February 2012

Newsletter

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Dear readers,

Ernst & Young presents the newsletter on corporate responsibility. This issue is devoted to Ernst & Young’s most recent educational initiatives.

Corporate Responsibility: Educational Initiatives Contents • Congratulations to the graduates of Ernst & Young University’s new

course • CSR seminars for students • Business Case Competition winners will be trained at Ernst & Young • Coffee with a Partner project for KNEU students • Mentor from Ernst & Young leads team to CFA competition final • Preparing corporate responsibility professors • Ernst & Young partners for World Without Borders educational program • SCHOLAR program supports orphans graduates

Congratulations to the graduates of Ernst & Young University’s new course This year's Ernst & Young University lecture course introduced a new module: “Transaction Support.” Students attended a course of lectures delivered by the company’s employees on the subjects “M&A: Fair Play,” “Due Diligence: Analysis of Advantages and Risks Related to a Potential M&A Transaction” and “Business Valuation: Art or Science?"

In January, students were awarded diplomas certifying that they completed the training course. “The specialists’ lectures helped me to systematize my knowledge and understand that I’ve chosen the right direction for my professional development," said one student.

The main purpose of Ernst & Young University is to give students practical knowledge of the sort that will help them better to choose future occupation. During lectures, students also have the opportunity to discuss with employees of different levels key trends in the profession and possible directions for career development.

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We express our gratitude to the instructors of the Ernst & Young University for their interesting presentations: Oleksandr Romanishyn, Liudmyla Kravchuk, Pavel Kolesnik and Marianna Yakubenko.

For more information on the Ernst & Young University program, please refer to our site.

CSR seminars for students In communicating with students, the company’s representatives have noted the low level of knowledge about the concept of business social responsibility, as well as a keen interest in it. Currently, academic courses on CSR are taught at only a few higher education establishments in the country. We thus decided to include a CSR module in the Ernst & Young University curriculum.

The first seminar in Kyiv generated lots of buzz. In several days we received over 80 applications to participate, and students from other cities even wanted to come. The seminar program includes a theoretical part about the origin of the CSR concept and its development at the global and national levels as well as a presentation about the CSR program at Ernst & Young that takes into consideration actual tasks and how to fulfill them. The participants received materials and a list of useful sources on CSR and sustainable development. Two seminars for 35 students have taken place so far. The next seminars are scheduled for 13 February in Donetsk and 1 March in Kyiv.

Business Case Competition winners will be trained at Ernst & Young Just after the New Year and Christmas holidays the awards ceremony for the winners of the Business Case Competition for Vadym Hetman Kyiv National Economic University students took place at the Kyiv office.

Ganna Kurylenko, a Senior Audit Manager, and students analyzed the cases, announced the correct solution and then called the names of the winners, who got the chance to do a traineeship program in the Audit Department.

Congratulations to Kateryna Kuvitsa,

Dmytro Kravchenko, Svitlana Roganova, Denys Prykhodko, Pavlo Rybalka and Gleb Aleksin on the victory!

We express our gratitude for conducting the Business Case Competition to Andriy Misky-Ohlu and Ganna Kurylenko

Coffee with a Partner project for KNEU students The unique “Coffee with a Partner” project offers students the chance to have informal communications with Ernst & Young partners. They get to discuss the secrets of a successful career and learn about assessment criteria for candidates for vacancies at the company.

In November, the first meeting of the 2011-2012 academic year took place, allowing Vadym Hetman Kyiv National Economic University students to meet with Tom Cradock-Watson, an Audit Partner. Tom shared with students the history of his professional success and told them not to be afraid to start their careers or to use every opportunity to prove themselves.

Volodymyr Kotenko, Leader of the Tax & Legal Practice, met with students on New Year’s Eve. The proposed topic of discussion, “Household Taxes,” aroused keen interest

among both the lawyers and economists who were present. Volodymyr focused on the major changes the Tax Code has brought and told the students about how they impact every citizen.

Mentor from Ernst & Young leads team to CFA competition final Ernst & Young recently supported the Second All-Ukrainian CFA Institute Research Challenge. The CFA Institute promotes best practices in equity market research among future financial analysts by engaging mentors from the business world and conducting intensive training in business analysis and presentation skills. This year, Stanislav Kartavykh, a Corporate Finance and

M&A Senior at Ernst & Young, was mentor to the Kharkiv National Economic University’s team. Owing to the fruitful cooperation of the mentor and the team, the students won a place in the competition final and proved themselves one of the six best teams in Ukraine. We congratulate Stanislav and his team and wish them victory next year!

