Measurement of Social Responsibility of Entrepreneurial Structures
as a Global Trend
Viktoriia Yevtushenko
a
, Viktoriia Liashevska
b
and Tetiana Shuba
c
Department of Marketing, Management and Entrepreneurship, V. N. Karazin Kharkiv National University, Ukraine
Keywords: Corporate Social Responsibility, Business Structures, World Trends, Methods, Diagnostics.
Abstract: In the conditions of modern world transformational changes to the sustainable development any company
seeks to strengthen its position on domestic and foreign markets, the presence of image business partners,
winning loyal consumers, high competitiveness enterprises and goods / services, etc. All this including is
formed and due to the effective management of the organization in the field of effective creation basis of
corporate social responsibility (CSR). The business practice of global companies around the world has proved
the fact of formation a special image of the organization in the eyes of consumers, employees and others
stakeholders through the implementation of corporate social responsibility. Measuring and assessing
corporate social responsibility is becoming an important tool for domestic and international business, as it
provides an opportunity to assess the efforts and the effect.
1 INTRODUCTION
The study is devoted to the study of modern methods
of measuring the degree of social responsibility of
business representatives generalized approaches to
assessing the social responsibility of economic
entities in the world. The comparative characteristic
of methods of an estimation of social responsibility of
subjects of managing in the international practice is
carried out. The essential characteristics of the
existing methods of diagnostics of social
responsibility of companies are established and it is
proved that they do not reveal the algorithm of
diagnostics of social responsibility of the company,
do not take into account the size of the enterprise
(focused on large business structures), industry
specifics, financial opportunities.
The author's method of diagnostics of social
responsibility of Ukrainian enterprises is offered, the
advantages of which are: use regardless of the size of
the enterprise; taking into account the peculiarities of
legislation and doing business in Ukraine;
opportunity for small enterprises to apply and
evaluate certain institutional forms of social
responsibility; simplicity of methodology in a wide
a
https://orcid.org/0000-0002-7764-2277
b
https://orcid.org/0000-0001-6520-3632
c
https://orcid.org/0000-0002-7163-2721
range of research areas and clarity for use by national
businesses.
2 MATERIALS AND METHODS
The research is aimed at establishing the possibility
and feasibility of using methods to determine the
level of social responsibility of business structures in
order to create a sustainable environment for doing
business.
CSR is a unique business tool and social
phenomenon that began to develop rapidly in the 60s
and 70s of the last century. The genesis of social
responsibility has contributed to its multi-vector
nature, and this practice is currently considered in
terms of various areas: economic, social,
environmental, civic, or based on structural elements
or institutional forms used in the organization -
company policy on customers, environment, use
various social initiatives, such as active citizenship,
charity, volunteering, promoting the ideas of social
responsibility to the general public, etc.
Yevtushenko, V., Liashevska, V. and Shuba, T.
Measurement of Social Responsibility of Entrepreneurial Structures as a Global Trend.
DOI: 10.5220/0011345100003350
In Proceedings of the 5th International Scientific Congress Society of Ambient Intelligence (ISC SAI 2022) - Sustainable Development and Global Climate Change, pages 117-125
ISBN: 978-989-758-600-2
Copyright
c
 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
117

Growing environmental concerns, such as
increasing global warming, and degradation of the
natural resource have called for firms to mitigate their
impact on the natural environment (Adomako et al.,
2021).
The issue of CSR as an approach for businesses to
independently take actions that lead to better levels of
societal development as well as higher value creation
for the business, particularly in developing countries
has gained much advocacy (Abugre et al., 2019).
CSR is the responsibility of an organization for
the impact of its actions and decisions on society and
the environment through transparent and ethical
behavior that is consistent with the sustainable
development and well-being of society; takes into
account the expectations of stakeholders; is subject to
current legislation and complies with international
standards of conduct, as well as integrated into the
activities of the entire organization.
Today, this concept is constantly updated, each
company brings something new, special.
The concept of CSR was first formulated in the
early twentieth century. According to this concept,
business representatives, in addition to commitments
to produce quality products and provide quality
services, take on additional responsibilities to society
on their own initiative.
