CG and CSR Accomplishments and Awards INet–Skopje

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CG and CSR Accomplishments and Awards

INet – SkopjeCase Study

Nadezda Dimitrovska

INet – Center of Excellence Executive


Content

1. INet

2. Definitions of CG and CSR

3. CG and CSR at Inet

4. CSR - Areas and Examples of implementation

5. CG and INet

6. Awards and Prizes

7. Benefits

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INet - SkopjeOne of the leading Macedonian Value Added Distributors

(VAD) in Information and Communication Technology (ICT)

Established in 1991, with domestic capital; Performs in Macedonia and neighboring Balkan countries; 15 employees; Annual turnover over 2 million EUR; November 2008 – 15% Investment Fund (SIF) Headquarter:

Atinska 12, p.o.box 468, Skopje

tel. +389 2 3090.625

faks. +389 2 3090.634

e-mail [email protected]

http: www.inet.com.mk

mailto:[email protected]

http://www.inet.com.mk/


Definitions of CG and CSR Corporate Governance - CG:

• Way of establishing a balance of interests which exist in a particular company between different individuals and entities

• System through which company’s objectives are defined and achieved , its risks are evaluated and tactics for achieving good performances are chosen

• Companies with good Corporate Governance create value and provide a system of accountability and control appropriate to the risk undertaken

Corporate Social Responsibility - CSR:• Views of responsibility of the company to the social problems that are

legally prescribed and whose acceptance is realized with the management decisions


Why CG and CSR at INET? BECAUSE:

Good CG and CSR provide a special kind of

value added originating from

work in an ethical framework Beginnings of CG– through CSR, as part of CG:

January 2005 - Global Compact (UNDP)

Respect of the 10 universal principles of GC – “set of core values in the field of Human Rights, Labor standards, Environment and Anti-Corruption “

Communication on Progress Reports – 2005, 2006, 2007, 2008 and 2009


CSR Responsibilities

Philanthropic

be good citizen, improve quality of life

Ethical

Be ethical, work in a fair manner

Legal

Law ‘rules of the game’

Economic

Be profitable

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CSR – Areas of Implementation

People - Human Resources

Market

Society / Community

Capital / Assets

Environment


CSR – Areas of Implementation (1/5)

People - Human Resources :

Training;

Safety at work place;

Transparency;

Benefits for employees (policy and human

resources software);

Code of Conduct (CG);

Internships;


Implementation - Human ResourcesSince 2007 – Focus on INet employees

Safety Work - regular medical examinations, security equipment;

Supply of goods from different markets; Supply of goods from the warehouse of INet under

special payment conditions and prices;

Collective insurance of employees; Flexible work time; Trainings; Bonuses! Gifts by occasion; Mobile phones; Paid overtime work; …


CSR – Areas of implementation (2/5)

Market:

Information about products (declarations, manuals);

Quality Management System (IT Mark);

Code of conduct with partners/customers/suppliers;

Anti-corruption;

Dialog with customers;

Transparent price policy ;


Implementation – Market (1/2)

2007 & 2009 - IT MARK Certificate (Quality Management System) January 2007, INet gained IT MARK Certificate; December 2009 – re-certification Assessment conducted by ESI (European Software Institute)

Centre, Bulgaria;

One of Key Success Factors (KSFs) for competitive advantage–more efficient business operations;

Quality work in three main areas:o Business Management o Information Security Management; o Services & Systems Processes

2011-2012 - CMMI for Services & ITIL


Implementation – Market (2/2) 2009 – SAP ERP implementation

Integrated software solution for management of the business processes of the company

SAP All-in-One Solution SAP ERP modules implemented:

FI – Finance

CO – Controlling

MM – Materials Management

SD – Sales and Distribution

Benefits: Improving of the business processes

Faster response to customers’ requests, increased efficiency

Higher level of transparency to shareholders

Faster and accurate decision making (process analysis from its beginning to the end)

Increased value of the company


CSR - Areas of implementation (3/5)

Society/Community

Established cooperation network with NGO-s;

CSR reports - internal and external;

participation at regional CSR conferences;

Public sharing experience and participation in dialogs about specific subjects (as TODAY!);


Implementation – Community

Membership in social groups MASIT– Chamber of Commerce for Information and Communication Technologies,

(www.masit.org.mk) – chamber of 90 private companies whose primaryactivities are in ICT area;

Global Compact (www.unglobalcompact.org) – INet is among first Macedoniancompanies that joined the initiative of GC since January 2005:o Respect and implementation of 10 universal principles of CSR

