Тема VII.

THE ROLE OF THE EBC IN STRENTHENING OF ECONOMIC RELATIONS WITH RUSSIA

(Volker Undorf, Chairman of the Board, European Business Club in the Russian Federation)

“The European Business Club (EBC) is welcoming the Accession Countries to the European Union. The EU is Russia’s biggest trading partner and foreign direct investor. After the accession, over 50 percent of the foreign direct investment to Russia will come from the EU, and 55 percent of Russia’ s trade will be with the EU. This shows that Europe is indeed the primary strategic partner for Russia.

In terms of energy provision, Russia is the most important partner for Europe – so you may say we are more or less dependent on each other. That is certainly true from the business perspective, and I believe it will also apply to a certain extent from the political perspective. Therefore, after Russia joins the WTO, which will further strengthen economic ties with Europe, it is possible that this country could also become an associate member of the EU at some point.

While many companies from the Accession Countries are already EBC members, after May, they will gain voting rights in The EBC and have a greater say in our overall management and strategy. The EBC has drawn up a new Charter to reflect these and other progressive changes. Following the Charter’ s approval, we will invite representatives from the Accession Countries to join existing EU company members and to stand for positions on the new Council of National Representatives and Executive Board.

After the accession, the EBC will officially represent 25 countries and significant number of companies hailing from those countries and this will only serve to strengthen the voice of the EBC in lobbying for improvements in the trade and business environment in Russia in the interests of our member companies.

I think that the world "club" in the name of our organization is no longer correct because we have more than 400 hundred members. So the first thing in our plan is a change of name. My proposal is to call it "the European Business Association in Russia (EBAR)," but this proposal must be approved first by the Board and after that by our member companies. This brings about two other important issues that were neglected in the first part, transparency and corporate governance. First of all, this means that any important decision in our organization must be improved by the Board and by our members. The second important point: we must recognize that the backbone of our club or association, whatever its name would be, is the work of Committees. But this has not been fully reflected in organizational frameworks.

My intention is to propose that besides the two legal organs of the EBC, the General Assembly and the Board, an Advisory Council representing member-countries, with one voting member foe each country, should be formed. This means that after the enlargement of the EU in 2004, we will have 25 members on the Advisory Council. I also propose to have delegates from the Committees in the Executive Board. To make my proposal clear, I suggest that the driving force of our association, the Committees, must be represented in the Executive Board by their heads: representatives of member-countries will become members of the Advisory Council: to approve all major decisions we will have the General Assembly. I do believe that this organizational change will make our association stronger in following its aims.

What are these aims?

Primarily, we have to focus on fulfilling the needs of our members, so our major aim is to support our member-companies in any respect of their business in Russia. Thus I see my first duty as chairman of the board in asking our members if they are satisfied with what we are doing, what their needs are and what we should do better. This focus on our members' needs will go hand in hand with the strategic goal of the EBAR which is to improve the trade and business environment in Russia for its members through lobbying and information network activities. It will promote the liberalization of trade and industry in Russia in conformity with internationally accepted norms. The association will contribute to the implementation of the EU-Russia Partnership and Cooperation Agreement, to the achievement of the accession of Russia to the World Trade Organization and to the creation of Common European Economic Space between Russia and the European Union.

A real challenge for the association will be the question of the accession of new countries. We shall have to convince hundreds of companies from these countries that joining us well add value to their Russian business. Consequently, new entrants will add value to our association as regards its capacity and influence in Russia. In the past, the EBC established good working relations with high-ranking Russian government officials from the Presidential Administration, key ministries and state agencies, with both federal legislative bodies and the Central Bank, as well as with regional administrations and national associations. We are going to maintain and enhance these contacts to better understand the position of the Russian government and of the Russian business community in various issues relating to barriers in trade and investment and to convey these to members. We shall continue to present to the respective Russian policy makers problems encountered by our members, recommend and, where possible, negotiate changes in law and regulations to adapt them to European norms.

