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Файл:Corporate Social Responsibility. Monograph
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solution, they create something new: the new way of financial support,
rendering services, production of goods and so on. In addition to the social
mission, the global idea is characteristic for foreign social enterprises. The
social enterprises in abroad run in several directions: microfinance and
employment, rendering services for socially unprotected groups of the
population and etc. Foreign social enterprises don’t depend on external
sources of financing. They serve as the additional resource of their activity.
The activity of Russian social enterprises is directed on the creation
of the definite social value, but they don’t lose sight of the economical
value.
External sources of financing are the main resource of their activity
that brings into a question the stability of a social enterprise. The idea of the
problem solution of the local scale was taken as a basis of the activity of a
social enterprise in Russia. In other words, the global idea and the
opportunity of replicability and scalability is absent that brings into a
question of effectiveness of the enterprise activity in long- term perspective.
The main branch of activity of a social enterprise is the job placement of
disadvantaged social groups, in particular of disable people.
Advantages of social entrepreneurship imply the opportunity of the
use of various business- models, the use of uncommitted resources in
economy, the creation of market environment there, where it hasn’t been
absent yet, combination of harmonizing the interests of a society, business
and the state, orientation on local conditions.
Social entrepreneurship can be interested to companies, which seek
to social responsibility of business. For example, companies can assist to
the development of social entrepreneurship through the improvement of
conditions of depressive territories.
Any improvement will benefit both the local community as well the
company. For example, it will stop the outflow of young people and will
help to solve infrastructure problems.
It is evident, that social entrepreneurship is one of the social
programs which is necessary to solve in our society. Entrepreneurs of
Russia support this direction because they are oriented themselves on the
effective sustainable development as their own business, as and the country
in a whole. The great intellectual human resource is hidden in social
entrepreneurship. This can significantly influence on more stable life, the
solution of social problems, future population of Russia. Besides it, it is a
good field for consolidation of resources, business of different levels,
society and power. It is very important that it will not only the decision of
pressing social problems but effective collaboration about reformation and
improvement of the society prosperity.
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Social entrepreneurship is the definite stage of relations
development between a society and business. These are enterprises, which
differ by three peculiarities: their activity promotes to the decision of a
social problem, they are innovative (present the new service, the product or
the business model) or economically sustainable that is provided by sales of
goods and services.
Such form of CSR as “dobrovolnichestvo” evolves in Russia. This
is the system of labour relations, built on the mechanism of moral
encouragement and other socially useful objectives. It is necessary to
approach individually to engaging of volunteers taking into accounts
motivation and personal characteristic of employees. Among them can be:
altruists– are employees, experiencing the need for the restoration of “the
vital justice,” sympathizing to problems of other people and wishing to
provide all possible assistance.
Egocentics– are the employees, wishing to be realized and to use
their potential, seeking to receiving of social approval or looking for the
opportunity to help to other people. The realization of this desire allows to
a volunteer to fill his life by additional meaning, to help to be realized and
to get the deep moral satisfaction.
Social entrepreneurship is just starting its way into Russia.
However, Russian society has a positive attitude to this concept. It is
gratifying to emphasize that the majority of Russians recognize the need for
the existence of organizations which put the main objective for themselves
not to maximize profit, and the solution or mitigation of social problems.
The present examples of social entrepreneurship allow to speak
about future perspectives of this direction in Russia. There are about 6,8
thousand enterprises, having the social focus.
Most of them don’t identify themselves as the social enterprises,
largely due to the lack of information on this subject.
The separate and exceptionally important problem of social
entrepreneurship is the absence of adequate regulatory affairs. The
legislative base hasn’t been established yet, which would regulate the
activities of social entrepreneurs. They have to work on a general basis that
reduces their opportunity in solving social problems definitely [25].
As a rule, Russian companies perceive the social activity as the
source of informational reasons for increase of their own image and
formation of public relations in activity regions. In some case, the choose of
priorities for identifying spheres of social activity depends on the attention
of community and on the personal preferences of a company. Not all
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Russian companies have come to understanding of necessity of
informational openness. In Russian companies the activity in the CSR
sphere has not the high status in many cases and realizes as secondary
activity on the level of department managers and directors.
In spite of enumerated lacks of an organization of social activity of
domestic companies, important changes have recently occurred and several
positive tendencies were noticed in this sphere. In particular, coming to the
Russian market CM, which is one of the leaders in the sphere of CSR, and
can lead to that the most progressive branch will be the oil branch from the
view of CSR. The image of a socially responsible company becomes more
popular.
The number of companies increases, which understand that CSR is
not only an image, but and investments which will be recompensed in long
term outlook or in the future, but not in a plan. It is very important that the
state has perceived the necessity of the support and stimulation of socially
responsible enterprises.
