EUROPEAN BUSINESS­PRACTICES OF CORPORATE SOCIAL RESPONSIBILITY: САSE STUDY Edited by professor L.P. Petrashko, associate professor O.V. Martyniuk Joint project of Jean Monnet Foundation and Vadym Hetman Kyiv National Economic University TRAINING «European Business-Practices of Corporate Social Responsibility» № 553110-EPP-1-2014-1-UA-EPPJMO-MODULE Lifelong Learning Programme Grant agreement № 2014-1786 / 001-001 Lifelong Vadym Hetman Learning Kyiv National Programme Economic University Kyiv 2019 УДК 005.35:334.78(477:4-6ЄС):005.52(083.9) Рецензенти Т. М. Циганкова, д.е.н., проф., завідувач кафедри міжнародної торгівлі і маркетингу (Київський національний економічний університет ім. В. Гетьмана) С. О. Тульчинська, д.е.н., проф., професор кафедри економіки і підприємництва (НТУУ «КПІ ім. Ігоря Сікорського») В. Ю. Худорлей, д.е.н., проф., ректор (ПВНЗ «Міжнародний науково-технічний університет імені академіка Юрія Бугая») Рекомендовано до друку Вченою радою КНЕУ Протокол № 5 від 11.04.2019 European business-practices of corporate social responsi- bility: саse study [Electronic resource] / Edited by professor L. Petrashko, associate professor O. Martyniuk. — Kyiv: KNEU, 2019. — 224, [4] p. ISBN 978-966-926-294-3 The publication is prepared for the 30th anniversary of Jean Monnet Foundation. The practicum book «European business-practices of corporate social responsibility: саse study» is a collection of cases, which was created by a group of authors participating in the Joint Project «European Business Practices of Corporate Social Responsibility» between Jean Monnet Foundation and the SHEI «Kyiv National Economic University named after Vadym Hetman» (№553110-EPP-1-2014-1-UA- EPPJMO-MODULE, Academic coordinator – Doctor of Economics, Professor Liudmyla Petrashko, co-funded by the Erasmus+ Programme of the European Union «Lifelong Learning») The project was implemented with the participation of 45 authors, who represent 12 Ukrainian universities. The main aim is to provide a platform for dissemination of best practices of business practices of corporate social responsibility in the corporate sector of Ukraine. You will learn how companies can prosper and develop, simultaneously playing an important role in solving the global problems such as climate change, inequality of income and social injustice. The emphasis is made on the specific corporate solutions regarding advanced innovations in the technology sphere, liberal democratic values, including gender equality and human freedom, environmental responsibility and economic success at the global level. The collection of case studies is addressed to the students of economic specialties in the universities — to the future corporate elite, academic teachers and representatives of local self-governments, civil society and socially responsible business. УДК 005.35:334.78(477:4-6ЄС):005.52(083.9) The materials are printed in the author's wording. The authors of the publications are responsible for the authenticity of the facts, their own names, geographical names, quotations, statistical and other information. Розповсюджувати та тиражувати без офіційного дозволу КНЕУ заборонено © L. Petrashko, O. Martyniuk, 2019 ISBN 978-966-926-294-3 © KNEU, 2019 Contents Introduction .............................................. 7 Panchenko Y., Kyriacova M. NESTLÉ CREATES THE SHARED VALUES .................. 10 Petrashko L., Petrashko P. COMPARISON OF CORPORATE SOCIAL RESPONSIBILITY OF NESTLE AND ROSHEN: MYTH OR REALITY? ............ 27 Siva N., Bilobrova T. LET’S CREATE THE EQUAL SOCIETY TOGETHER .......... 41 Ohrimenko O. SOCIETY EXPECTS THE TECHNOLOGICAL ANSWERS ON ENVIRONMENTAL QUESTIONS ........................ 48 Artemenko L. CORPORATE RESPONSIBILITY POLICY ................... 52 Paentko T., Kotina H., Stepura M. HELPING IS EASY ....................................... 61 Kravchenko T. MAIN PRINCIPLES OF RESPONSIBLE MARKETING ......... 65 Kavtysh O. GROWING THROUGH RESPONSIBILITY ................... 72 Reshetniak T. THE AIR FRESHENER WITH «POLITICAL FLAVOR» ......... 82 Ivanova T. CSR: BANKERS STAND FOR! .............................. 90 Dziahar H., Shmatova Y. THE BEAUTY AND FASHION OF CORPORATE ENVIRONMENTAL RESPONSIBILITY ....... 96 3 Herneho Y. CORPORATE SOCIAL INVESTMENTS AS A SOLUTION FOR SUSTAINABLE DEVELOPMENT ....... 101 Hrushchynska N. SAFETY OF WASTE DISPOSAL TECHNOLOGIES ........... 105 Plotnikova M. INNOVATIVE PRACTICES OF THE CITY LIBRARIES ........ 113 Romanova L., Mohylevska O. SOCIAL MARKETING — SUSTAINABLE DEVELOPMENT PRACTICES ........................................... 122 Zhyhlei I. CORPORATE TRENDS OF HR-REFORMATION ............. 127 Shkoda T., Vasylyk I. CSR-PRACTICES OF THE NATIONAL ASSOCIATION OF LAWYERS OF UKRAINE ............................. 