Microeconomic Level Research Articles

Firms’ access to finance in resource-based countries and the financial resource curse

Using a panel of more than 156 000 firms surveyed in 140 countries over the 2003–2019 period, this paper addresses the issue of the financial resource curse through a new channel that thus far has not been accounted for in the literature, namely, firms’ access to finance. To do this, our econometric analysis is based on an original approach combining microeconomic level data on firms’ access to finance and macroeconomic level data on countries’ level of natural resource rents, with a focus on energy rents (oil, gas and coal). By doing so, we are able to investigate in a more precise and disaggregated way the mechanisms explaining why resource-based countries are associated with less developed financial systems. Using panel regressions, we find significant and robust evidence that firms operating in countries characterized by a high level of natural resource rents suffer from less access to external financing. Moreover, depending on two important transmission channels, namely, the quality of institutions and the extent of supply constraints, we find heterogeneities in the relationship between firms’ access to finance and countries’ level of natural resource rents. In addition, we show that the countries’ level of natural resource rents has a significant and negative correlation with firms’ access to finance only for firms that do not operate in the natural resource sector. This provides new evidence of the Dutch disease phenomenon, since the lack of firms’ financing can also be an explanation for the atrophy of sectors unrelated to the natural resource sector.

Разработка методики оценки уклонения от налогов на промышленные субъекты

The article is devoted to the phenomenon of tax evasion, its consequences and ways to measure it. The task includes a fundamental theoretical analysis of the study of the methodological part, focused on the indicator of fiscal pressure. In the paper, the authors presented the causal relationships between taxation, fiscal pressure and tax evasion, as these phenomena are measured at the macro- and microeconomic levels. In examining the causes and consequences of tax evasion at the country and organization/entity levels, the researchers mentioned financial position, financial performance and cash flow as elements to reduce tax fraud. For this, various formulas for calculating tax pressure and tax evasion were established, presented and systematized to reduce tax pressure through the financial results of the entity’s activities.

The relationship between robots and labour productivity: Does business scale matter?

Scholarly literature on the economic consequences of robotisation at the microeconomic level often does not take into account the pronounced digital gap between small and medium-sized businesses and large ones. In this regard, theoretical and real estimates may differ for companies of different sizes. The article studies the relationship between robotisation and labour productivity in the Russian industry in the context of size groups of companies. Methodologically, the study relies on the theory of the firm and economic theories explaining the essence of labour productivity and methods for evaluating it. The research analyses the data about 725 Russian industrial enterprises for 2017 using the methods of regression modeling. The data was obtained in the course of the fundamental research programme at the HSE University. According to the results, only small and medium-sized enterprises have a significant and reliable relationship between the introduction of robots and labour productivity. Probably due to the complexity of business processes, large businesses need deeper and more elaborate robotisation to gain labour productivity benefits. The calculations also demonstrate a negative relationship between exports and labour productivity in large companies, which contradicts the ‘classical’ ideas about the impact of export activities on the efficiency indicators. This may indicate that the high labour productivity of a considerable part of large Russian enterprises proceeds from their monopoly position in domestic markets, while formally less productive companies, which do not occupy dominant positions, appear to be competitive and motivated enough to enter foreign markets. The findings can be useful for the leadership of enterprises, especially that of SMEs, for the managerial decision-making in terms of increasing productivity, in particular, through robotisation of production.

ОСОБАЯ РОЛЬ РЫНКА ТРУДА КАК УНИВЕРСАЛЬНОГО ФАКТОРА ПРОИЗВОДСТВА\

In modern conditions of the economy, unstable financial and political processes, the labor market is undergoing serious changes on a global scale. The article discusses the demand and supply of labor, the impact of migration processes, unemployment rates, the dynamics of the domestic and international markets, both at the macroeconomic and microeconomic levels. A study of the labor market as an economic system is given, taking into account the indicators of GDP and GNI. The ratio of supply and demand in the labor market in macroeconomic theory is considered, the dependence of wages on working hours is given. Attention is focused on the analysis of the relationship between the labor market and the unemployment rate. The data on the unemployment rate for the constituent entities of the Russian Federation, indicators of the impact of the minimum wage and migration (immigration) on the labor market, the results of economic data on migration in the labor markets of the Migration Advisory Committee (MAC) are provided.

