THE POTENTIAL OF SOCIAL RESPONSIBILITY OF BUSINESS: MAIN CHARACTERISTICS AND POLYSTRUCTURALITY

Author
, professor, Kharkiv, Pushinska, 77

In heading

 Economic theory;

Signed print

 28.03.2024

Issues number

 2024 - 1 (56)

Page

 25-41

Type of articles

 Scientific article

Code UDK

 332.012.2

ISSN print

 2411-5584

Abstract

 Problem setting. In the modern period research of the potential of socially responsible business as a factor of sustainable social development is being updated, which is due to the following interrelated reasons:
firstly, in the global aspect, it is the formation of a new business environment, the requirements, challenges and threats of which are factors in the transformation of business forms, processes and ecosystems, including models of its socially responsible behavior;
secondly, at the national level, the social responsibility of Ukrainian business in the conditions of war and the formation of a war economy has acquired a new meaning and new forms;
thirdly, at the microeconomic level, the social orientation of enterprises is characterized by new directions, methods and measures.
Modern transformations of the social responsibility of business determine the need to improve and optimize its potential, which requires systematic scientific analysis.
Recent research and publication analysis. In the modern period researchers of theoretical and applied aspects of the formation and implementation of the business potential of business entities, generally, focus on revealing its general characteristics as a complete system, structure, methods of evaluation, and optimization. A certain development is inherent in the study of such components of business potential as social and environmental potential, but, firstly, they did not receive a proper level of disclosure of their interrelationships and role in ensuring sustainable business development, which is characterized by the unity of its economic, social and environmental factors and results.
Secondly, the business potential as a whole and its components, in particular social and environmental potential, are not analyzed by researchers in the context of resource provision of socially responsible business. Thirdly, the potential of social responsibility of business is not defined as a special object of economic analysis in both its theoretical and applied directions.
Paper objective. The purpose of the article is to reveal the essential characteristics and poly-structural potential of the social responsibility of business based on systemic and structural-functional approaches.
Paper main body. The study of the potential of social responsibility of business is based on:
– concepts of social responsibility of business;
– a systematic approach to the analysis of business potential as a structured set of resources, opportunities and capabilities of the enterprise to achieve the goals of economic activity in the conditions of a changing business environment;
– the structural-functional approach to determining the interconnected components of business potential and the potential of social responsibility of business.
According to the spheres of activity of the enterprise, its functions can be combined into such groups as purely economic and socio-ecological functions, the implementation of which is ensured by the organizational and management function. Based on this, according to the functional approach, the complex components of the enterprise’s business potential are:
– the potential for implementation and development of the enterprise’s economic activity is its economic potential, which ensures the implementation of such business functions as production, sales, market, financial and investment, innovation, etc.;
– the potential for realization and development of the social function of business – social potential;
– the potential for implementation and development of the ecological function of business – ecological potential;
– organizational and management potential as a set of competencies of the enterprise as a business organization and its staff in terms of business process management.
Each component of the enterprise’s business potential has its structure, formation and optimization, like the business potential as a whole, is aimed at ensuring business resource synergy.
The potential for social responsibility of a business, on the one hand, depends on the level, scale, and effectiveness of realizing the potential of the enterprise in the economic process. On the other hand, it is a resource base for socially responsible use of the enterprise’s business potential, conducting socially responsible business.
Conclusion of the research. Socially responsible behavior of business entities is a factor in the sustainable development of business and society as a whole. Its scale and results depend on the potential of social responsibility of business, the conclusions of which reveals the situation:
1) the category “potential of social responsibility of business” is a scientific and methodical toolkit of theoretical and applied research on the essence, directions, modern trends of socially responsible business behavior, and transformations and directions for optimizing the business potential of socially active economic entities;
2) the potential of social responsibility of business is the potential of socially responsible business behavior in any sphere of business activity, the potential of performing all functions of the enterprise as a socio-economic system;
3) the potential of social responsibility of business is the potential of its sustainable development, which combines resources, harmonizes goals and ensures the results of the responsible attitude of business entities to the economic, social and environmental interests and demands of society;
4) components of the potential of social responsibility of business are:
– resource potential, the formation of which is a function of the economic, organizational and management potential of the enterprise as structural elements of its business potential;
– functional potential, which includes social and environmental potential and integrates all components of the enterprise’s business potential to achieve the goals of sustainable development;
5) the potential of social responsibility of business is polystructural, which determines the need to ensure the synergy of its components.
Short abstract for an article
Abstract. The article substantiates the scientific expediency and practical significance of determining the potential of social responsibility of business as a special object of economic analysis. The main characteristics of the potential of social responsibility of business, its structure, including resource and functional potentials, polystructure are disclosed. Social and environmental potentials as functional components of the potential of social responsibility of business are characterized.

Keywords

 social responsibility of business, socially responsible business, socially responsible behavior, business potential, potential of social responsibility, social and environmental potential, polystructure of the potential of social business responsibility

