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                        Our Future –
                        Our Responsibility


PwC Russia Corporate
Responsibility Report
2   Corporate Responsibility Report
Content
Introduction                                                                                4
A letter from Peter Gerendasi, Managing Partner of PwC Russia                               5
PwC Russia: A few facts and figures                                                         6
Corporate responsibility                                                                    7
Our CR agenda                                                                               8
Four main CR focus areas                                                                    9
Our stakeholders                                                                           10
Management and governance of CR at PwC Russia                                              10
Our report                                                                                 11
Community                                                                                  12
      Our objectives                                                                       12
      Local communities                                                                    13
      Universities                                                                         16
      Challenges and plans for the future                                                  17
Environment                                                                                18
      Our objectives                                                                       18
      Environmental standards in the new office                                            19
      Our savings                                                                          20
      The Green Team                                                                       20
      Suppliers                                                                            21
      Use of public transport                                                              21
      Challenges and plans for the future                                                  21
People                                                                                     22
      Our objectives                                                                       22
      Learning and development                                                             23
      Leadership programmes                                                                24
      Global Mobility                                                                      25
      Well-being                                                                           25
      Communication                                                                        26
      Ethics                                                                               26
      Diversity                                                                            27
      Challenges and plans for the future                                                  27
Marketplace                                                                                28
      Our objectives                                                                       28
      Shaping the public agenda                                                            29
      Working with regulators                                                              30
      Thought Leadership                                                                   30
      Dialogue with clients                                                                31
      Professional and business associations                                               32
      Dialogue with alumni                                                                 32
      Dialogue with mass media                                                             33
      Challenges and plans for the future                                                  33
Attachment 1. PwC Russia’s ratings and awards received in 2010                             34
Attachment 2. Key stakeholders                                                             35
Attachment 3. Non-governmental organisations                                               36
Attachment 4. Business associations                                                        37
GRI Content Index                                                                          38
Glossary of terms                                                                          42
Contact information                                                                        44

                                                         Corporate Responsibility Report        3
Introduction




                                       As in previous years, the concept of corporate responsibility (CR) continues to
                                       be a vital element of the PwC 1 network’s strategy in Central and Eastern Europe.
                                       This strategy is aimed at laying a strong foundation for our sustained competitive
                                       advantage and covers the period up to 2016. It encompasses three key areas:
                                       expanding our strategic capabilities, building value through our client
                                       relationships, and bringing the One Firm concept to life across all the PwC firms
                                       in CEE. The concept of sustainable development is the basis for our corporate
                                       responsibility programme.
                                       We continue to educate our employees, clients, suppliers, NGOs, government
                                       authorities, local communities and other stakeholders about our approach to
                                       sustainable development, which we see as the philosophy that drives successful
Lioudmila Mamet                        long-term business development. This is our second CR report, and we don’t aim
PwC CEE Corporate Responsibility       to give a detailed description of all the CR projects that we’ve initiated here.
Leader                                 Rather, our objective is to provide transparent and accurate information on the
                                       most important aspects of PwC’s corporate responsibility programme, as well as
                                       our key accomplishments and the tasks that still lay ahead.
                                       We have a good understanding of our programme’s strengths as well as of those
                                       areas where we still have work to do. But this understanding alone is not enough;
                                       we also need active, constructive feedback from all stakeholders for whom this
                                       report is intended. This helps us to obtain the fullest and most objective picture
                                       of our role in society. We would be most grateful for your opinions and comments
                                       about our report.




                                       1
                                           Terms in bold italics can be found in the Glossary on pg 42



4    Corporate Responsibility Report
A letter
from Peter Gerendasi,
Managing Partner of
PwC Russia


Dear readers,
I am pleased to present PwC Russia’s second corporate             satisfaction with our corporate responsibility efforts,
responsibility report, covering the period 1 July 2009 through    confirming that we are on the right track.
31 December 2010. In our previous report, we focused on the       Many notable events have occurred since the publication
results achieved in our first year of implementing a regional     of our first CR report. These include:
corporate responsibility strategy, with the aim of giving
readers a picture of our place in the business community, our     • We celebrated PwC’s 20-year anniversary in Russia.
influence among our extensive circle of stakeholders, and our     • We have continued to build up our strategic potential
overall mission and objectives. It’s time now for a new report,     by creating new service offerings that reflect the needs
and looking back at the past year and a half, I am proud of         of our clients, and by expanding our geographical
what we have succeeding in doing in the area of corporate           footprint across Russia.
responsibility.
                                                                  • In the aftermath of the crisis, we have succeeded in
I am especially proud of our local community outreach               retaining a talented pool of employees and continued our
programme and all the diverse initiatives that it encompasses.      investment in their professional and personal development.
Our focus has shifted away from simply providing assistance
in response to our partners’ requests towards a more              • We have made a committed effort to participate in major
integrated strategic approach to selecting which programmes         innovation-driven initiatives and projects on a national
to support. We have developed a policy that encourages              scale, such as the Skolkovo Innovation Centre, the Sochi
volunteerism and tried to focus on putting the extensive            2014 Winter Olympics and the project to transform
knowledge and expertise of our people to work where they            Moscow into an international financial centre.
are needed most.                                                  PwC Russia is already over 20 years old, and a significant
We’re continuing our efforts to reduce our environmental          factor in our successful growth in the Russian market has
footprint. The move to our new office, where we have made         been our commitment to corporate responsibility. It’s our
every effort to incorporate progressive international             mission to fully integrate CR into our business model and
environmental standards, represents a qualitatively new stage     decision-making processes, and to increase our influence
in this critical endeavour. We’ve retained our leadership         within the broader society around us.
position in the market despite vigorous competition and           Our initial steps and successes have given us the confidence
continue to work toward building value for our clients            to believe that, working together, we can create a sustainable
through trust-based relationships. We contribute to the           future for all of us.
development of responsible leaders of the future who will
have the experience, knowledge and ability to foster strong
relationships and build value for our clients.
We’re pleased that our CR initiatives enjoy the solid support     Peter Gerendasi
of our people. According to a global survey conducted             Managing Partner
in 2010, 84% of PwC Russia respondents expressed                  PwC Russia




                                                                                                  Corporate Responsibility Report   5
PwC Russia:
a few facts and figures
PwC is the leading professional services network in the world.   Our client base comprises 2,000 companies, including
PwC firms provide industry-focused assurance, tax and            166 companies from the Expert 400 list, accounting for
advisory services. More than 161,000 people in 154 countries     73% of the list’s revenue. Among our clients are:
across our network share their thinking, experience and
                                                                 •   4 of the 10 largest ferrous metallurgy companies
solutions to develop fresh perspectives and practical advice.
                                                                 •   7 of the 10 largest retail companies
Recently PwC celebrated 20 years in Russia. We keep
growing, with offices now in six cities: Moscow,                 •   9 of the 10 largest oil and gas companies
St Petersburg, Kazan, Ekaterinburg, Yuzhno-Sakhalinsk
                                                                 •   10 of the 10 largest banks
and Vladikavkaz.
                                                                 •   4 of the 5 largest telecommunications companies




                          PwC Russia highlights:
                              • More than   2,000 employees (as of 31 December 2010) working in six offices
                              •   188 hours of learning and development per employee were delivered
                                  over the reporting period

                              •   119 professional qualifications were received by staff in 2010,
                                  including 77 ACCA qualifications

                              •   55 of 158 top managers in PwC are women
                              •   1,550 hours of pro bono lectures were given in universities by PwC staff
                              • Over   200 volunteers contributed 3,000 hours for community needs
                              •   27 projects were carried out under our corporate philanthropy programme
                                  Ratings and awards received in 2010 are listed in Attachment 1.




6    Corporate Responsibility Report
Corporate responsibility

Since 2008, when a corresponding programme was adopted           Our idea of corporate responsibility is closely tied
by the Central and Eastern Europe (CEE) regional network,        to what we refer to as the core of our corporate culture –
PwC Russia firms have regarded corporate responsibility as       the PwC Experience. The PwC Experience underpins our
an integral part of their strategy. Prior to this, we had been   business strategy and forms the basis for most of our internal
implementing a charity programme under the name                  learning and development programmes. Its core principles are:
Connected to Russia for a number of years.                       • We invest in relationships
                                                                 • We share and collaborate
We detailed our first steps under the Connected to Russia
                                                                 • We put ourselves in each others’ shoes
programme in our 2009 CR report. We still take pride in
the initiatives that grew beyond PwC to attract hundreds of      • We enhance value through quality
collaborators (see 2009 PwC Corporate Responsibility Report,     In many ways, the PwC Experience philosophy complements
Charity Instead of Gifts, Charity Club meetings). However,       our goals in the area of corporate responsibility: both focus on
time goes on, and while we give the past its due, we’re making   relations with stakeholders, be they internal or external, both
ambitions plans for the future, expanding our business and       focus on increasing the positive impact we have, and both
shaping the public agenda, developing further our system         derive their strength from our core values of leadership,
of key performance indicators.                                   excellence and teamwork.




      The PwC Experience
         The PwC Experience is a reflection of
         our efforts to ensure PwC’s sustainable
         competitive edge and contribute to our
         clients’ and employees’ success. Across
         the whole of PwC’s international
         network, bringing the PwC Experience
         to life is one of our top priorities.




                                                                                                Corporate Responsibility Report   7
Our CR agenda


Globally, PwC is a signatory to the UN Global Compact.             In 2010 the PwC Global Corporate Responsibility Board
In addition, in 2009 PwC signed up to the RSPP (Russian            outlined a strategy for CR’s further development, centred
Union of Industrialists and Entrepreneurs) Social Charter          on three key themes: climate change, education and
of Russian Business, which is a set principles for responsible     social inclusion/diversity. These themes serve as the guiding
business practices. In doing so, the firm assumed a voluntary      principles that focus our actions in each of the above
obligation to follow these principles in our interaction with      four CR areas. PwC’s global sustainability programme
local communities, investors, business partners,                   emphasises the importance of coordinating our CR efforts
the authorities, workers and civil society.                        and the PwC Experience behaviours, maintaining dialogue
                                                                   with stakeholders, and embedding these values and
                                                                   behaviours in our core activity.
Our choice is to do good business, act responsibly vis-à-vis all   In all of Russia’s regions where we operate, we implement
our stakeholders, have a long-lasting positive impact on the       programmes under a common plan, with consideration for
community, lead the way, and articulate with confidence our        regional specifics and stakeholder needs. In the reporting
vision of a sustainable future. We see our goal in making sure     period we’ve achieved better coordination of CR activities in
that our corporate responsibility activities are aligned with      our regional offices; they’ve become better aligned with our
our overall business strategy.                                     strategy and organisational structure.




         We have identified four key areas where
         we measure our impact on stakeholders:
         • Community
         • Environment
         • People
         • Marketplace




8     Corporate Responsibility Report
Four main CR focus areas


Our main goal in the Community area is to be a good              Our focus in the People area is promoting a culture that
corporate citizen and act responsibly. We take our share         will help our employees realise their full potential by using
of responsibility for the well-being of the local communities    progressive training methodologies and rewarding high
in which we operate. We continue to implement our                performance. The economic downturn could not but affect
corporate philanthropy programme and engage with                 PwC’s business, but the company continued investing in
Russian universities. PwC actively encourages volunteering       professional development and talent management programmes.
and supports disadvantaged social groups and NGOs.               In particular, we have continued to improve our coaching
We describe our volunteering policy in detail in the             system, have created new forums for active dialogue with
Community section of this report. In volunteering we try         employees and have improved our communications with staff.
to maximise the impact of our main intellectual asset –          The firm’s move to the new office provided new opportunities
the knowledge and expertise of our staff – and we’re working     for taking better care of employees’ health.
to extend the educational component of our corporate
philanthropy programme.                                          In the area of Marketplace we focus on innovation.
                                                                 We never lose sight of our priority goal: the high quality
Our efforts in the Environment area are aimed at                 of our services, professional expertise and business conduct.
managing our environmental impact. The nature of our             We understand that the world is changing and the knowledge,
business activity has not changed: we continue to consume        business practices and solutions that have ensured our
electricity and paper, and our employees frequently travel       leading market position in the past are no longer enough in
on business. We have carried on with our Small Steps             the current environment. Market leaders today need to take
programme (please see the 2009 PwC Corporate                     innovative approaches to traditional services, and have
Responsibility Report for more details). But most importantly,   an in-depth understanding of the client’s business and insight
we have achieved a much higher level of control over our         into areas that traditionally were outside the focus of the
environmental footprint through concerted efforts to make        business community. Our clients expect us to act in a fair
our new office at the White Square Office Centre progressive     and ethical way, be transparent, provide high-quality services
and state-of-the-art in terms of technical facilities and        in good faith, and play a leading role in shaping the public
amenities.                                                       agenda. The downturn has made us leave our comfort zone
                                                                 and start working on challenging new projects, some of which
                                                                 we have already started implementing.




                                                                                               Corporate Responsibility Report   9
Our stakeholders
Our stakeholders are groups or individuals who are affected
by PwC’s activities, or who can affect ours. Many diverse
stakeholders and stakeholder groups are important for us,
and our interaction with them forms the basis of our
corporate responsibility programme.
We’ve identified key stakeholders in each of the four CR focus
areas, and in the reporting period we engaged in a more
active dialogue with some of them (e.g., with PwC employees
and NGOs). We should be further improving our stakeholder
dialogue both in terms of its regularity and depth.
Stakeholder engagement is an ongoing process requiring
time and effort. Our aim is to systematise this process
and create communication channels that will ensure this
dialogue is ongoing.                                             Attachment 2 summarises our main groups of stakeholders
                                                                 and various communication channels with them.




Management and governance
of CR at PwC Russia
CR at PwC Russia is led by the CR steering group. The group,     In 2004 we formed our Charity Committee,
led by a partner, includes four leaders responsible for
                                                                 which currently has 13 members. Our charity
developing a corporate responsibility strategy in alignment
with the firm’s overall business strategy as well as for
                                                                 focus remains on child welfare, education
overseeing its implementation. Each office in Russia has         and culture.
a CR champion to help oversee project implementation             In 2010 we completed 27 projects, managed
locally. On a quarterly basis, the CR leader reports to the
Operations Committee, made up of senior partners.
                                                                 by three subcommittees. Our community work
                                                                 is carried out along the following three lines:
The CR leader is on the regional CEE and Central Cluster         funding, professional assistance and volunteering.
leadership teams.

