2015
Sustainable Development of Obolon Corporation
Official Report
All Sections
People
Corporation
Sustainable development is a key element of the Obolon Corporation’s strategy. It allows the company to implement its corporate ambitions and fully develop each of its CSR areas: employee development, environment protection, promotion of sports, and support of the local communities.
Production
Producing beverages with a high level of quality and safety is the basis for the long-term development of the Obolon Corporation. Stability of production processes and guaranteed quality and safety of its beverages ensure that the company achieves its goals on the way to sustainability.
Environment
Climate change, resource depletion, and energy dependence are the challenges of the 21st century for individuals as well as for large manufacturers. Reduction of environmental impact and conservation of nature are priorities for Obolon as the largest Ukrainian beverage producer.
Economics
Obolon makes both a direct and an indirect impact on the economy of the country as a whole and specific regions where its facilities are located through job creation, paying taxes to the local and state budgets, development of related industries, and support of the social culture.
Society
Adhering to the principles of sustainable development, Obolon views the participation in the social life of the regions where its facilities are located as an important component of developing Ukrainian society as well as its own business.
For Trade Partners
For Financial Institutions
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For Government Agencies
For Shareholders and Employees
Customers

Incentives and Motivation

Financial Incentives


Adequate salaries and social programmes are important factors for raising the quality and productivity of work. Obolon Corporation has a unified and balanced system of compensation and incentives, accounting for various positions and the results provided by each person and the company as a whole.

In 2015, the average salary at the Obolon brewery increased by 5.26% as compared to the previous year.
The average salary at the Obolon Corporation is now 2 times higher than the average compensation figures in the industry. 
Financial Incentives
Basic Salary SystemBonus SystemReimbursement Payments System
Weight in the incentives system
70%

As an employer, Obolon Corporation views the main salary as a compensation for the work performed according to the established standards (time, output, service, and functions). This compensation is provided as salaries and piece-work rate for the employees, and position salaries for the managers.

Salary type Personnel category Payment form
Time-rate Workers, drivers, security guards, etc. Payment according to the actual number of hours worked
Piece-rate Production personnel Compensation according to the actual amount of work performed in the finished product units and established piece rates per unit of the finished product

The position salaries are based on the assessment of each position, which differ by the level of responsibility, importance of the functions performed, level of influence on the achievement of strategic goals, required qualification level, etc.

The financial incentives system used in the Obolon Corporation also includes additional compensations (bonuses) for employees working in excess of the established standard, for professional achievement and inventiveness, and for special working conditions. The bonuses depend on fulfilling production assignments and functions and comprise the bonus per se and the quarterly or annual bonus, etc. Moreover, they may include additional incentives for special achievements, inventions or innovations.

The position salaries and piece rates are annually adjusted for the consumer price increase in Ukraine, which is the basis of salary increase at the Obolon Corporation.

Non-Financial Incentives


A wide package of social benefits is established for the Obolon Corporation employees.

  • financial aid for health improvement, benefits in case of child birth, retirement, or marriage;
  • trips to health improvement camps for the employees and their children;
  • vacation bonus for company employees, as well as retirement bonus;
  • medical office, gym, and two cafeterias; transportation to residential neighbourhoods; bicycle parking spaces.
Non-Financial Incentives
Social benefit systemInternal communication systemCareer growth systemCorporate culture
Weight in the incentives system
30%
    For instance, the non-financial incentive package of Obolon's main brewery includes everyday transportation of the employees from/to work to/from remote residential neighbourhoods (Vynohradar, Troieshchyna, Petrivka). The transportation is performed by the company's vehicles as well as through transportation companies.
    Obolon supports the retired employees. The corporation gives them foodstuffs before the national holidays, brings corporate press, and provides financial aid if necessary.
    In the framework of the corporate donorship programme, 809 employees have taken part in the initiative by donating 364.05 litres of blood for the needs of the patients of Kyiv hospitals.

    An important area of Obolon Corporation's social policy  is improving corporate culture and spirit as well as identifying personal achievements of each Obolon employee with the company. A unified corporate culture and persistent traditions ensure meaningful recreation of the employees and improve the social and psychological atmosphere among the personnel.

    Since early 2000s, a donorship movement of self-motivated and responsible employees exists at the company. Every year, on the Donor Day, the kind-hearted employees donate their blood to help the sick.

