Formation of social responsibility of large agricultural land users in Ukraine

Economic Annals-ХХI: Volume 168, Issue 11-12, Pages: 48-52

Citation information:
Yatsiv, I., & Kolodiichuk, V. (2017). Formation of social responsibility of large agricultural land users in Ukraine. Economic Annals-XXI, 168(11-12), 48-52. doi: https://doi.org/10.21003/ea.V168-10


Ihor Yatsiv
D.Sc. (Economics),
Associate Professor,
Vice-rector,
Lviv National Agrarian University
1 V. Velykyi Str., Dubliany, Zhovkva district, Lviv region, 80381, Ukraine
igyatsiv@ukr.net
ORCID ID: http://orcid.org/0000-0002-2370-6351

Volodymyr Kolodiichuk
D.Sc. (Economics),
Associate Professor,
Head of the Department,
Professor of the Department of Management named after Prof. Ye. V. Khraplivy,
Lviv National Agrarian University
1 V. Velykyi Str., Dubliany, Zhovkva district, Lviv region, 80381, Ukraine
V-A-K@ukr.net
ORCID ID: http://orcid.org/0000-0003-2757-6299

Formation of social responsibility of large agricultural land users in Ukraine

Abstract. Introduction. Strengthening of the positions of large and very large agricultural enterprises, employing large area of lands, is one of the characteristics of the Ukrainian agricultural sector. This raises fears concerning negative social consequences of the process. Improvement of the agrarian production model requires application of high standards of social responsibility in the activity of large land users. The purpose of the research is to propose instruments to evaluate social responsibility of agricultural enterprises, describe peculiarities and trends in the formation and development of social responsibility of large agricultural land users, basing on such instruments. Results. The article proves a dependence of social expenses by agricultural enterprises on their land use. The authors give proposals concerning application of the criteria of evaluation of some forms of social responsibility by agricultural enterprises and determine positive and negative social consequences of large agricultural land users’ performance according to the criteria. The work confirms higher social responsibility of large agricultural enterprises established with participation of foreign capital, their positive impact on the formation of high standards of social responsibility in the branch. The authors of the article describe problems of information supply for the analysis of social responsibility and stress reasonability to introduce voluntary social reporting by business entities. Conclusions. The study of statistical reports of agricultural enterprises has helped to evaluate their social responsibility according to the following criteria: maintenance of an adequate remuneration level, responsibility in the organisation of land lease, ecological responsibility through the formation of parameters of their economic activity, creation of job positions, submission of objective financial reports, etc. High social responsibility supports existing large agricultural enterprises. This, however, does not preclude the need to restrict their growing land use and to deprive them of the right to certain elements of state support which is rendered to smaller agrarian producers.

Keywords: Agricultural Enterprises; Social Responsibility; Land Use; Agroholdings; Land Lease

