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University of Vaasa - Vaasan yliopisto

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Report on CSR in<br />

the forestry<br />

industry<br />

(Ptichnikov and<br />

Park, 2006)<br />

among the people.<br />

532<br />

3. Prevention <strong>of</strong> the negative environmental consequences<br />

<strong>of</strong> the economic activity, accounting for future<br />

environmental impacts.<br />

4. Rejection <strong>of</strong> economic and other projects with an impact<br />

on environmental systems if the impacts are<br />

unpredictable or if their forecasts are unreliable.<br />

5. End <strong>of</strong> free use <strong>of</strong> natural resources, and the<br />

reimbursement <strong>of</strong> damages to local communities and<br />

environment<br />

6. Openness <strong>of</strong> environmental information<br />

7. Participation <strong>of</strong> the civil society, local governments and<br />

business circles in preparation, discussion and realisation<br />

<strong>of</strong> decisions in the area <strong>of</strong> environmental protection and<br />

rational use <strong>of</strong> natural resources.<br />

CSR is defined as ‘the continuing commitment by business to<br />

behave ethically and contribute to economic development while<br />

improving the quality <strong>of</strong> life <strong>of</strong> the workforce and their families<br />

as well as <strong>of</strong> the local community and society at large.’ Absence<br />

<strong>of</strong> ‘inherent contradiction between strong business ethics and<br />

effective capitalism’ is emphasized.<br />

The closest Russia has come to the development <strong>of</strong> an <strong>of</strong>ficial CSR policy document<br />

is the “Ecological Doctrine <strong>of</strong> the Russian Federation” (2003). The Doctrine sets out<br />

recommendations on the conservation <strong>of</strong> the natural environment. The second<br />

document <strong>of</strong> any importance is the report on ‘Corporate Social Responsibility in<br />

modern Russia: Theory and practice’ (Federal Council 2005). It provides a review <strong>of</strong><br />

basic CSR theory and uses case studies to demonstrate good practice.<br />

As can be seen from Table 3, the Russian federal CSR orientation is rather practical<br />

and focused on the immediate business functions such as providing workplaces,<br />

caring for the employees and fulfilling tax obligations. Engagement with civil society<br />

is relegated towards the end <strong>of</strong> lists and is planned for the long term.<br />

The role <strong>of</strong> international markets in driving the CSR agenda in Russia emerges as<br />

crucial. In addition to being cited in the Federal Council hearings, it was the key<br />

motivation for an investigation into market-based CSR and CSR-certification in the<br />

forestry industry commissioned by the Ministry <strong>of</strong> Economic Development and<br />

Trade and the Ministry <strong>of</strong> Natural Resources and Ecology (Ptichnikov & Park 2006):<br />

Wood products distributors on the international markets are increasingly demanding<br />

CSR certification <strong>of</strong> forestry products. The representatives <strong>of</strong> the Canadian company<br />

SNC-Lavalin interviewed by us also suggested that Rosneft/Vankorneft’s visible<br />

commitment to CSR was due to international market pressures.

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