It goes without saying that we shall also continue to work closely with the Delegation of the European Commission in Russia and EU officials in Brussels to specify major problems facing European companies in Russia, which may be used by the European Commission as input for the official meetings with the Russian Government. It was a great encouragement for me to receive an implicit support from the head of the Delegation of the European Commission in Russia and embassies of the number of EU countries after the election of the new management of the EBC. It was underlined that they are very much interested in enhancing and intensifying cooperation with our business association in the future. It was no less encouraging that when I recently met with heads of EBC Committees and shared with them my ideas on our future work, especially on its transparency and corporate governance, they told me that this is the first thing what they need.”

New developments in the EBC (reorganization)

In October 2004, the European Business Club in the Russian Federation became the Association of European Businesses (AEB) upon registration of its new charter. Voted in by members in the summer, the Charter reflects the AEB’ s growing weight as the representative of European business in Russia after the enlargement of the European Union, as well as its updated strategy and broadened organizational structure.

The new strategy defines the Association’s code of conduct, stipulating its adherence to internationally accepted business norms and corporate governance principles. The strategy also details the AEB’ s principal areas of activity: lobbying European business interests, providing information flows to and between members, networking, contributing to EU-Russia integration.

The new-two board management structure of the AEB includes executive and advisory bodies. The Executive Board is a seven-member team of business leaders chaired by Michel Perhirin, Chairman of the Board at ZAO Raiffeisenbank Austria. AEB members approved Andreas Romanos as their new Chief Executive Officer to manage everyday activities of the Association. The AEB’ s collective advisory board is the Council of National Representatives (CNR), which comprises country-representatives from each EU member state and non-voting representatives of the EFTA and the European commission. Geoffrey Cox OBE, was elected Chairman of the CNR.

Notes:

the European Business Club (EBC) – Европейский деловой клуб (ЕДК)

the General Assembly of members – Общее собрание членов

the Advisory Council – Консультативный совет

the European Business Association in Russia (EBAR) – Европейская деловая ассоциация в России (ЕДАР)

the Board – Правление

member-countries – страны-члены

the Council of National Representatives and Executive Board of the EBC- Совет национальных представителей и Исполнительная дирекция ЕДК

the Association of European Businesses (AEB) – Ассоциация европейского бизнеса (АЕБ)

the Council of National Representatives (CNR) – Совет национальных представителей (СНБ)

the AEB’ s Chief Executive Officer – Генеральный Директор АЕБ

the Executive Board – Правление (исполнительный орган)

Active Vocabulary:

the adherence to corporate governance principles – приверженность принципам корпоративного поведения

to become an associate member of the EU – стать ассоциированным членом ЕС

the code of conduct – кодекс поведения

to welcome the Accession Countries to the European Union – приветствовать присоединение к Европейскому Союзу

trading partner – торговый партнер

to be the primary strategic partner – являться главным стратегическим партнером

to lobby for a proposal – проталкивать законопроект, лоббировать

to lobby a bill through – лоббировать, провести законопроект с помощью закулисных махинаций

implicit [im'plIsit] – 1. подразумеваемый; не выраженный прямо; внутренне присущий 2. безоговорочный, полный

support – поддержка, помощь

to get/to obtain support – получать поддержку

to get no support – не получать поддержки

to enlist/ to drum up somebody’ s support – заручиться поддержкой

to give/to lend/to render support to somebody – оказывать поддержку кому-либо

to command the widest support – располагать самой широкой поддержкой

to alienate support – прекратить поддержку

to bank on somebody’ s support – расчитывать на чью-либо поддержку, помощь

to seek support – искать поддержку

to require somebody’ s support – нуждаться в чьей-либо поддержке

to rally support for something – объединиться в поддержку

to sap support for something – ослаблять поддержку чего-либо

to speak in support of something – выступать в поддержку чего-либо

to voice one’s support – высказаться в поддержку

updated strategy – обновленная стратегия

organizational structure – организационная структура

Exercise 1. Give Russian equivalents for the following:

