SOCIAL RESPONSIBILITY AND THE STOCK MARKET

Abstract

The article is devoted to topical issues of the impact of social responsibility and the stock market. The article analyses the studies of a number of foreign scholars, which describe how certain components of social responsibility affect the valuation of companies and their income. In particular, entities with published reports are more stable, recognisable, and their value is an order of magnitude higher than others in the relevant field. In addition, the emphasis is placed on the fact that investors, when making decisions, are also guided by the published information on the social responsibility of potential companies seeking to attract investment. Today, the publication of social responsibility reports is mandatory for most stock market participants. The article proves that companies should disclose such reports even if it is not mandatory under the laws of a particular country. Today, investors' priorities in corporate social responsibility include effective projects on sustainable development, inclusion, education, and environmental protection, not just charity and direct donations. An investor wants to see a dynamic model of the company's development in the area of social responsibility and the effectiveness of actions in this area. If we analyse the effect of the submitted social responsibility reports, it is best felt in the long term. If we look at the specifics of social responsibility reporting in the national context, we see that each region (country) is distinguished by its established traditions and institutional approach. This affects the way such reports are perceived, what is published in them, and identifies certain limitations that should guide investors in making investment decisions. The analysed foreign studies are quite valuable because they cover a wide sample of data both in terms of time and the number of companies whose reports were analysed. This makes it possible to form a vision of further development of corporate social responsibility reporting, the role of the state in its regulation and presentation, and public perception of the information presented in it.