FORMATION OF A CORPORATE SOCIAL RESPONSIBILITY STRATEGY OF COMPANIES IN EU COUNTRIES

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

PDF
Published: Aug 1, 2019
https://doi.org/10.30525/2256-0742/2019-5-3-82-90

  Andrii Kovban

http://orcid.org/0000-0002-0272-1798

  Inna Kohut

Abstract

Business cannot act in isolation from society since it itself is a part of society. The fact that corporate social responsibility (hereinafter – CSR) has become a global business concept that defines key ideas and a modern format for entrepreneurship is no longer questionable. Every year, more and more companies are joining the initiative of non-financial reporting, which acts as a “business card of a social image.” The presence of social and ethical business standards greatly contributes to the formation of a positive business image and increases corporate competitiveness. At the same time, the growth of social, environmental, and economic problems of a global scale raises public expectations and, therefore, requirements for socially responsible activities of companies, inducing them to continuously improve the quality of CSR practices, finding innovative approaches to solving socially important problems, which is reflected in the global development trends of socially responsible business. The formation of models of state regulation of corporate social responsibility (CSR) in developed countries took place over several decades and, at the present stage, they are characterized by a high degree of development. The author aims to study the genesis of development of models of state regulation of corporate social responsibility, analyse principles of the formation of social responsibility strategy, and propose areas for improving CSR for companies operating in the European business space at the modern development stage in view of implementing the concept of sustainable development. After analysing the national models of CSR state regulation, we note that in the research of scientists, there from three (American, European, Asian) to seven models: American (US), European (Continental), British, Scandinavian, Asian (Japanese), African, model of BRICS countries or more. But, of course, the US model of CSR, formed in the specific conditions of the free market, is the largest. Key conclusions of the involvement of European companies in the implementation of the CSR strategy are as follows: involvement depends on the size of the company (CSR policy is applied by 48% of small and 65% of medium-sized companies); the implementation of the CSR policy does not depend on the company’s field, but there was a geographical discrepancy (for example, 33% of the SME in France and 83% in Finland); among all companies, 50% use the CSR strategy; only 8% of the EU company receive privileges or subsidies from the state for implementing the CSR policy; more than 75% of SME representatives among respondents can determine the benefits of corporate social responsibility. In the majority of the EU countries, state programs of support and stimulation of the abovementioned processes, in which the state defines socially responsible behaviour for business, engages private and public sector companies in the joint fulfilment of socially important tasks, stimulates business to socially responsible activity, are developed and operate. On the basis of determining the factors influencing the formation of social responsibility strategy and matrix of the appropriateness of SRB introduction, areas for improving strategic management based on social responsibility standards were formed.

How to Cite

Kovban, A., & Kohut, I. (2019). FORMATION OF A CORPORATE SOCIAL RESPONSIBILITY STRATEGY OF COMPANIES IN EU COUNTRIES. Baltic Journal of Economic Studies, 5(3), 82-90. https://doi.org/10.30525/2256-0742/2019-5-3-82-90
Article views: 866 | PDF Downloads: 446

##plugins.themes.bootstrap3.article.details##

Keywords

corporate social responsibility (CSR), national models of CSR, social business strategy, sustainable development, matrix of appropriateness, CSR strategy directions

References

Analytics (2017). Social responsibility of business. Information and analytical material. Retrieved from: http://www.svb.org.ua

Antoshko, T. R., Krush, P. V., Tyulenyeva, Yu. V. (2013). Vprovadzhennya korporatyvnoyi sotsialnoyi vidpovidalnosti na promyslovykh pidpryyemstvakh [Implementation of corporate social responsibility at industrial enterprises]. Kyiv: NTUU "KPI". (in Ukrainian)

Baffett, U. (2008). Esse ob investitsiyakh, korporativnykh finansakh i upravlenii kompaniyami [Essay on investment, corporate finance and company management]. Moscow: Alpina Business Books.

Belyavska, K. S. (2011). Sotsialna vidpovidalnist biznesu: evolyutsiya pohlyadiv na problemu. [Social responsibility of business: the evolution of views on the problem]. Visnyk Khmelnytskoho natsionalnoho universytetu, 1, 228–334.

Berezina, O. Yu. (2010). Suchasni modeli korporatyvnoyi sotsialnoyi vidpovidalnosti [Modern models of corporate social responsibility]. Ekonomichnyy prostir: zb. nauk. pr. Dnipropetrovsk: PDABA, 41, 194–202.

Bodnaruk, O. (2016). Yevropeyskyy dosvid derzhavnoho rehulyuvannya korporatyvnoyi sotsialnoyi vidpovidalnosti [European experience of state regulation of corporate social responsibility]. Visnyk DonDUU. Menedzher, 2(71), 41–48.

Dziekański Paweł (2017). Economic effectiveness of the activities of local self-government units in the light of the municipality financial resources. Naukovyy visnyk Polissya, 3(11), 1. doi: 10.25140/2410-9576-2017-1-3(11)-76-82

Filipova, S. (2017). Sotsіalna vіdpov_dalnist at the strategy і upravlenіnya v_tchiznyan p_dpriєєstvom: problemnі nutrition nutrition іtinteruvannya mehanіzmu. ECONOMICS: time realitie, 2(30). Retrieved from: https://economics.opu.ua/files/archive/2017/No2/5.pdf

Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. The New York Times. Magazine, September 13. Retrieved from: http://www.colorado.edu/studentgroups

KMPG International Survey of Corporate Social Responsibility Reporting (2011). Retrieved from: http://www.kpmg.com/GR/en/IssuesAndInsights/ArticlesPublications/Sustainability/Documents