Capital investment, business behaviour, and the macroeconomy

AbstractGC Harcourt made many fundamental and essential contributions to the development of capital investment theory – most famously via his development of the Cambridge Capital Controversies, exposing conceptual and analytical flaws and contradictions in neoclassical approaches to defining and measuring capital. Relatedly, Harcourt also made essential contributions to our understanding of how accounting rules, used by real-world businesses to guide their investment decision-making, create anomalies and deficiencies in the accumulation of capital at a microeconomic level – with significant, deleterious consequences for the accumulation of capital at a macroeconomic level. In developing Harcourt’s contributions, this paper links Harcourt’s early insights about accounting rules with subsequent developments in behavioural economic models of business decision-making, thus aligning Harcourt’s contributions with insights from behavioural models of investment decision-making. These insights are then combined in showing how the misapplication of investment appraisal criteria at a microeconomic level contributes to under-investment and investment volatility in the macroeconomy, with negative implications for output, employment, labour productivity, wages and cyclical volatility.

RATIONALITY OF HOLDING US DOLLAR ASSETS BASED ON GLOBAL US DOLLAR LIQUIDITY STRUCTURAL TRANSFORMATION: A NEW PERSPECTIVE ON ASSET ALLOCATION

ABSTRACT As a crucial share of global liquidity, USD liquidity heightens a prominent negative spillover effect within the international monetary system. Especially, against the turbulent world background after the 2020 pandemic and the Russo-Ukrainian War, it is more observable to intensify the negative spillovers of USD liquidity during bad times. US Treasury securities, which greatly contribute to the USD liquidity externality because of their safety and reliability, have long been preferred by the world’s main economies. Moreover, the yield of US Treasury securities can be an important factor determining the USD liquidity spillover and is a key consideration in evaluations of the international monetary system. Considering the dilemma USD assets holders are faced with, we dig into the spillover effect at the macro-economic level and extend this mechanism into asset allocation effectiveness at the micro-economic level. Our investigation results point to a significantly negative relationship between the effect and risk level of USD assets on the one hand and the scale of USD foreign exchange reserves on the other. This implies that the world’s main economies face more challenges regards to international liquidity management, lacking a feasible plan for replacing USD assets. We contend that reform and diversification are needed in the current USD standard monetary system to strengthen the effect of global liquidity. Keywords negative externality of USD liquidity, US Treasury securities, asset allocation, monetary system reform, turbulence

Cost-Benefit Analysis of Housemaids: The Case of Jordan

Objectives: This study investigates the phenomenon of household workers in Jordan, and it aims to analyze its benefits and economic costs at the macro and microeconomic levels.
 Methods: The study adopted the descriptive analytical approach to estimate benefits and costs, using the Cost-Benefit Technique for discussing the expected benefits and costs of having household workers in the Jordanian labor market. The study tools used to collect data were conducting personal interviews with the concerned authorities and making observations.
 Results: The findings revealed that the expected cash costs are greater than the expected cash benefits at the macro level during a specific period of time. They also revealed that the expected cash costs are greater than the expected cash benefits at the micro level during the same period.
 Conclusions: The study concludes that there is no economic feasibility at the macro level since the expected cash costs are greater than the expected cash benefits during a specific period. In addition, there is no economic feasibility at the micro level since the expected cash costs are greater than the expected cash benefits during the same period.

Methodological tools and economic models to analyse the transition to a new development trajectory in China

The primary objective of this conceptual paper is to provide the reader with a methodological toolkit for analysing China’s transition to a new economic trajectory based on qualitative production factors such as research and development and innovation, as well as highly skilled human capital, etc., which thereby could help the country in escaping the middle-income trap. The nature of the proposed methodology is impact assessment, i.e., the paper discusses the ways and means of assessing and predicting the impact of policy measures on the economy. The use of a specific set of indicators and the application of the DEA-SBM and the PSM-DID models is proposed for quantitative analyses amended by the Markov Chain Model for predictions. The main contribution of this paper to the existing body of knowledge is the proposition of a comprehensive model for evaluating economic development in general. By exploring the role of economic policies, a deeper understanding can be obtained of how the economy should be reformed and developed. It is a valuable and practical approach to compare differences and solve problems at the macro, mezzo, and microeconomic levels that can be applied to other regions and countries facing similar challenges.

