Abstract

To plan the company’s activities, it is necessary to have information about the future behaviour of its stakeholders. Such information can be obtained by simulating the decisions of the relevant economic subjects. In decision modelling it is necessary to take into account the fact that decisions of economic entities are influenced by such social regulators as social values and social norms, which in recent decades have undergone transformations influenced by the ideas of social responsibility. The purpose of the article is to improve the basic model of decision-making by taking into account its values and norms of social responsibility, as well as the characteristics of decision-maker’s relations with the respective counterparties. The results of the analysis. To achieve the goal, in the article it has been analysed the phenomena of social values, social norms and socio-economic relations, as well as their transformation influenced by the ideas of social responsibility. The following characteristics of relations between economic entities, as representations (one subject on the other) and attitude (one subject to another) are distinguished. The notion of social responsibility is considered in relation to decision theory. The definition of economic entities’ social responsibility is awareness of their influence on the welfare and sustainable development of society and taking into account the interests of society when making their economic decision. With reference to the results of the analysis, a decision-making basic model by subject A is proposed for choosing the parameters of a certain economic action taking into account social values and social responsibility standards: , , , , where:  – the number system of alternatives for the implementation of a given economic action; і – that alternative involves the interaction of subject A with the subject ;  – vector of estimations of і alternative on the criteria, which describe the consequences of the corresponding economic effect for subject A;  – the vector of assessments of і alternative on the criteria that describe the consequences of the corresponding economic impact on the environment and sustainable development of society;  – a vector of estimates of і  alternative on the criteria that describe the consequences of the corresponding economic effect for the subject ; – the vector of the values ​​of those characteristics of і  alternative, which are regulated by the rules of socially responsible behavior; – vector of expected parameters of the behavior of the subject , which characterize the representation of subject A to the subject ; restrictions  specify a set of alternatives that meet the standards of socially responsible behavior in society; restrictions  specify a set of alternatives that correspond to the socially responsible attitude of subject A to counteragents, which involves taking into account subject A of certain interests of entities ;  – utility function that describes the preferences of subject A for the consequences of economic action, both for him and for the environment and sustainable development of society. Conclusions and directions of futher researches. In the article, the phenomenon of social responsibility to business is considered in relation to the decision theory. Since the ideas of social responsibility influence upon the economic entities’ decisions through social values and social norms, the article proposes to improve the basic model of decision theory by taking into account values and norms of social responsibility in it. The proposed model focused to predict the economic entities’ decisions in the conditions of economy humanization, which is expressed in the subordination of the economic function to social goals. For the practical application of the proposed model, empirical studies are needed to determine the utility functions that describe the preferences of the decision-makers concerned.

Keywords: economic entities’ social responsibility, social responsibility of consumers, decision modeling, social values, social norms, relations of economic subjects

JEL Classification: С02, M14, M31, Z13.

Cite as: Potrashkova, L. (2017). Economic entities’ decision modelling fundaments adjusted for values and norms of social responsibility. Marketing and Management of Innovations, 4, 209-218. https://doi.org/10.21272/mmi.2017.4-18

