Social Policy

We acknowledge our social responsibilities and conduct our business with due consideration of public expectations and ethical standards.

We are committed to building mutually beneficial relationships based on trust with all parties: investors, partners, employees, society and government.

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Responsibility towards Investors

Our aims include efficiency, added value and benefiting our shareholders.

Environmental Responsibility

We monitor our activities for compliance with environmental standards. In our work, we care for the nature by:

  • reducing our energy footprint and natural resources (including fossil fuel) consumption thanks to the improved insulation in our warehouses;
  • recycling all waste with specialized organizations according to the environmental requirements;
  • using environmentally friendly materials;
  • saving the energy using the LEDs;
  • reducing the paper footprint and embracing the paperless technology.
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Responsibility towards Partners

We regard our partners with utmost respect and build our relations on the principles of mutual benefit, cooperation, trust and honesty, ensuring that the products we sell are of the highest quality and our services are on par with it.

The quality of our services is managed using the TQM (Total Quality Management) methodology.

  • We utilize high standards in selecting the manufacturers and predominantly receive direct shipments from them.
  • We guarantee appropriate storage and transport conditions, rapid information exchange and immediate response in case of product defects.
  • To improve our service level even further, we conduct customer surveys and polls regarding our services on a regular basis.
  • We aim to minimize operating costs, to ensure high profits for us and reliably low prices for our customers.
  • We provide transparent business reports composed according the IFRS requirements.
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Environmental Initiatives

The company performs internal monitoring to meet the environmental standards:

  • Routine industrial safety checks at hazardous production facilities, scheduled preventative maintenance and repair in accordance with operating instructions and registration certificates for engineering systems. Throughout 2018, there were zero accidents and incidents at the company's facilities.
  • Systematic inspection of the buildings' load-bearing and enclosing structures in order to discover defects and problems timely. In 2018, our facilities were operated as expected.
  • In accordance with the requirements of Federal Law No. 61- FZ «On the Circulation of Medicines» dated 12 April 2010, substandard medicines are to be destroyed. Apart from batches of medicines deemed to be defective by federal law, the company’s branches dispose of expired goods and goods that are unfit for use for other reasons. In 2018, 2,031 items (12,145 packs) of medicines deemed defective by federal law and 3,214 items (446,710 packs) of expired products were withdrawn from circulation and destroyed. In total in 2018, 5,245 (458,855 packs) of expired and defective goods were disposed of at a cost of 451,159.49 RUB. Medicines are destroyed by an organisation with the corresponding licence according to the rules established in Russian Governmental Decree No. 674 dated 3.09.2010 «On the approval of rules for destroying substandard medicines, forged medicines and counterfeit medicines».
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Charity

«Katren carries out charitable activities through its foundation set up specifically for this purpose. The Katren Charitable Foundation operates with funds deducted from the profits of the company, as well as donated by employees and Katren Foundation partners.

The main activities of the Katren Foundation are:

  • donating medicines and hygiene items to orphanages (Health for Children project);
  • making quality education more available to orphans, supporting the orphanages («I Want to Learn» project);
  • facilitating foster care and adoption (Gallery of Hearts project).

You can learn more about the foundation's projects and their implementation in Russian regions on its website.

Acting in the interests of business and society, Katren builds social interaction with a wide range of stakeholders – employees, investors, partners, customers of products and services, non-governmental organizations, communities and the government.

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Responsibility towards Employees

Our relationships with employees are based on the following principles:

  • The company respects and honors personal, social-economic, cultural and political rights of our employees
  • Relations with each employee are based on mutual respect, trust and honesty
  • The company bans any discrimination against employees and potential employees
  • We provide a safe working environment for all staff, systematically monitor and minimize risks that may be harmful to employees’ health.
  • The company ensures confidentiality of employees' personal data, including employment records, income, vacations, promotions, and other personal data. Such information is disclosed to the Company's employees strictly on the need-to-know basis.
  • The company strives to create a healthy psychological climate on the job and promotes ethical conduct among employees.

It is of vital importance to us that the Katren Group companies be reliable employers to their staff and comply with the existing labor legislation. We are committed to provide our employees with:

  • competitive and timely paid compensations
  • insurance premiums for pension programs, health and social security paid timely and in full
  • safe working conditions
  • confidentiality of employees' personal data, including employment records, income, vacations, promotions, and other personal data
  • social support
  • personnel training and education
  • unified corporate training programs
  • voluntary health insurance options

In 2018, Katren JSC continued its partnership with Sogaz insurance company under a voluntary health insurance agreement for employees in order to increase productivity, save working time, attract and retain highly skilled professionals. The insurance policy includes outpatient and inpatient care. According to this agreement, any employee of JSC Katren is entitled to receive medical care under the Outpatient Service program. This contributes greatly to the consolidation of skilled workers in the company, strengthens their loyalty and commitment.