to approve a proposal by the Board and by the members; to bring about other important issues; transparency and corporate governance; not to be fully reflected in organizational frameworks; to represent member-countries with one voting member for each country; the enlargement of the EU; to propose to have delegates from the Committees in the Executive Board; the driving force of the association; to be represented in the Executive Board by the heads of Committees; to focus on fulfilling the needs of our members; our major aim is to support our member -companies in any respect of their business; to go hand in hand with; to improve the trade and business environments through lobbying and information network activities; to promote the liberalization of trade and industry in conformity with internationally accepted norms; to contribute to the implementation of the EU-Russia Partnership and Cooperation Agreement to the achievement of the accession of Russia to the World Trade Organization and to the creation of Common European Economic Space between Russia and the EU; the structure of the AEB includes executive and advisory bodies; to become the Association of European Businesses (AEB) upon registration of its new charter; the strategy details the AEB’ s principal areas of activity

Exercise 2. Bear in mind the following information on report writing then make up a report of your own on the base of the above-mentioned text:

Report writing

As far as the format (= the general arrangement, plan, design  ) of reports is concerned it is obvious that standardized forms are very helpful. They allow the writer to focus on the details needed and allow readers to scan the data. The right format of a report is of paramount importance since it provides better and quicker understanding. It should be written schematically, divided into sections and subsections which are numbered systematically. Generous use of space and signaling will make a report more readable. In order that your reader can make sense of what you have written follow the "Golden Rules": be accurate, be brief, be clear.

The following format is common in many report:

1. Title (this should indicate concisely the subject of the report);

2. Introduction (it states what you are reporting on, who commissioned the report, an overview of the problem, possibly methods and sources);

3. Body (this presents the main contents of the report);

4. Conclusion and recommendations (the conclusion says what you think about the facts, how you interpret them); recommendations should only be included if you have been asked to do so;

As far as the language is concerned there are certain recommendations of experts in business communication that students should observe the following rules:

prefer the familiar words to the far-fetched; the concrete word to the abstract; the single word to the circumlocution* ; short word to the long. Sentences should be short and clear. Avoid contracted forms of verbs. Avoid colloquialisms* and idioms. "Should" is a useful auxiliary when making recommendations.

The following phrases are typically used:

Introduction:

The report centers on/focuses on/discusses...

The aim/ purpose of the report is...

This report looks at...

In order to prepare this report I studied/visited/interviewed...

The report was commissioned by..., was compiled from the following sources...

Quoting:

According to X... Y said/mentioned/felt that + reported speech

Generalizing:

In general... On the whole...

Summing up:

In conclusion... To sum up... On balance...

Making a recommendation:

In my opinion/view... I would recommend (+ing).

circumlocution* – the use of many words to say sth that could be said in a few words, especially when one does not wish to speak clearly and directly;

colloquialisms* – words or phrases used in normal conversation but not formal speech or writing : on the blink (= not working properly).The washing-machine's on the blink again.

Exercise 3. Translate what follows using the word combinations below then compare with the English text:

(to begin with, first of all, the second important point, whatever its name would be, my intention is..., to make my proposal clear..., I suggest..., primarily, our major aim is..., in any respect, thus, to go hand in hand with, it goes without saying that…, it was no less encouraging …)

Начну с того, что далее называть нашу организацию клубом было бы неверно, поскольку ныне она насчитывает более 400 членов. Так, прежде всего нам нужно сменить название. Я предлагаю назвать ее Европейской деловой ассоциацией в России (ЕДАР). Но мое мнение должно быть сначала одобрено правлением, а затем и компаниями-членами. В связи с этим возникают две серьезные проблемы, которым в прошлом не уделялось должного внимания, – открытость и корпоративное управление. Прежде всего это означает что любое важное решение нашей организации должно быть одобрено ее Правлением и членами. Второй момент: мы должны признать, что костяком нашего клуба или ассоциации – как бы они ни назывались – является работа комитетов. Однако это не было в полной мере отражено в нашей организационной структуре.

