Corporate Social Responsibility 2012

R a diss o n B l u I v eri a R educes E l ectricity C o nsu m p ti o n by 2 0 %

Bank Republic: “Each of Us Matters” Read on p. 22

17 December, 2012

see on page 10

Constanta Spends GEL 100,000 on CSR Projects Read on p. 4

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CSR

Georgian website

“Companies Should Understand Relationship Between CSR and Success” The FINANCIAL “One just has to look at the companies that are known for their CSR activities - and you have your proof how companies benefit from it,” said R. Michael Cowgill, President of GAU, Chair of CSR Committee at AmCham and Steering Comm.

Member of Global Compact Georgia. “Others should use them as models.”

“I would encourage each business to better understand its current status regarding CSR

BANK CONSTANTA GOES SOCIALLY RESPONSIBLE

C

onsideration of environmental aspects is crucial in any business development.

Sustainable business development involves the application of sustainability principles to business operations. Sustainability in this sense can mean a vari-

Continued on p. 3

ety of things – ecological sustainability, social sustainability or even sustained economic growth. As such, the sustainable, environmentally friendly business movement is a component of the broader movement towards greater corporate social responsibility.

Continued on p. 3

“CSR Should Increase in Periods of Difficulty,” Sheraton Metechi Palace The FINANCIAL

T

he investment volume of CSR projects implemented by Sheraton Metechi Palace in 2012 amounts to approximately USD 12,000, according to Andreas Heidingsfelder, General Manager of the Sheraton Metechi Palace Ho-

General sponsor:

Sponsors:

and then include a more formal CSR program in its strategic and tactical planning. The companies should use the resources available from the business associations to which they belong to do this.

Sustainability only comes from something being successful. As such, companies should build some measures of performance into their CSR programs to fully understand what is and what is not working. “

“Reducing Environmental Impact is A Sensible Approach to Business That Can Have Many Benefits” The FINANCIAL

http://www.financial.ge

tel. The brand also received the World Travel Award for the “World’s Leading CSR Programme” this year.

The occupancy rate at the Sheraton Metechi Palace Hotel reached more than 80 percent over the whole year, making 2012 the best year yet for the Hotel.

Continued on p. 12

UNDP Names Green Fields as New CSR Trend See on p. 12 in Georgia

Join Us and Share Our Social Responsibility

See on p. 6 Dexus Says It Solved 1/3 of Center Point Group Problem, Another Third Under Way

See on p. 8 Responsible Business, Part of Radisson Brand Philosophy

See on p. 10 BP Invested up to USD 3 Million in CSR in 2012

See on p. 17 CSR to be Included in Georgian Universities’ Tutorial Programmes

See on p. 19 CURRENCIES 1 USD 1 EUR 100 RUB 1 TRY

Dec. 17

Dec. 10

1.6629 2.1762 5.4185 0.9331

1.6642 2.1523 5.3741 0.9294

© 2012 The FINANCIAL. Intelligence business publication written expressly for opinion leaders and top business decision-makers

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Khachapuri Index is exclusively provided to The FINANCIAL by ISET

December 2012

KhachapuriIndex KHACHAPURI INDEX FOR FOREIGN CURRENCY EARNERS

By Eric Livny and Lasha Labadze

T

he cost of cooking one standard Imeretian khachapuri in November 2012 averaged 3.33 GEL, which is about 0.9% higher compared to November 2011 (i.e. year-on-year). The price of khachapuri expressed in USD increased at about the same rate of 0.7%. Yet, it gained a significant 6.7% when valued in Euro: in November 2011, one Euro could be exchanged for 2.25 GEL compared to 2.13 GEL in November 2012. Thus, if we take a simple average of the US dollar and Euro exchange rates, the Kh-Index for foreign currency earners is up in year-on-year terms by about 4%.

ECONOMIC LESSON OF THE WEEK GEORGIA: TOURISTIC DESTINATION OR TRADE CORRIDOR? For more than four years (since November 2008) there has been no downward pressure on the Georgian currency. In fact, at least until June 2012, the Lari has been gaining in real value against the major global currencies. While running large and increasing trade deficits ($4.5bln in the first 10 months of 2012, compared to $3.9 bln in 2011) Georgia was able to meet importers’ demand for foreign currency through a combination of borrowing abroad, direct budget support and grants provided by the international community, foreign direct investment (FDI), a steady flow of remittances from Georgian workers abroad, and last but not least, income from tourism. While FDI levels have never recovered to their pre-August 2008 levels, the latter two sources, remittances and income from tourism, have been particularly important given their size and relative stability over time.

The efforts to develop Georgia as a major touristic destination in recent years seem to have paid off. The number of international arrivals to Georgia has been growing rapidly,

Top five countries by the number of arrivals Turkey Azerbaijan Armenia Russia Iran Other Total

2011 738 085 714 418 699,382 278,458 60,191 331,829 2,822 363

2012 (11 months) 1,402 655 849,021 804,183 475,141 85,175 401,200 4,017 375

% change 90% 19% 15% 71% 42% 21% 42%

International arrivals to Georgia: 2005-2011

reaching 2,822,363 in 2011. In the first 11 months of 2012, the number of visitors exceeded 4mln, which is 58% more than in the same period of 2011.

But how much of this increase in international arrivals represents an actual growth in tourism? While there is no precise data to answer this question, several points are worth emphasizing.

First, Georgia has done a lot to lift restrictions on travel to and through the country. In particular, it has no visa regime with almost 90 nations; citizens of most other countries can be issued visas (and, until recently, also bottles of wine!) at the border.

Still, these measures did little to boost the number of arrivals from further away destinations. To date, 86% of all arrivals are from neighboring countries: Armenia, Azerbaijan, Russia and Turkey.

Second, and related to the above, Georgia remains a rather expensive and hard-to-reach destination. The opening of the Kutaisi airport and the entrance of Ryan Air are a step in the right direction, however, at present most foreign visitors enter Georgia by land.

Third, with the notable exception of Turkey (see below), foreign arrivals are extremely concentrated in the very short period around July and August. This highly pronounced seasonal pattern negatively affects the entire hospitality industry (by reducing incentives to invest in physical capital and skills), strains the environment, and drives a wedge between prices and quality.

Fourth, three countries stand out as far as growth in the number of

foreign arrivals is concerned: Turkey (up 117% in the first 11month of 2012); Russia (up 85%) and Iran (up more than 45%). Georgia’s unilateral move to abolish visas, the opening and modernization of the border crossing point in Kazbegi, and the renewal of flights have all played a role as far as Russia as concerned.

However, Russian tourism remains way below its potential and may double or triple in 2013.

Iran is a very special case: the economic sanctions imposed on Iran by the international community are pushing many Iranians to seek work and study opportunities abroad.

Georgia is one of 37 countries around the world that have no visa regime with Iran, making it an attractive destination for Iranian students, workers and business people.

Finally, what about Turkey? The more than doubling in foreign arrivals from Turkey apparently has little to do with tourism and everything to do with Georgia’s growing importance as an east-west transportation corridor. International sanctions are beginning to bear on Iran, and more and more of Azerbaijani and even Iranian trade is being diverted from the Iranian ports to Turkey and Georgia. This tendency is reflected, for instance, in the increasing volumes of imports from Turkey to Azerbaijan (up 70% in 2011). Thus, many of the Azeri, Turkish and Iranian “tourists” are in fact truck drivers who transit through Georgia.

According to a recent survey carried out by Georgian National Tourism Agency (GNTA) from April 2011 until May 2012, 27% of all international visitors don’t spend a single

night in Georgia; the median visitor spends less than 2 days, which is the maximum allowed transit period; 78% are repeat visitors.

In fact, the data on the number of number of trucks crossing Georgia’s borders suggest that many Russian and Armenian visitors are also drivers. Of Georgia’s ten border checkpoints, seven account for more than 99% of border crossings by trucks (based on 2010-12 monthly data).

While the number of trucks grew at almost all checkpoints in 2012 (compared to the same period of 2011), the largest increases are related to the north-south transport corridor from Russia (Kazbegi) to Armenia (Ninotsminda). These two crossings saw increases in truck traffic of 124% and 167%, respectively. Very large increases were also recorded at Sarpi and Vale border crossings to/from Turkey (31 and 44%, respectively), and at the border with Azerbaijan (up 54% at Tsodna and 17% at Tsiteli Khidi).

Some of the increase in transit trade should also be attributed to Georgia’s efforts to modernize its border checkpoints, including improved infrastructure, and simplified customs procedures. A great case in point is Sarpi at the Turkish border near Batumi. Opened in December 2011, the new facility is striking in both its architectural design and efficiency.

What is the benefit to Georgia from serving as a trade corridor to Azerbaijan and Armenia? The increased tear and wear to Georgian roads is partially compensated for by the fees freight companies are charged at the Georgian border: 200GEL per truck and 0.5GEL for each kilo beyond a certain threshold. This fee was introduced at the very end of 2010, generating revenues of about 20mln GEL in both 2011 and the first 11 months of 2012.

THE ISET KHACHAPURI INDEX The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). ISET-PI designed a simple and robust way of tracking inflation and the differences in the cost of living across Georgia’s major cities. Unlike traditional “consumer baskets” used for monitoring price inflation, our “basket” includes only those ingredients that are needed to cook one Imeretian khachapuri (cheese, butter, flour, yeast, eggs, and milk) and energy inputs (gas and electricity). We conduct a monthly survey of the major markets in Tbilisi, Kutaisi, Batumi and Telavi to measure the differences in the cost of living across Georgia and to track the monthly fluctuations in the prices of all relevant ingredients.

Foreign arrivals to Georgia: 2011 and the first 11 months of 2012

Mailing address: 17 mtskheta Str. Tbilisi, Georgia OFFICE # 4 PHONE: (+995 32) 2 252 275 fax: (+95 32) 2 252 276 E-mail: info@finchannel.com on the web: www.financial.ge daily news: www.finchannel.com

Intelligence Group ltd. 2012

Sarpi Turkish-Georgian border checkpoint before and after remodeling. Above: lorries waiting to cross on the Turkish side of the border, October 2008. Right: vehicles whizzing through, August 2012

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socially responsible companies “Reducing Environmental Impact is A Sensible Approach to Business That Can Have Many Benefits”

finchannel.com | 17 December, 2012

The FINANCIAL

By Nana Mghebrishvili

C

onsideration of e n vi ro n m e n t a l aspects is crucial in any business development.

Sustainable business development involves the application of sustainability principles to business operations. Sustainability in this sense can mean a variety of things – ecological sustainability, social sustainability or even sustained economic growth. As such, the sustainable, environmentally friendly business movement is a component of the broader movement towards greater corporate social responsibility. The practice of businesses supporting environmental projects is not very common in Georgia, Khatuna Gogaladze, newly-appointed Minister of Environment Protection of Georgia, told The FINANCIAL. Ms. Gogaladze was the ENVSEC National Coordinator in Georgia (Environment and Security Initiative administered by OSCE). Besides this position, she was also the Manager of the Aarhus Centre Georgia (OSCE Project). Ms. Gogaladze has worked at various positions at the Ministry of Environment Protection of Georgia.

She has experience in the non-governmental sector as a project coordinator and as an independent expert in projects supported by different international organizations.

“The general situation is not satisfying. There are many cases when environmental aspects are not considered properly by the private sector,”. We encour-

Khatuna Gogaladze, newly-appointed Minister of Environment Protection of Georgia

age business to reduce their environmental impact. We don’t want to be a fining organization. Our goal is to ensure that the Georgian population has a clean environment.

Business should have more long-term targets and not think only about short-term prospects. This is essential because some activities can otherwise bring about damage to the environment in the long run. Reducing environmental impact is a sensible

approach to business that can have many benefits.”

Q. How would you assess companies’ activities in terms of environmental protection?

A. Currently, the practice of supporting environmental projects by the private sector is not widespread in Georgia.

Still, some good examples exist. A number of studies have proved that strict environmental regulations do not put a significant burden over

the businesses. Developed countries in the world have found ways to balance business development and environmental protection. We should apply international experience in this regard and promote sustainable development practices.

Q. How does the legislation fine companies who violate environmental protection laws?

A. Certain types of activities, which are defined by

the law, need Environmental Impact Permit. It is obligatory for the company to meet the conditions of the permit.

Companies which are not in compliance with environmental requirements are fined according to national legislation. The amount of the fine depends on the type of the offence and damage imposed to the environment.

Companies are often being fined for violating laws on environmental protection or/ and relevant permits. There are also many complaints being made to the Ministry of Environment Protection of Georgia by residents about companies that are having a damaging effect on nature and society.

Q. Does the legislation cover incentives for companies which protect all environmental protection laws?

A. Issues of encouragement are less regulated by the law, but we have already started working on this aspect. It is still at the discussion stage.

We plan to start with development of a list of “green companies” which apply environmentally sound technologies and are in line with required environmental standards. This list will be placed on the Ministry’s web-site and updated regularly. This may serve as a good message for private sector and encourage their environmentally friendly behaviour. Promotion of CSR standards is also very important for healthy cooperation of environment and business sectors.

Q. What are the main problems in terms of environmental protection in Georgia?

A. It’s difficult to single out one specific problem, as all of them are equally preva-

lent and interlinked. There are problems in every direction – waste management, water, air etc. All of them are connected to each other and require complex solutions.

In light of climate change related processes, unsustainable forestry practices, illegal cutting, a number of infrastructural projects without an adequate planning etc. result in intensified disasters and people suffer from that.

Therefore comprehensive approach should be applied and set of measures developed to address those problems.

Q. Which are the cleanest towns in Georgia and which the most polluted?

A. I actually can’t name a single clean town in Georgia. Each city has a different source of pollution. For example, Tbilisi is polluted by vehicle emissions, Zestaponi is contaminated by manganese dioxide, Batumi is not clean because of the huge constructions going on there, etc. Waste is a common problem througout Georgia. So, each city has a long way to go to be called a “clean city”.

Efforts of all stakeholders should be joined to improve the situation.

Q. Do you consider creating bicycle lanes a viable way to reduce the amount of vehicle emissions in Georgia?

A. Bicycles are a very environmentally friendly means of transportation. This is a well-established practice in Europe. Due to its uneven landscapes, exept for its suburbs, Tbilisi is not ideal for bike lanes. Lanes have already been integrated in urban infrastructure in Batumi and Kutaisi. o the process of creating bike lanes has already started in the country.

“Companies Should Understand Relationship Between CSR and Success” R. Michael Cowgill ‘Good corporate governance is not just preferred, but essential for a company's success’ The FINANCIAL

By Nana Mghebrishvili “One just has to look at the companies that are known for their CSR activities - and you have your proof how companies benefit from it,” said R. Michael Cowgill, President of GAU, Chair of CSR Committee at AmCham and Steering Comm. Member of Global Compact Georgia. “Others should use them as models.”

“I would encourage each business to better understand

its current status regarding CSR and then include a more formal CSR program in its strategic and tactical planning. The companies should use the resources available from the business associations to which they belong to do this.

Sustainability only comes from something being successful. As such, companies should build some measures of performance into their CSR programs to fully understand what is and what is not working. “ “GAU was one of the first universities to promote CSR as a corporate strategy and has the financial success that comes with a growth in student enrollment and students being hired,” he added.

Q. Do you feel that CSR practices are improving in Georgia ?

A. In general, yes. However, the business community cannot avoid being affected or distracted by changes, political or otherwise. Unfortunately in such times of

R. Michael Cowgill, President of GAU

change (and we seem to undergo many changes), CSR activities seem to diminish.

But I fully hope and expect to see more attention to CSR in 2013.

Q. What kind of CSR activities can be the most stable and long-term in Georgia?

A. Undoubtedly those that either help the bottom line profitability and/or enhance the brand recognition of the organization. Of course these will be specific to each organization. At GAU, such programs would include those that highlight the quality and applicability of its educational programs to the job market and the attention to Georgia's youth. As an example, GAU has a clinical law program providing free legal advice to socially disadvantaged persons by law school students who are mentored by law school professors.

Q. In your point of view, why is interest toward CSR low in Georgian companies?

A. I believe it is a lack of understanding by management of the relationship between CSR and the company's success - however that success is defined.

Q. How can companies in Georgia benefit from social responsibility projects?

A. I'm about to begin my 15th year in Georgia and have seen many changes. Some of us have even discussed lately that there seems to be a trend backwards to when the general public perceived businesses and especially their owners as greedy and only out for making money. CSR activities can have a significant impact on how the public perceives business and no better time than right now to make that happen.

Q. How would you estimate generally company's’ governance in Georgia? What impact do you think corporate Continued on p. 14

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Constanta Spends GEL 100,000 on CSR Projects The FINANCIAL

By Mariam Papidze

B

ank Constanta spent GEL 100,000 on CSR projects this year. Art-Gene and Meet Georgia are the main projects that were implemented within the framework of its Corporate Social Responsibility (CSR) in 2012. Bank Constanta intends to continue supporting Georgian art and culture in 2013.

“Bank Constanta prefers to implement those projects that are in demand among our customers,” Nana Chkhikvadze, CSR Specialist at Bank Constanta, told The FINANCIAL. “We have been mostly oriented on folk art and its revival. This is not the only way that Bank Constanta supports Georgian culture however. From our Facebook page customers are able to get information about all the regions of Georgia and the local traditions there,” she added.

“Bank Constanta has been the partner of the Art Gene festival for three years already. Within the framework of the festival lots of interesting art is displayed. The young generation is involved in this festival as well. It is a very important event because the purpose of the festival is to maintain and introduce Georgian culture and traditions to the new generation and society at the same time.”

“Art Gene has been a success as this is the only folk festival in Georgia and its goal coincides with the Bank’s strategy to support ethnographic culture in Georgia. It is important that the young generation, who are in general less interested in folk music, attends the festival; this is the segment where we need to promote ethnographic culture the most.”

“Another project which I want to highlight is Meet Georgia. This project envisions studio recordings of amazing representatives of Georgian folklore. The recording will be sold through the internet. The project is being implemented together with the folk ensemble Shavnabada. This is the very first large-scale precedent where these people are given an opportunity to promote their work on international markets online. Within the frames of the project, Bank Constanta opened its new type of saving account ‘Inbox’ for them.”

Q. What are the other CSR projects that Constanta is proud of?

Nana Chkhikvadze, CSR Specialist at Bank Constanta

A. Our social responsibility is to bring financial services to where there are none at all.

Our choice is to financially help those people who have low incomes. At the moment we are the most active microfinancing organization which operates in the regions. Other banks have not had the possibility to serve this segment.

Since its foundation this organization has felt its social mission in this sector. Our activities in the direction of agriculture are equally profitable for the company, for society and for the environment.

As CSR was always a very important direction for Bank

Constanta we decided to create a separate department for it this year. To show the strong social performance management is also very important for our international partners and investors.

