they do not conform to the classic definition of cluster based
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on the same field of company business. This cluster effect can have a
positive effect not only for companies participating in CSR activities, but
on the regional development overall.
CORPORATE SOCIAL RESPONSIBILITY AND
RESPONSIBILITY OF REGIONAL GOVERNMENT AUTHORITY
IN THE DESIGN OF INNOVATIVE HUMAN CAPITAL
In our opinion the ability to bring income to its owner is crucial
structure-forming characteristics of human capital. Therefore, in our
research we have deliberately limited the content side of the concept
“human capital” to professional experience and experience of the employee,
allowing him or her to earn income from the work at the organization. The
classic definition of human capital by G. Becker also includes the concept
“migration”, suggesting a move to improve the conditions of return on their
own human capital. In this paper we do not consider the migration as an
integral part of human capital due to the fact that its use by the individual
will not be the part of the regional social development.
N.V. Zubarevich refers the theory of human capital to one of the
first social development theories [1]. In our opinion, the personification
nature of development has been the most accurately reflected in it. Social
development based on human capital theory is always specifically
addressed directly to the individual. To a large extend this is due to the fact
that the development of human capital in the region allows the individual to
improve really their living conditions by receiving higher income from
work. In this configuration the problem of human capital development can
be considered rather superficial and reduced to the getting of the highest
level of education providing the acquisition of the most qualified
knowledge and to increase of the service length which allows to gain
significant professional experience. In many ways the novelty of the G.
Becker concept laid in the fact that he managed to prove a direct
dependence of the education level from the employee wages. However, at
present the higher education does not automatically mean getting workers
more income than their colleagues who do not have this education
especially in Russia. R.I. Kapelyushnikov, in particular, explains this
problem of population as the result of the population overinvestment in
their own human capital, when there are no so many jobs on the labour
market that require a worker to have a higher education. In his view the
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following situation could emerge in the coming decades on the Russian
labour market: “a growing number of future owners of the tertiary
education will have to work on low-skilled jobs that do not require
significant investment in human capital” [2]. Overcoming this tendency is
possible if we create high-skilled jobs that are closely related to the
implementation of technological and organizational innovation. According
to R.I. Kapelyushnikov “the low rate of “good” jobs can be seen as a
downside of the lack of investment and innovative activity of Russian
enterprises” [2].
However, in the next decade the supply-demand ratio may change;
it is possible that the Russian economy will face with massive
overproduction of degreed labour force. R.I. Kapelyushnikov believes that
“in the long run instead of the highly productive economy of knowledge
something opposite could be formed – which has no analogues and
precedents unclaimed knowledge economy (or even pseudoknowledge),
whose outlines are not yet entirely clear” [2].
In this connection special importance gets the problem of formation
of high-demand in the market specialized knowledge embodied in an
innovative human capital.
There are many researches that have examined the problems of the
business community relationships to the different aspects of the human
capital of employees. So, in the research of non-profit partnership
“Interregional Association of Monitoring and Statistics of Education” on
the topic “Directions of cooperation between universities and employers in
the representation of interested parties” held in 2008 and based on the
analysis of 20 experts’ opinions the problems of getting specialized and
general knowledge in the university were discussed. Employers believe that
even the general competences of the graduates are not developed enough:
“universities do not fall beyond the scope of education programs”. Survey
the employers, ask them what graduates do they need and what
competences they should have. We need a graduate with well-bred speech,
etc. No, say universities, it is not our cup of tea. We have to complete their
education. How effective is it? So far we simply do not see the other way
and it claims much money” [3]. At the same time the existing higher
education does not give special knowledge and skills which are suitable for
modern problem solving: “the university does not want to get into the
professional community and become higher professional education, rather
than general. Well it needs buying equipment, conducting scientific
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researches, recruiting highly qualified specialists whom the university
cannot pay today, so they won’t apply for the work” [3].