In 2004 we formed our Charity Committee, which currently
has 13 members. Our charity focus remains on child welfare,
education and culture. In 2010 we completed 27 projects,
managed by three subcommittees. Our community work is
carried out along the following three lines: funding,
professional assistance and volunteering.


     Please see the Community section for more details.




10       Corporate Responsibility Report
Our report

  This is our second report and we have tried to make it more concise and
  interesting to read.

  In 2010 we initiated a rebranding campaign (see the Marketplace section),
  and we’re hoping that the reader will feel the difference our new style
  makes in this report. We wanted the report to make for easy reading,
  to not be overloaded with information and to feature real-live stories.

  The report covers the period from 1 July 2009 to 31 December 2010.
  We’ve chosen this reporting period in order to facilitate our transition
  to calendar-year reporting in the future. The terms ‘reporting period’,
  ‘period covered by the report’ and the like used in the text mean
  the 18 months from 1 July 2009 to 31 December 2010.

  We’ve chosen to use the Global Reporting Initiative G3 Guidelines
  (GRI G3) in order to present a balanced picture of our activities.
  We believe that our report is at C level under the GRI reporting system.




                                                                              Corporate Responsibility Report   11
Community




Our objectives
This section outlines our engagement programme with two main stakeholder
groups: local communities in Moscow, St Petersburg, Ekaterinburg and Kazan;
and universities. Because human capital is PwC’s most valuable asset, we gear
our programme towards developing intellectual potential, enhancing professional
expertise, active participation in growing tomorrow’s responsible leaders and
engaging our employees in our community programme.



     NGOs that PwC supports are provided in Attachment 3.




12       Corporate Responsibility Report
Local communities
Last year we set ourselves the following major goals:
• effectively collaborating with the community at large,
  with a focus on the educational element (using PwC’s
  intellectual potential);
• actively involving PwC employees in volunteer work;
• identifying key projects and making concerted efforts
  to ensure their successful implementation.

We’ve identified projects that are in line with our strategy and    A number of volunteers have taken the initiative to take
help change life for the better through our volunteers’ direct      charge of certain projects. For example, all our orphanages
involvement. We focus on the educational element in virtually       have volunteers-in-charge who visit the children together
all projects, as this is where we feel we can make the biggest      with their colleagues. Our volunteers themselves organise
impact. During the reporting period we carried out 27 charity       visits for kids from children’s homes to the Moscow
projects. We’ll continue to work at selecting those projects
                                                                    International House of Music, the theatre or the bowling alley.
have a real positive impact on our stakeholders.
To increase volunteer involvement, in early 2010 we adopted
a policy based on CR best practices that provides staff with       Anna Sotskova, PwC volunteer:
one working day per year to do charity work, be it organised       “Natalya Sats Theatre is one of my favourite childhood
by our Charity Committee or chosen individually. In our            memories, a place where we were once taken as children
estimate, in the reporting period over 200 volunteers gave         and where we’d like to take our own kids. The children
approximately 2,900 hours to various charity activities.           really liked the theatre itself, especially the room with birds,
                                                                   the music box and the clowns. The kids were of different
                                                                   minds about the play. Some really liked it, some were tired,
                                                                   and some of the older ones were a bit too old for it – but
                                                                   everyone enjoyed getting out and getting to know each
                                                                                        other. There was ice cream waiting for
                                                                                        the children back on the bus, making
                                                                                        the ride home that much sweeter.
                                                                                        It won’t be the last time we meet up.
                                                                                        We’re looking forward to seeing the
                                                                                        kids again!”




                                     We share our main capital, our knowledge and experience.
                                     Together with Junior Achievement Russia, PwC volunteers
                                     helped deliver classes on economics at Moscow schools and
                                     held an Open Day featuring master classes and consultations
                                     on various business projects at PwC’s Moscow office. They also
                                     acted as judges of projects from the Enterprise without Borders
                                     innovation camp and in the Be Entrepreneurial contest as part
                                     of Global Entrepreneurship Week. PwC employees teach
                                     English to children who have graduated from orphanages,
                                     helping them to prepare for further studies.




                                                                                                 Corporate Responsibility Report      13
In August 2010 a PwC team participated in the Kaluga-                 Our cooperation with NGOs has taken on a new flavour.
Moscow Downside Up Charity Bike Ride for the first time               For the first time in our history, we celebrated February’s
and became one of its prize-winners. PwC’s football                   International Corporate Philanthropy Day by running job
team participated in three Downside Up Charity Football               motivation training for NGOs. This opened up a series
tournaments in the reporting period. These are just some of
                                                                      of training sessions on topics selected by NGO
the examples of our long-term cooperation with Downside Up,
                                                                      representatives.
which began in 2008 with our Mt Elbrus climb that raised
USD 100,000 for the foundation.
                                                                     Elena Gorbylyova, senior specialist in business
In response to a desire expressed by our employees to donate         development at the Leo Tolstoy Estate Museum
funds to help sick children, we developed a donation                 at Yasnaya Polyana, says:
distribution policy. In the past year and a half, we raised
over RUB 500 thousand for this cause.                                “We were happy to take part in the time management
                                                                     training. I would like to note the event’s excellent
                                                                     organisation and the great job done by the trainers (this was
                                                                     my second training with them). I believe that this subject is
                                                                     extremely important, not only if you manage people, but
                                                                     more importantly, to help you achieve an internal balance
                                                                     in the age-old choice between life and work.
                                                                                            Thank you very much for organising
                                                                                            the training! I hope your company
                                                                                            will continue to deliver these
                                                                                            trainings for our grateful audience.”




                            One of the Downside Up bike ride participants was Partner Chris Barrett,
                            who knows first-hand what it’s like having a child with Down’s.
                            Today Chris’s daughter Sonya is a shop assistant in a local supermarket,
                            but 30 years ago Chris didn’t even imagine that Sonya would ever walk
                            on her own.
                            “Sonya has Down’s syndrome. When she was small, we received huge support
                            from charity institutions in England, and Sonya could even study in a normal
                            school with healthy children. People in my country have become more open, their
                            attitude to such children has changed, and now the same is happening in Russia.
                            And I just feel happy to be able to help somebody with it,” says Chris.




14    Corporate Responsibility Report
Lyudmila Khomutova, teacher at the Udelnya Boarding School,
                                                        said:

We organised drawing lessons called Every Child         “A huge thank you to Marina Dreznina, who developed and runs the
is an Artist for people who work in rehabilitation      Every Child is an Artist programme. Apart from the underlying theory,
centres for children with special needs. The theory     at each lesson we studied plans for running individual and classroom
and practical tips they take away help the teachers     lessons and projects. I greatly enjoyed getting to know other
foster their kids’ artistic talents.                    participants and working together. I am sure that the knowledge and
                                                        skills that I got from the training will help me in my future work with
                                                        orphaned children.
                                                                                          A special thank you to the training
                                                                                          organisers for the comfortable
                                                                                          working conditions, friendly
                                                                                          atmosphere, attention, and
                                                                                          understanding of the problems
                                                                                          facing employees of specialised
                                                                                          rehabilitation institutions.”




                                                         We’re looking for new ways to engage our clients, business partners
                                                         and alumni (former employees) in charity projects. For several years
                                                         now we’ve supported the Spivakov International Charity Foundation,
                                                         and for three years we’ve sponsored concerts by the foundation’s
                                                         scholarship holders, held in the Kremlin Armoury, at which we
                                                         award scholarships to the young talents. This year the initiative
                                                         was supported by ZHASO Insurance Company, and we awarded
                                                         scholarships to nine young musicians.




We’ve also taken another step in providing professional          We’ve significantly improved internal communications by
assistance to help NGOs work more effectively by developing      creating a special section on PwC Russia’s intranet portal
an NGO support policy. This policy states that we apply the      where employees can find our charity policies, donation
same quality and risk management standards to NGOs as to         distribution reports and information about foundations
all of our other clients.                                        supported by PwC, and learn more about various projects
                                                                 and how to join them. PwC employees receive announcements
Finally, we continued to hold meetings between NGOs and
                                                                 of upcoming events by email, through which they can confirm
our volunteers, and together with our long-standing CR
                                                                 their attendance immediately. Calendars with project
partner Charity Aid Foundation, arranged Charity Club
                                                                 information for the next three months hang on each floor
meetings. The Charity Club meetings held in the reporting
                                                                 of the PwC office. There is a new, regularly updated display
period addressed issues like assessing charity programme
                                                                 case in the PwC Club with information on community
and project efficiency, corporate philanthropy, government
                                                                 activities and our environment programme. Our corporate
relations, supporting state-funded institutions and CR
                                                                 TV features updates on PwC’s charity and environmental
management. For volunteers, we held three meetings with
                                                                 campaigns.
representatives from the not-for-profit organisations Podari
Zhizn, Liniya Zhizni and Big Brothers Big Sisters.
                                                                    We continue to monitor our people’s opinion about our
                                                                    programmes. The 2010 Global People Survey shows that
                                                                    84% of Russian respondents are satisfied with PwC’s
                                                                    corporate responsibility activities. Over the last year and
                                                                    a half, PwC Russia’s offices donated over RUB 10.5 million
                                                                    in cash and in gifts-in-kind. Our people donated almost
                                                                    RUB 4.5 million of their own money to charitable projects
                                                                    in the areas of child welfare, culture and education.

                                                                                                Corporate Responsibility Report   15
Universities
PwC continued to expand its cooperation with Russian            • We’ve opened a PwC classroom at MSU to be used for
universities through active involvement in educating              regular classes and extracurricular activities run by PwC
tomorrow’s responsible leaders.                                   professionals. At the Ministry of Education’s request,
                                                                  we carried out an expert assessment of the Finance
In addition to our traditional means of cooperation, we’ve
                                                                  University’s master’s degree programmes, a testimony
developed new formats aimed at consolidating successes
                                                                  to our good reputation in the educational community.
and attaining better results. In particular:
                                                                  Our stakeholders recognise PwC’s engagement in the
• Our leading specialists from different departments put          educational process, awarding the firm with certificates
  together and delivered lectures for master’s and bachelor’s     of merit on behalf of Moscow State University, the Finance
  programmes at Moscow State Institute of International           University and Moscow State Institute of International
  Relations, the Higher School of Economics (HSE),                Relations.
  Moscow State University (MSU), and the Finance
                                                                We’ve continued our project to provide university students
  University. Our employees gave about 1,550 hours
                                                                with the opportunity to study for an ACCA qualification
  of lectures.
                                                                upon graduating from Moscow, Ekaterinburg, St Petersburg
• We engaged with student organisations, such as HSE’s          and Kazan universities. Over the past year and a half
  Business Club and the Students League of Plekhanov            we signed documents on cooperation in the area of
  University. Together with the HSE Business Club we            qualification exam preparation, including an agreement
  delivered two master classes. We also held Economics          with Gorky Ural State University and letters of intent
  Department Day at MSU and organised workshops and             signed with the Finance University and Kazan (Privolzhsky)
  round tables with students as part of PwC Week.               Federal University.




       The Rectors Club continues to be an effective platform
       for maintaining dialogue between universities and
       employers. The club’s five meetings in the period were
       attended by representatives of seven leading Moscow
       and St Petersburg universities.




16    Corporate Responsibility Report
We’re also expanding the geography of our cooperation as          of the Graduate School of Management at St Petersburg State
part of our regional expansion programme. In the reporting        University. In 2009 we helped support the creation of the
period we formed strong relationships and outlined                Graduate School of Management’s Centre for Corporate Social
cooperation plans with a number of regional universities:         Responsibility in order to conduct more extensive research
Kuban University, Kuban Agrarian University, Novosibirsk          into the topic and help prepare specialists in the field. PwC
University, Novosibirsk University of Economics and               also actively supports the work of the New Economic School.
Management, North Ossetia State University and
                                                                  The Rectors Club continues to be an effective platform for
Kazan (Privolzhsky) Federal University.
                                                                  maintaining dialogue between universities and employers.
Our cooperation with business schools has also continued.         The club’s five meetings in the period were attended by
In 2010 PwC global network President Dennis M. Nally spoke        representatives of seven leading Moscow and St Petersburg
at a meeting of the Skolkovo International Advisory Board,        universities.
and also participated in a meeting of the Advisory Board




Challenges and plans for the future
Recognising the importance of our active involvement in educating and developing
tomorrow’s leaders, the firm will continue building mutually beneficial, long-term
relationships with the country’s universities and aligning these relationships with
our business strategy.
Our next objective is to increase PwC’s volunteer involvement, which should
strengthen the culture of corporate responsibility not only at PwC, but in the
communities in which our employees live and work. We want to focus our efforts on
several major projects so that we can achieve greater results. We’re seeking to better
use our intellectual resources, engage volunteers in the Charity Committee’s work
and implement a single programme in all the regions where we operate, while still
taking into consideration local specifics.


                                                                                               Corporate Responsibility Report   17
Environment




Our objectives
Reducing our environmental impact continues to be one of our primary goals.
PwC’s Moscow office has been running its Small Steps campaign for several years,
and now our regional offices are taking part as well (please see the Small Steps
section, as well as information about other initiatives in our 2009 Corporate
Responsibility Report).




18    Corporate Responsibility Report
Environmental standards in the new office
At the end of 2009, PwC’s Moscow office moved to a new           • The building’s WCs are stocked with 100% recycled paper
building in the White Square Office Centre. This was the final     products.
stage of a major operation that began with the PwC project
                                                                 • A smart lighting system allows us to reduce our electricity
team taking part in the design and construction of the new
                                                                   use. In addition to having a positive environmental effect,
building. One of our top priorities was making sure that the
                                                                   it has also reduced our average monthly electricity bills
new office complied with the world’s most advanced
                                                                   (by sq m) by 47% thanks to the following:
environmental standards.
                                                                   – Traditional light bulbs account for only 10% of all light
PwC took its cue from the world’s best examples of modern,           bulbs in the office. The luminescent bulbs in the office
environmentally friendly business centres:                           are of the latest generation of energy-saving bulbs.
• The office’s floors are made of recycled materials.              – In some parts of the office, we use automated
                                                                     illumination control systems that include photo relays,
• Our office furniture is made of PVC-free
                                                                     motion sensors and presence detectors.
  (polyvinylchloride-free) materials.
                                                                   – The office is also equipped with seasonal lighting
• We do not use chemicals containing chlorine or
                                                                     (the lights automatically go off at a pre-set time,
  chloroorganic compounds for office cleaning.
                                                                     but can be turned on manually).
• We reduced plastic cup use by 90% by replacing them
  with paper ones made from recycled materials.