Q. What are the current standards in CSR? A. The Social Performance Task Force sorted out six main standards in CSR this year, which we are going to follow. Meeting the standards signifies that an institution has strong social performance management (SPM) practices. To achieve this, institutions must define and monitor social goals; ensure board, management,

and employee commitment to social goals; treat clients responsibly; design products, services, delivery models and channels that meet clients’ needs and preferences; treat employees responsibly; and balance financial and social performance.

The original purpose of microfinance was to improve client welfare, but for the last two decades many institutions have focused more on financial sustainability than on the needs of clients.

Many of these institutions are driven by financial outcomes because they only manage financial performance. Institutions with a social purpose

must also manage their social performance.

The first standard is about the monitoring of social goals. It is an important standard as a company may set a goal and prepare all the projects for implementation, but has not done anything in this regard. Monitoring will always force a company to follow the schedule and fulfil all the plans it had. If we say that we are bringing financial services where there are none at all, we should do monitoring about how their incomes are increasing, whether their income is spent on improvement of their living standards or not, we are really operating

in those areas where there are no other institutions. This social mission is reflected in the Bank’s strategy.

We are going to explain to all the employees of Bank Constanta that the second standard about management commitment to social goals is really important. Otherwise a bank cannot achieve those goals which it has set within the framework of CSR. Without treating clients responsibly it is impossible for a bank to be able to run successfully. I will give you a simple example: a bank should not give a loan to a customer if they will not be able to pay it back; so as not to mislead them we should give them all the information about their payments in detail.

If a company does not care about its employees then it is impossible for the employees to care about the company.

Within the framework of CSR, Bank Constanta is creating a satisfactory work environment for its employees.

We always care about employee motivation and their encouragement.

Banks should create products which will be oriented on the customer. Banks should provide new products in such a way that the customers understand everything clearly.

The products should bring profit to the Bank but should not incur customers’ losses.

Out of these standards some of them are already being implemented at Bank Constanta. We have made priorities about which standard should be the first to be implemented.

Relations with our employees and customers are the main priorities at the moment for Bank Constanta. There is a customers’ complaint committee at Bank Constanta. We are studying their complaints and then trying to avoid them in the future.

Q. How much do CSR activities help your company to succeed?

A. CSR is not only about moral obligations. It impacts positively on business. This is a successful step that gives a good image to the company in the eyes of the world and in the country where the company operates. CSR causes demand for a product, helps the company to maintain its clients, to attract human resources. It also helps the company to improve relations with the Government. All these facts improve the business environment in general.

It also increases the number of the company’s clients and improves their welfare.

Operating in the agro direction is considered risky by other banks. But we have enough experience of working in this field to create suitable products for our customers. Products that are created in the agro direction are very useful for them. We want to increase our customers’ incomes and improve their living standards.

In this case benefits for Bank Constanta could be positive image, customers’ goodwill, their confidence and loyalty. It is difficult to calculate all of these benefits in numbers, but the satisfied customer is the main goal to achieve.

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Join Us and Share Our Social Responsibility

A

ll of us have many responsibilities. Taking care of the people we know and establishing relations with new ones helps make a healthy and thriving society.

Being connected makes us part of one large family. Everything Geocell does is based on this idea of connectivity and social responsibility. Since the day it opened, Geocell has simultaneously worked to develop telecommunications and support and improve public welfare.

The company’s most important goals were set from the beginning - to have close ties with customers, to share common goals and to take into consideration what a customer may need tomorrow.

We want to demonstrate to society by example how a company should take care of its customers - by actively taking part in the country’s social and economic development.

Geocell’s social projects are directed towards the preservation of national and traditional values, the support of cultural events, the promotion of science and education, and the ability for all members of society to be actively involved.

Writer Natia Gogolashvili and photographer Ana Goguadze bring the life of a person with disabilities to the attention of many with Geocell’s assistance. Gogolashvili describes the everyday life of those with disabilities including the amazing things they are capable of in a column written for Geocell’s corporate newspaper. Goguadze uses the camera lens from the perspective of a person in a wheelchair. The message Geocell wants to send is that society should see beyond their own reality, and find out what humans are really capable of achieving.

But it is not only the disabled who need help. With the sum received from the auction of the golden numbers, Geocell helped establish a social adaptation centre for children whose parents are unable to care for them, along with assistance to the charity house Catharsis.

And in January 2003, Geocell took on a large scale project to assist the April 2002 earthquake victims. Owing to the generosity of the company’s subscribers and employees, several thousand GEL was collected, resulting in apartments for four families.

Evening the Playing Supporting Entrepreneurs Field of Life The world offers numerous opportunities and these opportunities should be open to everyone. We believe that there should be no barriers for a person who wants to develop something new beyond what has already been done. Geocell breaks down these barriers by supporting projects for people with disabilities. These projects focus on creating equal conditions so that all people are free to communicate, study, work and develop.

Geocell’s project, “We Hear You” has, since 2006, offered a lower tariff for those persons who are hard-of-hearing, and have even employed some of them within the company.

The company’s social projects envisage not only projects for the whole of society, but also to help individuals achieve their goals. By financing Lili Murtazashvili’s one idea, a model of Georgian culture, a traditional Tushetian rug was preserved. Many years ago, seven women led by Murtazashvili received financing from Geocell’s Osman Turan for their first enterprise. Today Tushetian rugs, as pieces of art, are being produced for Georgian and foreign visitors.

Geocell’s responsibility is to perform its duties on a daily basis, to take care of its customers, to be equally oriented on society and the individual. Join us and share our social responsibility.

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Advertiser: Geocell. Contact FINANCIAL Ad Dep at marketing@finchannel.com

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Dexus Says It Solved 1/3 of Center Point Group Problem, Another Third Under Way The FINANCIAL

By Mariam Papidze

“Carrying out the rehabilitation of Center Point, coming to the aid of 6,200 families is the main social responsibility that Dexus has,” Irakli Kilauridze, Group Founder and Distressed AM Business CEO, told The FINANCIAL.

K

ilauridze said that the turnaround of Center Point Group, the largest property developer of the Georgian pre-crises real estate market, is one of the major projects of Dexus.

Dexus is a business group focused on distressed asset management, property development, construction and property management. Dexus offers its corporate customers a proactive and creative approach in restructuring loan and investment obligations. The company took Center Point Group and related companies under its management with the aim of the Group’s recovery in 2010.

Prior to being managed by Dexus, construction of all development projects were put on hold and liabilities towards approximately 6,200 customers remained unfulfilled. The crisis period for the Center Point Group began in 2008 and reached its peak by 2010.

Dexus announced the threeyear Center Point Group turnaround plan on 17 December, 2010, according to which the company will be led out of crisis by the end of 2013. This turnaround project is widely considered to be one of the greatest challenges in Georgia’s business environment.

Though there are still a number of customers who complain that Dexus has acted against the interests of its customers and raised the price of the purchased property.

In response Kilauridze says that only 5% of customers are

not satisfied with the agreed terms.

“Dexus promised 6,200 affected families that it would help them find a way out of their difficult situations. Because of this, we feel a huge responsibility towards these families,” said Irakli Kilauridze, Group Founder. “These people did not think that Center Point would face bankruptcy. This attitude is not right in a free market economy,” he added.

After taking Center Point Group (CPG) under its management Dexus renewed the construction of 23 buildings, 8 of which have already been completed including the massive development - Magnolia, Batumi (58k m2). As a result, up to 2,200 apartments and commercial units were delivered to CPG customers.

By completing the ongoing construction of 15 buildings a further 1,200 property units will be delivered. Dexus has already raised and spent approximately GEL 25 million on CPG development projects.

Dexus aims to accomplish the step-by-step renewal and completion of all suspended projects during the years 2012-2013 according to the turnaround plan of the Center Point Group. In total, Dexus will invest up to GEL 95 million in the project.

Today Dexus manages the assets of approximately 1/3 of the under-construction residential property market in Georgia according to the latest market research. As for Center Point, it owned assets of approximately USD 100 million, including 25 development projects and 17 land units in the land bank.

“Center Point had a loan from three banks consisting of EUR 7.7 million in total. 14 projets, consisting of 55 buildings, 6,200 aggrieved families, about 100 cases that have gone to court, no financial resources, five mortgaged projects, 10 pieces of land taken away by the bank plus a very bad emotional background from the clients’ side - this is the legacy that Dexus inherited from Center Point,” said Kilauridze.

The flat prices per sq.m of the buildings built by Dexus are as follows: in Didi Digomi - USD 500, in Digomi and Isani - USD 600, in Vake - USD 1,200, in Saburtalo USD 700-900.

Irakli Kilauridze, Group Founder and Distressed AM Business CEO

Q. In your opinion, what caused Center Point Group’s financial problems?

A. It is difficult to single out one exact reason for why Center Point ended up in such a critical state. It was a combination of many things - the Russian-Georgian war, economic crises etc. The company was not properly managed, in my opinion. If Center Point had had a stronger and more principled team the end result would not have been so dire, because actually almost the whole sector was going through similar problems at the time. Other companies were also in complicated situations along with Center Point. They, however, had taken on too many responsibilities for too many people and could not fulfill all the plans at the same time. People gave money to the company in advance. They were promised that the flats would be ready for living in 2 or 3 years but 7 years have passed since then and none of the building have been built yet. This was the

sector standard at that time; a private company can get away with almost anything, so long as it is not expressly prohibited. The fact is that Center Point thought that it would be able to meet its obligations.

Q. Despite the myriad of problems at CPG you still made the decision to manage the company.

What benefits were in it for you?

A. We had a financial interest. After the rehabilitation of Center Point we will get a bonus. We are then going to invest this amount of money in our own projects. We will continue similar activities for other construction companies that need rehabilitation. At the moment negotiations are already underway with five companies. We have already signed a contract with one of the companies on which constructions have started. I am talking about the Valencia building company, project: Isani Savane. The constructions will be finished by the end of 2013. Besides rehabilitation activities, we have a

construction company as well as a development and marketing company. We are also working on establishing a real estate fund.

Q. How has the company managed to come back from these problems?

A. Generally speaking, the first 100 days are the most important for a new management. If the management does not achieve the desired results within this period of time, it means that its work is more or less a failure. In Dexus’ case, we learnt of all the problems that Center Point had and developed a rehabilitation plan. We sorted out three of the most problematic projects which needed a special work plan. 3,000 clients who had paid in full turned out to be in very difficult situations, because the rest of the clients had only paid half of the money. This may not be a decisive reason for the suspension of constructions, but it was certainly one of the main reasons in this case.

We have calculated what the deficit for each project was; we have calculated entrance money, unsold stocks and confronted the expenditures at the same time, which is mainly related to construction costs. We have explained to the families that the company had enough financial resources to continue the constructions but not enough to pay the tax. When a construction company transfers the possession of a flat to the inhabitant, this operation is rated by value added tax. If a company does not pay this tax it will be distrained.

When I say that the company had enough financial resources to continue with the constructions I mean that these resources were received from those clients who had only paid partly. We asked these inhabitants to pay in full; after this we sold stocks, from which we got money and then we spent this money on completing the constructions.

We realized that there was no money for taxes after this. So we offered the chance for the families to pay about 20 percent of the value additionally.

In such a way they could become the owners of their flats.

Otherwise, we could not give possession of the flats to them.

Q. But according to the original contract signed with CPG, the families were not obliged to pay

for the tax and the flats were in their ownership.

So how valid was your offer to the families?

A. Of course, this point was not covered in the previous contract that the families had signed with Center Point. According to that contract Center Point had to pay for the budget, but because of the financial problems, we have had to offer the families to pay on their own. At first glance, I admit that our offer is not helpful for the inhabitants if we compare it to the contract signed with Center Point. But, if we take all the facts into consideration and realize all the problems that Center Point has, then everybody should be able to realize that our offer is truly for the best interest of customers given the actual situation. We are offering the families to cover this deficit, but we guarantee them that the building will be built and they will not lose the money that they had paid at the beginning of the constructions.

If we weigh up what the choice was for the inhabitants, we will see that our offer is profitable given current situation. Let’s say that the families paid 100,000 per each flat, Center Point went into bankruptcy and the projects were sold at auction. In this case, first of all it would be difficult to find a buyer and then it would be impossible to sell the flat at its initial price. So the inhabitant would get 20 percent in best case and lose 80 percent. What we offer is to pay additionally 20 percent and have the apartment finished. With our scenario families lose only 20 percent versus 80 percent. Another choice is to sell the flats together for 120,000. 20,000 would be left with us to be used in construction and 100,000 would be given to the families.

Nowadays as a result of our offer we have finished construction for 1/3 of CPG clients and construction for another 1/3 is ongoing. We plan to commence construction for the remaining 1/3 next year.

If Rcheulishvili continues their contract with us for 2 more years, then we will finish all the projects by the end of 2015. Once the contract expires it is up to Rcheulishvili whether they want to continue Center Point’s activities or quit the company, or just leave it under our management.

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Responsible Business, Part of Radisson Brand Philosophy The FINANCIAL

By Tako Khelaia

S

eptember is Responsible Business Action month at Radisson Blu Hotel Batumi. This is when the hotel management makes an extra effort to get everyone involved in its Responsible Business programme. It also does its best not to discourage people from doing such activities throughout the year if they so wish.

“Radisson Blu Hotel in Batumi has been actively taking part in caring about safety, local society and the environment since its opening and will continue in the same vein as Responsible Business is a part of the brand’s philosophy,” said Nina Grigolia, Director of Sales and Marketing.

“Responsible Business is a part of the brand culture of Rezidor Hotel Group. Our programme was introduced in 2001 in response to increasing demand from our guests, corporate clients, employees and owners. An environmental programme has however been in place since the mid 1990s.”

“The Rezidor Hotel Group is committed to maintaining a high standard of business ethics, honesty and integrity in line with its Responsible Busi-

ness programme including social, ethical and environmental responsibility. Thus we believe that we are responsible not only for operating our hotel successfully, but also for the world at large, and we have to constantly take care of our planet,” Nina said.

“Within the Responsible Business programme we are dedicated to three main areas of responsibility: Taking responsibility for the health and safety of employees and customers, Respecting social and ethical issues in the company as well as in the community, and, Reducing our negative impact on the environment.”

“We take part in the wellbeing of the community around us by visiting orphanages, delivering seasonal gifts, inviting children to our premises for different events, conducting fire drill, hotel evacuation and first aid trainings, organizing blood donation events, cleaning beaches, parks, actively taking part in the educational process of students of the hospitality business and sharing our experience with them, participating in the “Think Planet” programme of energy saving, joining Earth Hour and much more.”

“We don’t limit ourselves in implementing different initiatives, as even a little contribution can give a priceless out-

Nina Grigolia, Director of Sales and Marketing

come and this positive impact keeps us motivated and eager to continue our activities.”

“Radisson Blu Hotel is a part of Rezidor Group which is

known for its ethical and moral approach towards employees.

Our strategy is to maintain a healthy and fair environment and give everyone equal possi-

bilities of development in order to advance in their careers. Our basic corporate trainings are: “New Hire Orientation”, “Yes I Can” and of course “Responsible Business”, as this is an important part of our corporate culture”.

According to Grigolia the economic downturn does not have much of an effect on the hotel’s activities, as Responsible Business is a part of their corporate culture. “It is the way we think, act and manage our business and therefore we are not able to change our approach towards the environment. And I can surely say that sometimes the least costly initiative gives the most joy to the people that need it most, people which are members of the society we live in,” she added.

“In regards to energy efficiency, we do our utmost to continuously improve in the areas of energy, water, chemicals, reducing consumption and waste generation in order to lessen our negative impact on the environment. With our daily activities we are reducing dependence on fossil fuels and becoming more energy efficient in all areas of operation without sacrificing the experiences of our guests,” Nina said.

“We conserve water whenever possible without compromising on guest comfort. As a result of our efficient operation

we have gone through Green Key Eco Label certification, which is an international ecological programme created specially for the leisure industry.

Hotels have to satisfy several criteria which lead to reducing the negative impact on the environment. I can proudly state that for the present Radisson is the only certified hotel brand in Georgia which has been awarded a Green Key.” Radisson Batumi Hotel has a Responsible Business Committee which consists of colleagues from different departments.

“The Responsible Business Coordinator leads the committee.

Every month we are organizing Responsible meetings where we discuss all the upcoming projects and initiatives that are generated by the participants.”

“Responsible Business highly contributes to the overall company image and reputation locally and on an international level. Our abovementioned Green Key certificate is a very important point for our potential guests, which distinguishes us from competitors. At the end of the day we are reducing our negative impact on our planet, contributing to community members in need and ensuring we have happy guests staying in a caring environment. I think this is a perfect combination,” Grigolia Nina said.

Radisson Blu Iveria Reduces Electricity Consumption by 20% The FINANCIAL

By Tako Khelaia “This year Radisson Blu Iveria Hotel managed to reduce its electricity consumption by 20% compared to last year. The Hotel plans to continue this trend over the next few years. Responsible business is one of the main parts of the Hotel’s corporate strategy, I am very proud to say that our hotel was elected as Regional Responsible Business Champion which means that we are leading hotels not only in Georgia but also in Turkey and Kazakhstan ” said Ekaterine Lomidze, HR Manager of Radisson Blu Iveria. The Hotel received the eco label Green Key in August this year.

“Eco Label indicates that Hotel’s impact on environment is minimal. We are required to control our electricity, water and gas consumption; use ecologically clean as well as local products and chemicals which does not contain harmful substances” Lomidze said.

“Rezidor Group has a very ambitious plan - the programme “Think Planet”. Rezidor’s aim is to reduce the use of electricity in all of its hotels by 25% by 2015. We have managed to decrease use of electricity by 39% this year. We started the programme in May, so we have had really quite a good result all things considered.

Within the frames of Think Planet we will replace most of light bulbs in the Hotel. Rezidor Group has signed an agreement with Philips, which most likely will be supplying us with energy efficient bulbs. We have already started changing the light bulbs in guest rooms,” Lo-

midze said.

“Different scenarios were created by our technical department in order to regulate temperature at the Hotel. We decreased the water pressure and installed sensors in the back of the house areas. While cleaning the rooms our housekeepers are closing the curtains which helps us to saves warmth in winter and doesn’t let in the heat during summer,” Lomidze stated.

“We have special green recycle bins for paper. Unfortunately we haven’t found any companies in Georgia which recycle plastic bottles or glass.

We hope that this problem will be solved soon in Georgia.” Lomidze said.

According to Lomidze Radisson employees periodically present lectures on environment care and energy saving to children at different schools.

“We have special signs in the bathrooms which inform guests about our policy regarding the towels. Our guests have the choice of whether to change their towels every day or keep them. At the moment we are working on offering people the choice of changing their bed linen every day or keeping it.

The majority of our guests take part in the CSR activities,” Lomidze said.

“We have a special group at the Hotel working on the direction of CSR. The group is very active and are currently working on creating the CSR plan for 2013,” Lomidze said.

“In our corporate sales presentations we use ethical, environmental and social responsibility. The social responsibility programme supports the company a great deal. Unfortunately there is still a lack of

information about CSR among Georgian companies,” Lomidze said.

“Employees play the biggest part in the development of CSR. Companies should realize that without staff business can’t be developed properly. Employers should create a healthy working environment for them.

