UC RUSAL Sustainability report 2015

Social Programs Management

Social Programs Management

In conformity with the Development Strategy of social orientation the basic objectives 2015 were the following:

·         increasing the efficiency of management through the main social programs and organizational development of CSP and CISS;

·         modernizing the content and formation of social programs.

Organizational development

In 2015, the Company conducted an assessment of organizational development of the CSP Fund and CISS with the assistance of an independent company as a consultant. As a result of this work, long-term objectives were identified, which will be conducted in 2016. Particularly, the Company plans to develop standards and regulations of social activities, to improve the workflow of the two organizations in order to reduce unnecessary costs and improve the interaction with stakeholders and partners of the programs, to ensure further transparency of operations. One of the most relevant objectives includes raising the competency and expertise of CSP and CISS personnel through their participation in targeted training programs.

Modernization of programs

Within the framework of the program activities modernization, the program content was updated, new competitive categories and formats of interaction between participants was created. All four programs applied a competitive approach, which increased the efficiency and transparency of fund allocation.

The target audience of the programs was considerably expanded due to the participation of new occupational groups and types of organizations. Particularly, professional associations, individual entrepreneurs, home unit companies (HUC) and management companies, commercial entities, as well as initiative groups of citizens can now take part in the competitions.

Extensive work has been carried out to improve the quality of the expertise of competitive projects. It is expected that the new approach will contribute to more careful selection of applicants for funding and improvement of overall performance of social programs. The new multi-level system of applications expertise will be applied in all grant competitions. It is based on the collective assessment of applications received by both managers of CSP and CISS, and external experts and specialists. Each territory holding a competition must form its own expertise pool composed of representatives of municipal authorities, managers of the Company’s enterprises working at the respective territory, local non-commercial and specialized organizations. The system includes several stages:

·         technical expertise and preliminary selection (conducted by managers of the programme after receiving applications);

·         public defense of the applicants' projects;

·         absentee regional stage of expertise: external experts evaluate the projects of their region; each project obtains a rating in accordance with the accrued number of scores;

·         examination (expertise) of applicants for financing by UC RUSAL;

·         final selection of winners by the Expert Council.

A new format of applications assessment involves online voting by residents on a special portal. This type of evaluation is an important indicator of the project’s public utility. The score received through the portal is added to the score given by experts and taken into account in the total rating score. This approach has already been accomplished for RUSAL Territory and Formula of the Future programs. The initial experience identified the necessity of extra efforts to improve the competencies of both participants, and experts.

The involvement of the Company’s employees into events of the projects that have already received financing is also considered as a new trend. Its relevance is explained by an opportunity to improve an employee’s awareness about the social responsibility of the Company. When making a plan of actions and events, employees and their family members can select the most interesting projects for them and participate on a regular basis if they so wish.