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Kazakhstan

The role of CSR

Corporate social involvement remains a little known phenomenon in Kazakhstan. The state bears most of responsibility for meeting society’s needs. Accordingly, the main goal of the oligarchic-style economy is operating economically. However, political leaders do expect companies to support politically favored projects.

NGOs are socially involved, but this commitment is financed to a great extent by the state and international institutions rather than by businesses.

Moderate secular Muslims compose one of the large ethnic groups in Kazakh society. According to Islamic values, those with sufficient resources are obligated to help care for others. The same holds true among the Russian Orthodox community, the second large ethnic group.

The international organizations and intermediaries active in Kazakhstan engage in little CSR. Their focus is instead on projects promoting Kazakhstan’s economic and social development.

Many attempts are being made, especially on a local level, to establish social structures and encourage assumption of responsibility for social issues among members of civil society. However, Kazakh companies are reticent in supporting such efforts.

Source: German Embassy, Astana

CSR understanding

Policymakers have social expectations of Kazakh companies because their thinking is still influenced by the era during which the economy was controlled by political decision-makers and served as a tool for reaching political goals.

Religious factors play virtually no role in Kazakhstan. As repeatedly revealed by Gallup Polls, Kazakhstan is the only country with a substantial Muslim population in which survey participants indicate that they do not regard religion as an important component of their daily lives.

Kazakh government leaders and the Kazakh economy are still focused on restructuring domestic business life. Socio-political aspects have taken a backseat in the effort to accelerate the establishment of industries revolving around processing, technology and science. In addition, the concept of responsibility for social provisions by the state is strongly anchored in Kazakh society.

Source: German Embassy, Astana

Expectations towards companies

Above all else, policymakers expect companies to operate profitably and ensure that their products contribute to the well-being of society. Society, on the other hand, expects companies to be committed to social causes.

There are no special expectations of foreign companies.

Source: German Embassy, Astana

Basic conditions

Industry initiatives

WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

On-site network since 2003

On-site contact
BCSD Kazakhstan
Kazakhstan Business Council for Sustainable Development
Gulsara Yedilbaeva
Executive Director, Kazakhstan
Office #506
30 a, Kabanbai Batur Street,
Astana 010000
Kazakhstan
Tel: +7 3172 59-20-19,
Fax: +7 3172 59-20-56
E-mail: g_edilbaeva (at) epa (dot) kz
Website: www.kap.kz

Areas of activity

Education

Basic information

  • Public spending on education (share of GDP): 2.3% (2005)
  • Compulsory school attendance: 7 – 17 years
  • Rate of school enrollment: 93% of children who are required to attend school (2004)
  • Literacy (definition: those over the age of 15 who can read and write): Total population: 99.5%; males: 99.8%; females: 99.3% (1999 est.)
  • HDI Education Index: Rank 73 out of 177 (1 = max., 0 = no education)
  • Average years of education: Total population: 15 years; male: 15 years; female: 16 years (2007)

Education and training initiatives are key areas of activity in Kazakhstan. The focus of these initiatives is on occupational training.

Participants

Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ Kazakhstan
http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien/654.htm

Chamber of Foreign Trade
http://ahk.de/en/ahk-locations/kazakhstan/#c2463

European Business Association of Kazakhstan
http://www.eurobak.kz/indexfull.php

Friedrich-Ebert-Stiftung - Auslandsbüro Kasachstan
http://www.fes.de/international/moe/in_moe/kasa.htm

Company examples

Bilateral state and development cooperation projects are being implemented, e.g. advanced training of business managers, continuing education program for managers (the German InWent organization and the Kazakh Turan Profi Academy) and occupational training for women and girls (GTZ project).

Knauf Gips AG and the Trier Chamber of Skilled Crafts (Handwerkskammer) are active in this area as well.

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas 

 

Source: German Embassy, Astana

 

Political involvement

Basic information

  • Wahlrecht: 18 Jahre; universell
  • Rangliste der Pressefreiheit: Rang 125 von 169 (2007)

Despite the large number of different religious and ethnic groups, Kazakh society is relatively homogeneous, with no marginalization of specific groups or notable instability.

