CSR Special Edition / The FINANCIAL by The FINANCIAL

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SUSTAINABLE AND RESPONSIBLE BUSINESS - NEW EUROPEAN POLICY

C Activities Increasing CSR G Gurieli Customer Loyalty

Grant Thornton’s Advice to Companies

See on p. 16

News Making Money

December 19, 2011

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RAZIDOR CODE OF BUSINESS ETHIC See on p. 8 TBC BANK THE BEST CORPORATE CITIZEN OF GEORGIA See on p. 10 THE CSR ACTIVITIES OF GEOCELL See on p. 14

BUY NATAKHTARI LEMONADE AND HELP CHILDREN DEPRIVED OF PARENTAL CARE See on p. 19

GEORGIAN SOCIETY UNAWARE OF THE SOCIAL RESPONSIBILITIES OF BUSINESSES See on p. 22

TEGETA MOTORS CELEBRATES ITS 16TH ANNIVERSARY

see on page 23

CSR

See on p. 13

http://www.finchannel.com GEORGIAN WEBSITE

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Socially Responsible

companies The FINANCIAL By NANA MGHEBRISHVILI “Business ethics is still a must”. According to Michael Cowgill, President of Georgian-American University, Eurasia Partnership Foundation is supporting the development of a new CSR course which will be taught in the leading Business Schools in Georgia.

AmCham is now the official representative of the UN Global Compact Georgia Network aimed at fostering a sound CSR culture throughout Georgia. The United Nations Global Compact is the largest corporate social responsibility initiative in the world, encompassing about 7,700 members in 130 countries. Continued on p. 21

the most active micro financing organization which operates in the regions. Our activities in the direction of agriculture are equally profitable for the company, for society and for the environment.” Last week The FINANCIAL talked with Mr. Lebanidze. Continued on p. 4

Madneuli Spent 1,000,000 GEL on CSR Activity in 2011 See on p. 6

See on p. 25

“CSR Can Bring Profit, Reduce Risks and Enlarge the Market” The FINANCIAL By NANA MGHEBRISHVILI “It’s evident that CSR isn’t very developed in Georgian companies, but the sector has experienced progress during the last five to ten years,” said Keti Vashakidze, Director of the Eurasia Partnership Foundation. “Businesses interpret social responsibility in two directions. The first is how they treat their staff and the second, what they do for the environment. Both directions of CSR are starting up nowadays in comparison with other, especially Western, countries.

Keti Vashakidze, Director of the Eurasia Partnership Foundation

Caring for staff is one main principle of operating for

western companies. This is determined at the time when businesses start. But such an attitude is reached through the time and effort of special unions and organizations. A similar attitude for socially responsible companies doesn’t exist in Georgia. There are several big companies including banks that are socially responsible regarding their staff. This means that companies have adequate working hours, involve their staff and employees’ family members in different programmes including insurance programmes. Continued on p. 3

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FINANCIAL

DECEMBER 19, 2011 | FINCHANNEL.COM

socially responsible companies CSR SHOWCASE, December 19, 2011

LIVE PRESENTATIONS FOR MEDIA DECEMBER 19. 12.00 TBILISI, COURTYARD BY MARRIOTT

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it peaked at 14.3%. Ever since it has been declining in a consistent fashion, reaching 1.9% in November 2011. We expect both CPI and Kh-Index to pick up in December due to seasonal production and consumption patterns, however it is very likely that annual inflation will be very close to zero at the conclusion of 2011.

he values of monthly November inflation in both CPI and Kh-Index were very close to each other (0.69% and 0.72%, correspondingly). Even more surprisingly, CPI was up by only 1.9% in yearon-year terms (compared to November 2010) which is exactly equal to the year-on-year inflation in Kh-Index. This is the first time since 2008 that these two indices have identical values. Our expectations about very low annual inflation in 2011 appear to be justified. Just to remind our readers, year-on-year inflation in Georgia has been increasing since June 2010 till May 2011, when

ECONOMIC LESSON OF THE WEEK: A CIGARETTE A DAY KEEPS THE DOCTOR AWAY… IN GEORGIA

This year’s Transition Report prepared by the European Bank for Reconstruction and Development (EBRD) is focused on people. The main question addressed by the report is how people – citizens of all transition nations, UK, Sweden, France, Italy and Ger-

many – adjusted consumption behavior and attitudes to “market economy” and “democracy” as a result of the 2008 financial crisis. This week, EBRD presented its findings at a public seminar hosted by the International School of Economics at TSU, and, quite naturally, devoted considerable attention to Georgia. Our lesson of the week considers only one question addressed by the report, namely, how people adjusted their consumption patterns when facing economic hardships. As could be expected, as a result of the crisis consumption fell for all types of goods and services across all countries in the EBRD sample. However, there are very significant differences among Western European and transition region countries. In particular, many more households in transition countries report a reduction in the consumption of “staple food” such as bread, milk, eggs, sugar, etc.: 39% compared with 11% for Western European nations. In the West, the crisis has mainly affected consumption of luxury goods (reduced by 32% of

households). Georgia appears to be hit the hardest: more than 65% of Georgian households had to reduce consumption of staple food. Another consumption item that was sacrificed (or neglected) by many Georgians is healthcare. More than 45% of surveyed households report having to postpone or skip visits to doctors. This share is four times(!) higher than the transition region average (slightly more than 10%) and more than 10 times(!) higher than in Western Europe (about 3-4%). Even more striking in this context is the fact that while cutting on food and healthcare expenditures, Georgians refused to adjust their smoking and alcohol consumption. Only 6-7% of Georgian households report a reduction in the consumption of alcohol and cigarettes, compared to about 12% in the West and 21% in the transition universe. Apparently, many Georgians believe that a cigarette a day can help keep their doctors away. For now, at least.

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FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | DECEMBER 19, 2011

“CSR Can Bring Profit, Reduce Risks and Enlarge the Market” Continued from p. 1

Q. How can companies in Georgia benefit from social responsibility projects? A. Through strategic social investments. Eurasia Partnership Foundation is oriented exactly on the development of such investments. This significantly differs from charity. Businesses often give to charity and this is included in companies’ marketing plans. Charity makes companies more popular and attracts more customers. But this is short-term and the results don’t last for long. More developed countries and companies tend to do strategic social investments more than charity. ‘Strategic’ means that the investments are long-term. They help society with their knowledge and experience. They try to increase community involvement in their activities. This is an investment for the company and not charity. Businesses help the community and as a result the community helps the business. There is one good article in the Georgian legislation in terms of social activities and charity. After paying all taxes, if the company spends eight percent of the whole profit on social projects and charity, this eight percent isn’t taxed. Q. Do you think that companies in the same sector (law, consultancy, mining etc) which compete in the marketplace should cooperate together more in matters of social and environmental need? A. Of course, this would be very good and this is the way that western companies act, but in Georgia the reality is different. The legislation and labour rights don’t support CSR development in this direction. The law somehow limits companies to unite to lobby one idea. The EU is always urging Georgia to do this. On the other hand, Georgian society historically isn’t used to working together for one objective.

All entrepreneurs have to look at social responsibility as an investment and not a waste. This is long-term, reduces the risks and broadens the market Q. How does CSR affect companies’ financial success and in general can responsible business prevent recession? A. There is a financial crisis in the world and it is thought that less social investments should be implemented. Some entrepreneurs think that the market is shrinking and they have to spend money wiser. But big businesses are not reducing social investments. Vice versa, social projects prevent entrepreneurs from experiencing the financial crisis. Stopping the market from shrinking isn’t a major factor against the crisis. Raising risks are dangerous as well and social projects help them to decrease the rate of risk. I can give an example of this. A company wants to build a hotel in a mountainous region of Georgia, which is a very prospective place but the population of the region isn’t sociable. So the company has to win over the loyalty of the people. They will definitely have to employ some people, so increasing their knowledge will be a strategic step from the company. Tourists would like to buy traditional handicrafts. Investing in the production of handicrafts will be profitable both for the company and the community as well. Such factors importantly reduce risk factors including financial ones. Q. Do you think that companies

should invite representatives of international NGOs to provide a more informed understanding of corporate responsibility? A. Demand for trainings isn’t high. We started conducting trainings four years ago and tried to create demand for training. We wanted to make people involved in such activities. As there won’t be demand until there is no knowledge. Representatives of international NGOs would be great, of course. For the first time, we invited successful businessmen from international companies to share their experience with Georgian companies. Later we invited consultants to conduct trainings for the CEOs and managers of companies. These activities caused huge interest and the situation somehow started improving. But then the Georgian-Russian war happened and the priorities of companies and the Government totally changed. Q. What actions should companies take to protect the environment, reduce climate change and prepare for a low carbon economy? A. Environment protecting problems are very active nowadays. But this results from the hard work and efforts of environment protecting NGOs. They started operating in their home countries and later became international ones. Their intensive lobbying of protecting the environment has resulted in agreements and responsibilities taken by the states. This means that some regulations will start operating in the country. So business has to obey these regulations. The situation is very poor in terms of regulations in Georgia as well. Regulations are very few and weak, therefore almost no one implements environment protecting projects. There are several quite strong NGOs operating in this field, but they aren’t strong enough to give some directions to entrepreneurs in terms of protecting the environment. In such situations businesses are thinking only about themselves. 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. As far as we know there is only one company, BP, which annually reports their financial data. This is a really important part of being socially responsible. We conducted training on how to prepare a report. We invited representatives from the company which established international standards on how to prepare the report. But interest was very low. 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. Small and medium companies are more socially responsible than big ones. Comersant has prepared a list of the top companies in terms of CSR activities and small companies led the list. Social entrepreneurship is the best developed social business. Such companies are established on the idea of being socially responsible, they have a big profit and then reinvest the money in the social mission. In general such entrepreneurships are small or medium sized ones. Social businesses hold quite a large share in the whole economy of countries. As far as I know socially responsible businesses bring two percent to the economy of the UK and seven percent to that of Spain. In general all businesses regardless of their size have to be socially responsible. They have to look at social responsibility as an investment and not a waste. This is long-term, reduces the risks and broadens the market.

socially responsible companies

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FINANCIAL

DECEMBER 19, 2011 | FINCHANNEL.COM

LEVAN LEBANIDZE GENERAL DIRECTOR OF BANK CONSTANTA SPEAKS ABOUT GREAT ROLE OF CSR AT BANK CONSTANTA

Levan Lebanidze, General Director of Bank Constanta

“CSR is not only about moral obligations. It impacts positively on the business” The FINANCIAL by MARIAM PAPIDZE “Our choice is to financially help those people who have low incomes. Our social responsibility is to bring financial services where there is none at all,” says Levan Lebanidze, General Director of Bank Constanta. “At the moment we are the most active micro financing organization which operates in the regions. Our activities in the direction of agriculture are equally profitable for the company, for society and for the environment.” Last week The FINANCIAL talked with Mr. Lebanidze. “First of all CSR is associated with business activity for Bank Constanta. This means significant contribution to the country’s financial sector for economic development; caring about raising the living standard; reasonable funding for the lower income segments of society; to have affordable financial services for society; to improve and develop credit service. Bank Constanta wants to be a reliable partner for the state and for nonprofit organizations. Together we will create a stable social environment. The main direction of CSR for Bank Constanta is the creation of economic and social benefits for our clients and for their families. The company should protect its client’s rights. Also, employees’ social security is very important for us; life and health insurance, human resources’ research and development. Another important thing is social proj-

ects. We implement social projects in various fields such as educations, culture, sport, health and environment protection. Our mission includes social responsibility. Our company’s profile is a high quality financial service with special focus on micro and small entrepreneurs. People who have low levels of income can still access financial services. It took a long time for the world community to recognize that micro financing service brings about great results for poor people. Constanta was the first micro finance organization and has been working in Georgia since 1997. None of the companies had the same profile as us. This means that one part of society was excluded from the scope of banking services. Q. In your opinion what kind of CSR activities does society expect from Constanta? A. First of all society requires a business company to do its job correctly. This is about payments, creating new jobs, having quality products and services. Besides all these things, society expects socially beneficial activities from the company; to be interested in solving the problems which exist in society. At the same time it is very important for the business to be considered as not just a source of income and money, but as a source of development. Because the business truly can impact on the development of society and change the economic climate. The strategy and future plans of the Bank are based on its social mission first of

“Despite the fact that CSR is widespread in Georgia, currently there is no widely accepted definition of CSR. Also its definition has not been established here. A company’s goals should not only be thinking about profit. They should conduct their business according to the interests of different parts of society. Also the company and its employees is part of society. Al three parties should be involved in any project and get profit from it.”

all. According to the company’s main goal, its service should be affordable for those customers who can not use credit service. We choose such regions where there are not financial institutions. Or their number is so few that they can not satisfy the demand. In such situations we fill in the shortage, which is demanded but is not supplied.

Every company should be based on the idea that all parties must me satisfied and happy. We offer the product to society according to the demand. The company, society and environment should all benefit. If the company does not benefit, it can not offer the service next time. Demand and supply should be based on a healthy economy.

Q. What are the main projects implemented by your company within the frame of CSR? Please could you give us examples of the most successful CSR directions, which benefit company, society and environment? A. For example we are sponsors of the festival ArtGene. In 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. This is not the only way that Bank Constanta supports Georgian culture. From our page on facebook customers are able to get information about all the regions of Georgia and our traditions in them. We also sponsor educational video projects. The videos are about Georgian traditions and history as well. We believe that all these help society to evaluate Georgian culture and traditions. Q. Do you have a separate CSR department and Manager at your company in charge of CSR activities? A. The marketing department of Bank Constanta manages CSR development and implements different projects in this field. This department is functionally divided in to three directions: customer satisfaction, caring of employees and social projects. Q. Do you have a determined annual budget for CSR activities?

A. As CSR is a very important part of Constanta’s directions it is of course determined in the budget. The budget has increased compared to last year and we expect more of an increase next year as well. Q. Does the company publish summary reports from time to time and how accessible is it for society? A. It is very necessary for summary CSR reports to be accessible for society. In today’s world it is important for society to have information about the projects that the company implements. Summary reports give information to society about the significance of the company. People can get information about our projects and activities from our annual reports and this information is accessible on our website. Q. How much do CSR activities help your company to succeed? A. CSR is not only about moral obligations. It impacts positively on the 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.

