Corporate Citizenship/Responsibility
Corporate Citizenship has been identified as a key factor in the Group's strategy for long term success.
With corporate citizenship we mean meeting the growing needs of the present without compromising the possibilities of future generations. Put differently it means 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 this 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.
Black Earth Farming has been and still is a pioneer when it comes to modern farming in Russia and seeks to further sediment its role in society as a driving force for sustainable development and good governance. Social responsibility entails caring for external stakeholders as well as internal. Black Earth Farming strives to conduct business in a way that not only safeguards employees, customers, community neighbours but helps develop them as well.
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.
During 2008 and beginning of 2009 Black Earth Farming has arranged several excursions and educational trips for school classes in its regions of operations, with over 400 pupils participating from the Kursk, Lipetsk, Tambov and Voronezh regions. Black Earth Farming has furthermore established a number of permanent social projects in the regions where it operates:
2. Kids about earth – project to educate school children about nature and the local regions’ historic and cultural heritage. Various study trips and also site visits to farms have been arranged and a book is being made with drawings by kids.
3. Schoolyard without drugs – initiative to promote a drug free environment. Different activities are organised for teenagers and the Company sponsors local football clubs to support a wealth of available community-, especially sporting, activities.
Besides the above ongoing projects the Company has in 2008 provided support to many other no less important activities and projects, such as:
The Company has helped with physical labour and financial support to renovate schools and kindergartens in the Tambov, Kursk, Lipetsk and Voronezh regions, it has also sponsored local schools in the Tambov, Kursk, Lipetsk and Voronezh with computers.
Black Earth Farming has helped renovate churches in the Voronezh, Lipetsk, Tambov and Kursk regions as well as provided support to renovation of local infrastructure.
The Company has provided financial support to war veterans and disabled as part of a humanitarian program, including support to victims in the recent Georgia - Russia conflict.
Black Earth Farming has also provided support to the construction of a sports hall in the Lipetsk region.
Last but not least, we believe 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 our company 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