Accumulation of social capital as a positive externality of corporate social responsibility development in transition economies

Abstract

ACCuMulAtion of SoCiAl CAPitAl AS A PoSitiVe externAlitY of CorPorAte SoCiAl reSPonSiBilitY deVeloPMent in trAnSition eConoMieS Purpose. Justification of a hypothesis about positive externality of involvement of companies in projects of corpo rate social responsibility that is connected with development of the relations of trust and accumulation of the social capital at the level of separate enterprises and national economy in general. An important aspect of the research is determination of impact of social responsibility of business on accumulation of social capital in postSoviet states and development of practical recommendations concerning improvement of state regulation of this field of activity. Methodology. The research is based on general scientific methods (scientific abstraction, analysis, synthesis, and comparative analysis) and methods of statistical data analysis. Results of correlation analysis demonstrate close inter relation between development of corporate social responsibility and level of accumulation of social capital in devel oped countries and transitive economies. The comparative analysis of practice of implementation and development of corporate social responsibility in selected countries using data of World Bank, The Legatum Institute Foundation, UN Global Compact and Transparency International has identified peculiarities and obstacles in a way of develop ment of these processes in postSoviet states. findings. The problem of accumulation of the social capital as positive externality of implementation of practice of corporate social responsibility in market economy is investigated. Major internal and external factors that generate such externality at the level of separate enterprises, and national economy in general are defined. The interrelation between the number of socially responsible companies and the level of development of the social capital in developed countries and transitive economies is analyzed. Core factors which interfere with expansion of the model of social responsibility of business in the countries with transitive economy are discovered. Practical recommendations con cerning forms of the state support of corporate social responsibility in postSoviet states are formulated. originality. The hypothesis concerning accumulation of the social capital as positive externality of development of corporate social responsibility in transitive economies is confirmed. Core factors which interfere with development of socially responsible business and have negative impact on accumulation of social capital in postSoviet states are defined. Practical value. The authors proved that effective reforms in postSoviet states require active measures of state directed to implementation and development of corporate social liability by support and encouragement of business to socially important problems. Practical recommendations concerning accumulation of the social capital in transi tive economies are proved, including improvement of legal regulations, providing fiscal privileges or direct state ...

The Development of Corporate Social Responsibility in the Context of Overcoming a Welfare State Crisis: a Theoretical and Empirical Analysis

“…Thus, according to the data presented in Figure 5, there is a direct correlation between the level of gov-ernment social expenditures (% of GDP) and the level of social capital accumulation. At the same time, as our previous research showed, the development of CSR is also an important factor in social capital accumulation, through the creation and promotion of trustful relationships among stakeholders (Bazylevych et al 2019). Corporate social responsibility implies business responsibility in four main areas: economic (the production of goods and services that are demanded by society), legal (the functioning of business in accordance with current legislation), ethical (the protection of the rights of employees, consumers and other stakeholders beyond the requirements stipulated by law) and voluntary (business response to the expectations and social needs of society, addressing such global social problems as poverty, hunger, and discrimination) (Carroll 1979).…”

Corporate social responsibility as a modern strategy of enterprises and its economic and social consequences

“…According to the current studies, the efficiency of CSR also depends on other social, political, and economic factors, such as the level of corruption, Theoretical and methodological approaches to the formation of a modern system of national and international enterprises, organizations and institutions' development advancement of legislation system, violation of human rights, discrimination, macroeconomic and political instability, lack of social guarantees from the state, as mentioned weaknesses can reduce or eliminate the overall positive effect of CSR on the population wellbeing [9].…”

“…Moreover, current studies have shown that the process of transferring some social functions of the state as the protection of the rights and freedoms of citizens, health and social insurance, education and training to the private sector in the form of corporate social responsibility can improve the efficiency of public financial resources, and also contributes to the accumulation of human and social capital, which is a prerequisite for long-term economic growth of the country [9].…”

Methods for Evaluating the Effectiveness of Corporate Social Responsibility

“…У цьому контексті слід зазначити, що основним результатом соціальної відповідальності бізнесу є нагромадження соціального капіталу, що проявляється як окремий ресурс та як засіб мобілізації необхідних ресурсів. Соціальний капітал як ресурс акумулюється в результаті: 1) побудови довірчих міжособистісних стосунків між працівниками, управлінцями і працівниками, власниками та управлінцями, представниками бізнесу, споживачами та представниками бізнесу; 2) формування соціальної мережі на основі персональних «зв'язків»; 3) залучення громадськості до вирішення спільних проблем; 4) формування та слідування загальноприйнятим соціальним нормам [1]. Отже, побудова довірчих відносин та очікування спільної вигоди сприяють постійності норм поведінки економічних суб'єктів без будь-якого інституційного або іншого мотиваційного механізму, що сприяє подальшій акумуляції соціального капіталу.…”