The Concept of Social, Environmental, and Economic Behavior of Corpo- Rates

The article analyzes the institutional relationships between corporations and their main stakeholders, various social structures and regulatory bodies. New principles of corporate governance are identified in order to create favorable conditions for sustainable growth, ethically and environmentally responsible behavior of companies. To achieve the effectiveness of CSR, the adoption of ethical codes should develop in the direction of consolidating the obligation to engage in socially responsible behavior that concerns all areas of the company’s activity: economic (the ability to generate income, profit and employment), social (the ability to guarantee conditions of well-being, fair and favorable growth in accordance with human and labor rights) and environmental (the ability to guarantee the reproducibility and quality of natural resources). The nature of corporate social responsibility justifies the theoretical prospect of its voluntary compliance, but the self-regulatory approach has demonstrated many limitations, ranging from a completely limited ability to resist predatory behavior. Therefore, effective CSR should involve corporate governance reform and regulatory intervention to make it mandatory and ensure control over the process. This involves establishing legal restrictions on various areas of a company’s activity: strengthening rules aimed at bribery, corruption of foreign companies, tax evasion, unfair or abusive labor practices, and other socially irresponsible business practices. The key limitations of CSR have historically been explained by issues of power and the interests of corporations trying to avoid government regulation. CSR is often used to secure their own goals by political parties. However, corporations themselves can influence government regulatory policy through lobbying.