Manual for Azerbaijan companies Rena Safaralieva

♦

 

Will corporate ombudsmen and ethics officers be able to efficiently implement ethics principles of 

companies or will they become another “lip service”, as in many other instances in our country?  

  

 

CASE STUDIES  TO CHAPTER VI.  

MECHANISMS OF IMPLEMENTATION OF PRINCIPLES IN BUSINESS 

 

Please read the cases below and chose your answer from the options provided. Please substantiate your 

answer. The notes to cases  can be found at the end of the book.  

 

1. A husband of an  employee works for a competing firm. Shall she inform her management? Please 

justify your choice.  

 

a)

 

There is no need to inform her employer. Everyone has a right for private life.  

b)

 

It is not desirable to inform her management. She can quit her company and join the competing 

firm herself.  

c)

 

She is obliged to notify her manager.  

d)

 

She can informally inquire, what are her company’s policies in this respect.  

 

2. Akif often uses office computer after work hours for the purposes of charity activities among local 

community on behalf of a grassroots non-governmental organization (NGO), of which he is a member.. 

Can this be considered as an abuse of company’s property? Is there any solution, given that Akif does not 

have a computer either at home or at the NGO office? Please justify your choice.  

 

a)

 

He violates company’s polices and shall stop.  

b)

 

Akif does not violate company’s policies, as his company supports charity activities as well. He 

can go on.  

c)

 

He should have informed his immediate manager in advance.  

 

3. How would you describe a “whistleblower”?  

 

a)

 

A person who would not tolerate injustice.  

b)

 

A demagogue who is used to sticking out for any purpose.  

c)

 

A person who clearly understands that consequences of a crime he or she notices might be more 

detrimental for the common good than the threat directed against him.  

d)

 

A dangerous type, a quarrelsome guy, whose ungrounded suspicions might do harm to innocent 

people. 

 

4. Elnar, an employee of a construction company, is concerned with tactless behavior of Zakir, one of 

company’s managers. Elnar is particularly concerned with the way Zakir treats Gasym, a very meek 

person, who is scared to lose his job. Zakir likes to tell jokes degrading the national minority to which 

Gasym belongs. Indignant Elnar asks Gasym to complain to management. Gasym says that Zakir is not a 

bad guy, he simply lacks tact. In addition, director of the company is a native of the same region as Zakir. 

Elnar decides to file a complaint on his own and in case of a fiasco, he is ready to go public and apply to 

media. What do you think:  

 

a)

 

Elnar is not authorised to file a grievance for somebody else. A complaint, if any, shall be filed by 

Gasym. 

b)

 

Elnar can file a complaint, but to no avail. The director will support Zakir and Elnar will lose his 

job for his Don Quixote aspirations.  

c)

 

Elnar is authorised to file a complaint and he is doing what every decent person should do. 

Business relations are not always governed by nepotism. Management is, possibly, unaware of 

Zakir’s cynical behavior. A clever director would get rid of a tactless person.  

d)

 

There is no problem here. Every person has a right for freedom of expression. There are lots of 

jokes about other people, for example,  Azerbaijan people.   

 

---

5. You are a lawyer with a contract department of an IT company. Your job is to analyze competitive bids 

from potential suppliers. A representative of one of bidding firms invites you to a business dinner at a 

very expensive restaurant with a show.  

 

a)

 

What ethical considerations are involved here?  

b)

 

Can you accept the invitation? Please justify your choice.  

 

 

Rena Safaralieva  

 

CHAPTER VII. CORPORATE SOCIAL RESPONSIBILITY  

 

Corporate social responsibility 

 

In 1889 Andrew Carnegie, founder of one of the biggest American corporations, the U.S. Steel company, 

set forth the classic definition of Corporate Social Responsibility (CSR) in his book “Strategy of Wealth,” 

Since then the notion of CSR has undergone considerable changes. CSR is understood as a set of 

obligations of businesses to society and the community they work in. CSR is not confined to strict 

boundaries, but changes over time in tune with changes in legislation as well with societal change. For 

example, if in the early 1970’s, environmental norms were more the domain of corporate social 

responsibility programs, today environmental standards are set forth by legislation of many countries and 

are mandatory.  

 

Today we are witnessing a new tendency of CSR of multinational companies  in extraction industries 

operating in transitional markets of  highly corrupt countries,  which are changing their attitude to 

declaring revenues  paid to  host countries’ governments.  

 

Pressure from international organizations and NGOs within the framework of the Publish What You Pay 

Campaign,

47

 forced oil companies such as BP and  Shell to publish payments made to host governments.  

 

State regulation 

 

Western businesses have realized that if they do not accept social responsibility voluntarily, they will 

most likely be forced to accept it by governments  at considerable cost to their public image. The 

Azerbaijan  legal framework contains many corporate social responsibility provisions,  such as 

environment protection and labor safety. However, these laws are little used in practice.  

 

During the summer of 2003, a scandal emerged that revealed  the illegal use of land plots under high 

voltage electric power transmission lines by farmers for agricultural purposes near Baku. At one such 

plot, grain caught fire and destroyed the power line. The accident cut off electric power to the capital for 

several days in the middle of summer. Besides causing serious environmental damage,  many households 

and businesses, including restaurants, grocery stores, and warehouses, incurred substantial losses as a 

result of irresponsible behavior of all the parties involved: farmers, Azenergo staff, local authorities, and 

numerous inspecting agencies, for example, fire security.  

 

Currently, the government of Azerbaijan does not provide an incentive for businesses to support social 

programs. In particular, legislation envisioning tax advantages for social expenses of businesses is 

inconsistent. Businesses supporting charity programs from their net profit are to be commended.  

 

Elements of Corporate Social Responsibility  

 

The notion of corporate social responsibility is rather broad, however, it includes several basic elements  

discussed below.   

 

                                                 

47

 Publish What You Pay Campaign, 

www.eurasianet.org

  

---