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Interacción y Perspectiva Dep. Legal pp 201002Z43506

Revista de Trabajo Social ISSN 2244-808X

Vol. 14 N

Julio-septiembre

ARTÍCULO DE INVESTIGACIÓN

La política social en la organización: problemas y tendencias

DOI: https://doi.org/10.5281/zenodo.10909412

Halyna Lopushniak*, Iryna Verkhovod**, Roman Lipskyi***, Olena Gorokhovska****,

Eduard Kliuienko****

Resumen

El propósito del estudio es desarrollar pautas para la implementación de la política social

en las organizaciones ucranianas basadas en las tendencias actuales. El artículo utiliza

métodos de investigación que permitieron alcanzar el objetivo. El artículo distingue 4

tipos de política social en las organizaciones: ambiental, ética, filantrópica y económica.

Se determina que la política social de la organización debe basarse en 5 ejes principales:

ética empresarial; transparencia; Relaciones laborales; derechos humanos; inversión del

gobierno. Se investigan los temas problemáticos de la implementación e implementación

de la política social: la falta de un marco claro para la implementación y medición de

iniciativas; falta de transparencia y rendición de cuentas; dificultades para equilibrar las

consideraciones económicas a corto plazo con la necesidad de iniciativas de política social

sostenibles a largo plazo. El autor presenta 6 tendencias recientes en el campo de la

política social en la organización: voluntariado virtual para empleados; apoyo a las

pequeñas empresas; paisajismo; igualdad, inclusión y diversidad; localización del

modelo de negocio. El estudio concluye que, para implementar políticas sociales

efectivas, es importante que las organizaciones colaboren y desarrollen pautas y reglas

claras para las iniciativas de responsabilidad social.

Palabras clave: política social, responsabilidad social, transparencia, rendición de

cuentas, ética empresarial.

Abstract

Social policy in the organization: problems and trends

The purpose of the study is to develop guidelines for the implementation of social policy

in Ukrainian organizations based on current trends. The article uses research methods

that allowed to achieve this goal. The article allocates 4 types of social policies in

organizations: environmental, ethical, philanthropic and economic. It is determined that

the social policy of an organization should be based on 5 main areas: business ethics;

transparency; employee relations; human rights; public investment. The problematic

issues in the implementation and realization of social policy are investigated: lack of a

clear framework for implementing and measuring initiatives; lack of transparency and

accountability; difficulties in balancing short-term economic considerations with the need

to implement sustainable, long-term social policy initiatives. The author presents 6

recent trends in the field of social policy in the organization: virtual volunteering for

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employees; support for small businesses; greening; equality, integration and diversity;

localization of the business model. The study concludes that in order to implement an

effective social policy, it is important for organizations to cooperate and develop clear

guidelines and rules for social responsibility initiatives.

Keywords: social policy, social responsibility, transparency, accountability, business

ethics.

Recibido: 11/08/2023 Aceptado: 12/01/2024

* Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine. ORCID ID:

https://orcid.org/0000-0001-8576-6440 . E-mail: halyna.lopushniak@kneu.edu.ua

** Kyiv National Economic University named after Vadym Hetman, Kyiv, UkraineBorys Grinchenko Kyiv

Metropolitan University, Kyiv, Ukraine. ORCID ID: https://orcid.org/0000-0002-9176-2574 . E-mail:

verkhovod.iryna@kneu.edu.ua

*** Poltava State Agrarian University, Poltava, Ukraine. ORCID ID: https://orcid.org/0000-0003-2723-669X

E-mail: roman.lipskyi@pdaa.edu.ua

**** Classical Private University, Zaporizhzhya, Ukraine. ORCID ID: https://orcid.org/0000-0002-6163-4344

. E-mail: olena_gorohovska@yahoo.com

***** Volodymyr Vynnychenko Central Ukrainian State University, Kropyvnytskyi, Ukraine. ORCID iD:

https://orcid.org/0000-0002-9412-2281 E-mail: eduard.socio@gmail.com

1. Introduction

Social policy is a broad concept. It generally refers to an organization's intention

to conduct its business or operations in an ethical manner. This means managing

business processes with due regard for their social impact and human rights. Social

policy not only obliges organizations to follow clear rules that allow them to have a

