Ethics, Responsibility and Decision Making By Khashimova Shahlo

Ethics, Responsibility and Decision Making”

By Khashimova Shahlo

Student ID:19/1/0398/522

Introduction

Business structures make an unquestionable contribution to society's progress, and this positive contribution becomes much more substantial when a company takes on social and environmental responsibilities to its employees and society. Taking on these obligations may appear to be a daunting task, but you can begin by supporting worker ideas and interests, or by assisting your native mahalla (a community leadership structure managed by a council of respected elders; Uzbek 'neighbourhood'). CSR's importance in attaining corporate success is expanding now more than ever. More businesses are adopting social and environmental policies and norms, as well as being accredited and audited for compliance with international standards and publishing yearly CSR reports. Multinational firms are learning to meet the growing demands of all stakeholders around the world. Special journals dedicated to the development of CSR have lately appeared (The CSR journal, 3BL, Triple Pundit).

Lawrence Fink, Chairman and CEO of BlackRock, a worldwide investment management business, recently spoke to CEOs about the importance of CSR in investing decisions. He stated that organizations with the finest Environmental Social Governance (ESG) would beat their competition by drawing investor interest in 2020. Business structures must contribute to the growth of society in addition to producing a profit by safeguarding the rights of their employees and fulfilling their commitments to all stakeholders, thereby helping to solve social problems. Due to their responsibility for social protection and the realization of employees' rights, corporate structures that practice CSR principles attract investors and win public trust, improve their reputation, and so attract new loyal customers and highly qualified staff. Isn't that fantastic? But it isn't that easy! Successful CSR projects require careful preparation, leadership, and correct and effective communication skills, as seen by experience.
CSR isn't the same as philanthropy. Unfortunately, some dishonest businesses employ CSR merely to benefit themselves. Surely, readers are familiar with terms like "whitewashing" and "greenwashing," as well as "green PR," which relate to firms' attempts to deceive customers by convincing them that their products, services, or working methods are socially and environmentally acceptable. In truth, the corporation has failed to develop sufficient policies and standards.
However, some businesses misunderstand the fundamentals of CSR. CSR is not the same as charity or touching ads in which a corporation donates gifts to children with disabilities or arranges a vacation for them. According to a poll of Uzbek enterprises, a substantial portion of our country's businesses see CSR through the lens of charity. Some entrepreneurs' actions are motivated by religious or philanthropic objectives. Some people strive to replicate other organizations' CSR policies in their work after hearing about them.

In many situations, businesses in Uzbekistan apply CSR concepts such as caring for employees, providing them with specific social benefits, paying taxes, and according to the norms and regulations. At the same time, businesses provide orphanages, retirement homes, and other institutions with charitable donations. It's fascinating to note that firms don't try to monetize their CSR efforts, instead offering assistance to those in need without even advertising it. Businesspeople engage in these actions entirely as an internal impulse, which resembles what western firms are discussing today: internal responsibility. In Uzbekistan, however, financial and social obligations take precedence above environmental responsibility. There is a lack of responsibility if not for certain modest mandatory taxes that do not even cover the actual harm done. Not all firms are aware of the environmental damage they are generating via their operations. In the majority of commercial activity, it is almost never measured and audited.

Furthermore, CSR efforts in Uzbekistan are not driven by stakeholder pressure, but rather by the owners' personal interests and behaviors, as well as government pressure. Only by teaching people about their power to demand responsibility from businesses will this problem be resolved. The following are the challenges to growing CSR in Uzbekistan, according to studies:

the local population's mindset Local people's mentalities and cultural differences can sometimes be a hindrance to implementing certain sustainability initiatives. Businesses' rules, regulations, tax laws, and legislation are perplexing, and there is no transparency. The lack of a strong rule of law fosters corruption in the country, forcing enterprises to conceal their genuine earnings.

Because the government provides limited support and encouragement, firms have little incentive to openly engage in CSR initiatives.
There is no demand from stakeholders, which might be the primary motivator for corporations to engage in CSR.There is a scarcity of information on how to conduct responsible business and promote sustainability, as well as a scarcity of professionals with the necessary skills and knowledge to educate firms and push for them to become more sustainable and socially responsible.
Businesses are hesitant to publicize their excellent works. Many Central Asians find it unpleasant when others boast about their gifts and charities.
Although there are various other barriers to implementing a true triple bottom line approach, I believe that CSR and responsible business have a bright future in Uzbekistan. The following are the reasons for this: strong cultural inclination and historically developed way of doing business, which encourages helping the poor; the country, which has a literacy rate of 99.3 percent (Transparency International, 2015), can achieve outstanding results in advocating CSR and creating a positive environment that motivates businesses to become responsible entities; the country is opening up and attempting to tackle several issues with great success: for example, in order to meet international standards. To protest child labor, a number of western corporations, including Disney, H&M, Gap, Walmart, Target, Tesco, Levis, Nike, Fruit of the Loom, C&A, Marks and Spencer, Bed Bath & Beyond, and Timberland, ceased using Uzbek cotton. The International Labour Organization (ILO) just issued an official study stating that there is no child labor in Uzbekistan; Uzbekistan has begun to cooperate with the European Bank for Reconstruction and Development (EBRD) and the World Bank to enhance the economic climate in the country.

