Hamid Mohammadi Rafie – Deputy of Human Capital Development and Corporate Social Responsibility

Part 2

– How do you evaluate SMIC’s position in practicing social responsibilities? The position of companies in practicing Corporate Social Responsibility (CSR) has increasingly attracted attention in today’s business world. Corporate social responsibility refers to the commitment of companies to engage in activities that benefit society and the environment, going beyond legal requirements and financial profitability.

In this regard, Sangan Khorasan Steel Mining Industries Company has continuously made conscious efforts to respond to its stakeholders and has always planned and implemented goals, strategies, and actions that are aligned with the principles and indicators of sustainability in the economic, social, and environmental spheres. Moreover, our adherence to and commitment to sustainability principles are among the governing principles of all our organizational decisions and macro-processes at Sangan Khorasan Steel Mining Industries Company. This approach has been influential in areas such as human resources, the environment, stakeholder responsiveness, social participation, upholding values, and promoting organizational ethics. Having a sustainability-based approach has helped Sangan Khorasan Steel Mining Industries Company to identify, on the one hand, the negative impacts that the company’s business may have on society, the economy, and the environment, and at the same time, to maximize the value created for SMIC’s stakeholders while reducing these negative impacts comprehensively. Employing this approach helps the company gain the necessary credibility to carry out its production activities and thereby be able to fulfill its responsibilities and commitments to stakeholders effectively.

Therefore, over the past few years, Sangan Khorasan Steel Mining Industries Company has defined its business strategies in a way that the sustainability approach in the economic, social, and environmental spheres related to the company and the entire value chain of the company expands, and the social responsibility activities of this company, as a responsible member of society, are committed to providing transparent information to stakeholders regarding its performance in this area. This has led to the company winning awards in the field of CSR over the past years, some of which include:

Achievements in Corporate Social Responsibility – Sangan Khorasan Steel Mining Industries Company

• Awarded the Excellence Medal in Corporate Social Responsibility at the Fourth Public Relations and Corporate Social Responsibility Festival
• Won the Simorgh, the highest level of the Third Corporate Social Responsibility (Ghaff) Festival

Awarded the Excellence Medal in Corporate Social Responsibility at the Third Public Relations and Corporate Social Responsibility Festival

• Received the Social and Environmental Responsibility Trophy
• Received the Green Brand Mark
• Won the Platinum Trophy, the highest level of the Corporate Social Responsibility Award
• Received the Crystal Trophy at the Fifth National Health-Oriented Industry Festival
• Received the Crystal Trophy at the Fourth National Health-Oriented Industry Festival
• Appreciation from the President of Tehran University for SMIC’s systematic and principled program in fulfilling its social responsibilities
• Selected as the third winner of the Corporate Social Responsibility and Sustainable Development Award for Economic Enterprises
• Appreciation for Sangan Khorasan Steel Mining Industries Company for its fulfillment of social responsibilities and valuable and revolutionary activities in the region

Implementing Corporate Social Responsibility (CSR) initiatives in less advantaged regions can come with specific challenges and obstacles that can hinder their effective execution. Here are some of these obstacles:

1. Infrastructure Challenges: Underprivileged areas usually lack infrastructure, making it difficult to implement and manage CSR programs.
2. Lack of Awareness and Education: In many underprivileged regions, there might be low awareness regarding social responsibilities and their benefits, which can reduce the acceptance of such programs.
3. Cultural and Social Issues: Cultural values, attitudes, and expectations in underprivileged areas may not align with social responsibility approaches, hindering community participation and cooperation.
4. Legal and Regulatory Barriers: Local laws and regulations might make implementing CSR programs difficult or hinder necessary governmental support.
5. Conflicting Expectations: Companies might face different and conflicting expectations from the local community, investors, and other stakeholders, which can lead to confusion in setting priorities.
6. Lack of Coordination with Other Stakeholders: Ineffective communication with other institutions, NGOs, and local entities can challenge CSR program implementation in underprivileged areas.
7. Challenges in Assessing Impacts: Evaluating the impacts of CSR programs in underprivileged areas can be difficult, especially when there is insufficient data.

To succeed in implementing CSR in underprivileged regions, companies must pay special attention to the specific needs of these areas and design tailored strategies. Additionally, close collaboration with the local community and building trust can significantly contribute to the success of these programs.

In this regard, Sangan Khorasan Steel Mining Industries Company, committed to moving towards sustainable development in economic, social, and environmental domains, has undertaken several effective measures:

• Developed and implemented the SMIC CSR framework in seven areas addressing all discussed challenges and fostering good interactions with local communities.
• Drafted and approved the comprehensive development and advancement document for Khaf County in collaboration with local communities and county executive agencies.
• Mapped out rural business opportunities in Khaf County.
• Trained local facilitators to conduct facilitation processes and manage small rural businesses.
• Conducted participatory rural assessments in 80 villages in Khaf County in collaboration with village advancement centers.
• Established a business consulting and growth clinic and formulated a special loan guideline for Khaf, providing up to 5 billion rials.
• Provided business consulting services to entrepreneurs and granted interest-free loans up to 5 billion rials to rural entrepreneurs for creating and developing rural businesses.
• Set up the groundwork for the establishment of rural micro-finance funds and developed a special loan guideline in collaboration with Karafarin Fund to support these funds.
• Secured interest-free loans through the Karafarin Fund (at a 4% rate) for boosting production, stabilizing, improving, and creating small rural businesses.
• Executed trust-building infrastructural projects centered on the CSR of Sangan Khorasan Steel Mining Industries Company, in collaboration with county executive agencies at the village level in Khaf County.
• Organized training courses to empower local communities in villages in Khaf County in cooperation with other county executive agencies.

These efforts have led to recognition and appreciation of Sangan Steel Company for its CSR efforts in the region by local officials in Khaf County