Reviewer

External reviewer

Article in PDF

 25-41

Bibliography

 1. Myskiv, G., & Pasinovych, I. (2023). Stalyi rozvytok i sotsialna vidpovidalnist v umovakh viiny v Ukraini [Sustainable development and social responsibility under war conditions in Ukraine]. Visnyk Natsionalnoho universytetu “Lvivska politekhnika”. Seriia “Problemy ekonomiky ta upravlinnia” – Journal of Lviv Polytechnic National University. Series of Economics and Management Issues, 7(1), 22–36. https://doi.org/10.23939/semi2023.01.021 [in Ukrainian].
2. Lysenko, A., & Koryak, A. (2020). Poniattia ekonomichnoho potentsialu ta kontseptualizatsiia pidkhodiv do yoho traktuvannia [The concept of economic potential and conceptualization of approaches to its interpretation]. Tsentralnoukrainskyi naukovyi visnyk. Ekonomichni nauky – Central Ukrainian Scientific Bulletin. Economic Sciences, 5(38), 221–227. https://doi.org/10.32515/2663-1636.2020.5(38).221-227 [in Ukrainian].
3. Vaskivska, K., Lozinska, L., & Galimuk, Ju. (2020). Ekonomichnyi potentsial pidpryiemstva v umovakh zmin: sut ta kharakterni osoblyvosti [The enterprise economic potential in the face of change: The essence and characteristics]. Efektyvna ekonomika – Efficient Economy, 5. https://doi.org/10.32702/2307-2105-2020.5.7 [in Ukrainian].
4. Zhukovska, V. M. (2018). Sotsialnyi rozvytok orhanizatsii: potentsial, upravlinnia, innovatsii [Social development of the organization: Potential, management, innovations]. Kyiv National University of Trade and Economics. https://knute.edu.ua/file/MjIxNw==/8d9aa37c28e4670ab595fe94442d9ff6.pdf [in Ukrainian].
5. Maliuk, O. S. (2017). Formuvannia systemy pokaznykiv otsinky ekolohichnoho potentsialu vyrobnychoho pidpryiemstva [Formation of the system of indicators of evaluation of the ecological potential of the manufacturing enterprise]. Ekonomika ta suspilstvo – Economy and Society, 9, 853–858. https://economyandsociety.in.ua/journals/9_ukr/148.pdf [in Ukrainian].
6. ISO 26000:2010. Guidance on social responsibility, and OECD Guidelines for Multinational Enterprises. (2011). ISO. https://www.iso.org/files/live/sites/isoorg/files/store/en/PUB100418.pdf
7. Kuzmin, O. Ye., Stanasyuk, N. S., & Ugolkova, O. Z. (2021). Sotsialna vidpovidalnist biznesu: poniattia, typolohiia ta chynnyky formuvannia [Social responsibility of business: Concept, typology and formation factors]. Menedzhment ta pidpryiemnytstvo v Ukraini: etapy stanovlennia ta problemy rozvytku – Management and Entrepreneurship in Ukraine: The Stages of Formation and Problems of Development, 2(6), 56–64.
https://doi.org/10.23939/smeu2021.02.056 [in Ukrainian].
8. Kontseptsiia realizatsii derzhavnoi polityky u sferi spryiannia rozvytku sotsialno vidpovidalnoho biznesu v Ukraini na period do 2030 roku: Rozporiadzhennia Kabinety Ministriv Ukrainy vid 24.01.2020 No. 66-r [The concept of implementation of state policy in the sphere of promoting the development of socially responsible business in Ukraine for the period up to 2030: Order of the Cabinet of Ministers of Ukraine dated January 24, 2020]. https://zakon.rada.gov.ua/laws/show/66-2020-%D1%80 [in Ukrainian].
9. Aliyev, R. (2019). Sutnist poniattia “potentsial pidpryiemstva” ta yoho skladnyky [The essence of the concept of “enterprise potential” and its components]. Pidpryiemnytstvo ta innovatsii – Entrepreneurship and Innovation, (9), 54–59. https://doi.org/10.37320/2415-3583/9.8 [in Ukrainian].
10. Shtyk, Yu. (2021). Rozvytok ta vykorystannia potentsialu biznes-struktur: finansova, investytsiina, ekosystemna skladova [Development and use of the potential of business structures: Financial, investment, ecosystem components]. Efektyvna ekonomika – Efficient Economy, 4. https://doi.org/10.32702/2307-2105-2021.4.111 [in Ukrainian].
11. Povstianyi, H. V. (2022). Doslidzhennia struktury ta klasyfikatsiia vydiv potentsialu pidpryiemstva [Research of the structure and classification of types of potential of the enterprise]. Efektyvna ekonomika – Efficient Economy, 1. https://doi.org/10.32702/2307-2105-2022.1.202 [in Ukrainian].
12. Ivanova, T. V. (2021). Mekhanizm sotsialno-vidpovidalnoho investuvannia na pidpryiemstvakh [Mechanism of socially responsible investment at the enterprises]. Ekonomichnyi visnyk NTUU “Kyivskyi politekhnichnyi instytut” – Economic Bulletin of NTUU “Kyiv Polytechnical Institute”, 19, 160–163. https://doi.org/10.20535/2307-5651.19.2021.231976 [in Ukrainian].
13. Efremova, N., Kovalenko, E., & Prysvitla, O. (2019). Sotsialno vidpovidalni investytsii: sutnist ta napriamy spriamuvannia [Socially responsible investments: Essence and directions]. Modern Economics, 13, 95–100. https://doi.org/10.31521/modecon.V13(2019)-15 [in Ukrainian].
14. Panchenko, N. G. (2018). Sotsialni investytsii yak providnyi instrument korporatyvnoi sotsialnoi vidpovidalnosti [Social investments as a leading tool of corporate social responsibility]. Visnyk ekonomiky transportu i promyslovosti – Herald of the Economy of Transportand Industry, 63, 241–247. http://lib.kart.edu.ua/bitstream/123456789/1662/1/Panchenko.pdf [in Ukrainian].
15. Kasych, A. O., & Palamarchuk, V. A. (2022). Metodyka otsiniuvannia rivnia ekolohichnoi vidpovidalnosti promyslovykh pidpryiemstv [Methodology for assessing the environmental responsibility of industrial enterprises]. Zhurnal stratehichnykh ekonomichnykh doslidzhen – Journal of Strategic Economic Research, (1), 26–37. https://doi.org/10.30857/2786-5398.2022.1.3 [in Ukrainian].

Code DOI

 https://doi.org/10.31359/2411-5584-2024-56-1-25

28.03.2024