        In 2010, our office won an award for
        implementing innovative technologies, including
        those meant to protect the environment. About
        80 offices in Moscow, St Petersburg, Kyiv
        and Samara participated in the competition.




                                                                                               Corporate Responsibility Report   19
• Implementing a pass-card printing system has
Our savings                                                              reduced paper consumption by about 12%.
                                                                       • The volume of our paper purchases went down
We use large volumes of paper, but we have considerably
                                                                         by 12.72% as compared to the monthly
reduced our consumption in recent years thanks to the                    average in the prior reporting period (FY09).
Small Steps campaign. PwC has started sending documents
                                                                       • We saved around 2,278 trees by recycling
electronically and introduced double-sided printing. The new
office also has a controlled printing system. This means that            132,934 tonnes of paper.
when an employee sends a printing request to a network                 • Our average monthly electricity consumption
printer, they need to swipe their security pass card before              was reduced by 7.87%.
the job will print. If the job has not been printed within a
certain amount of time, the print request is automatically
cancelled. This simple step has not only allowed the office to
prevent large numbers of unclaimed documents from piling up
                                                                  Unfortunately, plastic recycling at PwC was discontinued due
near the printers and being sent straight to recycling, but has
                                                                  to the loss of the vendor. Currently, together with the landlord
also provided for additional document security. We’ve set
                                                                  and other major tenants of the business centre, we’re looking
another ambitious goal for ourselves: 100% recycling of all
                                                                  for a reliable vendor to set up separate collection of packing
paper purchased by PwC Russia offices. In the St Petersburg
                                                                  materials and plastic. We’re actively exchanging ideas
office, paper is collected for confidential shredding and then
                                                                  and contacts and are looking for environmentally friendly
sent for recycling. In Kazan, the firm is in negotiations with
                                                                  solutions in cooperation with more than 30 other
companies who collect paper for recycling.
                                                                  companies.
The Moscow office has special recycling bins for paper
                                                                  The firm continues to measure the CO2 emissions of all its
collection and further utilisation, with separate boxes
                                                                  offices in Russia. A single methodology is being developed
provided for confidential and publicly-available documents.
                                                                  at the CEE regional level that would allow the entire region’s
Lastly, we continue to pursue a policy of on-line subscription    overall emissions to be measured, and PwC Russia is taking
instead of distributing printed publications, where possible.     an active part in discussions.




The Green Team
PwC employees play an active role
in the firm’s environmental initiatives
and are willing to go above and beyond
for environmental protection.

The Green Team has outlined several
directions to pursue, including
delivering lectures on environmental
issues for students and schoolchildren
as part of PwC’s educational
programmes, as well as providing
informational support for green
initiatives in the office.



                              The Green Team was
                              established in 2010 and has
                              had its first meeting to discuss
                              areas of further activity.




20     Corporate Responsibility Report
We also carried out more detailed reviews
                                                                          of contacts with 42 major suppliers
Suppliers                                                                 (with contracts per supplier worth more than
                                                                          RUB 2.5 million per year). We have reviewed
The procurement policy, meant to streamline all significant               or are currently reviewing 18 contracts
purchases through the firm’s procurement team, is being                   (42%), and this process will continue.
reviewed for compliance with Russian legislation and internal
PwC procedures. Such a review was carried out twice in the
last period, in August 2009 and in June 2010.
When we request quotes from suppliers and service providers,        We’ve initiated the process of reviewing contracts with all
we also ask the biggest bidders about their corporate               existing suppliers with whom we’ve signed framework
responsibility/environmental protection programmes.
                                                                    agreements. In the last 18 months, we received documents
PwC works with 21 suppliers with whom contracts have been           of incorporation from counterparties for 435 out of
signed for RUB 10 million or more per year. We have signed          553 contracts (79%), as compared to 23% during
appendices regarding corporate responsibility with eight of them
                                                                    the previous period.
and are negotiating signing such appendices with others.




Use of public
transport
PwC recommends using express
trains to travel to and from the airport.
A reminder of this pops up each time
a car booking is made, and train
timetables are available on our internal
website. During summer of 2010, PwC
organised bicycle and scooter parking
in the building’s garage.




                      Challenges and plans for the future
                      Some of our specific environmental goals have been described above (e.g., 100% recycling of all paper,
                      selection of a reliable vendor for plastic collection and recycling, separate waste collection). Another
                      goal is to have the amount of paper waste sent for recycling (directly or after shredding) match the
                      amount of paper purchased as closely as possible. We’ll continue to develop a single methodology
                      for measuring CO2 emission. We also aim to bolster the Green Team’s activities and get more people
                      involved. As yet, we have been unable to make regular visits to orphanages to talk to the children
                      about environment protection, but these trips are still very much on our agenda.



                                                                                                 Corporate Responsibility Report   21
People




Our objectives
The main premise of this part of the report remains unchanged: at PwC Russia,
our people are our most valuable asset. The corporate responsibility mindset as far
as people are concerned is about considering the impact of management decisions
on employee morale and motivation, treating all people with respect in a fair
and transparent way, promoting diversity, creating a safe, cutting-edge working
environment and, finally, developing the skills and competences required from
responsible leaders.




22    Corporate Responsibility Report
Learning and development
It’s our responsibility to both our clients and our people         A survey of university graduates who joined PwC in August 2010
to train and develop PwC employees so that they can realise        shows that learning and development options provided by an
their full potential and provide excellent service.                employer tend to be a deciding factor in choosing a future job.



                          Why did you choose PwC? (August 2010)

                                                              Random choice

                                     More opportunities to learn and develop

                                      Reviwed the rating – PwC ranks higher
                                               than other firms I considered

                                                         I like the new office

                                                    More high-profile clients

                                                    Outbound secondments

                                                    I liked the people better
                                                                                 0      5        10        15        20         25




        Highlights of the past 18 months:
        • We built up a team of 98 tutors from among              • According to ACCA, our training pro-
          our most experienced and high-performing                  grammes for ACCA qualification are
          professionals.                                            regarded as the most successful in Russia:
                                                                    we achieved a pass rate of 64% during
        • In 2010, our internal training programmes were
                                                                    the most recent examination period.
          accredited by the Russian Audit Chamber’s Insti-
          tute of Continuing Professional Education.
                                                                • In 2010, 25 people joined a new
        • In 2010, over 850 employees were studying               training programme developed by the
          for an ACCA qualification. After the 2010 summer        Institute of Chartered Accountants
          examination session, 45 employees became new            in England and Wales for the Certificate
          affiliates or licence holders, which is a record-high   in Finance, Accounting and Business.
          pass rate. In 2010, a total of 77 employees             Some 80% of the students passed
          obtained an ACCA qualification.                         their first exams under this programme
                                                                  successfully.




PwC Russia implements innovative learning techniques               Tax Academy and Business Consulting University –
and maintains its status as a learning management expert.          PwC offers its employees training programmes aimed
We make extensive use of interactive distance learning             at developing their management and leadership potential.
(e-learning), which allows us to easily keep learning
                                                                   All employees that received a promotion in 2010 were
materials up to date and save time on training activities.
                                                                   embraced by our milestone programmes. For these
The proportion of formal classroom training to e-learning
                                                                   programmes, experienced PwC partners and external experts
is 5:1.
                                                                   act as tutors, sharing their knowledge of best practices in
Apart from the internal training programmes across                 international and Russian business, as well as their own
the three lines of service – Assurance Sunny Academy,              personal experiences.




                                                                                                  Corporate Responsibility Report    23
Leadership programmes
PwC applies innovative leadership development                      On the CEE regional level we have programmes targeted
methodologies. One of the most effective technologies is           at developing the leadership potential of high-performing
the programme of personal coaching and development                 managers. In the reporting period, 20 employees from Russia
aimed at improving performance and increasing people’s             joined the Apollo and Leadership Challenge programmes.
potential. Coaching is an integral part of team management.        Genesis Park also continues to bear fruit. We described these
We organise special training programmes to improve                 programmes at length in our previous report.
the coaching culture and carry out annual assessments
of coaches’ performance.




       Nadezhda Merkusheva, auditor, Genesis Park participant in 2010:
       “Genesis Park is not just another PwC leadership programme;
       it’s a three-step process for developing PwC’s future leaders. The process
       includes 1) raising self-awareness and developing authentic leadership
       qualities and skills, 2) building a network of global contacts and
       developing a strategic mindset, and 3) understanding that PwC is full
       of opportunities and a place where you can truly realise your potential!”




24    Corporate Responsibility Report
Global Mobility
Creating opportunities for people to gain experience
working in other offices, regions and territories is an
important area of PwC Russia’s people development
strategy. Staff mobility is one of the firm’s success factors.
Over the last period, 15 people relocated to work in
other PwC offices in Russia, while 49 went on outbound
secondments.




                                                                 Well-being
                                                                 You can find detailed information about
                                                                 the firm’s efforts in this area in the
                                                                 relevant section of our 2009 CR Report.
                                                                 In the reporting period, the firm
                                                                 continued to focus on encouraging
                                                                 the healthy, balanced lifestyle of its
                                                                 employees. The move to the new office
                                                                 brought new efforts to improve staff
                                                                 well-being. Significant office space
                                                                 is allocated to leisure, with a special
                                                                 Wellness Area equipped with massage
                                                                 chairs, an office for a GP and specialist
                                                                 doctors, as well as a shower room,
                                                                 a relaxation room and space for
                                                                 yoga classes.




                                                                               Corporate Responsibility Report   25
Communication
A robust feedback cycle is critical to being a responsible        One of the main areas for improvement based on the
employer. We’re continually analysing and improving our           2009 GPS results was the development of clear, honest and
communication channels.                                           transparent communications at all levels. We’ve created new
                                                                  communications forums, including open meetings between
The most important and comprehensive of these is the Global
                                                                  partners and staff to discuss topical issues like the firm’s
People Survey (GPS). The response rate for the 2010 GPS in
                                                                  strategy and its implementation, priority projects, career
PwC Russia was 83%, which is higher than in 2009, when we
                                                                  development and the reward system.
had a response rate of 62%. The People Engagement Index –
a combination of perceptions including satisfaction,              Our whole system of internal communications has become
commitment, pride, loyalty, a sense of personal responsibility,   more dynamic. With the help of our internal TV screens we
and willingness to be an advocate for the organisation –          deliver information to employees ‘live’ via interviews with
was seven percent lower than the 2009 level, but higher than      staff and prompt posting of the latest news.
the PwC CEE regional result by five percent. Undoubtedly,
this index was influenced both by the economic climate
in general and by the fact that the employee response rate          Based on the 2010 GPS results, we’ve identified three
rose by a quarter against the prior year. However, the firm’s       priority areas for improvement. These are:
management is not inclined to simply write this off to the          • developing a coaching culture;
economic downturn and sees improving the People                     • promotion and reward of high performance;
Engagement Index as one of its aims.
                                                                    • developing leadership skills at all levels of our
                                                                      organisation.




Ethics
PwC Russia prides itself on its reputation for doing business
with integrity. Our ethics policy and Code of Conduct help
us strengthen our clients’ and our people’s trust in us.
In late 2010, we organised an Ethics Week that addressed,
among other things, building effective and respectful
relationships in teams. During Ethics Week, our in-house TV
featured six interviews with the firm’s employees on issues
related to team work and coaching. The week ended with an
open meeting at which PwC Russia’s Ethics leader answered
questions on ethics and business conduct.
We engage staff who were nominated as Ethics Champions
in ethics and business conduct-related workshops,
communications and consultations. Our Ethics Champions
held 16 mandatory ethics and business conduct workshops
targeting employees promoted to senior consultant and
manager positions.
In the 2010 GPS, 79% of employees agreed with the
statement “People in my group display and actively promote
high standards of business conduct in accordance with
the PwC Code of Conduct”. This is higher than last year.
We have a whistleblower system in place and employees
can report potential ethics violations by contacting
an Ethics Champion, calling the internal Ethics Helpline
or using an anonymous email address. Complaints are
reviewed and appropriate actions are taken in response.
The Ethics Committee leader reports to the Operations
Committee on a quarterly basis.

26     Corporate Responsibility Report
Diversity
PwC Russia’s commitment to achieving diversity is reflected
in our recruitment policy and learning and development
curriculum.
We continue to recruit from a wide range of faculties and
universities. For example, in 2010 we recruited graduates for
our Assurance line of service from 74 Russian universities and
some overseas institutes. The share of graduates from
regional universities is growing; in 2010 half of the young
auditors beginning their career in PwC Russia’s Assurance
practice were graduates from Moscow universities, while the
other half came from regional ones.
We regard team work and cultural exchanges between people
from different backgrounds as one of our priorities.
Graduates’ training and professional integration is one of our
priorities for the next 2-3 years.
We continue to focus on helping women progress to
leadership positions. In 2010, two female partners were
elected to the PwC Russia Operations Committee, and one
female partner was elected to the regional CEE Operations
Committee.

                                                                          As of 31 December 2010, we had
                                                                          150 expatriate staff members
                                                                          from 36 different countries
                                                                          (6.79% of our workforce).




                                  Challenges and plans for the future
                                  The firm’s strategic focus as far as its people are concerned is turning PwC into
                                  a distinctive firm where each and every one of its staff can say with confidence,
                                  “My relationship with PwC helps create the value I’m looking for.”
                                  In 2010 we set ourselves a number of tasks: to improve our reward system, internal
                                  communications, coaching culture and professional development, and to achieve
                                  greater consistency in management actions.
                                  We are changing for the better in a process of continuous improvement – this is the
                                  way of life at PwC.


                                                       Apart from Russian partners, PwC Russia has
                                                       partners from 10 countries: Australia, Canada,
                                                       France, Germany, Ireland, New Zealand, South Africa,
                                                       Switzerland, the United Kingdom and the USA.




