Gennadii Vykhodtsev: Foxtrot Group of Companies’ 11th CSR report accepted by UN Global Compact
Foxtrot Group of Companies’ report №11 (2018) on commitment to sustainable development standards and implementation of corporate social responsibility principles (CSR) has been published on the web portal of the UN Global Compact (New York) this June, along with those submitted by participants from France, Greece, Spain, Sri Lanka and Turley, which demonstrates the global scale of this initiative.
Foxtrot Group of Companies’ Communication on Progress demonstrates its commitment to the social aspect of company management along the axis «people-company-Ukraine-planet». In 2018, the brands developed by the Foxtrot Group of Companies became the biggest employers in the industry, and the Group kept supporting its personnel development and volunteer initiatives (the point «people» on the diagram). The brands set standards in their industry and hold the lead in their market segments («company»). In 2018, the companies under these brands kept being big donors to the state budget having increased their contribution by 22 per cent and joined the educational program «Price of the State» («Ukraine»). And the Foxtrot Group of Companies’ ecological corporate program “Green Office” reported a 34 per cent rise in corporate volunteer involvement («planet»).
Structure of the Foxtrot Group of Companies’ Communication on Progress for 2018 towards the UN Global Compact principles
1. Joint opening remarks by CEO of the Foxtrot Group of Companies Gennadii Vykhodtsev and co-founder of the Foxtrot Group of Companies, chairman of the Foxtrot supervisory board Valerii Makovetskyi.
2. The structure of the Foxtrot Group of Companies. The Group’s CSR philosophy and the CSR strategy of its brands.
3. The list of the prizes and awards granted to the companies developed by the Foxtrot Group of Companies in 2018.
4. HR policy of the brands developed by the Foxtrot Group of Companies. Talent acquisition, talent pool, professional development methods.
5. Anti-corruption activity, namely the actions taken by Foxtrot brands to protect consumer rights and stop grey import flows in their sectors of the retail market.
6. Cooperation with the Price of the State project that teaches how to become a responsible taxpayer. Foxtrot chain was involved in the project for it to interact with as many people as possible. Valerii Makovetskyi took part in the project in person.
7. Eco responsibility (the area supervised by Gennadii Vykhodtsev). This UN sustainable development principle is implemented via the Green Office program and cooperation with the public project “No Waste Ukraine”. The saved money is spent on social targeted projects.
8. Support to employees’ social patriotic initiatives. Description of the program “Anti-Terrorist Operation Participant’s Social Security Card” implemented by Foxtrot.
9. Description of the corporate volunteer movement at the Foxtrot Group of Companies.
10. Description of social educational programs at the Foxtrot Group of Companies, with the focus on the educational complex “Safety Lessons” that targets schoolchildren.
11. Sports in Ukraine – support to football organizations, sports events and dance tournaments.
12. Charity. Collecting donations. Reports.
Results and feedback: Foxtrot Group of Companies’ social initiatives in the eyes of its partners and stakeholders
Foxtrot’s progress map one can find in the report-2018 shows results of its partnership with state authorities on child injury prevention and lowering mortality rates in the non-production sector. The dynamics of the social project “Safety School” implemented by Foxtrot in partnership with the State Emergency Service of Ukraine since 2008 is as follows: the cartoon series Fox&Trot Rescuers scored 800 thousand views in 2018 (up 35% compared to 2017). And the all-Ukrainian Safety Lesson given in 25 oblasts of Ukraine in November 2018 was attended by about 5 thousand primary school students. They were taught safety rules both in Ukrainian and English (the episode “Fire” was dubbed in English on the occasion of the10th anniversary of the social project “Safety Lesson”). “In 2018, the number of children who died in a fire declined from 144 to 122 in Ukraine”, reports Yulia Barysheva, head of media affairs and public relations sector, the Civil Defense Service lieutenant colonel at the State Emergency Service Division in Zaporizhzhia Oblast. “The rate should tend towards zero but we should join efforts to reach this desired result and make our lives safer”.
Great results were demonstrated by the initiative “Anti-Terrorist Operation Participant’s Social Security Card” implemented by the Foxtrot chain and the all-Ukrainian union “Ukrainians Together!” two years on end: in 2018, Foxtrot granted discounts to 8 thousand clients, more than double on the previous year.
