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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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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12000

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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

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Fig. 4. Coefficients of information disclosure by companies on activities in the field

of Sustainable Development Goals

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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