JEL Classification: M14; Q12; Q15

DOI: https://doi.org/10.21003/ea.V168-10

References

  1. Dorosh, O. S., & Kupriianchyk, I. P. (2016). Role of socio-economic and institutional component in the formation and functioning of agricultural holdings in Ukraine. Zemleustrii, kadastr i monitorynh zemel (Land Management, Cadastre and Land Monitoring), 3, 12-19 (in Ukr.).
  2. Zalizko, V. D. (2013). Influence of the agroholdingization of farms on the socio-economic development of rural territories. Ekonomika Ukrainy (Economy of Ukraine), 6, 71-78 (in Ukr.).
  3. Lupenko, Yu. O., & Kropyvko, M. F. (2013). Agroholdings in Ukraine and augmentation of social impact of their activity. Ekonomika APK (Economy of the AIC), 7, 5-21 (in Ukr.).
  4. Mohylnyi, O. M., & Khodakivska, O. V. (2017). Impact of agricultural holdings on the development of the agricultural sector of Ukraine. Ekonomika ta derzhava (Economy and State), 6, 4-9 (in Ukr.).
  5. Moroz, O. V., Semtsov, V. M., & Kukel, H. S. (2015). Agriholding modeling of the development of agriculture and rural areas of Ukraine. Ekonomika ta derzhava (Economy and State), 12, 62-66 (in Ukr.).
  6. Chebotarov, V. A. (2015). Fundamentals and directions of improving organizational and economic mechanism of agricultural holdings. Formuvannia rynkovykh vidnosyn v Ukraini (Formation of Market Relations in Ukraine), 4, 103-108 (in Ukr.).
  7. Boehlje, M., Akridge, J., & Downey, D. (1995). Restructuring agribusiness for the 21st century. Agribusiness, 11(6), 493-500.
    doi: https://doi.org/10.1002/1520-6297(199511/12)11:6<493::AID-AGR2720110602>3.0.CO;2-G
  8. Hartmann, M. (2011). Corporate social responsibility in the food sector. European Review of Agricultural Economics, 38(3), 297-324.
    doi: https://doi.org/10.1093/erae/jbr031
  9. Heyder, M., & Theuvsen, L. (2012). Determinants and effects of corporate social responsibility in German agribusiness: A PLS model. Agribusiness, 28(4), 400-428.
    doi: https://doi.org/10.1002/agr.21305
  10. Luhmann, H., & Theuvsen, L. (2017). Corporate Social Responsibility: Exploring a Framework for the Agribusiness Sector. Journal of Agricultural and Environmental Ethics, 30(2), 241-253.
    doi: https://doi.org/10.1007/s10806-017-9665-8
  11. Mazur-Wierzbicka, E. (2015). The application of corporate social responsibility in European agriculutre. Miscellanea Geographica, 19(1), 19-23.
  12. Poetz, K., Haas, R., & Balzarova, M. (2013). CSR schemes in agribusiness: Opening the black box. British Food Journal, 115(1), 47-74.
    doi: https://doi.org/10.1108/00070701311289876
  13. Ratajczak, M. (2014). The implementation of selected elements of CSR concept on the example of agribusiness enterprises from Warmia and Mazury. Management, 18(1), 109-123.
    doi: https://doi.org/10.2478/manment-2014-0009
  14. Tallontire, A., & Greenhalgh, P. (2005). Establishing CSR drivers in agribusiness. Final Report for Foreign Investment Advisory Service International Finance Corporation & World Bank. Natural Resources Institute, Kent.
    Retrieved from http://siteresources.worldbank.org/EXTEXPCOMNET/Resources/2463593-1213887855468/74_Africa_CSR_in_agribusiness_2005.pdf
  15. Walter, S., & Siegi, P. (2003). Corporate ethics as a factor for success – the measurement instrument of the University of Agricultural Sciences (BOKU), Vienna. Supply Chain Management: An International Journal, 8(2), 116-121.
    doi: https://doi.org/10.1108/13598540310468715
  16. Kriukova, I. O. (2016). Implementation of social responsibility standards in practice of agribusiness subjects in Ukraine. Ekonomichnyi forum (Economic Forum), 4, 257-263 (in Ukr.).
  17. Hnatieva, T. M., & Nikoliuk, O. V. (2014). Influence of social responsibility of business on competitiveness of agricultural enterprises. Visnyk ­Chernihivskoho derzhavnoho tekhnolohichnoho universytetu. Seriia: Ekonomichni nauky (Bulletin of Chernihiv State Technological University. Series «Economics»: scientific collection), 4, 151-157 (in Ukr.).
  18. Kachala, T. M., Finahina, O. V., & Pankova, L. I. (2014). Formation of the institute of social responsibility taking into account possibilities of social potential of a society. In G. G. Pivniak (Ed.), Social responsibility of government, business and citizens. Vol. 2, (pp. 121-128). Dnipropetrovsk: National Minig University (in Ukr.).
  19. Ihnatenko, M. M. (2015). Planning and forecasting of social responsibility of economic subjects of agrarian sphere of economy. Agrosvit (Agrarian World), 17, 31-37 (in Ukr.).
  20. Yazliuk, B. O., Shandruk, S. K., & Huhul, O. Ia. (2017). Social responsibility of economic entities: economic nature and essence. Naukovyi visnyk Polissia (Scientific Bulletin of Polissia), 9(1), 119-127.
  21. State Statistics Service of Ukraine (2017). The Statistical Yearbook «Agriculture of Ukraine» for 2016.
    Retrieved from http://www.ukrstat.gov.ua (in Ukr.)
  22. Statistics Poland (2017). Characteristics of agricultural holdings for 2016. Warsaw: The Central Statistical Office.
    Retrieved from http://stat.gov.pl (in Polish)
  23. Yermolenko, A., Lazorenko, O., Viedrov, O., Bauman, Yu. et al. (2016). Social responsibility as the main value of institutionalization of modern society. Kyiv: Naukova dumka (in Ukr.).
  24. Statistics Poland (2017). The Statistical Yearbook of Agriculture 2016. Warsaw: The Central Statistical Office.
    Retrieved from http://stat.gov.pl (in Polish)
  25. Cabinet of Ministers of Ukraine (2017, June 7). Some issues of improvement of management in the field of use and protection of agricultural lands of state ownership and their disposal. Strategy Resolution.
    Retrieved from http://zakon3.rada.gov.ua/laws/show/en/413-2017-%D0%BF/paran12#n12

Received 19.10.2017