The financial component of corporate social responsibility.

Abstract

The necessity of providing the corporate social responsibility as the tool for cooperation and partnership between the state and businesses as well as the way of improving social and labor relations during economic transformations were grounded based on scientific research. Social responsibility of corporations is a socioeconomic institution that operates as a partnership of corporation and stakeholders, reduces the transactional expenses, finds the solution to the conflict of interest and obtains stable competitive positions by the corporation by means of social responsible investment, social reporting, social partnership, dividend policy and corporate communication. The study, generalization and adaptation of progressive world experience are quite important for establishing this institution in Ukraine. It is reasonable to consider the first instrument of corporate social responsibility that is socially responsible investment and to offer mechanisms how to adapt the best world practices in Ukraine. The genesis of socially responsible investing in global corporate governance practices has been studied at the article. The financial component and benefits of socially responsible investing has been identified. The socially responsible investments and their methods have been classified. Problems that prevent the formation and development of social responsibility and socially responsible investment of corporations in Ukraine have been identified. Directions to encourage social responsibility have been proposed at the article.