ОСОБЕННОСТИ УЧЕТА СУБСИДИЙ В АВТОНОМНЫХ УЧРЕЖДЕНИЯХ

The relevance of the article is due to the fact that modern economic conditions require improvement of the provisions of the accounting system; autonomous institutions in the Russian Federation are not only performers of state functions, but also full-fledged economic entities at both the macro- and microeconomic levels, which requires taking into account their status when improving accounting processes. In connection with the ongoing crisis trends in Russia and in the world, as well as the growth of the budget deficit, the search for ways to improve national approaches to accounting of autonomous institutions and organizations is of particular relevance. Methods were used within the framework of a systematic approach: generalization of theoretical material and scientific literature on the research topic, logical and comparative analysis to identify the features and specifics of accounting in autonomous institutions. The article substantiates that, according to scientific research, the modernization of accounting in the public sector occurs much more slowly than in others, that is, this area has great potential for optimizing public spending by eliminating existing shortcomings in this process. The tasks of accounting for subsidies by autonomous institutions are defined: the formation of complete and reliable information; timely, continuous provision of the necessary information on the receipt and use of subsidies to internal and external users; implementation of systematic control over compliance with financial discipline; identification of signs of violations and abuses in accounting in the public administration sector; providing accounting, analytical, control support for the budget system management process; generating new knowledge in public sector accounting. The rules for accounting for subsidies for the implementation of state/municipal tasks by autonomous institutions are presented. The article achieves the goal of the study: generalization and development of scientific and methodological foundations and development of practical recommendations for improving the accounting of subsidies in autonomous institutions in conditions of instability and crisis trends and the need to optimize budget expenditures.

РЕІНТЕГРАЦІЯ ТА СОЦІАЛЬНА ІНКЛЮЗІЯ ВЕТЕРАНІВ ЯК ФАКТОР ВІДТВОРЕННЯ ЛЮДСЬКОГО КАПІТАЛУ В УМОВАХ МАКРОЕКОНОМІЧНОЇ НЕСТАБІЛЬНОСТІ

The article emphasizes the growing attention of the scientific community, state authorities and administration to the processes of reintegration and social inclusion of war veterans in all spheres of public life. It is emphasized that these processes of reintegration and social inclusion of war veterans are important for the reproduction of national human capital and macroeconomic stabilization of the Ukrainian economy. The structure of war veterans is considered and the share of different categories of war veterans from their total number is determined. It is summarized that a significant part of them may feel social isolation from society and expands the number of exclusive members of society. Groups of war veterans problems are classified in this article, namely: firstly – problems of deterioration of their physical and/or mental health; secondly – employment problems; thirdly – problems of their socialization. The expansion of the range of war veteran’s problems under the full-scale war and macroeconomic instability emphasizes the urgency of creating appropriate conditions for their socio-psychological, economic reintegration and social inclusion in civilian life. In this article, reintegration is considered as a process of adjustment, adaptation of war veterans to civilian life, and social inclusion is defined as a process of involving war veterans in all spheres of public life (economic, social, political, civil). It is proposed to use a comprehensive approach to the processes of reintegration and social inclusion of war veterans. It was found that at the microeconomic level, veterans' families, as well as territorial communities, play an important role in the adaptation and inclusion of war veterans into civilian life, while at the macroeconomic level, this role is assigned to the state and its main institutions. It is proposed to use the progressive experience of countries that have previously participated in military conflicts and have time-tested and effective tools of socio-economic and physical-psychological support for war participants and war veterans.

Application of machine learning in classification of overinvestment: Evidence from listed firms in Vietnam stock exchange market

Studies have consistently demonstrated that both overinvestment and underinvestment exert adverse effects on the overall efficacy of business operations, showcasing the significance of understanding and addressing these phenomena in the realm of scholarly research. Therefore, in this study, we aim to develop an accurate machine-learning model to identify overinvestment in firms listed on the HSX and the HNX stock exchanges in Vietnam. We decided to conduct a comparison to identify the optimal model for classifying firms of overinvestment or not, including Logistic Regression, K-Nearest Neighbor (KNN), Naive Bayes (NB), Support Vector Machine (SVM), Decision Tree, and Random Forest. Using a sample of 658 non-financial listed companies in Vietnam between 2011 and 2021, our result shows that the most importance predictor variable is "FCF" (free cash flow), with an importance value of 0.14. Although both logistic regression and random forest (RD) algorithms demonstrate high accuracy in identifying firms with overinvestment, the Random Forest algorithm exhibits slightly higher precision and recall for class 1 (overinvestment firms) when compared to Logistic Regression. By contrast, the accuracy performance of the four models (NB, KNN, DT, and SVM) is low, ranging from 0.53 to 0.67. At the microeconomic level, this research can help businesses gain insights into their financial performance, identify areas for improvement, and take proactive measures to avoid financial distress and improve profitability by identifying potential cases of overinvestment. Overall, the study provides a valuable contribution to the field of financial analysis using machine learning techniques. We firmly believe that the findings of this research will serve as a significant scholarly reference for future investigations in the field and explore other importance predictors of overinvestment in Vietnam and other emerging markets.

