Corporate Social Responsibility as a factor of competitiveness of the company

<p>Nowadays many companies take into account social and environmental issues of business due to increased competition, demands and expectations of governments, as well as globalization of the economy. It is not enough for companies to maximize profit only, it is necessary to form a competitive advantage. The involvement of Russian companies into social and environmental issues is low. A number of studies examine the relationship between corporate social responsibility and competitiveness; most of them highlight positive impact of social responsibility on the formation of competitive advantage. The number of Russian research on this topic is low. This study helps to understand the peculiarities of implementing the principles of corporate social responsibility in Russia concerning company proven on the world market. The purpose is to determine how CSR affects competitiveness of companies in Russian conditions. The objectives are to determine the nature of the concepts of &quot;corporate social responsibility&quot;, &quot;competitiveness&quot; and their components, factors, etc., identify types of influence of CSR on competitiveness, analyze legal, social, economic and cultural factors and ascertain the role of CSR as a factor in the competitiveness of a particular company . Due to a difficulty to obtain quantitative data on the impact of CSR on the competitiveness of the company, qualitative research is the most appropriate method of research. The interview is conducted with the managers of the company in order to determine the perception and understanding of social responsibility, the types and nature of programs. It is necessary to find out whether corporate social responsibility is the part of strategy and what effect it has on the competitiveness. Based on the interviews, employees were offered a questionnaire in which they were asked to evaluate the components of corporate social responsibility, as well as their effect. СSR for Russian business is a relatively new concept, there is no comprehensive understanding and assessment of the significance among businessmen. However, large companies develop social responsibility at a strategic level, publication of non-financial reporting is common. The main factors that hinder the implementation of CSR in Russia are low pressure from consumers and media, undeveloped civil society and legal system, as well as lack of political support. Strategic approach is becoming increasingly important for the competitiveness of enterprises. It can bring benefits in terms of improving the image and reputation of companies, relationships with customers and other stakeholders, risk management, cost savings, access to capital, human resources and innovation capacity. The main conclusion of practical research is that corporate social responsibility can be a source of competitive advantage and create value for society, because it is part of the company&#39;s strategy, it takes into account interests of all stakeholders and is associated with the most important aspects of its activities. The main effect of responsible behavior is strengthening reputation, crucial for the company. Thus, the main recommendations are to publish non-financial reports, implement sustainability standards, and increase involvement in community life and interaction with partners. This should take into account specific Russian conditions and requirements in order to create shared value for the company and society.</p>