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

User Rating:  / 0
PoorBest 

Authors:

V.Bazylevych, Corr. Member of the NAS of Ukraine, Dr. Sc. (Econ.), Prof., orcid.org/0000-0001-8030-8651, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.

N.Grazhevska, Dr. Sc. (Econ.), Prof., orcid.org/0000-0003-2549-8055, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.

A.Mostepaniuk, PhD, Assoc. Prof., orcid.org/0000-0001-5327-2534, Girne American University, Kyrenia, Turkish Republic of Northern Cyprus, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

V.Virchenko, Cand. Sc. (Econ.), Assoc. Prof., orcid.org/0000-0002-9085-6659, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract:

Purpose. Justification of a hypothesis about positive externality of involvement of companies in projects of corporate 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 post-Soviet 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 interrelation between development of corporate social responsibility and level of accumulation of social capital in developed 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 development of these processes in post-Soviet 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 concerning forms of the state support of corporate social responsibility in post-Soviet 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 post-Soviet states are defined.

Practical value. The authors proved that effective reforms in post-Soviet 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 transitive economies are proved, including improvement of legal regulations, providing fiscal privileges or direct state support to socially responsible business, increasing awareness and exactingness of citizens and public organizations to “openness” and “transparency” of business, protection of the rights of workers and consumers, fight against corruption and discrimination at the level of private companies.

References.

1. Pilipenko, G. M., 2013. The influence of culture on the relationship between state and market coordination in Ukraine. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytety, 3, pp. 118‒125.

2. Geets, V. M., 2010. Trust as an Element of Social Capital in the Economic Development of Ukraine. Economic Theory [online], 3. Available at: <http://etet.org.ua/?page_id=189&year=2010&issueno=3&begin_page=7&mode= get_art&flang=uk> [Accessed 22 November 2017].

3. Porter, M. E. and Kramer, M. R., 2011. Creating Shared Value. Harvard Business Review [online], 89(1–2). Available at: <http://hbr.org/2011/01/the-big-idea-creating-shared-value/ar/pr> [Accessed 15 December 2017].

4. Fukuyama, F., 2002. Social Capital and Development: The Coming Agenda. SAIS Review [pdf], 22. Available at: <http://faculty.washington.edu/ matsueda/courses/590/Readings/Fukuyama%202002%20Social%20Cap%20Development.pdf> [Accessed 2 September 2017].

5. Dasgupta, P., 2003. Social Capital and Economic Performance: Analytics. Foundations of Social Capital. Cheltenham UK: Edward Elgar [pdf]. Available at: <http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.200.474& rep=rep1&type=pdf> [Accessed 11 September 2017].

6. Edelman, 2018. Trust Barometer. Global Report. [pdf] Available at: <https://www.edelman.com/sites/g/ files/aatuss191/files/2018-10/2018_Edelman_Trust_Barometer_Global_Report_FEB.pdf> [Accessed 5 November 2018].

7. Stiglitz, J. and Ellerman, D., 2000. New Bridges Across the Chasm: Macro- and Micro-Strategies for Russia and other Transitional Economies. International Review of Economics and Business [pdf], 3(1), рр. 41‒72. Available at: <https://www.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/2000_New_Bridges.pdf> [Accessed 03 November 2017].

8. Long, J., 2008. From Cocoa to CSR: Finding sustainability in a cup of hot chocolate. Thunderbird International Business Review, 50, pp. 315‒320. DOI: 10.1002/tie.20215.

9. Visser, W., 2008. Corporate Social Responsibility in Developing Countries. In A. Crane, A. McWilliams, D. Matten, J. Moon and D. Siegel, eds., 2008. The Oxford Handbook of Corporate Social Responsibility. Oxford: Oxford University Press [online], pp. 473‒479. Available at: <http://www.oxfordhandbooks.com/view/ 10.1093/oxfordhb/9780199211593.001.0001/oxfordhb-9780199211593-e-021> [Accessed 2 November 2017].

10. Azmat, F. and Ha, H., 2013. Corporate Social Responsibility, Customer Trust, and Loyalty – Perspectives from a Developing Country. Thunderbird International Business Review, 55(3), pp. 253‒270. DOI: 10.1002/tie.21542.

11. Glaeser, E., Laibson, D. and Sacerdote, B., 2000. The Economic Approach to Social Capital. NBER Working Papers 7728, National Bureau of Economic Research, Inc [pdf]. Available at: <ftp://ftp.repec.org/RePEc/fth/ harver/hier1916.pdf> [Accessed 11 August 2017].

12. Schwab, K., 2016. The global competitiveness report 2016‒2017. World economic forum [pdf]. Available at: <http://www3.weforum.org/docs/GCR2016-2017/ 05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf> [Accessed 05 August 2018].

13. Jahan, S., 2016. Human development report 2016. United Nations Development Programme [pdf]. Available at: <http://hdr.undp.org/sites/default/files/ 2016_human_development_report.pdf> [Accessed 3 November 2017].

14. Legatum Institute, 2017. Prosperity index 2017 [pdf]. Available at: <http://prosperitysite.s3-accelerate.amazonaws.com/3515/1187/1128/Legatum_Prosperity_Index_2017.pdf> [Accessed 24 January 2018].

15. United Nations Global Compact, 2018. Our participants [online]. Available at: <https://www.unglobalcompact.org/what-is-gc/participants> [Accessed 17 November 2018].

16. European Parliament, 2014. Directive 2014/95/EU of the European Parliament and of the Council. Official Journal of the European Union, November 15 [online]. Available at: <http://eur-lex.europa.eu/eli/dir/2014/ 95/oj> [Accessed 19 September 2017].

17. Transparency International, 2018. Corruption Perceptions Index 2017 [online]. Available at: <https://www.transparency.org/news/feature/corruption_perceptions_index_2017> [Accessed 20 January 2018].

18. The World Bank, 2018. Worldwide Governance Indicators. DataBank [online]. Available at: <http://databank.worldbank.org/data/reports.aspx?source=world­wide-governance-indicators> [Accessed 25 February 2018].

 повний текст / full article



Visitors

3612707
Today
This Month
All days
126
34778
3612707

Guest Book

If you have questions, comments or suggestions, you can write them in our "Guest Book"

Registration data

ISSN (print) 2071-2227,
ISSN (online) 2223-2362.
Journal was registered by Ministry of Justice of Ukraine.
Registration number КВ No.17742-6592PR dated April 27, 2011.

Contacts

D.Yavornytskyi ave.,19, pavilion 3, room 24-а, Dnipro, 49005
Tel.: +38 (056) 746 32 79.
e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
You are here: Home Archive by issue 2019 Contens №1 2019 Economy and Management Accumulation of social capital as a positive externality of corporate social responsibility development in transition economies