PRINCIPLES OF THE UN GLOBAL COMPACT IN THE SYSTEM OF CORPORATE SOCIAL RESPONSIBILITY: ANALYSIS OF THE EFFICIENCY OF UKRAINIAN COMPANIES

Abstract

We adhere to the opinion that the implementation of the principles of sustainable development in corporate strategies and ensuring their practical implementation takes place in the context of corporate social responsibility, and business is one of the main drivers of the sustainable development of the economy. An important aspect in the development of corporate social responsibility is the Sustainability Disclosure. The international community makes great efforts to establish and develop corporate social responsibility. In particular, the Global Reporting Initiative and the United Nations play an important role in this area, in particular, it regards to the development and implementation of relevant international standards, guidelines and principles that must be respected by businesses, governments and society around the world. We believe that a key role in the development of corporate social responsibility in Ukraine is played by the process of implementing the course of continuing and deepening integration into the EU. After all, EU law requires certain large companies to disclose information on the way they operate and manage social and environmental challenges (Directive 2014/95/EU on non-financial reporting), in particular, starting from 2018, companies are required to include non-financial indicators into their annual reports. The main standards used in the preparation of reports by participants of the UN Global Compact Ukraine are the UN Global Compact reporting gidelines to prepare a Communication on Progress, as well as information on the contribution to the achievement of the 17 UN Sustainable Development Goals by 2030. Only certain, usually large, companies use the Global Reporting Initiative's sustainability reporting standards. However, the analysis of available reports emphasizes the need for a more conscious and responsible approach of business entities to the process of reporting on corporate social responsibility. Thus, the study of best global experience in the formation and development of corporate social responsibility is relevant and significant.