CG and CSR Accomplishments and Awards INet–Skopje

CG and CSR
Accomplishments and Awards
INet – Skopje
Case Study

Nadezda Dimitrovska
INet – Center of Excellence Executive

8th SEEITA – 7th SEE ICT Forum Meeting & 7th MASIT Open Days Conference
14-15 October 2010, Ohrid www.seeita.org

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

8th SEEITA – 7th SEE ICT Forum Meeting & 7th MASIT Open Days Conference 2

INet - Skopje
One 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 info@inet.com.mk
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


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 Resources
Since 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 primary
activities are in ICT area;

 Global Compact (www.unglobalcompact.org) – INet is among first Macedonian
companies 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


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…


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


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 Lower price of capital
improving CG

Level 1: compatibility with legal Better reputation of the
and regulatory requirements company, its directors and
managers


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 INet
Simplified 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.


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 2008
1 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 2010
3 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

CG & CSR – BENEFITS

 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)


Thank you!

Nadezda Dimitrovska, COO

INET
Atinska 12, p.fah 468
1000 Skopje, Macedonia
+389 2 3090.625

nade@inet.com.mk
www.inet.com.mk


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