Social Responsibility of Business: National Company KazMunayGas
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CORPORATE SOCIAL RESPONSIBILITY WAS, IS AND WILL REMAIN ONE OF THE KEY ELEMENTS IN KAZMUNAYGAS ACTIVITY.
While safeguarding state interests in the republic's oil and gas sector, we continue to pay as much attention to the development of other important sectors, both production and social.
Our hydrocarbon exploration, production and conveyance efforts have had a
synergetic impact on the emergence of new operations in Kazakhstan such
as coastal infrastructure and modern petrochemical facilities.
KazMunayGas is a leader of the domestic business community in
implementing best practices of corporate governance.
As to our activities in social areas, the company is committed to the following
First, annual investments by KazMunayGas in the social sector exceed $100
million, and over $160 million is to be supplied this year.
Since 2002, the national company alone, i.e. excluding any of its subsidiaries
and associates, has contributed over Tenge 3 billion for charity and
Second, KazMunayGas is actively involved in the implementation of social
programs run by the government and businesses, and contributes to
international and significant domestic events.
Third, acting as a party to or the government's authorized agent for major oil
and gas projects, the company assists in raising significant funds to finance
the construction of social infrastructure, develop the country's staff potential,
support youth, etc.
Here are some examples of how our social responsibility scheme works:
1. The company provides charity and sponsorship aid to veterans of war and
work, disabled people, low-income groups of citizens, including pensioners,
as well as distinguished oil and gas workers through the social fund Munaishy
and other dedicated foundations, organizations and associations.
A wide range of steps is taken to support World War II veterans, including provision of funding to purchase medicines, subscribe to newspapers and magazines, pay telephone bills, and buy home appliances for custodial institutions.
2. It has become a tradition of KazMunayGas to support socially vulnerable
groups on an individual basis. Every year, the company makes sponsorship
contributions to the orphanages Ak Bota in Atyrau and Svetoch in Astana,
to the Association of Disabled Women 'Shyrak', Almaty, and the Social
Association Kazakhstan Organization of Veterans'.
The spirit of corporate social responsibility has found support from our employees which being actively engaged in civil activities regularly gather donations for the Red Cross and Crescent Societies. Moreover, employees agreed that occasional donations are made to meet any special needs or help any specific persons. So, everybody in the company donated their one day's salary to the Social Charity Fund 'Protection for Children with AIDS' in response to the difficult situation in South Kazakhstan Region. The company's subsidiaries joined the head office's initiative, and the total amount provided exceeded Tenge 37 million.
The company also gathers voluntary donations of money (clothes, footwear, toys) to the Social Association 'Akmolinsky Union of Large Families'. We appreciate the fact that our employees serve as a mediator by getting their close friends and acquaintances involved in such activities and by lifting social responsibility consciousness to a qualitatively higher level.
3. The company has a firm confidence that we are able to help anyone who stands in need of support and adaptation. There is a series of ongoing projects aimed to create new jobs for specific groups of people. As part of such projects, sponsorship funds were granted to Akmola Regional Branch of the Kazakhstan Union of Veterans of Afghan and Local Wars and to the Training and Production Enterprise of the Kazakh Association of the Deaf in Astana.
4. KazMunayGas contributes to projects and programs of social cooperation between regions. Over the past five years, Tenge 60 billion was spent to construct over 40 social projects of various nature.
The most outstanding projects include the construction of a gas supply system in the Village of Dossor, Atyrau Region, a sports center and a 3000-seat stadium in Zhanaozen, Mangistau Region, a children garden, a hospital and a sports center in Astana, a swimming pool and a sports center
in Atyrau, a sanitary waste disposal unit in Aktau, a sports center in Taraz, a health improvement center and a training center in the Village of Zeren, and many others.
5. As many KMG companies are located in areas with unfavorable climatic and ecological environment, the company is making major social efforts to continuously improve conditions in which its employees live and work. Particularly, the company built or repaired homes to help the victims of the disaster in Makat District of Atyrau Region, where 538 households suffered, including 88 families of persons employed by Exploration Production KazMunayGas and Intergaz Central Asia. The amount spent was Tenge 1.5 billion.
6. Much importance to social projects is also given through joint ventures engaged in oil and gas production and under production sharing agreements for a number of large projects where KazMunayGas acts in the capacity of an authorized body.
As part of the North-Caspian PSA, sponsorship aid of $570 thousand is provided yearly to low-income groups. The primary recipients of such aid include disabled children centers, the Council of Veterans of War and Work, orphanages and hospitals, a tuberculosis preventorium for children, rural first aid centers, maternity hospitals, an association for the blind, an association for deaf children, and gifted children from low-income families. Every year, summer camps are organized for 150 children from low-income families in Cesenatico, Italy. $300 thousand is spent each year to pay tuition fees for students from low-income families who have excellent academic record. Under the Kashagan Project, funds are provided to train medium-level specialists. Special consideration is given to persons belonging to socially vulnerable groups and large families from all regions of Kazakhstan. Karachaganak Petroleum Operating (KPO) provides yearly financing to enable veterans and rural high school students to visit best Pre-Ural sanatoriums. Funding is also allocated to support rural and urban youth of West Kazakhstan Region, including the project for the construction and maintenance of a youth center of registration of unemployed young people aged 18 to 30 to help them find jobs in local companies.
7. As to the promotion of sports and healthy lifestyles, KazMunayGas gives
support to federations of amateur boxing, gymnastics and bicycling, and
takes active part in the conduct of international tournaments. Such events
are viewed as additional stimuli for propaganda of healthy life style and
development of amateur and professional sport.
To help improve health of people, as part of the 2008-2010 Ethical and Physical Health Contribution Program, the company proposed that sports grounds are built for wider groups, including children and teenagers, to engage in sport activities. The sports grounds will have special playing surface to enable winter and summer sports. At least 50 same-type sports facilities will be constructed throughout Kazakhstan by 2011, irrespective of where the company's operations are situated.
8. Trainings and skill improvement courses for the company's employees
and the oil and gas sector on the whole are also among the company's
social priorities. Each year, KazMunayGas selects through the 100 Top
Scholars Program a hundred of best students from technical and non
technical departments of the country's leading universities. Program winners
not only become entitled to scholarships, but can have their internship in
KazMunayGas group companies as well. Scholars with good academic and
internship performance may eventually become part of the company's team.
Therefore, the company's social responsibility has grown into a multilevel
structure and is positioned for further development. In 2007, we adopted
the Code of Corporate Social Responsibility. This year, we developed
the Sponsorship and Charity Policy and the Ethical and Physical Health
Basically, all these is intended to help the national company to retain leadership in major CSR-driven projects and to demonstrate the approach the government is taking to the issue.