SOCIAL RESPONSIBILITY OF BUSINESS IN GEORGIA: DEVELOPMENT AND PROBLEMS

Abstract

In the recent period the problems of social responsibility of business and its role in socioeconomic development of the countries are widely discussed all over the world. Currently international conferences, forums and numerous other public events dealing with the issues of social responsibility of businesses are arranged in all parts of the world. Goal of this research is assessment, how far this trend is reflected in business practices of Georgian companies. Currently, in Georgia, all efforts are oriented towards creation of civilized business and favorable business environment. In this situation, it is decisive that the necessary element of these efforts was adoption of ethical principles and social responsibility into the practice of business relations.

Article provides discussion of wide circle of issues related to participation of businesses in the programs of corporative social responsibility, trends of development of partnerships between business sector, state and NGOs.

In Georgia, many companies are engaged in charity activities; they participate in sponsoring of socially significant projects, they publish social reports. In December 2006, in Georgia, UN Global Compact was launched and with its support the network of socially oriented Georgian companies was created. In many companies the codes of conduct and ethics are adopted. They describe ethical principles and norms providing basis for the activities of all employees of the company – from the specialists to top managers.

In result of researches we have identified three key factors limiting SRB development in Georgia: high taxes, absence of benefits and availability of soft loans for the socially responsible organizations; lack of understanding of significance of socially responsible behavior. In Georgia, there is no legislative framework for charity activities. Government’s policies with respect of charity remain unclear. In realization of their charity work, the companies still frequently face significant bureaucratic obstacles.

In the end of the article there is mentioned that the state should make its best efforts to stimulate development of SRB in Georgia – tax exemptions, cheap credits for social projects etc.

State support to development of social responsibility of business in Georgia, being the important instrument for sustainable development of the companies in long run, would promote activation of social investments of the companies, expansion of the platform of partnership between the state and business and make significant contribution to creation of the new sources of sustainable economic growth and finally, would facilitate achievement of one of the key priorities of Georgia – integration into the European structures and market.

DOI: http://dx.doi.org/10.5755/j01.em.18.2.3655