Agrarian Economy 2022 Т. 15 № 1-2: 35-45

Organizational and economic mechanism of formation of the social responsibility of agrarian enterprises

Yatsiv I., Doctor of Economic Sciences, Professor
ORCID ID: 0000-0002-2370-6351
Lviv National Environmental University
Kushka P., PhD student
ORCID ID: 0000-0003-4190-8747
Lviv National Environmental University

https://doi.org/10.31734/agrarecon2022.01-02.035

ANNOTATION

The article considers social responsibility of an enterprise as a set of its relations with stakeholders. Within the relationship, the company voluntarily takes responsibilities to consider interests of the entities, which are influenced by the enterprise’s activities. The work gives characteristics of the features of development of the social responsibility of agrarian enterprises.

Ensuring development of the social responsibility of enterprises necessitates formation of the effective management tools, i.e. an organizational and economic mechanism for establishment of the appropriate relationship. The mechanism is considered as a set of organizational forms of implementation of the relationship of social responsibility, principles, methods, and tools used by the enterprise to achieve its goals. Those tools are used by agrarian enterprises within the framework of social responsibility. Those tools are grouped by the types of the agrarian enterprise’s relations – as an employer, supplier (seller) of products, business partner, consumer of natural resources, member of a business community. It is shown what tasks can be solved by the company by using those tools. Each agrarian enterprise can find some niche in the system of social responsibility and identify the tools used to meet its economic potential, size of land use, specialization, etc.

The research describes basic principles of formation of enterprises’ social responsibility – voluntariness, strict observance of legal norms, ethics, transparency and openness, complexity, efficiency. It is shown that the socio and economic mechanism of the social responsibility formation aims at achieving certain goals set by the company. Identification of the goals is motivated both by the moral principles of the enterprise’s managers (owners) and the ability to achieve certain competitive advantages. It is noted that the organizational and economic mechanism of the social responsibility formation should be strengthened by instruments of the state regulatory policy.

KEY WORDS

agrarian enterprises, social responsibility, organizational and economic mechanism, charity, territorial communities, state regulation

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