06-2

Interaction with stakeholders

Realizing the principle of active dialogue with stakeholders, the Company strives to ensure the highest level of openness and transparency of its operations. The Company maintains active communications with all stakeholders, providing timely information on all aspects of its activities, responding to requests and applications of stakeholders.

The approach of Transtelecom JSC to the interaction with stakeholders

Interaction with stakeholders is a guarantee of the necessary conditions for the creation of long-term value, achievement of strategic goals and the formation of a positive reputation of Transtelecom JSC. Constructive relationships building with external as well as with internal stakeholders allows for more equitable and sustainable social development, better management of risks and reputations, and a comprehensive assessment of the business environment and the market. It is important for us to know how the stakeholders attribute the Company, what their needs and expectations are from business and social, environmental and charitable initiatives.

Social partnership, mutually beneficial cooperation, respect, openness and trust are the basic rules that guide the Company in the process of any interaction with stakeholders.

The basic principles and priorities of interaction with stakeholders are covered by the Company's corporate documents: the Code of Business Conduct and the Corporate Governance Code. Transtelecom JSC through the creation of new and constant improvement of existing mechanisms and procedures for corporate governance, strives to ensure the protection of rights and harmonize the interests of all stakeholders.

In accordance with the action plan to improve corporate governance, all stakeholders of the Company will be covered by the Stakeholders Map where the degree of influence of a particular group is indicated. Thus, the Company plans to allocate a "near" and "long" circle of stakeholders depending on whether they have a direct or indirect impact on the Company's operations, as well as on the influence the Company has thereon.

The approach to interaction is based on the following principles:

  • regular constructive dialogue;
  • partnership;
  • mutually beneficial cooperation;
  • confidence and sincerity;
  • publicity and transparency;
  • fulfillment of obligations undertaken.

Key stakeholders of the Company are employees, trade unions, shareholders, suppliers, consumers, government agencies, the media and local communities.

The approach of Transtelecom JSC to the interaction with stakeholders

Shareholders and investors

The Company is aimed at constant development and the increase in its value in the interests of shareholders. The Company follows the best practices of corporate governance and cares about its goodwill. The Company provides all shareholders with the same access to information about the Company and its financial position, and also respects the absolute equality of shareholders' rights. The main sources of information are mandatory disclosure documents, Annual Report, financial statements, corporate Internet website.

According to the Charter of Transtelecom JSC, the Company is managed by the General Meeting of Shareholders. The Board of Directors and the Management Board of the Company observe and protect the rights of shareholders. The owners are interested in the financial results of the Company, but do not lose sight of the non-financial indicators that testify to the quality of the Company's management, such as corporate governance, relations with customers and suppliers, industrial safety and contribution to the development of local communities.

Personnel

The interaction between the Company and the personnel is aimed at the development of human capital and the formation of relations on the basis of cooperation..

Employees' salaries, social package and social guarantees, career growth, security and working conditions fully comply with the norms of the legislation of the Republic of Kazakhstan, are regulated by the employment contract, the Code of Business Ethics and the Personnel Policy of Kazakhstan Temir Zholy NC JSC. The Company appreciates the contribution of each employee and builds relations with personnel based on respect and cooperation, encouraging initiative, responsibility and achievement of ambitious goals. These principles help employees improve their efficiency and achieve high professional results..

In 2017, the Company paid special attention to personnel involvement, satisfaction and loyalty.

The results of employees' involvement studies help identify pressing problems and affect the situation in advance. In the face of increasing competition, qualified and motivated employees are the driving force behind the development and maintenance of sustainable business processes, so the Company plans to continue working in this area.

Suppliers and consumers

The Company's long-term success is impossible without a comprehensive consideration of the external factors surrounding the Company. Key external factors include the sustainable development of suppliers and consumers.

The Company is a reliable and conscientious partner and timely fulfills its obligations to suppliers and consumers. Transtelecom JSC adheres to the principles of transparency, fair competition and anti-corruption. The Company does not accept unscrupulous methods of competition and does not participate in collusion. The Company is focused on long-term business cooperation and provides its partners with all the necessary information, remaining open to dialogue and taking into account the position of the second party.

According to the State Standards of the Republic of Kazakhstan and standards of the Corporate Standardization System, the Company regularly monitors the quality of services.

Government bodies

The Company strives to build and maintain stable and constructive relationships with state authorities and local self-government based on the principles of responsibility, good faith and respect for mutual interests. Transtelecom JSC actively participates in committees and working groups on making amendments to the laws and legislative acts of the Republic of Kazakhstan, cooperates with the Kazakhstan Association of Automation and Robotics. The Company takes an active part in the preparation for Astana-Expo 2017 international exhibition, in pursuance of the Action Plan approved by the Resolution No.180-1526 of the Akim of Astana city dated September 15, 2014. The Company implements projects for Astana entry the rating of 50 smart cities of the world etc.

The Company does not support political parties and politicians, the Company's voluntary contribution to the welfare of the country, in addition to the legislative minimum, is a large-scale charitable and sponsorship activity.

Local communities

Local communities have a significant impact on the Company, forming the environment and being a source of key resources for the Company. Transtelecom JSC implements a number of projects related to education, job security, cultural events, health care, infrastructure development, landscaping of regions for local communities. Company's interaction with local communities is a systematic activity that positively influences the atmosphere and psychological climate in the presence regions.

In 2017, the Company 100% ensured jobs provisions to the local population.

Mass media

While observing the information disclosure rules of Transtelecom JSC, the Company maintains a high degree of transparency, and also maintains a constructive dialogue with the media.

The most important information dissemination channel available to the largest number of stakeholders is the official website of the Company (http://www.ttc.kz), in particular, the "About company" section of the site (http://ttc.kz/ru/About/press-center/mass-media-about-us/). These resources provides you with an opportunity to review the latest news of the Company, financial and production indicators, reporting and other useful information about the Company's activities, ­ as well as papers that regulate the activities of the management and control bodies of Transtelecom JSC, such as: Charter, Regulations of the Board of Directors, Regulations of the Management Board. Being committed to the principle of equal access to information for all stakeholders, Transtelecom JSC posts the information on the official website in three languages: Russian, Kazakh and English.

Inviolability of the consumer's privacy

Transtelecom JSC places high premium to the issues of inviolability of private life and protection of information about customers.

The Company has determined the circle of employees who have authorized access to the data of Company's consumers and customers. Moreover, the Company considers the client base as a strategic and commercial secret.

Information disclosure about the client database to Transtelecom JSC's third parties is made only at the request of the authorized bodies of the Republic of Kazakhstan.

During the reporting period, the Company did not have any instances of customer data loss, and there were no complaints regarding violation of privacy of consumers and loss of data on consumers.