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Madneuli Spent 1,000,000 GEL on CSR Activity in 2011 The FINANCIAL

adneuli is the only mining company specializing in copper production. The company’s primary focus is on copper. Over 60% of the company’s revenues come from sales of copper. JSC Madneuli specializes in open pit mining and is a holder of major licenses for mining. Company’s production makes up 10% of Georgian exports. Madneuli exports mainly to European Union countries. Currently Madneuli employs 1,080 workers.

“With the increase of renewable energy use the demand is growing for Madneuli products and accordingly prices are predicted to grow, says George Devadze, General Director of Madneuli. “JSC Madneuli is the largest contributor and participant of social projects. The company spends close to 1 million GEL yearly on CSR and charitable events. In 2011 the company spent close to 1,000,000 GEL in this direction”.

George Devadze, General Director of Madneuli

tion of equipment, on new technologies that will make

In 2011’s turnover of Madneuli is around 75 million USD Q. In your opinion what kind of CSR activities and projects does society expect from your company? A. Madneuli is well known in society as a supporter of sports, arts and has made its contributions in different spheres of society. We plan to continue our involvement in society. As part of international group Geo Pro Mining, our company has involvements with international companies so having that experience will help us in the future to come up with some innovative projects. Important priority for JSC Madneuli is environmental protection. The company has spent several million dollars on the moderniza-

the company more environmentally clean, safe and up to international standards. Our company invests heavily in the development and modification of equipment used in our operations which reduces pollution and harm to the environment. On regular bases we conduct different activities regionally where we help develop parks, plant greenery in and around our facilities and towns where our operations are based. Q. What are the main projects being implemented by your company within the framework of CSR? A. Some of the projects JSC Madneuli has taken part in include development of the Bolnisi region.

Madneuli operates in this region, therefore it takes full responsibility for being involved in its development, restoration of its historic monuments and churches. JSC Madneuli is a major supporter of Georgian sports and culture. It is the General Sponsor of the Georgian National Football team. The company sponsors different Georgian National Dance companies too. Education and child development is also important for the company. JSC Madneuli sponsors many different projects every year. The company supplies local schools with computers, school supplies etc. It helps orphanages on a regular basis. JSC Madneuli annually funds projects at the Ivane Javaxishvili State University and also funds student exchange projects. Considerably large funds are allocated for the selection of qualified staff. The company employs over 1,000 people. And for the growth of qualified staff the company has invested money in the education of staff. JSC Madneuli supports Georgian citizens living abroad: With the financial support of Madneuli Georgian minority organizations (Diasporas) received Georgian literature and

books, and facilities were built for their use. Within the framework of support of the Georgian Diaspora, JSC Madneuli contributed to the Project Association “Let Us Live Together”. One of the foremost tasks

nanced several investment promotion forums therefore. Q. How important is the key principle of CSR for your company, which means that the company, society and

“Environment is our priority but other projects in education, sports, arts and other spheres are also of great importance to us” in Georgia is the widening and attracting of Foreign Direct Investments. As Madneuli is one of the best examples of implemented investments in Georgia, the company decided to extend its responsibilities toward promoting FDI in Georgia and has participated and fi-

environment have to benefit to the same extent? A. I think we have achieved exactly this. Our involvement in social projects exactly benefits the local community, society, environment and country’s economic stability. Having a

socially responsible company is yet another indication of JSC Madneuli and Group Geo Pro mining being one of the best regarded companies internationally. Q. Do you have a separate CSR department and Manager at your company in charge of CSR activities? A. Our CSR activities are part of the department headed by Tamar Liluashvili, Deputy General Director for International and Public Relations. Q. Does your company publish summary reports once in a while and how accessible is it for society? A. Yes we do reports annually where we have an overview of all our projects. Q. Do you carry out some special CSR training? Do you invite international organizations for CSR development? A. I have attended conferences specially dedicated to CSR and from my previous experience working for a non profit organization in the United States I have a good sense and understanding of the concept of CSR and try to implement it in our company fully and I think we have achieved that and have gained a name as the most charitable company in Georgia. Q. Do you cooperate with competitor companies in terms of implementing CSR projects? A. No we do not. We have our understanding of CSR and we try to work with that. We are glad to see other companies following our example and becoming involved in such projects. Q. How much do CSR activities help your company to succeed? A. Of course such heavy involvement in CSR is great for the company. All of our activities in this regard help strengthen our environment and the countries we operate in. So having a strong economy is of course great for our company. Q. In your view, does CSR really increase the number of a company’s customers? A. In our case our customers are not individuals, our production is sold on the commodity markets. Our purpose for such activities is not the increase of customers, rather keeping a strong and healthy company. Q. Madneuli has a service of health and ecology. What does that mean? Please could you tell us about this? A. Employees of Madneuli are insured by Aldagi BCI insurance company. Two medical centres are also serving employees 24 hours at our company. Special department at Madneuli is implementing ecological monitoring in areas of our operation. Results are reported to the Ministry of Environmental Protection of Georgia.

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Razidor Code of Business Ethic The FINANCIAL By TAKO KHELAIA

esponsible business is one of the main parts of the hotel’s corporate strategy, Ekaterine Lomidze, HR Manager of Radisson Blu Iveria says. In 2010 the hotel managed to reduce water and electro energy consumption by 10%. Hotel has implemented energy saving devices. Company now is actively promoting Green Business principles among its employees and partners. According to Lomidze, the hotel’s General Manager is actively involved in responsible business activities. “Without his help and devotion we would not be able to do many projects. He always sets an example for our employees and motivates us through his own actions. Usually the success of certain activities depends on the involvement and support of the management team. Mr. Turhan has an unwritten rule: if we gather money for charity he contributes at least the same amount which was gathered by all our employees combined,” Lomidze said. Each Radisson Blu hotel has a Responsible Business Coordinator and Responsible Business Committee. The hotel has a special annual budget allocated for CSR activities. Radisson Blu Iveria has been involved in many projects in terms of CSR such as: providing the home for the elderly Satnoeba with food and different household products; participating in Earth Hour; participating in World Clean-Up Day and World Animal Day: an action held together with Dog Shelter Georgia; supporting the 2nd Annual C.O.A.T.S community outreach project; a paper recycling project for its employees. The year 2011 has been quite successful for the Radisson Blu Iveria Hotel. According to Atakan Turhan, General Manager

of Radisson Blu Iveria, the hotel has much increased its market share during 2011. Compared to last year demand at the hotel has increased by about 45-46%. “Social Responsibility is a part of our award winning programme Responsible Business. It is our company philosophy. The Responsible Business programme was designed in 2001 and ultimately guides us on performing business in a more responsible way. Besides respect for social and ethical issues within the company the programme also focuses on the health and safety of guests and employees. It is reducing the hotel’s negative impact on the environment,” Lomidze said. “Rezidor’s ethical culture and Code of Business Ethics is introduced to each employee through the living Responsible Business training programme. We are proud to have been selected by Ethisphere Institute (USA) as one of the World’s Most Ethical Companies for the second year in a row (2010, 2011),” Lomidze said. “At the beginning of each year we are required to present a Responsible Business action plan which includes activities directed toward Social and Ethical Responsibility as well as Environmental Responsibility. All this benefits the company as well as society,” Lomidze said. In terms of CSR the hotel’s Gingerbread House project can be considered one of the most innovative projects at the Radisson hotel. The project consists of two parts: the first part is decorating a gigantic gingerbread house located in the lobby of the hotel. Everybody is welcome to participate in this activity. All they need to do is bring a toy for the US Marine Corps Toys for Tots programme. “These toys are distributed among orphanages. People can also donate money to different charity organizations. This year Radisson

THE RESPONSIBLE BUSINESS PRACTICES OF THE HOTEL: We respect the law; We show respect for all persons in all situations; We think ethically; We act fairly; We do not discriminate against anyone for any reason; We are honest and transparent; We are loyal to our employer, We do not exploit the company’s resources; We think of safety at all times; We take care of the Earth. The Social and Ethical Responsibility of the hotel includes: a big choice of healthy food; fitness and wellness centre; secure environment; ten rooms for disabled guests with access to all our F&B outlets; non smoking floors.

Ekaterine Lomidze, HR Manager of Radisson Blu Iveria Hotel

helped the Red Cross Georgia Society and corporate charity organization Childhood. The second part of the project is ‘Bake, Make, Decorate’, whereby children of ages 6-9 can visit the hotel and use their imagination to decorate their own mini gingerbread houses with sweets and cookies. Each school brings us products which are sent out to the charity organization Catharsis,” Lomidze said. “We are well aware of the negative impact we have on the environment and because of that we try our best to reduce it. In general 207 hotels per day are producing the same amount of CO2 as 68,157 households and 80,184 cars. Because of that we try to reduce our usage of electricity, water and our production of waste,” Lomidze stated. “We have implemented energy saving devices -

light bulbs, timers, lowenergy mini-bars, keycard controlled electricity. Our meeting rooms have natural daylight; sensor tabs in all public area toilets; dual flush toilets; a Towel Programme for our guests; paper recycling system for our employees. The list goes on,” Lomidze stated. Responsible Business training is mandatory for every single employee of Radisson Blu Iveria Hotel. This training has to be completed within the first month of employment. “100% of our staff members as well as our casual employees have undergone this training. We also have mandatory Leading Responsible Business training for Managers and Department heads,” Lomidze said. “Even though we have not done a joint project yet we cooperate with our competitors. Social respon-

sibility is a sphere where together we can accomplish more and which cannot tolerate competition. Personally I feel huge support from my colleagues from all international hotels in Tbilisi. We have discussed the possibility of a joint project and I really hope that in 2012 we will be able to launch it together,” Lomidze said. “We are trying to develop an action plan where all aspects of CSR are covered. Part of our actions will be directed toward Social and Ethical Responsibility (covering Guests, Employees and Community) and part of it will be directed toward Environmental Responsibility,” Lomidze said. Green Business at the hotel is becoming more and more important as time passes, says Atakan Turhan, General Manager of Radisson.

“One of our main concepts is Responsible Business. Responsible Business includes the training of staff, our customers and shareholders in order to make them understand responsibility towards the community, nature and environment around us. We measure our consumption of water, electricity and waste production. We have targets to decrease them which we hope to achieve by consuming less and using energy more efficiently,” Turhan said. Due to increased demand, Radisson officials have started discussing plans for opening a second hotel in the city. There are projects being discussed within both brands of the network, Park Inn by Radisson and Radisson itself. Mr. Turhan told The FINANCIAL that hotel officials will soon have interesting news for guests.

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TBC Bank

The Best Corporate Citizen of Georgia SUMMARY OF SOCIAL ACTIVITIES OF 2010-2011

In 2010-2011 TBC Bank pursued the following priorities of Corporate Social Responsibility:

• • • • •

Renewal of historiacal and architectural monuments; Art and culture (literature, cinema, classical music, photography); Helping mountain regions; TBC Fund (aid for IDPs); Other social programs.

RENEWAL OF HISTORICAL AND ARCHITECTURAL MONUMENTS In 2010 TBC Bank financed the restoration of historic stable of royal nobleman, Ivane Bagrationi (Mukhranbatoni), in the village of Mukhrani. Along with the original design, the functions of the stable were also restored and now it is a high-class working stable equipped in accordance with modern standards and provided with appropriate infrastructure.

Churches and monasteries TBC Bank keeps up protecting and restoring historical and architectural monuments. In 2010 – 2011 the bank financed (partially or fully) the following projects:

• • • • • • • • • • •

Purchase of a piece of land for a cathedral in the eparchy of Great Britain and Northern Ireland; Improvement of living conditions for nuns at Phoka monastery; Renewal and equipping of Gudarekhi monastery; Construction of the Virgin Mary Cathedral in Poti; Purchase of bells for the Ruis-Urbnisi monastery; Construction works of Lady Day monastery in Bolnisi eparchy; Renovation of the St. Barbare monastery; Construction of the church in the eparchy of Tianeti and Pshav-Khevsureti; Construction of St. Nikoloz church in Lagodekhi; Considerable participation in creation of the century icon Hope of Georgia; Construction of David the Builder Cathedral in Khoni-Samtredia eparchy.

ART AND CULTURE Saba The 9th annual literary prize Saba was held on July 10, 2011. Today Saba is considered to be the most prestigious literary prize in Georgia and the Saba awards ceremony has become a pre-eminent literary event within the arts community. Saba was founded in 2003 by TBC Bank. The goal of the literaty prize is to reveal and reward the best

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FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | DECEMBER 19, 2011 works and authors of the previous year through nine different nominations. TBC Bank fully finances the project and also undertakes its organization and implementation. The grand awards ceremony – the culmination of the project was aired by one of the most highly-rated television stations in Georgia, Rustavi 2. Since the foundation of Saba awards, it has been given to 74 authors and the amount of awarded monetary prizes made up GEL 240,000.

TBC Gallery TBC Bank has successfully been one of the most important cultural centers in Tbilisi. Around 70 events including presentations of books, film and music albums, art and photography exhibitions, concerts and special art evenings were held at TBC Gallery last year. Today TBC Gallery is one of the most active and prestigious galleries in Tbilisi. TBC Gallery has been functioning in Tbilisi since 2005. It has gradually expanded in recent years and its affiliated galleries were open in Signagi and Batumi branches of TBC Bank and they also have become cultural centers within the regions of Georgia. Thousands of people attend the events in TBC Galleries each year which greatly contributes to the promotion of Georgian art. Since January, 2011 TBC gallery hosted several exclusive concerts/evenings in its gallery. Distinguished musicians such as Eliso Bolkvadze, Tamaz Kurashvili and Tea Chkuaseli have performed exclusive concerts specially for the TBC’s VIP guests.

Photo competition Kolga TBC Bank has financed the photo competition Kolga for seven years. The goal of this competition is to encourage and promote professional and amateur photographers and support development of photography in Georgia.

Book Publishing In 2010-2011 TBC Bank financed (partially or fully) publishing of around 10 very interesting and important books among which were:

• • • • • •

The book-album - Following Vazha’s Foot-Steps; The book - I built the Churches; Scientific edition of Georgian Encyclopedia – 100 Georgians Abroad; The high polygraphic quality album of Niko Phirosmani’s works; Catalogue of the painter Irakli Sutidze; “Polyphony of Georgian Taste” by Rusudan Gorgiladze, etc.

Classical music In 2011 TBC Bank upheld its tradition and provided financial support for the competition of young musicians. TBC Bank has sponsored this competition five years on end. The competition is organized by the Tbilisi State Conservatoire and the Fund of Musical Competitions of Georgia. The goal of the competition is to promote young performers and classical music in general.