KMPG Survey of Corporate Social Responsibility Reporting (2013). Retrieved from: www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/corporate-responsibility/Documents/corporate-responsibilityreporting-survey-2013-exec-summary.pdf

Kotler, P., Li, N. (2005). Korporatyvna sotsialna vidpovidalnist. Yak zrobyty yakomoha bilshe dobra dlia vashoi kompanii ta suspilstva [Corporate social responsibility. Doing the most good for your company and your cause]. Kyiv: Standart. (in Ukrainian)

Khamidova, A. (2017). Korporatyvna sotsialna vidpovidalnist yak faktor pidvyshchennya efektyvnosti mekhanizmu derzhavnoho rehulyuvannya ekonomiky [Corporate social responsibility as a factor of increasing the efficiency of the mechanism of state regulation of the economy]. Retrieved from: http://www.csrjournal.com/news/2661-korporativna-socialna-vidpovidalnist-yak-faktor-pidvishhennya-efektivnosti-mexanizmuderzhavnogo-regulyuvannya-ekonomiki.html

Kulyeshova, L. V. (2013). Korporatyvna sotsialna vidpovidalnist yak instrument staloho rozvytku pidpryyemstv [Corporate social responsibility as an instrument for sustainable development of enterprises]. Visnyk Donbaskoyi derzhavnoyi mashynobudivnoyi akademiyi, 1(30), 195–199.

Martynyuk, O. A. (2015). Formation of the imperatives of sustainable development for structural transformations of the economy. Bulletin of the Odessa National University. Series: Economics, 20(6), 44–48.

Mazurenko, V. P. (2011). Suchasna kontseptsiya korporatyvnoyi sotsialnoyi vidpovidalnosti u mizhnarodnomu biznesi [Contemporary concept of corporate social responsibility in international business]. Efektyvna ekonomika. Retrieved from: http://www.economy.nayka.com.ua/?op=1&z=1199

Olijnik, O. R. (2015). Mizhnarodnij dosvid rozvitku socialnoyi vidpovidalnosti ta mozhlivist jogo zastosuvannya v Ukrayini [International experience of corporate social responsibility and the possibility of its application in Ukraine]. Innovacijna ekonomika: naukovo-virobnichij zhurnal, 4(59), 37–44.

Porter Michael (2007). Theory of social responsibility. Financial Times. – October 1, 2007. Retrieved from: http://blogs.ft.com/businessblog

Ramazanov, A. (2007). Kontseptsiya korporatyvnoyi sotsialnoyi vidpovidalnosti. Problemy teoriyi ta praktyky upravlinnya. Concept of Corporate Social Responsibility. Problems of the theory and practice of management. Kyiv: Energy.

Reznyk, N. (2014). Sotsialna vidpovidalnist biznesu: sutnisno-teoretychni aspekty [Social responsibility of business: essentially theoretical aspects]. Zhurnal Yevropeyskoyi Ekonomiky. Veresen, 296–303.

Romanykha, О. (2016). Corporate social responsibility development in Ukraine Bulletin of the Khmelnytsky National University. Economic Sciences, 2(1). Retrieved from: http://nbuv.gov.ua/UJRN/Vchnu_ekon_2016_2(1)__39

Sardak, S. E., Haslenko, K. S. (2017). Vnutrishnya korporatyvna sotsialna vidpovidalnist pidpryyemstva: teoretychni ta praktychni aspekty [Internal corporate social responsibility of the enterprise: theoretical and practical aspects]. Retrieved from: http://economyandsociety.in.ua/journal/12_ukr/57.pdf

Shevchenko, O. (2014). Regulation of the corporate social responsibility policy: the practice of the member states of the European Union. Actual problems of international relations. Release 122 (part I).

Social Responsibility – The Basis of Business Philosophy (2016). Retrieved from: filosofii-biznesu

Socialna vidpovidalnist biznesu (2017): rozuminnya ta vprovadzhennya [Corporate social responsibility: understanding and implementation]. Retrieved from: http://www.un.org.ua/files/Concept_Paper.pdf

Sofiyenko, A. V. (2012). Sotsialna vidpovidalnist biznesu: rozuminnya ta suchasni tendentsiyi. [Social responsibility of business: understanding and current trends. Economic innovation]. Ekonomichni innovatsiyi, 47, 297–301.

Sukhoterina, M. I., Filyppova, S. V. (2015). Ekolohichna skladova sotsialnoyi vidpovidalnosti mashynobudivnoho pidpryyemstva [Ecological component of social responsibility of machine-building enterprise]. Ekonomika: realiyi chasu, 1(17), 204–208. Retrieved from: http://economics.opu.ua/files/archive/2015/n1.html (in Ukrainian)

Tretyak, M. V. (2014). Typolohiya sotsialnoyi vidpovidalnosti biznesu [Typology of corporate social responsibility]. Teoriya ta praktyka derzhavnoho upravlinnya, 4(47), 1–10. (in Ukrainian)

Voronchak, I. O. (2018). National models of social responsibility of business: features and mechanism of formation of Mukachevo State University, № 17. Retrieved from: http://economyandsociety.in.ua/journal/17_ukr/4.pdf

United Nations Global Compact. Retrieved from: http://www.unglobalcompact.org./participants/search

Zhmay, O. (2015). Corporate Social Outlook: Perspectives and Motivation for the Small Business in Ukraine. Market economy: modern management theory and practice. Vol. 14. Issue 2(30). Retrieved from: http://rinek.onu.edu.ua/article/view/61700

Issue
Vol. 5 No. 3 (2019): Baltic Journal of Economic Studies