Development of Corporate Social Responsibility in Business as a Factor of Fiscal Decentralization

Valeriia Baranova,Tetiana Kulinich,Liudmyla Denyshchenko,Viktor Zvonar,Olena Dutchak

doi:10.15549/jeecar.v8i3.760

Abstract

The study aimed to substantiate the nature of the influence and sustainability of corporate social responsibility (CSR) on the effectiveness of the fiscal decentralization of local government in Ukraine. The estimates of CSR indicators for 490 enterprises were obtained using the questionnaire results. Determined the structure of directions for implementing a socially-oriented approach in Ukrainian business. Functions of dependence of indicators of the effectiveness of financial decentralization of local authorities on CSR development were constructed using linear regression methods and considering the time lag. We have identified a stimulating but not sustainable impact of business CSR on increasing the financial base of local budgets in decentralization. The time lag hurts the growth of the company's tax payments due to the growth of CSR level. The results obtained can be used to form efficiency strategies of local government to initiate CSR development in businesses.

Highlights

The effectiveness of local government in ensuring the sustainability of the socio-economic development of the country's regions should be accompanied by an increase in the resources and financial base of local government and an increase in their autonomy
According to the results of the study, it was found that the development of corporate social responsibility (CSR) has a direct positive impact on the profitability of a business, which is manifested in an increase in tax payments to local budgets
This can be explained by the fact that the concept of CSR has not yet found proper reflection in Ukrainian business and is at the initial stage of its implementation and development

Summary

Introduction

The effectiveness of local government in ensuring the sustainability of the socio-economic development of the country's regions should be accompanied by an increase in the resources and financial base of local government and an increase in their autonomy. In Ukraine until 2014, only about 6 of 24 regions were characterized by financial selfsufficiency, which caused a significant regional disparity in the quality of life of Ukrainians (Garus & Niv'evsky, 2020). These challenges required the implementation of fundamental reforms in public administration, local selfgovernment, and the territorial organization of power in Ukraine. The government was forced to reduce taxes burden This directly affected the level and regularity of revenues to local authorities' budgets, and the local government had to incur additional costs for anti-epidemic measures to combat COVID-19. Community budgets were characterized by binary losses - lost income and additional expenses

Objectives

Methods

Results

Conclusion