                                                                                                Corporate Responsibility Report   27
Marketplace




Our objectives
In this area, our goals remained the same: to build and sustain long-term
relationships in order to maintain our leading position in the marketplace.
We deliver high-quality services, develop innovative solutions and support the
development of sustainable business practices that help our clients to grow and
strengthen their business. PwC contributes to shaping a competitive economy by
facilitating the greater transparency and effectiveness of companies in Russia.
In 2009, PwC celebrated 20 years in Russia. We marked this anniversary with
an official reception for clients and by occupying the top position in ratings of audit
and consulting companies. In the spring of 2010, we received the results of the Big
Four brand health survey, conducted by an independent agency, which confirmed
that our brand was the most highly recognisable and differentiated in Russia.
.




28     Corporate Responsibility Report
Shaping the public agenda
We retained our leadership position, though the last 18           we identified several areas of work: publishing a Russian
months were difficult for Russian business. The economic          edition of our Technology Forecast, conducting research
slowdown forced companies to adjust their demand for              and issuing reports, taking part in forums on innovation
professional services. Where the total demand for our services    and providing advice on innovative development.
did not change significantly, we experienced price pressure.
                                                                  At the request of the Russian Presidential Administration
However, the market pressure didn’t affect our approach to
                                                                  we published a report on tax, financial and legal incentives
the quality of our services or make us less attentive to client
                                                                  for innovation in 11 countries.
needs. To a certain extent, it prompted us to look for new
solutions and services. As such, why our work during the past     Together with the Russian Venture Corporation (RVC),
18 months was marked by innovations, which corresponds            ROSNANO and the Russian New Economic School we
with general economic trends in the country.                      conducted a survey on the major barriers to innovation
                                                                  and modernisation in Russia. PwC works with Russia’s
The Russian government has set a new strategic direction
                                                                  regions to develop innovation clusters. The firm has become
in the country’s development: modernisation and putting
                                                                  the coordinator of the Expert Group for Reforming Russian
the economy on the road to innovation. In July 2009,
                                                                  Legislation to Promote Innovation for the State Duma’s
in response to this initiative Dennis M. Nally, President
                                                                  Committee for Economy and Entrepreneurship. In November
of PwC’s global network, announced the opening of a PwC
                                                                  2010, PwC signed a Memorandum of Cooperation with RVC
Centre for Technology and Innovation (CTI) in Russia
                                                                  on training programmes for start-ups (fast-growing new
during a meeting between Russian President Dmitry
                                                                  companies, primarily in high-tech sectors). We’re advisors
Medvedev and US President Barack Obama about business
                                                                  on the Skolkovo project and have engaged top international
issues. The PwC Centre for Technology and Innovation
                                                                  experts for it.
in Silicon Valley has been around for over 20 years and is
known for providing expert knowledge on new technologies.         In our estimates, our total investments in developing Russia’s
We held a number of meetings with stakeholders to ensure          innovation economy amounted to about 1 million US dollars
that our Russian CTI becomes an integral part of Russia’s         in the reporting period.
innovation programme. As a result of these meetings,




                                                                                                Corporate Responsibility Report   29
Working with regulators
In its dialogue with regulators, PwC uses different channels
of communication, from participating in their briefings,
surveys, delegations and projects to providing advice and
sharing global best practices. We’re active members of the
committees and commissions of the Council for Audit
Activities at the Russian Finance Ministry and the Russian
Audit Chamber.
One of the innovative plans of the past year was to create
an International Financial Centre (IFC) in Moscow. PwC
joined this activity by developing a road map and engaging
our professionals in the Working Group at the Russian
Federation Presidential Council on Developing Russia’s
Financial Markets.


     Dennis M. Nally has joined the International Advisory
     Council on Establishing and Developing an International
     Financial Centre in the Russian Federation.




Thought Leadership
In June 2010, in cooperation with the St Petersburg            Especially for the forum, PwC developed the Deep Dive
International Economic Forum, we implemented an                website (deepdive.forumspb.com), a unique intellectual
innovative marketing project.                                  product providing delegates with real-time access to
                                                               analytical information. PwC also set up knowledge cafes for
                                                               forum participants where they could find materials on the key
                                                               forum topics.
                                                               PwC continues to issue Thought Leadership reports to
                                                               sustain knowledge sharing with the business community and
                                                               monitor industry trends. During the past period, we issued
                                                               about 130 such publications.


                                                                 PwC also supported an international conference
                                                                 celebrating the 20th anniversary of the Federal Tax Service
                                                                 in November 2010. In the last 18 months, PwC has organised
                                                                 and participated in more than 500 events.




30       Corporate Responsibility Report
Dialogue with clients
During interviews that we conducted in parallel with                In order to have an objective picture of our strengths and
our brand research, our clients (CEOs and CFOs of major             weaknesses with regard to our client service, five years ago
companies) told us how useful they find seminars
                                                                    we introduced an annual client feedback programme.
and conferences organised by PwC. The same survey
showed that we need to talk to our clients in simple and            In 2010, we sent 161 feedback requests to our key
comprehensible language, and at the same time understand            customers; of the 58 responses received, 86% gave PwC
their expectations and explain how we can achieve their             a positive appraisal. According to our Client Feedback Survey,
goals together with them.                                           in 2009 PwC Russia’s loyalty score was 8.3 out of 10,
PwC’s rebranding, launched in October 2010, was to                  which, as in the previous period, falls in the ‘good’ range.
a large extent brought about by client feedback. We changed
not only the visual component of our brand; now our              This information has helped us to proactively respond
communication with clients is becoming simpler and clearer,      to the market, and we did not reduce the intensity of our
we’re trying to listen more, and we’re more than ever focused    communication with clients in this difficult economic period.
on achieving the results our clients expect. We’re doing a lot   We focused our efforts on areas of key importance for the
within the firm in order to comply with the new brand            country and business, coming forward with innovative ideas
standards.                                                       and solutions.




                                          Z.F. Garaev, First Deputy        O.M. Konovalova, Deputy Director of the
                                          Board Chairman,                  Department, head of control division of
                                          AK BARS Bank:                    NOMOS Bank:
                                          “Workshops devoted to IFRS       “I highly appreciate and respect the work done by you
                                          theory and practice raised       and your colleagues. I always go through your
                                          our staff’s qualification        materials with interest (including the marketing
                                          to a qualitatively new level     materials you presented at the forum). Thanks to
                                          and the new knowledge was        your efforts we have a chance not only to network,
                                          implemented in our work.”        but to discuss the hot topics raised in research materials
                                                                           and publications issued by banking sector experts.”




                                                                                                  Corporate Responsibility Report    31
Professional and
business associations
You can find detailed information about
this in the Marketplace section of our
2009 Corporate Responsibility Report.

Following our five-year collaboration
with the Independent Directors
Association, in 2010 PwC has started
to develop its own programme for
independent directors. Economic
recovery after the recession required
businesses to become more transparent
and comply with stricter corporate
governance standards.

Regardless of the downturn, we were         Forum we continued to support the          participants, and the final conference
no less active in promoting corporate       corporate philanthropy rating. Last year   brought together over 150 people.
responsibility. In collaboration with the   the rating attracted more companies,
newspaper Vedomosti and the Donors          we held a preliminary training for
                                                                                         Business associations of which PwC is
                                                                                         a member can be found in Attachment 4.




Dialogue with alumni
We maintain an active dialogue with
former PwC staff and the mass media.
We launched the PwC Connect website,
a social network developed to provide
former and current staff with a simple
and convenient way of communicating
about work and other topics of interest.




32     Corporate Responsibility Report
Dialogue with mass media
    During the past 18 months, we held 15 press events, and our share
    of voice among the Big Four was more than one third. PwC attracted
    329 positive publications, making us the highest rated of the Big Four.




Challenges and plans for the future
In making plans for the next period, we will continue to focus on building the new innovation
economy, developing the financial market and creating an International Financial Centre
in Moscow. We’ll continue to engage international specialists to help solve important issues
in Russia. Without lowering the quality of services for our major clients, we plan to develop
an approach for working with medium-size private companies to provide them with access
to top-quality services. We’ll continue to contribute to regional development and plan to open
offices in two more Russian cities.


                                                                                                 Corporate Responsibility Report   33
Attachment 1

                            PwC Russia’s ratings and awards
                            received in 2010
                            • Leader in audit and consulting services in Russia by revenue, Expert RA rating agency,
                              March 2010
                            • PwC Russia’s legal practice, PricewaterhouseCoopers Legal CIS B.V., was recommended
                              by the Legal 500 rating of leading Russian law firms
                            • Russian Transfer Pricing Firm of the Year 2010 and Transfer Pricing Firm of the Year in Europe
                              2010, International Tax Review magazine, May 2010
                            • Best tax practice in Russia, World Finance magazine, 2009
                            • Russian lead financial advisor of 2009, Acquisitions Monthly magazine, 2009
                            • No. 1 in the IPO Auditor rating in terms of number and volume of deals for 2009, the ReDeal
                              analytical group within the offerings.ru project
                            • The Femida Award in the category Audit for high standards of legal practice
                              in the Russian Federation, professional independence and its contribution to the development
                              of the business community and rule of law
                            • Russian Lead Insurance Auditor and Advisor for the 2009 All-Russia Gold Salamander
                              insurance award
                            • The largest employer of young professionals 2009 in the first Business and Higher Education
                              Partnership rating by the Russian Rectors’ Union (RRU)
                            • No. 1 in the rating TOP 50 Dream Employers for young professionals among audit and
                              consultancy firms based on 2010 results, published by the newspaper Aktsiya




34   Corporate Responsibility Report
Attachment 2
Key stakeholders
Stakeholder                          Areas for cooperation                      Channels for cooperation
People (current, former and potential • Job and retention guarantees            •   Global People Survey
employees)                            • Career growth and prospects             •   Internal corporate intranet
                                      • Ethics issues                           •   Focus groups
                                                                                •   Coaching
                                                                                •   Ethics Committee
                                                                                •   Alumni Club events

Clients                              • Business practices: challenges and       •   Client feedback survey
                                       opportunities                            •   Brand health index
                                     • Satisfaction with PwC service quality    •   Senior partner review visits
                                                                                •   Regular meetings

Suppliers                            • PwC’s CR strategy and requirements for   • Workshops
                                       suppliers                                • Regular meetings
                                     • Supplier challenges
                                     • CR knowledge exchange


Government authorities and           • Legal and regulatory framework           • Regular meetings
regulators                           • New or revised legislation               • Work groups (led by PwC)
                                                                                • Participation in professional
                                                                                  organisations

Universities                         • Assistance to students in obtaining      • Rectors Club
                                       professional qualifications              • Lectures
                                     • Education of tomorrow’s responsible
                                       leaders
                                     • Opportunities for graduates
Local communities, NGOs              • Local communities’ needs                 • Charity events
                                     • Use of PwC staff’s knowledge and         • Volunteering
                                       experience to meet community needs       • Enhanced efficiency of NGOs

Business and professional            • Issues of mutual interest                • Active involvement
associations                         • Shaping the public agenda                • Lead role in working groups and
                                                                                  committees

Mass media                           • Need for relevant information            • Training for journalists on business
                                     • Importance of understanding business       hot topics
                                       issues and PwC’s position                • Press conferences on business trends




                                                                                        Corporate Responsibility Report   35
Attachment 3
NGOs that PwC supports
 Name                                    Description
 Big Brothers Big Sisters of Russia      A one-to-one mentoring programme for at-risk children

 Maria’s Children Art Center             Helping orphaned children with special needs become full members of society
                                         by supporting their social, psychological and intellectual rehabilitation through
                                         various creative activities

 Dobro Autistic Children's Aid Society   Creating and developing a system for helping people with autism in Russia

 Yuny Spartakovets                       Children's sport club
 The Circle                              Developing tolerance and cooperation in children and adults
 Diema's Dream                           Providing financial, medical and educational support for physically and
                                         mentally disabled children in Russia

 Leo Tolstoy Museum-Estate Yasnaya       Restoring the unique cultural milieu of Leo Tolstoy's life and times
 Polyana (including the town
 of Krapivna)
 The Vladimir Spivakov International     Supporting talented young musicians, artists and dancers
 Charity Foundation

 Tchaikovsky Symphony Orchestra          Supporting cultural education projects and talented children
 of Moscow
 Junior Achievement Russia               Developing and promoting JA's business and economic educational programmes
                                         for youth through partnership between the business and educational communities

 Partners in Hope - Big Change project   Supporting Russian NGOs that work with vulnerable children and their families
 Downside Up                             Supporting families and state and non-profit organisations in teaching, raising
                                         and integrating children with Down syndrome into society
 Charities Aid Foundation Russia         Working to raise donations, create favourable conditions for philanthropy's
                                         development, and provide assistance to charity organisations and their
                                         supporters

 Russian Orphan Opportunity Fund         Providing graduates of children's homes with high-quality education free of
                                         charge (both academic and life skills)
 Sofia Foundation                        Helping our neighbours and promoting society's spiritual traditions

 Podari Zhizn                            Helping children with cancer, blood diseases, and other serious illnesses

                                         Reducing the rate of child death from illnesses that could be treated with
 Liniya Zhizni
                                         modern medicine
 A Chance to Work project                Providing 18 to 28 year-olds that graduated from children's homes with basic
                                         training in non-commercial organisations as well as practice in companies that
                                         participate in the project




36    Corporate Responsibility Report
Attachment 4
Business associations of which PwC is a member
                                   Association of European Businesses (AEB)

                                   Canada Eurasia Russia Business Association (CERBA)
       BUSINESS ASSOCIATIONS




                                   American Chamber of Commerce (AmCham)

                                   Independent Directors Association (IDA)

                                   Russian Managers Association (AMR)

                                   U.S.-Russia Business Council (USRBC)

                                   Russo-British Chamber of Commerce (RBCC)

                                   Russian Union of Industrialists and Entrepreneurs (RSPP)

                                   Russian-German Chamber of Commerce (AHK)

                                   Japanese Business Club

                                   American Chamber of Commerce St Petersburg Chapter (AmCham)
  ASSOCIATIONS IN




                                   St Petersburg International Business Association (SPIBA)
     BUSINESS

     REGIONS




                                   Association of Businesses and Entrepreneurs of the Republic of Tatarstan

                                   Chamber of Commerce and Industry of the Republic of Tatarstan

                                   Leningrad Region Chamber of Commerce

                                   St Petersburg Audit Chamber

                                   Russian Private Equity and Venture Capital Association (RVCA)

