Organic Production Business Model Basics in Terms of Corporate Social Responsibility

Venelin Terziev, Ekaterina Arabska

Abstract


Purpose. The paper examines the organic production as a business model corresponding to the spheres of CSR regarding society, environment, human capital and work conditions, knowledge and education. The focus in on sustainable business practices in organic production assessed in the study from the point of view of management, environment, human resources, public relations and business environment considered in five dimensions: economic, social, environmental, cultural and accountability.

Methodology. Experts’ focus group discussions and assessments of identified criteria regarding the conformity of organic production business model to the corporate social responsibility issues interlinked with sustainable development according to their knowledge and experience in the Republic of Bulgaria.

Results. Current investigation’s main results, although based on the specific situation of organic sector development in the Republic of Bulgaria, show that the business model of organic production fits very well to the key point of the concept of CSR being a sector implementing integrated and holistic management activities of all the processes in the whole production cycle, i.e. having “a built-in and self-regulated mechanism” working according to the requirements of the strong legislative base and standards which is expressed by the certification procedures assuring consumers’ and society trust in organic.

The theoretical contribution. As a result of the main discussions a definition of organic production business model is given as follows: organic production business model is a holistic production and managerial method in sustainable agriculture ensuring overall management and answering a number of requirements regarding environmental protection, food quality and safety and human health which responsibly uses, protects and restores natural resources, supports the preservation of the components of environment (soil, water, biodiversity, landscape), stabilizes ecosystems and creates opportunities for positive economic and social growth. Organic production is a way of investments in production processes creating employment in environmentally friendly activities, providing information and increased social consciousness in connection to the principles of sustainable development.

Practical implications. Organic production is a green oriented sector applying sustainable business practices and implying an overall management of processes and integrated approaches – the monitoring and control are not focused on the final products but on the system functioning. It is a business model implying the principles of corporate social responsibility in five main directions: management, environment, human resources, public relations and business environment, which are influenced by the specific development of countries and regions underlining the importance of relevant state policies encouraging CSR applied in different sectors and initiatives, as well as the broad community participation.

Keywords: sustainable development, accountability, sustainable management practices.

Paper type: Research paper.


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