Corporate pensions and prospects for its development in Ukraine

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Corporate pensions and prospects for its development in Ukraine

Journal Title: Український соціум - Year 2018, Vol 2, Issue 65

Abstract

Strengthening of corporate social responsibility is the global trend of social development from the second half of the last century. Such strengthening has become a response to the stakeholders (owners, management and personnel, society and local communities, other interested groups) pressure and as the result of the scientific knowledge evolution, as well as approaches and practices of corporate governance embodied in the concept of strategic management. Corporate pensions is measure of the corporate social responsibility with the goal to increase internal resources corporations through the formation of a higher level of staff’s trust and loyalty, improvement of the moral climate in the team, development of positive motivation, etc. An additional factor of the development of corporate pension has been the introduction of multi-component pension models in many countries, the basic pillar of which is non-government pensions. According to numerous researches corporate pensions are of particular importance in low and middle income countries. In such countries corporate pensions can effectively supplement other basic elements of the pension system, to provide acceptable replacement rates and to restrain fiscal expenditures. In Ukraine employers rarely include the retirement component in their own social packages and apply it in corporate governance. Such unclaimed corporate pension provision is explained by the fact that salaries are low, unemployment rate is high, etc. Employers usually use a poor arsenal of personnel management tools (primarily improvement of labor assessment and wage increases). The economic association of Ukraine with the European Union can give impetus to corporations to change basic approaches in the management organization and reorientation to provide competitive advantages in the long-term prospective. Implementation of the strategic management concept will involve introducing qualitative changes in the policy of personnel management, integrating the principles of corporate social responsibility into its own corporate strategy. Increased competition for labor resources, caused by, in particular, the reduction of the of economically active population, strengthened labor migration to other countries, etc., and will force corporations to pay more attention to corporate pension plans, which are the best way to retain employees and attract new ones.

Authors and Affiliations

Serhii Zubyk

Keywords

corporate pension. strategic management. stakeholder theory. corporate social responsibility. social package. multipillar pension system. voluntary retirement savings. pension contributions

EP ID EP485042
DOI -
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