Innovation

A unique feature of the business is the innovative business model of the enterprise, which allows the colony to determine the ways and methods of commercialization and provide for the internal system needs. The innovative business model allows the colony to maintain competitiveness through the installation of high supplies and low prices.

In addition, the convicts employed in the workplace necessarily receive education, which allows the colony to maintain the required level of production quality as well as implement the fourth goal of sustainable development, “Quality education”. The convicts receive guaranteed wages, and the qualifications they get as they work are a tool for their further socialization after the end of the sentence. The possibility of obtaining education and qualifications is aimed at realization of two goals of sustainable development: “Reducing Inequality” and “Decent Work and Economic Growth”. The clothes, which are produced in the workshop in large quantities, are sold through government and commercial orders as well as through a retail store to individuals.

Deputy head of the colony said, “the convicts sew for themselves and for the provision of the intra-system needs, and now they also for the state system. But, I repeat, commercial orders are also possible.”

At the same time, the functioning of the business model is backed by the state guarantees. The deputy head of the colony also claims, that according to the Federal Law No.44, penal institutions have a priority when receiving state orders., “This is the Federal Law of the Russian Federation “‘On the contract system in the field of procurement of goods, works, and services for state and municipal needs’”. Conventionally, there are several categories of institutions that get priority contracts from the state. Our institution belongs to one of these categories.”

Accordingly, the presented business model is a self-sufficient system necessary to maintain the life of the enterprise. The funds received from the sale of the goods are allocated to the internal system needs: remuneration of the convicts employed in the production of workwear, improvement of the working conditions, modernization of the production.

Thus, the production and trading activities are aimed at achieving the goals of sustainable development and at the same time are a necessary condition for the operation of the enterprise.

Inspiration

The idea to open a shop to sell the workwear produced by the convicts arose in 1970, when the construction of new facilities began in the colony. Initially there were just wooden huts, – a small garment industry, which was sewing garments exclusively for the needs of convicts. Intensive construction began in the mid-1970s: comfortable dormitories for the convicts and a modern garment factory were built. At the same time, staff houses were built, and in the late 1980s a modern infrastructure of the institution was created.

When modern manufacturing equipment appeared, it became clear that it was possible to open an entire production. To improve the quality of products, the management of the colony decided to open a vocational institution. Here the convicts received basic knowledge of sewing, as well as a sewing qualification and a diploma of education.

So, qualified specialists began to work in the workshop, not only providing clothes for themselves and the internal system needs but also fulfilling government and commercial orders and receiving wages for this. The profit from the products sold was spent on improving the colony and ensuring decent living conditions for the convicts.

Overall impact

The conditions created in “Penal colony №32”, as well as the working practice of convicts, have a significant positive social impact both on the future life of the convicts themselves and on the living conditions of the marginalized sections of society. “Penal colony № 32” understands the importance of education and provides an opportunity for the convicts to study in specialized educational institutions.

All convicts are trained in vocational technical schools, after which they receive a diploma with a qualification assigned to them and only then they sew clothes for state and commercial orders.

The received education allows the convicts to work in the workshop located on the territory of the colony. This labor has a corrective function, which is an extremely important aspect of the convicts’ life. According to the legislation of the Russian Federation, any work must be paid. The convicts receive a wage for their work equal to the minimum wage established by the state. “The minimum wage is guaranteed for all citizens of the Russian Federation. I repeat – for all. And according to Article No.105 of the Penal Code of the Russian Federation, ‘The wage rate of convicts who have completed a fully determined monthly standard of working time and have complied with the norm established for them cannot be lower than the established minimum wage’,” the deputy head of the colony said.

It is also important to note that the work of the convicts brings the colony financial resources which are used to create decent jobs, improve working conditions with modern equipment, and pay the convicts wages, which they manage independently.

Finally, it should be noted that socialization of convicts after their release from prison is an important point.The conditions that are created for the convicts are aimed at facilitating their socialization, which is consistent with the sustainable development goal to “reduce inequality”. Getting a qualification in the colony contributes to socialization of former convicts and helps them find a job and return to a normal life. Moreover, all convicts receive wages, which ensures their equality with the other employed citizens.

Business benefit

The colony sells products to the government and commercial structures. The products are sold in the store “Vesna”, which is located in close proximity to the colony. The sale of the products is the main source of profit of the colony. The store brings additional benefits and profit to the correctional institution, allowing to sell the products that are left after the sale of a bulk quantity of goods. All financial resources received from the production and trading activities of the colony go to meet the intra-system needs of the colony, allowing to constantly improve the conditions of detention of the convicts, modernize the production equipment and generally take care of the workers in the colony. “Of course, we are modernizing production. Now is not the time of the USSR: we have all electrical equipment, comfortable workplaces", the deputy head of the colony said.

It is necessary to note the creation of additional workplaces, which contributes to the greater employment of the convicts. Thus, the creation of high-quality jobs by the colony, the improvement of working conditions and the possibility of employing people in places of deprivation of liberty is in line with the sustainable development goal to promote decent work and economic growth.

Social and environmental benefit

The idea to open a shop and sell products to commercial and government structures, as an innovative business model of the colony, contributes to the implementation of such sustainable development goals gender equality, quality education, as well as decent work and economic growth. Granting of the right to education is realized through compulsory training of prisoners in a vocational technical school in cutting and sewing, after which they receive an education certificate.

The obtained education not only gives the convicts a chance to be employed while serving a sentence, but also lets them acquire professional skills, get a certain experience and find a better job after the release.

By providing workplaces, the correctional institution gives the prisoners a chance to get back to normal. That is, this way the colony helps the convicts to find their place in society, find a job and a home. Technical education increases the chances of prisoners to find a decent job. As the deputy head of the colony noted, “when the term ends and people leave the colony, it is very important for them to socialize, but this is a difficult stage in their lives. You know how the society treats former convicts. Not many people manage to work. Therefore, the education received in the colony helps further socialization of the former convicts, helps them to integrate into society and find a job.”

Providing jobs to convicted women, providing them with an opportunity to receive education when they are in prison corresponds to the sustainable development goal to ensure gender equality and extend the rights of all women and girls.

An indirect purpose of the store is to change people’s attitude to former convicts. It might reduce the number of violations of the rights of former prisoners and unfair treatment on the part of employers. Thus, the colony helps such a marginal group of the population as former convicts and contributes to the achievement of the sustainable development goal to reduce inequality.

Interview

Shestakov Dmitry Yurievich, Deputy Head of the Colony