positive impact on the region and community, but it can also help improve operational

or business efficiency, increase competitive advantage, and strengthen customer and

employee trust. It can also help to achieve operational cost savings by avoiding wasted

energy or unnecessary payments. (Corporate social responsibility (CSR)). In brand

management, the implementation of social policies and social responsibility practices

gives the company and brand a positive image of a reputable ethical business. In

Ukraine, social policies of organizations are implemented either at the level of large

corporations that form their own corporate social responsibility initiative to increase

competitiveness, investment attractiveness or reputation, or at the level of public or

volunteer organizations that are created to implement certain norms or perform social

tasks. At the government level, to a certain extent, social responsibility is still

declarative. In small business, social policy plays an important role in building

relationships with the community.

At the same time, Ukraine is currently undergoing transformational processes in

society as a result of the Russian-Ukrainian war and especially the large-scale invasion

of Russia, which began in 2022, and Ukrainian identity is being formed. A mature society

will also require maturity from the organizations with which it interacts and which serve

it. and these issues will not be limited to the ban on cooperation with Russia or language

issues. After the victory, the transformation of society will also require increased social

responsibility from organizations through the implementation of social policy. Therefore,

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the study of problems and trends in social policy in organizations is relevant and needs

to be studied today.

Objectives. The purpose of the study is to develop guidelines for the

implementation of social policy in Ukrainian organizations based on current trends. In

order to understand the processes of social policy formation, it is necessary to identify

its directions and areas in order to realize the areas of influence on society and citizens.

This goal involves studying problems in the formation and implementation of social policy

and identifying trends in the development of these processes.

2. Analysis of recent research and publications

Modern research considers an organization as a certain social entity through its

interaction with other social entities, whether they are other organizations or

government agencies, or ordinary people (staff, consumers of goods or services, etc.).

With this in mind, social policy helps an organization to be socially responsible to itself,

its stakeholders, and the public. By implementing a social policy, organizations can

recognize the impact they have on all aspects of society, including economic, social, and

environmental. Implementation of a social policy means that in the course of its normal

operations, the company operates in a way that improves society and the environment

rather than negatively contributes to them. According to the social policy, the

organization's goal is to make a concerted effort to operate in a way that improves,

rather than degrades, society and the environment, and organizations are interested in

implementing social policies. After all, it can both improve various aspects of society and

contribute to a positive brand image of companies (Fernando, 2022). Social policy is an

effective way to boost morale in the workplace (Glavas, 2016).

In the case of a correctly implemented concept of the social policy of

organizations, it can lead to the formation of competitive advantages, first of all, the

expansion of the availability of markets and capitals, the growth of the level of sales and

income, as well as the saving of operating costs, increased productivity and quality, an

efficient human resource base, improved brand image and reputation, improved

customer loyalty, better decision-making processes and risk management (UNIDO,

2023).

The social policy of an organization is implemented through corporate social

responsibility, which can take various forms. Until recently, most large enterprises were

guided almost exclusively by one goal: profit. Profit maximization was at the heart of

every action or initiative taken. At the same time, over the past decades, there has been

a strong conviction in the business community that today's business leaders must

optimize their work in the direction of maximizing profits for both shareholders and

management. At the same time, their social responsibility extends not only to the search

for the best option for their company, but also to the entire society of the region and the

planet in general (Stobierski, 2021).

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Therefore, in recent years, research has focused on identifying the benefits that

are generated by the implementation of social policies, which leads to the spread of this

process.

3. Materials and methods

In writing this article, we used research methods that allowed us to achieve our

goal. First of all, this is an analysis of literature sources to determine the current

understanding of the concept of social policy in an organization. The review of scientific

papers and recent studies made it possible to identify the main theoretical aspects of

scientific discourse on the research issue. In addition, the analysis of literature sources

was used to reveal the importance of the implementation of social policy by

organizations, especially in business circles, for the modern development of society and

sustainable economy. At the same time, attention was focused on the studies of recent

years due to the interest in the modern presentation of the topic by researchers.

