The place of corporate social responsibility in ensuring an effective system of banks' relationships with stakeholders

Kovalenko Victoria
D.Sc. (Economics), Professor, Professor, Department of Banking, Odessa National University of Economics, Odesa, E-mail:kovalenko-6868@ukr.net, ORCID ID: https://orcid.org/0000-0003-2783-186X

Cite this article:

Kovalenko V. (2023) The place of corporate social responsibility in ensuring an effective system of banks' relationships with stakeholders. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Mistse korporatyvnoi sotsialnoi vidpovidalnosti u zabezpechenni efektyvnoi systemy vzaiemovidnosyn bankiv zi steikkholderamy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 1-2 (302-303), pp. 75-85.

Abstract

In the article, the author considers the main aspects of the place of corporate social responsibility in ensuring an effective system of managing the relationship between banks and stakeholders. The purpose of the research article is to study the features and mechanisms of corporate social responsibility and its place in ensuring an effective system of managing the relationship between banks and stakeholders. It is substantiated that the social responsibility of business today is not only the reality of today, but also an urgent need of the world community. The management of a modern bank is one of the most important areas of activity, as banks have become at the center of economic, political and social nature. Therefore, there is a need to choose an adequate efficiency model; development and implementation of a system of tools that allow at all levels of the bank to make sound management decisions on resource provision in order to increase its value for all stakeholders, expressed in its profitability and stability of financial relations between them. The paper identifies that social responsibility involves voluntary actions of the bank aimed at taking into account the interests of society, employees, partners and other stakeholders. The bank's corporate ethics is a culture of interaction between management and staff among themselves and with external stakeholders. The author of the article identifies the main quantitative criteria for assessing the level of social responsibility of banks through the establishment of relationships, namely: staff (labor responsibility), consumers, business partners, society and the environment, the state (economic responsibility). It is proved that the observance of the principles of social responsibility is the definition of responsibility, the philosophy of management behavior that influences the behavior, actions of all bank staff, which in turn contributes to sustainable development not only the company but society as a whole. In the conclusions of the article, the author emphasizes that modern management principles should contribute to the formation of a set of actions aimed at ensuring security and development of internal (welfare of employees, shareholders) and external environment of the bank (social development, environment) and humanity as a whole rules. Corporate culture is based on them.

Keywords

stakeholders, corporate governance, corporate social responsibility, social programs, banking.

JEL classification: G210, M140; DOI: 10.32680/2409-9260-2023-1-2-302-303-75-85

UD classification: 334.78:304.2:336.71

References

1. Bezditnyy̆, V. (2013). Corporate governance in Ukrainian banks. Consideration of regulatory regulation by experts. Yurydychna hazeta], 49, 12–13. [Іn Ukrainian].
2. Kovalenko, V.V, Sergeeva, O.S. (2020). Stakeholders and their impact on the development of the banking business. Ekonomichnyy dyskurs. Mizhnarodnyy naukovyy zhurnal, 2, 75-85. DOI: https://doi.org/10.36742/2410-0919-2020-2-8. [Іn Ukrainian].
3. Voronchak, I. O. (2018). National models of social responsibility of business: features and mechanism of formation. Ekonomika i suspilʹstvo, 17, 24-29. DOI: https://doi.org/10.32782/2524- 0072/2018-17--4. [Іn Ukrainian].
4. Kozub, V.O., Chernyshova, L.O. (2019). The influence of foreign experience on the formation of the domestic model of socially responsible business. Naukovyy visnyk Uzhhorodsʹkoho natsionalʹnoho universytetu. 25, 1, 121-125. [Іn Ukrainian].
5. Antonov, A.V. (2015). Areas of stimulating the development of corporate social responsibility: foreign experience. Retrieved from http://www.dy.nayka.com.ua/?op=1&z=926. (Аccessed 10, Desember, 2022). [Іn Ukrainian].
6. Grishnova, O.A. (2011). Social responsibility in the context of overcoming the systemic crisis in Ukraine] Demohrafiya ta sotsialʹna ekonomika, 1(15), 39-46. [Іn Ukrainian].
7. Lunkina, T.I., Karatay, T.M. (2017). Assessment of socially-oriented policy in banking institutions of Ukraine. «Modern Economics», 6, 130-137. [Іn Ukrainian].
8. Oliynyk, L.V. (2019). Development of corporate social responsibility in the banking sector of Ukraine] Finansy, oblik, banky, 1 (24), 57-67. DOI: http // dx.doi.org / 10.31558 / 2307- 2296.2019.1.6. [Іn Ukrainian].
9. Fridman, M. (1970). The Social Responsibility of Business is to increase its Profits. New York Yimes Magazine, 13 September, p. 122-126.
10. Sardak, S., Bilskaya, О., & Simakhova, A. (2017). Potential of economy socialization in the context of globalization. Economic Annals-XXI, 164 (3-4), 4-8.
11. Verbytska, Ya.Ye. (2015). Directions for ensuring the competitive position of Ukrainian banks. Stan, problemy ta perspektyvy vdoskonalennya ekonomiky Ukrayiny: materialy dopovidey Mizhnarodnoyi naukovo-praktychnoyi konferentsiyi (m. Uzhhorod, 2-3 zhovtnya 2015 r.) / Za. zah. red.: M. M. Palinchak, V. P. Prykhodʹko, A. Krynski. Uzhhorod: Vydavnychyy dim «Helʹvetyka», 2, 51-54. [Іn Ukrainian].
12. Blagov, Yu. E. (2004). The concept of corporate social responsibility and strategic managementю Rossiyskiy zhurnal menedzhmenta, 3, 17-34. [Іn Russian].
13. Social responsibility of business: understanding and implementation. Retrieved from http://www.un.org.ua/files/Concept_Paper.pdf.
14. Kotler, F., Armstrong, G. (2003). Osnovy marketinga. M.: Publishing house "Williams". [Іn Russian].
15. Lasukova, A.S. (2011). The essence of the concept of "social corporate responsibility" and its implementation in the banks of Ukraine. Nauchnyy vestnyk DHMA, 1 (7), 286-290. [Іn Ukrainian].
16. Reputational activists. Rating results. Retrieved from http://repactiv.com.ua/ru/results.