Introduction Severstal today is one of the worlds leading vertically incorporated steel and steel mining companies.

Its assets are present in Russia and USA, in Latvia, Italy, Ukraine, Poland, Brazil and Liberia. Nordgold, Severstals gold business was established in 2007and accorded mines and started projects in Russia, Guinea, Kazakhstan, and Burkina Faso. Severstal is listed on RTS and MICEX and the companys GDRs are traded on the LSE (November 2011 witnessed the fifth anniversary of Severstals listing on the London Stock Exchange). Severstal reported revenue of $15,812 million and EBITDA of $3,584 million in 2011. Severstals crude steel production in 2011 reached 15.3 million tonnes. Unique niche products and high added value products are the main focus of Severstal. Severstal Russian Steel, Severstal International and Severstal Resources are the three divisions by which the companys management structure was modified in 2008. The key asset of Severstal is Cherepovets Steel Mill which is an integrated steel plant having facilities like blast furnace, coking coal, steel smelting, agglomeration and rolling. Thus, Severstal is one of the most modern and powerful enterprise operating in the world. The Company made a Corporate Social Responsibility in the year 2011 which defines commitments to the people towards safety, health, social and environmental responsibility. In 2012, relevant standards and corporate social responsibility have been adopted across all operations.

Severstal is committed to sustained development across the ecological, economical, and social aspects of their work in following manners:HEALTH AND SAFETY The policy of health and safety acknowledged by the Chief Executive Officer of Severstal, Mr. A.A. Mordashov states that the production process of the company, which involves the mining of ore and coal, to production of coke, to steel and pig iron smelting, to the final product of industry which leads into metal products, health and safety is a key priority. Across all of the companies, enterprises and business units that jointly encompass Severstal, health and safety policy is applied and implemented. Severstals aim is to become the leading Russian company in the steel industry by employing the international best in class safety and health practices all over operations and eradicating all fatal accidents by the year 2015. In order to achieve this, a Labour Safety Project has been developed as a key mainstay of the Severstal Business System. Since 2010, the project, which has been implemented, will help deliver enhanced performance from corner to corner on each of the Companys business units by energetically attracting all employees and strengthening a culture of safety based on personal duty and recognition. Providing safer working conditions, training, and engaging employees are the three parts in which the project is structured. For the development and training of line managers directly at production sites, the company also employs trainers and internal safety. Under Severstal Health and Safety Management System, a comprehensive audit and ongoing analysis system is developed which facilitates monitoring, comparison and assessment across each of the Companys unit in order to improve the companys performance.

PEOPLE Severstal strive to realise the creative potential of their employees and shape the corporate culture based on private initiative, responsibility and professionalism. For their long term sustainable development the key factor is skilled personnel focused on corporate and personal success. In the social sphere the areas of activity include employee rehabilitation, catering and recreation for workers, social support for retirees and elderly, support for mother and children, employee development and training, incentives, insurance and other such benefits. TRAINING Severstal has several programs for training its highly qualified experts. There are special programmes for young resources which are designed to develop young people's interest in engineering and mineral resource industry. These programs are intended for students in

comprehensive schools, training colleges, and technical schools and specialised Institutions of Higher Education. Young resources from the mining division motivating young professionals by offering Student scholarships, specialised classes in secondary schools, new employment support etc. They were commended in nominations for The Best Practice of Vocational Adjustment of Students of Higher Educational Institutions, The Largest Contribution to the Support of Gifted Students and Young Teachers, and The Largest Youth employer from the results of First Rating of Business Partners of Russian Higher Educational Institutions. MEDICAL PROGRAMMES For them employee health is their primary social objective and so the Severstal Health Programme was implemented at Cherepovets in 2002. The main aim of the programme is to improve the availability and quality of medical care, make the healthcare stronger, provide medical care at pre-hospital stage, prevent and avoid diseases, and provide high-tech, stateof-the-art medical care. This programme has helped in preserving and recovering employee health based on regular medical screening. Severstal's on site operating medical unit has 51 attendance stations. Polyclinics, an in-patient clinic and a maternity hospital with prenatal clinic are included at the Severstal's medical unit. The corporate program "Severstal's health" is funded about $20 million by Severstal. Last year more than 34,000 professional check-ups were conducted as a part of this program in Cherepovets to improve labour conditions and diagnostic process was implemented to decrease the incidence of disease among employees. Annually, more than $5 million is spent in Cherepovets to preserve and recover employees health. These funds have helped more than 9000 employees and their children in various health resorts and camps and around 5000 employees went under rehabilitation at the Rodnik health complex. HOUSING PROGRAMME Severstal do their best to help its employees have satisfactory accommodations. It has implemented Corporate Housing Program to build apartments for their employees who have strongly put in their effort for the company's success. The 1st phase was implemented in Cherepovets in 2005-2010. Twenty-six apartment blocks were built for 2,345 families during this period. Severstal's CEO Alexy Mordashov, for the corporate contribution to perk up Severstal Russian Steel employees accommodations, signed a policy on April 2012. In the 2nd phase a 400 apartment building will be prepared in the 4th quarter of 2013. For Severstal employees in St. Petersburg and Leningrad region, a third apartment building was inaugurated in the village of Telman, Leningrad region, in June 2012. The building has 117 apartments and the investment totalled 360 million roubles.

