RESPONSIBLE BUSINESS CONDUCT AS A KEY FACTOR IN THE SUSTAINABLE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES: THE CHALLENGES OF DIGITAL TRANSFORMATION AND EUROPEAN INTEGRATION
Abstract
The article explores the theoretical and applied principles of «Responsible Business Conduct» as a key determinant of the sustainable development of SMEs in the context of digital transformation and European integration of Ukraine. It is substantiated that modern transformation processes are accompanied by increasing requirements for transparency, ethics and business accountability, which actualizes the need to integrate ESG-principles into the strategic activities of enterprises. The essence of «Responsible Business Conduct», its components and role in forming the competitive advantages of SMEs are determined. The impact of digitalization on the development of entrepreneurship is analyzed, in particular in the context of the implementation of digital management technologies, automation of business processes and the use of data analytics. It is proven that digital transformation acts as a tool for increasing the efficiency and transparency of SMEs, while at the same time creating new challenges related to resource constraints and digital literacy. Particular attention is paid to the analysis of the challenges of European integration for domestic business, including the need to adapt to EU standards, increased competition in domestic and foreign markets, as well as strengthening regulatory requirements for non-financial reporting and compliance with the principles of «Due Diligence». It was established that SMEs are characterized by specific limitations, in particular, a lack of financial, human and technological resources, which complicates the implementation of responsible practices. A separate emphasis is placed on the risks of imitation of social responsibility, which can lead to a loss of stakeholder trust and a decrease in the reputational capital of enterprises. А model of the impact of responsible business behavior on the sustainable development of SMEs was developed, which includes the external environment, mechanisms for implementing responsible business behavior, expected results and feedback. A systematization of the challenges of digital transformation and European integration with appropriate response tools based on the principles of responsible business conduct is proposed. It is substantiated that the implementation of transparent non-financial reporting, ESG-audit, digital solutions and the development of an organizational culture of responsibility contribute to increasing the competitiveness, adaptability and sustainability of enterprises. The results obtained can be used to form an effective strategy for the development of SMEs in the conditions of modern economic transformations.
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