Cinema and theatre In 2010 TBC Bank was a co-funder of the documentary – “Will there be a Theatre up there?!” by Nana Janelidze and the film - Nest by young director Tornike Bziava. TBC Bank was one of the main sponsors of the documentary about the talented young actor Niko Gomelauri. In 2010 TBC Bank financed staging of the play Secret of Macropulos by famous playwright Chapek, at the Theatre on Atoneli.

HELPING MOUNTAIN REGIONS In 2010-2011 TBC Bank supported implementation of several projects aimed at promoting mountainous regions of Georgia and supporting development of tourism there:

• The project: Development of Cultural Tourism in Khevsureti; • Renewal of the unique architectural complex - tower #1 in Shatili, Khevsureti; • Financial support of the summer tourist camp Zeta in the Kazbegi region.

TBC FUND TBC Fund , founded by TBC Bank for extending aid to the victims of the war of August 2008, actively continued its work in 2010-2011. In 2010 the fund implemented the following projects:

• Professional training for young IDPs in Tserovani. Training and professional practice is carried out in leading Georgian companies where the young IDPs will have a chance to be employed afterwards; • The project - “Healthy generation in Tserovani” – financing sports (karate) section. The goal of the project is to promote healthy lifestyle among the internally displaced children and to support their fitness. (Europe Championship in karate was held in Istanbul in November of this year and Georgian Guram Zaridze won the first price and the gold medal); • Integrated lessons in the secondary school of Tserovani. The lessons were given in English by the professors of Tbilisi State University; • Guardianship of the two children physically injured during the war; • Supporting training of young IDPs in the Akhalgori house of culture and other art circles; • Psycho-social support of young IDPs. The aim of the project is to relieve the stress the young IDPs resulted from the war and to provide psychological rehabilitation with special sessions and art-therapy; • Creation of the first ever wind orchestra of young IDPs. The project is being implemented with the support of Tbilisi State Conservatoire. Teachers from the conservatoire provide lessons for the young musicians. TBC Fund has purchased the full package of instruments for the wind orchestra and fully finances the training courses.

OTHER SOCIAL PROGRAMS • TBC Bank has recently renovated Maternity House of Patriarchy in accordance with modern standards and already 104 children were born there.

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Grant Thornton’s Advice to Companies “Socially responsible behaviour should not be an act, it has to be a habit,” says Nelson Petrosyan, the Director of Grant Thornton LLC. The FINANCIAL By MARIAM PAPIDZE Nelson Petrosyan, the Director of Grant Thornton LLC believes that many businesses in Georgia have socially responsible practices but do not necessarily qualify them under the definition of CSR. “I think though that a very positive shift is taking place and businesses are beginning to recognize the impact of CSR activity on their financial and commercial success,” he told The FINANCIAL. Grant Thornton International is one of the world’s leading organizations of independently owned and managed accounting and consulting firms. Grant Thornton offers partner-led and personalized services, in conformity with high professional standards, dedicated to the needs of the public sector and growth-oriented businesses. Grant Thornton Georgia is a multi-professional group of public accountants and auditors, specialist advisers in finance, business and management, as well as tax and legal advisers. Q. What are the main driving incentives for businesses to implement CSR policies? What are some factors that drive Georgian businesses to be socially responsible? A. Let’s look at this question from the overall perspective. Businesses are very much in the public eye as regards the ethics of their business practice. It may take years, if not decades, to build a solid organizational reputation. Now, this year, 89 percent of businesses surveyed in Georgia cited public attitudes and building brand as the key driver towards more ethical business practices. This is one key driver. The second most important driver is the recruitment and retention of staff. This indicates the importance to 86 percent of Georgian business in attracting the right staff and keeping them happy. Whilst saving the planet is considered to be one of the least important drivers of corporate social responsibility globally, this issue remains a great matter of concern for business in Georgia (81 percent), who are most concerned with this factor. Q. What is the role of CSR in the life of Grant Thornton? A. Again, let’s take a step back. First of all, it is important to understand the difference between CSR and philanthropy. Just recently, in October 2011 the European Commission published a new policy on CSR, where this concept is defined as The Responsibility of Enterprises for their Impacts on Society. This policy suggests that in order to fully meet their corporate social responsibility, enterprises should have in place a process to integrate social, environmental, ethical, human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders. Naturally, this process is closely connected to several fac-

tors, such as the size of the enterprise and the nature of its operations. In our business, in the area of professional audit and advisory services, the impacts we have on our stakeholders lies in the very core of our activity. One of the main features of CSR within Grant Thornton is the firm’s genuine commitment to encourage and sustain professional development of the staff, assist them in attaining professional qualification. Within our offices we have a multicultural and diverse working environment, with full respect for the rights of our people. Q. What CSR activities do you implement? A. When CSR becomes an integral part of the organization all activities are planned and implemented in this light. I would like to highlight one. In Georgia Grant Thornton facilitates the implementation of International Business Report (IBP) providing insight into the views and expectations of over 11,000 businesses each year across 39 economies. Throughout the year we provide the public with up to date information on such industries as cleantech, food and beverage, construction and real estate, hospitality, transport, manufacturing, retail, financial services, health care and technology. Grant Thornton donates 5 USD to UNICEF for every completed IBR questionnaire and the total donation for the period of 4 years has amounted to 188,400 USD. For the past three years already, for the purposes of reducing paper consumption Grant Thornton has shifted from the printing of hard copy greeting cards to electronic ones. We hope that this initiative will also promote similar practices among our clients and partners. Q. Do you feel that CSR practices are improving in Georgia? A. Within the frame of IBR mentioned above, we survey 100 business in Georgia, also including questions on their CSR activity and have this year issued a special report on CSR practices across the globe. In our part of the world CSR is becoming more and more widespread. In an increasingly crowded and dynamic marketplace, businesses globally are becoming more aware that adopting a proactive approach to wider corporate social responsibility issues can help them to stand out in the minds of employees, consumers and potential partners. Q. What plans does Grant Thornton have in respect to CSR for the next year? A. We are very keen to integrate CSR into all levels of our activity. We plan on joining the United Nations Global Compact in Georgia and commit ourselves to respect the ten principles of the Compact and publicly report on their implantation. Grant Thornton will continue to run the IBR survey and donate to UNICEF next year as well. High on our agenda will continue to be education and professional development of our employees as well as young professionals within our sphere. Q. What would you advise to Georgian businesses? A. It is difficult to advise since we believe CSR is a value and comes from within the organization. When it truly becomes a value, it is impossible to continue without it. So going forward in the Georgian business community, socially responsible behaviour should not be an act, it has to be a habit. At Grant Thornton we see ourselves as part of a community and have committed to be a socially responsible employer, partner and organization. We also realize the potential commercial benefits of reporting on CSR activity and encourage Georgian businesses to pay close attention to CSR in this light also. A competitive advantage exists for those businesses which can demonstrate leadership in implementing socially responsible and transparent practices and seize the opportunity to attract and retain skilled workers, build brand value and secure future contracts with multinationals who interestingly and more and more these days, adopt strict CSR guidelines in selecting their suppliers and business partners.

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The CSR Activities of Geocell M

odern local mobile communications company Geocell is committed to a number of factors, which are as follow: • To be a modern, state-of-the-art local mobile communications company. • To be an innovator on the telecommunications market of Georgia by introducing the latest technologies and a wide range of services. • Being customer-oriented. • Playing an important role in the sphere of economy development and Corporate Social Responsibility in Georgia. In the process of achieving success, it is very important for the company not to forget its most important aims: to take care of society and the country overall country and to be a part of its economic development and corporate social responsibility. In light of these goals the company has initiated many projects to preserve and save cultural heritage, to support the sphere of education and sport, to facilitate the integration of people with disabilities into society and to protect the environment. The number of Geocell projects in the aforementioned spheres is increasing annually.

In 2011 the company launched a very important project, erecting a non-commercial Geocell base station. The company installed the station on Shiraki pastures and finally resolved the communication problem for shepherds as well as contributing to the development of the whole sphere. The company continued another of its projects “We can hear you” which aims to make life easier for people with hearing impairments and to help with their integration in to society. With the support of the company, the first floor of the connection building was repaired. Two rooms were refurbished for cultural-creative events and conference meetings. This will make daily life for this category of people that much more active. Geocell continued its photo project with young photographer Ana Goguadze “Be my Ann” where ten disabled children and ten famous people came together and united around one idea. The idea remained the same - “Let’s adapt the country to the needs of disabled people”. “Plastic ruins the environment!” “Do not litter the countryside with plastic!” “Let’s take care of our environment!” - these slogans were promoted by four extreme sportsmen during an original,

effective event aiming to protect the environment which was sponsored by Geocell. In 2011 Geocell sponsored the unique photo exhibition “Gigo Gabashvili as a Photo Artist” which presented this greatest Georgian artist from a new and previously unknown side. In 2011 Geocell supported the Lazic Music Festival in Batumi, Geocell also became a friend and supporter of Telavi Vazha Pshavela Theatre. On June 1, together with Geocell, the Sun Festival was held which aims to unite all children regardless of their physical abilities or appearance. Geocell celebrated the beginning of the new academic year with the grand project “Geocell for a Successful Future”. Under this slogan, the company refurbished two ‘Classrooms of the Future’ in two public schools (in Tbilisi and Kvareli) equipped with the most up-to-date technology. The project aims to contribute to the upbringing of successful future generations. Geocell remains committed to the aforementioned directions and will offer its customers and society many other helpful and effective initiatives in the years to come as well.

GEOCELL Part of TeliaSonera Group Company was founded in September 1996. On March 15, 1997 the first mobile call was originated in Georgia through Geocell network. Today Geocell offers a wide range of services based on the most up-to-date technologies and international experience to more than 2 million subscribers. Geocell provides its customers with all the innovative services, which are available by the international GSM/UMTS standards. Most of these services were first introduced by Geocell on the Georgian telecommunication market. At present Geocell covers 98% of the populated territory of Georgia, while outside the country Geocell subscribers enjoy roaming services in more than130 countries including those belonging to TeliaSonera group, which due to being under the same umbrella, offer exclusively low tariffs to their roamers. Today Geocell enables a high speed internet based on 3G and HSPA technologies, which is available to 60% of population. Geocell plays an important role in development of Georgian economy. The total amount of investment made by the company starting from the very beginning of its operations is equal to 420 million USD. Company developed new working places. Geocell finance system operates under IFRS and SOX international standards. Company Vision: To be the modern company with local traditions. Company Mission: To provide our customers with services based on the latest technologies, make peoples’ mobile communication as simple and as comfortable as possible, to be the indispensable part of the country’s life, contributing to its economical growth and social responsibility.

Geocell is member of one of the strongest telecommunication holdings, TeliaSonera. Nowadays TeliaSonera operates in 20 countries worldwide, and serves more than 135 million people. TeliaSonera is the leader in the Nordic and Baltic countries, it also operates in Spain and Eurasian countries. International experience and level of employee development provides a leader’s position, while success is due to the world class services and network. Combination of international experience and local traditions is the key success for offering high quality services to customers. TeliaSonera was the first in the world to offer 4G and launch 3G on the Everest. A successful operation of TeliaSonera in Georgia is represented by Geocell

Osman Turan, General Director of Geocell

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CSR Activities Increasing Gurieli Customer Loyalty The FINANCIAL

By NANA MGHEBRISHVILI

ue to a solid business strategy, Geoplant, one of the leading tea producers in Georgia, known by many for its packaged tea under the brand name “Gurieli,” has managed to take over a large share on the Georgian market recently. Foreign tea importers have held leading positions for many years in Georgia, but local tea production and consumption is finally taking off. Gurieli now exports 460 tons of bulk tea to USA, Germany and Ukraine annually. Company says, commitment to corporate social responsibility is a key driver of their business development. Gurieli and Rcheuli (economy-class tea produced by Geoplant) hold 22.7 percent of the market nowadays. Before their entrance, the share of Georgian tea in the whole market was only three percent. The major tea importer countries are Azerbaijan, Sri Lanka and the United Arab Emirates. Geoplant exports both packaged and bulk tea. 200 tons of bulk tea is exported to the USA, 200 tons to Germany, 60 tons to the Ukraine and 40 tons to other countries. Packaged tea is mainly exported to EU countries. “Only 10 percent of our packaged tea is exported from Georgia, 90 percent is used in the country,” Mziko Lapiashvili, Chief Marketing and PR officer, Geoplant said. “Our goal is to decrease the amount of import of tea, and to increase export, allowing us to introduce Georgian tea , which the country has been renowned for. The process has started, and we are looking forward to observing the progress.” The company will be introducing Gurieli fruit tea in just a couple of weeks. Currently the brand produces four classic flavours of tea, but increasing the assortment will allow pleasing the customer of wider variety of needs and wants. Demand has risen for quality products, especially as various research studies have shown that the quality of some teas is low. As such, in the forecast period demand for more quality products will grow, especially as consumers will increasingly demand new flavours and will seek out novelties. Georgia produced 5,000 tonnes of tea in 2008 according to industry sources, representing a sharp nose-dive compared to the 23,000 tonnes the country produced in 2001. Under Soviet rule, according to the Statistics Department, the country produced over 500,000 tonnes of tea, serving as the world’s fourthlargest producer. However, in 2010, the performance of Georgian manufacturers

