Social Responsibility

The implementation of the personnel policies of the UCC has been carried out in accordance with the HR policy of the UCC approved by the Supervisory Board on October 29, 2013, the protocol № 13/13.

Key areas of the human resources policy:

1. Improving the quality of human resources;

2. Performance management;

3. Development of corporate culture;

4. Management of organizational structure, effective organization of business processes.

The implementation of the human resources policy is carried out in accordance with the plan of activities approved by the SB of the UCC.

In 2013, the following activities have been held:

Competitive selections of candidates have been held to fill in 28 vacancies in the UCC.

As a result of the competitive selection, 28 people have been hired, including those who have been appointed by transfer within the UCC — 24 people.

The performance management system for the UCC executives is continuously monitored based on key performance indicators and evaluation of implementation of goals defined by the Strategy for Development of the UCC for 2012-2022. The efficiency maps with target values of the executives for 2013 have been approved by the Supervisory Board on September 16, 2013 (Minutes № 09/13).

By the end of 2013, the UCC held the assessment of work of administrative employees in accordance with the Rules of evaluation of the UCC administrative staff and the Order of the UCC Chairman of the Board “On the assessment of activities of administrative employees in the end of 2013” on November 11, 2013 № 110, in total 50 employees of the UCC have passed the assessment, of which 15 — executive and managerial staff, 35 — administrative staff.

The Evaluation Commission, having examined the submitted materials at the meeting with a view of adequacy for jobs, presented individual recommendations for the assessed employees:

— Adequacy of an employee for his/her position — 50 employees;

— The recommendation for admission to the talent pool to be offered the position of a higher category — 16 employees;

— Request of recertification — n/a;

— Inadequacy for the position — n/a.

24 employees of the UCC were not subject to the attestation (they worked with the UCC less than 6 months).

During the reporting period 11 labor agreements have been terminated by the UCC with employees by mutual agreement of the parties.

The planned personnel turnover for 2013 — 11.6%, the actual turnover for 2013 was 25.5%. Compared with 2012, the turnover increased by 3.5%.

In order to determine the degree of satisfaction (index of involvement) of the personnel, the Private institution “Corporate University “Samruk-Kazyna” in August-September 2013 conducted a study of the involvement of the UCC employees through questionnaires.

According to a survey, indexes on the main aspects are generally in positive zone:

— Employee engagement index of the UCC is 83%, which indicates that the situation in the UCC is stable and does not require active corrective actions;

— Satisfaction index of the UCC — 87%;

— Staff loyalty index — 82%;

— Index of initiative support in the UCC — 73%.

Compared with 2012, the involvement index grew up by 8% (in 2012 the index of involvement was 75%), the index of loyalty compared with 2012 increased by 5% (in 2012 loyalty index was 77%), the index of initiative support compared to 2012 increased by 5% (in 2012 it was 68%).

The policy of corporate social responsibility of the UCC has been approved by the Supervisory Board of the UCC on December 24, 2013, protocol № 16/13.

As a part of corporate social responsibility, the necessary conditions for the employees have been created. Human capital is the most important strategic resource of the UCC.

In the area of remuneration and career growth, the UCC policy is based on recognition of the professional qualities and abilities of employees, the results of their work and achievement of performance targets.

The UCC introduced a system of evaluation and awarding bonuses to employees, establishing a relationship of remuneration amount and the performance of the Map of goals, as well as the development of individual development plans.

In accordance with the Rules of rendering the social support to the UCC employees, the financial assistance for health improvement during the annual paid leave, in cases of birth/adoption of a child, in connection with death of an employee/relatives, other compensation payments and voluntary medical health insurance for an employee and his family members.

In accordance with the Rules of professional training and development of employees, the employees are given the opportunity to improve their level of education and qualifications.

In 2013 in the individual training events were attended by 45 employees of the UCC, including international events attended by 2 employees on the following topics:

— technical modernization of production in Moscow;

— the international practice of tendering and procurement in London.

Also in 2013, the UCC organized 10 corporate seminars which involved, as a whole, 72 UCC employees, with the participation of key employees of subsidiaries and affiliates. In particular, in April 2013 the UCC organized the corporate seminar with participation of the international coach Professor Pascal Maenhout, INSEAD, on “Corporate Finance; at the end of the workshop the UCC and SAC staff have passed examination of knowledge in a test mode. Also, seminars for corporate employees were conducted (with coaches) in the office of the UCC with a minimal discontinuation of work of the employees.

The disbursement was 29,997 thousand tenge with a planned level of 30 009 thousand tenge.

In the UCC, there is a permanent comprehensive enhancement of professionalism of workers, which consists of the development of professional thinking and consciousness, through participation in internships, seminars — meetings, conferences, forums, exhibitions, symposia, round tables, training, workplace training programs related to the introduction and implementation of projects in the UCC, adaptive learning.

In 2014, it is planned that 100% of employees will take part in training activities to improve their skills in accordance with the Individual development plan and the disbursement of the funds for preparation and retraining of the UCC employees in the amount of 34 723 thousand tenge.

Within the framework of the development of the UCC and SAC competence in project management, with the use of internal resources of the Project Management Center:

— in September-November 2013, the basic training of the UCC staff was conducted on project management in 35 hours. According to the results of testing, the certificates were issued for 34 employees of the UCC.

— the special training for the UCC and SAC on the application of Microsoft Project 2013for the management of projects schedules in total of 8 hours (the joint training for the UCC and SAC, and three separate trainings for “MC SEZ Himpark Taraz” JSC, “HIM-plus” LLP, “Polymer Production” LLP).

— the separate training was held for the employees of the “KPI Inc.” on the application of Primavera in the management of the project schedules in total of 8 hours.

A draft Corporate Standard of Project Management (CSPM) is developed to promote a systematic approach to project management of the UCC, the introduction of the world’s best industry practices, regulation of activities in this area. In the developing of CSPM the recommendations of professional communities PMI and IPMA, experience in solving similar problems in AirAstana are taken into account. In December 2013, the main provisions of CSPM were presented to the Managing Director of “Samruk-Kazyna” JSC Nick Malloun.

The UCC attaches the highest priority to the actions aimed at reducing harmful emissions that are dangerous for the environment. The UCC intends to conduct its activities in compliance with the legislation of the Republic of Kazakhstan in the field of environmental protection and promote international standards for environmental management in subsidiaries and affiliated organizations of the UCC.

In 2013, “JV SAP Kazatomprom” LLP, “KPI Inc.” LLP have timely received permits of the environmental authorities for the emissions to the environment. There has been no abuse of agreed standards for emissions and discharges, SMW of the SAC.

During 2013 the Department of Ecology for Atyrau oblast audited the UCC and SAC on compliance with the requirement of the Environmental Code of the Republic of Kazakhstan. According to the audit results, no violation of the Environmental Code of the Republic of Kazakhstan is registered, no fines are imposed and no claim is issued.

For 2014 the SAC, in the prescribed manner, have obtained permissions for emissions into the environment.

Each employee receives information on fire safety, including from the state fire services.

The UCC also created the conditions and took measures for labor health and safety of employees. The briefings with employees on labor health and safety, as well as the verification of knowledge on labor health and safety are being conducted timely.

In 2013, the UCC hasn’t registered any accidents in the production facilities.

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