THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON BUSINESS RESULTS

Abstract

Modern enterprises are faced with a complex of economic, social and environmental problems, the solution of which is in the area of corporate social responsibility. The consequences of enterprise socially responsible behavior do not contradict the criteria of economic feasibility and lead to improved activities of economic entities.This paper proposes a methodical approach to the study of corporate social responsibility impact on business results, which is based on the formation of the matrix influence on two characteristics which are the duration and extent of impact on stakeholders.In terms of scale, the matrix assumes allocation of internal and external impact of corporate social responsibility practice on business results, based on similar characteristics of stakeholder groups, from the viewpoint of duration long-term and short-term impact are allocated. It was established that in the short term enterprise social and environmental initiative leads to the funds outflow caused by necessity of cost financing for the environment, improving product quality, the development of local community. Positive effects in the short term are caused by the growth of labor productivity, sales, energy efficiency and pollution-free production, product quality. The analysis showed that activities in the area of corporate social responsibility bring the greatest benefits on business entities’ performance in the long term. Effective implementation of corporate social practices should lead to the achievement of ultimate goals which are the establishment of long-term competitive advantage and enterprise sustainable development.