Мое намерение состоит в том, чтобы, помимо двух действующих органов ЕДК – Общего собрания членов и Правления, создать Консультативный совет, представляющий страны-члены, в котором каждая из них имела бы один голос. Таким образом, после расширения ЕС в 2004 году Консультативный совет будет насчитывать 25 членов. Я также предлагаю включить в исполнительный орган нашей организации руководителей его комитетов. Наиболее важные решения будут приниматься на Общем собрании членов. Я убежден, что такое изменение организационной структуры сделает нашу ассоциацию более действенной в достижении ее целей.

Exercise 4. Consult the text and supply:

1. objects for the following verbs: to approve..., to bring about..., to recognize..., to be reflected in..., to represent..., to focus on..., to improve..., to promote..., to contribute to..., to add..., to maintain and enhance..., to adapt to..., to specify..., to receive..., to enhance and intensify..., to share..., to be satisfied with

2. attributes for the following nouns: ... issues, ... governance, ... decision, ... point, ... framework, ... member, the ... Council, the ... Assembly, the ... Board, ... force, .... change, ... aim, ... goal, ... environment, ... norms, ... Space, ... challenge, ... countries, ... officials, ... ministries, ... agencies, ... bodies, ... meetings, ... encouragement, ... support, ... management

c) nouns to go with following adjectives: official..., great..., implicit..., corporate..., state..., driving..., important..., ... point, organizational..., legal..., voting..., major..., strategic..., internationally accepted..., real ..., good working..., high-ranking

Exercise 5. Without translating the extract, give the English equivalents for the italicized words and word combinations and render the paragraph:

Каковы эти цели?

В первую очередь мы должны сконцентрировать внимание на удовлетворении потребности членов ассоциации, ибо основная наша задача состоит в том, чтобы помогать компаниям-членам во всех вопросах ведения их бизнеса в России. Так что свой первый долг в качестве председателя Правления я вижу в том, чтобы выяснить, удовлетворены ли наши члены тем, что мы делаем, в чем они нуждаются и как нам следует улучшить работу. Этот акцент совпадает со стратегической задачей ЕДАР – улучшение торгового и делового климата в России для ее членов путем лоббирования их интересов и информационного обеспечения. Эта деятельность должна способствовать либерализации торговли и промышленности в России и их соответствию международным нормам. Ассоциация внесет свой вклад в выполнение целей, поставленных в Соглашении о партнерстве и сотрудничестве между ЕС и Россией, она будет способствовать вступлению России в ВТО, также созданию Единого европейского экономического пространства между Россией и Европейским Союзом.

Exercise 6. Find in the text one idiom with the noun hand and translate the sentence. Study the explanation of some other modern idioms with the word hand, find out Russian equivalents and then translate the sentences bellow:

hand

1. at first hand – obtained etc. directly

2. at second hand – through or from another person

3. at hand (formal) – available; able to be used; ready for use when needed

4. to be hand in glove (with someone) – to be closely associated (with someone), usually in bad sense, for a bad purpose

5. to give/lend a (helping) hand – to help or assist someone

6. to go hand in hand (with) – to be found in close connection(with)

7. to get out of hand – if a situation gets out of hand, it cannot be controlled any more

8. his hands are tied – he is unable to act as he would wish because of something that prevents him

9. have a hand in something – to be one of the people who have caused, done etc. something

10. to live (from) hand to mouth – to be able to get only what one needs at present, without having anything extra to save up

11. hands down – very easily

12. to force (someone’s) hand – to force someone to do something either which he does not want to do or sooner than he wants to do it

Translate the following:

1. I was able to obtain information about the forthcoming project at first hand.

2. I herd the news at second hand.

3. Help is at hand.

4. Some well-known politicians have been found to be in hand in glove with leading gangsters. He is hand and glove with the vicar (A.Christie). He works hand in glove with the writers and the directors (J.O’Hara). [ The idiom was originally hand and glove – i.e. as close as can be imagined.]