For a long time, there was no consensus among
scientists on the definition of CSR.
However, since the mid-1970s, with the
deepening of globalization and regionalization, views
on the concept of CSR have been significantly
deepened and supplemented. Business has come to
understand that by focusing exclusively on increasing
profitability, social problems are deepening. At this
time, new views on the concept are beginning to
emerge.
There are three main stages in the further
development of the CSR concept.
The first stage (1960s-mid 1970s) is characterized
by the spread of charity. Assistance to vulnerable
groups, cultural and sporting events and organizations
was very popular at the time. However, the lack of
systematic social measures and a strategic approach
to CSR is also characteristic of that period.
In the second stage (mid 70's - early 80's)
developed strategic philanthropy. Its essence was that
the business received instead of the maximum, such a
level of profit that would optimally solve the problem
of interaction between business and society. At this
time, it is proposed to define CSR as the compliance
of the organization with the expectations of society.
At this stage of development, large corporations are
beginning to understand the need to incorporate social
activities into their development strategy.
The third stage (mid 80's - late 90's) is
characterized by the development of such concepts as
"business ethics", "stakeholders", "corporate
citizenship".
At this time, business is being introduced into
society, which became the basis for the emergence of
stakeholder theory. During this period, the idea is
formed that for each company society is a system of
stakeholders, representing individuals, organizations
and groups that have an impact on the decisions made
by the company.
The concept of "business ethics" received its
greatest development in the mid-80's of the twentieth
century, when corruption increased among officials
and officials of large corporations.
The concept of "corporate citizenship" compares
the behavior of corporations with the behavior of
citizens who exercise their responsibility to society.
The key point of the concept is the emphasis on the
benefits of implementing social responsibility for the
business itself.
During this period, it is proposed to look at social
responsibility in the form of a continuum of levels:
from irresponsibility of business to comprehensive
support of society.
There are many views of economists on the
category of CSR. They can all be divided into two
groups.
The definitions of the authors, which belong to the
first group, argue that social responsibility is borne
directly by the heads of enterprises. The second group
includes definitions that state that the organization as
a whole is socially responsible.
As a result of a semantic analysis of theoretical
approaches to the definition of the term CSR, it was
concluded that there is no single view on the main
characteristics of CSR as a policy, initiative or
concept. The term CSR is mostly interpreted based
only on its content as an economic or social category,
while neglecting the intrinsic nature of the properties
that give rise to CSR to such categories as social,
philosophical, legal (legal), psychological, etc .; Most
definitions of the term CSR derive from its economic
function and emphasize the economic orientation of
CSR, with an emphasis on the voluntary nature of
CSR and no direct link between the benefits of the
corporation and CSR itself.
Thus, based on the analysis of existing definitions
of the term CSR and academic literature on the role
of CSR in international business, there is a lack of
unity in defining this concept and proposed its own
definition of CSR, namely CSR can be disclosed as a
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policy an organization, both domestically and
internationally, in relation to its stakeholders who are
directly or indirectly influenced by the decisions
made by the organization, and such that in the long
run may have a positive impact on the profitability of
the company.
This definition, in our opinion, emphasizes that
any organization is primarily responsible and
accountable to the parties affected by its activities.
However, it does not exclude the responsibility of the
organization to all members of society.
Today, with the support of PR and business
communications professionals around the world, the
concept of CSR has become widespread as a new
technology to justify the commercial and industrial
activities of companies whose ultimate goal is to
maximize profits.
Many scholars are studying the economic
consequences of adopting CSR at the company level,
but there is little evidence that it brings tangible
economic benefits. Other researchers point to the
increase in reputation, arguing that adopting CSR
principles can bring benefits - investment, as a
desirable goal in public relations for a company,
industry, or entire nation.
An important argument for increasing the social
responsibility of TNCs is the benefits they receive
from globalization, including privatization,
deregulation, deregulation and the release of
international trade and investment flows, which
allows these companies to take on the burden of social
responsibility.
However, the implementation of CSR TNCs in
foreign markets has certain features. Of course, the
goal of any commercial company is to make a profit.