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Health and Safety Initiatives

One of the Company’s main tasks is to ensure the health and safety of its employees in the workplace:

  • all warehouse workers are provided with certified personal protective equipment in accordance with approved standards;
  • the actual conditions in the workplace are determined based on special assessments of labour conditions. In 2018, special assessments of labour conditions were carried out at 481 workplaces. All workplaces were rated in accordance with the 1st (optimal) or the 2nd (acceptable) class of employment conditions;
  • all warehouse employees undergo an annual medical examination. At the beginning of the autumn-winter period, warehouse employees are given voluntary flu vaccinations;
  • no occupational diseases were identified among employees in 2018.

Since 2013, the Company has been implementing an optional medical insurance programme in order to increase productivity, save working time, and attract and retain highly qualified specialists. All Company employees who have completed their trial period are covered under an optional medical insurance programme. The policy amount is determined by length of employment.

Each employee is given a health insurance policy for outpatient care and treatment. In addition, the Company has a common fund to finance expensive operations for Company employees. In 2018, the Company spent around 14m RUB on optional medical insurance services for employees.

As in previous years, the following programmes were available to staff:

  • Health resort treatment programme. 
    The programme applies to employees in the warehouse divisions of our branches. The number of holiday packages is determined for each branch depending on the number of employees. In 2018, 50 employees from the Company’s warehouse divisions took advantage of the health resort treatment programme for a total amount of 1.6m RUB.
  • Assistance programme for severe illness and emergency hospitalisation. 
    The Company has a common fund to finance emergency hospitalisation or the treatment of serious diseases. In 2018, employees were provided medical assistance amounting to more than 2.2m RUB under the «In-patient care: Emergency and planned hospitalisation» programme.

In order to ensure the programme’s widespread adoption, an internal audit is conducted annually throughout our branches. In 2018 these inspections were carried out in the branch offices of Irkutsk, Krasnoyarsk, Yaroslavl, Orel, Tyumen and Berdsk.

During inspections, we pay special attention to risk elimination in hazardous areas as well as to the quality of personnel training, including checks on occupational safety knowledge between employees.

Our aim is to substantially reduce the risks in this field, while constantly improving our occupational, industrial and fire safety procedures.

Occupational Safety Management System

The Occupational Safety Management System is an integral part of the corporate management. Its goal is to prevent occupational injuries and illnesses among the company's employees. This work is carried out by the company's departments in collaborations with occupational safety representatives of the workforce.

One of the main organizational measures to prevent job-related injuries and occupational diseases is effective safety training.

Employees study regulatory materials as part of a specifically created training program, and are instructed on safe working procedures and techniques.

According to the amended federal legislation, workplace certification based on working conditions has been replaced by a «Special Assessment of Working Conditions» since the beginning of 2014. The new procedure provides for a set of measures to identify hazardous and harmful factors of the working environment and assess their impact on the employee. This makes it possible to perform an individual workplace safety assessment for each employee and, if necessary, to compensate for harmful and dangerous conditions.

In 2018, special assessments of labour conditions were carried out in the Berdsk, Kazan, Tyumen, Krasnoyarsk and Khimki branches. The inspections discovered the absence of hazardous and/or unsafe working conditions.

Katren JSC employees are issued with personal protection equipment and safety devices in accordance with inter-industry personal protection requirements adopted by the company. All employees have been provided with necessary safety equipment.

Fire Prevention

Throughout 2018, the Company’s administration and subdivisions took measures aimed at maintaining fire safety conditions in their facilities.

Industrial Safety

Industrial safety is ensured at hazardous production facilities by a set of organisational and technical measures:

  • liability insurance against the risk of damage resulting from the operation of hazardous production facilities;
  • the performance of scheduled and preventive maintenance work, technical inspections and examinations;
  • review and revision of industrial safety documentation;
  • industrial safety training and certification for staff working at dangerous facilities; and
  • monitoring compliance with occupational safety requirements regarding the operation of hazardous production facilities.

In 2018, no accidents or incidents occurred at the company’s hazardous production facilities.

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Responsibility towards the Society and the Country

It is our firm belief that a business cannot be not involved in the community where it operates.

Our main business objective is providing quality, reasonably-priced medications to the people. We maintain high quality standards and comply with legal requirements. We create new jobs and make all statutory tax payments to the state budget.

Of no less importance to us is helping the government and society in dealing with social problems by making social investments in education, science and healthcare. We support a number of sport and art projects to help preserve and build on our country’s cultural, historical and religious heritage. In charity, our priority is supporting underprivileged social groups, first of all orphaned children.

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