Important data is contained in the research “Global Innovation
Barometer” which has been initiated by GE (General Electric) and
conducted by an independent consulting firm Strategy One from October
15, 2011 till November 15, 2011. As a part of the telephone interview 2,800
senior managers in 22 countries, among which Russia was included for the
first time, were surveyed. All respondents are directly involved in
innovation processes within their companies, served as vice presidents and
presidents; 30% of respondents are senior managers. 200 Russian topmanagers have taken part in the survey.
Russian respondents believe to a greater extent than in other
countries that in the next 10 years the public authorities (9 vs. 3% on
average), large companies (22 vs. 21% on average) as well as educational
institutions and scientific research institutes (6 vs 4% on average) will play
a major role in the introduction of innovations will. The Russian leaders
assess the role of small and medium-sized businesses (18 to 27% on
average) and individual entrepreneurs (1 vs. 4% on average) as less
important (in comparison with their colleagues from other countries). At the
same time 39% of respondents (both in Russia and in 22 countries on the
average) point to the importance of partnerships between all interested
players and 74% believe that companies can easily attract universities to
solve their problems in the field of R & D (66% on average of 22 countries;
65% on average in the BRIC countries) [3].
The attitude of Russian leaders to the education system is more
pessimistic than in other countries. Only 35% could agree that schools and
universities provide the level of education required for the formation of the
future innovative leaders (59% on average for 22 countries; 52% on average
in the BRIC countries) [3]. At the same time, the presence of contradictions
in the position of Russian executives should be noted. Thus, only 66%
agree that people’s creativity will dominate as a driving force of innovation,
rather than just the deep research (73% on average for 22 countries), at the
same time 64% of Russian leaders noted the presence of employees who are
able to think creatively and to find creative solutions (56% on average for
22 countries; 54% on average in the BRIC countries) among the three most
important factors that could contribute to the success of innovation. Also
42% include the presence of employees with a higher level of technical
training to the most important factors (49% on average for 22 countries;
51% on average in the BRIC mills); 46% say the need to reduce
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bureaucratic barriers to access to financing innovation (25% on average for
22 countries; 33% on average in the BRIC countries); 29% indicate an
increase in the extent of state support for innovation (34% on average for 22
countries; 37% on average in the BRIC countries). To sufficiently
significant factors we may include partnerships with educational institutions
and research laboratories in the development of the product (25% in Russia,
28% of the average for the 22 countries) [4].
Theoretical-methodological analysis and already provided
secondary data analysis of several research centers allow us to synthesize
existing knowledge and apply them to the analysis of empirical data of the
author’s study of social order for innovative human capital. The object of
our research is the expert community of organization leaders (chief
executive officers, heads of personnel management departments and their
deputies and other officials who directly make decisions on the
management of personnel in the organization). The study has been
conducted in order to identify the factors affecting the arrangement of
innovative human capital discourse in the community of organization
leaders.
Research methodology. To determine the specificity of the
innovative human capital discourse in the community of organization
leaders we used the approach of M.A. Klupt, L.A. Burganova, L.G.
Hadieva in the documents of government authority and development
program of the leading universities, who applied quantitative (M.A. Klupt)
and qualitative (L.A. Burganova, L.G. Hadieva) content analysis in the
analysis of demographic problems [5]. In the quantitative approach such
concepts as character of selection (of words, texts or their parts), frequency,
and statistical associations are in the foreground). In qualitative – symbols,
their context and interpretation. Having taken the methodology proposed by
A.N. Oleinik [6] as a basis we have focused on the analysis of the statistical
links within the text selection for qualitative content analysis. For its
implementation program QDA Miner program v. 4.1.12 with module
WordStat v. 5.1.12 developed by the company Provalis Research
(Montreal) has been used (see Appendix 2).
Characteristics of studied texts selection. We have taken the text of
articles in the magazine “General Director” during the period from January,
2010 to January, 2011 (N = 76) as an object of analyses, the criterion of
article selection was the occurrence of organization leaders’ statements in
them, the list provided in Appendix 3.
