PRINCIPLES AND MECHANISMS FOR THE FORMATION OF SOCIAL RESPONSIBILITY OF BUSINESS

Abstract

Corporate social responsibility (CSR), or business social responsibility, is the enterprise's commitment to responsible practices regarding its products and services, employees, consumers, and partners. The social stance of a company, which emphasizes harmonious coexistence and dialogue with society to address pressing social issues, has only fully developed in the last few decades. Social responsibility should be a discretionary requirement for modern businesses. Unfortunately, in the domestic business environment, CSR does not yet hold a prominent place. This is characterized by a high level of shadow operations. However, in recent years, certain evolutionary processes have been observed in the Ukrainian business environment, which are associated with the general approaches to implementing CSR. CSR has become more systematic. The implementation of CSR can enhance profitability, improve a company's image, reduce costs, and boost employee morale. The promotion of CSR can be facilitated by the use of new technologies, the creation of new types of products, and innovative activities. Consequently, a company’s profits are generated through cost reduction, the formation of new markets for goods or services. This is the path chosen by developed companies, resulting in a higher level of CSR. However, this approach is quite risky for Ukrainian enterprises and requires long-term financial investments. A set of specific CSR principles can be proposed, the implementation of which should align with a system of general principles: transparency, systematicity, relevance, and partnership. A company has the right to call itself socially responsible when it operates according to these principles.