CONTEMPORARY CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY IN GEORGIA

Abstract

Tamta Kartsivadze 
 E-mail: tamta.kartsivadze@bsu.edu.ge 
 PHD Student, Batumi Shota Rustaveli State University 
 Batumi, Georgia
 https://orcid.org/0000-0001-8579-5348
 
 Abstract. Corporate social responsibility (CSR) is a connecting link between the organization and the society. Social responsibility is a concept that involves improving economic, social and cultural environment and solving problems that are directly or indirectly caused by business activity.
 Corporate social responsibility has already become a fast-growing modern trend and a common form of doing business. Nowadays, the number of companies that are active in the direction of social responsibility is increasing. They express goodwill and their main goal is not only to make a profit, but also to have a positive impact on the working, natural and social environment.
 The term "corporate social responsibility" was first coined in the late 1960s and early 1970s. Over the decades, its concept has been clarified, the fields and types of activity have been outlined. Initially, its definition was vague and general. Issues, such as environmental activities, protection of human and consumer rights have gradually entered the scope of CSR due to the actualization of the mentioned issue.
 The main basis for the spread of CSR in developed countries is a powerful business sector and a high level of public or local community awareness. So, social responsibility is widely implemented in highly industrialized Western countries. In addition to social goals, CSR is used as a marketing tool to gain competitive advantage in the marketplace in case of increased competition. Despite the steps taken in this direction in Georgia, this social institution has not been fully formed. Georgian companies are not aware of the importance of social responsibility and the need to implement it in practice. CSR, as a tool for sustainable development and effective communication, plays an important role in the development process of the business sector.
 Due to the actuality of the topic, the demand for CSR from customers, employees and investors is increasing in Georgia, which leads to the need to study social responsibility in depth. This article discusses the essence of social responsibility of business as a contemporary philosophy, its functions and areas of implementation. Also, the article examines the current situation in Georgia regarding the mentioned issue, characterizes and analyzes the parties involved in the corporate social responsibility on the example of Georgia. Attention is focused on contemporary challenges of CSR and the necessary recommendations for addressing these challenges are formulated.