Corporate Social Responsibility

Concern Khlibprom in its consistent and systematic development policy is striving for sustainability, efficiency and profitability. The Company believes that the key to a successful Company is not just the financial component, but also high standards of doing business at all levels. Achieving long-term positive results is possible when considering the interests of direct customers as well as employees, partners, investors, shareholders, local communities and other stakeholders who interact with the Company. That is why social responsibility of the business is a crucial aspect of Concern Khlibprom activity.

With assistance of the International Finance Corporation the Company has developed its "Corporate Governance Code" which is based on such universal human values like honesty, openness and transparency. The Code provisions were created and developed based on the international practice of sound principles of corporate governance. They are reflected in particular in the Corporate Governance Principles of the Organization for Economic Co-operation and Development and Corporate Governance Principles adopted by the National Commission on Securities and Stock Market of Ukraine.

Main strands of the Company’s work in the sector of CSR are as follows:

• responsibility to the consumers for the quality of our products;
responsibility to the employees for creating optimal conditions for work, development and implementation of their own potential;
• responsibility to the partners for honest and faithful partnership on the principles of openness;
• social responsibility for environmental impact.

The nature of the product manufactured by the Company defines its primary social goal – to provide people with natural, high-quality and affordable products of everyday use – bread. The basic principles of Concern Khlibprom activity in this strand is compliance with legal quality standards, implementation of the high international standards of control at all stages of manufacturing, accounting for its safety.

The quality management system of Lviv Bakery No. 1 Manufacturing Enterprise was certified according to the National Standards of Ukraine ISO 9001:2009. This standard is the official translation of the international ISO 9001:2008 Quality management systems - Requirements. At the Semi-Finished Bakery Products Plant the control system of food safety ISO 22000:2005 HACCP (Hazard Analysis and Critical Control Points) was introduced. It is designed to maintain control over product safety at all stages of the production chain – from supply of raw materials to shipment of finished products to the customer.

To guarantee the quality of products the Company has developed its own counterfeit protection system for products that are sold unpacked. Retail stores received certificates of authorized sales points with holographic protection from the Company. These documents certify the belonging of goods to the factories of the Company that allows consumers to avoid products of unknown origin, and therefore the ones with no guarantee of quality. Besides, the Company has established a hotline operation, allowing additional tracking, control over the quality of products, communication with customers and quick response to their appeals.

Being one of the largest producers of grain in the regions of its presence, Concern Khlibprom is aware of its responsibility to socially vulnerable groups. That is why it has taken up a function of production of social bread in quantities eliminating tension in society. Khlibprom provides its consumers with accurate information about the products and processes in the Company and ensures responsible communication with all stakeholders. The list of Concern’s information campaigns includes the following: "How to determine the quality of the bread?", "Bread with iodized salt to prevent iodine deficiency in the population", "Fight against the shadow market and protection against counterfeiting of bread."

The Company is open to projects that meet its objectives – on the production of healthy products and promotion of healthy eating habits. Thus, Khlibprom gladly supported the initiative of UNICEF and GAIN (Global Alliance for Improved Nutrition) to combat iodine deficiency among the Ukrainian population and was the first in Ukraine to start production of bread with iodised salt and launch the information campaign dedicated to it.

Concern Khlibprom possesses a strong industrial base – 8 manufacturing plants. In addition to opportunities to provide people wit a sufficient amount of ‘number one’ product, the Company holds more responsibility for its impact on the environment. Over 5 years the Company has been cooperating with the United Nations Industrial Development Organization, UNIDO, and the Nordic Environment Finance Corporation (NEFCO) in the direction of energy efficiency policy development. The Company has recently received a grant from the organization which is assigned for applying the environmental and energy-saving technologies in the project on implementation of the complex of utilization of furnace flue gases. In the future, it will reduce dependence of the bread cost on fluctuations in the energy prices.

In 2014, the practice of recycling of packages was introduced at Confectionary Shop Production Unit, which will reduce the use of cardboard by 30%. Through this initiative, the company will save 30 tons of paper, and thus rescue 300 mature trees from cutting-down. 

As one of the largest employers in the regions of its presence Concern Khlibprom provides jobs for 3,500 Ukrainian. In its relations with employees the Company is guided by a collective agreement that is the result of social partnership at the local level. It is important for the Company to preserve and develop the existing jobs as well as create the new ones, and train its employees.

In early 2014, the Company launched an internship program for technologist students from relevant educational institutions. As part of the program the talented young professionals have the opportunity to do an internship at the production units of the Company, and upon the completion the best of them will get the job. Thus, the Company attracts the best students and helps them realize their potential. The company has been actively working on the development of corporate volunteering, which results, in particular, in supporting the employees who find themselves in difficulties. Caring for the working conditions and health of our employees, the Company considers and offers them the recreational projects.

To educate the young generation, expand their knowledge about bread, baking business and teach the culture of product consumption, the excursions for children have been systematized at the Company. Since 2014 the Company has offered excursions at choice – a traditional tour and interactive tour with a workshop.

Concern Khlibprom follows the principles of responsible procurement. The Company adheres to a provision that regulates the procedure of their conduct. This helps improve the financial efficiency of supply through the competitive selection of suppliers. When making a selection the Company takes into account both the financial and quality effects. The Company understands that is a part of society in general and of the territorial communities, in particular. That is why we strive to respond to social needs not situation-dependently, but systematically, giving the right example, ensuring the rule of law, fair competition, humanity and responsibility within our territory and beyond own location.