Corporate responsibility of business in the context of modernization of socio-economic institutions

This article substantiates a promising approach to the concept of development, which allows us to form a clear understanding of those factors that have a long-term impact on the dynamics of socio-economic development and can help explain various patterns of development, such as the accumulation of factors of production, the effectiveness of their use, technological changes, external political and economic influences, historical factors, as well as institutional structures such as the institute of land ownership, institutes of law and property, and public administration, financial institutions, especially the stock market. The author notes that sociological science has its own approach to the problem of development, from the point of view of which development should not be considered only from the point of view of economics, but should pay attention to such processes as changes in family structures, relationships and mentality, cultural, demographic, political changes, the transformation of rural communities and the process of urbanization. At the end of the twentieth century, the discussion of development was implicitly based on a number of ideals or values of modernization, while the concept of development itself embodies these values, since it inevitably implies a change in society as a whole in the direction of modernization ideals, including rationality, development planning, improving living standards, reducing social and economic inequality, more effective social institutions and relationships, etc. And despite the fact that at the end of the 20th century the term “modernization” became less applicable, the list of modernization ideals seems to be very relevant. The debate about the role and responsibility of business in society related to modernization gave rise to various theories, an important place among which was occupied by the theory of M. Friedman, analyzed in detail in the article. The author turns to a theory that deals with the transition to a new capitalist model, called “stakeholder capitalism”, which was formulated in 1984 by Professor Edward Freeman in his book Strategic Management: the Concept of Stakeholders. According to his definition, the company’s stakeholders include “any individuals, groups or organizations that significantly influence the decisions made by the company and/or are influenced by these decisions”. According to the author, the transition to a model of stakeholder capitalism, despite the fact that it provides a number of advantages, generates a certain social effect that slows down the development of the national economy. The article also analyzes in detail the models of “conscious capitalism” and the “model of corporate social responsibility”.

Corporate social responsibility is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can realize the impact they have on all aspects of society, including economic, social, and environmental. This model is valuable for both society and business. Applied from a corporate point of view is the implementation of the ESG strategy (Environment, Social, Management), which is a subset of the Sustainable Development Goals and defines specific parameters for their achievement by an individual company across the entire spectrum of environmental, social and management issues.

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