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Tools of content analysis. The key point of the content analysis is
coding: correlation of text parts with categories by the help of which the
analysis is conducted. List of categories forms a kind of “dictionary” for
reading and interpretation of article text based on the principle of
substitution. (see Appendix 2).
Dictionary (code list) is derived from the basic research problems
and specified by the interests of the researcher and has instrumental nature.
The dictionary includes 8 codes, organized in 3 “cores”, “innovative human
capital” (codes “incentives for innovation”, “wages”, “knowledge”),
“investment nature of labour” (codes “education”, “development”,
“professional experience”), “network nature of the labour” (codes “business
projects”, “exchange of ideas – innovative environment”). Code statistics
for the qualitative content analysis and dictionary analysis of the
organization leaders’ texts are presented in Table 8.
Each code is illustrated by three examples to assess the external
validity of codes in accordance with the adopted in the literature
recommendations. It is usually recommended to include in the report “at
least three independent examples of each code interpretation, especially in
respect to coding of latent variables” [7].
Incentives for innovation. The development of innovative human
capital is directly related to the feasibility of innovation activity in the
enterprise. The leader must encourage innovation implementation which is
the reason for employees to use their human capital.
“I like energetic people with fresh ideas not limited to any
conventions and always ready to learn something new, so I encourage
engineers for any proposed ideas in my company”.
(J. Dyson - Dyson, chief executive officer of the company Dyson (Great
Britain), the magazine “The Director General” №5, May, 2011).
“Making the decision to implement is delegated to middle managers
– at the level of department heads and main functional experts (chief power
engineer, chief engineer, chief engineer, chief metallurgist). The point of
this scheme – to give an extra incentive to make decisions on
implementation to middle managers”. (V. Shirokov – chief executive
officer of the company “Yapp Rus – car systems", Kaluga, magazine
“Director General”, №11, November 2010).
“All suggestions without exception are accepted for consideration.
We appreciate the very fact that the officer felt it necessary to share his or
her thoughts with the management… Non-financial recognition plays an
important role too: it is important for people to see the benefits of their
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inventive activity. For example the authors of the best suggestions in the
region according to the results of the annual competition are sent abroad to
a world conference on improvements, as well as to the conference in
Tokyo” (K. Ozerov – Chairman of the committee on system of suggestions,
an expert on the development of the organizational structure of the
company “Petro” “St. Petersburg, magazine “Director General” №11,
November 2010).
Wages. Wages are the end result for the employee to use his or her
innovative human capital, the purpose of his or her work at the enterprise.
The organization leader making decisions on wages of his or her employees
establishes one of the conditions for the development of their human
capital.
“No matter how you treat an employee in response to a request for a
wage increase say that you are ready to discuss this issue. Your task – to
determine the fair value of their labour and pay a fair wage”. (S. Inozemtsev
– Personnel director of the company Magenta Technology, Samara
magazine “Director General” №1, January 2011).
“I note that employees who receive piece-rate payment are more
disciplined. If you offer a competitive salary none of the staff would
organize hobby club at work” (K. Tsvetkov – Director of Severodvinsk
garment factory, magazine “Director General” №11, November 2010).
“Existing nowadays relationships between the employer and
employee are outdated, since they are based on the conflict between labour
and capital. They are replaced by the more equitable partnership. Some
companies like ours have become associations of free individuals and each
member contributes and receives a reward depending on the results” (V.
Mityakin – co-owner of the companies, “Masterbordyur”, “Masterfaib”,
“Sumasshedshaya nauka”, magazine “General Director” Moscow, №2,
February 2010).
Knowledge. Knowledge for the company is an economic resource
that allows the employer to make a profit, and the employee – higher
wages. The level of competitiveness of the organization and the degree of
its human capital development depends on the attitude of its leader to the
value of knowledge.
“... It is very important to create a team that has both good
theoretical knowledge and professional skills. In short, a team that can do
everything (and especially that what chief executive officer cannot do)” (A.
Reznik – chief executive officer of Limited Liability Company “Trial
Market”, Moscow, magazine “Director General”, №1, January 2010).
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