Social Responsibility as a Tool for Managing Sustainable Development of an Industrial Enterprise
Raiko D. V., Podrez O. I.

Raiko, Diana V., and Podrez, Olha I. (2020) “Social Responsibility as a Tool for Managing Sustainable Development of an Industrial Enterprise.” The Problems of Economy 1:173–189.
https://doi.org/10.32983/2222-0712-2020-1-173-189

Section: Economics and Enterprise Management

UDC 658.1

Abstract:
The aim of the article is generalizing and clarifying the theoretical basis of social responsibility of industrial enterprises, taking into account the modern concept of sustainable development in Ukraine; developing scientific (two-level assessment procedure) and methodological (calculation of the integral index) approaches to assessing corporate social responsibility. A distinctive feature of these approaches is the consistency of indicators of the influence of environmental factors and components of sustainable development of the enterprise. The article analyzes the essence of the notion of social responsibility, its concepts, principles, motives, advantages of and obstacles to its implementation; the notion “corporate social responsibility (CSR)” is highlighted in the framework of sustainable development. A model for the formation of theoretical and methodological approaches is proposed. The difference of the model from previously developed ones is that social responsibility is assessed by management levels (macro, meso and micro level), relationships with stakeholders, enterprise life cycle, etc. A scientific approach and a procedure for assessing corporate social responsibility in the framework of sustainable development are developed. The procedure consists of two levels. The methodological approach to assessing corporate social responsibility in the framework of sustainable development is improved. It comprises indicators for assessing the impact of external stakeholders on the economic component (first level of assessment) and that of the economic component on the environmental, energy and social components (second level). The indicators characterizing activities of an enterprise to improve the living conditions of residents of the region where it functions are identified. The methodological approach is based on the use of the method of index numbers. The presented developments allow building a socially responsible enterprise, whose activities will be aligned with the sustainable development strategy, coordinated with business partners (stakeholders), and will facilitate carrying out measures to ensure social security and energy supplies for workers and residents of the region and reduce emissions of harmful substances.

Keywords: social responsibility, corporate social responsibility, concepts of social responsibility, sustainable development.

Fig.: 2. Tabl.: 5. Formulae: 17. Bibl.: 47.

Raiko Diana V. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Marketing, National Technical University «Kharkiv Polytechnic Institute» (2 Kyrpychova Str., Kharkіv, 61002, Ukraine)
Email: diana.raiko2016@gmail.com
Podrez Olha I. – Department of Marketing, National Technical University «Kharkiv Polytechnic Institute» (2 Kyrpychova Str., Kharkіv, 61002, Ukraine)
Email: olha.podrez@gmail.com

