SOCIAL RESPONSIBILITY OF ECONOMIC ENTERPRISES AS A SOCIAL GOOD: PRACTICE OF THE EU AND UKRAINE

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

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

  Tetiana Galetska

  Topishko Natalya

  Ivan Topishko

Abstract

Current circumstances are shaping new conditions for the interaction of entities of society. The COVID- 19 coronavirus pandemic tests the partner relationship between government, business and civil society in the system of their social responsibility for the efficiency and morality. The purpose of the study is to reveal the theoretical foundations of the concept of “social responsibility of the state, business, citizen” as a determining factor of formation, self-organization, self-control, modernization of civil society and analysis of the practice of organizing the social responsibility system of economic entities in the EU and in Ukraine. The subject of the research is social responsibility as a fundamental value of society and social institute of regulation of relations in society for ensuring stability of living conditions. The methodology of the research is based on the set of methods of scientific analysis. In particular, dialectical (when characterizing the categorical apparatus of the subject of study); systemic (when analyzing the relationship of socio-economic processes); statistical method of comparisons and groupings; economic analysis (when processing statistics); historical (in the study of the evolution of corporate social responsibility (CSR) theory and practice); empirical (in the analysis of the practice of forming partnerships between business structures, the state and civil society in the European Union and Ukraine). Conclusions of the study. The concept of “social responsibility” is a fundamental value of society, and the system of social responsibility of its entities is a social good. It can be considered as a social institute of socio-economic relations regulation in order to ensure the stability of society and the development of living conditions. The systematization of scientific approaches to defining the social responsibility of economic entities as a social good made it possible to justify it from the standpoint of a public policy object, a system of ethical values of society, voluntary obligations of business and a way of managing a business entity. Features of the current socio-economic situation require strengthening of their socially responsible behavior, introduction and observance of new forms of interaction between business and society on the principles of systematic and longterm. The innovative model of the economy is raising new demands for socially responsible behavior of public relations entities. Models of its realization have their own peculiarities in every EU country. They are all stimulated by state institutional mechanisms (privileges in taxation, subsidies, control over compliance with social and environmental standards); international standards of doing business; control by the public (social reporting to stakeholders). Such institutional levers stimulate the integration of socially responsible behavior into the development strategy of the business structures. The European experience of forming and provision of social positioning of entrepreneurial activity is being studied in Ukraine and is gradually being implemented. The level of transparency of leading companies activities is increasing, especially those, the activities of which are focused on international markets (agribusinesses, energy and metallurgy companies). The lower level of transparency of such information is inherent for mining companies. Transnational companies operating in Ukraine have a higher level of CSR disclosure than domestic organizations. On their websites, twice as often as on websites of the Ukrainian companies, issues on human rights, CSR programs, policies and goals are covered. As the example of the high level of compliance with the CSR principles may serve the activities of the French-Ukrainian company “Verallia-Ukraine” PJSC ”Consumers-Sklo-Zorya” (Rivne region, Ukraine). Many Ukrainian business entities have not yet integrated CSR into their company management strategy. Further promotion of the CSR concept, activation of institutional, economic and social mechanisms for its implementation, evaluation of the effectiveness of its implementation are needed.

How to Cite

Galetska, T., Natalya, T., & Topishko, I. (2020). SOCIAL RESPONSIBILITY OF ECONOMIC ENTERPRISES AS A SOCIAL GOOD: PRACTICE OF THE EU AND UKRAINE. Baltic Journal of Economic Studies, 6(3), 24-35. https://doi.org/10.30525/2256-0742/2020-6-3-24-35
Article views: 76 | PDF Downloads: 58

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

Keywords

social responsibility, social good, socially responsible business management, models of corporate social responsibility, social partnership, UN Global Compact, international standards of enterprise social reporting, sustainable development

References

Ackerman, R. W. (1973). How Companies Respond to Social Demands. Harvard Business Review, vol. 51(4), pp. 88–98.

Acountount Ability. Retrieved from: https://www.accountability.org/standards/licensing/2019-aa1000as-reports/

Ajemoglu, D., & Robinson, J. (2016). Why Nations Decay / Trans. from English: O. Demianchuk. Kyiv: Our format.

Barannyk, L. B. (2011). “Sotsialʹne blaho” yak klyuchova katehoriya sotsialʹnoho zakhystu naselennya: teoriya i realʹnistʹ [“Social good” as a key category of social protection of the population: theory and reality]. Naukovi zapysky Natsionalʹnoho universytetu “Ostrozʹka akademiya”, vol. 16, pp. 249–255.

Barannyk, L. B., & Datsenko, V. V. (2019). Sotsialʹnyy kapital: pytannya teoriyi ta praktyky [Social capital: issues of theory and practice]. Naukovyy pohlyad: ekonomika ta upravlinnya, vol. 1(63), pp. 160–165.

