MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE

SUMY STATE UNIVERSITY

Department of International Economic Relations

CONTROL WORK

on the subject "Social responsibility in international economic relations"

on the topic:
“General Characteristics of Social Responsibility in the company:
KYIVSTAR”

Student 3rd Course _____________ T. Perederii

group IE-72a

Lecturer: PhD, senior lecturer _____________ O.Kotenko

Sumy, 2019
 Chapter 1 Business Overview

The largest Ukrainian telecommunication operator providing communications and data

services based on a broad range of mobile and fixed-line technologies, including 4G. Company's
customer base amounts to over 26 million in mobile and around 820 thousand in broadband
internet.
Kyivstar is a part of VEON, one of the world's largest integrated telecommunications
companies, headquartered in Netherlands. The holding company owns telecom assets in the CIS
countries, Europe, Asia, and Africa, and its shares are freely traded on the stock exchange
(NASDAQ).
Kyivstar has achieved big success thanks to investment into development of its own fiber-optic
network which is an important link in the traffic exchange between Europe and Asia, and it is a
reliable partner of Ukrainians in the connection with the other countries of the world. The company
provides roaming services in 195 countries on 5 continents.
As of December 2017, "Kyivstar" serves more than 26 million subscribers. The Kyivstar
network covers all big cities and small towns, more than 28 thousand rural settlements, all main
national and regional highways, majority of sea and river coasts, providing coverage of the
territory, where 99% of Ukraine's population lives. 3G Kyivstar network is available in over
10,000 settlements, where over 80% of the population of Ukraine lives.[11]
As of December 2017, the share of Kyivstar in the mobile market was 47.9% in subscribers, and
47.8% in income. Kyivstar GSM provides communication services throughout their coverage, as
well as roaming in 195 countries on 5 continents. The company also provides services to more
than 800 thousand users with access to broadband Internet on the basis of FTTB. A broadband
Internet access service ("Home Internet" service) operates in 138 cities of Ukraine.

Headquarter is located in Kyiv.

Majority shareholders

The company is managed by a Board of Directors, which includes:

 Oleksandr Komarov, President

 Valentin Neacsu, a citizen of Romania. Technical Director.

 Henrich Daubner, a citizen of Slovakia. Financial Director.

The organizational structure of the company allows you to identify the main areas of influence and
formation of competitive strategy of the company.
The staff of Kyivstar employs 120 people. Management is carried out by a set of units specializing
in the execution of specific types of work, where the specialists of one profile are combined into
certain departments, namely: marketing department, finance department, logistics department
(warehouse and delivery of goods). Each unit has its head: Finance Director - Accounting,
Marketing Director - Marketers, etc. All departments are interconnected and subject to the CEO.
Thus, it is possible to determine the structure of management of the company - linearly-functional

Section 2 Corporate Social Responsibility

Company’s mission
The company's mission is to improve lives by providing the highest quality
telecommunication services. Kyivstar activity is subordinated to the key idea of Big Customer
Care, which is based on three values: simple, innovative, better. Vision - to be the best company
of Ukraine, worthy of the highest trust.

Caring for employees

Only the Company whose team members are able to exceed their personal opportunities
every day can dynamically move towards success. This movement will be much faster if the
company helps every employee to discover and develop his existing opportunities to full extent.
Constant uninterrupted learning is a philosophy of Kyivstar.

The company has over 4,200 employees. According to the survey of Ukraine’s best employers,
conducted by Ernst & Young in 2010, Kyivstar is acknowledged to be the best place of
employment.
Kyivstar invests in its employees through training and developing the necessary
competencies, as well as takes care of social security of its staff, provides a high level of salary,
motivating work environment and jobs that comply with Ukrainian law on labor protection.
Kyivstar builds its team only with best experts. Kyivstar’s system of remuneration provides its
every employee with competitive and fair income. The level of Kyivstar team members’ salaries
is one of the highest in Ukraine. The Company evaluates performance of every employee annually.
According to the results of such evaluation the company may reconsider the salary rate and
determine annual bonus. In addition, the company has a system of incentives and additional social
guarantees, including health insurance program, accident insurance, accumulative retirement
savings, targeted financial aid, service cell phone, the Mobile Family service, travel warrants of
the Social Insurance Fund, individual compensation package, etc.

