Corporate Social Responsibility Strategy of FESCO Transportation Group

 1.    Introduction

1.1. FESCO occupies a special position in the transport market of Russia and the entire Asia-Pacific region. FESCO is one of the largest employers in the Russian Far East and one of the oldest private companies in the country.

1.2. The mission of FESCO is to create the best logistics solutions for our customers across Eurasia. The only way to achieve this is to conduct business in accordance with the principles of sustainable development and to strive to maintain balance of interests of all those involved in our activities in one way or another.

 2.    General principles

In defining the concept of corporate social responsibility FESCO follows international standard ISO 26000 – Guidelines on Social Responsibility.

“Responsibility of a company for impact of its decisions and activities on society and the environment through transparent and ethical behavior that:

– promotes sustainable development including health and well-being of society,

– considers expectations of interested parties,

– complies with applicable laws and is in accordance with the international standards of conduct,

– is integrated into activity of the entire company and is applied in its relationships.”

2.2. FESCO shares the position on corporate social responsibility as set out in the Social Charter of Russian Business. This document expands the CSR concept by including good business practice, respect for human rights, responsible labor practices, responsibility for rational use of natural resources and environmental protection, responsibility to consumers and local communities.

2.3. When implementing the corporate social responsibility strategy FESCO also relies on global practices recorded in the following documents:

3.    Priorities of corporate social responsibility

3.1. FESCO sees its social responsibility in being a reliable and responsible partner for all interested parties:

-        to create additional value for shareholders contributing to the development of technologies and business methods,

-        to promote high involvement and development of the creative potential of employees by including them in the implementation of socially significant projects,

-        to constantly strive to increase the level of safety at work,

-        to strictly comply with all legal requirements and to assist all public authorities in solving tasks of sustainable development of society,

-        to apply fair, open, and ethical methods of cooperation in relations to business partners,

-        to take care of the environmental friendliness of production, to use resources efficiently, to apply new technologies and best high-tech solutions in the field of environmental protection,

-        to contribute to social, economic, and cultural development of the regions of presence,

-        to conduct a dialogue and to interact with all interested parties based on the principles of mutual respect and business partnership, conscientious compliance with assumed obligations,

-        to improve the quality of corporate governance and to ensure regular and full disclosure of information about decisions and activities of the company that have an impact on society and the environment.

4.    Integration of the principle of social responsibility into activities of the company

The principle of social responsibility is integrated into the development strategy and daily activities of FESCO. The company ensures adherence to this principle at all levels of the organization. The principle of social responsibility is also promoted in the system of internal and external communications, employees of the company develop competencies and motivation necessary for the implementation in the decision-making process and practical activities.

4.2. FESCO strives to continuously improve its performance in the field of social responsibility, regularly monitors the extent of its impact on social, economic, and environmental systems, and analyzes the effectiveness of its social, cultural, and environmental initiatives.

4.3. The Company considers possible social and environmental consequences of the decisions made, implements the principle of social responsibility in the practice of procurement, sales, and investment.

4.4. The Company prepares and publishes reports on its efforts in the field of corporate social responsibility according to international non-financial reporting standards.

5.    Social responsibility at implementation of external social and charitable programs and projects.

5.1. Implementation of initiatives contributing to sustainable development of the regions of presence is one of the key directions of the Corporate Social Responsibility Strategy of FESCO.

5.2. Focus on the overall result, professionalism, and responsibility are among the values of FESCO. In accordance with these values, the company strives to maximize effectiveness of its external social and charitable programs by building long-term partnerships with the state and society. At the same time, a special role is assigned to professionals: social entrepreneurs, socially oriented non-profit organizations, and experts in the field of charity.

5.3. The Company supports the following forms of external social programs:

-        sponsorship – contribution to activities of another legal entity or individual on the terms of promoting the brand of the company,

-        charity – voluntary and gratuitous transfer of monetary means and/or property by the company to legal entities or individuals, performance of works, provision of services, other support or assistance,

-        social partnership – equal cooperation between the company and representatives of the state and/or society on the basis of special agreements with representatives of regional executive authorities, the purpose of which is to solve acute social problems and progress towards solving problems of sustainable development of regions of presence of the company,

-        informational and educational activities.

5.4. Selection of external social and charitable programs and projects is carried out on the basis of mission, values, and strategic interests of the company considering priorities of corporate social responsibility.

5.5. Mandatory criteria for the selection of external social and charitable programs and projects, in addition to the above, are:

-        needs of interested parties and regions of presence,

-        systematic approach to solving specific tasks of sustainable development, focus on measurable results,

-        potential of long-term partnership with minimal risks of dependence of the target audience on charitable support,

-        proportionality of costs and expected effect.

5.6. The Company undertakes systematic efforts aimed at improving the quality of external social and charitable projects implemented with its participation. These efforts will include the involvement of internal and external expertise for implementation of programs and projects, participation in evaluation of their results, as well as popularization of ideas, principles and best practices of corporate social responsibility, social entrepreneurship and charity.

6.    The special place of the Far East in the strategy of corporate social responsibility of FESCO.

6.1. Due to the fact that the history of establishment and formation of FESCO is inextricably linked with the history of development of the Far East, this region as a whole and Vladivostok as its capital in particular occupy a special place in the strategy of corporate social responsibility of the company.

6.2. FESCO prioritizes external social and charitable projects and programs implemented in the Far East and Vladivostok over others.

6.3. When implementing external social and charitable projects and programs in the Far East, the company considers peculiarities of the geopolitical situation, historical development, and social and economic characteristics of the region.

6.4. Since a significant part of assets of the company is concentrated in the Far East, the well-being of residents of Vladivostok and other cities in the region is of fundamental importance for FESCO.

6.5. Efforts of the company in the field of corporate social responsibility in the Far East are focused on the development of human capital, improvement of the quality of life in the region, creation of new opportunities for self-realization of its residents.

6.6. The company pays special attention to youth policy issues: creating attractive conditions for talented youth, developing infrastructure to realize the potential and aspirations of young people, attracting the younger generation to preserve and study the cultural and historical heritage of the region.