However, the company operates in a social
environment, and therefore cannot be separated from
social problems and help solve them. In this situation,
the question of how the company makes a profit
becomes especially important:
Are the interests of any stakeholders affected by
the company's profits?
Do its decisions and daily activities harm the
environment and various groups of the population?
How transparent, honest and accountable is the
company?
Stakeholders are divided into two groups: internal
and external. Only employees, owners and the board
of directors are internal. All others are external
stakeholders. This distribution depends on the type of
company environment.
The relationship between the state and corporate
social responsibility has not yet taken shape. Each
state is trying to develop its own mechanism for
regulating CSR.
The regulatory mechanism of interaction between
the social and the state must implement an ethical
component, which, as the experience of the former
socialization of man and the state, was not included.
And such a component requires a highly educated and
creative actor - an employee, a businessman, a civil
servant and a politician - who is able not only to work
highly productively, but also to adhere to moral
norms. As a result, not only are taxes paid, but there
is also the opportunity to protect the socially
dissatisfied individual, maintaining both his ability to
work and morality.
Active involvement of entrepreneurs in CSR
requires the government and NGOs to address the
issue of regulating such activities. Unfortunately,
domestic organizations are quite unresponsive to such
requirements. At the same time, having analyzed and
used the foreign experience of foreign countries,
domestic experts have a unique opportunity to
develop international standards in the field of CSR,
which are acceptable to Ukraine.
Thus, the use of CSR is a mechanism for
managing microeconomic architecture through
methods of direct and indirect influence, which
allows public institutions to influence the
development of modern society.
Organizations seek to take responsibility for their
impact on society and the environment. They also try
to apply the principles of sustainability in running
their business. Sustainability refers to the activities of
the organization and is based on voluntariness, which
is manifested through the inclusion of social and
environmental components in business activities and
interaction with stakeholders.
When implementing corporate social
responsibility, companies face problems and
limitations. Most often, this concerns political and
cultural aspects or problems within the organization.
The complexity of working in a global society places
new demands on the organization and its leadership.
As the role of government responsibility is constantly
revised and the boundaries between business and
government become less clear, leaders face a
complex array of challenges. At the new stage of CSR
development, the needs of stakeholders, consumers,
workers, national and international regulators,
observers, and public organizations must be met.
At the same time, the diversity of perceptions and
practical use of institutional forms of social
responsibility makes it difficult to assess it for further
improvement. Of course, there are currently
Measurement of Social Responsibility of Entrepreneurial Structures as a Global Trend
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independent and reliable CSR ratings in the world,
but first, not every company
meets the conditions of getting to them (for example,
capitalization or annual income), and, secondly, the
cost of evaluation is high, because each rating is a
unique author's method.
Based on the analysis of theoretical developments
and recommendations from practitioners, methods of
assessing social responsibility and the possibility of
their application were identified (Beurden &
Gossling, 2008).
In order to establish the degree of relevance of the
use of methods of assessment of social responsibility
of business structures, a comparative characterization
of methods of assessment of social responsibility of
economic entities in international practice and the
author's method of diagnosing social responsibility.
3 RESULTS AND DISCUSSION
Analysis of CSR, ie moral and ethical, economic,
social, legal and environmental behavior of market
agents, the degree of social involvement of business,
its moral impact on society, etc., provides a
quantitative and qualitative assessment of socially
responsible measures. Assessment (English
assessment, evaluation, estimation) - 1. Procedure for
determining the price, value; 2. Thought about values,
levels or meanings; 3. Mark on the scoring system.
Many authors have engaged with the research of
individual indexes structure and their purpose.
Studies on sustainable indexes can be divided into
three sections:
- those that explore the structure of sustainability
indexes (Sjostrom, 2004; Mitchel et al., 2004;
Hamner, 2005; Kasparova, 2006;)
-
those that explore the purpose of sustainable
indexes (Sjostrom, 2004; Beurden & Gossling, 2008;
Cerin & Dobers, 2008) and
- those that explore other dimension, such as their
application by the evaluation of Corporate Social
Responsibility activities of companies (Avlonas,
2004; Jankalova, 2013;).