To determine the benefits of implementing social policy in the organization's

activities, a survey was conducted of managers of 20 well-known Ukrainian companies:

educational studio “Just School”, retail chain “EVA”, Supermarket’s Network “Silpo”,

charitable foundation “Povernys Zhyvym”, logistics company “Nova Poshta”, delivery

service “Glovo”, pharmacy chain “Dobroho Dnia”, diagnostic laboratories “Synevo”,

market network “Aurora”, household appliances store chain “Comfy”, supermarket

network “Fora”, pharmacy chain “Podorozhnyk”, Roshen Corporation, Metinvest

Corporation, MHP Corporation, ZAMMLER 3PL Logistics Group, gas station network

“OKKO”, National Telecommunications Provider “Kyivstar”, fintech company

“Monobank”, commercial bank PrivatBank. This survey allowed for the generalization of

a range of benefits associated with the implementation of a social policy in the

managerial practices of these companies.

The method of abstraction allowed us to separate the social policy of

organizations from the social policy of the state and the general idea of social policy

implementation. After all, the social policy of an organization has its own specifics, which

are not identified with the peculiarities of the implementation of social policy by the

authorities and the state as a whole. The graphic method in this article is used to simplify

the perception of certain elements of the study through their schematic representation,

which visualizes the interaction and hierarchy of certain phenomena and processes.

Using this method and the method of systematization, the author presents 3 figures in

the article (benefits of social policy in an organization, main directions of social policy in

an organization, and areas of social policy in an organization). The method of

systematization and generalization also allowed the author to identify the main directions

and areas of social policy in the organization. The method of deduction was used to

logically separate the problems of the organization's social policy. It also allowed to

identify trends in the further development of the organization's social policy and its

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implementation. In addition, the methods of deduction, systematization and

generalization were used in drawing up the conclusions of the study.

In writing the article, scientific articles, UNIDO materials, research materials of

the Journal of Consumer Psychology (on the impact of social policy on brand awareness);

Boston Consulting Group (on the impact of social policy on investor relations); Boston

Consulting Group (on the impact of social policy on employee engagement) were used.

4. Results and discussion

Companies that implement social policies are usually organized in a way that

enables them to be and act in a socially responsible manner to have a positive impact

on the world. Actually, social policies can be of 4 types:

1. Environmental. This implies the understanding that companies must organize

their activities in maximum harmony with the environment. (6 Questions to Ask About

Corporate Social Responsibility) This is done by:

- reducing harmful practices, such as reducing pollution, greenhouse gas

emissions, the use of single-use plastic, water consumption, and general waste;

- regulated consumption of energy resources due to an increase in the share of

renewable sources in energy balances together with the use of sustainable resources

and recycled materials (or the use of materials suitable for future recycling);

- compensation programs, which provide for the practice of compensation for the

negative impact on the ecology. Such tools can become the restoration of green areas,

funding of research, or charitable initiatives to environmental funds and public

organizations.

2. Ethical. Ethical social policy is related to ensuring that the organization

operates honestly and ethically.

3. Philanthropic. Philanthropic social policy refers to the goal of business to

actively make the world and society better.

4. Economic. This is the practice of a firm that supports all its financial decisions

with its commitment to doing good in the areas listed above.(Corporate Social

Responsibility for Businesses). The ultimate goal is not just to maximize profits, but to

make sure that business operations have a positive impact on the environment, people,

and society.

Based on the results of the survey conducted among managers of 20 well-known

Ukrainian companies, a rating of the advantages of implementing social policy into

management practices of Ukrainian organizations has been formed. So іmplementing a

social policy in an organization can achieve a number of benefits (Figure 1).

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Fig. 1

Benefits of the organization's social policy

Source: compiled by the author

The majority of managers acknowledge that investing in social initiatives and CSR

activities significantly enhances brand awareness. By aligning with social causes and

demonstrating a commitment to societal well-being, companies can increase their

visibility and reputation among consumers. Managers recognize the positive impact of

social policy on investor relations. Engaging in socially responsible practices can attract

investors who prioritize ethical and sustainable business practices. Social policy

initiatives contribute to higher levels of employee engagement within organizations. And

implementing a robust social policy and engaging in CSR activities can help mitigate

various risks for companies.