There should be much information about how big an impact we might have on the environment. In most cases people do something without knowing how harmful it actually is. For

example the use of polyethylene harms the environment very much. There should be more information available in schools on the subject as well,” Lomidze said.

“CSR is one of the main philosophies of our hotel. We have a special, CSR business programme, implemented at Rezidor Group since the year 2001. The programme has been very successful since its inception. It’s an award winning programme. We are working in two directions, social and ethi-

cal responsibility then environmental responsibility. In Social and Ethical Responsibility we mean responsibility towards our guests, employees and society,” Lomidze said.

“We have a special code of Business Ethics. It’s how we represent business in an ethical way. Everybody in our Company fallows it. All of our employees are very aware of this core value, hence we treat them correspondingly. We respect Law, never discriminate anybody; We act fairly, we are open and

transparent and we take care of earth. “Lomidze said.

“We have created quite a comfortable environment for disabled people at the Hotel.

The Hotel offers special rooms for them. Our aim is to return to society what it gives us.

Whenever our company brand enters a country, the local society is our number one priority.

We always try to support society,” Lomidze said.

According to Lomidze, in terms of CSR, Radisson Blu Iveria is involved in different charity actions during the year.

Company employees constantly visit schools and teach children how important it is to care for the environment.

“This year we are supporting two programmes. Both of them are set by the American Friends of Georgia Organization. We have constructed a Ginger Bread House in the lobby of the Hotel. Last Saturday and Sunday anyone could visit the hotel and bring their children to decorate the Ginger Bread House as long as they left toys for charity. When it’s over we will present the collected toys to children of a kindergarten in the Varketili district who are from very poor and internally displaced families,” Lomidze said.

“From Monday to Friday we hosted pupils from different schools who brought in many useful products for the elderly.

The programme is called Hospice and Nursing Care for the Most Needed Elderly in Georgia. Children brought some special items including cotton wool, soup, shampoo and many other things that elderly people need most. This campaign has been ongoing since 2009,” Lomidze said.

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“CSR Should Increase in Periods of Difficulty,” Sheraton Metechi Palace The FINANCIAL

By Nana Mghebrishvili

T

he investment volume of CSR projects implemented

by Sheraton Metechi Palace in 2012 amounts to approximately USD 12,000, according to Andreas Heidingsfelder, General Manager of the Sheraton Metechi Palace Hotel. The brand also received the World Travel Award for the “World’s Leading CSR Programme” this year.

The occupancy rate at the Sheraton Metechi Palace Hotel reached more than 80 percent over the whole year, making 2012 the best year yet for the Hotel.

Sheraton accommodates more than 25,000 customers per year. It hosts up to 110,000 visitors a year if taking into account people that come to the Hotel for seminars, conferences, dining and parties.

The Hotel currently has 151 full-time and 30 non-permanent, on-call employees.

Q. Please could you tell us what the Hotel has carried out in terms of CSR activities over the last year?

A. We held a social project for homeless and vulnerable young people together with “G & G Production”. In the first stage the beneficiaries were introduced to the Hotel, the house rules, and were given master classes in choosing their professions. In the second stage of the project three beneficiaries started training in different departments including Food & Beverage and Engendering.

In 2012 we supported the international “walk to school month” to raise awareness amongst citizens and our associates in supporting a safe and healthy walking initiative.

We joined the worldwide campaign “Clean up the World! Clean Up Georgia!”

Clean Up actions in the regions were carried out in each administrative district centre with the support of local governments and CSOs. Sheraton was the first company in Georgia to join the WWF Global Project “Earth Hour” in Georgia, which it did in 2009. We are happy that many companies have now started joining this wonderful green initiative which sends out a powerful message about saving the planet on 31 March every year.

The Sheraton team joined the Green Office of local nonprofit organization CENN by handing thousands of recycled papers to them to support green initiatives and to protect our environment.

Waste is separated at the Hotel to raise the environmental awareness of our employees. Glass waste is picked up on a biweekly basis for recycling.

We participated in “Race for the Cure” this summer.

Sheraton also hosted 250 elderly people for Christmas dinner.

Every guest who checks out of the Hotel is automatically charged an extra USD 1 and asked if they agree for this to go as a donation to projects

by UNICEF, a partner of Starwood Hotels & Resorts worldwide.

Finally, the project of the year was to build a 6 metre high “Gingerbread house”

Andreas Heidingsfelder, General Manager of the Sheraton Metechi Palace Hotel

“Starwood Hotels has a legacy of caring for the communities in which we operate, so Global Citizenship comes naturally to us,” said Andreas Heidingsfelder. “Taking care of our environment and our communities is a priority for Starwood.

out of recycled paper (papermâché work). For this we collected paper from the entire hotel, all hotel employees were involved in the paper collecting, tearing, brick making and house building process. The most exciting element of the project was that all of the employees that took part were doing it on a willing, voluntary basis, showing true CSR spirit!

Q. How long do your CSR projects last?

A. They last for different amounts of time. Starwood Hotels & Resorts has plenty of CSR Projects, and as soon as a hotel starts operating as part of the Starwood family, it automatically implements different CSR projects based on the area’s local customs, traditions and market. Some projects last for just one one

term but most of the projects we implement are permanent and ongoing.

Q. Do you have a determined annual budget for CSR activities?

A. No, we don’t. We believe that money does not govern CSR; it’s about social responsiveness, the fact that our associates volunteer for most of our CSR projects; the fact that the volume of companies taking part in Earth Hour day is growing; the fact that people globally are thinking about their personal responsibility - that is what’s more important. We are sending a powerful message to people to make them realise that their individual actions can change the world. Direct cash distribution helps every project in the short term and underlines the action.

Q. Do you have a separate CSR department and manager at your company in charge of CSR activities?

A. Yes, we do. We have a Sustainability Champion and Green Council Chairman.

They meet regularly and inform all associates of developments during general staff meetings.

Q. Social responsibility means that the company takes responsibility for business transparency.

How often do you publicize your financial accounts?

A. Financial accounts are broadcast and issued quarterly through the CEO. Q. How many employees do you have at Sheraton Metechi Palace?

What is your company’s

approach towards the management of human resources?

A. We are employing 180 associates at the moment.

We believe that our associates are the main assets of our company. We pay very high attention to motivating our associates. Starwood Hotels and Resorts believe that motivated and engaged staff are key to success in the hospitality business. We have special reward and recognition programmes such as employee of the month and year, smile of the month and year, thankyou certificates, staff incentive programmes and promotion of employees internally in the Hotel as well as in the company.

Departmental and brandtrainings are provided in each department. Every associate

has the possibility for cross trainings in other departments. Associates are given opportunities to experience and share their knowledge in sister hotels.

Q. Please give us your view about the use of water and gas at the Hotel?

A. We have an external auditor who gives us consultations on how to save energy.

We are currently working on a project called “30/20 by 20 (Energy & Water) Maximum Commitment to Minimal Impact”. 30/20 by 20 is our promise to accomplish a 30% reduction in energy usage and a 20% reduction in water usage, achieved by the latest by 2020 (compared to 2008).

Sheraton Metechi Palace organized a Green Council, which is permanently working on new projects offered by Starwood Hotels through the company’s sustainability resource centre where we share the best practices for safety or the projects invented and implemented by us.

Q. Due to the global economic downturn there is a danger that CEOs faced with the need to cut costs will begin scaling down CSR programmes, commitments to environmental sustainability and healthier, yet more costly, manufacturing processes. What is the Sheraton Metechi Palace’s position in this regard?

A. Despite the economic downturn we continued our commitment to CSR. Even during the war in 2008 we had a sustainable programme assisting refugees living in a nearby school for more than a month’s period until they were re-settled by the Government. We believe that CSR is of more significance and should therefore increase during periods of difficulty.

Q. From your point of view how does CSR affect companies’ financial success? And in general, can responsible business prevent recession? How is it in your case?

A. Taking care of our environment and our communities is a priority for Starwood not only because it’s good for the world, but because it’s good for our business. We can do well when we address today’s significant business opportunities: increased costs, changes in consumer and customer expectations and preference and associate passions. This work will enrich our world through solutions and actions that are viable over the long term - sustainable solutions and actions.

Q. In your opinion, does CSR really increase the number of a company’s customers?

A. Yes, it does. Few companies even request approval before signing contracts with us.

Q. Do you think that companies which compete in the same sector in the marketplace should cooperate together more in matters of social and environmental needs?

Do you have examples of such cooperation?

A. We believe yes. We have in the past had sports competitions with selected competitors. Furthermore, the Human Resources Managers of international brand hotels are working together on future projects for 2013.

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“Israeli Companies to be the Leading “Companies Investors in Georgia,” Itsik Moshe Should

Understand Relationship Between CSR and Success” R. Michael Cowgill

The FINANCIAL

By Mariam Papidze

A

fter the Israeli Business Forum in Georgia, investors are starting work on the most part of 50 Israeli business projects which were discussed during the Forum last week.

If all the projects will start to be implemented by the support of the Government of Georgia, Itsik Moshe, President of the Israel-Georgia Chamber of Business, expects Israeli private investments to become the leading investors in Georgia in 2013.

80 businessmen from Israel and, for the first time, from Moscow and Kiev were represented at the Forum. 50 percent of participants represented the real estate and hotel sector, 20 percent - agriculture, and 10 percent - technologies and other fields.

“The interest of Jews who live in Russia towards Georgia has been significantly increased,” Itsik Moshe told The FINANCIAL. “In April we are waiting for a Russian Jewish delegations coming from different countries to Georgia. It is difficult to say for sure why Russian Jews have decided to pay more attention to the Georgian market. It seems that Bidzina Ivanishvili, Prime Minister of Georgia, has been cooperating with Russian Jews for a long time. Now these businessmen from Russia are studying the Georgian market. The Ministry of Economy and Sustainable Development of Georgia made a very impressive presentation about the Georgian market for investors. The investors were very surprised to see so many positive aspects of the Georgian market. The information about the Georgian market is uploaded on the websites of economic organizations in Israel. We want this information to be available to everyone who is interested in Georgia,” added Moshe. It is worth mentioning that Israel-Georgia Business forum will be held in Israel in May. “Besides the fact that Georgia has good indexes, what is very optimistic is that the crisis is coming to an end. I hope that with the end of the global financial crisis the flow of foreign direct investments to Georgia will increase. If all these positive expectations will be added to by the stimulation of Israeli investors we will really have a significant increase in all aspects in 2013. I have been invited to attend a business forum in San Francisco next year where I am going to explain to investors that Georgia is no less of an interesting and attractive market for them than Israel’s market is,” he added.

The President of the Israel-Georgia Chamber of Business considers that not even ten percent of the market potential has been used in Georgia yet. “This means that we have a lot of work to do for the future. We see the rise of successful cooperation and partnership between the two states in almost all fields. Business cooperation is one of the most important aspects of bilateral relations. We have very ambitious goals for the next two years. We are eager to increase the number of Israeli tourists visiting Georgia from 60,000 to 200,000 next year and attract up to USD 1 billion of investments. The Israel-Georgia Chamber of Business together with the Embassy of Israel in Georgia will do our best to encourage Israeli companies to invest and be the leading investors in Georgia,” Moshe said.

Itsik Moshe believes that the interest from the side of Israeli investors is caused by the possibilities that Georgia offers the private sector. “Georgia has a liberal tax code with the number of taxes at only 6, of which the state taxes are Personal Income tax (20%), Profit tax (15%), VAT (18%), Import tax, Excise tax and the only local tax being Property tax. Licenses and permits are only used in the production of highly risky goods and services.

The procedures of using licenses are simple.

Transparent privatization policy is addressed to nationalization of the remaining state property in order to attract foreign investments, increase and develop the private sector and effective use of country resources. Georgia offers one of the most liberal trade regimes of the world with 0 percent import tariffs on more than 85 percent of goods and only 5 percent and 12 percent on others, without any quantitative restriction on imports as well as exports.

Georgia is in the list of just a few countries of the world which offers 100 percent free investment policy for companies, including the possibility of land ownership,” he added.

The Georgian Government also supports the flow of Israeli investments in the country.

“Our thanks go to the Embassy of Israel in Georgia, the Ministry of Economy and Sustainable Development and The FINANCIAL, for supporting the Israeli Business Forum in Georgia,” Moshe said.

Continued from p. 3

The Prime Ministers of Israel and Georgia and the Ambassadors of the both countries, the heads of Israeli Business and Trade organisations sent their greetings to the Israel-Georgia Chamber of Business. Bidzina Ivanishvili, the Prime Minister of Georgia wrote in his address that “The Government of Georgia will further improve the business environment in the country and encourage the activities of foreign investors in Georgia.

I would like to express my gratitude to the Israel-Georgia Chamber of Business for organizing this business forum,”

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management systems have on the Georgian economy?

A. First, I'm glad that you are including corporate governance in CSR. It is often overlooked in the discussion. But as you imply - it is very important. I have stated this before, but the most successful companies and organizations are those that give relatively equal priority to the 3 main stakeholder groups: owners; clients; and staff. All corporate governance processes then follow from that philosophy. Of course obeying laws and regulations are part of that process. But CSR also encourages organizations to not only do what is legal - but what is right.

Good corporate governance is not just preferred, but essential for a company's success.

Q. Reporting is one of the main principles of socially responsible business. Though very few companies in Georgia make public their financial information. In your view, what can encourage companies to start making pubic reports?

A. This is a very difficult subject. One of the competitive advantages of a private company is the confidentiality of its financial operations. The transparency of a company is and should be primarily dictated by what the customers want or require - rather than by regulations.

Q. In Georgia companies in the same sector don’t cooperate together in terms of social projects and environmental protection. How this process could be encouraged and why is it important?

A. Previously in my career, I was deeply involved in developing more robust safety measures within the energy sector - and also ensuring that the public understood that the individual companies placed safety above competition. Sharing and developing safety practices was good for the entire industry. CSR could be seen in a similar way. Some CSR programs can only be successful with many sponsors and companies and there is a need to understand the economies of scale necessary.

Individual company brand awareness and recognition can still occur and even be enhanced by pooling resources. Further, Business Associations such as AmCham and others can be very instrumental in making this work.

Q. Which direction of CSR is the most important for Georgia? Why? A. Let's define the key parts of CSR, say for companies: 1) be profitable; 2) be legal; 3) do what is right; and 4) philanthropy or charitable giving. We know that companies focus on profitability and being legal and following the rules and regulations - and good governance has been a key. I believe that we have progressed to the point where more focus can be placed on nos. 3 and 4 - which is the logical path for CSR growth in a developing society.

Q. Do you think the CSR message is only being heard and acted upon by large companies? Why should small and medium businesses implement CSR activities?

A. The same principles and advantages apply to all sizes of companies. Larger companies tend to have more resources to devote to CSR. However, this is again where the business associations can play a key role in ensuring that best CSR practices are known, understood and made available to all sizes of companies.

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HEADLINE NEWS & ANALYSIS

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BP Invested up to USD 3 Million in CSR in 2012 The FINANCIAL

By Nana Mghebrishvili

B

P is investing several million USD every year in sustainable development programmes. The volume of its investments in CSR will total approximately USD 3 million in 2012.

“Being a responsible business is one of the key aspects of our operations worldwide,” Rusudan Medzmariashvili, Head of the CSR department at BP, told The FINANCIAL. “In addition to our core activities in Georgia we aim to bring lasting benefits to the country through our sustainable development initiative with a focus on the areas that we know best. Apart from community focus the programmes are also directed towards nationwide projects in support of enterprise development in the country as well as the energy efficiency sphere. We put sustainability at the core of everything that we do.

Projects aimed at having a sustainable impact include community development programmes along the three BP operated pipelines in Georgia with a focus on empowering communities, supporting agriculture and SME development, as well as empowering youth and raising environmental awareness.

We are concentrating on 77 communities along the South Caucasus gas Pipeline and Baku-Tbilisi-Ceyhan Pipeline route and more than 200 communities along the BakuSupsa Pipeline. We partner

with the national NGOs, who act as implementing partners in our community development programs.

Since 2003 we have worked intensively with the community based organizations established within the framework of community development initiative along the South Caucasus gas Pipeline and Baku-Tbilisi-Ceyhan Pipeline. We helped building their capacity through implementation of different infrastructure projects, building their management, and fundraising skills .

Another direction of our community programs is supporting income-generating activities in several directions including agriculture and SME support. Community development program works with interested framers to provide necessary consultancy and skills training as well as assisting them in marketing of their produce. The program also involves raising awareness of community members in managing small businesses and assisting them in establishing business start-ups in their communities. We also support them in finding additional financing to make their businesses sustainable.

In summer 2012 we completed a programme aimed at youth capacity building along the Baku-Supsa pipeline. As a result they mastered leadership and project management skills, and improved awareness of environmental issues. Within the framework of the program youth groups had a chance to implement small environmental protection projects and use the knowledge in practice. As

Rusudan Medzmariashvili, Head of the CSR department at BP

a result they received lifelong skills training and got acquainted with the issues related to protection of the environment.

Other initiatives include nationwide projects aimed at making a positive contribution towards improving the business climate in the country and raising energy efficiency awareness. These projects include: establishment of a project management college in partnership with the Free University of Georgia and ESI international, which has benefited around 200 professionals from different businesses and which continues to provide both project management and program management courses; Other examples include Georgia Food Safety Improvement Project with IFC and the Austrian Ministry of Finance, Energy Efficiency Programme for Communities with the Union Energy Efficiency Centre, Energy Efficiency and Renewable Energy Project.

One of the directions of our intervention in future may include supporting technical education in Georgia since the gap assessment that we did couple of years ago identified the shortage of technicians in the country.

Q. What are the concrete results of your CSR activities at BP? A. First of all it has a positive impact on the reputation of the company which results in the confidence of our customers, investors, and neighbouring communities that we do our business in a transparent and responsible way. On the ground It re-

sults in the improved operating environment, helps us in building and maintaining good will of our customers and neighbouring communities that is crucial for our safe and secure operations in the country.

Q. CSR incorporates several important directions. From your point of view, which is the most important for Georgian business and the country itself?

A. TO be a responsible business the company should consider all aspects of CSR, rather than concentrating on a single direction.

CSR should lie at the core of company’s strategic vision and should take into consideration not only the company’s interests, but the environment it operates in –i.e. country priorities.

Q. Why should small and medium businesses implement CSR activities too?

A. From the CSR perspective there is no difference between big or small companies. In its wider meaning CSR involves such important areas of a company’s operations as compliance to local and international regulations and laws, protection of the environment, relationships with customers and contractors, development of its own staff and the creation of a favourable working environment. These are the areas that any business has to address in order to be successful. And if addressed in a proper way they will certainly create favourable conditions for business development.

