Potential of Corporate Social Responsibility for Community Development

<p><em>Although recently there have been a constant growth in social practices of business organisations, there is still no precise answer whether these practices can lead to social value creation and whether they are efficient enough. Thus this paper analyses the potential of business to contribute to economic and social welfare in a region of its presence through corporate social responsibility (CSR). The criteria for CSR activity are elaborated with the help of theoretical models. After studying historical data the main characteristics of Russian model of CSR are outlined. On the basis of social reports of Russian companies the methods for impact on local community were systematized. Expert surveys were held as an empirical study with the aim to identify day-to-day problems in the process of social practices implementation. As the main result of this paper concludes that the achievement of the best results in the creation of public goods at the regional level of CSR is possible with a systematic approach, which involves long-term planning, social impact assessment and continuous interaction with the local community. The need for stimulation CSR by the government is accentuated as well and as a consequence this paper provides some practical recommendations.</em></p>