It is necessary to notice that the formal characteristic of CSR is
voluntariness, in other words entrepreneurs, understanding the
responsibility in front of internal and external environment of their
enterprise, share their profit with society voluntarily. Corporative social
responsibility can be classified on the base of different criterions. So,
internal (responsibility of an organization in the sphere of socially labour
relations) and external CSR (responsibility before the population in a whole
and different groups of community: consumers, investors, stockholders,
bodies of power, social organizations, media) is marked out depending on
the target group.
In order to build the logic scheme of the socially responsible
behavior of any organization, it is necessary that CSR was not
unidirectional and found the balance and respected the interests of internal
and external groups. In accordance with the criterion of length, CSR is
divided on short-term (to 6 months) and long-term activity (from 6 months).
Long-term programs are directed on the decision of the important
public problems, chosen by an organization as priorities. These programs,
as a rule, are in operation during of all existence of an organization and give
the large economic effect in future, promote to strengthening of financial
stability and increasing of competitive capacity of an enterprise, create the
positive business reputation for it.
The short-term programs of social responsibility are presented as
the single entry activity of an organization. The shortness reason of
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strategies orientation of organizations development is deficiency of funds,
which doesn’t allow to entrepreneurs to invest in long-term projects. Social
investment has the additional expenses in the short-term period, and
accordingly, some loss of the competitive edge can be observed. Only in the
long-term perspective social investment can benefit, because the more
attractive image of an enterprise is formed gradually at suppliers and the
local community.
In such a manner, only the most successful enterprises can allow
long-term socially responsible behavior first of all which have necessary
resources and serious competitive positions for it. The long-term socially
responsible behavior must be stimulated both by the state and by the civil
society for distribution it in the business environment [26].
In accordance with the model of M. Poparter and M. Kremer [27],
corporate social responsibility can be responsive and strategic. The
responsive CSR is directed on palatalization of having problems and
negative consequences of the company activity. The strategic CSR provides
building of the idea of social responsibility in the strategy of a company and
orientation on creation of long - term competitive positions.
The development of strategic СSR the most corresponds to the
passage from logic of “social expenses” to logic of “social investment”. In
the opinion of researchers, formation of corporate social responsibility in
Russia is on the primary stage in the modern period. We can meet only
separate attempts of realization CSR in the activity of domestic
organizations, such as social benefits for employees, separate examples of
charity.
The biggest companies invest in social advertisement (for example,
create rollers about the rescue of the environment and rare animals).
However, a question about introduction of new standards of corporate
responsibility with the orientation on the west model was raised in the
connection with the exit of Russia on the global stage, strengthening paces
of globalization, wish of domestic enterprises to get the foreign investment.
Besides the positive tendencies of corporate social responsibilities
in Russia, there are several objective difficulties.
1. Only big national - wide companies and branches and child
business units of international companies have the material opportunity to
realize the policy of social responsibility. Small and Medium business for
various reasons don’t have the opportunity to contribute a lot of money for
the good of society. At the same time, the concept of corporate social
responsibility of such companies is developed actively and is not limited by
the singular charitable actions [28].
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2. Geographic position of the country and the ever-changing
economical and politic situation in the country relates to negative factors.
The great territory, low density of population, capital concentration in the
big cities decreases the readiness to be a socially responsible.
3. The social passivity of citizens which is observed in all spheres
of the public life can be also related to barriers on the way of CSR in
Russia. Few existing structures of the civil society are created by the
initiative of government institution, which are aimed to control them [29].
The public members demonstrate a little initiative. Employees criticize their
employers very actively for unwillingness to decide the actual social
problems, however, they are not ready to self activity themselves.
However, in the modern period of the society development, the
activity of Russian entrepreneurs is directed on elaboration of clear and
effective mutual relationship with government institutions and with the civil
society through the active implementation of the CSR concept in the
practice of the activity of their enterprises.
So, the Volgograd enterprise LLC “Svetozar”, which is engaged to
manufacturing and the sales of photodiode energy conservative sources of
light for the brand “OgonOK” relates to medium business, however, it
practices various forms of CSR very widely. The next programs are referred
to internal programs:
health programs of the staff;
Social support of certain categories of employees;
staff training by the company;
development of the public catering system;
health resort treatment and staff rehabilitation.
External forms of CSR of an enterprise are the next:
environment protection (not only at the expense of abidance
of environmental safety measures of production but also
due to regular enforcement of environmental protection
measures);
the availability of sports club (provides services to citizens
at moderate price);
charity (renovations of schools in the city at the expense of
entrepreneurs).
Other examples of such activities include:
“The school of farmers”. This project is directed on the training of
farmers from leavers of children’s homes of Perm. The participation in “the
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school of farmers” gives the opportunity to leavers of children’s homes to
earn money for living conditions, pursue a profession, feel yourself socially
protected. Involvement in such project helps to form positive values,
involves orphans in public relations. “The school of farmers” attracts young
people to the work in a village and brings up the young farmers who are
capable to transact the profitable business.