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Preparing corporate responsibility professors During 23-28 January, in Rivne, the Ukrainian Association for Management Development and Business Education conducted a training program for professors of Ukrainian institutions of higher education. The Winter Institute was devoted to “Corporate Social Responsibility of Business and Education: Experience and Problems of Development.” The event was attended by 30 professors of the new CSR course at 10 educational establishments in nine cities of Ukraine - Alchevsk, Dnipropetrovsk, Kyiv, Kolomyia, Kramatorsk, Lviv, Lutsk, Rivne and Ternopil.

Leading experts and trainers and managers of companies that have adopted CSR practices took part in the Winter Institute’s work. Representatives of the UN Global Compact network, the CSR Development Center, Obolon, Kyivstar and Ernst & Young spoke to the professors.

Natalia Telenkova, Head of the CR Committee at Ernst & Young, and Victor Kovalenko, Head of Sustainability Services at Ernst & Young, presented the company’s

strategy and activities in the area of CSR, described the principles of the audit of non-financial reports and answered numerous questions from the Winter Institute participants.

Since 2009, the subject “Corporate Social Responsibility” has been included into training curricula for specialists in the areas of “Economics and Entrepreneurship” and “Management and Administration.” The course familiarizes the specialists with the general logic of interaction between business and the community and with modern models of organization management in view of social and environmental risks and creates a basic knowledge of CSR theory and practice. It also facilitates the development of professional competence to ensure the formation of socially responsible behavior. To prepare professors in this subject, the Ukrainian Association for Management Development and Business Education has also presented two Summer Institutes, a series of round table discussions, competitions and scientific research projects.

Ernst & Young partners for World Without Borders educational program For the second time Ernst & Young acted as a strategic partner of the World Without Borders educational program presented by AIESEC, the world’s largest student-run organization. The first stage of the program ended in February and was attended by 530 senior pupils from 12 schools in Kyiv. Eleven interns - students from China, Colombia, Bulgaria, Egypt, Australia, Singapore and Brazil - held interactive lessons for pupils, presenting the cultures of their countries and talking about their career choices and the development of useful skills for success.

The event was conducted in a relaxed atmosphere of training sessions, discussions, role playing games and master classes. The training was conducted solely in English, which allowed the pupils to overcome the language barrier and improve their language skills.

SCHOLAR program supports orphans graduates At Ernst & Young we believe that everyone can succeed, if only they get the chance. Therefore, for the fifth year Ernst & Young is supporting the Scholar program for student orphans, implemented by the Pryiately Ditey Charity Fund.

Teens who graduate from orphanages often lack social skills and goals, negatively perceive the world and have trouble solving simple problems. Their chances for success are minimal. The statistics of how the lives of these children develop are sad. The

purpose of the Scholar program is to support those who seek to become full members of society. The program does not offer only scholarships for higher education. It also offers human care and friendship. Meetings with sponsors, cultural events, training sessions, psychological and legal advice,

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success stories and participation in volunteer initiatives all help the young people change their attitudes to the world, adapt to their environments and find themselves. Ernst & Young volunteers often participate in meetings and are ready to witness that the program is very important for teenagers. Numerous examples testify to how the program changes the lives of those whose chances for success can seem unreal.

The program has been running for 15 years and already has over 600 graduates. Ernst & Young volunteers interviewed a number graduates and prepared a brochure about the program. We believe that the stories in this brochure will inspire orphanage pupils to participate in the program, and potential sponsors to support it. You can get a copy of the brochure about the Scholar program at the Ernst & Young reception on the 4th floor.

The brochure was compiled by: Kateryna Gorbunova (idea, coordination), Olga Danchenkova (interviews and design), Iryna Naumenko (interviews, design, text) and Natalia Telenkova (coordination, editing).

Ernst & Young’s employees participate in the SCHOLAR program as sponsors and student mentors. In 2012, the company paid for nine students to take part in the program. Another eight students received financial support from the company’s employees. Some employees meet with their wards, sharing personal experiences and becoming friends.

Students express their deep gratitude to: Yulia Studynska, Anzhela Nikolayenko, Natalia Telenkova, Kateryna Gorbunova, Kateryna Rabtsun, Rostyslav Grygorenko, Kateryna Bondar, Liudmyla Kravchuk and one more sponsor who wished not be named.

The Company’s employees conduct useful presentations for students on such topics as “How to Create a Competent Resume” (Ielyzaveta Maksymets), “How to Solve and Prevent Conflicts” (Svetlana Sologub) and "Why It’s Necessary to Learn English” (Anna Roshchupkina).

In addition, since January 2012, a group of Ernst & Young volunteers has been running an English language school for scholars, holding English lessons in the company’s offices every Saturday afternoon. Based on preliminary testing results the students are divided into three groups according to their level of training. The classes will last until May 2012.

We express our gratitude to all our employees who teach English to student-orphans: Anna Roshchupkina, Olga Podilchyk, Anna Sydorchuk, Kateryna Korolenko, Yelena Bykova, Anastasiya Lysyanska, Valentyna Ivanets and Nadiya Trynchuk.