Relationship of Investment in Innovation and Logistics Activity in the Conditions of the Experience Economy Development

The urgency of solving this scientific problem is determined by the need to take into account the features of the experience economy development, which have both a rational and emotional nature, and their manifestations and transmission and considering information in the virtual space. Also, by analysing and basing on the effectiveness of business entities at all economic levels – macro and meso- and by functional directions, one of which is logistics activity, which should be characterized by innovation in relation to the real space of its manifestation through the value of transportation indicators. The purpose of the article is to determine the influence of investments in intangible assets as the basis of innovative development on the efficiency of logistics in the modern conditions of the development of the economy of experiences in real and virtual space. The study of this complex issue in the article is carried out in the following logical sequence: based on the analysis of the latest publications, the main directions of research are determined according to the triad «economy of experiences, virtual space, logistics activity in real space taking into account the use of innovations based on investment in intangible assets» based on the use of the Internet resources, i.e. in virtual space, the flow of logistics activities taking into account the use of innovations and investments in intangible assets as their basis in real space; with the use of economic-mathematical methods of descriptive statistics and the built multifactorial regression model, the relationship between the efficiency of enterprise activity and the use of the Internet by real and potential consumers (in the virtual space), i.e., the importance of the Internet for ensuring the success of business activities in general and logistics in particular, was proven; with the use of cluster analysis, the intensity of the use of the Internet in the regional aspect was determined in order to strengthen the influence on the formation of positive impressions about the economic activity of economic entities; on the basis of statistical analysis, the main trends of changes in values in the real space of indicators of logistics activity were determined: turnover of wholesale trade, export and import, volumes of transportation by rail, road transport, air transport, pipeline transport and volumes of investments in tangible and intangible assets as a basis for the development and implementation of innovations; with the use of multidimensional factor analysis, latent factors influencing logistics activity and investment in intangible assets were identified; modelling of the relationship between investment volumes in intangible assets and indicators of logistics activity – exports, imports, volumes of transportation by railway and motor vehicles using multifactorial regression analysis was carried out; taking into account the identified dependencies, proposals were developed for the activation of logistics activities in the context of investing in innovations in the conditions of the development of the economy of experiences. The presented proposals are characterized by scientific novelty and practical significance. The study empirically confirms and theoretically proves the expediency of considering the triad «economy of experiences, virtual space, logistics activity in real space, taking into account the use of innovations based on investment in intangible assets» in order to achieve the successful functioning of economic entities of different economic levels. The results of the conducted research are of practical interest for managers of the macro-, meso- and microeconomic levels in the process of making management decisions in various functional areas, in particular logistics, regarding the activation of their activity to ensure its innovative orientation in the conditions of the development of the economy of experiences.

TRANSFORMATION OF THE INSTITUTIONAL ENVIRONMENT OF INNOVATIVE DEVELOPMENT OF THE PUBLIC ECONOMY

Purpose. The aim of the article is to generalize the trends of the transformation of the institutional environment of the innovative development of the national economy and the features of the institutional support for the development of innovations. Methodology of research. The theoretical and methodological basis of the research is: a systematic approach to the generalization of trends in the transformation of the institutional environment of innovative development; institutional approach to the substantiation of the elements of the regulatory influence of formal norms, oriented towards the development of innovations; structural and functional analysis – to determine the macroeconomic and microeconomic manifestation of post-industrial transformations on the institutional environment. Findings. It is emphasized that for the formation of an effective toolkit for innovative modernization of the national economy, it is important to take into account global factors of economic dynamics, their exogenous and endogenous manifestations. It was established that the modern vector of global transformations, which is already having an impact on the national economy, has become digital modernization, which radically changes the economic relationships of people and the fundamental role of economic resources. It is argued that digitalization generates effects that receive macroeconomic manifestation through the emergence and spread of new business strategies, changes in market conditions, and an increase in labour productivity. At the microeconomic level digitalization leads to a change in the structure and supply of goods production, their quality, logistics and sales conditions, and the interaction of manufacturers. Digital technologies contribute to the emergence of new institutions and institutes and influence existing ones by algorithmizing institutional influence and regulation, minimizing the impact of institutional traps and preventing the emergence of new ones, reducing the stability of existing routines, increasing or decreasing the effectiveness of institutions. Originality. It is substantiated that the post-industrial transformations of the economy and the institutional environment change the structural characteristics, but not the essential purpose of institutions and institutes in innovative development. The processes of digitalization and network interactions contribute to the standardization and algorithmization of institutes, the introduction of "digital institutes"; increase the efficiency of established institutes and institutions; create new dysfunctions due to the opportunistic behaviour of economic subjects; form an institutional "vacuum" due to the proliferation of digital technologies that have not yet become embedded in the institutional environment. In view of the task of innovative modernization of the public economy, in order to exclude the negative impact it is necessary to modernize the institutional environment itself to change the direction of the functional influence of regulatory norms and introduce organizational innovations that can improve the institutional structure. Practical value. The theoretical and methodological provisions of the study deepen the practical principles and tools of institutional regulation of innovative modernization of the national economy. Key words: modernization, innovative development, social economy, transformation, institutional regulation, institute, institution.