    For over ten years now, Obolon has supported the Mostyshche Specialized Boarding School in Kyiv Region. Today, it has 75 students aged 6 to 16. Most of the children come from socially vulnerable families and have various degrees of mental retardation. For two years in a row, the volunteers from the marketing service of the Kyiv facility conduct workshops with the children, bring the stuff they need, and donate presents and beverages.  This initiative improves the quality of students' lives. Besides, it brings together the company's personnel, promotes more active communication, and encourages productive and well-coordinated work.

    The employees of all Obolon Corporation facilities support and develop the sports spirit. Every year, the company holds two soccer championships,  Factory Cup and President's Cup. Other sports events have also gained popularity over the last year.

    The internal communication system at the corporation companies includes monthly meetings of the medium and top managers, corporate press, annual online information, as well as corporate events and personnel opinion study.

    Since 1994, the company has been issuing the corporate "Obolon Bulletin". The 52-page magazine is available to all employees as well as to company's partners.

    Corporate social responsibility and implementation of socially important projects are an important part of the incentives system. Obolon has adhered to the sustainability principles since its establishment. The company invests into art, sports and culture, providing aid to low income people and taking care of orphanages. In the cities where the corporation's facilities are located, the company builds playgrounds, repairs hospitals, and provides equipment to schools.

    These projects are of great importance both for our employees and for the local communities. increases significantly people's loyalty and trust in the corporation.

    Facts

    Total amount of financial aid provided to the employees
    14.1
    UAH millions
    28% women
    28% of the corporation personnel are women
    OHSAS 18001
    OHSAS 18001 occupational health and safety management system is employed at the corporation
    UAH 5.2 millions invested
    UAH 5.2 millions was invested in occupational safety in 2013

    Practices

    • Since its establishment and till this day, Obolon Corporation has been maintaining and developing the charity and volunteering traditions. Each year, Obolon makes investments into the regions where its companies are located, implements initiatives of social importance, and supports the partners by funding and product donations. Today the social activity of the company is an important component for sustainable development of the country and for the life of the Ukrainian society.More
    • Achieving a gender balance is important for sustainable development not only as an ethical norm, but as a requirement for effective operation.The companies of Obolon Corporation have about 28% of female employees.Under the Gender Plan adopted in 2011 and the Collective Bargaining Agreement revised in 2012, Obolon guarantees and ensures equal employment rights for men and for women.More
    • The early 2000s boosted the development of corporate volunteering at the Obolon Corporation facilities.The donorship movement in the company, initiated by the employees, has been growing for over 14 years.Each year new employees join the regular donors and continue the noble tradition in the company. More
    • Since 1994, the Obolon Corporation is a member of the Ukrainian Quality Association, and since 1998 a member of the Quality Leaders Club of Ukraine. The Corporation is successful in the competition both on the domestic and on the international markets.In 2008, Obolon created an integrated management system and had four international standards certified at onceMore
    • In 2013, the Obolon Corporation reduced its production waste levels by 48.5%. Among other things, this was achieved due to comprehensive recycling of used PET packaging.For 12 years, Obolon has been running the waste plastic packaging recycling project.The collection of used bottles, reduction of emissions, and reduction of energy consumption help Obolon significantly reduce its environmental impact.More
    • Responsibility is the foundation of the Obolon Corporation’s environmental policy. In addition to the reduction of environmental footprint, the organic brewing waste recycling technologies allow Obolon supply highly nutritious feedstock to agricultural companies.Besides, such production is a source of additional income for the company.More
    • The Obolon Corporation is one of the largest Ukrainian taxpayers.Its companies employ over 5,000 people, about 5% of whom have children under 6 years.In order to ensure comfortable working conditions and help combine the professional and family responsibilities, in 2013 Obolon joined the “Back to Work” employee reintegration project.More
    • Obolon Corporation helps improve the education of the Ukrainian society through systematic investments into the development of education and book publishing and renovation of educational institutions.For 9 years, Obolon has supported the Petro Yatsyk International Contest of Ukrainian Speakers to promote the second most beautiful language in the world.More
    • Obolon started investing into the development of sports back in the 90s.For over two decades, the corporation has been providing comprehensive support to teams and projects promoting a healthy lifestyle. Today, the Obolon Corporation has its own football club, Obolon Brovar, playing in the national championship; the company supports childrens’ and youth soccer (Zmina sports school), and holds competitions among its personnel.More
    • For more than twenty years Obolon has been implementing a support programme for vulnerable social groups. Such categories include disabled and low-income people, senior citizens and disadvantaged children. This area of work also encompasses the support of large families acting as family-type children’s homes. Implementation of this programme secures the right of children to a family upbringing and a happy childhood spent within a family.More