List of references in article

United Nations Global Compact. http://www.unglobalcompact.org/AboutTheGC/index.html
Shutaieva, O. O. “Sotsialna vidpovidalnist v dosiahnenni konkurentospromozhnosti pidpryiemstva“ [Social Responsibility in Achieving Competitiveness of the Enterprise]. Kultura narodov Prichernomorya, no. 273 (2014): 73-78.
Lisilene, Mello da Silveira, and Maira, Petrini. “Sustainable Development and Corporate Social Responsibility: a bibliometric analysis of International Scientific Production“. Gest. Prod., Sao Carlos, vol. 25, no. 1 (2018): 56-67. DOI: 10.1590/0104-530X3173-16
Bowen, H. Social Responsibilities of the Businessman. New York: Harper & Row, 1953.
Crowther, D., and Lauesen, L. Handbook of Research Methods in Corporate Social Responsibility. Edward Elgar Publishing, 2017.
Kotler, F., and Li, N. Korporatyvna sotsialna vidpovidalnist. Yak zrobyty yakomoha bilshe dobra dlia vashoi kompanii ta suspilstva [Corporate Social Responsibility. How to do the Best Possible for Your Company and Society]. Kyiv: Standart, 2005.
“Vyznachennia: korporatyvna sotsialna vidpovidalnist“ [Definition: Corporate Social Responsibility]. http://csrgender.org.ua/discrimination/53-zagalna-informaciya-pro-ksv-taender.html
Porter, M., and Kramer, M. “Creating Shared Value: How to Reinvent Capitalism - and Unleash a Wave of Innovation and Growth“. Harvard Business Review, vol. 89 (1/2) (2011): 62-77.
Friedman, M. “The Social Responsibility of Business is to increase its Profit“. New York Times Magazine, September 13 (1970): 122-126.
Holme, L., and Watts, R. “Corporate social responsibility: Making Good Business Sense“. Conches-Geneva, Switzerland : World Business Council for Sustainable Development, 2000. http://research.dnv.com/csr/PW_Tools/PWD/1/00/L/1-00-L-2001-01-0/lib2001/WBCSD_Making_Good_Business_Sense.pdf
Hrishnova, O. “Sotsialna vidpovidalnist biznesu: sutnist, znachennia, stratehichni napriamy rozvytku v Ukraini“ [Social Responsibility of Business: Essence, Value, Strategic Directions of Development in Ukraine]. Ukraina: aspekty pratsi, no. 7 (2010): 3-8.
Karpenko, O. O., and Mandziuk, N. K. “Sotsialna vidpovidalnist iak chynnyk ekonomichnoho rozvytku vitchyznianykh pidpryiemstv“ [Social Responsibility as a Factor of Economic Development of Domestic Enterprises]. Efektyvna ekonomika. 2018. http://www.economy.nayka.com.ua/?op=1&z=6219
Kornieva, I. O. “Sotsialna korporatyvna vidpovidalnist yak instrument pokrashchennia rezultativ roboty pidpryiemstva“ [Social Corporate Responsibility as a Tool for Improving Enterprise Performance]. Molodyi vchenyi, no. 5 (45) (2017): 618-621.
Krasnokutska, N. S. “Korporatyvna sotsialna vidpovidalnist yak pryntsyp svidomoho kapitalizmu“ [Corporate Social Responsibility as a Principle of Conscious Capitalism]. Visnyk Natsionalnoho tekhnichnoho universytetu «KhPI». Ser. : Aktualni problemy rozvytku ukrainskoho suspilstva, no. 29 (1251) (2017): 98-102.
Lahuta, Ya. M. “Vnutrishnia korporatyvna sotsialna vidpovidalnist pidpryiemstv: osnovni teoretychni ta praktychni aspekty“ [Internal Corporate Social Responsibility of Enterprises: Basic Theoretical and Practical Aspects]. Skhidna Yevropa: ekonomika, biznes ta upravlinnia, no. 3 (08) (2017): 153-157.
Lunkina, T. I. “Sotsialna vidpovidalnist yak skladova chastyna zbalansovanoho rozvytku derzhavy“ [Social Responsibility as an Integral Part of the Balanced Development of the State]. Intelekt XXI, no. 5 (2016): 20-23.
Matviichuk, L. O., and Tkach, K. I. “Heneza kontseptsii korporatyvnoi sotsialnoi vidpovidalnosti“ [The Genesis of Corporate Social Responsibility Concepts]. Ekonomika i suspilstvo, no. 6 (2016): 332-337.
