Decent wages as a basis for socially responsible business practices in the new economy

Abstract

The article examines the conceptual foundations and significance of decent wages as a priority area for implementing socially responsible practices of business organizations. The study substantiates the actual role of this concept in the new business realities, the key trends of which are openness, networking, digitalization and globalization of processes. The purpose of the study is to determine the role of the concept of decent wages in the process of implementing socially responsible practices of a company. When studying theoretical approaches to the role of the concept of decent wages in ensuring the sustainability of business organizations, the author's vision on the value and practical significance of these processes has been formed. The author's own understanding of the relevance of these practices for business and society is determined. The potential opportunities for business organizations in the active application of socially responsible approaches to business activities are outlined and supplemented. Priority directions for strengthening the motivating role of the remuneration system in business organizations are identified. The study substantiates the proposal to reduce the fixed part of wages and increase the variable part, which will accordingly develop the ability of employees who are willing and able to earn money to perform work with greater efficiency. The idea that business entities should increase the share of labor remuneration in the cost of production and increase the amount of real wages has been developed. Since a decrease in real wages will also affect business organizations, with a decrease in the purchasing power of the population, sales volumes will decrease, and income and profits will decrease.