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Efficiency of functioning of agrarian formations as a source of their social responsibility

Author(s) Revutskaya A., Candidate of Ekonomikal Sciences, , Uman National University of Horticulture
Froter O.S., , , Uman National University of Horticulture, Ukraine
Category Economics
year 2019 issue Issue number 95. Part 2
pages 185-197 index UDK 332.155:631.11:005.35
DOI 10.31395/2415-8240-2019-95-2-185-197 (Link)
Abstract The agricultural base of rural life and rural development is now and will continue to be agro-industrial production. Subjects of agrarian business have quite significant economic potential which participates in the formation and functioning of their social responsibility. Therefore, in the conditions of a deficit of the state budget and austerity of state funds, the responsibility of agribusiness is to assist the state in solving the economic, social and environmental problems of society. The study aims to identify the main factors which prompts agricultural formations to carry out socially responsible activities and an assessment of the effectiveness of their impact on the socio-economic development of rural areas. The theoretical and methodological basis of the research are the works of domestic and foreign scientists legal framework for regulation of agricultural business. In the process of research, the following scientific methods have been used: classification-analytical, monographic, abstract-logical, statistical-economic, comparison and generalization. It has been established that for the most part, large agro forming can be socially responsible who have the money to implement internal and external social programs. Implementation of the concept of social responsibility is inconsistent and unsystematic. The process of establishing a Ukrainian model of social responsibility for agrarian business is uncontrolled and has a number of peculiarities. The social policy of most agrarian enterprises is not part of their business strategy. For the most part, they carry out socially responsible activities without planning social measures, in the absence of special units and persons responsible for this activity. The methods and forms of expression of social responsibility are determined by personal preferences and interests of managers and owners of subjects of agrarian business. At the current stage of development of the Ukrainian economy, social responsibility should be considered as an independent activity of enterprises. One of the external forms of its implementation are social contracts (agreements), concluded between large enterprises, civil institutes, state administration bodies at national, regional and local levels. According to social agreements agricultural enterprises pay local budgets funds for rural development. These are significant additional revenues to local budgets. These funds are directed at local communities address the most important social and economic problems of rural areas (reconstruction and support of social infrastructure objects, housing stock, construction and repair of roads, etc.). Agricultural production is the basis of socio-economic development of rural areas therefore, it is necessary to intensify measures on state support to the agrarian sector and to improve the regulatory framework , which will increase the efficiency of functioning of agrarian enterprises and sustainable development of rural areas.
Key words economic efficiency, agrarian formation, rural territories, social responsibility, social programs, sustainable development
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