BDO Georgia Strategy: People Helping People

BDO is one of the largest auditing and business consulting companies in Georgia. It has been operating in the local market since 1999 and offers businesses diversified services that meet their needs. The company’s services include various business, legal, and technology solutions. BDO’s global network covers 164 countries and territories, with 111,307 employees and 1,803 offices. BDO Georgia is part of this international network.

BDO Georgia Partner, Head of Business advisory Maia Khachidze talks about the importance of the Company’s services, sustainability priorities, and European integration.

What services does BDO Georgia offer to customers? What is the Company’s corporate sustainability strategy? What are your priorities for this strategy?

We serve the global economy, offering the best solutions to businesses with an outstanding team and innovative approaches.

The company’s main directions are financial audit and tax consultations; business consulting, which includes various consultations related to corporate finance and transactions; human capital management, combining BDO Academy and e-learning; legal direction – BDO Legal; and business process outsourcing and digital transformation services direction – BDO Digital.

Since 2021, BDO has been a signatory to the UN Global Compact. The Company’s corporate sustainability strategy includes an openly stated commitment to meeting the United Nations Sustainable Development Goals and actionable steps taken in this direction, as well as public awareness, inspiration, and advocacy on sustainability issues.

As part of our corporate sustainability, we implement various measures for education, poverty alleviation, waste management, and reduction of harmful gases, among others, in alignment with the eight goals we have selected.

In 2021, with the support of BDO, the Pshav-Khevsureti educational center was opened in Barisakho. This centre is intended for local community education and ecotourism development. It was followed by an English language course for residents aimed at revitalising the depopulated villages and promoting the economic growth of the local community.

Part of sustainable consumption is collecting and disposing of plastic waste, paper, and used items at BDO for recycling or special disposal. As of April 2023, we have collected and recycled more than 300 kg of plastic.

BDO’s global network is part of the Net-Zero Financial Service Providers Alliance (NZFSPA) and is committed to reducing and neutralising emissions from its operations by 2050 or sooner. Accordingly, all network member companies undertake to collect data on our input of greenhouse gas emissions. This is a complex, new process for us, which BDO’s Global Office supports us in managing properly.

BDO supports businesses that want to make sustainable development part of their daily operations.

Our sustainability services are diverse. We cooperate with companies taking the first steps to transition to sustainable development and with companies already working on this. We help start-up companies assess the risks and opportunities related to sustainable development, understand what needs to be done in this transformation process, and choose the right strategy. We help relatively experienced companies prepare reports according to various standards and provide audit services for their reports if required.

In December 2023, Georgia received the EU membership candidacy status. Why is this success important for the Georgian business sector? And also, as a member of the UN Global Compact Georgia Network, what role do you think corporate sustainability has in terms of integration with Europe?

Receiving candidacy status creates the potential for additional benefits for the economy and business of Georgia, as it was a positive message for international investors to start investing in Georgia, especially because the country is a leader in terms of ease of doing business and low taxes. At the same time, receiving this status would give businesses in Georgia an additional opportunity to cooperate more actively with international donor organisations and financial institutions, promote exports and strengthen Georgia’s position in foreign trade.

However, in the conditions of uncertainty caused by the current events in the country, it is difficult to say how things will develop in this regard. In terms of integration with Europe, corporate sustainability has an important role. If businesses understand their environmental, social, and governance responsibilities and take actionable steps, the country will move closer to European and international standards, contributing to European integration.

Actionable steps include:

• clearly defining sustainability goals and integrating them into the main business strategy.
• making investments in sustainable technologies and innovations.
• mobilising financial resources to ensure sustainability.
• preparing sustainability reports according to international standards, etc.
• improving knowledge in this direction.

It should be noted that at the end of 2023, the European Commission published a report within the framework of which the country’s current state was assessed according to various aspects of sustainability – considering social, economic, environmental, and other factors. The country received recommendations; implementing these recommendations will accelerate the European integration process.

Why should companies implement international human rights, labour rights, environmental protection, and anti-corruption standards? To what extent can small and medium-sized companies implement these standards and cope with the existing challenges?

Implementing human rights, labour rights, environmental protection, and anti-corruption international standards will bring various significant benefits to companies, including risk reduction, operational efficiency improvement, sustainable business growth, etc. In addition to receiving tangible, practical benefits from implementing these standards, an important factor is that, to insure risks, investors pay more and more attention to a healthy corporate environment in a company when making an investment decision. Therefore, for companies to have more access to financial resources from investors and international donor organisations, it is important to improve their reputation by ensuring compliance with international standards, which, in turn, will help the country in its European integration.

Soon, shortly after the legal framework for sustainability reporting is developed, companies must prepare sustainability reports according to the relevant international standards. Therefore, companies must be willing to meet the requirements of sustainability standards to be fully compliant.

Implementing these standards requires significant financial and human resources, so small and medium-sized companies will likely face more challenges. In addition, it should be noted that there is a lack of awareness and qualifications about sustainable development in the country, and the role of the education component is important.

Entering the European Union market is a great opportunity for Georgia’s private sector, but meeting the standards remains challenging. BDO Georgia also works in the field of education. Tell us about BDO Academy, what the main challenge is, and what kind of support you provide to businesses to access the EU market.

BDO Academy was founded in 2016. Our goal is to develop a competitive workforce by offering high-standard certificate training and various learning programs, including finance, management, human resource management, personal skills, accounting, and office programs.

The first challenge for Georgian companies wishing to enter the EU market is to meet or exceed EU standards. These regulations include rules on social responsibility, environmental sustainability, corporate governance, and financial transparency. BDO Academy focuses on these challenges:

• Diverse training programs: our certificate programs ensure organisations’ readiness by meeting each aspect of EU standards.
• Expert-led training: Our instructors use real-world examples to help participants understand and apply theory and practice.
• Tailored corporate training: we provide tailored training programs to address specific challenges associated with EU membership.
• Focus on sustainable development: by incorporating environmental, social, and governance (ESG) principles into all our training programs, we ensure that companies comply with EU regulations and make a positive difference to society and the environment.
• Strengthening of small and medium-sized businesses: we prioritise developing small and medium-sized businesses in Georgia to become successful players in the EU market.
• Empowering women in business: a diverse environment is one of the main principles for BDO, and the presence of strong, professional women in our team is organic, including in managerial positions, information technology, and digital services, where there are still stereotypes of gender superiority in society. The ecosystem supporting gender balance for the BDO team is based on the principled approach of the company, which provides for equal promotion of employees in the process of work, learning, development, and career advancement.

Tell us about BDO Georgia’s plans.

Based on this year’s focus on zero emissions, we will set specific targets and indicators for reducing environmental impact in the coming year with the SBTi (Science-Based Targets initiative). Of course, we continue to create value for society in all areas where we work and can cause positive change. The main driving principle of BDO remains unchanged – People Helping People.