Implementing an organization's social policy is important for society, and it is

equally valuable for the organization itself. Developing and implementing an

organization's social policy can help create a stronger bond between employees and

corporations, boost morale, and help both employees and employers feel more

connected to the world around them and to the promotion of sustainable development.

At the same time, social policy can bring a number of significant benefits to a corporation

or business company that can be measured in financial terms and that have an impact

on business performance:

1) Brand awareness. According to a study published in the Journal of Consumer

Psychology, consumers are more likely to favor a company that has acted in the best

Benefits of the organization's social policy

Benefits of corporate social responsibility -

100%

Brand awareness 96%

Investor relations 82%

Employee engagement 74%

Reducing risks 68%

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320

interests of its customers, as opposed to companies that have demonstrated the ability

to deliver quality products (Johnson et al., 2019). Customers are increasingly aware of

the impact that companies can have on their community, and many now make

purchasing decisions based on the social aspect of a business. As a company becomes

more involved in implementing social policies and corporate social responsibility

practices, it is likely to gain favorable brand recognition;

2) Investor relations. In a study conducted by the Boston Consulting Group,

companies considered leaders in environmental, social, or governance issues had an

11% valuation premium over their competitors (Walter et al., 2020). For companies

looking to gain an edge and stay ahead of the market, implementing social policy and

corporate responsibility strategies has a positive impact on how investors view the

organization and how they see the company's value;

3) Employee engagement. In another study conducted by experts from Texas

A&M, Temple, and the University of Minnesota, it was found that social responsibility-

related values that unite firms and employees serve as non-financial job benefits that

contribute to employee retention (Cen et al., 2022). Employees are more likely to stay

with a company they believe in. (KUS7). This, in turn, reduces staff turnover, dissatisfied

employees, and the overall cost of a new employee;

4) Reducing risks. Such adverse actions can be discrimination of individual

employees or their groups, contemptuous attitude towards natural resources or

unethical forms of using the company's cash or material funds. (Corporate Social

Responsibility (CSR) Explained With Examples). These types of activities are likely to

lead to lawsuits, litigation, or prosecutions, where the company may suffer a negative

financial impact and make headlines. By adhering to social responsibility practices,

companies can reduce risk by avoiding disturbing situations and following favorable

measures (Fernando J., 2022).

In a general sense, social policy involves purposeful activities for the formation

of such a management concept, which will lead to the company taking into account social

and environmental problems, avoiding which it is necessary to form business operations

and interact with stakeholders. Social policy is usually understood as a way for a

company to balance economic, environmental and social imperatives (the "triple bottom

line approach"), while meeting the expectations of shareholders and stakeholders.

Spreading the implementation of corporate policy and tools of social responsibility

involves the use of a set of such tools and approaches that would meet the needs and

capabilities of companies and would not have a negative impact on their economic

capacity. UNIDO offers a social responsibility program based on the triple bottom line

approach, which has proven to be a successful tool in many developing countries to help

them achieve social and environmental standards without compromising their

competitiveness. The triple bottom line approach is used as a framework for measuring

and reporting on a company's performance against economic, social and environmental

indicators. Such effort is an attempt to harmonize the actions of the business

environment with the goals of sustainable global development, revealing to business

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circles a wide range of prospects for effective activities that are not limited to the process

of profit generating. The perspective considered is that the organization is sustainable.

With this in mind, the key issues of the organization's social policy should be

environmental management, eco-efficiency, responsible sourcing, stakeholder

engagement, labor standards and working conditions, employee-community relations,

social equality, gender balance, human rights, good governance, and anti-corruption

measures (UNIDO, 2023).

Therefore, the organization's social policy should cover four areas, which are

presented in Fig. 2.

Fig. 2.

Main directions of the organization's social policy

Source: compiled by the author

Therefore, the social policy of an organization should ensure business conditions

that provide for compliance with established social and ethical norms and human rights.

Of course, a socially responsible organization harmonizes its activities with the

environment, ensuring the protection and safety of people and consumers. As the world

continues to globalize, people from different communities and cultures can work together

in one organization, so the organization's social policy should be aimed at engaging,

educating, respecting and supporting the communities and cultures with which the

organization works.