Mziko Lapiashvili, Chief Marketing and PR officer

improved. The main advantage of Georgian tea is its price/ quality balance, says Euromonitor, global marketing research company headquartered in London. The market of packaged tea is 800 tons in Georgia. But real usage of tea is much more, as people collect harvests individually and sell them at market without packaging. “For us, the center of the business equation is the customer. We have replaced the traditional 4 Ps with the 4 Cs, where product development is fundamentally based on the customer’s needs and wants. ” Lapiashvili said. “Our business is extremely community-oriented. We are happy to offer a helping hand to community service projects, exhibits, concerts, and other social activities, which, in my mind, are key to creating a sustainable, productive, and promising society. As a result, we firmly believe that Gurieli

will continue to establish itself as a customer and community-friendly brand, and naturally gain popularity among customers, suppliers, and business partners.” “A commitment to social responsibility is central to our company’s identity and purpose,” said Lapiashvili. “The company strives for authenticity, integrity and purity in our products and in the way we do business. This means doing everything for the sake of honest relationships with our employees, partners, customers, and with the communities in which we do business.” Lapiashvili says, the social responsibility is the fundamental idea behind the business itself. Geoplant employs 80 individuals during the whole year and 325 people during the harvest period. “Tea production is a seasonal activity and is considered an unstable job in many countries,” she explained. “But the way we conduct business is making sure that

our employees are occupied and motivated year-round. The idea behind leasing the land to private individuals is to motivate them, rather than expect any income out of the arrangement. We want develop a sense of ownership, instead of feeling like they are merely working for someone.” The arrangement resembles a social project of the UN in the 90s, when flour and sugar was distributed to residents of Guria to motivate them to take care of the tea plantations. As well as the work force Geoplant employs, the sister company, Geoflower also buys fruit from the RachaLechkhumi population. Geoplant is one of the few companies, which publicly publishes its financial data from time to time through no particular obligation. “Transparency of our financial data is a key aspect of our conducting business. We are really honest with our clients. We would like to communicate with our cus-

tomer,” Lapiashvili stated. Financing and caring for a small family-style foster home in Ozurgeti; a project that assists child victims of the Georgia-Russia war; and a cancer screening centre in Kutaisi are but some of Geoplant’s social projects. “The house in Ozurgeti which we have befriended is a part of the Social Service Agency project, My Family,” Mziko Lapiashvili said. “The main idea of the project is not solely to attend to the children’s day-to-day needs, but simultaneously help them with social integration, making them feel part of the community. While they participate in cultural, recreational and other activities, get a chance to learn how businesses are run, they feel their part in the community.” “We work with the ethos that we are responsible for the community. Being responsible has resulted in the production of ecologically pure tea without any herbicides or pesticides,” she continued. “We firmly be-

lieve that with every success comes the responsibility of making everyone a part of it. We are committed to the idea of enriching prosperity and health in a progressive manner, and envision achieving this through various activities in the fields of education, health and heritage. Social responsibility should be an integral part of the wealth creation process, enhancing the value of wealth creation to society. Therefore, while taking the company to new heights, we believe in imparting the same growth to the community at large.” Tea has numerous healthrelated advantages. Georgian tea is especially distinguished in terms of being healthy because of the climate in the country. Tea in Georgia is preserving its positive nature because of the natural conditions of its cultivation. Therefore Geoplant is committed to promoting the culture of tea as an integral part of a healthy and natural lifestyle. “Gurieli Tea Time, which will be launched in January, will allow young people and adults across the city to enjoy Gurieli tea free of charge for an hour. As we spread this tradition to numerous different locations across Tbilisi, we hope to promote the idea of intellectual, alcohol-free conversation after school, work, or other daily activities.” Geoplant cares about increasing general awareness about CSR in society as according to Lapiashvili, public expectations of CSR tend to be mostly towards so-called big businesses as well as from the Government. A recent UN study showed that an overwhelming majority of Georgian citizens considers big business to be almost as responsible for economic development and addressing social and socio-economic issues as the Government. Small and medium enterprises are mostly viewed as less responsible or significant in regards to this. “The future development of public awareness, which we all can contribute to, will hopefully heighten public expectations of CSR, and promote universality of the concept--regardless of size and profit. After all, we are all equally responsible for the upward mobility and growth of our community,” she claims. “The main idea behind the Gurieli brand is reviving the departed fields, contributing infrastructural development, creating jobs and generally promoting activities in Guria and Samegrelo. Our manufacturing creates value for the company and customer. We aim for our tea to be ecologically pure. From the company’s onset, we have been an environmentally conscious company dedicated to the principles of the natural production of tea. Therefore, being environmentally conscious is one of our top priorities.”

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Buy Natakhtari Lemonade and Help Children Deprived of Parental Care “Take care of future with Natakhtari lemonade”- this was the slogan of joint press conference of Natakhtari, Patriarchate and Our House – Georgia Association held at Courtyard Marriott where details of the interesting and large-scope Project, planned with Natakhtari Lemonade, were announced to journalists. The purpose of this campaign was helping the children deprived of parental care. Natakhtari Company is an active business organization distinguished by its social responsibility. Many campaigns have been conducted under its initiative, however, `Take care of future” is the first largest charity program organized for assistance of these children. Tornike Nikolaishvili, Natakhtari’s Marketing Manager: – Natakhtari has planned such a large-scope Project with Patriarchate and Our House – Georgia Association for the first time. In the past we used provide children deprived of parental care with various presents (products, clothing, invitations to celebration centers), however, we now realized that it was not sufficient and decided to think of their future life as well. After they become 18, we would like to employ them and help them in integration in the community, so that they are able to live independently. Briefly saying we don’t want to give them fish but we would like to teach them how to fish. When they get 18 and have to leave their shelters – special institutions, they shouldn’t be left in a street. They need to start full life. This project is not one –time short-term project, we are planning to implement several interesting plans. – Will the Project be financed by funds derived from product sale? -Yes, From November 15

Tornike Nikolaishvili, Marketing Manager of Natakhtari

through February 15 from each bottle of sold lemonade, in particular, 1 Tetri from 0.5l bottle, 0.3 Tetri from 1l bottle, and 0.5 Tetri from 2l bottle will be allocated for project funding. We shall see how active the public will be and what amount will be collected during this period. This problem will not be resolved only in 2013, as it is currently very acute. Therefore, it is necessary that the public, as well as media gets active in order to help children. We will prepare reports on collected funds. Authenticity of the amount and its corre-

spondence with the sold products will be confirmed by Price Waterhouse Coopers, the world’s N1 audit firm. – What do you expect from this project, what amount will be collected? – It depends how informed the public is. According to our forecasts, approximately GEL 100,000 will be collected. However, everything depends on activity of your colleagues and we would like to thank you very much for your interest. Sylvia Borovets, Polish Repre-

sentative of Our House – Georgia: – The program similar to Natakhtari project format has not been implemented in Georgia yet. This is the first one and we all hope that Georgian society will not stay indifferent towards the children deprived of parental care… In Poland many such projects are successfully being implemented under the initiative and with participation of local companies. Lela Merabishvili, Representative of Our House Association: – Commencement of this project is very important for children

deprived of parental care, as each of them needs our assistance. This campaign will allow us to create better future for them. Abandoned children need normal, comfortable family environment, which, unlike kids grown up in common families, is a colorful dream for them. In the event of public activity and support, this project will enable us to teach these children not only craftsmanship but also give them opportunity to study at vocational institutions; so when they become 18, they can make choice to acquire the profession in which they are most talented. Afterwards they will be able to live independently and cope with problems. Our goal is also to assist children who are not able to work. This will not be team teaching or employment principle. An individual approach will be taken in case of every child to find out what they can learn and do. Of course, this is related with big problems and finances, but hopefully with the public support we will manage. Father Shalva Kekelia, Dean: – I would like to thank Natakhtari for such a merciful endeavor, as well as Association Our House. I would like to tell the public that taking care of others is a great mercy. A person has hard time when he/she becomes 18 years old and is left in front of problems alone. And it is extremely painful for parentless children. Can you imagine how hard it is when a person has occupation but is unemployed? It is twofold hard when you have neither occupation nor a job. Very often, His Holiness [Patriarch Ilia II] mentions in his sermons that ‘it’s not necessary to give man a fish, more important is to teach him how to fish. May God enable everyone to do such goodness.

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FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | DECEMBER 19, 2011

socially responsible companies

“There is Need for Courses in CSR,” R. Michael Cowgill “Although I don’t believe there is yet a market for a degree in responsible business practice, there is definitely the need for courses in the subject,” R. Michael Cowgill, AmCham's CSR Committee Chair

Michael Cowgill, President of Georgian-American University

The FINANCIAL By NANA MGHEBRISHVILI “Business ethics is still a must”. According to Michael Cowgill, President of Georgian-American University, Eurasia Partnership Foundation is supporting the development of a new CSR course which will be taught in the leading Business Schools in Georgia. AmCham is now the official representative of the UN Global Compact Georgia Network aimed at fostering a sound CSR culture throughout Georgia. The United Nations Global Compact is the largest corporate social responsibility initiative in the world, encompassing about 7,700 members in 130 countries. “To estimate CSR activities in Georgia, first, let’s define CSR. On the simplest level it is an organization “doing the right thing”. That includes doing the things that ensure success for the organization itself (clients, owners & staff) and most assuredly includes being profitable if that is the objective of the organization. It includes legal and ethical behavior and making decisions and using organizational resources (including profits) in ways that enhance societal well-being – both in the short and long-term”. Given that simple definition, I definitely see a growing trend in CSR awareness and activities from the actions of individual organizations, NGO’s, associations, UNDP’s Global Compact and the media attention, such as this special edition by the Financial. Q. How companies in Georgia can benefit from Social Responsibility projects? A. First, realize that although most of the CSR activities visible to society are implemented through projects, CSR should be thought of as a longterm strategy and process. On a macro level, companies all benefit by a stable and healthy society – which can be enhanced by such socially responsible projects. Although individual company returns from CSR projects are harder

to quantify, there is certainly a brand differentiation that comes from these activities. Q. How does CSR affect on companies’ financial success and generally can responsible business prevent the recession? How Georgian society can support or encourage the development of Social Responsibility among Georgian businesses? A. I believe that society can help by giving more business to those companies that are more socially responsible, which in turns also sets a standard of acceptance for all businesses. As to preventing a recession, there are too many external factors in play which outweigh the positive impact of CSR. Q. How society can benefit from Social Responsible Companies? A. Society, especially through responsible organizations such as NGO’s, has a role in the success of CSR. In addition to what has been mentioned above in supporting socially responsible companies, the relevant NGO’s need to ensure a coordinated effort in determining the real societal needs, the priorities of those needs, and how best then to use the corporate resources available to meet those needs. Further, NGO’s should make sure that they qualify for the Government-approved list of NGO’s that are eligible to receive corporate funding (tax-deductible). Q. What are the key directions of CSR which should be definitely implemented? Why? A. There needs to be more awareness of what other companies are doing, both here and abroad. There needs to be more of a focus on corporate governance, not just charity. As I mentioned above, I would also like to see more coordination among the NGO’s in determining societal needs and the best ways to meet those needs. Q. Do you think that companies should invite representatives of international NGOs to provide a more informed un-

derstanding of corporate responsibility? A. The more companies understand what is possible, the more will actually be done. I do believe that it is more effective if such international NGO’s collectively work through organizations such as UNDP’s Global Compact and business associations such as AmCham. Q. Social responsibility of companies in Georgia is often expressed in Charity actions and it does not include benefits of company itself. What is the solution for switching existing social projects into sustainable activities? A. You are correct that philanthropy gets the center stage. But remember that charitable giving cannot occur unless the company is making sufficient profits. More attention should be given to corporate governance. As to sustainability, the companies need to really need to know that the social projects are effective – both to their individual success and to meeting societal needs. This feedback is another function the NGO’s representing society can provide. Q. CSR might be considered a way of the brand differentiation. What are the ethical values that companies should use based on CSR? What are the corporate values that a company stands for in terms of CSR? A. Ethics and values are intrinsic to a society – and are also dynamic. What was acceptable 50, 25 or even 10 years ago is not what is acceptable today. Most often the companies (and values) in Georgia are known and identified by their owners or senior management. None of us have the exact same concept of what is the right thing to do in any given situation. Knowing what is the right thing to do - being socially responsible is not easy. Senior managers have difficult decisions to make every day and the outcome of a decision is not always known. For example, does the brand recognition/differentiation that comes from diverting resources to

CSR activities provide a better longterm return than just the providing the owners more short-term dividends? Q. How should companies build sustainable success in terms of CSR? A. It must become a part of the corporate culture – even as the company changes ownership, management and staff. Q. How should companies develop employees and the future workforce to build successful working lives? There is a concept in business called internal marketing which means treating employees as clients. Be aware of their needs and wants. Involve them in the CSR activities. Encourage them to volunteer whenever and wherever possible. Employees are well aware of their company’s actions. When they are a part of something good – they are also happier and more productive. Q. What actions should companies take to reduce climate change and prepare for a low carbon economy? A. Most companies do not engage in activities that have a major affect on climate change or a low carbon economy. However, every organization can begin by at least thinking of ways to be more energy/environmentally conscious: efficient lighting, turning off devices when not in use, recycling paper, conservative water use, etc. Understand what you really can do – and do your part. Q. Reporting is one of the main principles of social 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. I don’t agree that “financial” reporting is crucial to effective CSR. However, responsible PR is. What I mean is that for a company to benefit from the brand differentiation discussed above, it needs to make the public aware of its values and CSR activities. At the same time it must be very careful in ensuring it is

not perceived as exploiting the very parts of society it is trying to help. Q. What are the main challenges and obstacles of CSR in business nowadays? A. Understanding or estimating the return to a company’s bottomline for CSR activities is very difficult. Every decision has trade-off’s – and the uncertainty in how that decision affects short-term vs. longterm results and profitability is often just a guess. Q. What kinds of changes are necessary to be made within the company in order to make CSR the part of business? A. It must be made a priority from the top down and understood throughout the entire organization. As such, it should be part of the company’s mission & goals and appropriately addressed in the strategic and operational plans and budgets. Q. Do you think companies in the same sector (law, consultancy, mining etc) which compete in the marketplace should cooperate together more in matters of social and environmental need? A. When I was in the energy business, I belonged to an association of energy companies that believed safety was an industry-wide priority that was above the competitive level of individual companies. I see a similar need in CSR and one of the reasons AmCham has a CSR committee and why AmCham acts as the secretariat for UNDP’s Global Compact. Q. Do you think the CSR message is being heard and acted upon only by large companies? Why should small and medium businesses implement the CSR activities? A. I don’t think that is the case in Georgia. Admittedly, we hear more in the press about CSR activities in the larger companies, yet I know that many small and medium businesses are just as involved. And for companies with limited resources, employee-sponsored programs are very effective. Industry-specific associations can also help in coordinating activities of smaller companies.