The project “The Armour suit” (LLC “New rehabilitation
technologies “The Armour suit”). “The Armour suit” presents the
orthopedic system, which allows to a person with spinal cord trauma to
stand, to sit, to move without physical assistance. The project “The Armour
suit” became the first social enterprises, which the Foundation “Our future”
has supported. The production of orthopedic systems was organized on the
base of medical centre of the Russian state medical university.
The workshop “cheerful felt” (SE “Women’s organization of the
social support “Woman, Person, Society”). The aim of this project is the
creation of the talent boutique in the production of designer’s toyssouvenirs and jewelry from felt in Ribinsk. Poor mothers with many
children, who have not the opportunity to work at a full- time job and they
need in a home-based job, take part in this project.
Obviously that Russian entrepreneurs are conscious of the need for
social activity, and many of them are willing to invest in this additional
funding. Currently, CSR is considered by Russian entrepreneurs as one of
the most important areas that are directly associated with a single business
strategy.
Modern entrepreneurs are beginning to develop the social direction
of business dealing. One of the latest trends of CSR development in Russia
is a social entrepreneurship.
Social entrepreneurship is just starting its way into Russia,
however, Russian society is tuned positively to this concept. It is gratifying
to emphasize that the majority of Russian people recognize the need for the
existence of organizations which put the main objective for themselves is
not to maximize earnings, and the solution or mitigation of social problems.
The special and vitally important problem of social
entrepreneurship is the absence of adequate regulatory support. The
regulatory environment, regulating the activities of social entrepreneurs,
hasn’t been created yet. They have to work on general principles that reduce
their opportunities in the decision of social tasks in a way.
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CORPORATE SOCIAL RESPONSIBILITY IN THE
MANAGEMENT SYSTEM OF THE ORGANIZATION
Currently, the corporate social responsibility of business is included
into the area of a strategic goal-setting of many modern organizations.
Russian companies are increasing the degree of integration in the economic
processes in the context of globalization, which causes them to move
towards increasing the transparency of corporate transparency, social
responsibility and business performance. At the same time the concept of
corporate social responsibility makes it possible for the modern
organization to declare oneself widely in society, promoting its values and
positioning itself as a reliable employer and progressive company. At the
moment enterprises are implementing the concept of corporate social
responsibility for different reasons and it is preceded by a variety of
motives.
One is defined by A. B. Carroll [20] where she explains corporate
social responsibility as a pyramid, including administrative responsibility,
oriented to comply with regulatory requirements, to respect the ethics of the
society and be a good citizen.
Other researchers suggest that, if the company uses the concept of
corporate social responsibility in a more strategic sense, it can create
competitive advantage [23].
In general, It should be noted that arguments in favor of
implementing socially responsible behavior can be divided into two groups
(fig. 11).
First, the entrepreneurs expect to receive certain benefits or
advantages that form the active motivation, i.e. promote certain changes in
the activities of enterprises. However, the importance played by the
arguments, saying that the social measures are a key element in riskmanagement. These arguments form the reactive motivations, i.e. social
responsible behavior is considered as means of preserving the reached
stability [1].
The progressive business community understands that social
responsibility will eventually become mandatory. This is just an
intermediate state, and with the growth of business activity in the social
direction of corporate social responsibility become an essential condition
for the functioning of the business. To create a significant competitive
advantage through this concept in the long term, it is necessary to begin
already today. The strategy of social activities should be concentrated in
areas with the most urgent problems, and where activity will be most
effective.
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Thus, business and society are increasingly seen as elements of a
single system, beyond which their effective existence is impossible. Social
responsibility is more closely associated with corporate strategy, and the
success of social initiatives is a prerequisite for future economic advances.
The competition to the world stage, and enterprises which concentrate only
on internal activities, will not be able to withstand the increased
competition. Success can be achieved only those companies that
transformed into organizational structures capable of acting responsibly
towards society and the environment [13].
In connection with the foregoing, it can be argued that the
requirement of socially responsible activities of the organization – a fact
that cannot be neglected. The importance of this factor increases
proportionally to the scale of the corporation and the number of markets in
which the organization is engaged in business.
At the same time It should be noted that increase in the number of
socially responsible companies contribute not only external challenges:
requirements of social and environmental issues from stakeholders, – but
also internal incentives, namely the introduction of a positive relationship
between corporate social responsibility and financial performance of the
company. That, in turn, proved by research M. Orlickiy, F. Schmidt, S.
Raines, confirmed the presence of a positive correlation of socially
responsible activities and financial performance of the organization2 [3].