The impact of policy response to Covid-19 on the transportation and storage sector in Visegrad Countries (V4)

The paper is devoted to analysing national policy responses to the economic consequences of the COVID-19 pandemic in the Visegrad countries (Czechia, Hungary, Poland, and Slovakia) - on both the macroeconomic and microeconomic level. Focus is given to the transportation and storage sector (NACE Rev. 2 code H). The pandemic unevenly impacted this sector: while specific subsectors were thriving during this period (e.g. parcel delivery services), others were suffering due to abrupt mobility changes (e.g. public & individual mobility services). Public policies were presented not only as a tool to reduce the negative impact of the pandemic but also to provide a platform to build new competitive advantages for national business entities, thus providing the rationale for an analysis of the actual impact of programs aimed at the transportation and storage sector. The impact of the state-aid focusing on the analysed was uneven between the analysed countries. Even though, the deployed programs have helped the industry to return to pre-pandemic levels within 4 quarters. This proves that apart from the structure of state-aid programs and schemes, an important factor was the pre-pandemic value chains. This could serve as a starting point for further research as more data become available.

Profit from the Perspective of the Power Theory of Money

In this article, profit is considered from the point of view of the power theory of exchange and money. This allows solving several problems at the micro- and macroeconomic levels. At the microeconomic level, both classics and neoclassic have difficulty explaining production and trade profits. Considering these phenomena from the position of the power theory of exchange and money, allows to give simple exhaustive explanations, which are based on the idea that production and trade profits are due to an increase in generalized power. In the case of macro-profit, two ways of creating profit are investigated: the first is due to the non-closeness of the system (colonial method), the second is due to the creation of money within the system (financial method). Modern financial capitalism profits as a share of government-created fiat money. The resulting profit is stored in the form of non-monetary financial objects, which leads to an increase in generalized power. The powerful theory of exchange and money reveals the power nature of money and, consequently, of profit and this allows considering profit-phenomenon not only in a strictly economic, but also in a broader political and economic context, that is, in connection with power, state, political processes. The growth of capital means an increase in the generalized power of the capitalists. The widely practiced conversion of generalized power in the symbolic form of money into political power violates the democratic principles of the formation of the power system and therefore should be limited.

Competitiveness: A Strategic Resource-Based Approach To Business Management

Competitiveness is fundamental for the growth of a country’s economic sectors, and its analysis and evaluation should start at a microeconomic level, so this study aimed to determine the influence of strategic business management resources on competitiveness. The methodology used corresponds to a basic study, with a descriptive, explanatory and correlational cross-sectional design, using a census of 127 mypes in the agro-export sector of the Tacna Region, Peru. The main results conclude that strategic business management resources have a significant influence on competitiveness.

Toward the circular economy into the olive oil supply chain: A case study analysis of a vertically integrated firm

While the paradigm of circular economy (CE) and the processes of socio-technical transition have been broadly investigated at the theoretical level, understanding how the transition toward circular models can be implemented in practice is still limited. This contribution aims to provide in-depth and evidence-based insights on an emerging pathway for the operability of CE into the olive oil supply chain. A case study from the Apulia region (the leading olive oil producing area in Italy) is presented to show how an existing business model can be transformed into a circular one, and to what extent it can be replicated. The study focuses on a vertically integrated firm, in which a new industrial process has been introduced to manage olive pomace, which is one of the most important by-products obtained from olive oil extraction. The empirical analysis is built on the Circular Business Model Canvas (CBMC), which is conceived as a suitable theoretical and methodological tool to speed up the transition process toward CE at a micro-economic level. This analytical framework allows us to identify the interplaying elements that the firm combines to capture, create, and deliver value, as well as the relationships with the broader economic system. Particular attention is paid to two distinctive components of CBMC: material loops and adoption factors. Also, internal and external factors affecting the adoption of the new circular business model have been discussed by separating drivers and barriers of the transition process.

