Academic journal article European Research Studies

The Institutionalization of the Concept of Corporate Social Responsibility: Opportunities and Prospects

Academic journal article European Research Studies

The Institutionalization of the Concept of Corporate Social Responsibility: Opportunities and Prospects

Article excerpt

1. Introduction

1.1 Introduction to the Problem

In recent years, the attention to the studies of such economic phenomenon as corporate social responsibility has increased. The problems of socially responsible business behavior and its role in the social and economic development, capabilities and efficiency of interaction with the local community are widely discussed. Formulations of principles of the corporate social responsibility internal standards have become an indispensable attribute of Internet portals, websites of large companies. Governments, social and international organizations of the most developed countries of the world joined the promotion of the best practices in CSR. For example, in the UK the post of adviser on CSR (Minister for corporate social responsibility) is established. One can also see how the number of organizations is rapidly growing, which have declared their goal the introduction of ethical principles and principles of social responsibility into business practices. Among them are: the European Organization of Business Ethics, the Council for Sustainable Business Development, Ethical Corporation, the World Business Academy, the Institute of Business Ethics in the UK, etc. This positive trend is also reflected in the Russian business practice. Thus, we believe that the studied problem has multidimensional nature.

Increased interest to the problems of CSR, as we see, is dictated by several factors: firstly, the failure of our government to have their own resources to make full and effective social policy; secondly, the entry of government and business into a fundamentally new phase of development--partnership and cooperation, and finally, thirdly, the growing influence of globalization process. It is obvious to believe that globalization is adapting the Russian companies to understand the need for complying with the international standards of corporate behavior and ethical standards of modern business. The growing ethical requirements and motives are the core ideology of the so-called CSR. Improving business ethics, promotion of the expansion of CSR practices neutralize the negative attitude of a certain range of stakeholders (society, investors, consumers) to the activities of modern business structures. Working according to the rules of civilized business (thus maintaining a positive image) modern companies have to determine strategic goals, which meet modern conditions, to build standards and to implement a strategy of socially responsible behavior. It has become a common rule, a kind of normal business relations. Socially responsible behavior is one of the most important arguments in the competition in the capital market. The aim of this study is to prove the increasing role of institutional foundations of the formation and development of CSR in Russia and the development of tools to facilitate the institutionalization of the concept of socially responsible behavior of national business.

1.2 Importance of the Problem

The current condition of the Russian Federation demands active rethinking of views and interests in the process of formation and development of the business in terms of its social responsibility. The solution to this problem is possible in the context of institutional changes and economic activity of socially responsible companies.

We should note that up to now, CSR has not yet become a subject of comprehensive study by Russian researchers and specialists. Until now, such aspects of the problem as an opportunity and a need to institutionalize the concept of corporate social responsibility (CSR), justification of the specific actions and measures necessary for the formation and development of CSR institution in the modern Russia are not enough developed. The causes and factors contributing and constraining the development of institutional reforms in CSR in Russia are not fully and comprehensively studied.

In this regard, in this article we have attempted to identify institutional capacities and conditions of formation and development of CSR in Russia; the growing role of the institutionalization process is proven, which allows achieving positive results in social and economic activities of the modern business entities and ensuring efficiency of economic order in their work. …

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