Innovation

The United Metallurgical Company enterprises are located in monotowns. One of the directions of OMK’s corporate social responsibility policy includes development of these local communities and stakeholder involvement in solving local social issues. That is why the company has launched the program “Start Your Own Business” that facilitates the development of social entrepreneurship. Its focal point is to contribute to solving social problems by boosting the levels of regional social and business activity and to mitigate social tensions in monotowns and villages where OMK operates.

In 2016, the “Start Your Own Business” program was implemented in Chusovoy (Perm Krai). In 2017, due to the overall success of the program, the monotown Blagoveshchensk (Republic of Bashkortostan) joined the program. In 2018, the program was replicated in Vyksa (Nizhny Novgorod Oblast). The total budget for each monotown is up to 3 million roubles. The maximum amount of the project grant is 200 thousand roubles.

The program consists of several modules. The first one is training. For those who aim to shape their idea into a working business model, workshops on social project management, marketing, business planning, sales, social media marketing, crowdfunding are held over a span of 2 months. After training, the participants present their projects to the expert council. Grant support is provided to those participants whose projects are aimed at solving local social problems, at improving the quality of life of the regional population and /or its socially vulnerable groups. The main criterion for grant approval is whether the socially-oriented activity gets self-sustainable after the implementation of the declared business plan. The third module is an acceleration program: participation in it provides the necessary knowledge and experience to launch a social project. Under the guidance of certified expert trainers, participants gain new knowledge in business modeling, marketing, project management, personal branding, and get acquainted with tools to support social entrepreneurship. They can also receive advice from the best business experts in the region.

Inspiration

OMK operates in a cyclical industry, which makes the company sensitive to the business cycle and general economic situation. OMK’s facilities are located in monotowns, where more than 50% of the population are OMK’s employees. This means that social life of the cities and local communities depends mostly on the company. Besides, single-industry towns are not attractive enough for the younger generation as not everyone wants to work in the metallurgical industry and such cities have little other opportunities for self-actualization. That is why OMK, being a socially responsible business, aims to solve the above mentioned problems.

The goal of the grant competition “OMK-Partnership” is to support the third sector and to involve state and municipal institutions and employees in social and volunteer activities, to support local communities and socially vulnerable population.

The social entrepreneurship program “Start Your Own Business” was launched in order to involve small businesses into solving acute social problems in Chusovoy monotown (Perm region). When the first results of the program exceeded all of the expectations, the decision was made to expand the program to other cities where OMK operates.

As Olga Mironova, mentions, “Not only does the “Start Your Own Business” program create services for the residents of the monotowns, but also jobs, including jobs for people with disabilities. It also contributes to the development of local communities. The improved infrastructure helps solving ongoing issues and attracts the needed resources independently”.

Overall impact

On the 25th of September 2015 the UN members adopted the 2030 Agenda for Sustainable Development. It contains a number of goals aimed at eliminating poverty, preserving the resources of the planet and ensuring well-being of all the people. Each of the 17 Goals contains a series of indicators that have to be achieved within 15 years. The “Start Your Own Business” program is consistent with SDG 11 (“Sustainable cities and communities”) and SDG 17 (“Partnerships for the goals”) .

During three years, OMK has supported 88 social business projects. The program proved its efficiency: more than 160 jobs were created, its budget amounted to 18 million rubles, and the program can be easily replicated in other Russian cities. The implemented social projects cover such areas as education, family leisure, employment of people with disabilities and assistance to those who need special social protection. The company is proud of four projects that have been implemented by people with disabilities.

For example, in the city of Blagoveshchensk in Bashkortostan there are three such projects: the “Rada”, a children's massage center opened by Rada Fattakhova, the health center “Vo Blago”, by Ruslana Shaikhullina, the largest salt cave in the region, and the “Healthy Family” center by Anastasia Gazizova. All of these social entrepreneurs are visually impaired. In Vyksa, the social entrepreneurial project “Sunflower” has been launched. The project is being implemented by the nonprofit organization "Edelweiss" from Vyksa. Its main task is to provide employment to people with disabilities. The goal of the project is production of souvenirs from used items, rags and recyclables. Currently, nine people with disabilities are engaged in this project.

Business benefit

The company makes efforts for creating comfortable life conditions in the cities of its operations. At the same time, corporate social responsibility programs contribute to improving corporate image. Moreover, company's activities have been awarded both at the regional and federal levels.

The program "Start Your Own Business" is implemented in partnership with the key players of social entrepreneurship development: OMK enterprises, regional centers of innovations in the social sphere, local administrations and ministries, and last but not least, the foundation of regional social programs "Our Future".

Thanks to the program, participants develop their business planning, sales, and marketing skills. As a result, their projects become profitable and sustainable. What is more, some of these projects are winners of the federal and local competitions.

Speaking about the grant competition of social and charitable projects "OMK-Partnership", it is also implemented in partnership with the local administrations, regional ministries, resource centers for socially oriented nonprofits and local businesses. Thanks to this grant competition, non-profit organizations, state and municipal institutions and employees, who decided to make their volunteer project, acquire actual skills in social design, fundraising, crowdfunding, promotion in the social media and so on.

Social and environmental benefit

In the framework of the grant competition “OMK Partnership”, around 306 social projects have been implemented in the cities of OMK operations from 2015 to 2018 (184 by nonprofit, state and municipal institutions, 122 by volunteers). Besides the grant pool of 56.7 million rubles, additional funds have been raised in monotowns by NPOs and active citizens from various sources (presidential grants, fundraising for Planeta.ru, and co-financing from other sources).

In 2017, OMK with the CAF Foundation conducted an assessment of the socio-economic impact of the projects, that were implemented during the “OMK Partnership” competition over the past three years. Results showed that for each ruble invested by the OMK, the value of the social returns obtained amounted to more than three rubles. The company also received a number of recommendations for improving the grant competition.

The social entrepreneurship development program “Start Your Own Business” positively transforms the environment of monotowns. The quality of life is improving. Thanks to social entrepreneurs there are new entertainment services available to local population, which have never been there before, or health centers, which children need. The most tangible results of the project are new jobs created. In addition, the socially vulnerable population is involved in the “Start Your Own Business” program. Thus, urban environment becomes more inclusive, which is consistent with SDG 11.

Interview

Olga Mironova, Head of Corporate Social Responsibility department AO “OMK”