Bidzina’s Report Card Frank Klobucar GORBI

N

ow that the parliamentary election dust has settled, and a whole new round of presidential election dust has been kicked up, we pollsters have begun to look at Georgian attitudes and expectations for the next political moment in Georgia. Some important attitudes to track, and attitudes that will have a great effect on coming voting behavior, are job satisfaction rates. This week we will discuss how satisfied Georgians are with their new Prime Minister, both generally and specifically. Additionally, we will compare these satisfaction rates to the president’s in the past.

Georgian Opinion Research Business International has just completed our most recent quarterly omnibus survey this week, and we have included a number of political attitude questions about the Prime Minister, President, and coming elections. In order to discuss Ivanishvili’s job performance ratings, and to compare them with Saakashvili’s, we asked respondents how well each man has man-

aged a variety of issues.

For each, we’ve subtracted the percentage of respondents who said the issue had been managed poorly from those who said it had been managed well. A positive result shows that more Georgians appreciate the job that’s been done than not, and a negative result represents dissatisfaction. With these numbers, we can attempt to describe Georgians’ assessment of their new Prime Minister.

The first thing that you need to know about Ivanishvili’s new report card is that it’s largely incomplete; for each of the areas of evaluation, somewhere between 38% and 47% of respondents gave no answer. Compare this to Saakashvili’s last grades, where we find nonresponse rates between 10% and 20% and it becomes obvious that Georgians are still unsure about the qualifications of their new Prime Minister. After all, Bidzina’s time in office can be measured in weeks compared to nearly a decade of familiarity with the President.

Even if we disregard the nonresponses for the time being, we can find that the public still has a generally positive opinion of Ivanishvili. More respondents felt that Ivanishvili has managed each of the issues well than

If parliamentary elections were held tomorrow, [which party] would you vote for?

Georgian Dream UNM Other None/No Answer

poorly. However, given the high non-response rates, few of the “grades” are very high.

His two highest marks are for fighting corruption, for which he received a +26, and ensuring fair elections (+23). He also received good scores for settling relations with Russia (+22), domestic and foreign policy (+20, +19), and human rights protection (+18).

Respondents were not as confident in his ability to return Georgia’s borders to their early 90s’ shape, attracting investments, or various economic concerns. However, the “grades” still remain positive for each of these categories.

The Old Report Card

If we compare these scores to Misha’s last ratings (in August), we find some areas where Georgians are happier with Ivanishvili, and some where Saakashvili’s scores are shoes that are still a bit too big to fill.

While Bidzina’s fight against corruption is so far regarded as his most wellfought, Misha’s rating for the same was significantly higher in August. Likewise, the Prime Minister’s foreign policy received a positive review, but not nearly as high as the President’s. Other grades

were similar for each man, including domestic policy, economic reform, and human rights protection (remember, Misha’s score was given before the recent prison scandal). Perhaps the only issue that clearly shows a public preference for Bidzina, rather than a preference for “notMisha,” is in settling relations with Russia: Bidzina is clearly regarded as capable in this area, and Misha is clearly not.

Finally, regardless of how their individual job assessments might compare, the most important grade any public official receives is electoral. For a hint at what the voters’ final grade may be, we

41% 7% 2% 51%

can simply ask them about their intentions. In this field, Bidzina Ivanishvili is the clear frontrunner. We asked each respondent who would receive their parliamentary vote if elections were held tomorrow: 41% said Georgian Dream (Ivanishvili’s party), while Misha’s UNM received a mere 7% of the hypothetical votes. It seems that, while Georgians have not yet given Mr. Ivanishvili their clear stamp of approval, the stamp previously given to Mr. Saakashvili and the UNM has begun to fade.

This poll included 1000 Georgians and has a margin of error of approximately 3% with 95% confidence. Visit our website at gorbi.com.

This report is exclusively provided to The FINANCIAL. Crediting The FINANCIAL is obligatory.

Visit GORBI website at gorbi.com

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HEADLINE NEWS & ANALYSIS

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17 December, 2012 | finchannel.com

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Bank Republic - Leader in Print CSR to be Included in Media Advertising of 2012 Georgian The FINANCIAL

By Lika Kharebashvili

K

raft, formally known as Kraft Foods, is the leading company in terms of investments in advertising activities in 2012, according to an ad market study done by IPM. The company invested USD 10,684,129 in total in TV ads alone. Bank Republic is the leader in terms of investments in print media in 2012, with a total of USD 204,047; 3.3 times as big an amount as that paid

by Bank of Georgia, and two times as big as what TBC Bank paid in 2011.

“Although Kraft invested only in television ads, its spending budget still exceeded the amount of all other companies’ investments in the three media forms: television, newspaper and radio,” Khatuna Bakradze, Director of Media Monitoring Department, IPM, told The FINANCIAL. In 2011 Kraft invested USD 8,139,047 in TV commercials.

Procter & Gamble invested USD 9,739,328 in their advertising activities in 2012, while in 2011 the company was the leader in terms of investments in TV commercials, with a total of USD 11,862,500, according to IPM data.

“Magticom is also one of the largest investors in media of 2012, with a total investment amount of USD 7,288,537. In terms of TV commercials the company paid USD 7,184,752. Magti paid the following amount for radio commercials - USD 76,539, and in print media advertising - USD 27,246. In 2011 Magti invested USD 7,199,256 in TV commercials,” Khatuna Bakradze, Director of Media Monitoring Department, IPM, told The FINANCIAL. Other telecommunication companies followed Magticom in terms of investments in promotional activities in 2012. Beeline’s total investment in the three media directions for advertising was

USD 4,910,409; Beeline paid USD 4,823,582 for TV commercials. The company was not considered one of the ten biggest investors in TV commercials in 2011.

The official investment amount that Geocell put in to advertising activities in the media in 2012 is USD 4,321,752. Geocell invested USD 4,265,184 in TV commercials, while its volume of investment in the same field in 2011 was 5,917,848.

“Television is the most attractive form of media in the world; this is also true for Georgia. This is because of the fact that it has the widest audience coverage potential.

For example, in October 2012 more than 259,596 people were watching TV per day, according to data of Georgia’s seven largest cities with populations of 45,000,” Nino Gogoladze, Managing Director, TV MR GE, told The FINANCIAL. For the period of January-October 2012, according to the Official Price List, the most expensive 30-second air-time slots (costing

USD 2,250) were during the following programmes on Imedi and Rustavi 2: Nichieri (Rustavi2); Profili (Rustavi2); Chemi colis daqalebi (Rustavi2); Shua Qalaqshi (Imedi); Nanuka Zhorholiani’s Show (Imedi); Dancing with the Stars (Imedi); The voice (Imedi).

Ad prices vary depending on the audience ratings of the different TV channels. The average price of a 30-second slot on a top-rated channel is higher than the average on a low-rated one. “For example, in January-October 2012, the average price for a 30 second ad on a national channel was USD 734, according to the price list, while on medium and small channels it was USD 61,” said Gogoladze.

The official amounts of investments put in to TV commercials in 2012 by various companies in the country are as follows: Henkel - USD 3,987,164; Mars - USD 3,549,232; Brewery Natakhtari - USD 3,515,297; TBC Bank USD 3,166,936; Bank of Georgia - USD 2,962,226; Wrigley - USD

2,907,389; Schwarzkopf - USD 2,790,380; Georgian Brewery Company - USD 2,315,645; Silknet - USD 2,020,385; Barambo - USD 1,959,191; Georgian Lottery Company - USD 1,751,190; Glaxosmithkline - USD 1,622,897; Playadjara. com - USD 1,491,069; Colgate Palmolive - USD 1,471,739; Riko Credit - USD 1,448,090.

Georgian cinema theatres are the market leaders of 2012 in terms of investments in radio advertising with total invested amount of USD 284,803. Bank of Georgia is second in terms of investments in radio with USD 176,333. Socar Energy Georgia is also one of the leaders, having invested USD 164,232 in the medium.

As for the banking sector, TBC Bank is the leader in terms of investments in promotional activities of all media types in 2012; its investments totalled USD 3,328,163.

TBC Bank spent USD 3,166,939 on TV commercials and USD 107,802 on print media advertising. In 2011 TBC Bank invested USD 2,747,144 in TV ads, USD 150,973 in radio, and USD 141 661 in print media ads.

According to IPM, all of Bank of Georgia’s advertising activities in 2012 came to USD 3,183,808.

BOG spent USD 2,962,226 on TV ads, USD 176,333 on radio, and USD 45,249 on print media ads. In 2011 Bank of Georgia spent USD 4,200,397 on TV commercials, USD 260,769 on radio ads, and USD 63,286 on print media.

Bank Republic is the clear leader in terms of investments in print media advertising in 2012; the volume of their investment is USD 204,047. Bank Republic is not included in the list of the top 20 investors of TV and radio commercials in 2012, though its rivals spent money in these fields too. Bank Republic was also the leader in terms of investments in print media advertising in 2011; the volume of investment in this medium last year was USD 143 200. Bank Republic spent USD 99,204 on radio commercials in 2011.

Stakeholders And Shareholders

By Daan Harmsen, Financial Manager, GeoCapital Microfinance Organization

T

he way many companies think about Corporate Social Responsibility (CSR) is as follows: if we do something good or charitable for society, take lots of pictures, and make sure there is media coverage, customers, suppliers, or people connected to our business in other ways, will think we are good, and do more business with us. Of course many companies won’t exactly put it that way: if you publicly say that your only goal is to increase sales, this would defeat the purpose, because most people believe that doing something good is only truly praiseworthy if you do it for altruistic reasons, without some ulterior motive. I call this the short-term, PR model. Is that really the way we should look at Corporate Social Responsibility though?

To answer this question, there is another question that needs to be answered first: what is the purpose of a

company? In many countries, publicly-owned companies (of which any individual can buy stocks) are legally obliged to strive to optimize shareholder returns. The people who govern the company have a “fiduciary duty” to act in the interest of the owners of the company.. If they breach this fiduciary duty, they can even face criminal charges. If in fact this is the only (legal) goal a company has, the purpose of Corporate Social Responsibility cannot be any other than the one described in the first paragraph: it would be a breach of fiduciary duty to do something that wouldn’t benefit the company.

However, shareholder value maximization is not the only existing paradigm for thinking about Corporate Social Responsibility. Another paradigm that we can use is a stakeholder model: instead of just maximizing value for its shareholders, a company should also focus on maximizing value for its other stakeholders, such as customers, employees, suppliers, and the communities it operates in.

This is the model we use at GeoCapital Microfinance: we try to have a positive impact on all our stakeholders. For example, when we noticed that many of our clients lacked basic financial literacy, and did not under-

stand or even read their contracts before signing them , we started a financial literacy course called “You and Your Money”, which eventually grew into a separate NGO, “GeoCapital Education”. This nonprofit organization now organizes a number of different trainings in the community we operate in. We as an organization did not gain anything from this in the short term. In fact, because some of our clients started to save money after attending our workshops, they reduced their borrowing!

In general, the stakeholder model involves “doing the right thing”.

When a low-level employee gets seriously ill, especially in Georgia, the shareholder model would just tell you to cut that employee loose: employment laws are flexible, labor is cheap, and unemployment is high, so you are very likely to find a replacement within a very short amount of time. However if you think for a second about the right thing to do, this is obviously very different: you make sure the employee gets healthy soon, and doesn’t get into financial trouble just because he or she fell sick.

Depending on the sector, the stakeholder model might involve changing the business model so that the opera-

tions cause minimal damage to the community, or fixing any damage that has been done. This is especially the case for companies that have a serious impact on the environment, such as oil companies or manufacturing companies.

In fact, using the stakeholder model I just described is not very different from something that I would call a long-term shareholder model. In the long run, a company that takes its responsibilities towards its stakeholders seriously will deliver superior returns, because a company can only thrive if it operates in a thriving community, with happy employees, satisfied customers, and without damage to its physical and social environment.

Don’t think of Corporate Social Responsibility as a public relations effort, or the responsibility of a specific “CSR department” within your company. This amounts to nothing more than buying off your sins. To the contrary, social responsibility should be ingrained in the DNA of your company, and guide everything you do, in order to both care for your stakeholders and improve long-term sustainability and profitability of the company. daan.harmsen@geocapital.ge

Universities’ Tutorial Programmes The FINANCIAL

By Mariam Papidze

T

he leading universities in Georgia such as Caucasus University, Free University, Georgian-American University and International Black Sea University are going to put CSR in their tutorial programmes. At the moment CSR is being taught at only two universities in Georgia - Ilia University and Caucasus University.

Universities have already signed a Memorandum of Understanding for the purpose of establishing a joint CSR programme to be implemented in all four universities’ schools of business and further supporting the enhancement of corporate social responsibility in Georgia through education and research.

“As two universities have already put CSR in their tutorial programmes, I hope that others will do the same as well,” said Lela Khoperia, Promoting Corporate Social Responsibility Program Coordinator at the Center for Strategic Research and Development of Georgia. “The European example shows that universities pay big attention to CSR, which is a part of the business curriculum. CSR is being taught as a subject and is sometimes offered as an independent specialty at the universities. If CSR is implemented at Georgian universities it means that it will be an important start of further development of CSR. So the universities will prepare a new generation who will have proper knowledge for implementing CSR projects and will know how to manage CSR activities,” she added.

“Corporate Social Responsibility is being taught at Caucasus University in the second semester of the third course,” said Kakha Shengelia, the President of Caucasus University. “This is a mandatory subject of the business specialty. We added CSR to our tutorial programme in 2011.

We think that it is important for CSR to be taught at universities, especially in today’s business environment and for the business management faculty students. About 100 students study this subject at our university every year,” he added.

“The administration of GeorgianAmerican University (GAU) considers supporting CSR to be important for the sustainable development of business, for increasing the level of employees’ and customers’ loyalty and for improving a company’s image and public relations,” said R. Michael Cowgill, the President of Georgian-American University. “GAU is working on implementing CSR as one of the subjects in its tutorial programme.

Our university is very socially responsible itself. We are a member of such organizations which are supporters of CSR - AmCham Georgia, Georgian Business Ethics Association, Student Organizations, the UN Global Compact,” he added.

“I must say that I was the first CSR Manager in the Georgian private sector which also proves Wissol Group’s vision for sustainable development,” said Rusudan Kbilashvili, CSR Manager at Wissol Group.

“Even though there were no opportunities to get education in CSR in Georgia, I was interested in the field during my studies at the Public Administration Master’s Programme at GIPA and I was the first student to prepare a research paper in Public Private Partnership (PPP), which is one of the directions of CSR. Since then I have not missed opportunities to take professional courses offered by the international organizations and NGOs in Georgia and abroad as well. Now I teach CSR at the International Educational Agency Cambridge Study myself trying to contribute to raising awareness about the new field. Therefore I think that the introduction of CSR classes at Georgian Business Schools is strategic to have responsible businesses in the future and to have qualified professionals to set the right CSR strategies,” she added.

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HEADLINE NEWS & ANALYSIS

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where to go

finchannel.com | 17 December, 2012 December 17, 2012

1

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7 NIGHTS / 8 DAYS 3* hotels from 670 USD per person 4* hotels from 730 USD per person 5* hotels from 930 USD per person Price includes: AIR TICKETS ROUND TRIP (TBILISI – DUBAI – TBILISI) VISA, INSURANCE, HOTELS (BAD AND BREAKFAST) CALL: 2999 662; 592 07 53 53. E-MAIL: SKY@SKY.GE

Clubs, Pubs…

SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band “Wheels”, DJ Datuna Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Sushi Bar Samurai 9 G. Tabidze Str. Mob: 577-22-60 01; Tel: 240-29-99 19:00 - Geishas dances Restaurant “Mghvime” Address: Left bank of Mtkvari River (next to shop “Riverside”) Phone: 2 305 558/ 2 359 540; 599 56 60 72 Every evening from 22:00 inextinguishable star of Georgian Estrada Gia Suramelashvili and live music: Estrada ensemble “Mghvime” (4 boys and 1 girl), tam-tam, violin, saxophone, king.

You will listen to famous old and new hits, jazz, blues, rock…

Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 20:30 - Maidan Jazz Band Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs. Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Rezo Kiknadze - saxophonist Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band “Goblins” (Covers)

2

Cinema

“Rustaveli” Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “Seven Psychopaths”; “The Twilight Saga: Breaking Dawn-Part 2”; “Silent Hill: Revelation” 3D; “Love with Accent” (Ticket Price: 6,50 - 11,50 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “The Twilight Saga: Breaking Dawn-Part 2”; (Ticket Price: 6,50 - 11,50 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “The Twilight Saga: Breaking Dawn-Part 2”; “Wreck-It Ralph” 3D; “Poker with Love Rules” (Ticket Price: 4 - 8 GEL)

3

Theatre

From

Royal District Theatre 10 Abesadze Str. Tel: 299-61-71 The Ugly One Director:Data Tavadze Cast: Soso Khvedelidze, Kato Kalatozishvili, Iako Chilaia, Paata Inauri, Gaga Shishinashvili Duration: 100 minutes Time: 20:00 Price: 7, 10 GEL

Tbilisi

TO

Day

Aktau

4.7

Depart 02:50

Arrive 05:10

Flight# DV 842

Amsterdam

1.6

06:10

07:55

A9 651

Almaty

1.2.4.6

08:55

14:35

KC E90

Athens

1.4

06:15

07:15

A3 983

Baku

X 2.4

01:50;12:30

03:10;13:50

J2 224/226

Baku

DAILY

15:05;20:15

16:20;21:30

QR 975/977

Batumi

X 3.6

08:50;09:30

09:25;10:05

CRJ

Doha

DAILY

15:05;20:15

19:05;00:15+1

QR 975/977

Dubai

2.4.6

06:35

10:00

FZ 714

Donetsk

6

14:45

14:25

VV/320

Donetsk

4.7

02:50

02:35

QU 202

Istanbul

DAILY

06:30

06:45

PC/463

Istanbul

DAILY

05:15;18:15

05:45; 18:45

TK 387/383

Kiev

DAILY

18:20

19:00

VV 418

Kiev

DAILY

07:30

08:00

PS 728

Kharkov

5

08:30

08:20

A9 719

London

1.2.5.6

10:35; 15:30

12:15; 17:10

BA 158

Minsk

DAILY

03:55

06:05

B2 736

Munich

DAILY

05:05

06:10

LH 2557

Odessa

7

15:05

16:10

QU 212

Paris

5

15:30

17:35

A9 627

Prague

3.6

05:20

06:15

OK 935

Riga

1.3.6

07:00

08:35

BT 723

Rome

2.7

06:00

07:15

AZ 551

Tel-Aviv

2.4.7

21:00

21:45

A9 695

Vienna

4.7

08:55

09:25

A9 681

Urumqi

2.6

22:40

07:30+1

CZ 6040

Warsaw

2.4.7

05:50

06:25

LO 724

Warsaw

X 1.2

04:50

0620

E75

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4

Gallery

“Erich Mendelsohn. Dynamic and Function. Personified contemplates of Cosmopolite Architect”. Tbilisi Goethe Institute, Georgian National Museum, Tbilisi History Museum presents exhibition of IFA “Erich Mendelsohn.

Dynamic and Function. Personified contemplates of Cosmopolite Architect”.