                                   Russian Audit Chamber (RAC)

                                   Institute of Internal Auditors (IIA)
       PROFESSIONAL ASSOCIATIONS




                                   Association of Certified Fraud Examiners (ACFE)

                                   Association of International Pharmaceutical Manufacturers (AIPM)

                                   Association of Russian Banks (ARB)

                                   Cambridge Energy Research Associates, Inc. (CERA)

                                   International Business Leaders Forum (IBLF)

                                   Mining Advisory Council (MAC)

                                   Russian Insurance Association (All)

                                   Urban Land Institute (ULI)

                                   Guild of Actuaries




                                                                                                              Corporate Responsibility Report   37
GRI Content Index
Standard disclosures: Profile disclosures
 GRI       Description                                                     Commentary and/or cross references            Reported1   Page in
 Index                                                                                                                               report

 1. Strategy and analysis
 1.1       Statement from the most senior decision-maker of the            Letter from the Managing Partner of PwC          +        5
           organisation about the relevance of sustainability to the       Russia
           organisation and its strategy.
 1.2       Description of key impacts, risks, and opportunities.           Our CR agenda, Four main CR focus areas          ±        8
 2. Organisational profile
 2.1       Name of the organisation.                                       Glossary of terms                                +        42
 2.2       Primary brands, products, and/or services.                      PwC Russia: A few facts and figures              +        6
 2.3       Operational structure of the organization, including main       Glossary of terms                                +        42
           divisions, operating companies, subsidiaries, and joint
           ventures.
 2.4       Location of organisation's headquarters.                        Contact information                              +        44
 2.5       Number of countries where the organization operates, and        The report covers only Russia and cities in      +        43
           names of countries with either major operations or that are     Russia: Moscow, St Petersburg,
           specifically relevant to the sustainability issues covered in   Ekaterinburg and Kazan
           the report.
 2.6       Nature of ownership and legal form.                             Private, Glossary of terms                       +        43
 2.7       Markets served (including geographic breakdown, sectors         PwC Russia: A few facts and figures;             +        6, 43
           served, and types of customers/beneficiaries).                  cities in Russia: Moscow, St Petersburg,
                                                                           Ekaterinburg and Kazan
 2.8       Scale of the reporting organization.                            PwC Russia: A few facts and figures              ±        6
 2.9       Significant changes during the reporting period regarding       No significant changes in the reporting          +
           size, structure, or ownership.                                  period
 2.10      Awards received in the reporting period.                        Attachment 1                                     +        34
 3. Report parameters
 REPORT PROFILE
 3.1       Reporting period (e.g., fiscal/calendar year) for               Our report                                       +        11
           information provided.
 3.2       Date of most recent previous report (if any).                   Our previous report, covering the 2009           +
                                                                           financial year (from 1 July 2008 to 30 June
                                                                           2009), was published 31 March 2010
 3.3       Reporting cycle (annual, biennial, etc.)                        Our report                                       +        11
 3.4       Contact point for questions regarding the report or its         Contact information                              +        44
           contents.
 REPORT SCOPE AND BOUNDARY
 3.5       Process for defining report content.                            Our CR agenda, Four main CR focus areas          ±        8
 3.6       Boundary of the report (e.g., countries, divisions,             Cities in Russia: Moscow, St Petersburg,         +        6
           subsidiaries, leased facilities, joint ventures, suppliers).    Ekaterinburg and Kazan
 3.7       State any specific limitations on the scope or boundary of      Cities in Russia: Moscow, St Petersburg,         +        6
           the report.                                                     Ekaterinburg and Kazan
 3.8       Basis for reporting on joint ventures, subsidiaries, leased  The report reflects the activities of PwC           +
           facilities, outsourced operations, and other entities that   Russia
           can significantly affect comparability from period to period
           and/or between organizations.




+ Fully reported
± Partially reported
– Omitted



38       Corporate Responsibility Report
Our Future – Our Responsibility
Our Future – Our Responsibility
Our Future – Our Responsibility
Our Future – Our Responsibility
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Our Future – Our Responsibility

