Modern Economics (Jan 2018)
ASSESSMENT OF SOCIO-ORIENTED POLICY IN BANKING INSTITUTIONS OF UKRAINE
Abstract
Introduction. In today’s globalized conditions, the question of socially responsible business and the formation of an appropriate concept and policies for managing it are more relevant. Scientists are investigating this issue in two aspects, namely, from a theoretical and practical point of view. The first aspect is the study of the essence of CSR, the conduct of entrepreneurial activity, the functioning mechanism of the market principles in this concept, the definition of the place of social orientation in modern conditions. The second aspect is the study of practical positions, the separation of this concept from the standpoint of warning and risk management, assessment of the level of social responsibility and summing up the rating, summarizing all the results, as well as the establishment of a standard that will regulate such relationships. But, in our opinion, the implementation of such socially-oriented moments is not possible without identifying a certain number of indicators, reflecting the real situation and the impact of social factors on the banking institutions. This explains the relevance of studying the assessment of socially-oriented policies of banking institutions. Purpose. The purpose of this article is to determine the approaches to the assessment of socially-oriented policies of banking institutions, as well as to determine the place of rating assessment in the current conditions of the functioning of institutions and organizations. Results. The article describes approaches of socially-oriented banking policy in Ukraine. A quantitative approach is drawn, which directly includes the assessment of the level of social investment through the conduct of socially responsible activities by banking institutions. The qualitative approach according to which social reports and social ratings are compiled is investigated. The social indicators that influence the formation of a socially oriented political management system by business, in particular banking institutions, are calculated. Conclusions. Today, among the existing approaches to assessing the formation of corporate social responsibility of banking institutions, there is no single methodology and approach. Those methods that exist are recommended. They do not really have practical use by banking institutions of Ukraine, all this is connected to the absence of certain norms and requirements of the current legislation. Therefore, in our opinion, it would be advisable, in the context of banking institutions, to introduce methodological recommendations for the assessment of CSR at the legislative level, the accomplishment of which will be mandatory for all banking institutions and exclude subjective nature.
