Annual report 2013
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Glossary

Safe working conditions — working conditions in which workers are not exposed to harmful and/or dangerous workplace factors at all or the level of their exposure does not exceed the specified standards.

Charity work — voluntary work involving non-profit (gratuitous or on preferential terms) transfer of property to citizens or legal entities, including money, free performance of work, rendering of services, providing other support.

Vesting — the right of employees to receive various payments from funds created mainly from employer contributions (for example pension payments); offered to employees who have worked for the Company for a certain period of time.

Collaboration with stakeholders — the Company’s efforts to identify the expectations and concerns of its stakeholders and involve them in decision-making.

Global Reporting Initiative (GRI) — an independent organisation that develops and disseminates globally applicable Sustainability Reporting Guidelines.

Stakeholders — physical and legal entities or groups of entities that have an interest or concern in the company or are influenced by its activity, have an impact on the company’s managerial decision-making, and, in turn, are impacted by these decisions. Stakeholders include the company’s shareholders, investors, employers, suppliers, contractors, consumers, trade unions, and other public organisations, state power and local independent bodies, media organisations, residents of the area where the company operates, and so on.

Personnel policy — all the regulations, rules, objectives, and ideas that determine work with personnel (personnel planning and accounting, search and selection, adaptation, training and development, work organisation, remuneration and incentive, testing, social security, and so on) in keeping with the company’s development strategy.

Compliance — correspondence of the company’s activity to the requirements of government bodies, legislative regulations, applicable rules, recommendations, and standards, including in-house corporate policies and procedures, as well as ethical business practices.

Collective treaty — a legal act that regulates social and working relations in an organisation or for an individual businessman and entered by employees and employer through their representatives.

Corporate culture — a blend of norms, values, and beliefs that determine the way the company resolves its internal integration and external adaptation problems; it also describes and governs the way the company’s owners and employees think, feel and act, and it develops over time.

Corporate social responsibility — the company’s conduct philosophy integrated into a business model that determines how the business community, companies, and individual business representatives deal with stakeholder expectations aimed at sustainable development.

Corporate social responsibility report (non-financial report) — a comprehensible, reliable, and balanced description of the main aspects of the company’s work and its achievements associated with its sustainable development values, objectives, and policy regarding issues of the greatest interest to key stakeholders. It is a public instrument for informing shareholders, employees, partners, and other stakeholders about how and at what rate the company is performing the economic sustainability, social prosperity, and environmental stability objectives envisaged in its mission and strategic development plans.

Mission — the company’s reason to be and purpose that distinguishes it from other similar organisations.

Young specialists — graduates of higher and secondary special educational institutions who have worked for no more than three years after graduation.

Incentive — the mechanism for prompting an increase in labour performance and efficiency and stimulating an employee or group of employees to work toward achieving the organisation’s goals.

Occupational safety — a system aimed at preserving the life and health of employees during labour activity that includes legal, socioeconomic, organisational-technical, sanitary-hygienic, medical-preventive, rehabilitation, and other measures.

Personnel management policy — a continuous integrated personnel management system that includes all stages of interaction between employees and the company beginning with hiring and ending with retirement and continued support.

Environmental protection efforts and resource saving — a segment of the company’s programmes carried out on its initiative aimed at reducing detriment to the environment.

Occupational illness — any illness that employees have incurred and developed from systematic and lengthy exposure to workplace factors inherent of this profession or complex working conditions characteristic of only one particular production unit.

Local community development assistance programme — a segment of the company’s social programmes implemented on a voluntary basis and called on to assist development of the local community.

Personnel development — a set of measures implemented by the company aimed at attracting, adapting, and keeping employees and prompting maximum realisation of their professional and creative potential.

Risk — threat of the negative impact of external and internal factors on achieving the company’s corporate objectives.

Certification — confirmation of the compliance of qualitative characteristics to the level required by the quality standard.

Global reporting initiative — the generally accepted system of non-financial reporting of sustainable development on economic, environmental, and social indices of the organisation’s activity. The system consists of reporting guidelines in sustainable development, technical reports, and branch appendices.

Social partnership — a system of relations among employees (employee representatives), employers (employer representatives, state power bodies, and local independent bodies) aimed at coordinating the interests of employees and employers regarding the regulation of labour relations and other directly related relations.

Social programmes — efforts performed voluntarily by the company to develop and encourage personnel, create favourable working conditions, develop corporate culture, and support the local community and charity; they are systemic in nature, related to business strategy, and aimed at meeting the balanced requests of various parties interested in the company’s activity. From the managerial viewpoint, social programmes are sets of measures linked to resources, executors, and timelines that ensure an efficient solution to internal or external corporate social tasks.

Employment benefits — a set of privileges, compensations, additional payments, and services (legislatively established and additional) that the employer offers employees in addition to their salary.

Standard — a regulatory guidance document that sets forth a set of regulations, rules, and requirements of the standardisation target.

Personnel management strategy — a system of principles, regulations, and conceptual approaches to personnel management aimed at ensuring the efficient implementation of business strategy, as well as at creating conditions for developing human potential to achieve the company’s goals.

The company’s structural subdivisions — subdivisions of branches, ROKS NN, and the company’s branch complexes involved in product manufacture and rendering the company’s services that have their own organisational structure, plans, and personnel.

Structural subdivision of the company’s Head Office — the subdivision of the organisational structure of the company’s Head Office directly subordinate to the company’s General Director or the deputy of the General Director .

Sustainable development — a concept developed by the UN that recognises the role of business in ensuring the sustainable development of society. A concept of world community development that envisages taking into account the interests not only of the present generation, but also of future generations (put forward at the World Summit in Rio de Janeiro in 1992).

Payroll fund — aggregate resources for employee remuneration (salary fund) and social payments.

Functional subdivisions — organisational structures that carry out functional management according to types of activity in the company’s subsidiaries, ROCS NN, and branch complexes.

Sherpa — authorised person of the leader of a member state of the G-8 and representative of a country in the G-20 and BRICS. Sherpas are responsible for contacts with colleagues from foreign countries, preparing agendas for summits, and drawing up agreements.