Annual Report 2010 - Baltika Breweries

The Company’s philosophy is based on
a “We are engaged with society” principle.
Baltika contributes to societal development
and environmental protection by introducing
business practices that follow corporate social
responsibility (CSR) principles.
In May 2008, Carlsberg Group companies, which
include Baltika, signed on to the United Nations
Global Compact* which stipulates ten principles
of sustainable and responsible development
businesses. These principles are reflected
in the Carlsberg Group CSR Policy, which
was approved in 2010. The Policy covers the
following key areas:
Personnel and human rights;
Labor protection;
Environment;
Marketing communication;
Community engagement;
Business ethics.
Corporate Social Responsibility
In 2010, Baltika reviewed corporate documents
related to CSR to make them consistent with
Carlsberg Group Policy and developed and
approved Baltika’s own CSR policies.
Baltika’s CSR strategy was introduced on
a systemic level and covers all business areas,
from resource conservation to development
a culture of responsible drinking.
* The United Nations Global Compact,
which was launched in July 2000,
is both a political platform and a practical
framework for businesses committed
to sustainable development and
responsible relationships in the business
environment. As an initiative to upgrade
the quality of corporate governance
approved by corporate CEOs, it is focused
on pursuing the universal consistency
of business activities and strategies
with ten universally accepted principles
in the areas of human rights, labor, the
environment and anti-corruption efforts.
Personnel and Human Rights
We value our employees, because they are at the
heart of our success. The Company strives to create
conditions which enable its employees to develop their
skills to the fullest degree in an open and creative working
environment.
Social Partnership
Corporate labor relations are based on respect and
commitment to employees’ rights in accordance with
social partnership principles.
In 2007, Baltika established the Personnel Council,
which is a body that represents the interests of all
employees and enables them to be engaged in the
Company’s social policy management. At the initiative
of the Council and with the involvement of members
of primary trade union bodies, the Company signed
its collective bargaining contract in July 2008, which
governs corporate social and labor relations, establishes
mutual obligations for employees and the administration
and expands employment guarantees for a three-year
period. The main provisions of said contract are related
to compensation packages, work and vacation time,
conditions and labor protection.
Last year, the Company began to develop a new version
of its collective bargaining contract that will be concluded
in 2011 when the existing contract expires.
Compensation and Benefits Package
The salary level at Baltika is one of the highest in the
industry with the well-balanced compensation package.
This enables the Company to attract highly-skilled
personnel and provide good remuneration to employees.
In 2010, the average employee’s remuneration package
increased 8 %.
The compensation package includes a wide range
of benefits and compensation, such as:
Voluntary health insurance;
Life and accident insurance;
Free meals at the Company’s canteens or meal
compensation for employees who are travelling on
business;
Financial benefits in the case of marriage, the birth
of a child, anniversary dates or retirement; and
Additional payments for illnesses, travelling expenses
and other reasons.
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