Kharchenko, T. O., and Viedienina, K. P. “Pryntsypy korporatyvnoi sotsialnoi vidpovidalnosti yak faktor formuvannia konkurentnykh perevah orhanizatsii“ [Principles of Corporate Social Responsibility as a Factor of Formation of Competitive Advantages of the Organization]. Ekonomichni studii, no. 5 (18) (2017): 15-19.
Kholodnytska, A. V. “Aktualni aspekty pidvyshchennia sotsialnoi efektyvnosti upravlinnia“ [Topical Aspects of Improving the Social Effectiveness of Management]. Naukovyi visnyk ChDIEU, no. 4 (16) (2012): 159-162.
Shandova, N. V. “Korporatyvnyi rozvytok sotsialnoi vidpovidalnosti v konteksti zhyttievoho tsyklu orhanizatsii“ [Corporate Development of Social Responsibility in the Context of the Organizational Life Cycle]. Ekonomichnyi prostir, no. 102 (2015): 249-259.
Shutaieva, O. O. “Sotsialna vidpovidalnist v dosiahnenni konkurentospromozhnosti pidpryiemstva“ [Social Responsibility in Achieving Competitiveness of the Enterprise]. Kultura narodov Prychernomoria, no. 273 (2014): 73-78.
European Alliance for CSR. https://www.businesseurope.eu/european-allience-csr
Yevdokymov, F. I., and Hubska, M. V. “Sotsialnyi kapital pidpryiemstva: metody vymiru“ [Social Capital of the Enterprise: Methods of Measurement]. Ekonomichnyi visnyk Natsionalnoho hirnychoho universytetu. 2006. http://nbuv.gov.ua/UJRN/evngu_2006_1_14
Honcharova, S. Yu., and Vodnytska, N. V. “Sotsialna vidpovidalnist ta rol kompensatsiinoho paketu v yii formuvanni“ [Social Responsibility and the Role of the Compensation Package in its Formation]. Nauchnyye trudy DonNTU. Seriya : ekonomicheskaya, no. 103-2 (2006): 111-118.
Suyetenkov, Ye. N., and Pasko, N. I. Osnovy menedzhmenta [Fundamentals of Management]. Moscow: FORUM; INFRA-M, 2005.
Okhrimenko, O. O., and Ivanova, T. “Sotsialna vidpovidalnist“ [Social Responsibility]. Kyiv, 2015. http://ied.kpi.ua/wp-content/uploads/2015/10/Socialna-vidpovidalnist.pdf
Korporativnaya sotsialnaya otvetstvennost: obshchestvennyye ozhidaniya. Potrebiteli, menedzhery, lidery obshchestvennogo mneniya i eksperty otsenivayut sotsialnuyu rol biznesa v Rossii [Corporate Social Responsibility: Social Expectations. Consumers, Managers, Opinion Leaders and Experts Evaluate the Social Role of Business in Russia]. Moscow: Assotsiatsiya menedzherov, 2003.
Hrytsyna, L. A. “Korporatyvna sotsialna vidpovidalnist pidpryiemstv: zarubizhnyi ta vitchyznianyi dosvid“ [Corporate Social Responsibility of Enterprises: Foreign and Domestic Experience]. Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu. Seriia : Mizhnarodni ekonomichni vidnosyny ta svitove hospodarstvo, no. 10 (1) (2016): 99-102.
Elkington, J. “Enter the Triple Bottom Line“. In The Triple Bottom Line: Does it All Add Up? Assessing the Sustainability of Business and CSR, 1-16. London: Earthscan, 2004.
Karpenko, O. O., and Mandziuk, N. K. “Sotsialna vidpovidalnist yak chynnyk ekonomichnoho rozvytku vitchyznianykh pidpryiemstv“ [Social Responsibility as a Factor of Economic Development of Domestic Enterprises]. Efektyvna ekonomika. 2018. http://ojs.dsau.dp.ua/index.php/efektyvna-ekonomika/article/view/1153//
“Standarti ISO 26000 - Social responsibility“ [ISO 26000 Standards - Social Responsibility]. https://www.iso.org/iso-26000-social-responsibility.html
Povazhnyi, O. S., Orlova, N. S., and Kharlamova, A. O. Korporatyvne upravlinnia [Corporative Management]. Kyiv: Kondor, 2013.
Lopashchuk, I. A. “Aktualizatsiia sotsialnoho vektoru funktsionuvannia pidpryiemnytstva v Ukraini“ [Updating the Social Vector of Entrepreneurship in Ukraine]. Efektyvna ekonomika, no. 2 (2020). DOI: 10.32702/2307-2105-2020.2.50