Company example:

GKD (www.gkd.uz) is a joint company between KOMSCO and POSCO International that employs approximately 300 people. GKD is Uzbekistan's largest cotton pulp factory, exporting 99 percent of the products made from Uzbek cotton to overseas markets in more than ten countries. It should be highlighted that cotton pulp generated by GKD accounts for more than 40% of overall exports from the Republic of Uzbekistan to the Republic of Korea. That is, the firm plays a significant part in the two countries' mutually beneficial commercial relations. GKD collaborates with KOMSCO on philanthropic initiatives for Uzbek children and youth every year and will continue to contribute to the country's social development.

GKD's CSR for 2021

While extending its social activities focused at children and students, the Yangiyul GKD Training Center is actively trying to establish an atmosphere in which we may develop together, instilling real hope and assisting the many classes of the local community. As part of this, GKD is helping to cultivate local talent by giving educational computers to the newly constructed Yangiyul Training Center, which will help Yangiyul personnel enhance their abilities, as well as improving GKD's potential to recruit talented people. An amateur football team in Yangiyul was given a new kit with the "GKD" insignia because they were unable to find sponsors.Company hopes that by providing the essential support to athletes in difficult situations who are working hard for the local community, they will be able to strengthen their ties with the community and improve our corporate image.They intend to uncover numerous social events in the fields of sports, culture, and art in the future as a firm representing the local community.

Another example could be K-water company .Since its founding in 1967, K-water (Korea Water Resources Corporation) has been engaged in the development of water resources in the Republic of Korea and around the world, the construction and management of water facilities, as well as the creation of industrial complexes and new cities. Aiming to become the world's best integrated water platform company, the company has made every effort to fulfill its public function in the field of water management, the purpose of which is to provide basic solutions to the industry. Recently, frequent floods and droughts caused by the climate crisis, increased demand for quality water and environmental improvement, and imbalances in water wealth across regions require more innovation in water management. Based on the fundamental values ​​- integration, security, trust - the company provides the highest level of water management, and conscientiously implements the UN Sustainable Development Goals (SDGs, Sustainable Development Goals) to eliminate social inequality

At the beginning of 2021, K-water established a project team in Uzbekistan to solve the problems in the country's water management through the application of advanced Korean technologies. Currently, they are working to develop the water sector in Uzbekistan, implementing projects such as the project to modernize obsolete pipes in Tashkent, the modernization of the water supply system in Angren and the project for the development of water supply infrastructure in western Uzbekistan, as well as conducting trainings to increase capacity for local water workers.
In the future, K-water will play a leading role in the development of the water sector in Uzbekistan, spreading advanced Korean know-how in the field of water management. Provision of educational equipment and scholarships for children with disabilities of the integrated educational school in Angren
In order to improve the educational environment for the underprivileged in Uzbekistan, K-water provided educational materials such as desks, chairs and sewing machines to a school for children with disabilities located in Angren. Scholarships were also provided to improve the education of underprivileged students. The school supplies and scholarships donated this time are even more important as K-water Corporation executives and employees volunteered to raise funds to support them. individual desks and blackboards, as well as an environment for independent learning of students with disabilities. In the future, K-water plans to continue its social contribution to improving the educational environment in Uzbekistan so that children can learn in a better atmosphere. Providing funds to combat COVID-19
As part of its charitable activities, K-water provided Covid-19 protection and prevention equipment: medical masks, hand sanitizers, thermometers and thermal imaging cameras to Uzbekistan’s water industry workers, such as the Ministry of Water Resources and Uzsuvtaminot, who are working hard to overcome the crisis despite difficulties associated with the COVID-19 pandemic. The company doing our best to protect the health of employees despite the difficult circumstances of the re-spread of COVID-19 around the world, and we hope that we can provide better water services to the people of Uzbekistan. Going forward, K-water will continue to work with Uzbekistan to overcome the pandemic crisis.
To improve CSR in Uzbekistan, the following steps could be taken:

The government should offer certain incentives and support those enterprises ready to engage in CSR. The government should set standards and principles to encourage enterprises to participate in CSR activities. In addition, the government should play an important role in promoting CSR.

Regular education and advocacy should be practiced (lectures, seminars, briefings, interview in mass media). The concept of CSR and its evolution in the context of the country should be researched and published. Developing CSR strategies in line with the current economic situation, traditional customs and religious beliefs, as well as the principles of transparency, social responsibility, and accountability in front of stakeholders, will improve the overall efficiency of businesses in Uzbekistan, improve predictability and sustainability, and help them attract foreign investors, all of which will benefit the country's economic development.
Genuine CSR will help businesses to not just meet the philanthropic requirements of their owners, but also to genuinely comprehend what it means to be a responsible business in every sense and reap the benefits.
Practice: Consultancy services should be formed to guide and encourage enterprises to engage in CSR, involving all stakeholders, including government agencies, legislators, public-private advocacy groups, activists, and customers.

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  References
  
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  https://dilmurad.me/social-responsibility-of-business-how-should-it-be-in-uzbekistan/
  
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  https://tashclinic.org/csr-initiative-green-tashkent/
  
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  https://understandingresponsibility.wordpress.com/2018/03/05/insights-on-csr-in-uzbekistan/
  
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  https://www.iahr.org/org-center/user?id=85174
  
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  http://gkd.uz/