O Ilnytska - Strategies of corporate social responsibility - страница 1



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О. Р. Ільницька, ДВНЗ «Київський національний економічний університет імені Вадима Гетьмана», м. Київ



Анотація. У тезах висвітлено важливість впровадження стратегій корпоративної соціальної відповідальності у корпораціях та ком­паніях. Також зроблено наголос на нерозуміння значення КСВ представниками українського бізнесу. Дослідження показують, що впровадження стратегій КСВ є рекомендованими заходами для економічного і соціального-етичного зростання компанії.

Summary. The article shows the importance of implementing the strategies of corporate social responsibility (CSR) in corporations and companies. It is also highlighted that Ukrainian business repre-?entatives mostly do not realize the meaning of CSR. Research shows that implementation of strategies CSR is highly recommendable for economic and ethical growth of a company.

It is a well-known fact that principles of social responsibility are important components of successful strategy which improves the

image and reputation of the company, attracts customers and keeps the highly skilled and loyal employees. The lack of social respo-?sibility and considered, planned social policy prevents the creation of a positive image of the company, ethical doing of business, and prevent access to financial markets [1].

International Standard ISO 26000 «Social Responsibility)), approved in 2010, defines the social responsibility of an organization as «the responsibility for the impacts of its decisions and activities on society and environment, through transparent and ethical behavior that contributes to sustainable development, health and the welfare of society; takes into account the expectations of stakeholders; is in compliance with applicable law and consistent with international norms of behavior; is integrated throughout of organization and practiced in its relationship) [9]. In other words, corporate social responsibility could be defined as modern philosophy of behavior and doing business, the conception which is built by business society, companies, and individual business representatives with the aim to create a sustainable environment for the next generation, with principles such as producing high-quality goods, investments in human capital etc. [3].

Bill Gates who is one of the richest people in the world and also one of the most active representatives of CSR once said: «I believe that with great wealth comes great responsibility to give back to society, a responsibility to see that those resources are put to work in the best possible way to help those most needed» [11]. It means that a company as in every citizen is supposed to be socially responsible and support a strengthening of mental and ethical forms of doing business. This can be accomplished by changing its own corporate culture, and in turn, help develop the business society.

According to the research «Monitoring of corporate social responsibility)), the factors of CSR define the image of the company by 49 %, its brand — 35 % and financial situation — 10 % [4]. However, the new research from Deloitte shows the evolution of motives, which encourage companies to implement a corporate responsibility. First of all, it is a helpful for a company to enter and consolidate its position on the new markets, attracting talented personnel, achieving and consolidating the loyalty, and developing the relationship with other stakeholders. The opportunity of socially responsible corporations to show business environments its own experience of the best practice of doing business and solving the key problems in its activity is more valuable for society than financial investments in the frame of realizing the program of social respo-?sibility [2]. Also a lot of companies have been starting to connect the

idea of social responsibility with the opportunity and ability to show modern innovation of products and services, which allows improvements in the quality of life. That is why high-tech companies make investments into innovation projects, and pharmaceuticals organizations focus on health protection. These motives of making such investments would be used as a ground for advertisements and strategies of market positioning for goods and services. As a result, it could be said that the actions of corporations in the sphere of social responsibility are more often used for improvement of relations between companies and their stakeholders: state authorities, suppliers, clients and staff. Nowadays CSR could be implemented through social projects and programs, which can be divided into two big groups:

1. Programs which are created for improvement of cooperation with individuals from external environment (ecological programs, educational programs and supporting of scientific researches, coope-?ation with local authorities, supporting of culture and arts etc.).

2. Programs which are created for development of cooperation with individuals from internal environment (programs of personnel development, social support of staff, programs of social packages, programs of health protection, medical care etc.) [7].

Due to the fact that they understand it is the efficient key to success, companies and huge international corporations in the Ukrainian market are starting to form and implement the strategies of corporate social responsibility supporting realization of general corporate strategy. However, the process of implementing CSR in Ukraine is slow because of misunderstanding the role and meaning of CSR. The level of understanding of CSR by Ukrainian business representatives for the last five years has not been changed: a majority of the companies believe that CSR is only charity and development of its own personnel. In 2005 and 2010 only one third of the companies agreed that accomplishment of ecological projects and participation in the regional projects is a field of social responsibility. A small number of companies, who believed so in 2005, also believed in 2010 that such aspect as disclosure of information is a part of CSR. At the same time, a disclosure of information is a very important problem in the activity of socially responsible companies, which function according to the principles of openness and transparency. According to research by the Centre named «Development of Corporate Social Respo-?sibility», the Ukrainian companies are not open enough in front of society a 60 % of the companies' detailed information about their activity available is only for internal use [8].

The problem of forming and implementing the actions of CSR in the corporations is that the company does not have a specific department responsible for the implementation of CSR. This issue is quite often divided between different departments: PR / Strategic Communication — 36 %, Human Resource department — 10 %, Marketing — 7 %, Strategic Development — 4 %, Risk Management / Audit — 1 % [5].

For the development and implementation of CSR strategy, the model «Plan, Do, Check, Improve» should be introduced [10]. The framework is intended to help boards of directors, managers, employees and others assess a firm's effects on society and the challenges and opportunities associated with taking these impacts into account in decision-making and business activities. It should also help stakeholders transform these insights into strategies, commitments, organizational changes and activities that can form the basis for measuring, reporting and evaluating CSR performance and making appropriate changes. A well-designed CSR implementation framework integrates economic, social and environmental decision making throughout a firm from the board of directors to front-line officials and contractual supply-chain partners and is therefore intimately connected with effective corporate governance. A properly governed firm can reap optimal benefits for itself and its shareholders, and in turn for those who are affected by the firm's activities. At all levels of a firm, inadequate direction and control of its activities and assets can jeopardize its very ability to operate. That being said, there is considerable value in proceeding with CSR implementation in a systematic way, in harmony with the firm's mission and sensitive to its business culture, environment and risk profile, and operating conditions. It is clear that many firms are already engaged in custo-?er, employee, community and environmental activities that can be excellent starting points for firm-wide CSR approaches. CSR can be phased in by focusing carefully on priorities in accordance with resource or time constraints. Alternatively, more comprehensive and systematic approaches can be pursued when resources and overall priorities permit or require. The bottom line is that CSR needs to be integrated into the firm's core decision making, strategy, management processes and activities, be it incrementally or comprehensively.

As a conclusion, it should be highlighted that Ukrainian corpo-?ations could successfully operate in the world market only under certain conditions such as increasing by transparency, social orien-?ation and by responsibility, improving energy and ecological efficiency, thus raising the attitude about improving the quality of

products and services. It could be a big step forward for the corporations which have intent to use models and strategies CSR. The results of it could be implemented as international partners, drawing customer's attention and receiving help from the government. That is why the implementation of CSR strategies in corporations should be wider, and top-managers, shareholders, and owners have to take the lead.


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