Bowen, H. R. (1953). Social responsibilities of the businessman. New York: Harper & Row

Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organization stakeholders. Business Horizons, vol. 34(4), pp. 39–48.

Commission Staff Working Document. Corporate Social Responsibility, Responsible Business Conduct, and Business & Human Rights: Progress Overview (2019). EUROPEAN COMMISSION, 20.3.2019 SWD (2019). Retrieved from: https://ec.europa.eu/docsroom/documents/34482

CSR Europe 2020 Strategy. Retrieved from: https://www.csreurope.org/enterprise-2020-manifesto

CSR Europe 2030 Strategy. Retrieved from: https://www.csreurope.org/about-us/our-2030-strategy

CSR Ukraine. Retrieved from: http://csr-ua.info/csr-ukraine/

Corporate Social Responsibility & Responsible Business Conduct. Retrieved from: https://ec.europa.eu/growth/industry/corporate-social-responsibility_en

Davis, K. (1960). Can business afford to ignore social responsibilities? California Management Review.

Elkington, J. (1999). Cannibals with Forks: The Triple Bottom Line of 21st Century Business. Hoboken, New Jersey: John Wiley & Son Ltd.

EU Environmental Action Plan. Retrieved from: https://eu-ua.org/novyny/yes-zbilshuye-finansuvannya-programy-life-iz-zahystu-dovkillya

Feshchenko, V. M. (2016). Suchasni ekonomichni teoriyi: kontseptualʹni vytoky ta evolyutsiya zmistovnoho napovnennya [Modern economic theories: conceptual origins and evolution of content filling]. Zbirnyk materialiv Vseukrayinsʹkoho kruhloho stolu “Suchasni ekonomichni teoriyi: istoriya, metodolohiya ta perspektyvy rozvytku”. Kyiv: KNEU.

Frederick, W. C. (1986). Toward CSR-3: Why Ethical Analysis is Indispensable and Unavoidable in Corporate Affairs. California Management Review, vol. 18(2), pp. 126–141.

Global 100 ranking 2020. Retrieved from: https://www.corporateknights.com/reports/2020-global-100/2020-global-100-ranking-15795648/

GREEN PAPER: Promoting a European framework for Corporate Social Responsibility. Retrieved from: https://ec.europa.eu/commission/presscorner/detail/en/DOC_01_9

ISO / DIS 26000: Guidance on social responsibility. Retrieved from: http://www.isotc.iso.org.

Ivanytsʹka, O. (2015). Hlobalʹni standarty sotsialʹnoyi vidpovidalʹnosti biznesu [Global standards of corporate social responsibility]. Nezalezhnyy audytor, vol. 5–6, pp. 40–41. Retrieved from: http://n-auditor.com.ua/uk/component/na_archive/1241?view=material

Italiya vydelit 25 mlrd yevro na bor'bu s koronavirusom [Italy will allocate 25 billion euros to fight against coronavirus]. Retrieved from: https://finance.liga.net/ekonomika/novosti/italiya-vydelit-25-mlrd-evro-na-borbu-s-koronavirusom

Khronika koronavirusa v Ukraine i mire [Chronicle of coronavirus in Ukraine and the world]. Retrieved from: https://news.liga.net/incidents/chronicle/novyy-koronavirus-v-kitae-vse-glavnye-novosti

Kolyadych, O. I. (2016). Zminy v zhorstkomu yadri teoriyi dobrobutu na pochatku XXI st. [Changes in the hard core of the theory of well-being at the beginning of the XXI century]. Zbirnyk materialiv Vseukrayinsʹkoho kruhloho stolu “Suchasni ekonomichni teoriyi: istoriya, metodolohiya ta perspektyvy rozvytku”. Kyiv: KNEU.

Kolot, A. (2013). Suchasna filosofiya korporatyvnoyi sotsialʹnoyi vidpovidalʹnosti: evolyutsiya pohlyadiv [Contemporary philosophy of corporate social responsibility: the evolution of views]. Ukrayina : aspekty pratsi, vol. 8, pp. 3–17.

Korolʹova, Yu. V. (2015). Dzherela prava v aspekti yikh sotsialʹnoho vymiru [Sources of law in the aspect of their social dimension]. Derzhava i pravo, vol. 67, pp. 51–59.

