CC BY
2B.A. ISLAMOV,
Tashkent Branch of REU named after G.V. Plekhanov
Doctor of Economics, professor Z. K. ATANIYAZOVA, School of Business and Economics Westminster International University in Tashkent,
PhD
"UZBEKISTAN-2030" STRATEGY: ROLE OF CORPORATE SOCIAL
RESPONSIBILITY (CSR) https://d0i.0rg/l0.5281/zenodo.12155756
Introduction. The modern strategies of development should aim at ensuring sustainable and inclusive growth by promoting economic diversification, enhancing governance and institutional capacity, investing in human capital, and fostering regional cooperation to manage shared resources and address transboundary challenges effectively. The development of such comprehensive strategies, underpinned by a deep understanding of the socio-economic fabric of the region and a proactive approach to risk management, is crucial for harnessing the full potential of Central Asia and steering it towards a path of sustainable and equitable development. Vivid example of such strategy is "Uzbekistan - 2030" decreed by president Sh. Mirziyoev. The Strategy of "Uzbekistan - 2030"
The trajectory of socio-economic development in the Central Asian region, characterized by its vibrant growth yet susceptibility to internal and external risks, underscores the necessity of strategic planning and policy-making. In this context, the 2030 Strategy of Uzbekistan emerges as a pivotal blueprint, reflecting the nation's commitment to fostering sustainable and inclusive growth. This strategy is not just a roadmap for economic advancement but also a framework for social betterment and environmental stewardship, aligning with the global Sustainable Development Goals(SDGs).
The Strategy of "Uzbekistan - 2030" meticulously articulates objectives that resonate with the broader aspirations of the Central Asian region, aiming to fortify economic resilience, promote diversification, and uplift social welfare. It recognizes the multifaceted challenges of the present while projecting a vision of a prosperous and sustainable future. In this strategic panorama, Corporate Social Responsibility (CSR) assumes a crucial role, serving as a conduit for aligning corporate objectives with national and regional developmental goals. "Uzbekistan 2030" - aims to build aprosperous, equitable, and modern society in Uzbekistan over
the next 7 years, which has 5 key priority areas with 100 goals. [Sh. Mirziyoyev, 2023].
Overarching Goals
• Become an upper middle-income country by 2030 through sustainable economic development
• Double GDP per capita to $4000 and reduce poverty and inequality
• Improve education, healthcare, social services to meet public needs and international standards
• Ensure environmental sustainability and good governance Priority Areas and Recommended Actions
Priority 1: Human Capital Development
• Increase preschool enrollment to 100% by improving infrastructure and teachertraining
• Modernize secondary and tertiary education curricula, integrate digital skillsand critical thinking
• Expand vocational training tailored to labor market needs, especially for youth
• Upgrade healthcare infrastructure and adopt digital health solutions to improveaccess
Priority 2: Economic Growth
• Maintain macroeconomic stability and reduce inflation
• Accelerate privatization and improve business climate to attract FDI
• Develop priority sectors like agriculture, textiles, pharmaceuticals, tourism bycluster development programs
• Support SME development through access to finance and digital solutions
Priority 3: Environmental Sustainability
• Expand renewable energy to reduce carbon intensity, incentivize energy efficiency
• Improve water resource management, especially in agriculture, to address scarcity
• Increase reforestation and protected areas for conservation
• Implement extended producer responsibility for waste management
Priority 4: Good Governance
• Strengthen e-governance systems to improve transparency, efficiency andpublic services
• Decentralize decision making powers to local authorities
• Engage civil society and private sector in policy consultation and social
accountability
Priority 5: Peace and Security
• Maintain active but pragmatic foreign policy that balances interests of globalpowers
• Continue investments in border security and countering extremism
• Leverage regional cooperation mechanisms for economic integration and sharedprosperity
• Role of CSR in reaching the strategy.
The strategy represents a comprehensive national plan to boost economic growth and human development while ensuring environmental sustainability and good governance over the next 7 years. Nevertheless, government strategy can provide far better outcomes when business provides support in addressing socioeconomic and environmental issues. This can be done by the involvement of companies in Corporate Social Responsibility (CSR). CSR can be defined as the voluntary efforts by businesses to create social, economic, and environmental benefits which may involve promoting social welfare, economic growth, and environmental sustainability through initiatives that uplift communities, drive economic development, protect the environment [Ataniyazova Z.A., Islamov B.A., 2022]. CSRhas a positive impact on economic growth [Wirba, A.V., 2023]. As it , inter alia, creates jobs and business opportunities, develops infrastructure and access to essential services, builds human capital through training and education, alleviating poverty and empowering disadvantaged groups, driving innovation and competitiveness.
Collaboration of the private sector with the government to reach the strategy 2030 can further foster innovation, empower marginalized groups, and advance sustainabledevelopment in Uzbekistan. By encouraging businesses to participate in CSR initiatives, the strategy can harness the positive impact of CSR on economic growth, job creation, infrastructure development, poverty reduction and other goals set in thestrategy 2030.
International Examples where government and business work together to reach common objectives: In India, CSR laws require large companies to spend 2% of profits on approved social development activities like education, healthcare, poverty alleviation and environmental protection. This leverages business resources for
national development. [Dharmapala, D., & Khanna, V.,2018]. Whereas, in China, companies are encouraged to invest in research and development. CSR activities in
this area often involve supporting education, funding research initiatives in universities, and nurturing startups in high-tech industries. These activities contribute to building a skilled workforce and fostering an innovative ecosystem, aligning with national priorities. Also, in line with China's commitment to the Paris Agreement and its own national goals for reducing carbon emissions, Chinese companies are increasingly integrating sustainability into their business models. This includes investing in renewable energy, adopting cleaner production methods, and launching green products. CSR activities in this area not only address environmental concerns but also align with the national agenda of transitioning to a more sustainableeconomy.
