The evaluation of impact on business organizations in Lithuania to operate in social responsible way

Sonata Staniuliene

Abstract


20th International Scientific Conference; Economics and Management 2015, ICEM 2015, 06-08 May 2015, Kaunas, Lithuania

The evaluation of impact on business organizations in Lithuania to operate in social responsible way

Irena Bakanauskienėa, Sonata Staniulienėb

a Department of Economics and Management, Vytautas Magnus University, Daukantas st. 28, Kaunas LT-44246 , Lithuania;

b Department of Economics and Management, Vytautas Magnus University, Daukantas st. 28, Kaunas LT-44246 , Lithuania.

 

Purpose is to assess the impact of environmental stakeholders’ groups on Lithuanian business organizations to act in a social responsible way.

Methodology. Theoretical research framework is based on International Business Environmental Barometer (IBEB) research tool and covers strength and types of different environmental stakeholders (including internal and external stakeholders as well); organizational strategies of relations with them; consequences of environmental stakeholders impact. IBEB is a representative quantitative survey of business organizations managers to examine how managers feel environmental stakeholders pressure. Taking into account the purpose and attitudes of the research framework and the results of the pilot interviews some changes in the IBEB methodology were made.

Results. Results of empirical investigation reveal that the overall situation of social responsibility in Lithuania seems to be not at the appropriate level regardless growing attention to social issues in scientific literature and mass media. Lithuanian business organizations feel no remarkable challenges to act in a social responsible way. In spite of low environmental stakeholders impact Lithuanian business organizations sometimes take some actions leading to operation in social responsible way, as employee training, decisions made under impact of stakeholders, and others.

The theoretical contribution. While the public interest in issues of social responsibility is growing, there is lack of complex researches of environmental impact on business organizations supported with a systematic approach that would enable a comprehensive assessment of the pressure of the environmental stakeholders’ groups, also the action taken in order to act in a socially responsible way.

Practical implications. The research results provide information for managers, community, and other stakeholders groups on social responsibility issues in Lithuania. It systemizes the consequences of organizational management socially responsible actions: changes in competitiveness, corporate and product image, cost savings, productivity increase, long-term and short-term profits, market share, new markets opportunities, owners’ and top management’s satisfaction, trust of supervision institutions.

Keywords: social responsibility, environmental management, stakeholders, International Business Environmental Barometer.

 

Paper type: Research paper.


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