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

References

1. Sustainable Selections: How Socially Responsible Companies Are Turning a Profit. www.nielsen.com. Retrieved from http://www.nielsen.com/us/en/insights/news/2015/sustainable-selections-how-socially-responsible-companies-are-turning-a-profit. html.
2. Kleiner, H.B. (2001). Sotsialnaia otvetstvennost biznesa: obschestvo i biznes v sisteme vzaimnykh ozhidanii [Social responsibility of business: society and business in the system of mutual expectations]. kleiner.ru. Retrieved from http://kleiner.ru/sotsialnaya-otvetstvennost-biznesa-obshhestvo-i-biznes-v-sisteme-vzaimnyih-ozhidaniy [in Russian]. 
3.  Novikova, R.A. (2012). Fenomen sotsialnykh i sotsialno otvetstvennykh investitsii v kontseptsii sotsialnoi otvetstvennosti biznesa [The phenomenon of social and socially responsible investments in conception of social responsibility of business]. Kultura narodov Prichernomoria – Culture of the people of black sea coast, 232, 199-202 [in Russian].
4.  Savicheva, E.Yu. (2011). Priznaki sotsialno otvetstvennoho povedeniia predprinimatelskikh struktur: k voprosu o definitsii katehorii «sotsialnaia otvetstvennost biznesa» [Signs of socially responsible behavior of enterprise structures : On the Definition of the Category of Social Responsibility of Business]. Rossiiskoe predprinimatelstvo – Russian Entrepreneurship, 8(1), 17-22 [in Russian].
5. Holovinov, O.M. (2014). Sotsialna vidpovidalnist biznesu: ukrainski realii i problemy [Social Responsibility of Business: Ukrainian Realities and Challenges]. Ekonomichnyi visnyk Donbasu – Economic Bulletin of Donbass, 2, 187-192 [in Ukrainian]. 
6. Bezchotnikova, S.V. (2012). Korporatyvna sotsialna vidpovidalnist: dialoh biznes – hromada [Corporate Social Responsibility: dialogue business – society]. Polihrafiia i vydavnycha sprava – Printing and publishing, 4, 51-59 [in Ukrainian].
7. Rais, S., & Goedegebuure, R. V. (2009). Corporate social performance and financial performance. The case of Indonesian firms in the manufacturing industry. Problems and Perspectives in Management, 7(1), 224-237.
8. Wu, W., & Keke, L. (2009). An empirical examination of the corporate social performance – the financial performance relationship in China based on the different measures perspective. International Journal of Networking and Virtual Organisations, 6(4), 389-403 [in English].
9. Varenova, D., Samy, M., & Combs, A. (2013). Corporate social responsibility and profitability: trade-off or synergy: Perceptions of executives of FTSE All-Share companies. Sustainability Accounting, Management and Policy Journal, 4(2), 190-215.
10. Тulchinskyi, H.L. (2011) Ot manipuliatsii i ekonomiki nedoveriia k sotsialnomu partnorstvu: PR kak Public Relations i Public Responsibility [From manipulation and distrust economy for social partnership: PR as Public Relations and Public Responsibility]. Proceedings from: Mizhnarodna naukovo-praktychna konferentsiia «Nauka ta osvita v suchasnomu universyteti v konteksti mizhnarodnoho spivrobitnytstva» – International Scientific and Practical Conference «Science and education in the modern university in the context of international cooperation». (pp. 242–249). Mariupol: MSU [in Russian].
11. Opokin, V. Sotsialnyi imidzh v strukture imidzha orhanizatsii [Social image in the structure of organization image]. www.marketing.spb.ru. Retrieved from: http://www.marketing.spb.ru/lib-comm/ pr/social_image. htm [in Russian].
12. Merriam-Webster’s Online Dictionary, 11th edit. www.merriam-webster.com. Retrieved from: http://www.merriam-webster.com/dictionary/responsibility 
13. Leontev, D.A. (1993). Ocherk psiholohii lichnosti [Essay on the psychology of personality]. Moscow: Smyisl [in Russian].
14. Stepin, V.S. (Ed.). (2010). Novaia filosofskaia entsiklopediia [New Philosophical Encyclopedia]. (Vols. 1-4). Moscow: Mysl [in Russian].
15. ISO 26000:2010 «Guidance on social responsibility». www.iso.org. Retrieved from https://www.iso.org/obp/ui/#iso:std:iso:26000:ed-1:v1:en.
16. Bowen, H. (1953). Social responsibilities of the businessman. New York: Harper & Row.
17. White, A.L. (2006). Business Brief: Intangibles and CSR. www.bsr.org. Retrieved from https://www.bsr.org/reports/BSR_AW_Intangibles-CSR.pdf.
18. Giddens, A., & Sutton, P.W. (2009). Sociology. Cambridge, UK ; Malden, MA : Polity Press. 
19. Fromm, E. (1976). To Have Or to Be? New York: Harper & Row.
20. Friedman, M. (1970) The social responsibility of business is to increase its profits. link.springer.com. Retrieved from: http://link.springer.com/chapter/10.1007%2F978-3-540-70818-6_14.
21. Frolov, S.S. (1994). Sotsiolohiia [Sociology]. Moscow: Nauka [in Russian].