“Anti-Terrorist Operation Participant’s Social Security Card” is Ukraine’s biggest non-state social and legal assistance program targeting combatants and families of fallen heroes. More than 2.5 thousand partners have joined it all over Ukraine. We are pleased to note there is Foxtrot among the committed partners of it. It is an example of effective self-organization of highly socially responsible businesses”, notes Ruslan Rudenko, chairman of the board at the all-Ukrainian union of ATO veterans “Ukrainians Together!” The program was launched when the war broke in the east of Ukraine, and since then more than 210 thousand defenders of Ukraine (every other combatant) and more than 1,500 members of families of the fallen have become holders of social cards “Ukrainians Together!” The cardholders have been given more than UAH 512mn discounts for products and services, which proves the program to be effective and ambitious. There are no comparable projects in Ukraine. We are grateful to businesses that are aware of their civic duty and join our initiatives. Ukrainians Together is a victory of Ukraine!
The social project “Price of the State” is of importance too. In partnership with Case Ukraine, the Foxtrot Group of Companies joined it in 2018. The chain outlets popularized the tax calculator among their clients and distributed receipt covers with the information about this initiative on them.
- Foxtrot clients were informed about the taxes the average Ukrainian pays to the state budget. And our 11th report on sustainable development progress reads that the company tracks its corporate taxes”, reports CEO of the Foxtrot Group of Companies Gennadii Vykhodtsev. “According to estimates of the Price of the State project, the taxes of UAH 655,665,164 the Foxtrot Group of Companies paid in 2018 would be enough to train 8 thousand students at higher educational institutions of III or IV accreditation levels. They are comparable to 244 thousand presidential scholarships paid to 24 thousand students of higher educational institutions (10 scholarships of UAH 2,720 a year). Or 300 B-type equipped ambulance vehicles.
«An important task on which all the authorized suppliers and retailers focus is to make customers aware of the fact that the receipt is the basic document that provides them with a proof of payment as well as warranty services, and enables them to protect their rights, states Serhiy Hontar, Director General Philips Ukraine. – Responsible business practices, civilized relations between producers, retailers and customers contribute to the market development and eventually boost the population’s well-being in our country».
Apart from educational projects, the Foxtrot Group of Companies is involved in those promoting sports in Ukraine. Traditionally, Foxtrot was the general sponsor of the international dance sport tournament “Parade of Hopes” in 2018. Stakeholders appreciate the support Foxtrot has been giving to the Parade of Hopes for years. «It is important that Ukrainian businesses invest in social responsibility. For our part, we are always happy to give information support to the social projects and initiatives that promote sports and culture in Ukraine. We are grateful to the organizers and all the partners, participants and sponsors: due to their efforts, the tournament has been a success for years attracting more and more dance lovers from year to year”, says Viktoria Sydorenko, PR director at UA: Suspilne Movlennia.
- Business social responsibility is not only a global trend but also a must for the companies’ sustainable development in the market, states Viktor Stepanenko, head of corporate marketing at Samsung Electronics Ukraine Company. - Foxtrot has been working on Ukraine’s market for 25 years demonstrating commitment to consumers and consumer protection as well as quality of products and services.
Foxtrot is Ukraine’s biggest retail electronics and household appliances chain, based on the number of its outlets and turnover. Foxtrot develops as both an offline and online brand and thus positions itself as an omnichannel company. In 2019, it celebrates its 25th anniversary in Ukraine.
As of the beginning of 2019, the Foxtrot family included 162 outlets totaling 153 thousand square meters. Foxtrot is present in 90 oblast and district centers of Ukraine. In 2018, 27.8 million customers visited its outlets. Simultaneously, web-store foxtrot.com.ua develops. It reports the annual traffic of about 8 million persons a month. For both online and offline customers, the company has developed and maintains the loyalty program «Fox Club». As of early 2019, the Fox Club had more than 8.2 million members.
Foxtrot brand was №1 in the industry in the State Fiscal Service ranking of Ukraine’s employers in 2018. It also headed the analogous ranking the Vlast Deneg magazine presented. Besides, in 2019, Foxtrot headed the top-5 retailer ranking by the Biznes magazine, and found itself among Ukraine’s top-20 eco brands ranked by the Dilova Stolytsia weekly.
The brands developed by the Foxtrot Group of Companies are as follows: Foxtrot and Tekhnoshara (household appliances and electronics retailers), Secunda (watch retailer) as well as DEPO't Center and Fantasy Town (Foxtrot real estate development). Foxtrot Group of Companies is led by Valerii Makovetskyi and Gennadii Vykhodtsev.