The business practice of global companies around
the world has proven the fact of the formation of
special education in the eyes of consumers,
employees and other people in demand through the
very introduction of CSR. Based on research on US
commodity markets, the business consulting agency
Morgan Stanley (Research) found that 87% of buyers
are more likely to choose a company depending on its
position and social phenomena and 78% said they are
willing to pay more for social responsibility.
CSR performs certain functions of promoting the
organization, sends its financial condition, acts as a
protective barrier in case of problems or
misunderstandings, and so on.
The generally accepted methods of assessing the
social responsibility of economic entities in
international practice include the Dow Jones
Sustainability Indexes, FTSE4Good, Global
RepTrak®100 and others. All these methods can be
divided into three groups, each of which is based on
a separate diagnostic criterion, the most common of
which are: capitalization, corporate reputation or
components-indicators of corporate social
responsibility (CSR) (Fig. 1).
The main problems in the analysis and
measurement of social responsibility of the enterprise
we see: 1) the proper choice of evaluated institutional
forms, as well as technologies, directions, objects,
tools of social responsibility of the entity we analyze,
2) the formation of easy to use methods, techniques
and methods of analysis of social responsibility of
business structures and 3) scientifically sound
selection of the system of evaluated indicators
(Sjostrom, 2004).
There are many methodological approaches to
assessing the social responsibility of a particular
enterprise, among which are: methods of social
reporting, index and rating methods, quantitative and
qualitative methods, etc. - on various basic bases and
classification criteria that can be used in social audit
Figure 1: The most used world methods and ratings of
social responsibility: division by criteria (indicators) of
assessment, compiled by the author.
The first group (Dow Jones Sustainability
Indexes, FTSE4Good, MSCI Index, KLD-Nasdaq
Social Index) - the assessment is carried out by the
index method, used by stock exchanges to assess
socially responsible investment. Mandatory
conditions - form of management "joint stock
company" / corporation, capitalization of securities
capitalization
• Dow Jones
Sustainability
Indexes
• FTSE4Good
• MSCI Index
• KLD-Nasdaq
Social Index
corporate
reputation
• Global
RepTrak®100
• Net Promoter
Score (NPS)
components of
CSR
•Corporate
Knights
Global 100
•Corporate
Responsibility
Magazine
•Corporate
Philanthropy
Index
• Bloomberg
ESG
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on world stock exchanges, open financial statements,
data on independent audit.
That is, it is the most objective assessment of
social responsibility, because it is based on
quantitative digital indicators of companies, but they
do not take into account the stakeholder components
of social responsibility - staff, consumers,
relationships with local communities, social
initiatives, because the latter is more effective, it is
difficult to calculate.
The second group (Global RepTrak®100, Net
Promoter Score (NPS) - is based on the independent
diagnosis of the perception of the company by
consumers, stakeholders, independent experts
through online surveys. Has a global nature.
'Effective method, because it is based on a survey of
a wide range of respondents and gives an idea of a
certain image of companies in the eyes of the
community.
The third group (Corporate Knights Global 100,
Corporate Responsibility Magazine, Corporate
Philanthropy Index, Bloomberg ESG (environmental,
social and governance) 3000 global index) - analysis
of social responsibility is carried out by certain
components or their combination, most often
evaluated social, economic and environmental
indicators (Jankalova, 2013).
The study is based on open enterprise data,
secondary analytical data, and stakeholder surveys.
These methods contain both qualitative and
quantitative evaluation criteria.
In our opinion, Ukraine needs a clear and
accessible diagnosis of social responsibility for any
enterprise (
Kasparova, 2006). It will help the
company's management to identify areas of social
responsibility that are still underdeveloped, new tools
that need to be implemented or socially responsible
transformation. Such diagnostics can serve as a
preparation of the enterprise for inclusion and passing
of national and / or international ratings. We have
identified seven main institutional groups and areas in
which the assessment of social responsibility of the
enterprise:
- consumers;
- staff;
- stakeholders;
- innovation component;
- "green" component;
- social component;
- organizational component.