In connection with the foregoing it should be noted that the
economic benefits this concept arise due to the increased activity of the
company in environmental and social areas and occur because of this
synergy and is manifest in such areas as finance, marketing, sales,
reputation management and risk management. In addition, in view of
actively growing trend of socially responsible investment it is possible to
say that following of the concept of corporate social responsibility
significantly expands opportunities for attraction of investment resources,
and also decrease in their cost. Ultimately, this results in increasing the
sustainability of business and, therefore, improvement of indicators of
activities of the company in a long-term perspective.
2
This study included a meta-analysis of 52 studies (total sample – 33 878
observations, collected over 30 years). Given the period covered in the work, and
the representativeness of the sample, and the fact that a meta-analysis of studies
received independent from each other by the authors, these findings can be
considered objective.
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Review of literature. Economic and managerial aspects of this
concept in the modern interpretation was put on the agenda relatively
recently – in the beginning of the last century. Prior to this time period
individual components of corporate social responsibility (for example,
charity) dealt mostly with philosophical and sociological points of view.
Currently, continue active discussions about its essence in scientific and
business circles. In this regard, the theme of corporate social responsibility
the past decade occupies one of leading places in the publications of such
leading international journals as «The Journal of Business Ethics»,
«Business & Society», «Business Ethics: A European Review», etc. In the
leading domestic scientific journals, such as «Voprosy Ekonomiki»,
«Russian Management Journal» and others regularly publish articles on this
issue. It is also possible to state that there is a constant growth of the
publications devoted to research of corporate social responsibility, its role
in micro-, macroeconomic, public administration and management.
Modern research is preceded by fundamental work on the social
responsibility of business the second half of the 20th century by such
authors as G. Bowen, K. Davis, M. Friedman, A. Carroll and E. Freeman,
who in turn rely on the classical ideas by J. Locke, A. Smith, M. Weber, T.
Parsons and etc. Today, the study this concept is highlighted in
interdisciplinary research direction, in which foreign authors consider such
issues as sustainable development (J. Elkington, N. Finch, etc.), business
ethics (Crane A., Matten D., etc.), corporate governance (F. Kotler, J.K..
Roui, etc.), interaction with stakeholders (M.S. Branco, S. Saks, etc.), the
influence of international institutions and standards (G. Kell, B. Slob, etc.),
regulatory issues (by L. Lewin, etc.), etc.
To the study of corporate social responsibility is growing interest in
Russia. Thus, the domestic authors justified the relevance this concept in
the Russian context and its role in the development of modern economy and
society, adopted the international concept of corporate social responsibility,
developed best practices, etc. Among researchers and experts who have
made a significant intellectual contribution to the study of concept, it should
be noted A.N. Shokhin, S.V. Turkina, S.E. Litovchenko, F.T. Prokopov,
etc.
However, analysis of the literature shows that much attention is
paid to theoretical issues, such as approaches and models, as well as a
description of aggregate benefits from following the principles of corporate
social responsibility. Often, however, these topics were submitted quite
fragmented and with a bias in economic theory (and based on the
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neoclassical school), not managerial paradigm. In this article the concept of
corporate social responsibility considered from the point of view of the
theory of organization management.
Despite the fact that the term «corporate social responsibility» is
widely used in the framework of this article it is important to clarify its
meaning. First, it should be noted that subject of corporate social
responsibility is the commercial organization, understood as complete
system of industrial relations and functioning for the sake of achievement of
economic goals, and at the same time being part of the environment
including a set of components on which its existence depends.
First of all, it is such groups as consumers, suppliers, media and
public pressure groups, employees, shareholders and other interested
persons who can influence the organization and experience its effect on
themselves (stakeholders). Given that the concept of «stakeholders», in
accordance with the approach of R. Freeman and D. Reed, can be used in
the broad and narrow sense, we specify that here we use the term in a broad
sense, referring to any identifiable groups or individuals who can affect the
achievement of organization objectives or which may affect the
achievement of the organization goals. It means that in addition to the direct
purposes of care efficient use of resources, the organization appears a goals
of balancing its interests with interests of these groups.
Secondly, the concept «social» is considered in the broadest sense
of this word and means an orientation on the solution of socially significant
problems, including ecological, legal (for example, connected with
streamlining of the labor legislation), etc. At last, availability of the term
«responsibility» means that the behavior of the company will entail certain
results, including material nature which positive or negatively will be
reflected in indicators of profitability of business [4].
Thus, corporate social responsibility in the management system of
the organization is represented by a set of expectations, rules and
requirements, in accordance with which the company is liable to the society
in which operates, i.e. in addition to the effectiveness, employment, profit
and respect for the law, it must direct part of its resources and efforts on the
development of society. From this it follows that corporate social liability it
is possible to consider as special social and economic institute which
regulates relations of the organization with concerned parties of external
and internal environment.
At the same time, considering not only economic, but also
ecological and social aspect of interaction of the organization and its
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