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NATIONAL TECHNICAL UNIVERSITY OF UKRAINE
“IGOR SIKORSKY KYIV POLYTECHNIC INSTITUTE”
«THE IMPACT OF SOCIALLY RESPONSIBLE
AGRICULTURAL BUSINESS ON SUSTAINABLE
DEVELOPMENT»
Research adviser:
Okhrimenko Oksana Onufriivna
Doctor of Economics / Professor
2020
Code Sustainable Development
051-Economics
Potapova Viktoriia Pavlivna
The purpose of the study: theoretical justification and development of
scientific and methodological approaches to identify and assess the impact of
socially responsible agricultural companies on the achievement of SDGs.
The object of study is the processes of implementation of CSW in the
activities of enterprises.
The subject of research: theoretical and methodological and applied aspects
of the impact of socially responsible agricultural business on sustainable
development.
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3
The scientific novelty of the study is:
- Improving the mechanism of CSR implementation in the business
strategy at the intersection of the institutional and business environment,
which justifies the need of the economic system to attract resources and
determine their own mechanisms for implementing CSR in activities.
- development of methodological approaches to the analysis of the impact
of socially responsible business on sustainable development by developing
ratios that determine the degree of disclosure of information on activities to
achieve CSR by companies in reports according to GRI standards. This
allows us to assess the level of influence of companies on those aspects that
contribute to sustainable development in general, as well as on individual
SDGs.
Fig. 1. The mechanism of SDGs implementation in business strategy 4
Institutional environment
Business environment
Sustainable Development Goals
Business strategy
Economic dimension
Ecological dimension
Social dimension
Productivity, Profitability, Competitiveness
Compliance with environmental rules
Caring for healthy nutrition, environment, human resources development
Leverage:
Clearance
Dialogue
Standards
Reputation
Forms of interaction:
Joint projects
Training programs
Development of territories
Monitoring
Fig. 2. Dynamics of commercial companies participating
in the UN Global Compact • data for 2020 - as of 01.05.2020
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0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
0
2000
4000
6000
8000
10000
12000
20
00
20
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20
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20
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20
Number of Ukrainian participating companies
Share of participants in the food and agriculture industries
Fig. 3. Results of the reports of the participating companies on the UN Global
Compact for individual SDGs in 2019
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Table 1 - The share of CSR disclosure by companies
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Number of
goals
MNCs National companies
ADM JBS Tyson
Foods Wilmar Astarta MHP
Goal 1 50.0% 25.0% 25.0% 75.0% 25.0% 50.0%
Goal 2 40.0% 0.0% 0.0% 80.0% 20.0% 40.0%
Goal 3 16.7% 33.3% 25.0% 58.3% 25.0% 58.3%
Goal 4 0.0% 0.0% 0.0% 0.0% 0.0% 50.0%
Goal 5 14.3% 14.3% 7.1% 50.0% 21.4% 42.9%
Goal 6 27.3% 36.4% 36.4% 72.7% 18.2% 45.5%
Goal 7 42.9% 14.3% 42.9% 28.6% 28.6% 28.6%
Goal 8 32.4% 17.6% 26.5% 47.1% 20.6% 52.9%
Goal 9 0.0% 0.0% 0.0% 100.0% 50.0% 50.0%
Goal 10 0.0% 0.0% 0.0% 50.0% 0.0% 50.0%
Goal 11 0.0% 0.0% 0.0% 100.0% 0.0% 100.0%
Goal 12 33.3% 33.3% 42.9% 33.3% 19.0% 47.6%
Goal 13 50.0% 25.0% 62.5% 50.0% 18.8% 37.5%
Goal 14 42.9% 21.4% 50.0% 78.6% 14.3% 35.7%
Goal 15 42.9% 14.3% 50.0% 78.6% 7.1% 21.4%
Goal 16 23.1% 15.4% 26.9% 38.5% 7.7% 23.1%
Goal 17 0.0% 0.0% 0.0% 100.0% 0.0% 100.0%
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Coefficient of coverage by the
company in the report of a separate
SDG
𝐾𝑆𝐷𝐺 𝐴𝑉𝐺 = 𝑠𝑛
𝑠𝑛+ℎ𝑛
𝑛𝑖=1 17
where KSDG AVG – coverage ratio by the company in
the report of a separate SDG,
n – serial number of the SDG,
sn – number of indicators covered by the company in
the report, corresponding to the n-th SDG,
hn – number of indicators that correspond to the n-th
SDG and are not shown by the company in the report.
where KSDG – the company's disclosure ratio in
the report of indicators that contribute to the
achievement of SDGs,
s - the number of indicators covered by the
company in the report, corresponding to SDGs,
h - the number of indicators corresponding to
SDGs and not shown by the company in the report.
The company's disclosure ratio in
the report of indicators that contribute
to the achievement of SDGs
𝐾𝑆𝐷𝐺 = 𝑠
𝑠+ℎ;
Effectiveness of social responsibility strategies of the
companies in terms of their impact on individual SDGs
9
Fig. 4. Coefficients of information disclosure by companies on activities in the field
of Sustainable Development Goals
10
Fig. 5. Segmentation of global and national companies according to the approaches
of realization of the Sustainable Development Goals
CONCLUSIONS
1. According to the result analysis of SDGs implementing ways of a business management
the mechanism of Sustainable Development Goals implementation in business strategy has
been developed that occurs at the intersection of institutional and business environment.
The highlighted mechanism indicates the need to attract the necessary resources and
identify mechanisms for the implementation of SDGs, which will apply to the strategies of
companies.
2. As of 2019, the share of agricultural companies among the participants of UN Global
Compact is increasing annually and its share is 4.1% of participants. The results of the
reports of the participating companies in UN Global Compact showed that in 2019 the
companies reported the most on the implementation and positive impact on SDGs №3
(60% of signatories), №5 (61%), №8 (68%). This shows that the process of integration of
the 10 principles of the UN Global Compact, which are linked with SDGs, has led to
strengthening the role of business and its impact on maintaining good health, gender
equality and economic growth, improving working conditions.
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CONCLUSIONS
3. According to the mechanism of SDGs implementation by businesses «SDG Compass»
found that reporting is a prerequisite for the integration objectives set to achieve
sustainable development in business activities. Research disclosure of performance
standards GRI reporting companies (KSDG AVG; KSDG) in 2018 showed that
agricultural companies mostly disclose standards that contribute to the achievement of
SDGs №1 (average disclosure rate by companies – 41,7%), №13 (40,6%), №14 (40,5%),
№6 (394%). This shows that agricultural companies, compared to global trends, are
intensively implementing a number of measures that have a positive impact on sustainable
development in the context of natural resources protection, climate change and ensuring
decent sanitation.
4. During the research the segmentation of the companies on the basis of calculation the
scattering measure (dispersion) of share values of disclosure in companies` reports which
are linked with separate SDG was formed. The degree of the scattering measure (variance)
was given as a percentage. Such shares mean the level of specialization of companies in
influencing the sustainable development of society. The obtained indicators were
compared with the calculated coefficients (KSDG AVG; KSDG). The study shows that
companies with a greater value variance with specialized strategies are that focused on
achieving several goals (strategy of companies Wilmar, MHP), and such strategies are
have greater impact on society (because the value KSDG AVG and KSDG of such
companies is also larger). 12
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