Educational and motivational programs of the company deserve particular attention. Talent
development program named “Argentum”, as well as the “Employee of the Year” competition
provide additional opportunities for professional and career development and contribute to shaping
a comfortable atmosphere in the team. The IVC project is unique in its essence. It aims at
encouraging employees to express their vision of the future Kyivstar, along with sharing
interesting creative ideas and participating in strategic development of the company.
Since 2008, Kyivstar actively develops volunteer activities, involving employees in social
and charitable activities of the company. Currently, Kyivstar’s volunteer activity is presented by a
15% share of volunteer workers throughout Ukraine who invest their time and efforts in improving
the lives of those who need help. In four years the company brought to life more than 20 social
projects with the participation of its employees. The “Kyivstar’s Volunteer Activity” campaign
won the HR-Brand of Ukraine 2011 award.
Kyivstar decisions regarding limiting the access for under-age users to the illegal and “adult”
content:

 voluntary renunciation of placing and selling “adult” content at company’s wap- and web-
resources (erotic, gambling, alcohol and tobacco advertisement; total market volume of
this content in the world totals 30%);

 renunciation of carrying out gambling projects — SMS-quizzes (operator’s revenue from

one such project figures up to several millions dollars);

 collaboration with the Ministry of Internal Affairs of Ukraine regarding online illegal
content interdiction. For this purpose a special procedure for detecting and eliminating
pornography from the Internet was worked out and implemented.

 implementation of special contractual requirements for the realization of “adult” content

by Company’s partners — content-providers.

 Kyivstar has signed a "Memorandum on cooperation in the implementation of the Code

for the Protection of Cruelty to Children on the Internet and online resources".

By signing this Memorandum the company confirms its readiness to work towards protecting
children from information that could harm their moral health, and sometimes is life-threatening.
The company is consistently taking a number of measures to prevent mobile fraud and inform the
public about all aspects of mobile communication in the framework of the program named “Mobile
Communication and Human Health.

The Children's Hope

Project the Children's Hope initiative, which Kyivstar is launching with the International
Charitable Foundation Ukrainian Charity Exchange (ICF UBB). Now customers of the largest
Ukrainian mobile operator can transfer funds to charitable affairs via SMS-messages.
It is easy and simple to help children who need special attention — every Ukrainian can do
this by sending a charity SMS. Children with heart defects or oncological diseases that are being
treated in Ukrainian medical institutions need help.
The funds' customers donate via SMS are not burdened with taxes. 100% donations are credited
to UBB for project implementation. The Fund itself purchases all the necessary materials for
hospitals, so you can be sure that the funds will be used by appointment. Reports on the use of
funds can be found on the ICF UBB website here.

Search for children

On August 30, 2017, authorized representatives of Kyivstar and the National Police of
Ukraine signed a Memorandum of Cooperation under which the joint social service “Finding
Children” is being implemented.
Searching for Children is a newsletter from Kyivstar aimed at assisting the National Police of
Ukraine in the search for missing children. At the request of the National Police, Kyivstar will
send SMS messages to subscribers who may have witnessed the disappearance and may provide
law enforcement with information that could help locate the child.
Educational Initiatives
There had been organised summer after-school camps in 19 regions of Ukraine where
participated more than 2000 teens from 75 schools. In the framework of the GoCamp project
teachers and the high school students have passed interactive study in English. They had been
studying Entrepreneurship&Innovation development and watching educational videos about the
Internet of Things, mobile applications development and how to create presentations.
Kyivstar workers had been communicating with children and helping them to use new knowledge.

The GoCamp project has won in National competition of corporative social responsibility
projects, which has been organised in the framework of achieving the UN Sustainable
Development Goals for providing equal and quality education.
The GoCamp project also has gotten a silver award in the category of Best Social Projects
according to Telecom Awards 2018.

Ukrainian Festival of Innovation

Kyivstar became an official partner of Ministry of Education and Science of Ukraine in
Ukrainian Festival of Innovation 2018.
The company gave expert esteem in the competition of Ukrainian star-ups. Kyivstar awarded the
six best new companies with the amounts of money which are equal to the spends for start-ups'
innovation projects.
The Children's Hope

Project the Children's Hope initiative, which Kyivstar is launching with the International
Charitable Foundation Ukrainian Charity Exchange (ICF UBB). Now customers of the largest
Ukrainian mobile operator can transfer funds to charitable affairs via SMS-messages.

It is easy and simple to help children who need special attention — every Ukrainian can do this by
sending a charity SMS. Children with heart defects or oncological diseases that are being treated
in Ukrainian medical institutions need help.
The funds' customers donate via SMS are not burdened with taxes. 100% donations are
credited to UBB for project implementation. The Fund itself purchases all the necessary materials
for hospitals, so you can be sure that the funds will be used by appointment. Reports on the use of
funds can be found on the ICF UBB website here.

Conclusion
Based on research, we can conclude that Kyivstar is a leader in mobile communications,
operating in the Ukrainian market for 22 years. At the same time, the company is a leader in
innovation in the field of telecommunications, as well as one of the best employers and most
socially responsible business entities in Ukraine.
As a national company created by Ukrainians for Ukrainians, Kyivstar is constantly
implementing initiatives aimed at building a culture of mobile use, promoting safe internet use for
children, actively participating in volunteer programs, promoting healthy lifestyles, promoting
education in Ukraine, as well as realizes projects to support and develop reading, develops
multimedia resources and projects aimed at nurturing patriotism, implements a number of
environmental initiatives, actively promotes development of their employees