  • 1. www.pwc.ru Our Future – Our Responsibility PwC Russia Corporate Responsibility Report
  • 2. 2 Corporate Responsibility Report
  • 3. Content Introduction 4 A letter from Peter Gerendasi, Managing Partner of PwC Russia 5 PwC Russia: A few facts and figures 6 Corporate responsibility 7 Our CR agenda 8 Four main CR focus areas 9 Our stakeholders 10 Management and governance of CR at PwC Russia 10 Our report 11 Community 12 Our objectives 12 Local communities 13 Universities 16 Challenges and plans for the future 17 Environment 18 Our objectives 18 Environmental standards in the new office 19 Our savings 20 The Green Team 20 Suppliers 21 Use of public transport 21 Challenges and plans for the future 21 People 22 Our objectives 22 Learning and development 23 Leadership programmes 24 Global Mobility 25 Well-being 25 Communication 26 Ethics 26 Diversity 27 Challenges and plans for the future 27 Marketplace 28 Our objectives 28 Shaping the public agenda 29 Working with regulators 30 Thought Leadership 30 Dialogue with clients 31 Professional and business associations 32 Dialogue with alumni 32 Dialogue with mass media 33 Challenges and plans for the future 33 Attachment 1. PwC Russia’s ratings and awards received in 2010 34 Attachment 2. Key stakeholders 35 Attachment 3. Non-governmental organisations 36 Attachment 4. Business associations 37 GRI Content Index 38 Glossary of terms 42 Contact information 44 Corporate Responsibility Report 3
  • 4. Introduction As in previous years, the concept of corporate responsibility (CR) continues to be a vital element of the PwC 1 network’s strategy in Central and Eastern Europe. This strategy is aimed at laying a strong foundation for our sustained competitive advantage and covers the period up to 2016. It encompasses three key areas: expanding our strategic capabilities, building value through our client relationships, and bringing the One Firm concept to life across all the PwC firms in CEE. The concept of sustainable development is the basis for our corporate responsibility programme. We continue to educate our employees, clients, suppliers, NGOs, government authorities, local communities and other stakeholders about our approach to sustainable development, which we see as the philosophy that drives successful Lioudmila Mamet long-term business development. This is our second CR report, and we don’t aim PwC CEE Corporate Responsibility to give a detailed description of all the CR projects that we’ve initiated here. Leader Rather, our objective is to provide transparent and accurate information on the most important aspects of PwC’s corporate responsibility programme, as well as our key accomplishments and the tasks that still lay ahead. We have a good understanding of our programme’s strengths as well as of those areas where we still have work to do. But this understanding alone is not enough; we also need active, constructive feedback from all stakeholders for whom this report is intended. This helps us to obtain the fullest and most objective picture of our role in society. We would be most grateful for your opinions and comments about our report. 1 Terms in bold italics can be found in the Glossary on pg 42 4 Corporate Responsibility Report
  • 5. A letter from Peter Gerendasi, Managing Partner of PwC Russia Dear readers, I am pleased to present PwC Russia’s second corporate satisfaction with our corporate responsibility efforts, responsibility report, covering the period 1 July 2009 through confirming that we are on the right track. 31 December 2010. In our previous report, we focused on the Many notable events have occurred since the publication results achieved in our first year of implementing a regional of our first CR report. These include: corporate responsibility strategy, with the aim of giving readers a picture of our place in the business community, our • We celebrated PwC’s 20-year anniversary in Russia. influence among our extensive circle of stakeholders, and our • We have continued to build up our strategic potential overall mission and objectives. It’s time now for a new report, by creating new service offerings that reflect the needs and looking back at the past year and a half, I am proud of of our clients, and by expanding our geographical what we have succeeding in doing in the area of corporate footprint across Russia. responsibility. • In the aftermath of the crisis, we have succeeded in I am especially proud of our local community outreach retaining a talented pool of employees and continued our programme and all the diverse initiatives that it encompasses. investment in their professional and personal development. Our focus has shifted away from simply providing assistance in response to our partners’ requests towards a more • We have made a committed effort to participate in major integrated strategic approach to selecting which programmes innovation-driven initiatives and projects on a national to support. We have developed a policy that encourages scale, such as the Skolkovo Innovation Centre, the Sochi volunteerism and tried to focus on putting the extensive 2014 Winter Olympics and the project to transform knowledge and expertise of our people to work where they Moscow into an international financial centre. are needed most. PwC Russia is already over 20 years old, and a significant We’re continuing our efforts to reduce our environmental factor in our successful growth in the Russian market has footprint. The move to our new office, where we have made been our commitment to corporate responsibility. It’s our every effort to incorporate progressive international mission to fully integrate CR into our business model and environmental standards, represents a qualitatively new stage decision-making processes, and to increase our influence in this critical endeavour. We’ve retained our leadership within the broader society around us. position in the market despite vigorous competition and Our initial steps and successes have given us the confidence continue to work toward building value for our clients to believe that, working together, we can create a sustainable through trust-based relationships. We contribute to the future for all of us. development of responsible leaders of the future who will have the experience, knowledge and ability to foster strong relationships and build value for our clients. We’re pleased that our CR initiatives enjoy the solid support Peter Gerendasi of our people. According to a global survey conducted Managing Partner in 2010, 84% of PwC Russia respondents expressed PwC Russia Corporate Responsibility Report 5
  • 6. PwC Russia: a few facts and figures PwC is the leading professional services network in the world. Our client base comprises 2,000 companies, including PwC firms provide industry-focused assurance, tax and 166 companies from the Expert 400 list, accounting for advisory services. More than 161,000 people in 154 countries 73% of the list’s revenue. Among our clients are: across our network share their thinking, experience and • 4 of the 10 largest ferrous metallurgy companies solutions to develop fresh perspectives and practical advice. • 7 of the 10 largest retail companies Recently PwC celebrated 20 years in Russia. We keep growing, with offices now in six cities: Moscow, • 9 of the 10 largest oil and gas companies St Petersburg, Kazan, Ekaterinburg, Yuzhno-Sakhalinsk • 10 of the 10 largest banks and Vladikavkaz. • 4 of the 5 largest telecommunications companies PwC Russia highlights: • More than 2,000 employees (as of 31 December 2010) working in six offices • 188 hours of learning and development per employee were delivered over the reporting period • 119 professional qualifications were received by staff in 2010, including 77 ACCA qualifications • 55 of 158 top managers in PwC are women • 1,550 hours of pro bono lectures were given in universities by PwC staff • Over 200 volunteers contributed 3,000 hours for community needs • 27 projects were carried out under our corporate philanthropy programme Ratings and awards received in 2010 are listed in Attachment 1. 6 Corporate Responsibility Report
  • 7. Corporate responsibility Since 2008, when a corresponding programme was adopted Our idea of corporate responsibility is closely tied by the Central and Eastern Europe (CEE) regional network, to what we refer to as the core of our corporate culture – PwC Russia firms have regarded corporate responsibility as the PwC Experience. The PwC Experience underpins our an integral part of their strategy. Prior to this, we had been business strategy and forms the basis for most of our internal implementing a charity programme under the name learning and development programmes. Its core principles are: Connected to Russia for a number of years. • We invest in relationships • We share and collaborate We detailed our first steps under the Connected to Russia • We put ourselves in each others’ shoes programme in our 2009 CR report. We still take pride in the initiatives that grew beyond PwC to attract hundreds of • We enhance value through quality collaborators (see 2009 PwC Corporate Responsibility Report, In many ways, the PwC Experience philosophy complements Charity Instead of Gifts, Charity Club meetings). However, our goals in the area of corporate responsibility: both focus on time goes on, and while we give the past its due, we’re making relations with stakeholders, be they internal or external, both ambitions plans for the future, expanding our business and focus on increasing the positive impact we have, and both shaping the public agenda, developing further our system derive their strength from our core values of leadership, of key performance indicators. excellence and teamwork. The PwC Experience The PwC Experience is a reflection of our efforts to ensure PwC’s sustainable competitive edge and contribute to our clients’ and employees’ success. Across the whole of PwC’s international network, bringing the PwC Experience to life is one of our top priorities. Corporate Responsibility Report 7
  • 8. Our CR agenda Globally, PwC is a signatory to the UN Global Compact. In 2010 the PwC Global Corporate Responsibility Board In addition, in 2009 PwC signed up to the RSPP (Russian outlined a strategy for CR’s further development, centred Union of Industrialists and Entrepreneurs) Social Charter on three key themes: climate change, education and of Russian Business, which is a set principles for responsible social inclusion/diversity. These themes serve as the guiding business practices. In doing so, the firm assumed a voluntary principles that focus our actions in each of the above obligation to follow these principles in our interaction with four CR areas. PwC’s global sustainability programme local communities, investors, business partners, emphasises the importance of coordinating our CR efforts the authorities, workers and civil society. and the PwC Experience behaviours, maintaining dialogue with stakeholders, and embedding these values and behaviours in our core activity. Our choice is to do good business, act responsibly vis-à-vis all In all of Russia’s regions where we operate, we implement our stakeholders, have a long-lasting positive impact on the programmes under a common plan, with consideration for community, lead the way, and articulate with confidence our regional specifics and stakeholder needs. In the reporting vision of a sustainable future. We see our goal in making sure period we’ve achieved better coordination of CR activities in that our corporate responsibility activities are aligned with our regional offices; they’ve become better aligned with our our overall business strategy. strategy and organisational structure. We have identified four key areas where we measure our impact on stakeholders: • Community • Environment • People • Marketplace 8 Corporate Responsibility Report
  • 9. Four main CR focus areas Our main goal in the Community area is to be a good Our focus in the People area is promoting a culture that corporate citizen and act responsibly. We take our share will help our employees realise their full potential by using of responsibility for the well-being of the local communities progressive training methodologies and rewarding high in which we operate. We continue to implement our performance. The economic downturn could not but affect corporate philanthropy programme and engage with PwC’s business, but the company continued investing in Russian universities. PwC actively encourages volunteering professional development and talent management programmes. and supports disadvantaged social groups and NGOs. In particular, we have continued to improve our coaching We describe our volunteering policy in detail in the system, have created new forums for active dialogue with Community section of this report. In volunteering we try employees and have improved our communications with staff. to maximise the impact of our main intellectual asset – The firm’s move to the new office provided new opportunities the knowledge and expertise of our staff – and we’re working for taking better care of employees’ health. to extend the educational component of our corporate philanthropy programme. In the area of Marketplace we focus on innovation. We never lose sight of our priority goal: the high quality Our efforts in the Environment area are aimed at of our services, professional expertise and business conduct. managing our environmental impact. The nature of our We understand that the world is changing and the knowledge, business activity has not changed: we continue to consume business practices and solutions that have ensured our electricity and paper, and our employees frequently travel leading market position in the past are no longer enough in on business. We have carried on with our Small Steps the current environment. Market leaders today need to take programme (please see the 2009 PwC Corporate innovative approaches to traditional services, and have Responsibility Report for more details). But most importantly, an in-depth understanding of the client’s business and insight we have achieved a much higher level of control over our into areas that traditionally were outside the focus of the environmental footprint through concerted efforts to make business community. Our clients expect us to act in a fair our new office at the White Square Office Centre progressive and ethical way, be transparent, provide high-quality services and state-of-the-art in terms of technical facilities and in good faith, and play a leading role in shaping the public amenities. agenda. The downturn has made us leave our comfort zone and start working on challenging new projects, some of which we have already started implementing. Corporate Responsibility Report 9
  • 10. Our stakeholders Our stakeholders are groups or individuals who are affected by PwC’s activities, or who can affect ours. Many diverse stakeholders and stakeholder groups are important for us, and our interaction with them forms the basis of our corporate responsibility programme. We’ve identified key stakeholders in each of the four CR focus areas, and in the reporting period we engaged in a more active dialogue with some of them (e.g., with PwC employees and NGOs). We should be further improving our stakeholder dialogue both in terms of its regularity and depth. Stakeholder engagement is an ongoing process requiring time and effort. Our aim is to systematise this process and create communication channels that will ensure this dialogue is ongoing. Attachment 2 summarises our main groups of stakeholders and various communication channels with them. Management and governance of CR at PwC Russia CR at PwC Russia is led by the CR steering group. The group, In 2004 we formed our Charity Committee, led by a partner, includes four leaders responsible for which currently has 13 members. Our charity developing a corporate responsibility strategy in alignment with the firm’s overall business strategy as well as for focus remains on child welfare, education overseeing its implementation. Each office in Russia has and culture. a CR champion to help oversee project implementation In 2010 we completed 27 projects, managed locally. On a quarterly basis, the CR leader reports to the Operations Committee, made up of senior partners. by three subcommittees. Our community work is carried out along the following three lines: The CR leader is on the regional CEE and Central Cluster funding, professional assistance and volunteering. leadership teams. In 2004 we formed our Charity Committee, which currently has 13 members. Our charity focus remains on child welfare, education and culture. In 2010 we completed 27 projects, managed by three subcommittees. Our community work is carried out along the following three lines: funding, professional assistance and volunteering. Please see the Community section for more details. 10 Corporate Responsibility Report
  • 11. Our report This is our second report and we have tried to make it more concise and interesting to read. In 2010 we initiated a rebranding campaign (see the Marketplace section), and we’re hoping that the reader will feel the difference our new style makes in this report. We wanted the report to make for easy reading, to not be overloaded with information and to feature real-live stories. The report covers the period from 1 July 2009 to 31 December 2010. We’ve chosen this reporting period in order to facilitate our transition to calendar-year reporting in the future. The terms ‘reporting period’, ‘period covered by the report’ and the like used in the text mean the 18 months from 1 July 2009 to 31 December 2010. We’ve chosen to use the Global Reporting Initiative G3 Guidelines (GRI G3) in order to present a balanced picture of our activities. We believe that our report is at C level under the GRI reporting system. Corporate Responsibility Report 11
  • 12. Community Our objectives This section outlines our engagement programme with two main stakeholder groups: local communities in Moscow, St Petersburg, Ekaterinburg and Kazan; and universities. Because human capital is PwC’s most valuable asset, we gear our programme towards developing intellectual potential, enhancing professional expertise, active participation in growing tomorrow’s responsible leaders and engaging our employees in our community programme. NGOs that PwC supports are provided in Attachment 3. 12 Corporate Responsibility Report
  • 13. Local communities Last year we set ourselves the following major goals: • effectively collaborating with the community at large, with a focus on the educational element (using PwC’s intellectual potential); • actively involving PwC employees in volunteer work; • identifying key projects and making concerted efforts to ensure their successful implementation. We’ve identified projects that are in line with our strategy and A number of volunteers have taken the initiative to take help change life for the better through our volunteers’ direct charge of certain projects. For example, all our orphanages involvement. We focus on the educational element in virtually have volunteers-in-charge who visit the children together all projects, as this is where we feel we can make the biggest with their colleagues. Our volunteers themselves organise impact. During the reporting period we carried out 27 charity visits for kids from children’s homes to the Moscow projects. We’ll continue to work at selecting those projects International House of Music, the theatre or the bowling alley. have a real positive impact on our stakeholders. To increase volunteer involvement, in early 2010 we adopted a policy based on CR best practices that provides staff with Anna Sotskova, PwC volunteer: one working day per year to do charity work, be it organised “Natalya Sats Theatre is one of my favourite childhood by our Charity Committee or chosen individually. In our memories, a place where we were once taken as children estimate, in the reporting period over 200 volunteers gave and where we’d like to take our own kids. The children approximately 2,900 hours to various charity activities. really liked the theatre itself, especially the room with birds, the music box and the clowns. The kids were of different minds about the play. Some really liked it, some were tired, and some of the older ones were a bit too old for it – but everyone enjoyed getting out and getting to know each other. There was ice cream waiting for the children back on the bus, making the ride home that much sweeter. It won’t be the last time we meet up. We’re looking forward to seeing the kids again!” We share our main capital, our knowledge and experience. Together with Junior Achievement Russia, PwC volunteers helped deliver classes on economics at Moscow schools and held an Open Day featuring master classes and consultations on various business projects at PwC’s Moscow office. They also acted as judges of projects from the Enterprise without Borders innovation camp and in the Be Entrepreneurial contest as part of Global Entrepreneurship Week. PwC employees teach English to children who have graduated from orphanages, helping them to prepare for further studies. Corporate Responsibility Report 13
  • 14. In August 2010 a PwC team participated in the Kaluga- Our cooperation with NGOs has taken on a new flavour. Moscow Downside Up Charity Bike Ride for the first time For the first time in our history, we celebrated February’s and became one of its prize-winners. PwC’s football International Corporate Philanthropy Day by running job team participated in three Downside Up Charity Football motivation training for NGOs. This opened up a series tournaments in the reporting period. These are just some of of training sessions on topics selected by NGO the examples of our long-term cooperation with Downside Up, representatives. which began in 2008 with our Mt Elbrus climb that raised USD 100,000 for the foundation. Elena Gorbylyova, senior specialist in business In response to a desire expressed by our employees to donate development at the Leo Tolstoy Estate Museum funds to help sick children, we developed a donation at Yasnaya Polyana, says: distribution policy. In the past year and a half, we raised over RUB 500 thousand for this cause. “We were happy to take part in the time management training. I would like to note the event’s excellent organisation and the great job done by the trainers (this was my second training with them). I believe that this subject is extremely important, not only if you manage people, but more importantly, to help you achieve an internal balance in the age-old choice between life and work. Thank you very much for organising the training! I hope your company will continue to deliver these trainings for our grateful audience.” One of the Downside Up bike ride participants was Partner Chris Barrett, who knows first-hand what it’s like having a child with Down’s. Today Chris’s daughter Sonya is a shop assistant in a local supermarket, but 30 years ago Chris didn’t even imagine that Sonya would ever walk on her own. “Sonya has Down’s syndrome. When she was small, we received huge support from charity institutions in England, and Sonya could even study in a normal school with healthy children. People in my country have become more open, their attitude to such children has changed, and now the same is happening in Russia. And I just feel happy to be able to help somebody with it,” says Chris. 14 Corporate Responsibility Report
