yuri e.blagov social responsibilities of russian business: prospectives on khodorkovsky dr.yuri...
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Yuri E.Blagov
SOCIAL SOCIAL RESPONSIBILITIES OF RESPONSIBILITIES OF RUSSIAN BUSINESS: RUSSIAN BUSINESS: PROSPECTIVES ON PROSPECTIVES ON KHODORKOVSKYKHODORKOVSKY
Dr.Yuri E.Blagov
School of Management
St.Petersburg State University
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Yuri E.Blagov
SRB CONCEPT: STAGES OF SRB CONCEPT: STAGES OF DEVELOPMENT INDEVELOPMENT IN RUSSIA RUSSIA
Till August 1998 - just in theory and in textbooks
Since August 1998 – growth of interest from business community as well as society
2003 – new wave of interest connected with president’s approach
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Yuri E.Blagov
SOCIAL RESPONSIBLE SOCIAL RESPONSIBLE BUSINESS (BUSINESS VIEW)BUSINESS (BUSINESS VIEW)SRB Attributes 2003 (% of
respondents)Profits, taxes, working places, legalbehavior, ethical behavior, development ofsociety
47
Profits, taxes, working places, legalbehavior, development of society
27
Profits, taxes, working places, legalbehavior
23
No idea 3
Association of Managers
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Yuri E.Blagov
RUSSIANS ON RUSSIANS ON PRIVATIZATION’S RESULTSPRIVATIZATION’S RESULTSPublic opinion poll 2003 (%)
Every privatized property should be givenback to the State
37
In case of illegal privatization procedures,property should be given back to theState
31
Let privatized property alone 20
No idea 12
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Yuri E.Blagov
SOCIAL GROUPS SOCIAL GROUPS DIFFERENTIATION (2003)DIFFERENTIATION (2003)
Social group % of population Incomemonthly perfamily head/Rb
Wealthy people 5% (7 millpeople)
40000
Poor people 25% (35 millpeople)
till 1500 (50%)till 3000 (50%)
Middle class (?) 70 mill 3000-40000
VCIOM
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Yuri E.Blagov
THE PYRAMID OF CORPORATE THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILITYSOCIAL RESPONSIBILITY
PHILANTROPIC
Responsibilities
ETHICAL Responsibilities
LEGAL Responsibilities
ECONOMIC Responsibilities
Caroll, 1991.
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Yuri E.Blagov
STAKEHOLDER/STAKEHOLDER/RESPONSIBILITY MATRIXRESPONSIBILITY MATRIX
Social ResponsibilityStakeholder
Economic Legal Ethical Philan-tropic
Customers ? ? ? ?
Owners ? ? ? ?
Employees ? ? ? ?
Bureaucracy ? ? ? ?Organizedcrime (?)
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Yuri E.Blagov
YUKOS CASEYUKOS CASE YUKOS:
– Biggest Russian oil company (2003) 80,7mill ton extracted oil $2,22 bill net profit
– Since the mid 2003 attacked by the Kremlin for “taxes cheating” (98 bill Rb)
– Mikhail Khodorkovsky, CEO and principal shareholder of YUKOS arrested in October 2003 and put into jail
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Yuri E.Blagov
YUKOS CASEYUKOS CASEREASONS? Economic (taxes) National security
(deal with Exxon Mobil)
Political (support to parties)
613676_20031224122854.jpg
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Yuri E.Blagov
YUKOS CASEYUKOS CASE Mikhail Khodorkovsky:
– Manager of the year (2003, Association of Managers)
– Man of the year (2003, Expert) YUKOS:
– No 2 in Good Corporate Governance List (2003, Energy Intelligence)
– No 1 in Good corporate Governance List (2003, Russian Investors Association)
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Yuri E.Blagov
YUKOS CASEYUKOS CASE1986: Student, Secretary of Komsomol Committee in Moskow Mendellev Institute (chemistry)
1986: Café-discotheque Director
1987: Youth Center for Scientific Creativity (NTTM) Director
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Yuri E.Blagov
YUKOS CASEYUKOS CASE 1987: Deputy Secretary
of the Frunze district Komsomol Committee (Moskow)
1987: Director of the network of NTTM centers (5000 empl.)
1990: Co-owner of MENATEP-INVEST bank (PCs import, raw materials export)
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Yuri E.Blagov
YUKOS CASEYUKOS CASE 1992: Co-owner of
MENATEP-INVEST bank (government accounts service)
1993: Deputy minister of fuel and power
1995: CEO and principal shareholder of YUKOS (“loans-for-shares privatization”
file----C--Documents%20and%20Settings-yblagov-Yukos-620745_20040121180952.jpg.URL
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Yuri E.Blagov
«WILD OLIGARCHY» CAPITALISM
«REGULARCAPITALISM»
Social contract?