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socially responsible companies

FINANCIAL

DECEMBER 19, 2011 | FINCHANNEL.COM

Georgian Society Unaware of the Social Responsibilities of Businesses The FINANCIAL By TAKO KHELAIA Corporate Social Responsibility has become an integral part of modern business. Nearly all big companies worldwide claim to be socially responsible. CSR has recently become the top priority of Georgian companies. Many of them are hiring CSR specialists and integrating CSR principles in their company’s long term strategy. But local society is still not aware of what CSR really stands for. “We believe that wherever we operate Georgia-wide, our activities should generate economic benefits and opportunities and enhance the quality of life of our stakeholders; that our conduct should have a positive influence; that our relationships should be honest and transparent; and that we should be held accountable for all our actions. Our CSR policy focuses on six areas: Marketplace and Customers, Employees, Community and Society, Health, Safety and Environmental Performance, Business Partners, Control and Finance,” Company Wissol noted. “We have a strong CSR strategy at the company. Information about our company’s financial data is always available and transparent. The Director of our Supervisory Board, Samson Pkhakadze always takes part in implementing CSR projects and is always involved in the activity,” said Rusudan Kbilashvili, PR Manager of Wissol. British Petroleum, one of the world’s largest energy companies existing in Geor-

gia, pays much attention to CSR. “We implement different projects in terms of CSR including development of local society, energy and factories. We have CSR Manager Rusudan Medzmariashvili who takes care of CSR projects. BP always publishes data of its sustainable development. We have a special annual budget allocated for CSR projects. General Manager of BP always takes part in the development of CSR projects,” said Tamila Chantladze, Communications Team Leader of BP. “We are actively involved in the development of CSR at the company. We support a healthy lifestyle among Georgian people and are building a sports club. Members of Beeline will have the opportunity to visit and use the club. We pay much attention to envi-

ronment protection projects and education development. We completely take in to account the role of CSR. Under the initiative of our General Manager many projects have been implemented in this direction,” said Teona Bagdavadze, PR Manager of Beeline. Social Responsibility is a part of Radisson Blu Iveria Hotel’s award winning programme Responsible Business. According to company officials CSR is their company philosophy. “The Responsible Business programme was designed in 2001 and ultimately guides us on how to perform our business in a more responsible way. At the beginning of each year we are required to present our Responsible Business action plan which includes activities directed toward Social and Ethical Responsibil-

ity as well as Environmental Responsibility and which benefits both company as well as society,” said Ekaterine Lomidze, HR Manager of Radisson Blu Iveria Hotel. General Manager of Radisson Blu Iveria is actively involved in Responsible Business activities. According to Lomidze the General Manager always sets an example for company employees and motivates them through his own actions. CSR remains as one of the priority issues for Bank Republic. “Many interesting social projects are implemented for the benefit of the society where we live and operate,” BR officials note. “As always, during the last year, we have implemented a number of social programmes ultimately leading to the welfare of the most vulnerable

segment of society. Again we try to add value to the environment where we work and operate. Traditionally Bank Republic has been one of the most active financial institutions that has helped to introduce the innovative CSR concept to the business community. During 2010 our priority was to enhance socially responsible business activities and finance projects for the society, public and environment, care for our clients, staff and shareholders,” noted the Bank Republic Annual Report. TBC Bank implements different CSR projects in the direction of the rehabilitation of architectural buildings, art, culture, mountainous areas and social programmes. The Bank has a CSR Manager Maiko Dzirkvelishvili. TBC Bank reports its financial data

and has an annual budget for CSR activity development. There are very few people in Georgia who properly understand what CSR means or what the social responsibility of businesses is. CSR is now a trend at the “top level” but not with the majority of society. “Businesses should be responsible but I had no idea there existed a special Corporate Social Responsibility programme at any company in Georgia,” said student Tamuna Gugberidze, 23. “Society in Georgia should be informed about CSR. The media plays a key part in the education of society so first of all media representatives should be informed about the means of CSR,” said Tamuna Gugberidze. “I am sure that most of the media representatives in Georgia aren’t well informed about CSR. I myself don’t know what this system was created for,” said Temur Gagnidze, 24. Temur is studying at one of the business schools in Tbilisi. “It would be much better if some trainings or even presentations would be held in Georgia specially for journalists to teach them why businesses should be socially responsible.” “I had no idea about CSR before,” Mariam Machabeli, another student, told The FINANCIAL. “I am sure that most of my peers have no knowledge of it either. I think businesses are responsible for informing society and the media about this system, in this way everyone can understand its meaning. Students should be taught about CSR as well,” Mariam believes.

“The Biggest Demand from Investors is for Project Analysis,” Guy de Fontgaland, President of Eurasia Management House The FINANCIAL By NANA MGHEBRISHVILI Q. EMH offers project management service from project conceptualization through the total process. Which stage is more in demand and why? A. Our strategy is to offer investors a range of comfort zones wherein they feel that they have a credible and professional local anchor which can guide them through the complex processes of establishing or expanding a business in Georgia. Most investors are often diffident about investing and ensuring sustainability and growth in a foreign land, especially where language, business culture and levels of governance are vastly different from the more established and mature economies. In Georgia, while speed of opening companies, bank accounts and other facilities are of excellent standard, ground level realities of starting up and operating businesses need to be more clearly understood and appreciated. Mainly for small and medium enterprise investors whose investment scale is around US$250,000, expectations of return on capital are high as much as 50% per annum. These expectations are risk-related and at the same time aligned to high costs of borrowing in Georgia, from banks at around

16% and from microfinance institutions at around 40%. Project conceptualizations and project implementation in Georgia needs to take into account a number of critical factors which relate to management competence, work ethics, cost of goods and the internal as well as external markets. Georgia still remains a narrow and limited market. Manufacturing often has high costs and profit margins can be low. The biggest demand from investors is mainly for a highly professional and bankable project analysis and due diligence on companies which may wish to form joint-ventures with local individuals or corporations. Q. Currently EMH is oriented on developing and attracting small and medium investors. Why? A. Small and medium investments in Georgia is our focus area, mainly on account of the fact that there is space for this scale of investments in agriculture and agro industry, in eco tourism, in fashion, in food outlets, in education and training and in specialized services. It is also based on our own network of investors who have expressed interest in moving risk capital to emerging markets to test the waters and position themselves with the first-mover advantage. EMH is an independent accredited investments facilitator for the Georgian National Invest-

ment Agency of the Ministry of Economy and Sustainable Development while I am, on an individual basis, advisor to the TBC Bank for foreign term deposits. We have recently invited a number of small and medium investors from Singapore to consider depositing funds with the TBC Bank and taking advantage of our services to develop project pipelines in Georgia in which they could invest or undertake co-financing of third party ventures in cooperation with TBC Bank. There is also the social and economic dimensions to small and medium investments. Small and medium ventures are drivers of economic growth and employment generation. Coupled with our education, training and capacity building programs, we plan to create a holistic platform for investments and graduate employment. Q. Majority of foreign businesses in Georgia are large enterprises. Why? How would you estimate such a situation? A. Majority of foreign businesses are engaged in offering critical products and services such as gas. There is a captive market for their operations and they are profitable. Independent Georgia created a large vacuum for essential services such as telecommunication, oil and gas, infrastructure and

some manufacturing. Most of these enterprises required the injection of large capital and it was only possible from foreign companies, either as standalone investments or in joint venture with local companies. Q. How could the investment climate for foreigner businesses be improved in Georgia? A. Overall, the climate for investment is good. Law and order and the security situation is excellent, compared to some years ago. There is confidence in the country’s ability to manage itself, without any potential chaos. Public services that support investments are proactive and highly efficient. There are also a number of clear opportunities for investments across a range of industrial sectors. I see the lack of sufficient, finetuned capacities at the middle and top management and the need to bring foreign professionals to take leadership roles at much higher wages as an issue. While foreign professionals bring a variety of skills and a body of knowledge, and do transfer them to nationals, the education system needs to revamp to cater to current demands. Language too can be a barrier and the introduction of English as a lingua franca needs to be encouraged. A key concern with most investors is the level of corporate governance and abiding by some of the key

standards and best practices. Quality of work, commitment to higher levels of performance across most segments of the workforce, from white to the blue collar, needs much grading up. Q. Since 2005, Georgia has moved up to 12th place from 112th among 181 countries surveyed on the World Bank ’s annual Doing Business ranking. What are the perspectives of Georgia in term of attracting foreign businesses? A. Georgia’s ranking for Ease of Doing Business is creditably high. It is evident in the range of public services, from registration of a company to income revenue reporting, from the highly efficient immigration points at the airports to the movement of goods from overseas or from Georgia to other ports. There is however a widespread feeling among most small and medium investors that the average Georgian business does not understand the need to drive a comfort zone to foreign investors in terms of providing full and clear information, of conducting negotiations on established lines of transparency and in ensuring the security and profitability of foreign investments. Foreign investors entering new and emerging markets usually carry a number of risk-related concerns and it is important to

ensure that these risks are addressed clearly by local partners and collaborators. Q. In your opinion, what could be main guidelines for foreign business to operate successfully in Georgia? First, of course, is their own understanding of investments, markets, margins, profits and risks. They also need to understand the social and cultural aspects of Georgia which, as a nation, is still young in attuning itself to international standards and practices. EMH, as a rule does not encourage borrowing in Georgia as the cost of debt is very high. It is wise to ensure that investments are mainly equity-funded. Unless there is very clear prospect of a zero-risk operation, it would be best to move a venture through a gradual process. It is also important to understand the road map and milestones of a venture and the risks and rewards on the way. There is also a necessity to pick and right people, with the right attitude and the right commitment and loyalty to support the ventures. While there is widespread unemployment in Georgia, there no abundance of highly qualified and competent professionals. Those who have the right qualities are often picked quickly by international organizations, big corporations and foreign companies at above-market rates.

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FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | DECEMBER 19, 2011

socially responsible companies

Sustainable and Responsible Business New European policy

PAY

DEVELOPMENTS

ACROSS EUROPE MINIMUM WAGE RISE WILL INCREASE TAX REVENUES The national minimum wage in Romania will rise from 670 to 700 (154 to 161 euros) lei per month on January 1st 2012. This change will affect some 790,000 workers and add around 30m lei (6.8m euros) in additional net tax revenues for the government, according to federation of European Employers.

MINIMUM WAGE TRANSITION PERIOD ENDS The FINANCIAL In October 2011 the European Commission published a new policy on corporate social responsibility. It states that to fully meet their social responsibility, enterprises “should have in place a process to integrate social, environmental, ethical and human rights concerns into their business operations and core strategy in close collaboration with their stakeholders”. The aim is both to enhance positive impacts – for example through the innovation of new products and services that are beneficial to society and enterprises themselves – and to minimise and prevent negative impacts. The new policy puts forward an action agenda for the period 20112014 covering 8 areas: Enhancing the visibility of CSR and disseminating good practices:

this includes the creation of a European award, and the establishment of sector-based platforms for enterprises and stakeholders to make commitments and jointly monitor progress. Improving and tracking levels of trust in business: the Commission will launch a public debate on the role and potential of enterprises, and organise surveys on citizen trust in business. Improving self- and co-regulation processes: the Commission proposes to develop a short protocol to guide the development of future self- and co-regulation initiatives. Enhancing market reward for CSR: this means leveraging EU policies in the fields of consumption, investment and public procurement in order to promote market reward for responsible business conduct. Improving company disclosure of social and environmental information: the new policy confirms the

Commission’s intention to bring forward a new legislative proposal on this issue. Further integrating CSR into education, training and research: the Commission will provide further support for education and training in the field of CSR, and explore opportunities for funding more research. Emphasising the importance of national and sub-national CSR policies: the Commission invites EU Member States to present or update their own plans for the promotion of CSR by mid 2012. Better aligning European and global approaches to CSR: the Commission highlights the OECD Guidelines for Multinational Enterprises, the 10 principles of the UN Global Compact, the UN Guiding Principles on Business and Human Rights, the ILO Tri-partite Declaration of Principles on Multinational Enter-

prises and Social Policy, the ISO 26000 Guidance Standard on Social Responsibility. A report on the implementation of this action agenda should be published in time for a review meeting scheduled for mid 2014. SCAN QR code to get full report on your mobile phone.

Minimum wage rate 20,000 lek 929.07 euros 1,000.00 euros 400,000 Belarusian roubles 1,498.87 euros 270 leva 2814.00 kunas 909.00 euros 8,000 koruny 278.02 euro 1,365.00 euros 739.56 euros 78,000 forints 182,000 kronur 1499.33 euros 1,057.33 IOM pounds 1095.46 Jersey pounds 200 lats 800 litai 1,757.56 euros 664.95 euros 1100.00 lei 55.00 euros 1,424.40 euros 1,500 zlotys 485 euros 670.00 new lei 4,611 roubles 17,680.00 new dinars 317.00 euros 530.00 net euros 641.50 euros 629.26 lira 985 hryvnias 1027.87 pounds sterling

NOTES: [1] Where official rates are expressed by the hour or week, they have been converted to monthly rates on the basis of a 40hour week and 52-week year. Minimum wage figures are gross (pretax) rates and exclude any 13th or 14th month payments that may be due under national legislation, collective agreements, custom or practice. [2] Austria: applies to certain industry sectors. Applicable to all sectors from 01.01.2009. Employees are entitled to 14 monthly payments each year. [3] Luxembourg: unskilled workers only. [4] Romania: based on 170 hours per month. [5] Greece, Portugal, Spain: white-collar workers only. Workers normally entitled to 14 monthly payments per year. The minimum wage in Portugal; will be reassessed in May and September 2011. [6] France: based on statutory 35-hour week. [7] Cyprus: applicable to certain groups in non-unionised sectors after 6 months’ employment. [8] Croatia: Minimum Wage Act . Art 4 para 3/4. [9] Greece: Different rates apply to blue and white collar workers and vary by length of service and marital status. [10] Hungary: the minimum wage is 20% higher than the basic national minimum for those with secondary or vocational education but under two years’ experience, and 25% higher for those with at least two years’ experience or older than 50 years of age. Employees with univer-

MONTHLY PAY CLIMBING FASTER THAN HOURLY PAY Over the year to Q3 2011 the gross average monthly pay level in Estonia grew by 6.6% to 809 euros and gross average hourly pay grew by 4.7% to 4.82 euros, according to federation of European Employers. The greatest increase in the monthly pay level was in the mining and quarrying sector (+13.4%) and the biggest jump in the hourly pay level was in real estate sector(+12.2%). Labour costs rose over the year to 1096 euros per month and 7.64 euros per hour.