The composition of the integrated indicator of
social responsibility of the enterprise, in our opinion,
is enough to include five components - areas of social
responsibility of the enterprise - on the basis of which
the following complex indicators are distinguished:
1) complex indicator characterizing social
responsibility; 2) a comprehensive indicator that
characterizes the responsibility of economic activity
of the enterprise; 3) a comprehensive indicator that
characterizes the responsibility in the field of labor
and to internal stakeholders; 4) a comprehensive
indicator that characterizes the environmental
responsibility of the enterprise; 5) a comprehensive
indicator that characterizes the responsibility to
external stakeholders.
It is also proposed to allocate indicators of social
responsibility within the proposed groups and areas,
which are mandatory and are "additional".
This will allow both small businesses and large
companies to assess their social responsibility based
on public needs and their resource capabilities.
Let's consider each direction of diagnostics of
social responsibility in more detail.
"Consumers". It is common practice to consider
consumers (interested customers) of the company in
combination with all stakeholders, however, in our
opinion, it is still advisable to allocate them to a
separate area of diagnosis. After all, if we recall the
historical formation of the concept of social
responsibility, it is due to indifference and a clear
position of consumers, social initiatives have received
a boost for development. Therefore, the influence of
the company's customers is one of the most important
factors to consider in the diagnosis of social
responsibility of the entity. It is consumers who can
dictate the introduction of certain tools and
technologies of social responsibility in the enterprise.
In our opinion, it is advisable to include such
groups of indicators as the following in the element
of diagnostics of social responsibility "Consumers":
certification and / or standardization of products and
services; complete and reliable information about the
product and / or service; complaint policy and
compensation system; the reputation of the enterprise.
The staff actively forms the social responsibility
of any enterprise. Thanks to his efforts, a certain
positive image of the company is created, social
initiatives are implemented, and in general, social
responsibility becomes an integral part of the culture
and life of the organization.
Separately from the groups "Staff" and
"Consumers" we highlight the element
"Stakeholders", according to which we diagnose
other stakeholders. Stakeholders are entities that, on
the one hand, take an indirect part in the company's
activities (including staff), influence the organization,
and, on the other hand, form, like consumers, a certain
image of the company, create its brand. The main
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indicators that, in our opinion, are important for
stakeholders are: openness, transparency,
accessibility and reliability of information (website,
social networks); organizational activities.
Important criteria are the availability of the site
and/or social networks, their content (general
information about the organization and its
product/services, information on CSR (mission,
goals, principles, code, anti-corruption policy, social
initiatives, etc.), financial statements for the last 5
years, information about the management and owners
of the organization, ownership structure, etc.); ease of
navigation and speed (availability of filters, ease of
searching for information on how fast pages load);
availability of communication channels with
stakeholders; timely placement of information,
maintaining the confidentiality of user data.
It is also advisable to broadcast a position on CSR,
for example, to join an international and/or Ukrainian
program for the development of socially responsible
organizational concept, participate in or organize
activities to disseminate social initiatives to the
public, help related stakeholders (suppliers,
intermediaries) on the implementation of social
responsibility policy in their activities.
CSR is closely linked to innovation and the
company's readiness to implement it. Many social
initiatives, principles and technologies of social
responsibility are inherently innovative. Therefore, in
our opinion, the inclusion of this component in the
proposed diagnosis is logical and necessary. In this
area, first, it is advisable to analyze two groups of
indicators: partnerships with higher education
institutions (HEIs) and innovation projects.
Currently, the cooperation of business and education
is very important for the formation of real
requirements for the modern young employee, in line
with current trends in the labor market. Young people
can also be attributed to the consumers of the
enterprise, its future staff, related parties who create,
organize, modernize the social responsibility of the
enterprise.
Therefore, in the framework of collaboration with
the Free Economic Zone, it is expedient to: participate
in the development and improvement of educational
programs, their evaluation, conclusion of agreements
on cooperation with the Free Economic Zone of
Ukraine; to take part in student master classes,
workshops, competitions, etc.; to involve active
student youth in internships at Ukrainian enterprises
with the possibility of further employment.
