The role of agroholdings in the creation of cooperatives by rural communities

Purpose. The purpose of this study was a theoretical and methodological generalization of the agroholdings’ social initiatives within their charitable activities with the interaction of cooperatives based on the institutional model. Methodology / approach. This study was based on applying the general economic and special methods. The abstract-logical method was used for scientific discussion and scientific views about the role of agroholdings and their impact on the rural population. The method of critical analysis was applied to outline the social aspects of agroholdings’ activities. The system approach allowed contouring the main problems that arise in the process of agroholding growing. The study of the state of agricultural cooperatives’ financing by agroholdings was also conducted. On the basis of the monographic method the motives and directions of the management of separate agroholdings within their social responsibility limits were defined. With the generalization method, the basic forms and resources of agroholdings’ social responsibility were determined. Thanks to the correlation-regression analysis, it was established the relationship between the social responsibility indicator of agroholdings and their efficiency by EBITDA, as well as their social responsibility and market capitalization degree. Results. The study examined the main scientific approaches to the role of agroholdings, which allowed outlining their ambiguity and contradictions. The systematization of the presented materials allowed developing arguments in favor of the agroholdings’ functioning and identifying counterarguments of their activities as well as emphasizing the need of the basic methodological provisions for further harmonious development of agroholding structures and cooperatives. The results of the presented empirical analysis showed a low level of agroholdings’ social responsibility, which affects the development of the rural areas and significantly increases social tensions. On the basis of the conducted research and data processing the mechanism of agroholdings’ and cooperatives’ interaction on the basis of social responsibility is offered. It was proved that the basis of the presented interaction must be financial and economic, social, marketing and environmental motives. Originality / scientific novelty. It was improved the theoretical and methodological approach to the formation of institutional model of the agroholdings’ and cooperatives’ interaction on the principles of social responsibility, which provides financial and economic, social, marketing, environmental problems solutions by agroholdings and promotes the rural community’s development in the near future. Practical value / implications. The results of the study are of great practical importance and can be useful for various ownership forms of agricultural producers as well as for agricultural holding organizations which are interested in harmonizing the rural economy development.