The organization should ensure that all corporate social responsibility issues are

supported in its operations and administration and are in the best interests of the

company's stakeholders. And the organization should be recognized as one that pays

Doing business in a socially responsible

and ethical manner

Environmental protection, protection

and safety of people and consumers

Support of human rights

Engaging, educating, respecting and

supporting the communities and

cultures we work with

Social policy of the

organization

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322

attention to corporate social responsibility and recognizes that by doing so, it adds

significant value to its own operations. At the same time, the social policy should be

applied to activities carried out by or on behalf of the organization.

For the social policy to be successful, all employees of the organization must

apply the principles of corporate social responsibility described in its policy in their daily

work. The organization's management should act as a role model, taking these

considerations into account when making decisions in all operational activities. The

organization's management should ensure that appropriate organizational structures are

in place to effectively identify, monitor and manage corporate social responsibility and

performance issues related to the operational process.

Therefore, the social policy of the organization should be based on 5 main areas,

which are shown in Fig. 3.

Fig. 3. Spheres of social policy of the organization

Source: compiled by the author

The areas identified above should be integrated into corporate social

responsibility standards.

In the area of business ethics, the organization should strive to maintain the

highest standards of integrity and corporate governance practices to uphold excellence

in its daily operations and promote confidence in the management systems

implemented. The Organization shall promote its activities in an open, honest and ethical

manner, recognizing the importance of protecting all human, financial, physical,

Spheres of social policy of the

organization

business ethics

transparentness

relations with the employees

human rights

public investments

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information, social, environmental and reputational assets. An environmental, health

and safety policy should be implemented and communicated to all personnel through a

staff handbook and subsequent memos.

In the area of transparency, the organization should interact with stakeholders in

a clear, honest and respectful manner. The organization should strive for timely and

meaningful dialogue with all stakeholders, including shareholders, founders, customers

and employees, indigenous peoples, governments, regulators, and landowners.

In the area of employee relations, the organization shall ensure fair and dignified

treatment of employees, respect for their goals and aspirations, and promotion of

diversity in the workplace. At the same time, the organization shall promote fair labor

practices, respecting the applicable laws. The organization should ensure equal

opportunities (in accordance with the policy) in all aspects of employment and prevent

unlawful and unacceptable behavior in the workplace, including discrimination,

intimidation or harassment.

In the area of human rights, the organization should recognize that governments

have the primary responsibility to promote and protect human rights. Therefore,

organizations need to work with governments and institutions to support and respect

human rights within their sphere of influence. Human rights violations will not be

tolerated within the organization and the organization should not engage in or be

complicit in any activity that advocates or encourages human rights violations. In

addition, the organization should strive to build trust, ensure mutual benefit and

demonstrate respect for the culture, customs and values of individuals and groups.

In the area of community investment, organizations' social policies should include

community investment in decision-making and business practices, and insist on building

local capacity to develop mutually beneficial relationships with communities.(

Lopushniak et al., 2023)

One of the biggest challenges organizations face when it comes to social policy is

the lack of a clear framework for implementing and measuring initiatives. Unlike other

activities such as finance or marketing, there is no set framework for social policy that

businesses can follow. This means that companies often have to develop their own

strategies and indicators for social policy and social responsibility, which can be time-

consuming. In addition, it can be difficult to measure the effectiveness of social policy

initiatives, as the impact of such initiatives is often long-term and difficult to quantify.

Another problem with social policy in organizations is the lack of transparency

and accountability. For social policy to be effective, organizations need to be open and

honest about their efforts. This means disclosing information about their environmental

and social impacts and the steps they are taking to address any negative effects.

However, there are still companies that do not adhere to the principle of transparency

in own social responsibility. And this can become an obstacle to the formation of trust in

society regarding their practices in the field of social responsibility. To overcome this

problem, companies can implement robust social policy reporting systems that provide

detailed information about their activities and impacts. They can also communicate with

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324

stakeholders, such as investors, employees, and customers, to get feedback and input

on their social responsibility efforts. The third challenge is the difficulty of balancing

short-term economic considerations with the need to implement sustainable, long-term

social policy initiatives. In today's rapidly evolving business environment, organizations

and companies are under constant pressure to make a profit and deliver value to

shareholders or stakeholders. As a result, many companies may be hesitant to invest in

social policy programs that may not yield immediate financial returns (Karmakar, 2022).

