Corporate social responsibility as a strategy to manage common resources

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Corporate social responsibility as a strategy to manage common resources

Journal Title: Український соціум - Year 2015, Vol 4, Issue 55

Abstract

The article investigates the potential of institutional corporate social responsibility (CSR) in addressingthe management of common resources. The purpose of the article is to suggest effective mechanisms formanagement of common resources based on the synthesis of modern theoretical approaches to the analysis of thecommon resources nature and corporate social responsibility (CSR) institutional rules. Analysis of the currenttheoretical approaches to the common resources management shows that under certain institutional conditions theformation of behavioral patterns is possible when common resources are used and reproduced optimally and takeinto account the interests of individual members of society and society as a whole. According to E. Ostrom, the mainparameters within which successful management of common resources should take place, include: clearly definedboundaries for membership in the community of resource users; congruent rules (compliant with the legislation) forthe use of common resources;platform for collective choice; monitoring compliance and accountability; theavailability of sanctions for non-compliance with the rules (i.e. the destruction of the institution); effectivemechanisms for conflict resolution. It is proved that common resources should be treated as a common good notonly for the community that uses them today (people of the current generation), but also as a resource for presentand future generations. This understanding of the common resources’ nature brings out the necessity to view theproblem in the context of the sustainable development paradigm and of the institutional forms that make it possibleto achieve sustainable development goals. Current practices of social interaction give grounds for the conclusionthat the best strategy for achieving sustainable development goals, and the objectives of the common resourcesmanagement is a system of corporate social responsibility (CSR), which is defined as the organization’s responsibility for influence of its decisions and activities on society and the environment that is shown intransparent and ethical behavior that contributes to sustainable development (including health and public welfare)and takes into account the expectations of a wide range of stakeholders. Given thestated mission and objectives,corporate social responsibility can be viewed as a strategy and a system of institutional mechanisms to solve the«tragedy of the commons» of the world as a common resources (or resource package) for human life. In theframework of corporate social responsibility institutional norms are developed that enable implementation ofcommon resource management parameters in practice. Development of the efficient system of corporate socialresponsibility is intended to provide mechanism for addressing numerous social and economic issues and can beconsidered as the optimal strategy for the management of social common resources. Paper suggests algorithm forCSR application for management of common resources.

Authors and Affiliations

Nataliia Suprun, Oleksii Gamanyuk

Keywords

corporate social responsibility. Elinor Ostrom. common resources. sustainable development. stakeholders. common resources management

EP ID EP481960
DOI -
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