Rostelecom. Corporate Responsibility.

Principles of corporate social responsibility

Rostelecom regards corporate social responsibility (CSR) as one of the key principles of its activities.
The Company strives to do business honestly and openly, complying with ethic norms, and aims to balance its corporate interests with wishes and needs of all parties concerned and make weighty contribution in the social and economic development of the regions where it is active and the society in general.

Rоstelecom is Russia's national telecommunications operator. The scope of the Company's business brings about its high social significance. Every day we improve the life of millions of people: we expand educational opportunities, help them meet their demand in communication and development of their own business. The principle of social responsibility is an integral part of the Company's strategy. Rostelecom takes strategic and operational decisions taking into account social, ecologic and other possible consequences which confirms the Company's strive for sustainable development. Such approach to business management is utilized not only by Rostelecom corporate center, but by macroregional branches as well. The basic principles of Rostelecom's social responsibility are:

• strict statutory compliance;
• responsible partnership with the state;
• corporate governance up to world standard;
• optimum efficiency and innovation in business;
• high quality of products and services;
• consideration to colleagues, their motivation and occupational level growth;
• openness and transparency of all activities;
• intolerance to corruption;
• environment protection;
• cooperation with social institutions;
• encouraging the social progress of society.

Rostelecom's corporate social responsibility is focused on internationally acceptable standards in this sphere, specified in the United Nations Global Compact, the Social Charter of Russian Business, recommendations of the Global Reporting Initiative (GRI).

   To the benefit of the whole country

Оne of the strategic and also socially important tasks of the Company is to make digital technologies available for as many people in our country as possible regardless of their age, material wealth or residency. Today the level of informatization becomes a key factor of competitive ability of a state and society, so it is important for us to ensure high-speed Internet access in remote areas of Russia and in small towns and villages.

We possess all necessary technologies and infrastructure to provide to Russian people equal opportunities for communication, education, remote use of services provided by government agencies and businesses. We are convinced that technologies change life for the better. Besides bridging the digital gap we actively invest funds in creation of innovative products and services which significantly facilitate our everyday life. We believe that potential for optimization of such spheres of social life as education, provision of public services, housing and utilities and social service is simply inexhaustible. That is why today Rostelecom introduces new technologies in these areas, which in the long view will start to play an important role in public life.

   To the benefit of our customers

The interests of every customer are as important to us as the interests of society in general. It is essential for us to be able to provide targeted response to users' requirements and ensure high level of service quality. A simple and convenient way of using services, a possibility of quick solution of problems and prompt receipt of consultancy support at any time and through different channels are our priorities in this field. We run a customer-focused business taking into account the best industry practices to be able to remain the best choice for our customers for many years.

   Our employees as the core value of the Company

In our aspiration to run successful business and provide benefit for society we fully rely on our employees. We appreciate professionals, creative experts focused on constant development and achievement of a result. That is why the Company constantly works on creation of comfortable and secure labor conditions, introduces effective instruments of development and motivation and supports a dialogue between the personnel and the management.

We understand that a team is a key factor of Rostelecom's competitive ability, so we want to become an attractive employer in the telecommunications industry.

   Cоrporate governance

Quality of management plays a critical role in Rostelecom business. Taking into account the Company's level and its social and economic role it is essential for us to be able to take timely and well-considered management decisions meeting the interests of stakeholders and to exercise constant control over the quality of their implementation and the risks.

Gradual development of a system of corporate governance is one of Rostelecom's top targets. The Company's system of governance is based on the best Russian and world standards. We follow the modern practice of management and disclosure of information which allows to create an atmosphere of trust and confidence among all parties concerned and enhances the effectiveness of taking management decisions. Rostelecom's system of corporate governance is based on the Code of Corporate Governance and the Code of Ethics centered around the following principles:

• adherence to the rights and interests of shareholders and ensuring a long-term rise in the value of shares in their possession by way of improvement of corporate practices and enhancement of the openness and transparency of information;
• ensuring a transparent and efficient mechanism of cooperation between the Company management bodies and scrupulous performance by them of their duties in compliance with the high standards of corporate governance and business ethics;
• maintaining an efficient system of internal control and audit of the Company;
• аctive cooperation of the Company with people who are interested in ensuring long-term and sustainable development of Rostelecom.

   Environmental policy

We count ourselves responsible for protection of nature for future generations and use best endeavors to enhance the energy efficiency of business and reasonable use of resources.

Provision of communication services and transmission of information do not virtually affect the environment. The sources of small pollution include waste from Rostelecom offices, car exhaust emissions, discharges of pollutants into waters. Besides, construction of communication networks slightly affects natural landscapes and soils. Despite that, to prevent any changes in the environment and preserve a very rich nature of our country the Company constantly enhances techniques of control over environment impact, strictly regulates activities related to the use of resources, introduces new standards of environmental safety.

   Social projects

Historically Rostelecom is deeply integrated into the life of Russian society. That is why social projects are a very important part of Rostelecom's social responsibility.

We are convinced that Rostelecom's social role should be a continuation of its business. We contribute to the development of society using our skills and resources in telecommunications to assist in solution of the most urgent and сritical social problems.

The Company believes that its mission does not only consist in provision of high-quality services for its customers, but in rendering assistance in development of local communities in regions where it is active and helping to shape a stable social environment and improve the quality of life in the country.

Rostelecom carries out many projects intended to support education, development of sports and culture. It provides assistance in health care and solution of social exclusion problems.