The article analyses certain forms of business support, including grant support at the expense of public funds. In the context of constant instability and uncertainty, businesses are actively seeking alternative financial resources to carry out their activities. One of these external sources is the attraction of funds from the state and local budgets. Such support is especially important for small and medium-sized businesses. In its turn, the State (through public authorities or specialised institutions), by providing financial (grant) support, has the right to require these companies to comply with the rules and fulfil additional obligations in the context of social behaviour. It is noted that the State does not currently make full use of these tools. Given the rather difficult situation of business, the author proposes to introduce a mixed model of corporate social responsibility in Ukraine, where the principle of voluntariness will be ensured (business will independently decide whether and to what extent to adhere to high standards of socially responsible behaviour), the State will create conditions for encouraging business to behave in this way, and on the other hand, the State will carry out stricter regulation of certain types of activities. Based on the results of the study, proposals have been developed to encourage business entities to implement the principles of socially responsible behaviour. It is noted that in grant competitions, the compliance of a potential grantee with high standards of good conduct is important. The author substantiates a change in approaches to the evaluation of project applications of business entities in grant competitions. It is proved that the state, through the grant support system, should give priority and further fund only projects of businesses that implement socially responsible behaviour. It is proposed to tighten the requirements for potential grantees who are to be supported at the expense of state and local budgets. The author emphasises the expediency of introducing a special mechanism for the selection of suppliers and service providers for grant recipients, which will take into account the established integrity policy.
Read full abstract