  • 15. Lyudmila Khomutova, teacher at the Udelnya Boarding School, said: We organised drawing lessons called Every Child “A huge thank you to Marina Dreznina, who developed and runs the is an Artist for people who work in rehabilitation Every Child is an Artist programme. Apart from the underlying theory, centres for children with special needs. The theory at each lesson we studied plans for running individual and classroom and practical tips they take away help the teachers lessons and projects. I greatly enjoyed getting to know other foster their kids’ artistic talents. participants and working together. I am sure that the knowledge and skills that I got from the training will help me in my future work with orphaned children. A special thank you to the training organisers for the comfortable working conditions, friendly atmosphere, attention, and understanding of the problems facing employees of specialised rehabilitation institutions.” We’re looking for new ways to engage our clients, business partners and alumni (former employees) in charity projects. For several years now we’ve supported the Spivakov International Charity Foundation, and for three years we’ve sponsored concerts by the foundation’s scholarship holders, held in the Kremlin Armoury, at which we award scholarships to the young talents. This year the initiative was supported by ZHASO Insurance Company, and we awarded scholarships to nine young musicians. We’ve also taken another step in providing professional We’ve significantly improved internal communications by assistance to help NGOs work more effectively by developing creating a special section on PwC Russia’s intranet portal an NGO support policy. This policy states that we apply the where employees can find our charity policies, donation same quality and risk management standards to NGOs as to distribution reports and information about foundations all of our other clients. supported by PwC, and learn more about various projects and how to join them. PwC employees receive announcements Finally, we continued to hold meetings between NGOs and of upcoming events by email, through which they can confirm our volunteers, and together with our long-standing CR their attendance immediately. Calendars with project partner Charity Aid Foundation, arranged Charity Club information for the next three months hang on each floor meetings. The Charity Club meetings held in the reporting of the PwC office. There is a new, regularly updated display period addressed issues like assessing charity programme case in the PwC Club with information on community and project efficiency, corporate philanthropy, government activities and our environment programme. Our corporate relations, supporting state-funded institutions and CR TV features updates on PwC’s charity and environmental management. For volunteers, we held three meetings with campaigns. representatives from the not-for-profit organisations Podari Zhizn, Liniya Zhizni and Big Brothers Big Sisters. We continue to monitor our people’s opinion about our programmes. The 2010 Global People Survey shows that 84% of Russian respondents are satisfied with PwC’s corporate responsibility activities. Over the last year and a half, PwC Russia’s offices donated over RUB 10.5 million in cash and in gifts-in-kind. Our people donated almost RUB 4.5 million of their own money to charitable projects in the areas of child welfare, culture and education. Corporate Responsibility Report 15
  • 16. Universities PwC continued to expand its cooperation with Russian • We’ve opened a PwC classroom at MSU to be used for universities through active involvement in educating regular classes and extracurricular activities run by PwC tomorrow’s responsible leaders. professionals. At the Ministry of Education’s request, we carried out an expert assessment of the Finance In addition to our traditional means of cooperation, we’ve University’s master’s degree programmes, a testimony developed new formats aimed at consolidating successes to our good reputation in the educational community. and attaining better results. In particular: Our stakeholders recognise PwC’s engagement in the • Our leading specialists from different departments put educational process, awarding the firm with certificates together and delivered lectures for master’s and bachelor’s of merit on behalf of Moscow State University, the Finance programmes at Moscow State Institute of International University and Moscow State Institute of International Relations, the Higher School of Economics (HSE), Relations. Moscow State University (MSU), and the Finance We’ve continued our project to provide university students University. Our employees gave about 1,550 hours with the opportunity to study for an ACCA qualification of lectures. upon graduating from Moscow, Ekaterinburg, St Petersburg • We engaged with student organisations, such as HSE’s and Kazan universities. Over the past year and a half Business Club and the Students League of Plekhanov we signed documents on cooperation in the area of University. Together with the HSE Business Club we qualification exam preparation, including an agreement delivered two master classes. We also held Economics with Gorky Ural State University and letters of intent Department Day at MSU and organised workshops and signed with the Finance University and Kazan (Privolzhsky) round tables with students as part of PwC Week. Federal University. The Rectors Club continues to be an effective platform for maintaining dialogue between universities and employers. The club’s five meetings in the period were attended by representatives of seven leading Moscow and St Petersburg universities. 16 Corporate Responsibility Report
  • 17. We’re also expanding the geography of our cooperation as of the Graduate School of Management at St Petersburg State part of our regional expansion programme. In the reporting University. In 2009 we helped support the creation of the period we formed strong relationships and outlined Graduate School of Management’s Centre for Corporate Social cooperation plans with a number of regional universities: Responsibility in order to conduct more extensive research Kuban University, Kuban Agrarian University, Novosibirsk into the topic and help prepare specialists in the field. PwC University, Novosibirsk University of Economics and also actively supports the work of the New Economic School. Management, North Ossetia State University and The Rectors Club continues to be an effective platform for Kazan (Privolzhsky) Federal University. maintaining dialogue between universities and employers. Our cooperation with business schools has also continued. The club’s five meetings in the period were attended by In 2010 PwC global network President Dennis M. Nally spoke representatives of seven leading Moscow and St Petersburg at a meeting of the Skolkovo International Advisory Board, universities. and also participated in a meeting of the Advisory Board Challenges and plans for the future Recognising the importance of our active involvement in educating and developing tomorrow’s leaders, the firm will continue building mutually beneficial, long-term relationships with the country’s universities and aligning these relationships with our business strategy. Our next objective is to increase PwC’s volunteer involvement, which should strengthen the culture of corporate responsibility not only at PwC, but in the communities in which our employees live and work. We want to focus our efforts on several major projects so that we can achieve greater results. We’re seeking to better use our intellectual resources, engage volunteers in the Charity Committee’s work and implement a single programme in all the regions where we operate, while still taking into consideration local specifics. Corporate Responsibility Report 17
  • 18. Environment Our objectives Reducing our environmental impact continues to be one of our primary goals. PwC’s Moscow office has been running its Small Steps campaign for several years, and now our regional offices are taking part as well (please see the Small Steps section, as well as information about other initiatives in our 2009 Corporate Responsibility Report). 18 Corporate Responsibility Report
  • 19. Environmental standards in the new office At the end of 2009, PwC’s Moscow office moved to a new • The building’s WCs are stocked with 100% recycled paper building in the White Square Office Centre. This was the final products. stage of a major operation that began with the PwC project • A smart lighting system allows us to reduce our electricity team taking part in the design and construction of the new use. In addition to having a positive environmental effect, building. One of our top priorities was making sure that the it has also reduced our average monthly electricity bills new office complied with the world’s most advanced (by sq m) by 47% thanks to the following: environmental standards. – Traditional light bulbs account for only 10% of all light PwC took its cue from the world’s best examples of modern, bulbs in the office. The luminescent bulbs in the office environmentally friendly business centres: are of the latest generation of energy-saving bulbs. • The office’s floors are made of recycled materials. – In some parts of the office, we use automated illumination control systems that include photo relays, • Our office furniture is made of PVC-free motion sensors and presence detectors. (polyvinylchloride-free) materials. – The office is also equipped with seasonal lighting • We do not use chemicals containing chlorine or (the lights automatically go off at a pre-set time, chloroorganic compounds for office cleaning. but can be turned on manually). • We reduced plastic cup use by 90% by replacing them with paper ones made from recycled materials. In 2010, our office won an award for implementing innovative technologies, including those meant to protect the environment. About 80 offices in Moscow, St Petersburg, Kyiv and Samara participated in the competition. Corporate Responsibility Report 19
  • 20. • Implementing a pass-card printing system has Our savings reduced paper consumption by about 12%. • The volume of our paper purchases went down We use large volumes of paper, but we have considerably by 12.72% as compared to the monthly reduced our consumption in recent years thanks to the average in the prior reporting period (FY09). Small Steps campaign. PwC has started sending documents • We saved around 2,278 trees by recycling electronically and introduced double-sided printing. The new office also has a controlled printing system. This means that 132,934 tonnes of paper. when an employee sends a printing request to a network • Our average monthly electricity consumption printer, they need to swipe their security pass card before was reduced by 7.87%. the job will print. If the job has not been printed within a certain amount of time, the print request is automatically cancelled. This simple step has not only allowed the office to prevent large numbers of unclaimed documents from piling up Unfortunately, plastic recycling at PwC was discontinued due near the printers and being sent straight to recycling, but has to the loss of the vendor. Currently, together with the landlord also provided for additional document security. We’ve set and other major tenants of the business centre, we’re looking another ambitious goal for ourselves: 100% recycling of all for a reliable vendor to set up separate collection of packing paper purchased by PwC Russia offices. In the St Petersburg materials and plastic. We’re actively exchanging ideas office, paper is collected for confidential shredding and then and contacts and are looking for environmentally friendly sent for recycling. In Kazan, the firm is in negotiations with solutions in cooperation with more than 30 other companies who collect paper for recycling. companies. The Moscow office has special recycling bins for paper The firm continues to measure the CO2 emissions of all its collection and further utilisation, with separate boxes offices in Russia. A single methodology is being developed provided for confidential and publicly-available documents. at the CEE regional level that would allow the entire region’s Lastly, we continue to pursue a policy of on-line subscription overall emissions to be measured, and PwC Russia is taking instead of distributing printed publications, where possible. an active part in discussions. The Green Team PwC employees play an active role in the firm’s environmental initiatives and are willing to go above and beyond for environmental protection. The Green Team has outlined several directions to pursue, including delivering lectures on environmental issues for students and schoolchildren as part of PwC’s educational programmes, as well as providing informational support for green initiatives in the office. The Green Team was established in 2010 and has had its first meeting to discuss areas of further activity. 20 Corporate Responsibility Report
  • 21. We also carried out more detailed reviews of contacts with 42 major suppliers Suppliers (with contracts per supplier worth more than RUB 2.5 million per year). We have reviewed The procurement policy, meant to streamline all significant or are currently reviewing 18 contracts purchases through the firm’s procurement team, is being (42%), and this process will continue. reviewed for compliance with Russian legislation and internal PwC procedures. Such a review was carried out twice in the last period, in August 2009 and in June 2010. When we request quotes from suppliers and service providers, We’ve initiated the process of reviewing contracts with all we also ask the biggest bidders about their corporate existing suppliers with whom we’ve signed framework responsibility/environmental protection programmes. agreements. In the last 18 months, we received documents PwC works with 21 suppliers with whom contracts have been of incorporation from counterparties for 435 out of signed for RUB 10 million or more per year. We have signed 553 contracts (79%), as compared to 23% during appendices regarding corporate responsibility with eight of them the previous period. and are negotiating signing such appendices with others. Use of public transport PwC recommends using express trains to travel to and from the airport. A reminder of this pops up each time a car booking is made, and train timetables are available on our internal website. During summer of 2010, PwC organised bicycle and scooter parking in the building’s garage. Challenges and plans for the future Some of our specific environmental goals have been described above (e.g., 100% recycling of all paper, selection of a reliable vendor for plastic collection and recycling, separate waste collection). Another goal is to have the amount of paper waste sent for recycling (directly or after shredding) match the amount of paper purchased as closely as possible. We’ll continue to develop a single methodology for measuring CO2 emission. We also aim to bolster the Green Team’s activities and get more people involved. As yet, we have been unable to make regular visits to orphanages to talk to the children about environment protection, but these trips are still very much on our agenda. Corporate Responsibility Report 21
  • 22. People Our objectives The main premise of this part of the report remains unchanged: at PwC Russia, our people are our most valuable asset. The corporate responsibility mindset as far as people are concerned is about considering the impact of management decisions on employee morale and motivation, treating all people with respect in a fair and transparent way, promoting diversity, creating a safe, cutting-edge working environment and, finally, developing the skills and competences required from responsible leaders. 22 Corporate Responsibility Report
  • 23. Learning and development It’s our responsibility to both our clients and our people A survey of university graduates who joined PwC in August 2010 to train and develop PwC employees so that they can realise shows that learning and development options provided by an their full potential and provide excellent service. employer tend to be a deciding factor in choosing a future job. Why did you choose PwC? (August 2010) Random choice More opportunities to learn and develop Reviwed the rating – PwC ranks higher than other firms I considered I like the new office More high-profile clients Outbound secondments I liked the people better 0 5 10 15 20 25 Highlights of the past 18 months: • We built up a team of 98 tutors from among • According to ACCA, our training pro- our most experienced and high-performing grammes for ACCA qualification are professionals. regarded as the most successful in Russia: we achieved a pass rate of 64% during • In 2010, our internal training programmes were the most recent examination period. accredited by the Russian Audit Chamber’s Insti- tute of Continuing Professional Education. • In 2010, 25 people joined a new • In 2010, over 850 employees were studying training programme developed by the for an ACCA qualification. After the 2010 summer Institute of Chartered Accountants examination session, 45 employees became new in England and Wales for the Certificate affiliates or licence holders, which is a record-high in Finance, Accounting and Business. pass rate. In 2010, a total of 77 employees Some 80% of the students passed obtained an ACCA qualification. their first exams under this programme successfully. PwC Russia implements innovative learning techniques Tax Academy and Business Consulting University – and maintains its status as a learning management expert. PwC offers its employees training programmes aimed We make extensive use of interactive distance learning at developing their management and leadership potential. (e-learning), which allows us to easily keep learning All employees that received a promotion in 2010 were materials up to date and save time on training activities. embraced by our milestone programmes. For these The proportion of formal classroom training to e-learning programmes, experienced PwC partners and external experts is 5:1. act as tutors, sharing their knowledge of best practices in Apart from the internal training programmes across international and Russian business, as well as their own the three lines of service – Assurance Sunny Academy, personal experiences. Corporate Responsibility Report 23
  • 24. Leadership programmes PwC applies innovative leadership development On the CEE regional level we have programmes targeted methodologies. One of the most effective technologies is at developing the leadership potential of high-performing the programme of personal coaching and development managers. In the reporting period, 20 employees from Russia aimed at improving performance and increasing people’s joined the Apollo and Leadership Challenge programmes. potential. Coaching is an integral part of team management. Genesis Park also continues to bear fruit. We described these We organise special training programmes to improve programmes at length in our previous report. the coaching culture and carry out annual assessments of coaches’ performance. Nadezhda Merkusheva, auditor, Genesis Park participant in 2010: “Genesis Park is not just another PwC leadership programme; it’s a three-step process for developing PwC’s future leaders. The process includes 1) raising self-awareness and developing authentic leadership qualities and skills, 2) building a network of global contacts and developing a strategic mindset, and 3) understanding that PwC is full of opportunities and a place where you can truly realise your potential!” 24 Corporate Responsibility Report
  • 25. Global Mobility Creating opportunities for people to gain experience working in other offices, regions and territories is an important area of PwC Russia’s people development strategy. Staff mobility is one of the firm’s success factors. Over the last period, 15 people relocated to work in other PwC offices in Russia, while 49 went on outbound secondments. Well-being You can find detailed information about the firm’s efforts in this area in the relevant section of our 2009 CR Report. In the reporting period, the firm continued to focus on encouraging the healthy, balanced lifestyle of its employees. The move to the new office brought new efforts to improve staff well-being. Significant office space is allocated to leisure, with a special Wellness Area equipped with massage chairs, an office for a GP and specialist doctors, as well as a shower room, a relaxation room and space for yoga classes. Corporate Responsibility Report 25
  • 26. Communication A robust feedback cycle is critical to being a responsible One of the main areas for improvement based on the employer. We’re continually analysing and improving our 2009 GPS results was the development of clear, honest and communication channels. transparent communications at all levels. We’ve created new communications forums, including open meetings between The most important and comprehensive of these is the Global partners and staff to discuss topical issues like the firm’s People Survey (GPS). The response rate for the 2010 GPS in strategy and its implementation, priority projects, career PwC Russia was 83%, which is higher than in 2009, when we development and the reward system. had a response rate of 62%. The People Engagement Index – a combination of perceptions including satisfaction, Our whole system of internal communications has become commitment, pride, loyalty, a sense of personal responsibility, more dynamic. With the help of our internal TV screens we and willingness to be an advocate for the organisation – deliver information to employees ‘live’ via interviews with was seven percent lower than the 2009 level, but higher than staff and prompt posting of the latest news. the PwC CEE regional result by five percent. Undoubtedly, this index was influenced both by the economic climate in general and by the fact that the employee response rate Based on the 2010 GPS results, we’ve identified three rose by a quarter against the prior year. However, the firm’s priority areas for improvement. These are: management is not inclined to simply write this off to the • developing a coaching culture; economic downturn and sees improving the People • promotion and reward of high performance; Engagement Index as one of its aims. • developing leadership skills at all levels of our organisation. Ethics PwC Russia prides itself on its reputation for doing business with integrity. Our ethics policy and Code of Conduct help us strengthen our clients’ and our people’s trust in us. In late 2010, we organised an Ethics Week that addressed, among other things, building effective and respectful relationships in teams. During Ethics Week, our in-house TV featured six interviews with the firm’s employees on issues related to team work and coaching. The week ended with an open meeting at which PwC Russia’s Ethics leader answered questions on ethics and business conduct. We engage staff who were nominated as Ethics Champions in ethics and business conduct-related workshops, communications and consultations. Our Ethics Champions held 16 mandatory ethics and business conduct workshops targeting employees promoted to senior consultant and manager positions. In the 2010 GPS, 79% of employees agreed with the statement “People in my group display and actively promote high standards of business conduct in accordance with the PwC Code of Conduct”. This is higher than last year. We have a whistleblower system in place and employees can report potential ethics violations by contacting an Ethics Champion, calling the internal Ethics Helpline or using an anonymous email address. Complaints are reviewed and appropriate actions are taken in response. The Ethics Committee leader reports to the Operations Committee on a quarterly basis. 26 Corporate Responsibility Report