SUPPORT FOR RETIREE AND PENSION PLANS At Severstal, pension coverage is a major part of social policy. Pension plans encourage a positive social climate and realise the potential of its employees. Since the year 2003, a corporate pension program has been into existence for their Russian organisations in collaboration with the non-governmental retirement fund StalFond. Similar practices are being developed by other parts of the company. Blago, a charitable foundation also grants financial support, medical, charitable and social services and for retirees of Seversatl, social programmes.

ENVIRONMENTAL POLICY A positive and responsible approach towards the environment and use of natural resources is one of the important workings for the stable, long-term development of Severstal and its actions towards corporate social responsibility. The following are the key environmental protection objectives by Severstal:An involvement in the reduction of greenhouse gas emission and prevention of contamination of environment, natural resources and energy use optimization, managing waste efficiently. The company develops and implements efficient management system under all applicable requirements of environmental law strictly with due regards towards best international practices. The first company in Russian metallurgical industry to that satisfies ISO 14001 international standards was Severstals Cherepovets, because of its implementation of developed environmental management system. The international standard ISO 14001 also certifies the Cherepovets Steel Mill, SNA Dearborn, Karelsky Okatysh, and other enterprises of Severstal because of their environmental management systems. Severstals construction and modernization project shows its responsibility towards the environment at its forefront. For instance, at the Cherepovets still mill, the improvement of the No.7 coke-oven battery scheduled for 2011-2013 will reduce the dust emission by 289 tons per year by involving dust free coke pushing. The development of a system for constructive cooperation between work collectives and governmental authorities, the people and expert enterprises in handling environmental issues, and business partners are supported by Severstal. Managers at Severstal work in partnership with RUIE Committee on Industrial, Environmental and Safety of Process. The company executes research and projects in the area of climate change and to lessen dangerous atmospheric emissions by working with WSA (World Steel Association). In order to minimize the unfavourable impact of operating activities on the environment and making sure that the resources are used efficiently, Severstal implements a big-scale action

plan. In the year 2011, a total amount of USD 74 million was allocated for the execution of the environmental program. In early 2012, the Russian Union of Industrialists and Entrepreneurs awarded Severstal with Environmentally Responsible Business award. Severstal was recognized as best among all the members of Russian Union of Industrialists and Entrepreneurs having practiced environmental protection efforts.

COMMUNITY Towards community Severstal's cooperation has been there in areas such as employment and occupational guidance, youth policy, health care and support of culture and sport, as well as unprotected people. The main avenues of support and commitment of the parties are set in agreements by Severstal and the regional authorities. CHILDREN AND FUTURE One of the most acute social problems in Russia is child neglect. The figure of orphans in the country is growing every year and has reached approximately 74,000 which is 3% of the total child population. Severstal initiated and implemented a unique program, "Road Home Program to prevent child neglect and social orphan hood in 2006 in Cherepovets. This program provides foster care for orphaned children. It focuses on finding the way out to the underlying problems resulting in orphan hood and ignorance of underage children, and catastrophe in the family relationship. Like, the Foster Parents School helps those people who would like to take a child into foster care. It also focuses to prevent foster children abandonment. There is also a Childhood telephone hotline and Psychological advice service where the residents of the region can get professional psychological help or information on the available social services. This program was started as a joint of Severstal, social and psychological workers and local authorities from a non-profit organisation in Cherepovets. It has been given the status of a regional program in Vologda region in June 2009. The President of Russian Federation has initiated Road Home and it has received a grant from the foundation to support children in difficult life situations. So, the funds to prevent child neglect and social orphan hood in Vologda region is now made available from three sources- regional budget, funds from Severstal and from Foundation for Support of Children. In Russia, today Cherepovets and the Vologda region are among the best examples of a successful state-private partnership in resolving social orphan hood issues and this has been acknowledged by the various experts. With the new approach towards social work this program has become so unique and especially by the efforts of. The authorities (co-financing-regional budget, the Mayor who is

