ARMENIAN BUSINESSMEN HAVE INSUFFICIENT COMPREHENSION OF SOCIAL INVESTMENTS’ SIGNIFICANCE
Noyan Tapan
Aug 09 2007
YEREVAN, AUGUST 9, NOYAN TAPAN. More than 25 representatives of
Armenia’s business community participated in the August 9 seminar
on corporate social investments held in Yerevan, during which
the experience of Russia, the US and the UK in this sphere was
presented. The Eurasia Foundation’ new program aimed at developing
Armenian businessmen’s skills at making strategical social investments
was launched at the event.
In the words of the director of Eurasia Foundation Juliet Stein,
strengthening local businessmen’s strategical potential to make
corporate investments will result in positive, lasting changes
in the country. The deputy ambassador of the US to Armenia Joseph
Pennington said that following suit of rich Americans, prominent
Armenian businessmen have begun to invest part of their profit in
the social sphere, as well as education and culture.
Studies conducted among Armenian businessmen show that they have
insufficient comprehension of the significance of social investments.
According to surveys, social investments usually do not exceed 1% of
the annual income of the given company. Most of social investments
are made in such spheres as social assistance, science, culture,
health care, and education. As a rule, these investments are one-off,
unplanned and do not make part of long-term programs or strategy
on social investment: they are made in the form of humanitarian or
charitable assistance, individual sponsorship or one-off grants.
The executive director of the Union of Manufacturers and Businessmen
of Armenia (UMBA) Gagik Makarian underlined the importance of the fact
that the ideas of collective contracts, creation of trade unions,
as well as the idea of trade union – employer – government social
partnership have been included in the new Labor Code of the RA. He
noted that the cooperation of these structures has been put at a
new level.
G. Makarian at the same time said that making social investments
ensures reduction in tax liabilities for businessmen abroad, whereas
such practice is absent in Armenia. According to him, the Union of
Employers currently at the stage of formation will deal with this
problem.