Self-regulation and socially responsible business: points of contact

Abstract

The business environment is changing rapidly. The practice of adhering to the principles of socially responsible business is becoming more widespread every year (the number of companies that share and implement such practices is growing rapidly). Of course, in addition to changes in the worldview of business owners and management, external factors, including certain extraordinary events, also contribute to this. Businesses demonstrate the ability to self-regulate their activities and the need for further sectoral unification. The article aims to study the relationship between self-regulation and socially responsible business. The author analyses the specifics of the activities of self-regulatory organisations, which are a classic manifestation of self-regulation. The article analyses the provisions of the Memorandum of Intent to create a favourable environment, develop fair competition in the Ukrainian petroleum products market and meet consumer needs for the period of quarantine and restrictions; the Memorandum on ensuring stable operation of the food supply chain in Ukraine under martial law; and the Memorandum on bank lending for energy infrastructure rehabilitation projects. It is substantiated that memoranda (declarations) of market participants are one of the forms of self-regulation that set out additional obligations and/or new rules of conduct. The author also considers self-regulatory local acts of business entities (declarations of integrity, rules for verification of counterparties, codes of ethics, etc.), which are also part of the concept of self-regulation. The author provides a classification of self-regulation in the context of socially responsible business. The study proves that self-regulation is one of the principles of socially responsible management. It is noted that only companies that adhere to high standards of socially responsible behaviour can demonstrate the ability of business to self-regulate. It is also noted that initiative is one of the key elements of socially responsible business behaviour.