Participants

Als Akteure kommen grundsätzlich Organisationen der Entwicklungszusammenarbeit (GTZ, CIM etc.), Handels- und Außenhandelskammern, Unternehmerverbände, Gewerkschaften, Ministerien (Industrieministerium, Ministerium für kleine und mittelständische Unternehmen) und politische Stiftungen (beispielsweise Friedrich-Ebert-Stiftung, Friedrich-Naumann-Stiftung oder Konrad-Adenauer-Stiftung) in Frage.

GTZ Kasachstan
http://www.gtz.de/de/weltweit/europa-kaukasus-zentralasien/654.htm

Auslandshandelskammer
http://www.ahk.de/index.php?id=kasachstan

European Business Association of Kazakhstan
http://www.eurobak.kz/indexfull.php

Friedrich-Ebert-Stiftung - Auslandsbüro Kasachstan
http://www.fes.de/international/moe/in_moe/kasa.htm

The area of political participation is therefore not very relevant for social engagement by corporations.

Source: German Embassy, Astana

Participation in society

Despite the large number of different religious and ethnic groups, Kazakh society is relatively homogeneous with no marginalization of certain groups or notable instability.
The area of participation is therefore not very relevant for social engagement by corporations.

Participants

Als Akteure kommen grundsätzlich Organisationen der Entwicklungszusammenarbeit (GTZ, CIM etc.), Handels- und Außenhandelskammern, Unternehmerverbände, Gewerkschaften, Ministerien (Industrieministerium, Ministerium für kleine und mittelständische Unternehmen) und politische Stiftungen (beispielsweise Friedrich-Ebert-Stiftung, Friedrich-Naumann-Stiftung oder Konrad-Adenauer-Stiftung) in Frage.

GTZ Kasachstan
http://www.gtz.de/de/weltweit/europa-kaukasus-zentralasien/654.htm

Auslandshandelskammer
http://www.ahk.de/index.php?id=kasachstan

European Business Association of Kazakhstan
http://www.eurobak.kz/indexfull.php

Friedrich-Ebert-Stiftung - Auslandsbüro Kasachstan
http://www.fes.de/international/moe/in_moe/kasa.htm

Source: German Embassy, Astana

Environment

There is need for action in Kazakhstan in the area of environmental protection, especially in regard to old nuclear contamination.

Basic information

  • CO2 emissions: 0.7% of total world output (2004)
  • CO2 per capita: 13.3 t (2004)
  • Energy consumption: 76.43 million kWh (2005)
  • Water consumption (households/industry/agriculture): Total:  35 km3/year (2%/17%/82%); per capita: 2.360 m3/year (2000)
  • Hydropower, solar, wind, geothermal energy: 1.3 % of primary energy consumption (2005)

Just as is the case for investment in Germany, German companies making investments in Kazakhstan must comply with strict standards oriented to those in effect in Germany. One example of engagement in the area of environmental protection is the recultivation of the region around the desiccated Aral Sea; the Deutsche Gesellschaft für technische Zusammenarbeit (GTZ) is one of the parties involved here.

Participants

Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ Kazakhstan
http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien/654.htm

Chamber of Foreign Trade
http://ahk.de/en/ahk-locations/kazakhstan/#c2463

European Business Association of Kazakhstan
http://www.eurobak.kz/indexfull.php

Friedrich-Ebert-Stiftung - Auslandsbüro Kasachstan
http://www.fes.de/international/moe/in_moe/kasa.htm

Company examples

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas

 

Source: German Embassy, Astana

Data & facts

Country: Republic of Kazakhstan
Capital: Astana
Area: 2,724,900 km²
Population: 15.4 million inhabitants (January 2007)
Economic system: Centrally planned economy with some free-market components
Polity: Presidential republic
Unemployment rate: 7.3 % (2007 est.)
Inflation rate (CPIX): 10.8 % (2007 est.)
GDP: 103.8 billion USD (2007 est.)
GDP/Head: 11,100 USD (PPP, 2007 est.)
Religions: Sunni Islam (Hanafi), Russian Orthodox, Catholic and Evangelical Christian, Jewish
HDI: 73rd of 177 (2007/2008)
CPI: 150th of 179 (2007)
BTI: Status Index: 68th of 125, Management Index: 76th of 125 (2008)

Further links