Mosiichuk, I. V. “Korporatyvna sotsialna vidpovidalnist yak osnova suchasnoho rozvytku ekonomiky Ukrainy“ [Corporate Social Responsibility as a Basis for Modern Economic Development of Ukraine]. Ekonomika. Upravlinnia. Innovatsii. Seriia : Ekonomichni nauky. 2015. http://nbuv.gov.ua/UJRN/eui_2015_3_15
Lunkina, T. I., and Vlasiuk, I. M. “Korporatyvna sotsialna vidpovidalnist biznesu v Ukraini: suchasnyi stan ta napriamy vdoskonalennia“ [Corporate Social Responsibility for Business in Ukraine: Current Status and Directions for Improvement]. Modern Economics, no. 1 (2017): 24-30.
Raiko, D. V., and Podrez, O. I. “Formuvannia instrumentiv upravlinnia promyslovymy pidpryiemstvamy za teoretychnym i funktsionalnym pidkhodamy“ [The Formation of Instruments of Management of Industrial Enterprises According to the Theoretical and Functional Approaches]. Biznes Inform, no. 3 (2018): 386-393.
Krasnokutska, N. S. “Vplyv korporatyvnoi sotsialnoi vidpovidalnosti na reputatsiiu krain“ [The Impact of Corporate Social Responsibility on Countries' Reputation]. DVNZ «Kyivskyi natsionalnyi ekonomichnyi universytet imeni Vadyma Hetmana». 2018. http://ir.kneu.edu.ua/handle/2010/24216
Yevtushenko, V. A. “Otsinka korporatyvnoi sotsialnoi vidpovidalnosti: metody, obiekty, pokaznyky“ [Assessment of Corporate Social Responsibility: Methods, Objects, Indicators]. Visnyk NTU «KhPI», no. 46 (1019) (2013): 53-63.
Buian, O. A. “Pidkhody do otsinky efektyvnosti korporatyvnoi sotsialnoi vidpovidalnosti pidpryiemstv v Ukraini“ [Approaches to Assessing the Effectiveness of Corporate Social Responsibility of Enterprises in Ukraine]. Visnyk Dnipropetrovskoho universytetu. Seriia «Ekonomika», no. 6 (2) (2012): 159-165.
“Standart SA 8000“ [SA 8000 Standard. ]. https://www.assistem.kiev.ua/doc/sa_8000-2001_rus.pdf
Bocharova, N. A., and Shchepylina, A. K. “Intehralna otsinka rivnia korporatyvnoi sotsialnoi vidpovidalnosti pidpryiemstva“ [Integral Assessment of the Level of Corporate Social Responsibility of the Enterprise]. Ekonomika transportnoho kompleksu, no. 31 (2018): 45-62. DOI: 10.30977/ETK.2225-2304.2018.31.0.45
Kulyk, S. M., and Dovhan, O. M. “Otsinka stanu i perspektyvy rozvytku sotsialnoi vidpovidalnosti ahrarnoho biznesu“ [Assessment of the State and Prospects of Development of Social Responsibility of Agricultural Business]. Stalyi rozvytok ekonomiky, no. 4 (2015): 195-204.
Komarova, K. V., and Kovalchuk, N. “Sotsialna vidpovidalnist yak skladova stratehii rozvytku biznesu na pidpryiemstvakh Ukrainy“ [Social Responsibility as a Component of Business Development Strategy at Ukrainian Enterprises]. Innovatsiina ekonomika, no. 5-6 (2016): 25-30.
Kusyk, N. L., and Kovalevska, A. V. “Krytychnyi analiz metodiv otsinky efektyvnosti sotsialno vidpovidalnoi diialnosti pidpryiemstva“ [Critical Analysis of Methods of Evaluating the Effectiveness of Socially Responsible Enterprise]. http://dspace.onu.edu.ua:8080/handle/123456789/4714
Dielini, M. M. “Pokaznyky otsinky sotsialno-ekonomichnoi vidpovidalnosti pidpryiemnytstva v Ukraini“ [Indicators for Assessing the Socio-Economic Responsibility of Entrepreneurship in Ukraine]. Problemy ekonomiky, no. 4 (2017): 263-270.
Krasnokutska, N. S., and Hosn, S. “Otsinka zahalnoi zadovolenosti vzaiemovidnosynamy zi steikkholderamy“ [Assessment of Overall Satisfaction with Stakeholder Relationships]. European cooperation, no. 3 (43) (2019): 81-95.
Derevianko, T. A. “Otsinka sotsialnoi vidpovidalnosti ta yii vykorystannia v praktytsi pidpryiemstv“ [Assessment of Social Responsibility and its use in the Practice of Enterprises]. Visnyk Pryazovskoho derzhavnoho tekhnichnoho universytetu, no. 34 (2017): 76-82.