BLF – Business Leader Forum – INet is one of the founders of the forum (forum of the most active CSR companies in MK), supported by CIRa

o Promoting CSR in MK, raising awareness through good practices

http://www.masit.org.mk/

http://www.unglobalcompact.org/


CSR - Areas of implementation (4/5)

Capital / Assets:

Communication with stakeholders;

Transparent objectives and strategies of the company;

Publicly available real Annual Reports, with accordance with international standards(www.inet.com.mk);

Published CSR reports;


CSR – Areas of implementation (5/5) Environment:

Ecological business processes;

Sustainable products and services;

Energy/resources saving;

Pollution prevention;

Collaboration with Public Administration, NGO’s…

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What is CG

Corporate Governance

Way of directing and controlling the company (corporation)

Way of establishing a balance of interests which exist in a particular company between different individuals and entities

• System through which company’s objectives are defined and achieved , its risks are evaluated and tactics for achieving good performances are chosen

External control of the management

Promotion of fair relations, transparency and responsibility

Companies with good Corporate Governance create value and provide a system of accountability and control appropriate to the risk undertaken

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CG – Potential Benefits

Four levels of CG Potential benefits

Level 4: Leadership in CG

►Better operating efficiency

Level 3: advanced system in CG Access to the markets of capital

Level 2: starting steps taken for improving CG

Lower price of capital

Level 1: compatibility with legal and regulatory requirements

Better reputation of the company, its directors and managers

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CG and INET (1/3) 2007 - Project Corporate Governance with IFC (International

Finance Corporation)

CG based on the principles of OECD;

June 2007 - Annual Assembly, adopted final documents:Statute (simple), Rules (Organization, the process of voting, rights and responsibilities of the bodies of the company), Code of Corporate Governance (OECD, MSE), Code of Conduct approved and placed on www.inet.com.mk

" Applying the highest ethical standards, demonstrating honesty and fairness in all our activities, we take responsibility for our performance in all our

decisions and activities"









CG and INET (2/3) Relevant CG company documents:

Statute of INetSimplified version of the existing statute

Organizational regulations of INet Organization, voting procedure, as well as the responsibilities, authorities and

duties of the company organs• Board of Directors (organization, meetings and agenda, voting, minutes, rights,

authorities, discretion, annual report)

• President of the Board of Directors

• Chief Executive Officer (general responsibilities, detailed list of responsibilities, reporting)

• Management Team (Appointment, dismissal and remuneration, roles and responsibilities)


CG and INET (3/3)

Corporate Governance Code Based on OECD principles for CG and CG rules for companies listed

on Macedonian Stock Exchange

General Meeting of Shareholders, shareholders’ rights and equal treatment, Transparency, President of BD, Board of Directors, Conflict of interests

Code of Conduct (Code of Ethics)


Code of Conduct of INet Guiding principles:

Business Ethics: It is INet’s policy to comply both with the letter and the spirit of all laws to which it is subject, wherever INet does business. INet also expects its Employees to conduct all business on behalf of INet in a manner consistent with the highest ethical standards.

Conflict of interests: INet expects undivided loyalty from its Employees. INet employees may not engage in any activity which could conflict with INet’s business interests, which would adversely affect its reputation. Employees may not use their position with INet, or INet’s information assets, for their personal gain or for improper benefit of others.

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CG & CSR- Awards and Prizes (PR!) CG - November 2007, December 2008, December 2009

3 x Transparency - Zero Corruption :

Certificate for company with good corporate governance;

CG - November 20081 x HRDF (Human Resources Development Fund):First prize for the development of human resources (training for 3 managers with VIP in 2009)

CSR - May 2008, May 2009, May 20103 x Center for Institutional Development - CIRa :„Awards for promotion of the philanthropy in MK“ - Award for contribution to the development of philanthropy;

“Leaders in CSR for 2009” - Award for Leader in CSR in the category ‘integrated CSR’

CSR - February 2008, May 2009, (October 2010!)„ National Award for socially responsible practices (CSR) of the companies in the Republic of Macedonia“, category SMEs


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Additional values /

Competitive advantages for INet

High motivation of employees;

Increased efficiency and better business results;

Better access to capital markets;

Better reputation (image, market perception);

Interest of investors (SIF);

Long term success in business (continued profit

growth)

CG & CSR – BENEFITS


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Thank you!

Nadezda Dimitrovska, COO

INETAtinska 12, p.fah 468

1000 Skopje, Macedonia

+389 2 3090.625

[email protected]

www.inet.com.mk

mailto:[email protected]


CG and CSR Accomplishments and Awards INet–Skopje

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