Corporate Citizenship/Responsibility
Corporate Citizenship has been identified as a key factor in the Group's strategy for long term success. Corporate citizenship relates to meeting the growing needs of the present without compromising the possibilities of future generations. Put differently it incorporates taking responsibility by managing the company's impact on society and the environment. Conducting business this way is a necessary part of the pursuit of sustainable growth and performance that endures and must be the responsibility of all employees.
Working in a responsible way is not just morally and ethically correct but makes for good business and strengthens our company brand, builds trust in the company and creates preference for Black Earth Farming among different key stakeholders. It reduces our risk exposure, makes us more attractive as an employer – and makes us a better investment choice. To succeed in this, we need to ensure that we build accountability into the way we actually work, thus creating long-term value on an economically, socially, and environmentally sustainable basis.
In our view the central aspects to corporate citizenship or responsibility are - social, economic and environmental responsibility.
Social Responsibility
Black Earth Farming’s focus is on bringing fallow arable land back into production, it effectively taps currently unused sources for food production, and is no less than a necessity to balance the food supply and demand curve for the worlds increasing population.
Our focus on the redevelopment of fallow land creates new job opportunities with stable and relatively high means of income, in communities were this has been and in many cases still is a luxury. We care for the safety of our employees, and conduct regular training sessions and seminars on for example how to use the equipment the right way, which is the safest way. We contribute to local communities both through our own economic development which helps bring commerce and tax revenues to the local administrations, but also by financial support to many local activities and social projects.
The Company’s 2010 corporative social program envisaged support to restoring regional infrastructure as well as contributions to various public organizations of the Central Black Earth Region. Projects included developing rural infrastructure, opening schools and kindergartens, promoting cultural events, as well as supporting local educational, cultural and sporting projects.
In 2010 the Company performed works on repairs and restoration of road surfaces on a regular basis including several voluntary contributions for infrastructure development in the regions of Lipetsk, Voronezh, Kursk and Tambov. In addition due to the extremely dry summer of 2010 with frequent forest fires, the company assisted with special equipment for fire fighting and construction of fire posts.
Funds have also been allocated to local schools to upgrade schools and children’s playgrounds. Several sports and fitness camps were sponsored providing youths of low-income families in physical activities and promote well being.
A strategic partnership was signed with the Voronezh State Agricultural University where the Company will provide assistance in organization of practical training stipulated by the educational program as well as establishing scholarships for the students of Agronomy and Agro-Engineering faculties.
Black Earth Farming believes in striving towards being a role model in our sector in Russia in terms of governance, and transparency, to help bring better visibility and stronger interest to the whole sector from different stakeholders.
Guiding principles: safety, health, stability, community contribution, role model
Economic responsibility
The longevity and success of Black Earth Farming will support several stakeholders economically. This includes everything from employee salaries, commercial relationships with suppliers and customers, tax revenues to local districts, and creating value for our shareholders. To a large extent the economic sustainability of our business is a product of mutually beneficial relationships with our various stakeholders and we believe in growing and prospering together with our stake holders. Good and beneficial relationships are built by a high level of professionalism, integrity and business ethics in the way we operate and interact.Good corporate governance and communication is an important part of fostering a good relationship with our shareholders and building trust from the market in the Company and its management. Furthermore the Company has a clear focus on creating long term shareholder value by realizing the full economic potential in what we do.
Guiding principles: stability, longevity, stakeholder prosperity, long term relationships, shareholder value
Environmental responsibility
Preserving the planet's limited resources is a vital concern, and is the responsibility of all people but we as a company have an extra responsibility and capacity to motivate and stimulate environmental thinking in respect to our activities.
We must conserve forests and other natural ecosystems, while at the same time feed the increasing population, to do this we need to utilize and increase productivity on what is already arable land. This reduces the pressure to clear forested land in other places to meet food demand, and so helps preserve the planet's green lungs. Many different measures, such as judicious and greater use of mineral fertilizers and chemicals will help increase crop yields sustainably, and use existing agricultural land more efficiently. Without the addition of nutrients and minerals the soil would with time also be depleted of its natural content of these substances.
Black Earth Farming is committed to cultivate its land in an environmentally responsible way that ensures long term health of the soil and minimizes the impact on surrounding ecosystems. To a large extent this comes from application of fertilizer and other necessary chemicals at optimum rates and timings, which is achieved by continuous staff training and good management. Application of inputs at optimum rates also maximizes the economic benefit for the Company. A crop rotation mix is also chosen for long term sustainability of the soil, not short term profits. Furthermore, the Company puts great emphasis on correct handling and storage of pesticides, fertilizer and other chemical compounds.
Guiding principles: Sustainability, safe handling, long term soil health, ecosystem awareness