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State Regulation Of The Development Of Corporate Social Responsibility In The Transformation Type Countries In Eastern Europe

Author

Listed:
  • Ivan Parubchak

    (Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies Lviv, Ukraine)

  • Nadiia Radukh

    (Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies Lviv, Ukraine)

Abstract

The purpose of this research is to investigate the processes of formation of corporate social responsibility in countries of transformation type in Eastern Europe and to study the perspectives of development of socially responsible investing based on studying the world experience in the field of corporate responsibility and the practices of its realization by economic entities in the world. The theoretical and methodological basis of the research is the dialectical method of cognition of the processes of formation of corporate social responsibility in transformation societies, using the experience of the foreign community in similar processes and the possibility of applying individual practices in domestic business. The following scientific methods were used in the research: abstract-logical, in particular, its methods of generalization, analogy, analysis and synthesis, induction and deduction for the formulation of theoretical generalizations of research results, formulation of conclusions and suggestions. Main objects of the study are: theoretical bases of formation and realization of mechanisms of state regulation of corporate social responsibility and socially responsible investing in the world and opportunities to apply their experience in the countries of Eastern Europe; determining the current level of corporate social responsibility at enterprises and organizations and assessing the prospects for their development and influence on socio-economic processes. Practical implications. The stakeholder theory is considered, which reveals the essence of corporate social responsibility in the process of satisfying interests and requirements of various counterparties that may affect the ultimate financial results of the enterprise. It is determined that the main causes of state regulation of corporate social responsibility are a moral obligation, sustainability, and reputation. Corporate social responsibility is an effective tool for enterprise development, as well as for the development of the process of state regulation and constructive dialogue with different social categories that enhances the investment attractiveness of the enterprise and strengthens its reputation, promotes effective labour relations and enhances productivity, supports the marketing policy and trust of the target audience by forming a positive opinion about products, works or services of the enterprise. Modern strategies on the basis of which companies perform the formation of their investment portfolios are considered (sustainable investment strategy, norms-based screening and exclusion of holding from investment universe, integration of ESG factors in financial analysis, impact investments, engagement and voting on sustainability matters). The issue of the undeveloped practice of submitting social reports and difficult public access to them by stakeholders is considered. A model for analysing the prospects of corporate social responsibility development at enterprises is proposed; corporate social responsibility strategy provides for the fulfilment of economic, social, and environmental goals for the successful implementation of corporate social responsibility and socially responsible investment initiatives.

Suggested Citation

  • Ivan Parubchak & Nadiia Radukh, 2019. "State Regulation Of The Development Of Corporate Social Responsibility In The Transformation Type Countries In Eastern Europe," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(5).
  • Handle: RePEc:bal:journl:2256-0742:2017:5:5:16
    DOI: 10.30525/2256-0742/2019-5-5-121-127
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    References listed on IDEAS

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    1. Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2006. "Corporate Social Responsibility: Strategic Implications," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 1-18, January.
    2. Sakis Kotsantonis & Chris Pinney & George Serafeim, 2016. "ESG Integration in Investment Management: Myths and Realities," Journal of Applied Corporate Finance, Morgan Stanley, vol. 28(2), pages 10-16, June.
    3. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Khan, Muhammad Arif, 2022. "ESG disclosure and Firm performance: A bibliometric and meta analysis," Research in International Business and Finance, Elsevier, vol. 61(C).

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    More about this item

    Keywords

    corporate social responsibility; investments; socially responsible investing; strategy; transformation; state regulation; countries of Eastern Europe;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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