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Huseynli Javid, Ph.D., candidate, Charles University, SOCAR E-mail: huseynoff@live.com
CORPORATE SOCIAL RESPONSIBILITY (CSR): GLOBAL CAPABILITY
Abstract: The paper reviews the capabilities ofcompanies around the world regarding to Corporate Social Responsibility and its relation to sustainable development. In the first section of the text key findings are being presented regarding the recent development in the field of CSR and sustainability by sectors and the countries. Additionally, the paper mentions that GRI principles, UN Global Compact standards are being mandatory guideline for companies to adopt CSR and increase the awareness on sustainability. Lastly, the paper discusses the modern developments of CSR and lists the areas that can be identified within the national strategy for the development of CSR companies in globally.
Keywords: CSR, sustainable development, strategy, principles, relations, SDG.
Introduction cies, and actively develop them at the moment. In 2017
With the development of the world economy, an in- KPMG report study involved 4900 companies from 49 creasing number of companies are adopting in corporate countries and 16 different industries (N100 Group and
strategy vector of socially responsible business. It is this vector of development becomes a fundamental element in the process of strengthening the company's competitive position on the world stage. This practice was embodied in the activities of global companies in recent years, the management of which is aimed at introducing a socially responsible component in various activities in order to strengthen its competitive advantages in both domestic and international markets.
Corporate social responsibility is a complex of measures aimed at achieving sustainable development of both the company and all parties co-operating with it in the course of its activities. Over the past few decades, the business has done a significant leap in the awareness of their own responsibilities with regard to environmental conservation, solving social and economic problems, improve the quality of life of local communities, human rights, anti-corruption, and other problems, the importance of which is recognized by society. As a result, corporate social responsibility is becoming a new business philosophy, according to which the companies are guided in their work not only for profit, but also to achieve the public good and maintaining ecological stability.
Key findings:
By the beginning of the XXI century, most major Western companies have formed their own CSR poli-
G250) [1]. It is important to mention that since 1993 the number of reporters have been in upward trend. The results of the study confirm the fact that large companies are increasingly reporting on sustainable development. the highest rates are traditionally show European companies for many years engaged in the preparation of sustainability reports. At the same time companies from the countries of Asia-Pacific region, North and South America, the Middle East and Africa are catching up steadily [2]. Therefore, it is important to highlight that the company's commitment to report on the activities in the field of sustainable development depends on its organizational and legal status.
In the 21st century the growing importance of factors such as innovation and the acquisition of new knowledge establishes the bases of sustainability report. Consumer facing sectors such as the utility, automotive, retail and technology companies in the field of sustainable development reporting have high percent of willingness; other sectors such as oil and gas, industrials and financial the percentage of companies' willingness to report is low [3]. The importance in sustainability reporting is the quality of the information and its reliability, such as business activities should match with the internal environment of the company. Germany, France, UK, Japan and US are willing to report on SDGs and 40 percent
CORPORATE SOCIAL RESPONSIBILITY (CSR): GLOBAL CAPABILITY
of largest companies in the world (G250 group of companies) discuss the SDGs in their corporate reporting [3]. Investment RobecoSAM, dealing with issues of responsible investing, has published the results of the annual international research TheSustainabilityYearbook 2018 according to which in 2017 the leaders in the field of sustainable development were the European with 40 gold medals, Asia Pacific with 14, North America with 8 and Emerging markets with 11 companies [4]. The first places are awarded to companies that demonstrate the best results in its sector.
To date, the companies scale is used in accordance to GRI principles of sustainable development, which are de facto treated as a single international standard for the preparation of such statements. Without a doubt, this idea of the GRI principles established itself almost in all countries of the world [6]. Major initiatives for sustainable development on a global scale is recognized by the UN Global Compact, as evidenced by the annual increase in the number of companies that have adopted a commitment to comply with the ten principles of the Treaty. Most of the companies that have signed the Global Compact, however, currently 31 companies around the world is reporting on SDGs, mostly the European companies are majority [6].
It is realizable that modern development of CSR more and more has to do with the promotion of socio-environmental responsibility through a chain of suppliers and subcontractors of the company, thus this process is reflected in the additional requirements to stakeholders interacting with companies implement in their work the concept of sustainable business development. These additional requirements could include the following elements: quality of supplied products, security and non-discrimination in the workplace, the greening of production processes and transparency of reporting [7]. Furthermore, the world's major companies often use an integrated reporting that includes elements of financial and non-financial reporting. This type of reporting allows for a comprehensive assessment of company perfor-
mance. Global ecosystem change is forcing big businesses to invest in environmental protection, and the growing number of companies in recent years shifting from the eco-efficiency policies to ecological innovations policy, designed to reduce the amount of consumed resources, primarily energy, and make drastic revolution in itself technological process [8].
Conclusions
The studies show that the companies are showing an upward trend in the field of CSR. The following areas can be identified within the national strategy for the development of CSR companies in globally. Development of sectoral and cross-sectoral partnerships and initiatives: This practice can help to representatives of the private sector to overcome the barrier of mistrust on the part of different groups of stakeholders, and united with their business partners, non-governmental organizations, investors, introduce the practice of CSR in the internal structure of their businesses; Forming a triangle "business-government-society": become a multilateral Board to develop options for a national CSR strategy; Providing CSR qualified consulting services interested business representatives: Pioneering company in the development of CSR rebuilt their own social responsibility strategy and are actively using industry tools, such as special programs, cross-sector partnership, discussion meetings with stakeholders, CSR reporting, the creation of innovative products and services of social or environmental orientation; Changes in the education system and improving the quality of human: Internal development programs, corporate universities, cooperation with schools and universities, training programs and jobs with the new requirements raise the general level of competence of people in the country, to create a market and country experts from top management to the workers; Improving transparency of business: The active position on CSR will enhance the transparency of the business, thus the company will be able to find out information on the corporate governance structure to the understanding of CSR strategies and social investments companies.
References:
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