SOCIAL INVESTMENT IN CORPORATION DEVELOPMENT STRATEGY IN UKRAINE

Abstract

The article is devoted to identify the need for social investment in the activities of Ukrainian corporations in formulating a social responsibility strategy. The purpose of the article is to investigate the development of social investment in the activities of corporations to determine the main directions of social responsibility in the formation of the strategy of Ukrainian companies. The methodological survey was conducted using a social investment index based on data from the official e-CSR website, non-financial reports of Ukrainian best-practice companies and corporate sustainability reports. The article is investigated definition of social investment as a subjects of the investment process, types of social investments. It is calculated the social investment index of Ukranian best-practice companies with responsible investing practices (PJSC «Mironovsky Bakery», DTEK, NNEGC Energoatom, PJSC Arcelor Mittal Kryviy Rih, NJSC «Ukrenergo», LLC Lifefell, NJSC Naftogaz of Ukraine, LLC «Nova Poshta», SCM, PJSC Carlsberg Ukraine). The analysis allowed to determine the effective and destructive directions of doing socially responsible business which is based on selected indicators. The results allowed us to identify key barriers to social investing and the main directions of development of corporate social investment in Ukraine: increase of transparency of corporate activity, information awareness of business on the development of social investments in the national market, ensuring the ethics of doing business and adhering to the principles of integrity in the implementation of company development strategies, improving product quality in accordance with international standards.