MINIMUM WAGES IN EUROPE Country Albania Andorra Austria Belarus Belgium Bulgaria Croatia Cyprus [7] Czech Republic [12] Estonia France [6] Greece [5] [9] Hungary [10] Iceland [13] Ireland [16] Isle of Man Jersey (Channel Islands) Latvia Lithuania Luxembourg [3] Malta [11] Moldova Montenegro Netherlands Poland Portugal [5] Romania [4] Russian Federation Serbia Slovakia Slovenia [14] Spain [5] Turkey [15] Ukraine United Kingdom

From January 1st 2012 all companies in Slovenia will be required to pay the national minimum wage in full. A transitional option for companies to pay rates below the minimum was established following a major rate hike in February 2010. It was taken up by around 1,600 employers.

sity-level education are entitled to a minimum wage that is 60% higher than the basic national minimum. [11] Malta: Higher wage rates are set by order in the following sectors: agriculture, beverages, domestic work, clay and glass work products, food manufacturing, hire cars and private buses, hospitals and buses, jewellery and watches, leather goods and shoes, papers, plastic, chemicals and petroleum, private security services, professional offices, public transport, sextons and custodians, textiles, tobacco manufacture, transport equipment, metal, woodworks and private cleaning services. [12] Czech Republic: Rates may not include travel allowances, on-call payments and severance compensation. [13] Iceland: The minimum pay level is established through a national collective agreement. [14] Slovenia: From 2010 the minimum wage has been set in terms of normal net take home pay. It will rise in stages to 562 net by 2012. [15] Rate net of tax and social charges for those aged 16 and over. The net rate will rise to 566.57 liras on July 1st 2011. [16] If an employer cannot afford to pay the national minimum wage due to financial difficulties the Labour Court may allow them to pay below the minimum wage for between 3 months and 12 month. Only one period of exemption is allowed.

GENDER PAY GAP SHRINKS, BUT TOP EARNERS BETTER OFF According to latest figures from the UK's Office for National Statistics median gross weekly earnings in the UK rose by just 0.4% over the year to April 2011. Earnings for Fulltime female employees rose by 1.4%, compared with just 0.2% for full-time male employees. Higher paid workers in the top decile of earnings increased their hourly earnings by 1.8% compared with just 0.1% for those in the lowest earnings decile.

SMIC INCREASES BY 2.1% - PLUS FURTHER RISE NEXT MONTH The statutory minimum wage (SMIC) in France increased on December 1st by 2.1% from 9.00 to 9.19 euros per hour. It will rise again on January 1st 2012 to 9.22 euros an hour. This change will affect some 2.3 million workers across France.

POLARISATION IN BULGARIAN JOB MARKET According to a recent survey carried out by the international recruitment firm Manpower only one in seven Bulgarian companies plan to hire new staff during the first quarter of 2012. According to federation of European Employers job growth is expected to be greatest in finance, business services, insurance, real estate and utilities (+12%) and job numbers are expected to decline in retail and wholesale trades (-20%) and construction (-17%).

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HEADLINE NEWS & ANALYSIS

DECEMBER 19, 2011 | FINCHANNEL.COM

socially responsible companies 16 Rustaveli Ave. 17 Akhvlediani Str.

146 Agmashenebeli Ave., T/Fax: 291 02 49 Email: info@kenari.ge

Tel: 2519 966

15 Lubliana Str., Tel: 251 00 01; Fax: 253 00 44 info@zarapxana.ge www.zarapxana.ge

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1 Brother Kakabadze Str., Tel: 292 29 45; Fax: 292 29 46; tk@mcdonalds.ge

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5 Chavchavadze Ave., Tel: 222 44 17; 5 77 22 99 22 plasticsurgerygeo.com

3 Vashlovani Str.; (“Super Babilon” oposit) Tel.: 298 90 86

HOTEL “O. GALOGRE”

For advertising please contact: 577 741 700

8, VAKHTANG GORGASALI STR. BATUMI GEORGIA Tel: +995 422 27 48 45 info@hotelgalogre.com www.hotelgalogre.com

marketing@finchannel.com

EUROPE HOUSE

TEL:590 86 44 45 # 2 Dadiani Str.

Radisson Blu Iveria Hotel Rose Revolution Square 1 T: +995 32 2402 200; F: +995 32 2402 201 info.tbilisi@radissonblu.com radissonblu.com/hotel-tbilisi

Tel: 2439494 Addr: 13 Shavteli Str. info@ambasadori.ge; www.ambasadori.ge

Tel: (+995 32) 250 99 99 Mob: (+995 95) 225 99 99 D.Agmashenebeli ave.#154 www.green-office.ge

AeroSvit Representative office in Georgia Address: 25 st.Leselidze Office 205 Tbilisi 0160, Georgia Tel: ( 995 32)243 96 93 Fax: ( 995 32)243 96 93 tbilisi@aerosvit.com

La’Brioche

Betsy’s Hotel

Addr: Batumi, Georgia, Parnavaz Mepe #25 Tel.: (995 32) 2601536 info@piazza.ge www.piazza.ge

32-34 Makashvili Street, 0108, Tbilisi, Georgia Tel.: +995 32 2931404 Fax: +995 32 2999311 info@betsyshotel.com www.betsyshotel.com

13, Rustaveli Avenue.; Tel.: +995 32 2779 200 www.TbilisiMarriott.com tbilisi.marriott@marriotthotels.com

The tickets are available at tbilisi international airport freedom square 4 courtyard marriott hotel, 1st floor Tel: 2400 400; 2400 040

4, Freedom Square, Tel: +995 32 2779 100 www.CourtyardTbilisi.com courtyard.tbilisi@marriotthotels.com

36 Al. Kazbegi ave. Tbilisi, 0177, Georgia Tel/Fax: 229 43 43 info@intercontinental.ge www.intercontinental.ge

www.sheraton.com/tbilisi

LE MARAIS

THAI

32 Abashidze Str. Tel: 2 22 40 83

Addr: # 35 Abashidze Str. Phone: 22 17 70 www.thai.ge

GEORGIA PALACE HOTEL

8am-2am (May-October) 8am-1am (November-April)

Addr: 12 Eristavi Str. (at the round garden) 34 Leselidze Str. 7a Pekini Str. Phone: 99 03 99; 5 74 74 69 69 info@lucapolare.com www.lucapolare.com

26 May Square Tel: 2 30 00 99 www.hi-tbilisi.com

6 Kavsadze Str. Tel: 2 25 15 45 2 55 44 55 www.lottravel.ge

Tel: (+995 32) 2988 988 Fax: (+995 32) 2988 910 E-mail:gmt@gmt.ge www.gmt.ge Addr: 4 Freedom Square

BUSINESSTRAVELCOM Berika International LTD GSA for Czech Airlines in Georgia Phone: +995 32 2227941 Fax: +995 32 2222941

Georgian Real Estate Management The Green Building, 6 Marjanishvili Street, 0102 Tbilisi, Republic of Georgia Tel: (+995 32) 243 30 77 Fax: (+995 32) 243 30 79 www.firstbrokerage.ge E-mail: info@firstbrokerage.ge

Tel: 888 222 2900

Ice cream, coffee, blended drinks, pastry, salads… Open

Tel: (+995 32) 277 20 20 Fax: (+995 32) 277 21 20 Addr: 20 Telavi Str. www.sheraton.com/tbilisi

Tel: (+995 32) 2242400 Fax: (+995 32) 2242403 Kobuleti, Georgia E-mail: info@gph.ge www.gph.ge Addr: 275 Agmashenebeli Ave.

FINANCIAL

HOTEL AND AIRTICKET BOOKING: 2 999 662 | SKY.GE

50 Chavchavadze Ave. Tel: 2 91 52 42

Village Anaklia, Zugdidi, Georgia Tel: 2 60 99 90 2 60 99 91 www.hotelanaklia.com

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FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | DECEMBER 19, 2011

socially responsible companies

Denim Brand Replay Now in Georgia The FINANCIAL By MARIAM PAPIDZE Clothing store Replay which was born in Italy is now available in Georgia. Major Italian fashion player Replay has entered the Georgian market and has brought with it some high quality denim. This is a store for men’s and women’s casual wear and footwear. Replay aims its total look at consumers who are looking for quality products, who have taste and who love casual style. Located on Vaja Pshavela Avenue Replay has already received its first clients. “We expect to successfully compete with other brand stores in Georgia. We offer Georgians quality and tasteful clothes,” said Ia Parkaia, Manager of the Replay store. “Replay has been famous for its jeans collections from the beginning of its existence. Since then it has added different lines. Nowadays Replay offers its men and women clients not just jeans, but casual style clothes as well. This brand is known as a casual store for young people. But all ages of people can be our clients. As for the prices, they are in line with the quality and reputation of the brand,” she added. The guests invited to the Replay presentation were satisfied with the collection on show and about the presentation event itself. The event was performed by an Italian DJ who

was brought from Venice specially for the Replay opening. Prices start from 200 GEL and go up from there. The store will offer different discount promos to its clients from time to time. “Replay will have special discounts for Christ-

mas. With other stores in Tbilisi Replay will also offer a special surprise to its new clients. As for our future plans, we are going to expand; to add a new store in Tbilisi and other cities in Georgia and to add new lines to the collection. For example we

plan to bring children’s clothes here. Also, men’s and women’s lingerie and accessories,” Parkaia said. The Replay brand was established in 1978 when Claudio Buziol registered a company named Fashion Box Industries. With Replay as its

flagship brand, Fashion Box expanded its clothing line to casual shirts in 1981. In 1987, the brand entered the international scene which met it with much eagerness. Two years later, Replay revolutionized denim jeans fashion with its “double ring” design. The brand is active in socially responsible activities as well. According to Replay officials, since 2006 the Claudio Buziol Foundation has been supporting programmes and projects that help young people in their education and training so that they can develop their creative abilities and artistic expression. It helps them gain visibility and gives them a real chance to fulfil their professional aspirations. Reply is now one of the leading international companies in the denim sector. Expansion into new markets and increasing control of the distribution network are key strategic objectives for Fashion Box as well as product vision. At present Replay operates in all European markets and in the Middle East, Asia, America and Africa in over 50 countries and now in Georgia as well. The wholesale distribution network has 5,000 outlets with 220 retail stores, according to Replay officials. 2009 total annual sales amounted to 272 million EUR and exports account for 85 percent of the turnover.

Tegeta Motors Celebrates th its 16 Anniversary

The FINANCIAL By TAKO KHELAIA Tegeta Motors celebrated its 16th anniversary with a festive event. The event was held at the service centre at the company’s headquarters. The company summed up the achieved results. The new, European standard auto service centre was presented. People attending the ceremony had the opportunity

to win sixteen prizes which were being offered by different Georgian companies. “This is the first auto service centre in the Caucasus, where the highest standards of vehicle maintenance and complete comfort for users will be available in one space. The service centre is located over a large space; our customers will be able to rest while their car is being repaired. They can use the Wi-Fi service available and drink

coffee in a very comfortable area. At the moment 150 personnel are employed in the service centre,” said Giorgi Mshvildadze, General Director of Tegeta Motors. “The year 2011 has been quite successful for our company. We have opened a Porsche centre. The net profit of Tegeta Motors has increased by about 25%. Demand for car service and car part accommodation has practically doubled in comparison with last year. The

development and increase of the company is directly connected with the increase in company profit. This year we have opened service centres in Batumi and Poti as well,” Mshvildadze said. According to company representatives, during its sixteen years Tegeta Motors has invested tens of millions of USD in the business. At the moment Tegeta Motors is the official representative of more than 300 world famous brands, with exclusive rights of distribution. The company has sixteen branches and more than 800 employees. Tegeta Motors offers a full range of high quality auto products and auto service for corporate and retail customers. That involves the diagnosis and repair of light cars and trucks, buses, construction and special equipment by using special authorized programmes. Recently MAN Truck & Bus AG held a training seminar by the biggest German company MAN at Tegeta Motors. The seminar was organized by Tegeta Motors’ subsidiary company Tegeta Truck & Bus and MAN Truck & Bus AG’s educational academy MAN Academy. According to the decision of Dr Frank Hiller, Director of Marketing, Sales and Services for MAN Truck & Bus AG, MAN Academy implemented new types of trainings in 2011. These trainings were for the purpose of the improvement of the professional habits of sales managers of the partner companies in different parts of the world. Representatives of eight countries took part in this training. In total 22 people participated. Participants in the event were from Georgia, Armenia, Azerbaijan, Ukraine, Belarus, Kazakhstan, Uzbekistan and Germany.

JOHN BASS TO BECOME DIPLOMAT OF THE YEAR 2011 The FINANCIAL The first diplomat award ceremony in Georgia took place last week in Tbilisi at Cruise restaurant. Weekly English-language newspaper Georgian Journal along with the publishing house Palitra revealed the Diplomat of the Year. This year Ambassador of the US to Georgia Mr. John Bass has received special award, exclusively designed for the ceremony. According to Georgian Journal prior to the event, Media Palitra has conducted a three-month poll involving local politicians, political analysts and political scientists. The primary purpose of the project is to make the Diplomatic Corps more active in promoting Georgia and further development of democracy in the country. Moreover, Georgian Journal intends to revitalize the relations between the Georgian media and the Diplomatic Corps. Within the scope of the project, representatives of diplomatic corps, international as well as local non-government organizations, politicians, experts and businessmen have attended the event.

CMYK

HEADLINE NEWS & ANALYSIS

socially responsible companies

FINANCIAL

DECEMBER 19, 2011 | FINCHANNEL.COM

Bank Constanta Social Investments B SOCIAL INVESTMENTS

ank Constanta regards corporate social responsibility (CSR) as an investment in society and in its own future. To us CSR is much broader than just philanthropy and it entails a broad commitment to protect and improve the lives of workers and the communities in which we do business. It refers to operating a business in a manner that accounts for the social and environmental impact created by the business and it addresses issues impacting virtually every area of operations: governance and ethics; worker hiring, opportunity and training; responsible purchasing and supply chain policies, and environmental impact. Our corporate social responsibility (CSR) programs are designed to provide long-term benefits to our, customers, employees, shareholders, partners, and individuals in communities in the country. We focus on three main areas: • Customers • Employees • Social Investments

CUSTOMER One of the main directions of company’s social mission is protection of its customer that is stated into offering fair contract terms, reasonable interest rate and commission fee ranges, monitoring and analyzing its financial conditions and solvency, developing and offering flexible payment schedule, assisting in cognition of contract terms. The aim of this activity is to protect its customers from taking such extra conscious or unconscious responsibilities that will make the customer insolvent debtor. For more transparency any, dissatisfied customer is welcome to address Bank Constanta with the compliance, that will be examined by JSC Bank Constanta’s Committee of Consumer Complaints and the consumer will be informed about the decision concerning its complaint.