As the digital and physical worlds blend in all areas of our lives, and consumers

interact with companies much more directly than was possible in the As the digital and

physical worlds blend in all areas of our lives, and consumers interact with companies

much more directly than was possible in the analog past, companies can no longer afford

to consider themselves entities separate from the societies in which they operate.

(Corporate social responsibility (CSR): challenges and resolutions). At the same time,

various organizations are currently evaluating their own role as a corporate citizen. This

involves making an adequate assessment of the potential impact of their social policy

and applied practices in this area on contemporary social problems. And so, on par with

their shareholders, companies must now also extend greater accountability to their

customers and consumers, as well as to the global and regional communities affected

by the conduct of their business. (The Challenges of Corporate Social Responsibility

(2023)). With this in mind, corporate social responsibility means finding ways to

compete, grow, and innovate profitably, while being mindful of the organization's place

in society and its obligations to it. By adopting a strategic and thoughtful approach to

corporate social responsibility, an organization can build social capital and achieve more

sustainable results, avoiding potential pitfalls and making a positive contribution to the

lives of customers, shareholders and the world (Murphy, 2020).

Below are 6 recent trends in the field of social policy in the organization:

1. Virtual volunteering for employees. Contributing to the rebuilding of the community

develops a sense of satisfaction among people. Virtual volunteering is becoming a global

trend today, which is gaining significant exponential spread after the COVID-19

pandemic.

2. Support for small businesses. Small businesses have limited resources and capital to

operate. When they receive assistance from well-established organizations, it improves

the quality of their work and boosts their morale. Many large companies take on

corporate social responsibility to ensure the development of small and medium-sized

enterprises.

3. Greening. To balance the damage done, many companies have pledged to take

matters into their own hands and neutralize the deadly effects on the environment.

4. Equality, integration and diversity. Diversity and a sense of inclusion are the needs of

the hour. Equality is a fundamental human right that can never be neglected. Companies

have pledged to reduce social discrimination by hiring racial and ethnic minorities and

providing unbiased remuneration to every employee regardless of their caste, creed,

gender or community. Gender equality is at the forefront of social policy trends, with

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campaigns often being launched to promote fair remuneration for women. Companies

that guarantee fair treatment of their employees have better retention rates and higher

employee satisfaction.

5. Localization of the business model. Local communities feel threatened by

globalization. In the fiercely competitive marketplace of prosperous large corporations,

local traders and business owners are often exploited due to a lack of opportunities and

networks. This has led to a trend of localization of corporate social responsibility.

6. Transparency. Stakeholders and customers value companies that promote

transparency.

5. Conclusions

The methods used in the study contributed to the fulfillment of the goal. The

article uses the analysis of literary sources, the method of abstraction, the graphic

method, the method of systematization and generalization, and the method of

deduction. Results.

Today, social policy is becoming a necessary element of the corporate

environment and the activities of governmental organizations and public organizations.

This is especially true for Ukraine in the context of the need to unite to recover after the

victory. Despite all the challenges, there are a number of potential solutions that

organizations can consider to overcome obstacles and effectively integrate social policy

into their operations. One approach is to develop a clear and comprehensive definition

of social policy areas and their detailing, which will be aligned with the expectations and

priorities of key stakeholders. This process should be based on a sound set of principles

and should be regularly reviewed and updated to ensure that social policy remains

relevant and effective.

Another important step is to establish standardized reporting and disclosure

mechanisms for social policy implementation. This can help to ensure that organizations

provide consistent and comparable information on the effectiveness of social policies and

social responsibility practices, and can facilitate benchmarking and peer review.

To implement effective social policies, it is important that organizations

collaborate and develop clear guidelines and rules for social responsibility initiatives. This

can help ensure that all departments operate in a consistent and responsible manner,

and can help create a more coordinated and effective approach to social policy. In

general, the implementation of social responsibility initiatives contains significant

challenges for today, overcoming which is a complex process. However, the presence of

a clear plan and directions of interaction and commitment to work together can create

all the necessary prerequisites for overcoming these challenges on the way to the

formation of a truly socially responsible company. By taking these steps, organizations

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326

can not only improve their own operations, but also make a positive difference in their

communities and the world at large.

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