  • 27. Diversity PwC Russia’s commitment to achieving diversity is reflected in our recruitment policy and learning and development curriculum. We continue to recruit from a wide range of faculties and universities. For example, in 2010 we recruited graduates for our Assurance line of service from 74 Russian universities and some overseas institutes. The share of graduates from regional universities is growing; in 2010 half of the young auditors beginning their career in PwC Russia’s Assurance practice were graduates from Moscow universities, while the other half came from regional ones. We regard team work and cultural exchanges between people from different backgrounds as one of our priorities. Graduates’ training and professional integration is one of our priorities for the next 2-3 years. We continue to focus on helping women progress to leadership positions. In 2010, two female partners were elected to the PwC Russia Operations Committee, and one female partner was elected to the regional CEE Operations Committee. As of 31 December 2010, we had 150 expatriate staff members from 36 different countries (6.79% of our workforce). Challenges and plans for the future The firm’s strategic focus as far as its people are concerned is turning PwC into a distinctive firm where each and every one of its staff can say with confidence, “My relationship with PwC helps create the value I’m looking for.” In 2010 we set ourselves a number of tasks: to improve our reward system, internal communications, coaching culture and professional development, and to achieve greater consistency in management actions. We are changing for the better in a process of continuous improvement – this is the way of life at PwC. Apart from Russian partners, PwC Russia has partners from 10 countries: Australia, Canada, France, Germany, Ireland, New Zealand, South Africa, Switzerland, the United Kingdom and the USA. Corporate Responsibility Report 27
  • 28. Marketplace Our objectives In this area, our goals remained the same: to build and sustain long-term relationships in order to maintain our leading position in the marketplace. We deliver high-quality services, develop innovative solutions and support the development of sustainable business practices that help our clients to grow and strengthen their business. PwC contributes to shaping a competitive economy by facilitating the greater transparency and effectiveness of companies in Russia. In 2009, PwC celebrated 20 years in Russia. We marked this anniversary with an official reception for clients and by occupying the top position in ratings of audit and consulting companies. In the spring of 2010, we received the results of the Big Four brand health survey, conducted by an independent agency, which confirmed that our brand was the most highly recognisable and differentiated in Russia. . 28 Corporate Responsibility Report
  • 29. Shaping the public agenda We retained our leadership position, though the last 18 we identified several areas of work: publishing a Russian months were difficult for Russian business. The economic edition of our Technology Forecast, conducting research slowdown forced companies to adjust their demand for and issuing reports, taking part in forums on innovation professional services. Where the total demand for our services and providing advice on innovative development. did not change significantly, we experienced price pressure. At the request of the Russian Presidential Administration However, the market pressure didn’t affect our approach to we published a report on tax, financial and legal incentives the quality of our services or make us less attentive to client for innovation in 11 countries. needs. To a certain extent, it prompted us to look for new solutions and services. As such, why our work during the past Together with the Russian Venture Corporation (RVC), 18 months was marked by innovations, which corresponds ROSNANO and the Russian New Economic School we with general economic trends in the country. conducted a survey on the major barriers to innovation and modernisation in Russia. PwC works with Russia’s The Russian government has set a new strategic direction regions to develop innovation clusters. The firm has become in the country’s development: modernisation and putting the coordinator of the Expert Group for Reforming Russian the economy on the road to innovation. In July 2009, Legislation to Promote Innovation for the State Duma’s in response to this initiative Dennis M. Nally, President Committee for Economy and Entrepreneurship. In November of PwC’s global network, announced the opening of a PwC 2010, PwC signed a Memorandum of Cooperation with RVC Centre for Technology and Innovation (CTI) in Russia on training programmes for start-ups (fast-growing new during a meeting between Russian President Dmitry companies, primarily in high-tech sectors). We’re advisors Medvedev and US President Barack Obama about business on the Skolkovo project and have engaged top international issues. The PwC Centre for Technology and Innovation experts for it. in Silicon Valley has been around for over 20 years and is known for providing expert knowledge on new technologies. In our estimates, our total investments in developing Russia’s We held a number of meetings with stakeholders to ensure innovation economy amounted to about 1 million US dollars that our Russian CTI becomes an integral part of Russia’s in the reporting period. innovation programme. As a result of these meetings, Corporate Responsibility Report 29
  • 30. Working with regulators In its dialogue with regulators, PwC uses different channels of communication, from participating in their briefings, surveys, delegations and projects to providing advice and sharing global best practices. We’re active members of the committees and commissions of the Council for Audit Activities at the Russian Finance Ministry and the Russian Audit Chamber. One of the innovative plans of the past year was to create an International Financial Centre (IFC) in Moscow. PwC joined this activity by developing a road map and engaging our professionals in the Working Group at the Russian Federation Presidential Council on Developing Russia’s Financial Markets. Dennis M. Nally has joined the International Advisory Council on Establishing and Developing an International Financial Centre in the Russian Federation. Thought Leadership In June 2010, in cooperation with the St Petersburg Especially for the forum, PwC developed the Deep Dive International Economic Forum, we implemented an website (deepdive.forumspb.com), a unique intellectual innovative marketing project. product providing delegates with real-time access to analytical information. PwC also set up knowledge cafes for forum participants where they could find materials on the key forum topics. PwC continues to issue Thought Leadership reports to sustain knowledge sharing with the business community and monitor industry trends. During the past period, we issued about 130 such publications. PwC also supported an international conference celebrating the 20th anniversary of the Federal Tax Service in November 2010. In the last 18 months, PwC has organised and participated in more than 500 events. 30 Corporate Responsibility Report
  • 31. Dialogue with clients During interviews that we conducted in parallel with In order to have an objective picture of our strengths and our brand research, our clients (CEOs and CFOs of major weaknesses with regard to our client service, five years ago companies) told us how useful they find seminars we introduced an annual client feedback programme. and conferences organised by PwC. The same survey showed that we need to talk to our clients in simple and In 2010, we sent 161 feedback requests to our key comprehensible language, and at the same time understand customers; of the 58 responses received, 86% gave PwC their expectations and explain how we can achieve their a positive appraisal. According to our Client Feedback Survey, goals together with them. in 2009 PwC Russia’s loyalty score was 8.3 out of 10, PwC’s rebranding, launched in October 2010, was to which, as in the previous period, falls in the ‘good’ range. a large extent brought about by client feedback. We changed not only the visual component of our brand; now our This information has helped us to proactively respond communication with clients is becoming simpler and clearer, to the market, and we did not reduce the intensity of our we’re trying to listen more, and we’re more than ever focused communication with clients in this difficult economic period. on achieving the results our clients expect. We’re doing a lot We focused our efforts on areas of key importance for the within the firm in order to comply with the new brand country and business, coming forward with innovative ideas standards. and solutions. Z.F. Garaev, First Deputy O.M. Konovalova, Deputy Director of the Board Chairman, Department, head of control division of AK BARS Bank: NOMOS Bank: “Workshops devoted to IFRS “I highly appreciate and respect the work done by you theory and practice raised and your colleagues. I always go through your our staff’s qualification materials with interest (including the marketing to a qualitatively new level materials you presented at the forum). Thanks to and the new knowledge was your efforts we have a chance not only to network, implemented in our work.” but to discuss the hot topics raised in research materials and publications issued by banking sector experts.” Corporate Responsibility Report 31
  • 32. Professional and business associations You can find detailed information about this in the Marketplace section of our 2009 Corporate Responsibility Report. Following our five-year collaboration with the Independent Directors Association, in 2010 PwC has started to develop its own programme for independent directors. Economic recovery after the recession required businesses to become more transparent and comply with stricter corporate governance standards. Regardless of the downturn, we were Forum we continued to support the participants, and the final conference no less active in promoting corporate corporate philanthropy rating. Last year brought together over 150 people. responsibility. In collaboration with the the rating attracted more companies, newspaper Vedomosti and the Donors we held a preliminary training for Business associations of which PwC is a member can be found in Attachment 4. Dialogue with alumni We maintain an active dialogue with former PwC staff and the mass media. We launched the PwC Connect website, a social network developed to provide former and current staff with a simple and convenient way of communicating about work and other topics of interest. 32 Corporate Responsibility Report
  • 33. Dialogue with mass media During the past 18 months, we held 15 press events, and our share of voice among the Big Four was more than one third. PwC attracted 329 positive publications, making us the highest rated of the Big Four. Challenges and plans for the future In making plans for the next period, we will continue to focus on building the new innovation economy, developing the financial market and creating an International Financial Centre in Moscow. We’ll continue to engage international specialists to help solve important issues in Russia. Without lowering the quality of services for our major clients, we plan to develop an approach for working with medium-size private companies to provide them with access to top-quality services. We’ll continue to contribute to regional development and plan to open offices in two more Russian cities. Corporate Responsibility Report 33
  • 34. Attachment 1 PwC Russia’s ratings and awards received in 2010 • Leader in audit and consulting services in Russia by revenue, Expert RA rating agency, March 2010 • PwC Russia’s legal practice, PricewaterhouseCoopers Legal CIS B.V., was recommended by the Legal 500 rating of leading Russian law firms • Russian Transfer Pricing Firm of the Year 2010 and Transfer Pricing Firm of the Year in Europe 2010, International Tax Review magazine, May 2010 • Best tax practice in Russia, World Finance magazine, 2009 • Russian lead financial advisor of 2009, Acquisitions Monthly magazine, 2009 • No. 1 in the IPO Auditor rating in terms of number and volume of deals for 2009, the ReDeal analytical group within the offerings.ru project • The Femida Award in the category Audit for high standards of legal practice in the Russian Federation, professional independence and its contribution to the development of the business community and rule of law • Russian Lead Insurance Auditor and Advisor for the 2009 All-Russia Gold Salamander insurance award • The largest employer of young professionals 2009 in the first Business and Higher Education Partnership rating by the Russian Rectors’ Union (RRU) • No. 1 in the rating TOP 50 Dream Employers for young professionals among audit and consultancy firms based on 2010 results, published by the newspaper Aktsiya 34 Corporate Responsibility Report
  • 35. Attachment 2 Key stakeholders Stakeholder Areas for cooperation Channels for cooperation People (current, former and potential • Job and retention guarantees • Global People Survey employees) • Career growth and prospects • Internal corporate intranet • Ethics issues • Focus groups • Coaching • Ethics Committee • Alumni Club events Clients • Business practices: challenges and • Client feedback survey opportunities • Brand health index • Satisfaction with PwC service quality • Senior partner review visits • Regular meetings Suppliers • PwC’s CR strategy and requirements for • Workshops suppliers • Regular meetings • Supplier challenges • CR knowledge exchange Government authorities and • Legal and regulatory framework • Regular meetings regulators • New or revised legislation • Work groups (led by PwC) • Participation in professional organisations Universities • Assistance to students in obtaining • Rectors Club professional qualifications • Lectures • Education of tomorrow’s responsible leaders • Opportunities for graduates Local communities, NGOs • Local communities’ needs • Charity events • Use of PwC staff’s knowledge and • Volunteering experience to meet community needs • Enhanced efficiency of NGOs Business and professional • Issues of mutual interest • Active involvement associations • Shaping the public agenda • Lead role in working groups and committees Mass media • Need for relevant information • Training for journalists on business • Importance of understanding business hot topics issues and PwC’s position • Press conferences on business trends Corporate Responsibility Report 35
  • 36. Attachment 3 NGOs that PwC supports Name Description Big Brothers Big Sisters of Russia A one-to-one mentoring programme for at-risk children Maria’s Children Art Center Helping orphaned children with special needs become full members of society by supporting their social, psychological and intellectual rehabilitation through various creative activities Dobro Autistic Children's Aid Society Creating and developing a system for helping people with autism in Russia Yuny Spartakovets Children's sport club The Circle Developing tolerance and cooperation in children and adults Diema's Dream Providing financial, medical and educational support for physically and mentally disabled children in Russia Leo Tolstoy Museum-Estate Yasnaya Restoring the unique cultural milieu of Leo Tolstoy's life and times Polyana (including the town of Krapivna) The Vladimir Spivakov International Supporting talented young musicians, artists and dancers Charity Foundation Tchaikovsky Symphony Orchestra Supporting cultural education projects and talented children of Moscow Junior Achievement Russia Developing and promoting JA's business and economic educational programmes for youth through partnership between the business and educational communities Partners in Hope - Big Change project Supporting Russian NGOs that work with vulnerable children and their families Downside Up Supporting families and state and non-profit organisations in teaching, raising and integrating children with Down syndrome into society Charities Aid Foundation Russia Working to raise donations, create favourable conditions for philanthropy's development, and provide assistance to charity organisations and their supporters Russian Orphan Opportunity Fund Providing graduates of children's homes with high-quality education free of charge (both academic and life skills) Sofia Foundation Helping our neighbours and promoting society's spiritual traditions Podari Zhizn Helping children with cancer, blood diseases, and other serious illnesses Reducing the rate of child death from illnesses that could be treated with Liniya Zhizni modern medicine A Chance to Work project Providing 18 to 28 year-olds that graduated from children's homes with basic training in non-commercial organisations as well as practice in companies that participate in the project 36 Corporate Responsibility Report
  • 37. Attachment 4 Business associations of which PwC is a member Association of European Businesses (AEB) Canada Eurasia Russia Business Association (CERBA) BUSINESS ASSOCIATIONS American Chamber of Commerce (AmCham) Independent Directors Association (IDA) Russian Managers Association (AMR) U.S.-Russia Business Council (USRBC) Russo-British Chamber of Commerce (RBCC) Russian Union of Industrialists and Entrepreneurs (RSPP) Russian-German Chamber of Commerce (AHK) Japanese Business Club American Chamber of Commerce St Petersburg Chapter (AmCham) ASSOCIATIONS IN St Petersburg International Business Association (SPIBA) BUSINESS REGIONS Association of Businesses and Entrepreneurs of the Republic of Tatarstan Chamber of Commerce and Industry of the Republic of Tatarstan Leningrad Region Chamber of Commerce St Petersburg Audit Chamber Russian Private Equity and Venture Capital Association (RVCA) Russian Audit Chamber (RAC) Institute of Internal Auditors (IIA) PROFESSIONAL ASSOCIATIONS Association of Certified Fraud Examiners (ACFE) Association of International Pharmaceutical Manufacturers (AIPM) Association of Russian Banks (ARB) Cambridge Energy Research Associates, Inc. (CERA) International Business Leaders Forum (IBLF) Mining Advisory Council (MAC) Russian Insurance Association (All) Urban Land Institute (ULI) Guild of Actuaries Corporate Responsibility Report 37
  • 38. GRI Content Index Standard disclosures: Profile disclosures GRI Description Commentary and/or cross references Reported1 Page in Index report 1. Strategy and analysis 1.1 Statement from the most senior decision-maker of the Letter from the Managing Partner of PwC + 5 organisation about the relevance of sustainability to the Russia organisation and its strategy. 1.2 Description of key impacts, risks, and opportunities. Our CR agenda, Four main CR focus areas ± 8 2. Organisational profile 2.1 Name of the organisation. Glossary of terms + 42 2.2 Primary brands, products, and/or services. PwC Russia: A few facts and figures + 6 2.3 Operational structure of the organization, including main Glossary of terms + 42 divisions, operating companies, subsidiaries, and joint ventures. 2.4 Location of organisation's headquarters. Contact information + 44 2.5 Number of countries where the organization operates, and The report covers only Russia and cities in + 43 names of countries with either major operations or that are Russia: Moscow, St Petersburg, specifically relevant to the sustainability issues covered in Ekaterinburg and Kazan the report. 2.6 Nature of ownership and legal form. Private, Glossary of terms + 43 2.7 Markets served (including geographic breakdown, sectors PwC Russia: A few facts and figures; + 6, 43 served, and types of customers/beneficiaries). cities in Russia: Moscow, St Petersburg, Ekaterinburg and Kazan 2.8 Scale of the reporting organization. PwC Russia: A few facts and figures ± 6 2.9 Significant changes during the reporting period regarding No significant changes in the reporting + size, structure, or ownership. period 2.10 Awards received in the reporting period. Attachment 1 + 34 3. Report parameters REPORT PROFILE 3.1 Reporting period (e.g., fiscal/calendar year) for Our report + 11 information provided. 3.2 Date of most recent previous report (if any). Our previous report, covering the 2009 + financial year (from 1 July 2008 to 30 June 2009), was published 31 March 2010 3.3 Reporting cycle (annual, biennial, etc.) Our report + 11 3.4 Contact point for questions regarding the report or its Contact information + 44 contents. REPORT SCOPE AND BOUNDARY 3.5 Process for defining report content. Our CR agenda, Four main CR focus areas ± 8 3.6 Boundary of the report (e.g., countries, divisions, Cities in Russia: Moscow, St Petersburg, + 6 subsidiaries, leased facilities, joint ventures, suppliers). Ekaterinburg and Kazan 3.7 State any specific limitations on the scope or boundary of Cities in Russia: Moscow, St Petersburg, + 6 the report. Ekaterinburg and Kazan 3.8 Basis for reporting on joint ventures, subsidiaries, leased The report reflects the activities of PwC + facilities, outsourced operations, and other entities that Russia can significantly affect comparability from period to period and/or between organizations. + Fully reported ± Partially reported – Omitted 38 Corporate Responsibility Report