EMPLOYEES Bank Constanta starts to care about the customer by caring about the employee – the one who principally cares about the customer. Bank Constanta considers its staff its greatest assets and treating them well is fundamental to the development of our organization. At Bank Constanta, we strive to create an inclusive, balanced, and col-

laborative environment that enables employees to develop and utilize their talents and advance their careers. To facilitate personal development to staff, our Training Division organizes various training and study programs for our staff and sponsors them, both locally and overseas. We offer our staff comprehensive insurance on medical, dental, disability and travel. We also provide retirement benefits schemes for all of our staff. We try to contribute to the well-

being of our staff through different social and sport activities, like bowling and football championships and corporate events. As we aim to contribute to the well-being of the community in which we operate, we encourage staff to actively support voluntary activities. Hence, corporate volunteering is on of the important way of giving the opportunity to employees make a contribution to the community in a positive way.

Social-cultural projects are the part of SCR that are also very important for Bank Constanta. We always try to assist and participate in projects that serve to build the values essential to raise noble and moral society. We believe that artistic creativity broadens minds, opens up new perspectives and inspires people to excel and achieve the extraordinary. For this reason, Bank Constanta supports various programs connecting with art and culture, striving to provide access to art and music for as many people as possible and preserve culture for future generations. Among such programs are: Sponsorship of children and youth festival of classical music “The Future Stars 2011”. The festival gathers the outstanding musicians and the laureates of various festivals of music and art schools around the country. This year festival was carried out the fourth year and a number of talented young people has been identified and awarded in various nominations within its framework. Another important sponsorship for Bank Constanta is supporting “Art Gene” Festival - It is the second year that Bank Constanta sponsors the one of the most popular and cultural festivals of Georgia. The history of the Festival Art Gene engage 8 year of existence and its main goal is to promote and popularize Georgia’s traditional folklore, research and gather known and unknown materials of this field and introduce it to the general public, also to archive and preserve those materials for future generations. It is defiantly one of the most successful and highly attended events in Georgia with the wide audience of all generations and ethnicity. In current year, “Bank Constanta” provided additional support to the festival through the social network “Facebook” with various interesting applications related to the festival issues. According to the involvement of the network users, we can kindly state that those applications were truly successful. Another pleasant detail is that a lot of young generation took an active part in those applications. Which is one of the main aims of the festival – introduce our cultural values and traditions to the young generation. Regarding the introducing Georgian traditions to the wide audience “Bank Constanta” initiated another project - through “Bank Constanta” page at “Facebook” bank gave its viewers the opportunity to get acquainted with the Georgian traditions of all regions and their history. This is the educational video program, which allows you to get information about the origins of our traditions, their history, nature and importance. We believe that such programs help society understand the culture and traditions, facilitate their evaluation, and lead to the future development of the proper values for society. The current activity of “Bank Constanta” in assisting the Georgian culture and contributing in promotion and development of Georgian art, is sponsoring the “Georgian Art Evenings”. It is 7 month project organized by Ministry of Culture, starting in November 2011. Under the project Tbilisi Concert Hall will host Tbilisi Opera and Ballet Theatre and Georgian Folk evenings. The project is aimed to introduce Georgian art to the large audience. In frames of this project, each week the audience will have an opportunity to meet such performers as Georgian State Academic Folk and Dance Ensemble, Tbilisi Opera and Ballet Theatre, and various representatives of Georgian art. Among the “Bank Constanta” social programs should be also admitted so called Green Programs committed to caring for the environment. Those are long term activities which are carried annually and involve all volunteer employees of the “Bank Constanta”.

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | DECEMBER 19, 2011

socially responsible companies

JSC Madneuli GeoProMining Group SOCIAL PROJECTS

ne of the priority activities of JSC Madneuili and Geo Pro Mining Group is implementation of social projects. In 2011 the company actively participated in more than 90 charitable an social projects. The sum total contributed by the both companies 1 million Gel.

THE PROJECTS IMPLEMENTED BY THE JSC MADNEULI • The Bolnisi region has been featured with its historical monuments, importance and samples of arts for many centuries, The Bolnisi Sioni Church is a kind of the visit card of the region, which is also the important historical sample of the ancient Georgian architect. The JSC Madneuli takes

the responsibilities towards many social aspects, including renovation and maintenance of the ancient Georgian Christian churches. • JSC Madneuli and Group GeoPro Mining has been an active supporter of sports. It currently is a sponsor of the football team “Bolnisi Sioni”. JSC Madneuli efforts development and popularization of soccer tournaments. It has recently sponsored childrens soccer camp. • JSC Madneuli is the Georgian company, established on the national Georgian roots,

therefore, it is important for the company to contribute and support welfare of Georgian regions and especially the region it operates in. Company has contributed significantly to the Bolnisi Regional reconstruction fund. • In JSC Madneuli liabilities and responsibilities the major place is given to the welfare of new generation. Company actively contributes to different educational programs. Helps local orphanages, schools and day cares. It also helps elderly houses and WWII veterans. • One of the prior achieve-

ments, especially after the privatization, the Company considers increasing of the new and qualified staff members. Since 2005 JSC Madneuli has spent significant funds for trainings and educations of its staff. • JSC Madneuli is a country’s signature card to overseas investors. Company significantly contributes to different programs and projects helping promotion of country and economic development. These have been sponsorships of different investment forums and international project promotions. One of the

foreground tasks in Georgia is widening and attracting of investments. As Madneuli is the one of the best samples of implemented investments in Georgia, company extends its responsibilities towards social maintenance. • Along with its active participation in the development of country, JSC Madneuli supports Georgian arts and theatre on periodic bases. In 2011 company has spent close to 1 million lari in CSR and for next year company nad group Geo Pro Mining plans to increase social maintenance projects.

CMYK

socially responsible companies

HEADLINE NEWS & ANALYSIS

FINANCIAL

DECEMBER 19, 2011 | FINCHANNEL.COM

Advertiser: Business Travel Com. Contact FINANCIAL Ad Dep at marketing@finchannel.com

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FINCHANNEL.COM | DECEMBER 19, 2011

where to go DECEMBER 19, 2011

Clubs, Pubs… 21:00 - Band “Wheels”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00-02:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 19:00 - Show-program and many surprises. Singers: Giorgi Tsereteli, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - Georgian songs with live performance Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - Band “Pub” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 20:30 - Maidan Jazz Band Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00 - Rezo Kiknadze - saxophonist Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Goblins” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

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Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Mission: Impossible - Ghost Protocol”; “Carnage”; “247°F”; “Happy Feet Two”; “The Twilight Saga: Breaking Dawn - Part 1”; “Love Story” (Ticket Price - 8 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Mission: Impossible - Ghost Protocol”; “247°F”; “Happy Feet Two”; “The Twilight Saga: Breaking Dawn - Part 1”; “Love Story” (Ticket Price - 8 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Mission: Impossible - Ghost Protocol”; “247°F”; “Happy Feet Two”; “The Twilight Saga: Breaking Dawn - Part 1”; “Love Story” (Ticket Price - 7 - 10 GEL)

Gallery 12:00-19:00 - The art gallery “Vanda” (“Hobby”) and Nino Peradze invite you to the exhibition “Christmas Varieties” Gallery “Vanda” 14, Chonkadze Str. (Sololaki area). Tel: 293-42-86, 599 56-99-71 Photo Exhibition in the frames of L.A.F. Project in partnership with the Tbilisi International Film Festival and Gallery 9. Participating: Mariam Amurvelashvili, Temo Bardzimashvili, Leli Blagonravova, Gega Chumburidze, Elene Damenia, Nanka Dolidze, Anka Gujabidze, Heinrich Holtgreve, Marika Kochiashvili, Yuri Mechitov, Ana Nijaradze, Irina Popova, Tako Robakidze, Daro Sulakauri Gallery 9 9, Gudiashvili Str. Tel: 299-59-54, 858 24-25-96 12:00-19:00 - Gogi Chagelishvili’s Solo Exhibition “It’s Winter” Baia Gallery 10 Shardeni Str. Tel: 275-45-10 Exhibition of the works of Vakhtang Tato Akhalkatsishvili - “Your Mystery”. At the exhibition will be presented 28 new abstract works full of new energy and harmony - (Everyday 12:00-20:00) “Tiflis Avenue” Gallery 8/10, Erekle II Str. Tel: 298-20-14, 577 50-64-50 Exhibition of “Leselidze 49” art studio. Misha Arbolishvili, Levan Abramishvili, Guram Khetsuriani, Soso Kumsiashvili, Tornike Abuladze, Beka Svirava, Irakli Chikovani, Levan Macharashvili, Keti Kobakhidze, Goga Chedia, Giorgi Ositashvili, Aleksandre Acharadze, Gogi Khakhutashvili, Barbare Aslamazishvili, Medea Alughishvili (Everyday 12:00-19:00) Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-88-08 Exhibition - “Galaktioni 120” Literature Museum 8 Giorgi Tchanturia Str. Tel: 598 16-70-48 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

DECEMBER 20, 2011

Clubs, Pubs… 21:00 - Band “Wheels”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00-02:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 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 - Show-program and many surprises. Singers: Giorgi Tsereteli, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - Georgian songs with live performance Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - “Cloud Blues Band” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 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 - Maia Kankava Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Goblins” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

Theatre 20:00 - “Woman with Dog” (Ticket Price - 11 GEL) Marjanishvili Theatre (Theatre in Attic) 8 Marjanishvili Str. Tel: 2 955-966 19:00 - “A Clockwork Orange” Premiere (Ticket Price - 5, 10, 15 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21

Gallery Exhibition of the works of Vakhtang Tato Akhalkatsishvili - “Your Mystery”. At the exhibition will be presented 28 new abstract works full of new energy and harmony - (Everyday 12:00-20:00) “Tiflis Avenue” Gallery 8/10, Erekle II Str. Tel: 298-20-14, 577 50-64-50 Exhibition - “Galaktioni 120” Literature Museum 8 Giorgi Tchanturia Str. Tel: 598 16-70-48 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

DECEMBER 22, 2011

Clubs, Pubs… 21:00 - Band “Band’a’roll”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Nodiko Tatishvili & Salome Bakuradze, Group “Comic Condition” Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - Show-program and many surprises. Singers: Giorgi Tsereteli, Giorgi Tsiklauri, Mzeona Makharadze 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 - Maia Kvirkvelia & 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 21:00-24:00 - Megi & Co Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 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 - Guliko Chanturia Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Zarebi” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Mission: Impossible - Ghost Protocol”; “Carnage”;

“247°F”; “Happy Feet Two”; “The Twilight Saga: Breaking Dawn - Part 1”; “Love Story” (Ticket Price - 8 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Mission: Impossible - Ghost Protocol”; “247°F”; “Happy Feet Two”; “The Twilight Saga: Breaking Dawn - Part 1”; “Love Story” (Ticket Price - 8 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Mission: Impossible - Ghost Protocol”; “247°F”; “Happy Feet Two”; “The Twilight Saga: Breaking Dawn - Part 1”; “Love Story” (Ticket Price - 7 - 10 GEL)

Concert XIV International Music Festival - “New Year Music Celebrations” 19:00 - Folk Music Evening - Bravo Maestro! Dedicated to the 70th anniversary from Anzor Erkomaishvili’s birth. Ensembles: “Rustavi”,”Patriarchate Choir of the Trinity Cathedral Church”, “Anchiskhati Cathedral Choristers’ Choir”, “Basiani”, “Tbilisi”, “Imeri”, “Shavnabada”, “Didgori”, Trio “Shalva Chemo”, Polikarpe Khubulava (Ticket Price - 5, 8, 12, 15 GEL) Tbilisi V. Sarajishvili State Conservatory (Grand Stage) 8 Griboedov Str. Tel: 293-46-24

Theatre 19:00 - “Mad World” Premiere (Ticket Price - 10 GEL) Rustaveli Theatre (Experimental Stage) 17, Rustaveli Ave. Tel: 272-68-68 20:00 - “Revisor” Premiere (Ticket Price - 4 - 11 GEL) Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 20:00 - “Blind Visible” (Ticket Price - 11 GEL) Marjanishvili Theatre (Theatre in Attic) 8 Marjanishvili Str. Tel: 2 955-966 19:00 - “Jeans Generation” (Ticket Price - 5, 10, 12 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 19:00 - “Veris Ubani’s Melodies” (Ticket Price - 10, 15 GEL) V. Abashidze State Music and Drama Theatre 182 Agmashenebeli Ave. Tel: 234-80-90 19:00 - “Blaze” (Ticket Price - 5 GEL) Ilia University Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15

DECEMBER 23, 2011

Clubs, Pubs… 21:00 - Agora Live Band, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Giorgi Tsiklauri & Khatuna Jalaghonia with David Iluridze Live Band 24:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - Show-program and many surprises. Singers: Giorgi Tsereteli, Giorgi Tsiklauri, Mzeona Makharadze 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 - 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 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Live Folk Music performance by

“EgAri” Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Zarebi” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

Theatre 19:00 - “Mad World” Premiere (Ticket Price - 10 GEL) Rustaveli Theatre (Experimental Stage) 17, Rustaveli Ave. Tel: 272-68-68 21:00 - “Who is Oliver” TV show (Ticket Price - 5, 7, 10, 12, 15 GEL) Rustaveli Theatre (Grand Stage) 17, Rustaveli Ave. Tel: 272-68-68 20:00 - “Revisor” Premiere (Ticket Price - 4 - 11 GEL) Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 20:00 - “Roaming Soul” Premiere (Finger Theatre) (Ticket Price - 11 GEL) Marjanishvili Theatre (Theatre in Attic) 8 Marjanishvili Str. Tel: 2 955-966 19:00 - “First Died then Married” (Ticket Price - 10 GEL) Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 19:00 - “Beautiful Georgian Woman” (Ticket Price - 5, 10, 15 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 19:00 - “Veris Ubani’s Melodies” (Ticket Price - 10, 15 GEL) V. Abashidze State Music and Drama Theatre 182 Agmashenebeli Ave. Tel: 234-80-90 19:15 - “Autumn of my Springtime” +12 (Ticket Price - 5, 10, 15 GEL) Gabriadze Theatre 13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 19:00 - “Shakespeare Sonnets” (Ticket Price - 7 GEL) Pantomime Theatre 37 Rustaveli Ave. Tel: 299-63-14 19:00 - “As You Will” (Ticket Price - 5 GEL) Ilia University Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 19:00 - “Mandragora” (Ticket Price - 7, 10 GEL) Akhmeteli Theatre 8 Vekua Str. Tel: 262-54-37, 262-59-73, 262-61-97