5. I’ m always ready to give a helping hand to anyone who needs. When we moved house my brother came to lend a hand.

6. Poverty and crime go hand in hand. She was of those women to whom utter devotion can still go hand in hand with a doubting soul (J.Galsworthy). But hand in hand with the division of physical properties goes the division of capitalist world markets (V.Perlo)

7. Things got a little out of hand at the party and three windows were broken. In his first year at college his drinking got a bit out of hand.

8. My hands are tied as far as going on holiday is concerned as I cannot get away from work until the new manager is appointed.

9. Did you have a hand in the success of the project?

10. Low wages mean a hand-to-mouth existence for many people. My father earned very little and there were four of us kids so we lived from hand to mouth.

11. He’s not very good at chess – you’ll win hands down.

12. I did not want to sack him – but he forced my hand by always being late.[A French idiom, from card-playing.]

Exercise 7. Comment on the following sayings with the word hand using a dictionary if necessary:

1. One hand washes the other.

2. Many hands make light work.

3. A bird in the hand is worth two in the bush.

4. To hand somebody something on a plate.

5. Hand over heart.

6. You’ve got to hand it to someone.

7. To be in good hands.

8. To have one’s hands full.

9. To bite the hand that feeds one.

10. To get one’s hands on (someone or something).

Exercise 8. First translate the italicized word combinations then translate the whole text:

Очень серьезной станет для нас проблема присоединения к ЕС новых стран, так как нам предстоит убедить сотни компаний из этих государств, что вступление в нашу ассоциацию станет весовым вкладом в их российский бизнес. Как следствие, эти новые компании-члены существенно расширят сферы деятельности и влияние ассоциации в России. В прошлом ЕДК наладил хорошие рабочие связи с высокопоставленными российскими чиновниками в Администрации Президента, ключевых министерствах и ведомствах, в обоих высших органах законодательной власти, Центральном банке, а также в администрациях регионов и общероссийских объединениях предпринимателей. Мы намерены сохранить и укрепить эти контакты для того, чтобы лучше понимать позиции Правительства и делового сообщества в России по различным вопросам, касающимся барьеров в торговле и инвестициях, и доводить их мнение до наших членов. Мы продолжим знакомить ответственных за политические решения российских руководителей с проблемами, которыми озабочены члены ассоциации, рекомендовать, если возможно, вести переговоры об изменении законодательства и регулирующих нормативов с тем, чтобы привести их в соответствие с европейскими нормами.

Разумеется, мы также будем сотрудничать с Представительством Европейской комиссии в России и официальными лицами ЕС в Брюсселе в определении наиболее важных проблем европейских компаний в России. Это необходимо для того, чтобы наша точка зрения могла быть использована ЕК в ходе официальных переговоров с российским Правительством. Меня очень порадовала откровенная поддержка Посла ЕС и ряда Посольств стран Европейского союза в России, которую ЕДК получил после избрания его нового руководства. Дипломаты подчеркнули свою большую заинтересованность в улучшении и расширении дальнейшего сотрудничества с нашей деловой ассоциацией. Не менее ободряет и то, что идею открытости ассоциации корпоративного управления поддержали все руководители комитетов ЕДК: это именно то, в чем они прежде всего нуждаются.

Exercise 9. Give English/Russian translation as fast as you can:

1. лоббирование интересов бизнеса, updated strategy;

2. to detail principal areas of activities; повышение эффективности работы отраслевых комитетов;

3. обеспечение информационных потоков для членов АЕБ, the collective advisory board;

4. internationally accepted business norms, новая стратегия содержит кодекс поведения;

5. после государственной регистрации нового устава, to speak in support of something;

6. создание условий для делового общения, to reflect the growing weight;

7. to be elected Chairman of the Board, содействие процессам интеграции;

8. рассчитывать на чью-либо поддержку, to maintain and enhance business contacts;

9. ослаблять поддержку чего-либо, to bring about other important issues;

10. to be the primary strategic partner, заручиться поддержкой;

11. to go hand in hand (with), вести переговоры об изменении законодательства