heading the Cherepovets part of the program and the Division for Labour and social Development of the Vologda region). The business (program originator and donor-OAO Severstal). Society (as participants and organisers educational and healthcare institutions, non profit organisations, social security bodies). The result of this unique program is- More than 10,000 people obtain competent psychological, financial and social assistance and of those more than 5,000 people receive free assistance through this program every year. Since 2007, 82 cases of newborn abandonment have been prevented, since 2007, 88 children have been adopted by graduates of our school for Adoptive Parents, and not even a single child has been sent back to orphanage, since 2008, 2,822 minors have been saved from life and health endangering situations by our social EMS service.

CULTURE AND ART Over the years with Russia's leading museums and theatres, Severstal has worked in a number of rewarding collaborations. Some of the highlights of their charitable activities are as follows:Museums Since the year 2002, Severstal has been present on the Board of Trustees of Tretyakov State Gallery. Every year they back some of the greatest exhibition in the gallery. For example- In the year 2010-2011, the gallery hosted A. Deineka. Work, Build and not Whine!, The Whole World is a Theater. Prints from F.M. Larionov's Collection and Russian painter Boris Grigoriev. Since 2009, Severstal has also been supporting and helping the Childrens Arts Workshop Gallery on Krymsky Val. Since the year 2004, Severstal has been working and following up with the Russian Museum. Over the time, it has helped and supported a number of exhibitions which include Nikolai Zagrekov. Return to Russia, Marc Chagall, Mikhail Vrubel, Peasant World in Russian Artand Way to Victory. The joint projects between Severstal and Russian Museum in 2010-2011 include Anthem to Labor, Russian Advertising Banner, Saints of Russian Land, A Trace of a Meteor and From Moscow to the country's outskirts exhibitions. Theatre and Music Bolshoi Theatre and Severstal has been into partnership since long decade, which culminated their backing of the premier ballet performance of The Nutcracker in 2011. This premier was known as the symbolic event for the Russian culture and international theatre.

Many events including the popular Moscow Easter Festival has been supported by Severstal by working with Mariinsky Theatre since 2003. VOICES, the First International Festival of Young European Cinema was continuously supported by Severstal in 2011. The event took place in Vologda and Cherepovets for the second time. The festival is swiftly becoming an important land for young independent European cinema and a major part to pan-European culture. The annual Golden Mask Theatre Festival in Riga is also been supported by Severstal since 2006. The top performances in this festival are also brought to Cherepovets since 2010.

SPORTS Severstal is determined towards a healthy life-style among its employees and their families by supporting the development and encouragement of sports. Sports events are organised by Severstal for their employees and the residents of the areas or regions where their operations are located. It also funds the maintenance of the sports objects. They also sponsor certain sports clubs and federations for example- Dynamo womens volleyball, Russian Chess Federation, and also the Severstals ice hockey team. The Russias application for the Winter Olympic Games in the town Sochi which is yet to be held in 2014 was also supported by Severstal.

CONCLUSION Severstal being a big company has responsibly played a very important role towards the Corporate Social Responsibility practices. Having started its social activities since early 2000s, it has never taken a step back towards the welfare of the society; rather it has always taken a step forward and has been increasing its Corporate Social activities. Participating in various divisions for example- Health and Safety, Environment, People, Medical Programmes, Housing Programmes, Pension Plan and Retiree Support, Community, Children and their Future, Culture and Art, Theatre and Music, Sports; it has covered all the important ingredients that are required for building up an healthy and lively environment for people and nature. Supporting and helping all the above stated programmes, it has also increased its respect and value among all its stakeholders. People of the society have also taken a step forward in order to support the society by investing and becoming a shareholder of Severstal. Severstal has also become an example and motivation for other companies to realize and understand that one should not be focused on making money but should also become socially responsible and support the nature/environment we live in.

RECOMMENDATION Severstal being a Steel manufacturing industry, it should focus on bringing in new methods for saving energy which is consumed for the manufacturing of steel. They should try bringing in hydro power plants which will implement in expansion of the firm in a different division and shall also help them saving cost of electricity in making steel and shall also solve the electricity problems in the nearby towns if any. Environmental pollution is a major problem today faced by society and nature. Severstal should invest and implement new technologies which shall reduce the emission of harmful gases and reduce water pollution, further creating an Eco-friendly Environment.