Gallery

Exhibition of the works of Vakhtang Tato Akhalkatsishvili - “Your Mystery”. At the exhibition will be presented 28 new abstract works full of new energy and harmony - (Everyday 12:00-20:00) “Tiflis Avenue” Gallery 8/10, Erekle II Str. Tel: 298-20-14, 577 50-64-50 Exhibition - “Galaktioni 120” Literature Museum 8 Giorgi Tchanturia Str. Tel: 598 16-70-48 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

DECEMBER 24, 2011

Clubs, Pubs… 21:00 - Veriko Turashvili & Live Band, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Nodiko Tatishvili, Khatuna Jalaghonia & Maka Gamkrelidze with David Iluridze Live Band 24:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 22:00 - Live Band “Kereoni” Art Café “Caravan” 10 Purtseladze Str. Tel: 299-66-91 22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - Show-program and many surprises. Singers: Giorgi Tsereteli, Giorgi Tsiklauri, Mzeona Makharadze 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 21:00-24:00 - “Cloud Blues Band” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 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 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Live Folk Music performance by “EgAri” Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30 21:00-24:00 - Band “Rustavi 2” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67

Concert XIV International Music Festival - “New Year Music Celebrations” 20:00 - Piano Recital - Boris Berezovsky (Ticket Price - 10, 20, 40, 50 GEL) Tbilisi V. Sarajishvili State Conservatory (Grand Stage) 8 Griboedov Str. Tel: 293-46-24

Theatre 19:45 - “As You Will or the Twelfth Christmas Night” (Ticket Price - 6 - 12 GEL) Rustaveli Theatre (Grand Stage) 17, Rustaveli Ave. Tel: 272-68-68 19:00 - “I Love You, I Love You, I Love You” (Ticket Price - 5, 10, 15 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 19:00 - “Toy Pistol” (Ticket Price - 10 GEL) Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 19:00 - “Veris Ubani’s Melodies” (Ticket Price - 10, 15 GEL) V. Abashidze State Music and Drama Theatre 182 Agmashenebeli Ave. Tel: 234-80-90 18:00 - “Guardians of our Family” (Ticket Price - 5 GEL) Griboedov Theatre 2 Rustaveli Ave. Tel: 293-11-06 19:15 - “Autumn of my Springtime” +12 (Ticket Price - 5, 10, 15 GEL) Gabriadze Theatre 13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 19:00 - “French Garnish” (Ticket Price - 5 GEL) Ilia University Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 19:00 - “Taxi Driver Givi’s Love Story” (Ticket Price - 7, 10 GEL) Akhmeteli Theatre 8 Vekua Str. Tel: 262-54-37, 262-59-73, 262-61-97

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

Theatre 20:00 - “Perkhuli” (Ticket Price - 11 GEL) Marjanishvili Theatre (Theatre in Attic) 8 Marjanishvili Str. Tel: 2 955-966 19:00 - “Krimanchuli” (Ticket Price - 5,50 GEL) Pantomime Theatre 37 Rustaveli Ave. Tel: 299-63-14

Gallery 12:00-19:00 - The art gallery “Vanda” (“Hobby”) and Nino Peradze invite you to the exhibition “Christmas Varieties” Gallery “Vanda” 14, Chonkadze Str. (Sololaki area). Tel: 293-42-86, 599 56-99-71 12:00-19:00 - Gogi Chagelishvili’s Solo Exhibition “It’s Winter” Baia Gallery 10 Shardeni Str. Tel: 275-45-10 Exhibition of the works of Vakhtang Tato Akhalkatsishvili - “Your Mystery”. At the exhibition will be presented 28 new abstract works full of new energy and harmony - (Everyday 12:00-20:00) “Tiflis Avenue” Gallery 8/10, Erekle II Str. Tel: 298-20-14, 577 50-64-50 Exhibition of “Leselidze 49” art studio. Misha Arbolishvili, Levan Abramishvili, Guram Khetsuriani, Soso Kumsiashvili, Tornike Abuladze, Beka Svirava, Irakli Chikovani, Levan Macharashvili, Keti Kobakhidze, Goga Chedia, Giorgi Ositashvili, Aleksandre Acharadze, Gogi Khakhutashvili, Barbare Aslamazishvili, Medea Alughishvili (Everyday 12:00-19:00) Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-88-08 Exhibition - “Galaktioni 120” Literature Museum 8 Giorgi Tchanturia Str. Tel: 598 16-70-48 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

DECEMBER 21, 2011

Clubs, Pubs… 21:00 - Band “Wheels”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - David Masteranov Live Band 24:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 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 - Show-program and many surprises. Singers: Giorgi Tsereteli, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - Georgian Dances Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - Band “Band’a’roll” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 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 - Live Band Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Zarebi” (Covers) Pub “Dublin”

marketing@commersant.ge +995 32 505 955

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HEADLINE NEWS & ANALYSIS

FINANCIAL

DECEMBER 19, 2011 | FINCHANNEL.COM

socially responsible companies BP’s CSR Project Given National Energy Globe Award The FINANCIAL

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By NANA MGHEBRISHVILI “The ‘Energy Efficiency Programme for Georgian Communities - Energy Bus’ that was launched by BP and its Oil and Gas Co-venturers was awarded the National Energy Globe Award in the category “Youth” at the National Energy Globe Award Ceremony held on 25 November 2011 in Wels Austria,” Rusudan Medzmariashvili, CSR Manager at BP, told The FINANCIAL. “This was one of the initiatives we have implemented in Georgia under our CSR programme. BP and its programme partners aimed to raise awareness on energy efficiency among Georgian communities with this project.” Q. How can companies in Georgia benefit from social responsibility projects? A. Social responsibility projects are beneficial for any company since they positively contribute to the company’s reputation both with external (governments, customers, service providers, general society etc) as well as with internal (company’s employees) stakeholders. Q. How does CSR effect a company’s financial success and can a responsible business help prevent recession? A. 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 creation of a favourable working environment, creation of a sustainable environment for business development, which if addressed in a proper way will certainly create favourable conditions for business development, therefore contributing to a company’s financial success. Q. How can Georgian soci-

Rusudan Medzmariashvili, CSR Manager at British Petroleum

ety support or encourage the development of social responsibility among Georgian businesses? A. Georgian society has a role to play in encouraging businesses to act in a responsible way through its interest and participation in the ways the company does its business, through promoting the notion of encouraging socially responsible companies, and through supporting a favourable legal regime for responsible companies. Socially responsible companies operating at high standards bring benefits to societies through skills development, setting high performance standards within the industry, and bringing lasting benefits to the neighbouring communities and society in general through different sustainable programmes. Q. What are the key directions of CSR which should definitely be implemented? Why? A. CSR should be at the core of a company’s operations affecting all

aspects of its activities in the country. I can not single out any aspect, all of them are important and should be taken care of. A responsible company should be responsible everywhere and at all times. Consulting NGOs on certain developmental aspects is beneficial for companies, since this provides opportunity to see issues from a different perspective. In some cases companies can use the skills and expertise accumulated in NGOs for the company’s benefit - through consulting with NGOs, employing them as implementing partners for some environmental and social initiatives etc. Q. The social responsibility of companies in Georgia is often expressed through charity actions and does not include benefits to the company itself. What is the solution for switching existing social projects into sustainable activities? A. Charitable activities are one of the forms of taking care of the disadvantaged parts of society, and they certainly have a positive impact on a company’s image. However the effects of charitable activities are short term. In order to bring lasting benefits to society more sustainable initiatives should be implemented, and the two do not exclude each other. Q. How should companies build sustainable success in terms of CSR? A. Sustainability is the result of clearly defined long term strategy and consistency in its implementation. Q. How should companies develop employees and a future workforce to build successful working lives? A. Employee development should be at the core of each business and should be part of its long-term business strategy and vision, with the clear focus on creating equal opportunities and a balanced working environment. Surely there is more to it and it is up to each company to draw the strategy of staff development

which better fits its business purpose. Q. CSR could be considered a way of brand differentiation. What are the ethical values that companies should use based on CSR? A. Some of the top values would be respectful and trustworthy business conduct resulting in the sustainable development of wider society. 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. External (customer, shareholder, partner etc) pressure for transparency, as well as its willingness to demonstrate its adherence to best international practice.

Each company should have its own corporate values that should be crosscutting for all its activities and which should be consistently employed Q. What are the main challenges and obstacles of CSR in business nowadays? A. Although more and more companies are considering CSR seriously, there is still little awareness around it in society. Building awareness of CSR is essential for the twoway communications between business and society.

Publicity DECEMBER 16. 2011, AMCHAM MEMBERS' APPRECIATION RECEPTION.

HEIDELBERGCEMENT TO ANNOUNCE INTERNATIONAL SCIENTIFIC AND EDUCATIONAL COMPETITION THE QUARRY LIFE AWARD HeidelbergCement announced international scientific and educational competitionThe Quarry Life Award, conducted simultaneously in 17 countries, including Georgia. “It’s very important to focus on environmental issues in parallel with the country’s economic development. Quarry Life Award initiated by HeidelbergCement is another incentive for stimulating our society to become more environmentally involved,” declared Goga Khachidze, Minister of Environment Protection of Georgia, during the press conference held on December 15, 2011 at Holiday Inn hotel. HeidelbergCement Georgia calls on students and researchers to further develop the biological value of mining sites. In the frame of the project, following prices will be given to selected winners: national prizes of 1 500, 3 000 and 5 000 euros and three global awards of 10 000, 20 000 and 30 000 euros. “Quarry Life Award project initiated by HeidelbergCement is important not only for our company but for our country as well. HeidelbergCement Group made a responsible decision to

announce a competition in 17 countries worldwide in order to gather as much ideas as possible in order to assist the promotion of species diversity in quarries and gravel pits,” stated Akaki Chkhaidze, Marketing and Sales Director of HeidelbergCement. The Quarry Life Awards offers a unique opportunity to add true ecological and educational value to a mining environment. Candidates will have to choose one of the selected mining sites and submit a project around one of the four topics by February 17, 2012: Discover biodiversity in mining sites; Biodiversity and rehabilitation; Biodiversity and education; Biodiversity management during extraction. From March to September 2012, participating quarries will open their doors for the selected candidates. In November and December 2012, the national and global expert juries will reward the best projects at both levels. “3 quarries participate in Quarry Life Award project in Georgia: Kavtiskhevi Limestone Quarry in Shida Kartli, Garda-

bani Clay Quarry in Kvemo Kartli, Dedoplistskaro Limestone Quarry in Kakheti. The projects submitted have to be unique, creative and practical,” said Nino Subeliani, Communications Manager, HeidelbergCement. For detailed information visit the Georgian website: www. quarrylifeaward.ge HeidelbergCement is the global market leader in aggregates and a prominent player in the fields of cement, concrete and other downstream activities, making it one of the world’s largest manufacturers of building materials. The company employs some 53,000 people at 2,500 locations in 40 countries. With its leading position in the Georgian cement market, HeidelbergCement Georgia operates three cement plants in the Kaspi and Rustavi Regions. HeidelbergCement employs more than 1100 people in its production companies in Georgia: HeidelbergCement Georgia (former SaqCementi) and Kartuli Cementi. Beside the cement companies, HeidelbergCement successfully operates in concrete business line and owns production company HeidelbergBeton Georgia.

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | DECEMBER 19, 2011 SANCHO

23, Akhvlediani Str. Tel: (+995 32) 2982598

SANTA FE

20, Akhvlediani Str. Tel: (+995 32) 2935848

COFFEE GE

27, Abashidze Str. Tel: (+995 32) 2225066

TOUKAN

| places we strongly reccommend to visit | PICASSO

Hangar Bar

VERA STEAKHOUSE

SEGAFREDO ZANETTI ESPRESSO

TSISKVILI

# 71 Vazha-phavela Ave.

37, Kostava Str. Tel: (+995 32) 2983767

26, Chavchavadze Ave Tel: (+995 32) 2223677

PREGO

DUBLIN IRISH PUB

BUFFALO BILL

SIANG-GAN

8, Kiacheli Str. Tel: (+995 32) 2996553

Red Café - Bistro & Cafe Tel: 2201 211 info@redcafe.ge

2, Vazha pshavela Ave. Tel: 373610 7, Paliashvili Str. Tel: 225 22 58 25, Tarkhnishvili Str. Tel: 225 25 16

DISCOVERY

40, Chavchavadze Ave. Tel: (+995 32) 2294230

13 Taktakishvili Str. Tel: 591198398 20 Rustaveli Ave. Tel: 591193968 19 Petriashvili Str; 7 Pekini Str. 78 Bagebi Str

8, Akhvlediani Str. Tel: (+995 32) 2984467

Belle Ville

4, Vashlovani Str. Tel: (+995 32) 2989086

16, Akhvlediani Str. Tel: (+995 32) 2936052

# 20 Shavteli Str. Tel: (+995 32) 293 10 80

Beliashvili Str. Tel: (+995 32) 2530797

41, Gamsakhurdia Str. Tel: (+995 32) 2379688

Better seen than heard

ENGLISH TEE HOUSE

26, l.Kiacheli Str. Tel: (+995 32) 293 65 53

French - European bar-restaurant Pleasant and cozy atmosphere High quality service, live music every day

2 24/

Better seen than heard

Entree

dining

DONUTS

10/12, Abashidze Str. Tel: (+995 32) 2253985

5, Marjanishvili Str. Tel: (+995 32) 2941620 32, Paliashvili Str. Tel: (+995 32) 2221109

4 Freedom Square, Tel: 254 70 30 E-mail: tbilisi.fs@citadines.com

Prospero’s Books

34, Rustaveli Ave. Tel: (+995 32) 2923 592

www.citadines.com

LITERATURULI CAFÉ 64, Paliashvili Str. Tel: (+995 32) 2250669

2, Tarkhnishvili Str. Tel: (+995 32) 2444546 31, Pekini Str. Tel: (+995 32) 2313057 22, Abashidze Str. Tel: (+995 32) 2220276 36, Kostava Str. Tel: (+995 32) 2990746

43 Abashidze Str. Tel: 222 60 18

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HEADLINE NEWS & ANALYSIS

socially responsible companies

FINANCIAL

DECEMBER 19, 2011 | FINCHANNEL.COM

GEORGIA - LAND OF THE FREE

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