Also, national businesses should pay attention to
innovative projects: cooperation with business
incubators and business accelerators; creation of own
innovative projects to improve the processes of
production or provision of services, to create new
goods and/or services, etc..; introduction of advanced
innovative technologies in production management,
etc. Virtually all world ratings of social responsibility
take into account the environmental orientation of the
enterprise, because today environmental problems are
very complex. Allegations of violations of
environmental norms and rules are frequent in
relation to the business and activities of large
companies.
Therefore, a "green" component has been added
to the author's methodology for diagnosing social
responsibility of Ukrainian enterprises, which
includes: resource conservation policy and zero waste
measures; introduction of cutting into the daily
activities of the organization; use of green energy and
energy saving technologies; practical application of
the principles of Lean-production.
The social component of this diagnosis includes
some analytical work within the company on CSR
and the presentation of these results to the general
public, at least the company needs to prepare an
annual report on CSR or sustainable development.
For large Ukrainian companies, it is advisable to
develop socially important public projects (support
for education, medicine, public infrastructure, etc.).
The organizational component of socially responsible
diagnostics is aimed at assessing the management of
the enterprise, the main functions of which include
work with CSR, integration of social initiatives in all
aspects of the company, preparation of CSR or
Sustainable Development Code, definition of
principles and values of social responsibility.
The main task of modern organizational
management - to create a system of social
responsibility that will meet the characteristics of the
enterprise, taking into account the specifics of its
activities and the external environment. Socially
responsible management staff is also important here,
which in close cooperation with employees creates a
unique atmosphere, which is permeated with ideas of
business ethics and responsibility to society.
The advantages of this diagnostic approach are:
−
possibility of use regardless of the size of the
enterprise: even small and medium-sized businesses
will be able to diagnose the state of CSR;
−
takes into account national peculiarities of
legislation and doing business in Ukraine;
−
the division of evaluation criteria into
mandatory and additional ones enables small
enterprises, which are not able to cover all
institutional forms of social responsibility at once, to
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understand what needs to be addressed first in the
future and not feel weaker than large companies;
−
a wide range of research areas (consumers,
customers, stakeholders, innovation, environmental
protection, social and organizational components),
but they are not oversaturated with indicators that are
analyzed, which makes this method easier and clearer
to use by national businesses.
Thus, in the modern world there is a situation
when the development of international business and
economic system becomes impossible without taking
into account the global problems of society.
CSR can be a major tool that can help address the
above challenges facing international business.
There are many factors that influence the
formation of CSR in international business. The study
showed that the main ones are:
1. Sustainable development: Studies by the United
Nations (UN) and other organizations have
highlighted the fact that humanity is using natural
resources faster than they are recovering. If this
continues, future generations will not have the
resources they will need for their development. In this
context, much of modern development is volatile - it
cannot be continued for both practical and ethical
reasons. Related areas include the need to pay more
attention to the fight against poverty and respect for
human rights. CSR is the entry point for
understanding and responding to sustainable
development issues through the company's business
strategy.
2. Globalization: with a focus on cross-border
trade, multinational enterprises and global supply
chains - economic globalization is increasingly
increasing the importance of CSR issues related to
human resources, environment, health and safety and
more. CSR can play a vital role in identifying the
impact of business on working conditions, local
communities and countries, and what steps can be
taken to help businesses support and create the public
good. This can be especially important for firms
focused on exporting to developing economies.
3. Governance: The government and
intergovernmental bodies such as the United Nations,
the Organization for Economic Co-operation and
Development (OECD) and the International Labor
Organization (ILO) have developed various
agreements, declarations, instructions, rules and other
documents setting out business standards. CSR tools
often reflect internationally agreed goals and laws
related to human rights, the environment and the fight
against corruption.
4. The impact of the corporate sector: The sheer
number of corporations, and their impact on political,
social and environmental systems in relation to
governments and civil society, raises questions about
impact and accountability. Even small and medium-
sized enterprises (SMEs), which together are the
largest employers, have a significant impact.
Companies are global ambassadors of change and
values. Their behavior becomes a matter of
heightened interest and importance.
5. Communications: Advances in
communications technologies such as the Internet and
mobile phones make it easier to monitor and discuss
corporate activities. Internally, this can facilitate
management, reporting and change. Externally,
NGOs, the media, and others can quickly assess
business practices that they see as problematic. In the
context of CSR, modern communication technologies
open opportunities for improving dialogue and
partnership.
