EURASIA PARTNERSHIP FOUNDATION

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EURASIA PARTNERSHIP FOUNDATION

• From Corporate Philanthropy to Corporate Social
  Investment
• Tbilisi, Georgia
• March 12, 2009

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Prominent Azerbaijanian philanthropists

• H.Z. Taghiyev (1823-1924)- created a female
  lyceum in Azerbaijan,
• he made investments into the solution of problems
  of female literacy,
• change of the social status of women.
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• Agha Musa Naghiyev (1849-1919) built one of the
  most wonderful palaces in Baku
• "Ismailiye" and offered it as a gift to the
  Muslim Charity Society. He also built the
• city's largest hospital which was built in 1912
  and still functions today.

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Corporate Philanthropy Nowadays

• Charitable giving made purely for the
  sake of vulnerable groups benefit, without any
  marketing or PR activitiesCharitable giving
  with the intent of improving the companys brand
  image and reputation, with a strong focus on
  marketing and public relation activities

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Corporate Philanthropy

• Nice to do
• Value to Community
• Less or No value to company

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Corporate Social Investment

• Addresses important social and economic goals
  simultaneously
• Benefit for Community and Company
• Clear Business Relevance

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Corporate Philanthropy versus CSI

• An IT firm donates computers to local schools -
  An IT firm develops network technology classes at
  a local university
• A travel company sponsors a concert with local
  musicians - A travel company helps preserve the
  historical legacy of the regions their customers
  visit

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Benefits of CSI

• Targeted funding based on shared corporate
  community goals
• Simultaneous social and economic benefit
• May involve multi-stakeholder projects
  partnerships with NGOs
• Strategic focus
• Most efficient use of resources

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EPFs CSI Program Objective

• To encourage the strategic social investments by
  local business and joint ventures into the
  long-term social and economic development of the
  country.

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Program Areas

• Network Development
• Consulting and Capacity Building
• Information Dissemination

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Successful examples of CSI

• Azerfon LLC
• 140 students directly participated in the Career
  development related trainings (5 trainings in
  Baku, 1 training in Ganja and 1 training in
  Lenkoran).
• Approximately 38 students (27 of total
  participants) have already gotten job by 1st
  July, 2008.
• Cooperation between NGO, business and government
  (Ministry of Youth, Ministry of Education,
  Ministry of Communication and Information
  technology).

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Successful examples of CSI (cont.)

• AccessBank
• With support of the Invalids Social Protection
  Fund has organized special trainings for teaching
  general banking business to 30 young people
  having physical disabilities.  
•      
• Upon completion of the workshop held for the
  first group 6 young people were employed in the
  AccessBank

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Successful examples of CSI (cont.)

• Azersun Holding
• Cultivation of the sugar beet agriculture crop in
  the Imishli region
• All farmers were provided with seeds,
  fertilizers, agriculture equipment and free
  consulting from specialists of the sugar factory
• 2,500 landowners signed contracts with Azersun

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Challenges for CSR in Azerbaijan

• No tax incentives for Businesses to engage in CSR
• Lack of trust to NGOs from Business
• Lack of business way of thinking among leaders of
  NGOs
• Lack of transparency in operations among some
  business companies

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Opportunities for CSR

• Existence of relatively active business sector
• Interest of some large national business
  companies to enter the foreign markets (Azersun
  Holding, SOCAR etc.)
• State providing grants to NGOs for projects
  related to CSR
• Many companies starting CSR initiatives
• Public-private partneship