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Assessment of the Impact of Social Responsibility on Poverty

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  • Egle Jakunskiene

    (Faculty of Public Governance and Business, Mykolas Romeris University, LT-08303 Vilnius, Lithuania)

Abstract

Being one of the open social innovations of business entities, social responsibility is taking an important role in our society. It not only contributes to the improvement of the financial indicators of business entities, but also has a significant impact on the economic development of countries and the creation of well-being of the society members. The business contribution to environmental and social initiatives influences various economic processes and, at the same time, affects the level of poverty in countries. The purpose of this thesis is to review the concept of social responsibility and its content after the analysis of the scientific literature, and to assess the impact of social responsibility on poverty indicators after an empirical study. The assessment was performed by using the methods of analysis of the scientific literature, mathematical–statistical analysis, comparative analysis, correlation analysis, as well as by studying the presented statistical data at the level of the three Baltic States — Lithuania, Latvia, and Estonia. The conducted research manifested a significant impact of the business units operating in the production sector on the employed people who are at the brink of poverty, by categorizing them by sex, age, and education. The research revealed the negative impact of the business social responsibility that is directed towards the environment field on the poverty rates of older age (65+) residents, due to the installation of new equipment and technologies. Additionally, business investments mostly affect people with secondary, and lower than secondary, education. The influence of the actual pollution amount in the production sector, to ensure the financial stability of the society, was observed. The research results are significant not only to the Baltic region, but to other economies that are seeking to reduce the poverty level in the country, by integrating the business social responsibility as well.

Suggested Citation

  • Egle Jakunskiene, 2021. "Assessment of the Impact of Social Responsibility on Poverty," Sustainability, MDPI, vol. 13(16), pages 1-19, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:9395-:d:619017
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    2. Yiming Song & Yating Zhan & Yanbin Qi & Dingde Xu & Xin Deng, 2022. "Does Political Participation Influence the Waste Classification Behavior of Rural Residents? Empirical Evidence from Rural China," Agriculture, MDPI, vol. 12(5), pages 1-12, April.

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