Annual Report 2010 - Magnitogorsk Iron & Steel Works

16 22 26 28 32 38 50 72MMK , sBusiness ModelMMK’s Missionand StrategyOJSC MMK Boardof Directors'The Company'sProductionSales MarketsFinancesCorporateGovernanceEnvironmentProtectionStakeholders (interested parties) Areas of Cooperation ActivitiesReligious organizations (Russian OrthodoxChurch, Public Council of the Regional MuslimOrganization for the City of Magnitogorsk, etc.)Other organizations (e.g. Russian Union ofIndustrialists and Entrepreneurs, PublicChamber of Chelyabinsk Region, Extreme SportsFederation, Association of Russian Lawyers,Olympic Athletes Support Foundation, etc.)Spiritual and culturaldevelopmentPublic evaluation ofdraft laws, joint actionsto develop social andeconomic infrastructureMeetings, conferences,correspondence, charity activitiesForums, exhibitions, socialcommittees support, consultingcentres, media publications,websitesTo protect its interests MMK takes part in the following associations:• Russian Industrialists and Entrepreneurs' Union (member since 1999)• Not-for-profit Partnership "Konsortsium Russkaya Stal" (member since 2005).Relations with Local Communities in Magnitogorsk and the Regions of MMK’s OperationsMMK has operations in many regions of Russia, the CIS and foreign countries. MMK is one of the majortaxpayers in the Chelyabinsk Region and is the largest taxpayer and employer in Magnitogorsk. The future ofhundreds of thousands of Magnitogorsk citizens and those of the neighbouring areas depends on the Company’sability to remain competitive in the long term. This means that MMK’s key priorities are to build its long-termrelations with the local community and to resolve issues in such a way that both sides benefit. MMK supportseducational and cultural institutions in the city and its districts, helps to develop public sporting events, andmakes significant contributions to developing the social, utilities and transport infrastructures. MMK regularlyinforms the local community about the Company’s operations that may affect their interests through thecorporate mass media, such as:• the Magnitogorsky Metall newspaper (www.magmetall.ru),• broadcasts on local TV programs and radio stations,• the MMK corporate website (www.mmk.ru).Relations with Federal and Local Authorities and Political PartiesWorkingwith federal and local government authorities is an essential activity that contributes to thesustainable development of the Company. In 2009, MMK did not obtain any significant financial assistancefrom the government authorities. MMK, independently and as a participant of the Russkaya Stal Not-For-ProfitPartnership that unites the largest Russian steel producers, takes part in the public appraisal of draft laws, and,first and foremost, tax and customs laws, the Civil Code, and the laws regulating production, logistics, scientificand technical, social and demographic policies of the State. Regular meetings are held with experts and seniorofficers of Federal Ministries. MMK’s executives are invited to take part in discussions of legislative issues in theState Duma committees.MMK’s coordinates its operations with the authorities of the territories where the MMK Group is present. Thisrefers, primarily, to the Chelyabinsk Region, and the Republic of Bashkortostan. One of the forms of cooperationbetween MMK and regional authorities is entering into agreements on social and economic cooperation. Theseagreements stipulate mutual obligations of the regions and the Company, with a focus on developing the socialand economic infrastructure.MMK’s representatives take an active part in political life as deputies in representative bodies atvariouslevels. In 2010, elections of deputies to the Municipal Assembly of Magnitogorsk and the Chelyabinsk RegionLegislative Assembly were held. In the Municipal Assembly, 16 deputies not only represent their regionsand their constituencies but also continue their work in MMK and its subsidiaries. In the Chelyabinsk RegionLegislative Assembly MMK is represented by 8 deputies.Steel & Style , 10 MMK ANNUAL REPORT 81