Экономические исследования на Севере: от прошлого к будущему 1 MAKING STRATEGIC DECISIONS TOWARDS CORPORATE SOCIAL RESPONSIBILITY OF MACHINE INDUSTRY Ing. Katarína Drieniková prof. Ing. Peter Sakál, CSc.

Экономические исследования на Севере: от прошлого к будущему 2 The paper was supported by the Slovak Research and Development Agency under the contract No. LPP ,, Concept HCS model 3E vs concept Corporate Social Responsibility (CSR). The paper also deals with our practices in the field of SD and describes submitted KEGA project called Sustainable corporate social responsibility.

Экономические исследования на Севере: от прошлого к будущему 3 Towards Corporate Social Responsibility Corporate social responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large.

Экономические исследования на Севере: от прошлого к будущему 4 Multicriteria aspect in decision making in context with CSR Multicriteria aspect - the defined problem is valuated not only from one point of view but its analyzed by several criteria or subcriteria. Solution of multicriteria decision task we understand finding such optimal status of system that will suit to more than one set of criteria.

Экономические исследования на Севере: от прошлого к будущему 5 Multicriteria aspect in decisionmaking in context with CSR Components of multicriteria decision task : decision objective – the future status of system that flows from the need of meeting the needs or fulfilling some functions, subject and object of decision – decision subject can be an individual or a group of individuals that make decisions; decision object is the system where the decision problem, objective, criteria and variants of decision are formulated, criteria – that can have various format from physical, technical or technological measurable attributes, through economic criteria expressed by monetary units to immeasurable subjective criteria, alternatives – various elements compared each other, the solutions of the problem in a specific decision, conditions (decision scripting) – can be characterized as reciprocally eliminating conditions of decision system surrounding that is beyond the control of decision subject.

Экономические исследования на Севере: от прошлого к будущему 6 Multicriteria aspect in decision making in context with CSR Analytic hierarchy process (AHP) - multicriteria decision making method uses pairwise or Saaty comparisons and is based on three conditions: hierarchy (create hierarchical tree), priorities (the rate is from 1 – the same importance, to 9- the absolute importance of one criterion to the other), consistency (the test of correctness).

Экономические исследования на Севере: от прошлого к будущему 7 Multicriteria aspect in decision making in context with CSR

Экономические исследования на Севере: от прошлого к будущему 8 Criteria regarded in decision making in context with CSR We can find two ways of how to incorporate the ideas of CSR to decision making through criteria. The first way of how to understand CSR criteria is to divide criteria through 3 main CSR fields or aspects: economic criteria environmental criteria, social criteria.

Экономические исследования на Севере: от прошлого к будущему 9 Criteria regarded in decision making in context with CSR The second way of how to understand evaluation criteria with CSR context we can divided them through individual stakeholders that constitute their own requirements and needs. The evaluation criteria we can define as the needs of following stakeholders: shareholders (owners), managers, employees, customers, suppliers, local community, business partners, investors, public, media, state institutions, civil society, non-governmental organizations, etc.

Экономические исследования на Севере: от прошлого к будущему 10 Example of using stakeholders criteria within CSR decision The objective: to find the solution between 3 alternatives: - ergonomic audit, -eco- effective project, -to do nothing. Each stakeholder has own criteria: shareholders – to increase profitability of equity capital; investments and to make a new eco-product, managers – to increase production, to decrease indebtedness and to low costs, employees – to increase wages, to invest in working place improvement and to stabilize key employees.

Экономические исследования на Севере: от прошлого к будущему 11 Example of using stakeholders criteria within CSR decision The result : -shareholders (more than 66%), -management (nearly 21%), -employees (13%). Decision between three alternatives - result: - ergonomic audit with more than 44%, -to do nothing with more than 29%, -eco-effective project with more than 25 %. The most important criterion was to increase the profitability with nearly 44%.

Экономические исследования на Севере: от прошлого к будущему 12 Conclusion Multicriteria methods help us to make or to find the optimal solution or to decide in the way that integrate more than one decision subject. It makes decision subjects to express their own opinions to the topic through their own criteria. Especially in the topic of corporate social the company must regard opinions of its stakeholders within problem solution. We refer to the need of stakeholders´ or triple-bottom- line criteria incorporation to optimize the decision making process through the whole company because just making the right choices towards CSR the company can be successful in sustainable way.

Экономические исследования на Севере: от прошлого к будущему 13 Thank you for your attention! Cпасибо за внимание!