Abstract

In modern conditions of the development of globalization processes, any advantages are important for each company in the competitive struggle for the consumer. One of them is the implementation of corporate social and environmental responsibility measures and taking into account its practices in the formation of the company’s competitive strategy. The study considers the issue of mechanisms for implementing corporate social and environmental responsibility in companies. The main purpose of the research is to determine corporate social and environmental responsibility role in ensuring the company’s competitiveness and to substantiate the methodology of corporate social and environmental responsibility integrated assessment based on the indicators that allow for the needs of stakeholders to be taken into account. It is confirmed that an effective mechanism for corporate social and environmental responsibility implementation by companies is to take into account its practices in the formation of a competitive strategy. The authors analysed the companies’ competitiveness indicators that are determined by corporate social and environmental responsibility. It was suggested to use the 4P-complex of corporate social and environmental responsibility for assessing the competitive advantages of the company. It synthesizes such components as follows: People, Planet, Profits and Partnership. These components are characterized by relevant indicators. To assess the effectiveness of implementing the corporate social and environmental responsibility principles into the company’s competitive strategy, the authors suggest using the integral corporate social and environmental responsibility index, which synthesizes the assessment of company’s corporate social and environmental responsibility by indicators of four components – 4P-complex. The relationship between the integral corporate social and environmental responsibility index and indicators of individual components is proposed to be determined using the geometric average.

Keywords: company, competitiveness, components, indicators, corporate social and environmental responsibility, stakeholders, strategy.

JEL Classification: F12, L14, M14, Q56.

Cite as: Hakobyan, N., Khachatryan, A., Vardanyan, N., Chortok, Y., & Starchenko, L. (2019). The implementation of corporate social and environmental responsibility practices into competitive strategy of the company. Marketing and Management of Innovations, 2, 42-51. https://doi.org/10.21272/mmi.2019.2-04

This work is licensed under a Creative Commons Attribution 4.0 International License

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