Tbilisi Museum of History (Karvasla) Exhibition opening: 17:00, December 15, 2012 8 Sioni Str. Tel: 292-32-27 (Museum is working every day except Monday. From 11:00 till 17:00)till - January 20 “Baia Gallery” presents Anatoli Giorgadze’s Exhibition - Watercolour Baia Gallery Exhibition opening: 17:00, December 16, 2012 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00till - December 20 Niko Pirosmani Anniversary Exhibition - “Pirosmani - 150” D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:0018:00till - March 30 Lado Gudiashvili exhibition “Promenade” is presented at the Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 http://lgexhibitionhall.info-tbilisi.com/till - May 30 Exhibition “New Life of Eastern Collections”.

On Exhibition will be presented masterpieces of eastern collections reserved in Shalva Amiranashvili Art Museum of Georgian National Museum Simon Janashia State Museum 3, Rustaveli Ave. Tel: 299-80-22 Museum is working everyday except Monday. From 10:00 till 18:00till - December 30

December 18, 2012

1

Clubs, Pubs…

SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band “Wheels”, DJ Datuna Restaurant “Mghvime” Address: Left bank of Mtkvari River (next to shop “Riverside”) Phone: 2 305 558/ 2 359 540; 599 56 60 72 Every evening from 22:00 inextinguishable star of Georgian Estrada Gia Suramelashvili and live music: Estrada ensemble “Mghvime” (4 boys and 1 girl), tam-tam, violin, saxophone, king.

You will listen to famous old and new hits, jazz, blues, rock…

Sushi Bar Samurai 9 G. Tabidze Str. Mob: 577-22-60 01; Tel: 240-29-99 19:00 - Geishas dances Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - “Kalakuri’s Quartet” - with live performance of city songs, and also universal songs Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs. Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 20:30 - Georgian folk ensemble “Urmuli”, georgian dances Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00-24:00 - Jazz Band Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Maia Kankava Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band “Goblins” (Covers)

2

Cinema

“Rustaveli” Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “Seven Psychopaths”; “The Twilight Saga: Breaking Dawn-Part 2”; “Silent Hill: Revelation” 3D; “Love with Accent” (Ticket Price: 6,50 - 11,50 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “The Twilight Saga: Breaking Dawn-Part 2”; (Ticket Price: 6,50 - 11,50 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “The Twilight Saga: Breaking Dawn-Part 2”; “Wreck-It Ralph” 3D; “Poker with Love Rules” (Ticket Price: 4 - 8 GEL)

5

Concert

20:00 - Concert of Temur Tatarashvili (Ticket Price: 10 - 40 GEL) Tbilisi Concert Hall 1, Meliqishvilii Str. Tel: 299-05-99 Date: - December 18

3

Theatre

Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Private Lives Director: Levan Tsuladze Cast: Irma Berianidze, Tamar Bukhnikashvili, Zaza Iakashvili, Nika Kuchava Duration: 90 minutes Hall: Theatre in Attic Time: 20:00 Price: 11 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Elder Son St. Petersburg State Theatre - “Masterskaya” Director: Grogory Kozlov Hall: Big Stage Time: 20:00 Price: 6, 8, 10, 14, 16 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 Jeans Generation Director: Davit Doiashvili Cast: Marina Janashia, Nana Darchiashvili, Goga Chkheidze, Dima Merabishvili, Merab Kolbaia, Lela Metreveli, Jaba Kiladze, Mariam Nadiradze, Apolon Kublashvili, Sandro Margalitashvili Duration: 165 minutes

Time: 19:00 Price: 5, 10, 12 GEL Royal District Theatre 10 Abesadze Str. Tel: 299-61-71 The Ugly One Director:Data Tavadze Cast: Soso Khvedelidze, Kato Kalatozishvili, Iako Chilaia, Paata Inauri, Gaga Shishinashvili Duration: 100 minutes Time: 20:00 Price: 7, 10 GEL Pantomime Theatre 37 Rustaveli Ave. Tel: 299-63-14 Krimanchuli Director: Amiran Shalikashvili Duration: 60 minutes Time: 19:00 Price: 5.50 GEL

4

Gallery

“Erich Mendelsohn. Dynamic and Function. Personified contemplates of Cosmopolite Architect”. Tbilisi Goethe Institute, Georgian National Museum, Tbilisi History Museum presents exhibition of IFA “Erich Mendelsohn.

Dynamic and Function. Personified contemplates of Cosmopolite Architect”.

Tbilisi Museum of History (Karvasla) Exhibition opening: 17:00, December 15, 2012 8 Sioni Str. Tel: 292-32-27 (Museum is working every day except Monday. From 11:00 till 17:00)till - January 20 “Baia Gallery” presents Anatoli Giorgadze’s Exhibition - Watercolour Baia Gallery Exhibition opening: 17:00, December 16, 2012 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00till - December 20 Niko Pirosmani Anniversary Exhibition - “Pirosmani - 150” D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:0018:00till - March 30 Lado Gudiashvili exhibition “Promenade” is presented at the Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 http://lgexhibitionhall.info-tbilisi.com/till - May 30 Exhibition “New Life of Eastern Collections”.

On Exhibition will be presented masterpieces of eastern collections reserved in Shalva Amiranashvili Art Museum of Georgian National Museum Simon Janashia State Museum 3, Rustaveli Ave. Tel: 299-80-22 Museum is working everyday except Monday. From 10:00 till 18:00till - December 30

December 19, 2012

1

Clubs, Pubs…

SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band “Wheels”, DJ Datuna Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - “Kalakuri’s Quartet” - with live performance of city songs, and also universal songs Sushi Bar Samurai 9 G. Tabidze Str. Mob: 577-22-60 01; Tel: 240-29-99 19:00 - Geishas dances Restaurant “Mghvime” Address: Left bank of Mtkvari River (next to shop “Riverside”) Phone: 2 305 558/ 2 359 540; 599 56 60 72 Every evening from 22:00 inextinguishable star of Georgian Estrada Gia Suramelashvili and live music: Estrada ensemble “Mghvime” (4 boys and 1 girl), tam-tam, violin, saxophone, king.

You will listen to famous old and new hits, jazz, blues, rock…

Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Tavern “Scarlet Sails” 25, Leselidze Str. Tel: 293-10-28 22:00-01:00 - Group “Comic Condition” Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs. Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 20:30 - Maidan Jazz Band Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Live Band Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band “Zarebi” (Covers)

2

Cinema

“Rustaveli” Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “Seven Psychopaths”; “The Twilight Saga: Breaking Dawn-Part 2”; “Silent Hill: Revelation” 3D; “Love with Accent” (Ticket Price: 6,50 - 11,50 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “The Twilight Saga: Breaking Dawn-Part 2”; (Ticket Price: 6,50 - 11,50 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “The Twilight Saga: Breaking Dawn-Part 2”; “Wreck-It Ralph” 3D; “Poker with Love Rules” (Ticket Price: 4 - 8 GEL)

3

Theatre

Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Tango with Illegitimate Director: Ketevan Kharshiladze, Guram Vashakidze Cast: Kote Tolordava, Ia Shughliashvili, Eka Nijaradze, Lile Philphani, Nino Gomarteli, Nino Dumbadze, Tamar Bukhnikashvili, Nikusha Chikovani, Levan Gelbakhiani Duration: 140 minutes Hall: Theatre in Attic Time: 20:00 Price: 11 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Elder Son St. Petersburg State Theatre - “Masterskaya” Director: Grogory Kozlov Hall: Big Stage Time: 20:00 Price: 6, 8, 10, 14, 16 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 Eight Loving Women Director: Maya Chartolani Cast: Marina Janashia, Lali Badurashvili, Ani Zambakhidze, Nino Kikacheishvili, Maya Khornauli, Salome Chulukhadze, Pikria Nikabadze, Anna Mghebrishvili Time: 19:00 Price: 5, 7, 10 GEL

4

Gallery

“Erich Mendelsohn. Dynamic and Function. Personified contemplates of Cosmopolite Architect”. Tbilisi Goethe Institute, Georgian National Museum, Tbilisi History Museum presents exhibition of IFA “Erich Mendelsohn.

Dynamic and Function. Personified contemplates of Cosmopolite Architect”.

Tbilisi Museum of History (Karvasla) Exhibition opening: 17:00, December 15, 2012 8 Sioni Str. Tel: 292-32-27 (Museum is working every day except Monday. From 11:00 till 17:00)till - January 20 “Baia Gallery” presents Anatoli Giorgadze’s Exhibition - Watercolour Baia Gallery Exhibition opening: 17:00, December 16, 2012 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00till - December 20 Niko Pirosmani Anniversary Exhibition - “Pirosmani - 150” D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:0018:00till - March 30 Lado Gudiashvili exhibition “Promenade” is presented at the Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 http://lgexhibitionhall.info-tbilisi.com/till - May 30 Exhibition “New Life of Eastern Collections”.

On Exhibition will be presented masterpieces of eastern collections reserved in Shalva Amiranashvili Art Museum of Georgian National Museum Simon Janashia State Museum 3, Rustaveli Ave. Tel: 299-80-22 Museum is working everyday except Monday. From 10:00 till 18:00till - December 30

December 20, 2012

1

Clubs, Pubs…

SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band “Band’a’roll”, DJ Datuna Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Resident DJ Tako Sushi Bar Samurai 9 G. Tabidze Str. Mob: 577-22-60 01; Tel: 240-29-99 19:00 - Geishas dances Restaurant “Mghvime” Address: Left bank of Mtkvari River (next to shop “Riverside”) Phone: 2 305 558/ 2 359 540; 599 56 60 72 Every evening from 22:00 inextinguishable star of Georgian Estrada Gia Suramelashvili and live music: Estrada ensemble “Mghvime” (4 boys and 1 girl), tam-tam, violin, saxophone, king.

You will listen to famous old and new hits, jazz, blues, rock…

Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - “Kalakuri’s Quartet” - with live performance of city songs, and also universal songs Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs. Estrada singers: Giorgi Tsiklauri, Nina

Okroashvili, Giorgi Kakutia Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Maia Kvirkvelia & DJ Dachi Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 20:30 - Georgian folk ensemble “Urmuli”, georgian dances Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00-24:00 - Jazz Band Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Guliko Chanturia Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band “Zarebi” (Covers)

2

Cinema

“Rustaveli” Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “Seven Psychopaths”; “The Twilight Saga: Breaking Dawn-Part 2”; “Silent Hill: Revelation” 3D; “Love with Accent” (Ticket Price: 6,50 - 11,50 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “The Twilight Saga: Breaking Dawn-Part 2”; (Ticket Price: 6,50 - 11,50 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “The Twilight Saga: Breaking Dawn-Part 2”; “Wreck-It Ralph” 3D; “Poker with Love Rules” (Ticket Price: 4 - 8 GEL)

3

Theatre

Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 As You Like It Director: Levan Tsuladze Cast: Manana Kozakova, Nato Kakhidze, Ketevan Shatirishvili, Ketevan Tskhakaia, Nata Murvanidze, Tamar Bukhnikashvili, Nikoloz Tavadze, Malkhaz Abuladze, Beso Baratashvili, Davit Khurtsilava, Nika Kuchava, Zurab Berikashvili, Roland Okropiridze, Onise Oniani Duration: 120 minutes Hall: Big Stage Time: 20:00 Price: 6 - 16 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Me, Grandmother, Grandfather and Demons Sokhumi State Dramaturge Theatre Director: Giorgi Tavadze Cast: Nugzar Chikovani, Nino Shavgulidze, Merab Brekashvili, Marina Solomonia, Nugzar Tserediani Hall: Theatre in Attic Time: 20:00 Price: 11 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 Dolls’ House Director: Vano Khutsishvili Cast: Tamuna Nikoladze, Giorgi Zanguri, Bacho Chachibaia, Maia Khornauli, Nino Philphani, Devi Bibileishvili Time: 19:00 Price: 5, 7, 10, 12 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 Visitor “Naked theatre” Director: Nana Kvaskhvadze Cast: Guram Laliashvili, Ilia Cheishvili Duration: 80 minutes Time: 19:00 Price: 7 GEL V. Abashidze State Music and Drama Theatre 182 Agmashenebeli Ave. Tel: 234-80-90 A Midsummer Night’s Dream Director: David Doiashvili Cast: Buba Gogorishvili, Kakha Kintsurashvili, Archil Sologhashvili Time: 19:00 Price: 15 GEL

4

Gallery

“Erich Mendelsohn. Dynamic and Function. Personified contemplates of Cosmopolite Architect”. Tbilisi Goethe Institute, Georgian National Museum, Tbilisi History Museum presents exhibition of IFA “Erich Mendelsohn.

Dynamic and Function. Personified contemplates of Cosmopolite Architect”.

Tbilisi Museum of History (Karvasla) Exhibition opening: 17:00, December 15, 2012 8 Sioni Str. Tel: 292-32-27 (Museum is working every day except Monday. From 11:00 till 17:00)till - January 20 “Baia Gallery” presents Anatoli Giorgadze’s Exhibition - Watercolour Baia Gallery Exhibition opening: 17:00, December 16, 2012 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00till - December 20 Niko Pirosmani Anniversary Exhibition - “Pirosmani - 150” D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:0018:00till - March 30 Lado Gudiashvili exhibition “Promenade” is presented at the Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 http://lgexhibitionhall.info-tbilisi.com/till - May 30 Exhibition “New Life of Eastern Collections”.

On Exhibition will be presented masterpieces of eastern collections reserved in Shalva Amiranashvili Art Museum of Georgian National Museum Simon Janashia State Museum 3, Rustaveli Ave. Tel: 299-80-22 Museum is working everyday except Monday. From 10:00 till 18:00till - December 30

December 21, 2012

1

Clubs, Pubs…

21:00 - Agora Live Band, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - Geishas dances Sushi Bar Samurai 9 G. Tabidze Str. Mob: 577-22-60 01; Tel: 240-29-99 Every day from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs. Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Restaurant is working 24 hours Entertainment at the restaurant “Mghvime” is colorful. Every evening from 20:00 inextinguishable star of Georgian Estrada Gia Suramelashvili. Estrada ensemble “Mghvime” (3 boys and one girl), tam-tam, violin. During weekdays: Singer, composer Kaki Bolkvadze and hot Georgian and Asian dances Restaurant “Mghvime” Address: Left bank of Mtkvari River (next to shop “Riverside”) Phone: 2 305 558/ 2 359 540; 599 56 60 72 20:00-23:00 - “Kalakuri’s Quartet” - with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Gio Khutsishvili & DJ Dachi Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 22:00-01:00 - Group “Comic Condition” Tavern “Scarlet Sails” 25, Leselidze Str. Tel: 293-10-28 20:30 - Maidan Jazz Band Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Maia Baratashvili Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00-24:00 - Band “Zarebi” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67

2

Cinema

“Rustaveli” Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “Seven Psychopaths”; “The Twilight Saga: Breaking Dawn-Part 2”; “Silent Hill: Revelation” 3D; “Love with Accent” (Ticket Price: 6,50 - 11,50 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “The Twilight Saga: Breaking Dawn-Part 2”; (Ticket Price: 6,50 - 11,50 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “The Twilight Saga: Breaking Dawn-Part 2”; “Wreck-It Ralph” 3D; “Poker with Love Rules” (Ticket Price: 4 - 8 GEL)

5

Concert

20:00 - The Concert of “Sukhishvilebi” (Ticket Price: 10, 20, 30 GEL) Tbilisi Concert Hall 1, Meliqishvilii Str. Tel: 299-05-99 Date: - December 21

3

Theatre

Rustaveli Theatre 17, Rustaveli Ave. Tel: 272-68-68 What a wonderful day... (Shadow Theatre) Writer, director: Gela Kandelaki Cast: Vadim Shubitidze, Elene Murjikneli, Paata

Shengelia, Anzhela Abshilava, Giorgi Chanturia, Elene Zurabashvili Duration: 80 minutes Hall: Small Stage Time: 19:45 Price: 6, 8 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Naphthaline Director: Davit Sakvarelidze Cast: Guranda Gabunia, Ninaka Gelashvili, Temur Kiladze, Joseph Gogichaishvili, Alexander Getsadze, Maia Tatishvili, Beka Goderdzishvili, Zaza Goguadze, Vaja Kvitaishvili Hall: Big Stage Time: 20:00 Price: 4 - 10.50 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 A Clockwork Orange Director: Avto Varsimashvili Cast: Jaba Kiladze, Apolon Kublashvili, Slava Natenadze, Sandro Margalitashvili, Misha Arjevanidze, Ani Aladashvili, Masho Melkadze, Lasha Gurgenidze +16 year Duration: 135 minutes Time: 19:00 Price: 5, 10, 15 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 Chupri-chupar, Darejan...

Director: Kote Mirianashvili Cast: Laura Rekhviashvili Duration: 70 minutes Time: 19:00 Price: 7 GEL V. Abashidze State Music and Drama Theatre 182 Agmashenebeli Ave. Tel: 234-80-90 A Midsummer Night’s Dream Director: David Doiashvili Cast: Buba Gogorishvili, Kakha Kintsurashvili, Archil Sologhashvili Time: 19:00 Price: 15 GEL Gabriadze Theatre 13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 Autumn of my Springtime Marionette Theatre Author and Director: Rezo Gabriadze +10 years Time: 19:15 Price: 5, 10, 15 GEL Pantomime Theatre 37 Rustaveli Ave. Tel: 299-63-14 Host and Guest Director: Amiran Shalikashvili Duration: 50 minutes Time: 19:00 Price: 7.50 GEL

4

Gallery

“Erich Mendelsohn. Dynamic and Function. Personified contemplates of Cosmopolite Architect”. Tbilisi Goethe Institute, Georgian National Museum, Tbilisi History Museum presents exhibition of IFA “Erich Mendelsohn.

Dynamic and Function. Personified contemplates of Cosmopolite Architect”.

Tbilisi Museum of History (Karvasla) Exhibition opening: 17:00, December 15, 2012 8 Sioni Str. Tel: 292-32-27 (Museum is working every day except Monday. From 11:00 till 17:00)till - January 20 Niko Pirosmani Anniversary Exhibition - “Pirosmani - 150” D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:0018:00till - March 30 Lado Gudiashvili exhibition “Promenade” is presented at the Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 http://lgexhibitionhall.info-tbilisi.com/till - May 30 Exhibition “New Life of Eastern Collections”.