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Yuri E.Blagov
PUTIN’S APPROACH
“I keep hearing that laws were complicated and it was impossible to respect him. Yes, laws were complex and intricate, but it was quite possible to respect them…
Those who were involved in deliberate fraud put themselves in more favorable conditions than those who played the rules. The latter may not have earned so much money, but they now sleep well.” December 2003
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Yuri E.Blagov
POTANIN’S APPROACH
“Business, by definition, cannot be in opposition to the authorities.”
December, 2003
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Yuri E.Blagov
SRB CONCEPT AND RUSSIAN SRB CONCEPT AND RUSSIAN BUSINESSBUSINESS
Moral Unity I
Moral Unity I
Amoral business
Amoral business
Moral Unity II
Moral Unity II
Social Contract
Chart of Corporate and Business Ethics
2002
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Yuri E.Blagov
INSTITUTIONAL SYSTEM: INSTITUTIONAL SYSTEM: CAPITALISM VS.SOCIALISMCAPITALISM VS.SOCIALISM
Governance structures
Institutional environment
Embedded institutions
Resource allocation and coordination
Ownership Motivation
CAPITALISM Markets/hierar-chies
Private Self-interest
SOCIALISM Central planning
State Collective interest
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Yuri E.Blagov
RUSSIAN AND AMERICAN RUSSIAN AND AMERICAN BUSINESS ETHICSBUSINESS ETHICS
I
*Keeping one’s word
*Maintaining trust
*Fair competition
*Rewards commensurate with performance
III
*Personal favoritism and grease payments
*Price fixing
*Manipulating data
*Ignoring senseless laws and regulations
IV
*Maximizing profits
*Exorbitant salary differentials
*Layoffs
*Whistleblowing
II
*Gangsterism, racketeering and extortion
*Black market
*Price gouging
*Refusing to pay debts
Ethical Unethical UNITED STATES
Ethical
Unethical
RUSSIA
Puffer& McCarthy, 1995.
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Yuri E.Blagov
MAJOR RUSSIAN POLITICAL MAJOR RUSSIAN POLITICAL PARTIES/MOVEMENTS (PARTIES/MOVEMENTS (20032003))
Communist Party of Russian Federation (KPRF)
Gennady Zuganov
Market-planning/ moderately market-oriented
Liberal-Democratic Party of Russia (LDPR)
Vladimir Zhirinovsky
Market-oriented/ nationalistic (moderate state regulations)
Yabloko ("Apple") Grigory Yavlinsky
Market-oriented (liberals)
Unified Russia (Medved)
Boris Grislov
Market-oriented (moderate state regulations)
Rodina (Motherland)
Dmitry Rogozin
Market-oriented/nationalistic (state regulations)
Union of Right Forces (SPS)
Boris Nemtsov
Market-oriented (monetarists)
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Yuri E.Blagov
RESULTS OF 1999 DUMA RESULTS OF 1999 DUMA ELECTIONSELECTIONS
Major parties
Party-list vote (%)
Seats won by party
Seats won as SMD
Total seats
KPRF 24.3 67 46 113
Unity 23.3 64 8 72
Fatherland-All Russia
13.3 37 30 67
URF 8.5 24 5 29
LDPR 6.0 17 0 17
Yabloko 5.9 16 5 21
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Yuri E.Blagov
RESULTS OF RESULTS OF 20032003 DUMA DUMA ELECTIONSELECTIONS
Major parties
Party-list vote (%)
Seats won by party
Seats won as SMD
Total seats
Unified Russia
37.6 120 105 225
KPRF 12.6 40 12 52
LDPR 11.5 36 4 40
Rodina 9.0 29 8 37
SPS 4.0 2 2
Yabloko 4.3 4 4
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Yuri E.Blagov
OPINION POLL: PUTIN OPINION POLL: PUTIN RESEMBLES...RESEMBLES...
Yuri Andropov 18.0%Boris Yeltsin 6.8%Tsar Peter the Great 4.9%Mikhail Gorbachev 3.7%Vladimir Lenin 3.0%Bill Clinton 2.4%Nikita Khrushchev 2.0%Charles de Golle 1.9%Josef Stalin 1.5%"Absolutely unique" 37.5%
ROMIR