There are a number of examples of companies that have successfully implemented CSR initiatives to help achieve government agendas. For instance, Unilever in India has focused its CSR efforts on providing hygiene education, distributing soap, and building toilets to help the Indian government achieve its goal of eliminating open defecation by 2022. This aligns with the government's Clean India mission. [Shetty, T. S., & Shreenidhi, B. S., 2018]. Further, Vodafone Turkey launched the "Women First" initiative to provide digital literacy training to women to increase female labor force participation. This supports the Turkish government's goal of greater gender equality in the workforce. [Qinkir, S., 2020]. Another leading company that has adopted this policy is - Huawei. Huawei invests heavily in research and development, aligning with China's priority to lead in technology and innovation. The company runs several educational programs, such as the Huawei ICT Academyand Seeds for the Future, aiming to enhance ICT skills and foster talent in line with the government's digital economy ambitions. Ways of how businesses by doing CSR can help with key priorities.
Consequently, CSR commitments within the 5 priority areas can provide a way for companies to contribute to these goals. Priority 1: Human Capital Development
• Encourage businesses to implement CSR initiatives that support education, health, social services, poverty reduction, youth & sports, and culture. This can be achieved through both external and internal CSR activities.
• Can stimulate communication of CSR activities by offering incentives such as discounts for ad placements on billboards and TV for companies that run social campaigns.
• Partner with organizations like the Marketing Association of Uzbekistan to endorse and recognize CSR activities.
Priority 2: Sustainable Development
• Encourage State-Owned Enterprises (SOEs) to incorporate social and environmental considerations into their business operations. This includes initiatives such as reducing their carbon footprint, promoting diversity and inclusion, supporting local communities, and investing in education and training programs for employees.
• Partner with organizations like Chapter Zero Uzbekistan (CZU) to provide strategic guidance and help with monitoring the implementation of CSR activities.
Priority 3: Environment Protection
• Encourage businesses to support environmental protection initiatives such as expanding green areas, reducing greenhouse gas emissions, being carbon neutral, recycling, and/or zero waste production.
• Promote recycling practices and reduce the use of single-use packaging amongbusinesses.
Priority 4: Effective Governance
• Encourage businesses to implement anti-corruption practices such as "whistle- blowing" within their organizations.
• Ensure existence and active participation of independent board members in SOEs
Priority 5: Safety and Peace
• Encourage businesses to educate employees about harassment at work, toxic people/environment, and emotional abuse.
• Encourage businesses to join initiatives like "Call Umida" which provides a temporary safe place for victims of stalking, harassment, and violence.
In conclusion, the government of Uzbekistan can play a crucial role in encouraging businesses to implement CSR initiatives that align with the priorities of the "Uzbekistan-2030" strategy. By doing so, businesses can contribute to the achievement of the strategy's objectives while also benefiting from increased customer trust and loyalty, improved brand reputation, and potential cost savings from more sustainable business practices. Key Takeaways:
• Governments can enable CSR to effectively support economic growth and sustainable development by raising awareness, providing policy incentives, collaborating with businesses on national priorities and monitoring impact.
• Companies should align CSR activities with their core competencies and strengths to maximize social impact and business value. Partnerships with non-profitsand the government can enhance CSR programs.
• CSR in developing country contexts should emphasize inclusive human capital development across company value chains, as building national skills and capacitiesdrives growth.
Conclusion. CSR, when effectively integrated into the business models of Uzbek companies, can catalyze transformative change. It encourages businesses to operate not only with profitability in mind but also with a conscientious commitment to social and environmental well-being. The implementation of CSR strategies can lead to multifarious benefits: fostering sustainable business practices, promoting ethical labor standards, and contributing to community development. Moreover, CSR initiatives can act as a bridge between the private sector and the wider societal goals outlined in the "Uzbekistan-2030" Strategy, ensuring that the growth is not only economic in nature but also holistic, encompassing improvements in education, healthcare, and environmental conservation.
References
1. Mirziyoev Sh. M. On the Strategy "Uzbekistan -2030" Decree dated September 11 2023, https://lex.uz/ru/docs/6600404.
2. Ataniyazova Z.A., Islamov B.A. Potential benefits of Corporate Social Responsibility: foreign outlook in context of Uzbekistan. In the journal "International Relations", №2 Tashkent, UWED, 2022.
3. Ataniyazova Z.A., Islamov B.A. Corporate Social Responsibility and Environmental Sustainability Governance in Uzbekistan: legislation overview and implementation cases. In the journal "International Relations", №3 Tashkent, UWED, 2022.
4. Sharma, E. and Sathish, M., 2022. "CSR leads to economic growth or not": An evidence-based study to link corporate social responsibility (CSR) activities of the Indian banking sector with economic growth of India. Asian Journal of Business Ethics, 77(1), pp.67-103.
5. Dharmapala, D., & Khanna, V. (2018). The impact of mandated corporate social responsibility: Evidence from India's Companies Act of 2013. International Review of law and Economics, 56, 92-104.
6. Shetty, T. S., & Shreenidhi, B. S. (2018). A Case Study on Corporate Social Responsibility Initiatives with Special Reference to Hindustan Unilever Limited. Anveshana, 8(2), 59-76.
7. Qinkir, S. (2020). Sustainable development through lifelong learning: A good practice about women entrepreneurship from Turkey. Andragoske studije, (2), 201220.