On Exhibition will be presented masterpieces of eastern collections reserved in Shalva Amiranashvili Art Museum of Georgian National Museum Simon Janashia State Museum 3, Rustaveli Ave. Tel: 299-80-22 Museum is working everyday except Monday. From 10:00 till 18:00till - December 30

December 22, 2012

1

Clubs, Pubs…

22:00 - DJ Gramaphonedzie - “Why Don’t You” City Club 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Veriko Turashvili & Live Band, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 19:00 - Geishas dances Sushi Bar Samurai 9 G. Tabidze Str. Mob: 577-22-60 01; Tel: 240-29-99 22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 Restaurant is working 24 hours Entertainment at the restaurant “Mghvime” is colorful. Every evening from 20:00 inextinguishable star of Georgian Estrada Gia Suramelashvili. Estrada ensemble “Mghvime” (3 boys and one girl), tam-tam, violin. During weekdays: Singer, composer Kaki Bolkvadze and hot Georgian and Asian dances Restaurant “Mghvime” Address: Left bank of Mtkvari River (next to shop “Riverside”) Phone: 2 305 558/ 2 359 540; 599 56 60 72 Every day from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs. Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - “Kalakuri’s Quartet” - with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Merab Sephashvili & DJ Dachi Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 22:00-01:00 - Group “Comic Condition” Tavern “Scarlet Sails” 25, Leselidze Str. Tel: 293-10-28 20:30 - Maidan Jazz Band Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Keti Paresashvili Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00-24:00 - Band “Rustavi 2” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67

2

Cinema

“Rustaveli” Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “Seven Psychopaths”; “The Twilight Saga: Breaking Dawn-Part 2”; “Silent Hill: Revelation” 3D; “Love with Accent” (Ticket Price: 6,50 - 11,50 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “The Twilight Saga: Breaking Dawn-Part 2”; (Ticket Price: 6,50 - 11,50 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “The Twilight Saga: Breaking Dawn-Part 2”; “Wreck-It Ralph” 3D; “Poker with Love Rules” (Ticket Price: 4 - 8 GEL)

5

Concert

20:00 - The Concert of “Sukhishvilebi” (Ticket Price: 10, 20, 30 GEL) Tbilisi Concert Hall 1, Meliqishvilii Str. Tel: 299-05-99 Date: - December 22

3

Theatre

Rustaveli Theatre 17, Rustaveli Ave. Tel: 272-68-68 I’m craving for the straight wind Director: Murman Jinoria Cast: Murman Jinoria Duration: 75 minutes Hall: Experimental Stage Time: 19:00 Price: 6, 8 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Il Decameron Director: Levan Tsuladze Cast: Malkhaz Abuladze, Beso Baratashvili, Irma Berianidze, Zura Berikashvili, Tamar Bukhnikashvili, Nino Gachechiladze, Baia Dvalishvili, Manana Kozakova, Nika Kuchava, Marlen Egutia Hall: Big Stage Time: 20:00 Price: 4 - 10.50 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 I Love You, I Love You, I Love You Director: Avto Varsimashvili Cast: Mariam Jologua, Apolon Kublashvili, Ani Aladashvili, Giorgi Jikia, Kakha Mikiashvili, Mamuka Mumladze, Sandro Margalitashvili Duration: 150 minutes Time: 20:00 Price: 5, 10, 15 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 House of Bernarda Alba Director: Nana Kvaskhvadze Cast: Mzia Arabuli, Nana Shonia, Nutsa Mchedlishvili, Lili Metreveli, Ana Nikolaishvili, Irina Giunashvili Duration: 140 minutes Time: 19:00 Price: 10 GEL V. Abashidze State Music and Drama Theatre 182 Agmashenebeli Ave. Tel: 234-80-90 A Midsummer Night’s Dream Director: David Doiashvili Cast: Buba Gogorishvili, Kakha Kintsurashvili, Archil Sologhashvili Time: 19:00 Price: 15 GEL Akhmeteli Theatre 8 Vekua Str. Tel: 262-54-37, 262-59-73, 262-61-97 Taxi Driver Givi’s Love Story Director: Malkhaz Aslamazashvili Cast: Bacho Kajaia, Gvantsa Kandelaki, Tamta Patashuri, Andro Sarishvili, Giorgi Ksovreli, Kakha Jokhadze, Zurab Iashvili Duration: 140 minutes Time: 19:00 Price: 7, 10 GEL A. Griboedov Russian State Drama Theatre 2 Rustaveli Ave. Tel: 293-11-06 Marriage Director: Avtandil Varsimashvili Cast: Mariam Kitia, Apolon Kublashvili, Irina Kvizhinadze, Valery Kharutchenko, Nana Darchiashvili, Oleg Mchedlishvili Duration: 110 minutes Time: 18:00 Price: 5 GEL Gabriadze Theatre

13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 The Battle of Stalingrad Marionette Theatre Author and Director: Rezo Gabriadze In Russian +10 years Time: 19:15 Price: 5, 10, 15 GEL

4

Gallery

“Erich Mendelsohn. Dynamic and Function. Personified contemplates of Cosmopolite Architect”. Tbilisi Goethe Institute, Georgian National Museum, Tbilisi History Museum presents exhibition of IFA “Erich Mendelsohn.

Dynamic and Function. Personified contemplates of Cosmopolite Architect”.

Tbilisi Museum of History (Karvasla) Exhibition opening: 17:00, December 15, 2012 8 Sioni Str. Tel: 292-32-27 (Museum is working every day except Monday. From 11:00 till 17:00)till - January 20 Niko Pirosmani Anniversary Exhibition - “Pirosmani - 150” D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:0018:00till - March 30 Lado Gudiashvili exhibition “Promenade” is presented at the Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 http://lgexhibitionhall.info-tbilisi.com/till - May 30 Exhibition “New Life of Eastern Collections”.

On Exhibition will be presented masterpieces of eastern collections reserved in Shalva Amiranashvili Art Museum of Georgian National Museum Simon Janashia State Museum 3, Rustaveli Ave. Tel: 299-80-22 Museum is working everyday except Monday. From 10:00 till 18:00till - December 30

December 23, 2012

1

Clubs, Pubs…

21:00 - Agora Live Band, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 Every day from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs. Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - “Kalakuri’s Quartet” - with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - Geishas dances Sushi Bar Samurai 9 G. Tabidze Str. Mob: 577-22-60 01; Tel: 240-29-99 Restaurant is working 24 hours Entertainment at the restaurant “Mghvime” is colorful. Every evening from 20:00 inextinguishable star of Georgian Estrada Gia Suramelashvili. Estrada ensemble “Mghvime” (3 boys and one girl), tam-tam, violin. During weekdays: Singer, composer Kaki Bolkvadze and hot Georgian and Asian dances Restaurant “Mghvime” Address: Left bank of Mtkvari River (next to shop “Riverside”) Phone: 2 305 558/ 2 359 540; 599 56 60 72 22:00 - Karaoke Party! Host - Salome Gogiashvili & DJ Dachi Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 20:30 - Georgian folk ensemble “Urmuli”, georgian dances Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Live Band Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00-24:00 - Band “Rustavi 2” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67

2

Cinema

“Rustaveli” Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “Seven Psychopaths”; “The Twilight Saga: Breaking Dawn-Part 2”; “Silent Hill: Revelation” 3D; “Love with Accent” (Ticket Price: 6,50 - 11,50 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Rise of the Guardians” 3D; “Men’s Movie”; “Playing For Keeps”; “The Twilight Saga: Breaking Dawn-Part 2”; (Ticket Price: 6,50 - 11,50 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “The Twilight Saga: Breaking Dawn-Part 2”; “Wreck-It Ralph” 3D; “Poker with Love Rules” (Ticket Price: 4 - 8 GEL)

3

Theatre

Rustaveli Theatre 17, Rustaveli Ave. Tel: 272-68-68 Old Jokers Director: Gocha Kapanadze Cast: Kakhi Kavsadze, Darejan Kharshiladze, Guram Sagharadze, Zaza Lebanidze, Jemal Ghaghanidze, Manana Gamcemlidze, Marina Janashia, Marina Kakhiani Duration: 140 minutes Hall: Small Stage Time: 19:45 Price: 15 - 20 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Kote Marjanishvili Director: Levan Tsuladze, Dimitri Khvtisiashvili Cast: Akaki Khidasheli, Eka Chkheidze, Manana Kozakova, Nino Dumbadze, Lile Pilpani, Lika Kobuladze, Zurab Berikashvili, Dimitri Tatishvili, Varlam Korshia, Roland Okropiridze, Nika Kuchava Duration: 180 minutes Hall: Big Stage Time: 20:00 Price: 6 - 16 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 The Caucasian Chalk Circle Director: Avto Varsimashvili Cast: Sandro Margalitashvili, Jaba Kiladze, Giorgi Jikia, Tamuna Nikoladze, Mariam Jologua, Tiko Kordzadze, Apolon Kublashvili, Goga Barbakadze, Marisha Kitia Duration: 240 minutes Time: 19:00 Price: 5, 10, 15 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 Haraleti, haraleti Director: Nugzar Bagrationi-Gruzinski Cast: Nineli Chankvetadze, Rusudan Bolkvadze, Gia Abesalashvili, Anri Bibineishvili, Malkhaz Abuladze Duration: 140 minutes Time: 19:00 Price: 10 GEL V. Abashidze State Music and Drama Theatre 182 Agmashenebeli Ave. Tel: 234-80-90 A Midsummer Night’s Dream Director: David Doiashvili Cast: Buba Gogorishvili, Kakha Kintsurashvili, Archil Sologhashvili Time: 19:00 Price: 15 GEL Royal District Theatre 10 Abesadze Str. Tel: 299-61-71 Streap-Tease Director: Nika Tavadze Cast: Paata Inauri, Data Tavadze Duration: 70 minutes Time: 20:00 Price: 7, 10 GEL Akhmeteli Theatre 8 Vekua Str. Tel: 262-54-37, 262-59-73, 262-61-97 Black Sneakers Director: Dimitri Khvtisiashvili Cast: Tamar Tkemaladze, Ana Matuashvili, Tamar Bezhuashvili, Salome Tsurtsumia, Mamuka Mazavrishvili, Imeda Natroshvili, Kote Mzhavia, Vaso Shikhashvili Duration: 80 minutes Time: 19:00 Price: 7, 10 GEL A. Griboedov Russian State Drama Theatre 2 Rustaveli Ave. Tel: 293-11-06 Christmas Tale Director: Vakhtang Nikolava Cast: Mikhail Arjevanidze, Apolon Kublashvili, Karina Kenia, Ludmila Artyomova-Mghebrishvili Duration: 70 minutes Time: 12:00 Price: 5 GEL Gabriadze Theatre 13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 The Battle of Stalingrad Marionette Theatre Author and Director: Rezo Gabriadze In Russian +10 years Time: 19:15 Price: 5, 10, 15 GEL

4

Gallery

“Erich Mendelsohn. Dynamic and Function. Personified contemplates of Cosmopolite Architect”. Tbilisi Goethe Institute, Georgian National Museum, Tbilisi History Museum presents exhibition of IFA “Erich Mendelsohn.

Dynamic and Function. Personified contemplates of Cosmopolite Architect”.

Tbilisi Museum of History (Karvasla) Exhibition opening: 17:00, December 15, 2012 8 Sioni Str. Tel: 292-32-27 (Museum is working every day except Monday. From 11:00 till 17:00)till - January 20 Niko Pirosmani Anniversary Exhibition - “Pirosmani - 150” D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:0018:00till - March 30 Lado Gudiashvili exhibition “Promenade” is presented at the Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 http://lgexhibitionhall.info-tbilisi.com/till - May 30 Exhibition “New Life of Eastern Collections”.

On Exhibition will be presented masterpieces of eastern collections reserved in Shalva Amiranashvili Art Museum of Georgian National Museum Simon Janashia State Museum 3, Rustaveli Ave. Tel: 299-80-22 Museum is working everyday except Monday. From 10:00 till 18:00till - December 30

For more information, please, visit the following website:

www.info-tbilisi.com E-mail: afisha@info-tbilisi.com

CMYK

22

HEADLINE NEWS & ANALYSIS

socially responsible companies

FINANCIAL

17 December, 2012 | finchannel.com

Bank Republic: “Each of Us Matters” The FINANCIAL

By Nana Mghebrishvili “Building team spirit together” is the communications campaign of Société Générale, based on a strong and engaging signature vis-à-vis all of its customers and employees. This campaign is part of the SG transformation programme, whose goal is to make Société Générale the reference for relationship banking.

“Having begun in 2010, this programme plays out in multiple projects around customer satisfaction, a new culture of management and the fine-tuning of the Bank’s operational model,” said Christian Carmagnolle, CEO of Bank Republic. “Today, these projects, which mobilize all of the Group’s employees, are producing their concrete results. Société Générale is now ready to share this transformation and progress with the public, and express its commitment to mobilizing its performance towards customer service.”

“For Société Générale, the bank is first and foremost a service company, and the customer relationship will always be at the heart of this service. This conviction is the basis of the new Group signature. The promise of ‘building team spirit together’ gives a complete sense of the modern relationship that the Bank hopes to build with its customers a balanced, long-term relationship where the Bank works alongside its customers to help them succeed in their projects and to progress with them.”

“Building team spirit together described above is also the internal motto for the transformation undertaken by the Group members, including Bank Republic,” Christian Carmagnolle said.

Q. You aim to strengthen the position as a brand focused on the relationship with your clients and stakeholders. Why is it important? How will this influence your business?

A. Combining skills, initiating synergies, pooling resources and best practices, to ultimately improve the company’s customer service the message is as rich in meaning for employees as it is for customers.

Beyond the transformation underway, team spirit is a strong value at Société Générale, anchored in its managerial culture and practices; as a universal value, it has the potential to unite all of the Group’s employees throughout the world.

Bank Republic has developed its motto “each of us matters”, meaning that each employee and customer can create a unified team with common goals, where the success of each member is not only his/her own but everyone else’s. More precisely, team spirit is a campaign about identity with a long-term view. The idea behind the slogan “Each of Us Matters” represents an inclusive approach and includes our clients as well as our bank employees. When the team principle is applied, it is especially important for each participant member to understand and embrace a common direction, to share similar values and to strive towards a common goal. It is particularly emphasized that each Bank Republic Société Générale Group employee is as important and valuable as each client is; the roles and functions of all employees are critical for the existence of an efficient, well-run operation. In other words, our bank’s success depends on the aspirations of each individual unit and depends on a collective team spirit.

The new brand strategy of Bank Republic aims to strengthen its position on the market as a socially responsible financial institution, whose goal is to offer its bank customers (both individual and corporate customers) banking products that are tailored to their financial capacity, needs and life’s pace. As such, Bank Republic carries out and will continue to undertake educational activities that help our customers manage their finances more efficiently. The concepts of social re-

Christian Carmagnolle, CEO of Bank Republic

“We believe that it is by working together with our customers and within the company that we will build the reference for relationship banking. We are mobilizing all of our energies and resources to meet this ambition.

We know that customer satisfaction cannot be decreed; it is earned through sustained deeds and action: this is the meaning of our transformation programme and our new campaign. It unites us and drives us to succeed.

This is how we perceive our profession as bankers; this is how we will be useful to our clients and to the economy, in a world in upheaval,” said Frédéric Oudéa, Chairman and Chief Executive Officer of Société Générale.

sponsibility and team spirit are embedded in our mission and vision as well. We will continue caring about our customers, but we will take a more systemized approach, which will reflect on further success of our business.

Q. In your opinion, how can the new strategy support the Bank’s financial growth? How much growth do you expect in the upcoming months?

A. At this stage, reaching certain financial goals as a result of the campaign is not our primary goal. As the Team Spirit approach is based on a long-term view, we do not expect returns immediately or in the short run. It is important that our stakeholders truly understand and comprehend our new approach. When this is done, this will reflect on our figures as well.

Q. How can customers and their increased role support the Bank’s development?

A. The progress and success of each of our customers positively in-

fluences other counterparts. Bank Republic, who aims to become a reference bank, according to the Group’s global strategy, will continue and further strengthen its mutually beneficial relations with its customer.

We offer our clients more than just the best interest rates for their loans and deposits or simply a single specific product. The defining principle of our strategy is to satisfy our consumer in the long term by promoting a close relationship with our bank so that they look at us as their partner and feel comfortable applying to us whenever they need in the future.

Our customers will have a designated banker whom they can call any time to ask for advice, who will be their contact person at the Bank and who will help the clients make financial decisions that will be useful for them. This way we can avoid cases where clients are in a difficult situation as a result of excess indebtedness.

As a socially responsible bank,

we have not only now begun caring about our customers, but according to the new approach, we will be more consistent in keeping them satisfied. They are not our debtors, they are our partners. This measured approach applies to both retail and corporate customers alike. Most importantly, consumers will feel an individual approach and at the same time feel themselves as part of one big team they form together with the Bank Republic Société Générale Group.

Our branches will soon be equipped with the so-called open cash desk where there will be practically no barriers between a client and a banker, which will consequently strengthen the customer’s feeling of being a member of the team.

Q. How important is CSR for the Bank?

A. Corporate Social Responsibility is embedded in the daily business of Bank Republic. CSR is about business behaviours and earning the trust and loyalty of stakeholders. BR

has established a strong image as a socially responsible institution in Georgian society. BR is guided by Corporate Governance Code, making the Bank’s governance process more transparent and showing that the Bank is committed to the best principles of corporate governance.

CSR is a guiding principle in the Bank’s lending activity, risk management, quality control, human resource management, environmental awareness of staff and social projects. Pursuing its long-term tradition to support Georgian cultural heritage, BR supported important cultural and educational events during the year, including the first-inGeorgia exhibition of the immigrant Georgian artist Vera Pagava, support of the development of Georgian art and culture (Long-term partnership with Marjanishvili Theatre), various social projects for people in need, successful project launched in 2012 “BR and Contemporary Art” in bank premises (promotion/support of young Georgian artists).

On its behalf, BR continues supporting initiatives within the framework of Citizen Commitment Week, which includes blood donation, collection of first necessities and cash in certain occasions and participating in the cancer awareness project Race for the Cure.

Long-term commitment to work in the field of CSR will still remain as one of the strategic points for BR in respect to contributing to the welfare of the society where it operates. BR remains loyal to socially responsible business activities and reports about it to the public, customers, shareholders and society at large, while adhering to the CSR policy of Société Générale.

In terms of customer relations, CSR for us means having and keeping customers well-informed. As financial experts, the Bank aims to meet the needs of each consumer and assist them in making decisions beneficial to them. It is important to provide comprehensive information to the customers and make them fully aware of the proposed products and services that the Bank offers.

This in turn will help them make better decisions and in the long run, this will facilitate increased customer satisfaction.

Q. How would you evaluate 2012 overall?

A. The year 2012 was quite challenging for the financial world. The Société Générale Group once again demonstrated the ability to maintain its earnings capacity under these circumstances due to its business model ensuring resilience to external shocks and continued stable performance of its global network of commercial banks. Bank Republic was able to generate impressive profit in 2012. The Bank offered a number of new products and special promotions to its clients. Our products always reflect the existing needs of our clients and are just in time to help them realize their financial plans.

Q. What are your plans for 2013?

A. In 2013 Bank Republic will continue focusing on the specific needs of its clients, getting to know them better and further strengthening a trust-based long-term relationship with them by offering the most flexible and diverse products and services. Bank Republic will continue to serve the SME sector offering them new products and incentives at different times of year in consideration of the business cycles. The Bank will also offer deposits that allow clients to dispose of their savings flexibly, in relevance to their goals, while earning high yields.

While continuing efforts to build the team spirit approach in all directions of its work, the Bank will implement in its daily business the three principal pillars of commercial development: network improvement (open cash desk), innovative and tailor-made products and solutions and superior quality of service.

