July 18, 2024
Corporate Social Responsibility During Wartime: Leobit’s Experience
Leobit is a software development and outsourcing company that helps startups and established businesses from the USA and Europe create innovative technology products. The company operates across various domains with the most profound expertise in fintech, sportstech, proptech, healthcare, media, and education. Leobit’s primary tech stack covers .NET, Web, Azure, and AI. Since 2023, it has been actively integrating Generative AI solutions to enhance internal processes within the company as well as for the clients. Leobit builds client relationships founded on transparency, trust, and with a focus on long-term cooperation.
The greatest value of Leobit is its employees, currently numbering 150+. The company believes that the combination of smart and caring individuals, mature and flexible processes, along with a philosophy of transparency and true dedication, directly impacts the success of clients, which is the team’s primary goal.
Even before the start of full-scale war, the company had been involved in several social projects. Leobit firmly believes that businesses should prioritize social responsibility. Therefore, since February 24, 2022, assistance has been significantly increased and has become systematic. In our interview, Oleksa Stelmakh, CEO of Leobit, provides his observation regarding the changes within the company since the start of the large-scale war and shares insights into the company’s experience in developing CSR projects.
How has the company’s work changed since the start of the full-scale war?
We’ve become more global because we’ve acquired our first international employees. However, we remain a Ukrainian company. First and foremost, a Lviv-based company. Our name, Leobit, is not without reason.
After the onset of the full-scale invasion, some of our employees left the country. Eventually, most of them returned, and currently, up to 5% of Leobit’s employees are based in other countries. After the first shelling, it became evident we needed to ensure conditions for uninterrupted company operations amidst the risks of power outages and internet disruptions. Given our commitment to fulfilling agreements with clients and meeting deadlines, we decided to open a new office to mitigate potential risks and ensure continuous workflow. In 2023, after completing all renovation work, we relocated to a new address at 108 Stryiska Street, reaffirming our stance that businesses should remain in Ukraine, continue operations, pay employee salaries, taxes, and contribute to the national budget.
Despite the challenges, we managed to retain 85% of our clients and even started cooperation with new strategic clients in 2022, following the invasion. While we are open to growing teams in Poland and other European countries, our primary focus remains on developing our delivery capabilities in Ukraine.
Unfortunately, we concluded 2023 without experiencing growth. However, we remain committed to our company’s strategic realignment, which prioritizes building robust processes, expertise, and R&D, particularly in the field of AI.
While our soldiers defend Ukrainian land, we continue doing what we do best: developing superb and innovative technology solutions to support the needs of the army and volunteers through our donations.
How did the first wartime initiatives arise, and what projects do you currently support?
Before the full-scale invasion, we had a series of social projects:
- Supported the Busk Children’s Home “Good Heart”
- Assisted the NGO “Emmaus Oselya”
- Opened a new laboratory for the Department of Information Systems and Networks students at the Institute of Computer Science and Information Technologies at Lviv Polytechnic National University
But, of course, after the full-scale invasion, our main priority became supporting the Armed Forces of Ukraine (AFU) and volunteer initiatives. These donations not only helped us navigate the chaos of war but also infused our business with a deeper sense of purpose. Perhaps for the first time, work in IT acquired a somewhat sacred meaning. This turned out to be our contribution to the ongoing struggle for victory. While our soldiers defend Ukrainian land, we continue doing what we do best: developing superb and innovative technology solutions to support the needs of the army and volunteers through our donations. With joint charitable efforts, we have forged a unity around shared values and a common goal – the victory of Ukraine.
The first donations were made on February 24th to the Armed Forces of Ukraine (AFU). Initially, we directed funds to acquaintances and various fundraisers that crossed our paths. Later on, we made more systematic contributions to the Serhiy Prytula Charity Foundation and the Come Back Alive Foundation. We began actively supporting mobilized employees from our company, facilitating the purchase of medicines for the 8th hospital in Dnipro. To this day, every month we continue to receive requests for specific lists of necessary medicines, which help alleviate the pain of fighters, save lives, and support those who have undergone complex surgeries. The demand for medicines during the war remains exceedingly high, and Leobit is dedicated to providing our defenders with the necessary medication.
In addition, for a long time, we have been providing assistance to the 128th Separate Mountain Assault Transcarpathian Brigade by purchasing necessary items and ammunition for the front lines. Every month, we receive a list of what the assault troops need, procure, and send it to them.
Furthermore, we have collaborated with other IT companies on several projects. For instance, at the end of 2023, in partnership with TechMagic and Devsperation, we purchased an excavator for the Azov regiment.
We also actively support smaller fundraising campaigns organized by volunteers from our company. Among these smaller projects, we participated in the “Coffee for the AFU” initiative by Taras Stadnytskyi, the collection for the 13th brigade of the NGU “Khartiya,” and several fundraisers for FPV drones. In larger initiatives, we contributed to the purchase of the UAV Shark, where, alongside Leobit, nearly ten other companies made donations. This project was initiated by the Lviv IT Cluster.
While it’s challenging to enumerate all the projects, solely for Leobit’s initiatives, the company and its employees have already donated over $400,000. Additionally, many of our employees are actively engaged in volunteering and spearheading separate initiatives and donations.
While it’s challenging to enumerate all the projects, solely for Leobit’s initiatives, the company and its employees have already donated over $400,000.
Which Lviv IT Cluster Victory projects did you support, and why did you decide to get involved?
When we began actively donating, the question of choosing a charitable fund arose. Our criterion for selection was the maximum efficiency of the donated funds. In other words, when we contribute to initiatives like providing body armor, we want assurance that the right equipment is purchased at the optimal price and provided to the brigades that need it most.
The Lviv IT Cluster’s projects were exactly the kind we wanted to join. Firstly, each initiative focused on critical aspects – initially, such as body armor, and more recently, on protecting the western region from Shahed drones. Additionally, the Lviv IT Cluster facilitated the unity of various tech companies as a single community, enabling joint action towards the most pressing issue of today – working for victory. Overall, we participated in six Lviv IT Cluster projects, contributing a total of approximately $55,000. These projects include Sky, Vision, Victory, Shark, Mental Health Center, and Shakhedbusters.
Why is it important for companies to create socially responsible projects, and how do they impact corporate culture?
Systematic CSR projects during wartime are extremely important. In my opinion, nowadays everyone bears the responsibility to contribute as much as possible to supporting the army and volunteers. However, it’s vital to remember that vulnerable groups also desperately need our support. Once, we faced the challenge of prioritizing projects: Shark – fundraising for UAVs to deal the most damage to the aggressors, or Mental Health Center – a project for the psychological rehabilitation of children. Ultimately, our employees chose to support both. We believe that alongside supporting the army, we must also prioritize the emotional well-being of the population, especially children affected by the war. Our company understands the critical importance of ensuring the country’s security and supporting its defense capabilities. Still, we also recognize the importance of investing in the future to help the younger generation cope with psychological traumas.
Support for military and social projects reflects our values, our belief in the Armed Forces of Ukraine, and our understanding of corporate social responsibility as a means to address not only the immediate needs of the army but also to contribute to the long-term well-being of Ukraine.