138 Stepanenko O., Naumenko I. THINKING BROADLY. ACTING GLOBALLY. HELPING PEOPLE ...................................... 144 Yatsenko O., Iatsenko O. ROUTES 2020 — DIRECTIONS FOR SUSTAINABLE DEVELOPMENT ........................................ 148 Shtanko L., Minenko A. TEENAGERS REQUIRE «ADRENALINE» ................... 159 Khliebnikova N., Kobyzska A., Vozhdaienko V. PRACTICES OF THE SOCIAL ENTREPRENEURSHIP ........ 164 Kulaha I., Tkachenko O. FILLING WITH POSITIVENESS ON THE WAY OF LIFE! ..... 170 Zhyber T. STATE POLICY IMPACT ON THE SOCIAL RESPONSIBILITY OF BUSINESS IN UKRAINE .............................. 186 Titova O., Veremiienko T. HONESTY PARADOX ................................... 195 4 Zakhozhai K., Ivanchuk O. POTENTIAL OF NGOs (NON-PROFIT PUBLIC ORGANIZATIONS) IN THE SOCIAL DEVELOPMENT OF COMMUNITIES ..................................... 205 Martyniuk O. OPPORTUNITIES AT THE BOTTOM OF THE SOCIAL PYRAMID .............................. 212 Petrashko P., Kyian Y., Novyk Y. CODE OF BUSINESS BEHAVIOR AS THE BASIS FOR FORMATION OF COMPETITIVE ADVANTAGES OF A COMPANY ........................................ 219 5 To the reader: Mankind is entering the new age, which sets for each of us a lot of questions: • Is there a common definition of «sustainable development»? • Does top-management have to assume the special responsibili- ties for free and fair capitalism? • How to protect human rights of intellectual capital of a com- pany? • What are «responsible investment» and the mechanisms for its implementation? • How to switch to alternative (especially renewable) types of energy? • How corporate responsible practices can improve the social wel- fare? • Is there a relationship between sustainable business strategies and business profitability? And what is it like? And, unfortunately, there are no correct direct answers. You, as the reader, are offered a number of business cases, which are demonstrating various practices of Corporate Social Responsibili- ty (CSR) in the environmentally-safe way of economic development. I hope that the author’s ideas will find support and would inspire responsible decisions in the future! Liudmyla Petrashko Conceptor and Coordinator of the project «European business-practices of corporate social responsibility: саse study» / [email protected] / 6 Introduction The rethinking of capitalism and its paradigm transforms mar- ket relations, the business environment and person in the context of seeking value orientation: from material well-being to trust and joy for the purpose of sustainable development. 15—20 years ago in the cor- porate sector of the economy, nobody would have believed that no- wadays, for most corporations, it would be common practice to track and report publicly on the effective use of water and energy, the amount of carbon dioxide emissions, etc. The most successful companies define their mission as a harmo- nious balance between the creation of social and emotional values and the profit for their investors. They are trying to do good and strive to bring joy, love, benevolence and sincerity to people. The proof of this thesis is the results of a six-year study by profes- sors at the Stanford University School of Business (USA) D.Collins and D.Porras «Constructed Forever: The Success of Companies with Vision.» It contains the investigation of the laws of the centuries-old historical development of well-known and successful companies with vision, which happen to be the companies of widely recognized indus- try leaders who have long and fundamental history of their impact on the environment. The list of survey respondents contains the following companies: Boeing, Walmart, 3M, Hewlett-Packard, Sony. The total number of companies surveyed is 18 that meet the following criteria: industry leadership, wide recognition by the business community, fundamental contribution to the world’s economic development, managed by sev- eral generations of executives, survived several life cycles of goods and services, established before 1950. System analysis of companies that have vision and their compari- son with competitors allowed to highlight the underlying causes of long-term leadership of such companies. Namely, the ability to estab- lish high standards of values and effectiveness, the ability to initiate the continual internal changes that inspire. Vision-based companies share eternal values, long-term and never-ending goals, business strat- egies and developing day-to-day responsible practices. According to researches, investing $ 1 in a company with vision in 1926 would have allowed to gain $ 6,356 in 1990, which is 6 times 7 higher than the similar transaction in a company from the comparison list ($ 955). However, the key efficiency multipliers for comparable companies are higher