Let me take this opportunity and wish your readers a very happy New Year!

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS finchannel.com | 17 December, 2012

23

socially responsible companies

“CSR is on the Rise Among Top Businesses in Georgia” Ketevan Vashakidze, Eurasia Partnership Foundation The FINANCIAL

By Nana Mghebrishvili

A

ccording to Ketevan Vashakidze, Country Director of Eurasian Partnership Foundation, CSR is on the rise among top businesses in Georgia however overall there is very little awareness and limited practice of social responsibility among business community in the country.

“I believe volume of CSR activities has been increasing in the recent year in Georgia,” Vashakidze said. “Local foundations, non-profits and international organizations promoting CSR have encouraged businesses to adoption socially responsible practices. Nowadays more companies in Georgia function with internationally recognized management practices including CSR that helps them in running their business successfully.

“CSR policies are usually two-fold: internal and external. I believe top Georgian companies have been improving on developing their socially responsible internal practices such as staff professional development.

Some companies have started to go beyond that and increasingly socially invest externally, e.g. support socially vulnerable groups like IDPs, children with disabilities, arts and culture.”

Q. Do you think that interest in CSR as a business model is low in Georgia?

A. I believe that there is a rising interest in CSR in Georgia.

However overall there is a lack of knowledge about strategic social investment.

In general business in Georgia is quite young and still needs to do better in terms of developing modern management

Ketevan Vashakidze, Country Director of Eurasian Partnership Foundation, CSR

systems. CSR is more advanced in larger corporation which are quite few in Georgia. The CSR activities of the well-established Georgian banks and telecommunication companies are quite visible in the recent years. I believe this is rooted not just in availability of financial resources but well-run management systems and strategic planning. The political and legal environment is very important as well. When you have very central-

ized government that sends direct messages to business community where to invest socially, it is very difficult to make strategic decisions that would benefit strategic interests of both vulnerable communities and businesses.

Q. You mentioned that CSR is more developed in large companies. Is this a global practice or only in Georgia?

A. I think that this is a general trend. Larger companies lead the

way in CSR activities and they have resources to develop it better and invest more. However there are millions of small companies around the world that start operating with this model as they launch business. There is a growing trend internationally of social enterprises, companies that generate profit to reinvest in a social mission.

Q. What are the latest trends in CSR? Are they entering the Georgian market as well?

A. I think the general trend is that companies, even small ones, are becoming more and more international. We are leaving in a globalized world that affects the way we do business or deal with social issues. Especially large international corporations understand that they can no more afford to tackle problems only locally. I think that international corporations have a clear understanding that global problems need to be solved with global approaches. Borders play fewer role in CSR activities. Another trend in CSR is investment in innovations that can come from anywhere in the world as well. Today’s world is all about innovations in every sector of economy, art or culture and of course science. The big factor nowadays is the financial crisis that certainly affects CSR volume and the ways it’s done.

I have not seen much of emphasis on global outreach or innovations among CSR activities in Georgia. I think even the most visible social investments in the arts and culture are somehow focused on traditional forms rather than experimental art. There is no much investment from business community in science either.

Continued on p. 25

UNDP Names Green Fields as New CSR Trend in Georgia The FINANCIAL

By Mariam Papidze

G

reen products are to become of high priority for UNDP in CSR in 2013, believes George Nanobashvili, Economic Development Team Leader at UNDP. “Green economy is the new area for UNDP and Government in CSR which we are going to support in Georgia. Up till now environmental protection has been the main priority and most popular trend of CSR. The latest research on green business investment opportunities has shown that agriculture is currently the most distinguished field as it is very profitable in terms of commercial value.”

“To have a successful business, it is not enough to simply fulfil functions effectively, which means to accumulate capital, pay taxes, produce quality products, create job places. Society expects more from business. At the same time CSR is the business sector’s reaction to the new requirements from society’s side. Companies should not only think about profit, but should take on more responsibilities for society and make more of a positive impact in their work on their social and natural environment.”

“Socially responsible companies integrate social and environmental concerns in their business operations to contribute to the wellbeing of employees and so-

George Nanobashvili, Economic Development Team Leader at UNDP

ciety. What a business produces, how it buys and sells, how it affects the environment, how it recruits, trains and develops its own people, how it is financed and governed, how it invests in the community and respects the rights of people, its workforce and customers - all of these add up to determine the impact of that particular

business on society. Positive and proactive action by the business sector in all of these areas has become the established practice, primarily because it has proven beneficial to all.”

“Sometimes we see advertisements on the television about the activities of different companies that surprise us as we cannot link

them to the companies’ portfolio and cannot understand why the companies would implement those projects which are not at all profitable. But for the company it is very important to be socially responsible as it improves its image in general. There are a number of possible ways to gain a competitive advantage in business, which can be achieved through having a proper and effectively safe influence on the environment.”

“We consider the implementation of CSR projects to be profitable for the companies as customers frequently pay attention to the reputation and image which usually is positive when a company follows socially responsible business practice. The customers’’ awareness is raised in terms of CSR. Therefore, CSR-friendly companies can win over other companies’ customers.”

“The implementation of CSR projects might be connected to financial resources, but it will bring benefits in the long run.

When a company has CSR initiatives, employees are more proud of and committed to the organization. This is because employees’ personal identities are partly tied up in the companies that they work for. If a company is saving the world, the employees too, so my association with the company reflects positively on the employees and makes them feel good about the work they do for the company. So, for the companies it should be important how they care about their employees.”

Environmental Organizations Urge Businesses to Protect the Environment The FINANCIAL

By Nana Mghebrishvili

B

usiness is taking very small steps in the development of environmental protection in the country. Meanwhile its role in this sphere is huge. “There are only a few large factories in Georgia but they have already caused lasting damage to the environment,” said Kakha Bakhtadze, Programmes Manager at CENN, local network of non-profit organizations working on environment problems in the Caucasus. “They need to take responsibility for fixing the damage they have already done, as well as preventing further harm by installing clean mechanisms. Only after this can companies start financing separate projects. In contrast, the factories seem to care only about their image and not about actually improving the situation.”

“I can’t recall any special or innovative project that has implemented by a business. BP and Heidelberg are the only two companies distinguished in this field as they run small grant programmes.

The most active figures in this field are the EU, the US Government, Dutch Government etc.”

“The main problem is that we don’t have adequate information about pollution. There is only one modern air monitoring station across the

The state is close to being inactive as they have no initiative. whole of Georgia, located in Tbilisi, which was installed several months ago. Control of water is very poor. The majority of woodland is also degraded because of illegal cutting. The process started in the ‘90s. There are up to 5,000 communities in Georgia and about 3,000 of them have a problem with waste processes. In short, the general situation is not at all satisfactory and all of this is being reflected in the health and welfare of the general population.”

“There are several big companies which are having a large impact on the environment. There

Protecting the environment has never been a priority of the state. were many factories during the Soviet Union which were seriously polluting nature. Some of those have even been functioning up till today without ever changing their equipment.

Legislation on protecting the environment is weakened and this has significantly supported the degradation of the country’s nature. The law doesn’t impose a big responsibility on business in terms of their protecting the environment. Economic development has been the main priority for the country for the past several years, and this has caused a lot of damage to the environment.

“Madneuli is one of the best examples of a large company that has been polluting the environment for several years. It is polluting the River Mashavera which runs through several counties.

The population living on the river uses its water for agricultural purposes. Products grown there are then distributed to Tbilisi. So polluting the water causes huge health repercussions not only among the local but also the capital’s population.

“Factories in Chiatura and Zestaponi are big polluters as well. The methods and mechanisms of their operations are unacceptable by international standards. This pollution is invisible but is causing serious health problems. Therefore it is difficult to prove that the companies are the perpetrators of the increased rate of different diseases. Allergies and several types of cancer are now more widespread as a result.”

“Emissions should be strictly controlled. Standards have to be adapted to EU rules. Managing waste needs enormous changes as we don’t even have a strategy on what we want to do in this regard. There are only two landfills in the country that satisfy international standards. BP has taken responsibility for both; this is an internal requirement of the company.

Fines should be determined by legislation for any type of pollution.

The main cause of air pollution is the huge host of old vehicles which are still being driven. 80-90 percent of vehicles are not running properly or safely and are producing great amounts of emissions. A system of technical inspections needs to be developed. Georgians’ mentality has to change. It would be great if people were to focus more on smaller, eco-friendly cars and not buy large jeeps. The state could lead by example, by buying smaller cars. The Government could have only a couple of big cars for special occasions.

Bicycle lanes could be created but the development of small motorbikes is more realistic. This is a well-established practice in many countries.

CMYK

24

socially responsible companies

HEADLINE NEWS & ANALYSIS

FINANCIAL

17 December, 2012 | finchannel.com

Advertiser: Vellagio. Contact FINANCIAL Ad Dep at marketing@finchannel.com

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS finchannel.com | 17 December, 2012

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socially responsible companies

GAA Holding - 20 Years in Service The FINANCIAL

By Mariam Papidze

A

s a result of 20 years of work, advertising company GAA Holding has created a stable advertising market in Georgia, according to Gia Alikhanashvili, the President and founder of the Holding. Starting from zero GAA Holding brought innovations to Georgia and, as its slogan says, created modern standards on the market.

“I and my team’s achievement is that there is a good, stable advertising market in Georgia,” Alikhanashvili told The FINANCIAL. “After twenty years of experience working in Georgia we continue to contribute to the advertising market’s development in the country and offer some useful advice for the state. To develop middle business, rapid increase in sales and increase in turnover is necessary. For this it is important to conduct a sales promotion campaign.

Promulgating a law as soon as possible will be helpful for conducting a sales promotion.

We are ready to participate in these processes. For this reason my colleagues and I are going to establish an association of advertising agencies in the nearest future. The association will work on improving advertising law in cooperation with the state. Another issue is that the market is partly monopolized from time to time. That should be suppressed,” he added.

Q. GAA Holding is celebrating its 20th anniversary this year. Could you please summarize the company’s activities in Georgia?

A. Staying in business for 20 years is one of the biggest achievements as it has not been easy, especially in the years 1992-2012. We tried to keep balance and have maintained neutrality. In the management is same team of people after 20 years who we had at the beginning of our activity. Therefore, we are at-

tracting young people to our staff force. After moving in and up the chain they then give consultations to new arrivals. This is a constant process at our company. 250 people have been working at GAA Holding in three countries - Georgia, Armenia and the United Arab Emirates.

Their number will soon reach 300. We have implemented many good projects and have the best plans for the future.

First of all this depends on investments and also on local investments. We have carried out negotiations with so many multinational companies on entering the Georgian market. Every investor looks at the political situation and economic parameters and then decides whether to enter the market or not; especially when it is about a small country where political and economical directions are often intertwined. And Georgia often faces different political and economical crises.

In these conditions KEDI Studio was able to become a partner with McCann Erickson, the American advertising agency, for the first time in Georgia. By that time we have already had a well-developed team and quite a few clients.

Coca-Cola, one of our clients, supported us in being selected

by McCann Erickson as their partners. From 1998 this partnership underwent great changes and finally two agencies, UM Georgia and Momentum Georgia were added to McCann Tbilisi Group.

Nowadays three agencies provide full advertising service to McCann networking clients as well as local and international ones.

I recently started formation of an office in Armenia as we have been working on that market for ten years. We will open a new, modern type office in Armenia on the anniversary.

We can offer advertising and PR service to our customers in 133 countries through the network of McCann. This is useful for local entrepreneurs and for the state for representing their image and

Gia Alikhanashvili, the President and founder of GAA Holding

GAA Holding has been operating a union of business and marketing companies in Georgia since 1992. It was the first advertising company on the Georgian market with whom American and international companies started cooperation. Year after year the company integrated different international companies.

The companies united under GAA Holding today, are: Torrent FZCO Dubai, SENA MOTORS, McCann Erickson Georgia and Armenia, Advertising Group BAGEBI, MPG Georgia and Armenia, Star Group and MSG - Internet Media Marketing Agency. All the companies cooperate with local as well as international companies. In total 250 people are employed in the Holding.

tourist potential. Unfortunately this opportunity was not used before and the state was appealing to different foreign companies directly and a lot of money was spent on it. Local representatives and Georgian professionals remained unemployed. Today it is time for the method of approach to be changed and more locals to be employed, who do not have less knowledge, potential and contacts.

The money that the state pays for others is mainly collected from our taxes.

There are other companies represented in GAA Holding, which cooperate with more than 500 international and local companies. Such cooperation gave us the skills that not everybody has on the market.

Q. You have two other business directions – AUTO Business and General trading. What are the achievements in this regard and what are the future plans?

A. The company LTD Sena Auto Service has been operating on the market since 2006.

It has brought to Georgia Japanese producer Mitsubishi Motors and Suzuki Motor Corporation. From 2008, during the crisis in Georgia we interrupted this business for a while and turned to the auto service sphere. The reason was that the sales of new cars actually stopped. From that time the company has been developing the following brands on the Caucasian market: American brand POLARIS , NIPPARTS from the Netherlands, ENOC –premium quality lubricants from United Arab Emirates.

We have renewed cooperation and as a result Japan’s Honda Motor Company will enter the Georgian market in 2013. Its auto dealer will be SENA Motors LTD. We are already getting orders for the 2013 models. The Honda 3S auto centre will soon be opened.

Chinese premium brand Great Wall Motors and Japanese SUBARU are already available for sale in Georgia.

Despite the high competition we are starting to fulfil all our plans and hope that everything will develop successfully.

GAA Holding unites the interesting and cheerful threeyear old brand Radio Star FM 93.9. It has the biggest audience numbers, all people who want to entertain and listen to good music. We will soon be offering new shows to our listeners.

Q. As you manage some companies in Armenia as well, could you please compare the Georgian market to its neighbour markets?

A. Activities in Georgia are the most simple for the local private sector as well as for international organizations.

Usually there is such bureaucracy involved in starting a new business in many developed countries that even businessmen do not have any desire to do business. In Georgia it is the opposite starting a business is simple, continuation is more difficult and cancelling a business is almost impossible. These are the problems that lots of investors complain about. Unfortunately none of the governments have improved this issue.

Also one of the problems Georgia should solve is the very large and unfair fines for businesses as well as private entities.

Administration is in electronic form, a lot of innovation is being implemented in terms of monitoring. The vicious relationship between the state and business has been eliminated. Neighbouring countries are backward in this regard and they admit this fact. Though Georgia brings a lot of innovation to the region.

I would like to take this opportunity to congratulate all of our employees on the 20th anniversary of GAA Holding and wish them further development and success! Also, I would like to say thank you to all of our customers and suppliers for their kind cooperation with us.

“CSR is on the Rise Among Top Businesses in Georgia” Ketevan Vashakidze, Eurasia Partnership Foundation Continued from p. 23

Q. Do you think that the CSR message is only being heard and acted upon by large companies? Why should small and medium businesses implement CSR activities?

A. If well planned and executed CSR is rewarding both for company and community they invest in.

The main benefits of CSR are usually expanding customers’ base and making them loyal, and reducing risks. These factors are essential for small and large businesses alike.

Just to bring an example. A company is opening a hotel in a mountainous rural area. This company might want to invest in training local community to equip them with skills to be employed or produce goods that will be procured by the hotel or attract more tourists to the location.

Q. What is your general advice to companies in terms of CSR? A. Probably the only advice I can give is to be strategic about social investment as they are about their general business practice. They have to evaluate how to get maximum social impact and also gain businesswise from their strategic social investments. Often companies decide not to run external CSR activities themselves but trust their funds to non-profits that are experience in delivering social impact.

Q. Which direction of CSR is the most important for Georgian companies?

A. I think this should be strategically decided by each and every company. However, overall one of the most pressing problems in Georgia is unemployment. One of the main aspects of this issue is lack of marketable skills. I believe businesses in Georgia can play very important part in invest-

ing both financially and technically in developing entrepreneurial and other employable skills.

Q. Which are the best and worst CSR practices in Georgia?

A. The most basic practice is when a company decides to place CSR functions under a sales department. As far as I am aware this is quite a common practice in Georgia. . Companies do a little better when they place CSR under their marketing departments.

There is general acknowledgment that social investment should not merely benefit communities but business itself as well. However it looks really indelicate when company links it CSR activities directly to sales. It becomes clear that there is lack of strategic thinking in such a company.

Q. Do you think that CSR should be compulsory by law? This is an ac-

cepted practice in many countries.

A. I am not a supporter of “compulsory” investments even if they are socially oriented. I think at this stage we need to promote the concept of CSR as widely as possible among Georgian businesses.

They should acknowledge that being socially oriented is both their responsibility as members of Georgian society and also is beneficial for their business. After the CSR is more practiced and better develop, business community itself can advocate for special guidelines to regulate the rules of the game. Right now there are certain clauses in the tax code that in theory encourage corporations to make charitable donations, however they have not motivated businesses to invest more and they have not been used widely either.

Q. How can CSR be further popularized in Georgia?

A. With multi-stakeholder public-private partnership efforts. The government, international organizations, non-profits and of course the business community in Georgia should more actively and rigorously work on promoting CSR and sharing good practices. I believe the role of business associations is very important in encouraging their members to disseminate knowledge about CRS practice and share their best experience.

Q. What kinds of activities does Eurasia Partnership Foundation implement in terms of CSR? We have implemented many activities in this direction.

In partnership with business associations we have held introductory presentations and trainings for company representatives. Right now we are trying to involve them more actively in our social projects.

Most recently EPF’s Social Enterprise project activities

resulted in a multi-stakeholder public-private partnership project of four leading business school students vigorously engaged in finding profitable business solutions for NGO community and social mission oriented enterprises (EPF partner NGOs promoting the concept and non-profits working on disables' issues), business community (Magticom, Alliance Group Holding and Aldagi BCI) contributing by recognizing student teams’ achievements by providing prizes and internships, business chamber (Association for Small and Medium Enterprises) providing free tax and legal consulting services to the participating student teams and social enterprises, and Tbilisi municipality’s commitment to provide the newly established social enterprise with funding in the form of low interest credit under the municipality’s special program.

CMYK

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HEADLINE NEWS & ANALYSIS

socially responsible companies

17 December, 2012 | finchannel.com

Green Party Names the Worst Polluter Companies The FINANCIAL

By Madona Gasanova

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he Madneuli Complex in Bolnisi, Nitrogen Plant in Rustavi, Ferro Alloy Plant in Zestaponi and small-sized enterprises that produce cement in small villages of Kaspi are the main sources of pollution in modernday Georgia, according to Giorgi Gachechiladze, Leader of the Georgian Green Party.

It was in the ‘90s that the Georgian Green Party was first represented at Parliament. It was involved in all the major legal reforms on environmental protection at the time; among them subsoil law, animal protection, water, air, radiation and nuclear safety. In the last ten years the Georgian Green Party has had no representation in the Georgian Parliament and has therefore had little influence on decision makers. This has negatively contributed to the country’s environmental situation.