Kovalʹchuk, V. (2017). Reytynhy z korporatyvnoyi sotsialʹnoyi vidpovidalʹnosti yak instrument pidvyshchennya konkurentospromozhnosti pidpryyemstv [Corporate Social Responsibility Ratings as a Tool for Increasing the Competitiveness of Enterprises]. Naukovyy pohlyad: ekonomika ta upravlinnya, vol. 1(57), pp. 82–89. Retrieved from: http://scientificview.umsf.in.ua/archive/2017/1_57_2017/12.pdf

Kovban, А., & Kohut, І. (2019). Formation of a corporate social responsibility strategy of companies in EU countries. Baltic Journal of Economic Studies, vol. 5, no. 3, pp. 82–90. doi: 10.30525/2256-0742/2019-5-3-82-90

Longsdon, J., & Wood, D. (2002). Business Citizenship: From a Domestic to a Global Level of Analysis. Business Ethics Quarterly, vol. 12(2), pp. 155–187.

Nastanova OESR stosovno protsedur nalezhnoyi perevirky u praktytsi vidpovidalʹnoho (2018). [The OECD institution is relevant procedural inspection procedure in responsibility business]. Retrieved from: http://csr-ua.info/csr-ukraine/wp-content/uploads/2019/07/DD-ua_web-2.pdf

Ovsyanyuk-Berdadina, O. F. (2019). Sotsializatsiya biznesu: suspilʹni ta rynkovi proyavy [Socialization of business: social and market manifestations]. Naukovyy pohlyad: ekonomika ta upravlinnya, vol. 1(63), pp. 48–53.

Petrashko, L., & Martynyuk, O. (2019). Yevropeysʹki biznes-praktyky korporatyvnoyi sotsialʹnoyi vidpovidalʹnosti: keysy [European Corporate Social Responsibility Business Practices: Case Studies]. Kyiv: KNEU.

Popadyuk, O. V., & Luchyk, O. I. (2019). Pryntsypy ta mekhanizm sotsialʹnoyi vidpovidalʹnosti v umovakh stratehichnoho upravlinnya pidpryyemstvom [Principles and mechanism of social responsibility in terms of strategic enterprise management]. Ekonomika ta upravlinnya pidpryyemstvamy, vol. 36, pp. 235–245.

Private Joint Stock Company “Consumers-Sklo-Zorya”. Retrieved from: https://csr.verallia.com/en/pdf_2019/mobile/index.html

Quarantine on the economy: what anti-crisis measures are taken by other countries? Retrieved from: http://razumkov.org.ua/comments/karantynom-po-ekonomitsi-iaki-antykryzovi-zakhody-pryimaiut-inshi-krainy

Saprykina, M. (2019). Praktyku KSV v Ukrayini. [CSR Practices in Ukraine]. CSR Development Center, Kyiv.

Sethi, S. (1975). Dimensions of Corporate Social Performance: An Analytic Framework. California Management Review, vol. 17(3), pp. 58–74.

The 2020 Global 100: Overview of Corporate Knights Rating Methodology. Retrieved from: https://www.corporateknights.com/wp-content/uploads/2020/03/2020-Global-100_Methodology.pdf

Transforming our world: the 2030 agenda for sustainable development (n.d.). Retrieved from: http://www.un.org/ga/search/view_doc.asp?symbol=A/70/L.1&Lang=E

UN Global Compact. Retrieved from: www.mlsp.gov.ua/.../article%3Bjsessionid=07E30561B5BF4DDE28B50

Voyna s COVID-19. Kakiye summy raznyye strany napravili na bor'bu s koronavirusom [War against COVID-19. What amounts have different countries used to fight against coronavirus?] Retrieved from: https://finance.liga.net/ekonomika/novosti/vlasti-raznyh-stran-vydelyayut-bespretsedentnye-summy-na-borbu-s-koronavirusom

Wartick, S. L. (1985). The evolution of the corporate social performance model. Academy of Management Review, vol. 10(4), p. 758.

Yevropeysʹki biznes-praktyky KSV [CSR European Business Practices]. Retrieved from: http://www.csr-eu-jm.com.ua/files/CSR-research-ukrainian.pdf

Zinchenko, A. (2017). Rozvytok KSV v Ukrayini: 2010–2018 [CSR Development in Ukraine: 2010–2018]. Kyiv: Juston, 52. Retrieved from: http://csr-ua.info/csr-ukraine/wp-content/uploads/2018/10/CSR_2017_reserch-1.pdf

Zinchenko, A., Reznik, N., & Saprykina, M. (2018). Indeks prozorosti saytiv ukrayinsʹkykh kompaniy – 2017. [Transparency Index of Ukrainian Companies' Sites – 2017]. Kyiv: Vydavnytstvo “Yuston”. Retrieved from: http://csr-ua.info/csr-ukraine/wp-content/uploads/2018/10/Transp_Index_2018_preview-.pdf

Zinchuk, T. O., & Levkivsʹkyy, Ye. V. (2019). KSV vertykalʹno intehrovanykh struktur ahrarnoho biznesu yak umova staloho rozvytku [CSR of vertically integrated structures of agrarian business as a condition of sustainable development]. Ekonomika APK, vol. 1, pp. 39–49.