Environment

The history of a polluting paper mill on the banks of Lake Baikal epitomises much of modern Russia’s corporate responsibility challenges

Russia’s unique history – its many decades of communist rule – has bequeathed it a powerful legacy of corporate social responsibility by companies. So strong was state companies’ historic role in providing social services that this has sometimes trumped both economic and environmental concerns.

More recently, the demonstrations that followed elections – which were subject to accusations of ballot rigging – may lead to more social unrest over the coming months. Companies will certainly have a role to play in developing social cohesion.

The history of the modern corporation is shorter in Russia than in many western nations. But before perestroika in the 1990s, the USSR’s system of state-owned and state-controlled enterprises had its own understanding of social responsibility.

“In some ways, the USSR was the ultimate word in CSR, where state enterprises paternalistically supported local cities and communities,” says Brook Horowitz, director of regions and business standards at the International Business Leaders...