“Entrepreneurs will not voluntarily take responsibility for their impact on the environment which is why obligation by law is necessary,” said Gachechiladze.

“Company Madneuli, a gold processing factory, paid GEL 13 million to officials to be released from all liabil-

“It is a fundamental human right to be able to live in a clean, safe environment,” said Gachechiladze.

ity towards the residents of the Bolnisi region. Bolnisi is well known as being a hotspot for pollution. Contaminated toxic waste goes into the river Mashavera which is used as irrigation for fourteen villages. The polluted environment causes devastating diseases. This is a clear example of how if an entrepreneur knows that they can be cleared of culpability then they will not feel any responsibility for protecting the environment,” Gachechiladze believes.

Sadly, environmental responsibility is the last thing that Georgian companies feel the need to protect, a recent survey run by the Center for Strategic Research and Development of Georgia (CSRDG) showed.

However, there were companies with

whom the Green Party reached agreement; one of them being Heidelberg Cement.

“The only reason why we reached an agreement with Heidelberg Cement is that it is a German company. Otherwise, we would not have been able to persuade them,” Gachechiladze said.

According to him, the Green party cannot manage to force Zestaponi Ferro Factory to admit responsibility for solving the problem regarding environment pollution in the area.

“As the legislation was totally ruined after the collapse of the Soviet Union it was necessary to implement strict regulations under such anarchy. In 1999 we finished forming this law. The legislation was also unique as it was reinforced by the Constitution. We obligated the Government to protect the environment. It is a fundamental human right to be able to live in a clean, safe environment. We inserted this law at the top of the chapter on human rights law,” said Gachechiladze.

In his words, since 2003, this legislation was completely destroyed. Emissions of toxic substances in the atmosphere, intake of water from reservoirs and its discharge when contaminated are not regulated today.

“Our nuclear and radiation safety laws were unique in the whole of Europe. We had prohibited the construction of atomic and nuclear stations.

Even Germany and France (where the

Green Party is very strong) had failed to do this. Georgia was declared a neutral nuclear territory with this legislation. Transportation, import, export and even re-export of radioactive waste were prohibited. We released this region from the risk of any radioactive disasters,” he stated.

“After the Rose Revolution, the legislation was changed. The then-government removed just one word - ‘re-export’, and permitted it. So the frequent discovery of nuclear and radioactive materials at Georgia’s borders is the result of that. Recently Turkish security officials confiscated a large amount of Russian radioactive isotopes - Cesium 137.

They had arrived in Turkey via Georgia.

After the Revolution, the legislature did not collapse entirely, but almost. If entrepreneurs are not obliged to, then they do not perform environmental CSR voluntarily,” Gachechiladze added.

“The psychology of private owners means maximum production with minimum expenditure. This means that the legislation needs to be tough.

CSR is run under moral code in western countries. Such entrepreneurs are more trusted and the demand for their products is high. The EU and USA have reached the moral level. That stage will be harder to reach in Georgia but still everyone is obligated to be involved in its development,” Gachechiladze told The FINANCIAL.

“Society Showing Lack of Demand for CSR,” Global Compact Georgia The FINANCIAL

By Nana Mghebrishvili

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SR practice in the country is in the process of developing but has seen significant improvements over the past several years, according to Global Compact Georgia.

“Awareness of CSR in the community is very low and as a result they are not demanding that companies implement good CSR projects,” said Gia Gvaladze, Head of the Steering Committee at Global Compact Georgia.

The Global Compact is the world’s largest voluntary corporate initiative that currently includes over 2,500 companies in 90 countries. It also enjoys the support of all 191 Heads of States and Governments of the United Nations. Global Compact Georgia incorporates 30 companies. Some of them are producing ones.

“These are the companies that have the best understanding and experience of CSR in Georgia. The number was higher before but it has since decreased. The main reason for leaving the union was that they didn’t do annual reports,” Gvaladze explained.

Q. Do you feel that CSR practice in Georgia is improving?

A. From my point of view, the practice is really in the process of developing. Improvements have been clear over the last 5-10 years. It’s difficult to recognize important changes in a short period however as CSR is a long-term business model. Development of CSR follows the development of the community as it significantly depends on the specific society’s requirements.

Q. In your opinion, how can interest in CSR be increased in Georgia?

A. CSR is a global trend and will be firmly established in Georgia at some stage in the future too. But at the moment it needs greater advertising.

Global Compact members are constantly discussing the ways in which it could be popularized. We see two ways: increasing awareness; and outlining the best practices. We are generating a mechanism which will distinguish the companies with the best CSR practices. It will be similar to an awards ceremony. The practice already exists globally and we’d like to establish it in Georgia as well. Global Com-

Gia Gvaladze, Head of the Steering Committee at Global Compact Georgia

pact has already tried to create such an awards system but we couldn’t complete it for various reasons, until now.

There will be different nomination categories including ‘best environmentally-oriented company’, ‘best employer’, ‘best social project’ etc. The plan has already been set out and I hope that we will soon have the awards ceremony up and running.

Establishing the practice of awarding companies with a green label will be a good incentive as well.

Q. What other activities is Global Compact implementing aimed at popularizing CSR? A. The low state of awareness about the concept itself is clear. So at first we focused on this direction and held several meetings and seminars aimed at raising knowledge in society and businesses. We have published manuals describing the main principles of CSR and how to implement good CSR practice.

We understand that this isn’t enough and therefore plan to run better awareness-raising campaigns.

There was a period when we were more active but we didn’t see feedback from our activities. Therefore Global Compact lost its momentum slightly but we are now restarting our active work. We will reform in a more standing union. Global Compact will maintain the principles of CSR and we will then form a more active organization which will implement these values.

We may invite a foreign or international organization in for this purpose.

The new project will be tailored to the Georgian reality. We have to find finances for the new project. Global Compact should be transparent in these processes to gain trust from society.

Q. What have the concrete results been of Global Compact’s activities?

A. Our results have not been significantly large. Progress is noticeable but it is a very slow process. The Global Compact as well as businesses should be patient and loyal to the process.

CSR is a long-term business model and short-term planning simply can’t bring about adequate results. Otherwise it will just turn into a PR campaign.

Q. Reporting is one of the main principles of socially responsible business, though very few companies in Georgia make public their financial information. In your view, what might encourage companies to start making pubic reports?

A. Transparency and making reports are very important for CSR. This doesn’t just concern financial reports.

Companies should make public any kind of progress they have made. Establishing a ranking system will be one of the best incentives for the popularization of reports. Having the best report will also be one of the nomination categories of our award. As a result interest in doing annual analyses will definitely grow. At the moment, even members of Global Compact have problems in issuing reports.

FINANCIAL

Looking at the global practice, reporting has become very popular in large and small businesses. The number of companies who report their progress publicly has increased about ten times during the last several years.

More companies now understand that this practice brings benefits to them.

Q. Do you think that the CSR message is only being heard and acted upon by large companies?

Why should small and medium businesses implement CSR activities?

A. CSR is more important for large businesses. They have a bigger impact on society and therefore have more developed management systems. They work on the impact they are having as large companies are more sensitive to society’s opinion. Still, I encourage small businesses to take advantage of all the benefits of CSR. Reporting might not be very important in this case, but protecting the environment and having a healthy attitude towards one’s staff is equally important for both large and small companies. Any business needs the growth and goodwill of its customers, and CSR is the best way to achieve this.

Global Compact is open for small businesses as well. They may have a better practice of CSR than large ones.

Small companies are somehow discriminated against in this regard because of their having less of an impact on society. But this is not the right attitude to have. Any company regardless of its size will have the possibility to take part in our awards scheme.

Q. What would you advise to Georgian businesses in terms of CSR? A. I advise everyone to run their business ethically. This can have a wide understanding and include all the principles of CSR. Complex planning is essential for the successful operating of a business. Companies should not think about planning small projects only, but must maintain a global strategy. Otherwise it will just turn into a form of PR. There are basic principles of CSR and these are necessary for all entrepreneurs. After establishing them, companies can start more innovative ideas and projects. Development itself brings about innovations. Nowadays we want companies to understand the basic concept of CSR.

Parliamentarians’ Links With Businesses The FINANCIAL

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ransparency International used Public Registry database to find out who is affiliated with business in new georgian Parliament.

Georgia’s newly elected MPs will be required to file asset declarations with the Civil Service Bureau before the end of the year. These asset declarations will likely be closely scrutinized, as there have been indications in the past that companies affiliated with MPs have benefited from government procurement and tax breaks.

“Requiring the disclosure of assets held by government officials is a key tool for preventing and discovering corruption and potential conflicts of interest, and corporate ownership information is a key piece of this disclosure. Knowing which officials have stakes in companies can help to identify conflicts of interest and prevent corruption”, Transparency International researchers believe.

However, because MPs are not allowed to serve as the director or as a member of the Board of Directors of any corporation under Georgian law, it is possible that the asset declarations that MPs eventually file will not fully reflect the connections between MPs and businesses in Georgia.

Transparency International created a copy of the Public Registry database, which contains company ownership and leadership information, in August, and it used that copy to match MPs with the companies they were affiliated with earlier this year.

TI has also used this tool to link donors to political parties with corporations.

Organization created a spreadsheet showing the affiliations of current MPs; it shows that there are prominent businessmen serving as MPs for both the majority Georgian Dream and the opposition United National Movement. For example, Gocha Enukidze, owner of IberCompany, which controls the LukOil chain of petrol stations, is an MP for the UNM, and Gogla Zhvania, Georgian Dream MP and brother of the late Zurab Zhvania, is listed as the director of LTD Bossner, which exports alcoholic beverages in cooperation with the German Bossner brand of cigars and cognac.

In total, TI researchers found that at least 36 MPs have connections to at least one corporation (10 from the UNM and 26 from the Georgian Dream; this number includes affiliations with NGOs as well). TI said this information may no longer be fully up to date because it was gathered in August, 2012, but it should provide a useful point of comparison when MPs make their official asset declarations later this year.

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS finchannel.com | 17 December, 2012

27

socially responsible companies

Small Businesses Have Insufficient Motivation to Implement CSR The FINANCIAL

By Madona Gasanova

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he CSR reputation of companies in Georgia has been progressing year after year. However, big companies still remain the chief flagman of CSR activities. “Small businesses do not have sufficient motivation to get involved in CSR,” Lela Khoperia, Programme Coordinator at the Center for Strategic Research and Development of Georgia (CSRDG), told The FINANCIAL. “Big companies wish to export their products to European markets or cooperate with European or US partners. In this case, foreign partners demand they satisfy CSR standards. Such motivation simply doesn’t exist for small businesses,” said Khoperia.

According to Khoperia, corporate responsibility is not just philanthropy. “CSR is the standard of managing a business in a responsible manner, reducing negative environmental and social impacts of its activities and enhancing the positive impacts.

In essence, corporate social responsibility is the business’s willingness to assume more responsibility than obliged by the law, deliberately go beyond its primary function of profit making, voluntarily consider the interests of their customers, suppliers, employees, colleagues, business partners and the public in general in carrying out their business operations. CSR means having a positive influence on the environment, society and macro-economic structures. In Georgia CSR is still understood as charity activity and philanthropy. CSR first started developing in Western countries in a similar way. The main noticeable change regarding the popularity of CSR in Georgia is that companies are more aware of what CSR is. They plan their responsibility

more strategically and move to more complex forms. They integrate labour standards and environmental impact management in their activities.”

Q. How have CSR standards been developing in Georgia?

A. Due to the social and economic situation the number of companies running CSR activities has not been increasing sharply. CSR largely remains the initiative of big companies.

Small companies are rarely involved in such an initiative given the social-economic conditions.

This is not unique to Georgia. It is characteristic of all developing and transitional countries.

Even in such developed countries as EU member states, involving small businesses in CSR activities is difficult. Promoting social responsibility among small businesses is strongly encouraged by governments of EU countries. Grants, trainings and other initiatives run by governments play a big role in encouraging small businesses to implement this direction. The European Commission has a number of resolutions and recommendations on how to promote and develop CSR. So, even in developed countries, due to the limited resources of small businesses, CSR activity is on a relatively small scale among small businesses. However, they satisfy the basic CSR standards, while large business companies implement quite large-scale and complex CSR programs in the developed countries. The dynamics of CSR development among large Georgian companies is evident in the quality of their work. These companies were already running CSR activities five years ago, but now they are on a different level.

Their current work is much more structured and strategic.

It is that much closer to western standards. At present we are still far from the desired standards and level of CSR that are

Lela Khoperia, Programme Coordinator at the Center for Strategic Research and Development of Georgia (CSRDG)

assimilated in the West, but the dynamic is slowly progressing.

CSR conferences and forums have become an annual initiative. When businesses present their annual CSR programmes at this conferences we then see exactly how we have moved forward.

Q. What are the main obstacles in the implementation of CSR in Georgia?

A. Today the company may spend a minimum on charity but fulfil other CSR activities.

Therefore, CSR is not only about monetary contributions. This is about how companies manage their activities in a sustainable and responsible way. Accordingly, it takes time, human resources and finances, especially in the initial stage.

One of the main problems regarding CSR in Georgia is lack

of knowledge and experience in this field. Other significant obstacle is lack of motivation for companies to get involved in a social responsibility campaign. Those actors that have historically driven discourse on responsible business practice in Western society (such as highlighting in the media, government incentives, public demand or pressure from the civil society organizations) are less developed or active in Georgia. The potential of cooperation with the West will be the main incentive for Georgian companies. But today such opportunity is limited.

If bilateral business relations develop more among Georgian and other post Soviet countries, CSR will not develop much, as those countries do not require implementation of such standards. The initiative is mainly

coming from European and American countries, which do satisfy very high standards of CSR and consequently demand the same from their partners.

At present, to export products to European markets, the quality is insufficient. EU standards require satisfying social and environmental standards of the production process. Georgian companies do not have sufficient opportunities to enter western markets. Satisfying complex standards of CSR will increase loyalty toward companies as well as improving their image.

Developing democratic values is also important for CSR. Under democratic conditions the relations between society, government and business is moving toward relations of partnership.

Society is becoming more aware of its rights.

Q. CSR is associated with an attractive environment for employees, transparency of business and protection of the environment.

Which of these steps are more satisfied by Georgian companies?

A. We ran two large-scale surveys in 2007 in order to study business practices and attitudes in CSR context, as well as public perceptions and expectations on this issue. The results showed that companies have been spending less attention on protecting the environment. They thought that if they were not responsible for producing oil or cement then they are not obligated to protect the environment. We know however that any bank or small office is responsible for environmental protection on the same scale as BP and Heidelberg cement for example.

According to the data from 2007, the most significant activities were issued for internal staff. This is natural, because motivation and satisfaction of employees is directly linked to a company’s success.

Community activities are

mainly limited to philanthropy.

However, in the context of CSR it would be better to run more sustainable, result-oriented programmes. Giving out financial aid (Simply giving out financial aid in most cases does not lead to eradication of the problem.

Community investments should be mostly oriented at long-term sustainable results). The numbers of aid-dependent people should be reduced. According to the 2007 studies, Georgian companies often to not asses social impact and results of their philanthropic donations.

Q. Understanding and implementing social responsibility standards varies by country. Why is this?

A. The difference between countries in how they implement CSR depends on the culture, economy, political systems and laws. However, understanding of the concept of CSR is mostly similar.

Q. How would you compare the level of CSR standards in Georgia with that in its neighbour countries?

A. By some parameters Georgia is ahead in the development of CSR compared to its neighbours. It is an important fact that CSR is taught as an independent discipline in two Georgian universities.

Q. What is the share of the Government’s role in promoting CSR? A. In the modern world it is widely assumed that governments should play an important role in helping businesses develop and effectively introduce their CSR policies. Tax benefits work as a stimulating measure for CSR in many countries. But this is not prevalent. The Government should implement other encouraging incentives for CSR such as arranging forums, conferences, trainings and financing the publishing of literature in this discipline. Satisfying CSR standards should be voluntary, not obligatory.

Georgian Blogger in Focus of Global Fashion Industry The FINANCIAL

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ogue, Elle, Grazia and Bazaar are some of the most famous fashion magazines and happen to be constantly writing about popular blogger and columnist of ELLE Ukraine Natuka Karkashadze.

Some of them have called her the “Icon of Style”. Natuka is very popular among reporters, photographers and editors of fashion magazines, especially during Paris and Milan fashion weeks.

“I started writing my personal blog (wardrobe mistress blogspot.com) exactly two years ago, and it was a very interesting and productive period for me. First, what I did was a fashion styling course at London’s famous Central Saint Martins, where I had the chance to meet lots of inspiring people and attend various interesting events. I started my blog because fashion is truly my passion and I wanted to be involved in the world of fashion much more.

At the time it was my only chance, because as you know there is not even one fashion magazine edited in our country where I would be able to talk about fashion and style or just do styling projects.

“I believe that one has to be original, individual and never try to be like others.

Your way of dressing must speak of your person and character. I think that’s exactly what interested the journalists, photographers and editors about me. I also tried to wear my own designs during fashion weeks in Paris or Milan, something that was new and never seen for them, which seems to have also attracted their attention. (I want to emphasize that I’m not a designer.) I’m never afraid of experiments but at the same time I always try to stay classy and don’t

As it’s the A/W season the most important purchase of the period is a coat as it can become your visit card for the season. Most of the designers have chosen the oversized silhouette for coats and I already loved it too. My favourite is the pale pink coat by Jil Sander. Baroque print and tapestry is also one of the biggest trends as seen at Dolce & Gabbana, Balmain and so on... The military trend is very influential. And as for colour, I vote for Bordeaux!

overload my outfits too much.

“My blog is my personal space where I talk about things which inspire me; I share my ideas about fashion and style with my readers and if my ideas about this field seem interesting to other people then that just makes me happy!

“I periodically contribute to Georgian magazines, but most important for the moment is that I’m a columnist of ELLE Ukraine and I’m very thankful for their confidence in me, as I have absolute freedom to talk about everything I wish and love! I also have my personal project and hope I'll be able to launch it as soon as possible. I’m doing my best to make the job I adore as profitable as possible.

“Yes, I talk about luxury brands on my blog but that doesn’t mean that I think that you are a best dresser if you wear only expensive clothes. It’s not true! It’s not important what brand you are wearing, but it is important how you wear it. Personally I’m also a big fan of high street brands like Topshop, Zara and so on. They have a really vast choice and accessible prices for every fashion lover. Mixing and matching different quality brands is something I really enjoy.

“Georgia was part of the Soviet Union for a long time, and of course there was no fashion during that period, so at the moment our fashion industry is in the process of developing. In 1947 when Christian Dior created his famous “new look” it was one of the biggest events at the time and the whole fashion world was talking about it, but we were in isolation and had no information what was taking place in the rest of the world. The history of Georgian fashion is just writing, almost every aspect of this field is free and so there are many chances to find ways to develop some innovative ideas.

CMYK

28

HEADLINE NEWS & ANALYSIS

socially responsible companies

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17 December, 2012 | finchannel.com

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