NEOCLASSICAL ECONOMIC THEORY: DOMINANT CONCEPTS

Neoclassical economic theory arose in the 70s of the XIX century, which proceeds from the principle of economic liberalism and the principle of free competition. In their research, neoclassicists study the behavior of an economic person and focus on the study of applied practical problems, use quantitative analysis and mathematics. Greater attention is paid to the problems of efficient use of limited economic resources at the microeconomic level. Neoclassical economic theory is characterized by several postulates common to many schools and trends. However, there is a wide range of neoclassical approaches to various problem areas of economic theory.

Evidence of the negative relationship between transaction costs and economic performance in G7+BRICS countries

The object of this research is the relationship between Transaction Costs and economic performance. Weak or unreliable institutions open space for corruption, generating a negative externality, increasing the economy's Transaction Costs, inhibiting doing business, and reducing economic growth. Although there is a broad debate about the negative relationship between Transaction Costs and economic performance, little is known about this relationship's strength and significance. This gap occurs because most Transaction Costs estimates are performed at the microeconomic level. Besides, the few estimates of countries' Transaction Costs at the national level are from different periods, which make any analysis unfeasible. The objective of this research is twofold. First, to introduce a comparative index of the Transaction Costs of the countries. Second, to analyze the relationship between the Transaction Costs Index and economic performance. The robustness analysis reveals that the Transaction Costs Index is reliable because the countries' average variation in the ranking is relatively low (1.5 positions), serving as an alternative to the Transaction Costs estimates. The research results show a significant (p-value=0.0054), strong, and negative (R=–0.746) correlation between the Transaction Costs Index and the Gross National Income per capita of G7+BRICS countries. BRICS countries and Italy have lower economic performance, and higher scores on the Transaction Costs Index, suggesting that these countries' institutions are more inefficient than other G7 countries. These results reinforce the current understanding of the negative relationship between Transaction Costs and countries' economic performance. Understanding the effects of Transaction Costs on business activity and, consequently, on economic performance is extremely important for governments to promote adjustments in the regulatory environment that encourage business activity.

СОЦІАЛЬНА ВІДПОВІДАЛЬНІСТЬ МЕДІА В УМОВАХ РОСІЙСЬКО-УКРАЇНСЬКОЇ ВІЙНИ

<p><strong><em>The purpose </em></strong><em>of the study is to characterize the trends of the development of social responsibility of the media.</em></p><p><strong><em>Research methodology</em></strong><em>. The effective operation of mass media as business projects is part of the development of the Ukrainian economy. The management of media business should be based on the concept of sustainable development proposed by G. Daly «Beyond growth. Economic theory of sustainable development». Corporate social responsibility is considered at the microeconomic level: corporate social responsibility and business social responsibility.</em></p><p><strong><em>The results</em></strong><em>. The article is devoted to the social responsibility of the media in the new crisis situation. Traditionally, the social responsibility of the media is considered in the context of working with the audience, compliance with professional standards in order to create a quality journalistic product, but the social responsibility of the media is also the provision of decent working conditions for media specialists. Models of social responsibility of business in society have several basic variants of corporate responsibility of business. The current situation in the field of media business has received new concepts of corporate activism and corporate social responsibility. The subject of the research is actualized in the context of changing the conditions of media business functioning during the war, creating a number of challenges for media communities. The modern media business suffered significant losses during the war, which affected the working and living conditions of media specialists.</em></p><p><strong><em>Novelty.</em></strong><em> The social responsibility of the media increased in the new crisis conditions, which were the beginning of the active phase of the Russian-Ukrainian war, the informational component of the war also increased, and Ukrainian media workers demonstrated solidarity and the ability to work for the benefit of public interests. The social standards of newsrooms have also undergone changes, emphasizing the social insecurity of media workers.</em></p><p><strong><em>Practical significance</em></strong><em>. The results of the research can be used in the process of studying communication courses, forming media reality of the specialties «Journalism», «Advertising and public relations», «Information affairs», as well as by media practitioners in issues of interaction with the audience.</em></p><p><strong><em>Key words</em></strong><em>: corporate social responsibility, mass media, social media, media reality, anti-discrimination practices, European democratic values, journalist's professional ethics.</em></p>