6. Finance: Consumers and investors are
increasingly interested in maintaining responsible
business practices and demanding more information
on how companies address the risks and opportunities
associated with social and environmental issues.
Voicing a CSR approach can help increase stock
value and provide better market entry.
7. Ethics: A number of serious and high-profile
violations of corporate ethics as a result of harm to
employees, shareholders, the public or the
environment have contributed to increased public
distrust of corporations. A CSR approach can help
improve corporate governance, transparency,
accountability and ethics.
8. Coherence and community: Citizens in many
countries believe that corporations must meet the
same high social and environmental standards, no
matter where they work. In the context of CSR, firms
can help build a sense of community and a common
approach to solving common problems.
9. Leadership: At the same time, there is a
growing awareness of the limits of government,
legislative and regulatory initiatives to effectively
address all CSR issues. CSR can offer flexibility and
incentives for firms to comply with regulations or in
areas where regulation is almost impossible.
10. Business tool: Business recognizes that
adopting effective CSR approaches can reduce the
risk of business destabilization, open up new
opportunities, stimulate innovation, promote a
company's brand and reputation, and even increase
efficiency.
It should also be noted that the position of the state
and civil society regarding the responsibility of
business to society as its external environment has a
great influence on the formation of CSR.
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The business environment puts significant
pressure on the behavior of the business itself in terms
of the requirements of various aspects of the
environment. This has made CSR a tool to promote
human development around the world. The external
environment of the organization has evolved over
time to become a major contributor to the success of
the organization and could cause problems for the
organization when the needs of the external
environment are not met.
Thus, the expectations of the environment are
crucial, and they should be considered as an important
factor in the effective management of modern
organizations. Every business organization makes
strategic decisions, taking into account the needs of
the host environment. Although there is no single
recipe for socially responsible business practices,
perceptions as well as stakeholder expectations can be
an important tool for corporations in creating unique
CSR policies. The business organization must be able
to feel the pulse of communities in terms of their
expectations and respond accordingly as a
responsible corporate citizen.
The organizational component of socially
responsible diagnostics is aimed at assessing the
management of the enterprise, the main functions of
which include work with corporate social
responsibility, integration of social initiatives in all
aspects of the company, preparation of CSR or
Sustainable Development Code, definition of
principles and values of social responsibility. The
main task of modern organizational management is to
create a system of social responsibility that will meet
the characteristics of the enterprise, take into account
the specifics of its activities and the external
environment. Socially responsible management staff
is also important here, which in close cooperation
with employees creates a unique atmosphere, which
is permeated with ideas of business ethics and
responsibility to society.
4 CONCLUSIONS
The value and dynamics of the integrated indicator of
social responsibility of the enterprise are of interest
not only to the management of the organization, but
also to all groups of stakeholders and regulatory
institutions.
Implementation of the principles of social
responsibility by national economic entities will help
the rapid transition to sustainable development and,
as a consequence, will contribute to: reduction of
anthropogenic pressure on the environment,
introduction of balanced nature management and high
quality of the environment; structural restructuring of
the country's economy in the direction of increasing
the share of innovative high-tech and waste-free
production, increasing the productivity of social labor
and reducing the share of resource-, labor- and
energy-intensive economic activities; overcoming
poverty and unemployment, improving the quality of
life of the population, increasing life expectancy and
civilized personal development; creating favorable
conditions for the development of socially
responsible institutions and the development of civil
society; improving and increasing the
competitiveness of the national economy and
growing a positive image of the country at the
international level.
Based on a comparative analysis of the world's
most widely used methods of rating social
responsibility of economic entities in international
practice, it is found that all methods can be divided
into three groups, each of which is based on a separate
diagnostic criterion. Currently, the most common are
the following indicators: level of capitalization,
corporate reputation or components-indicators of
CSR of organizations. It is proved that the generally
accepted global methods of diagnosing social
responsibility of enterprises are not possible to apply
in domestic practice (not every company meets the
conditions for getting to them, the cost of assessing
social responsibility is high, etc.).
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