REVESCO. Revista de Estudios Cooperativos

ISSN: 1885-8031

 

http://dx.doi.org/10.5209/REVE.69185

 

Responsabilidad social y asociación social en el contexto de la 4ª revolución industrial: el caso de Ucrania

Natalia Danylevych[1] y Oksana Poplavska[2]

Recibido: 21 de junio de 2019 / Aceptado: 25 de febrero de 2020 / Publicado: 14 de julio de 2020

Resumen. Las relaciones laborales y sociales están cambiando rápidamente bajo la influencia de la innovación. Esto es especialmente cierto hoy en día, cuando la 4ª revolución industrial y la digitalización exponen problemas sociales en todo el mundo: riesgos ambientales, una inconsistencia entre la calidad de la fuerza laboral y las necesidades del mercado, la estratificación profunda de la sociedad y el crecimiento de la fuerza laboral. índice de pobreza, etc. Los autores en su artículo demuestran la posibilidad y la necesidad de utilizar herramientas de diálogo social para resolver problemas globales. Con este fin, se propuso implementar los Objetivos de Desarrollo Sostenible en el modelo de responsabilidad social corporativa a través del diálogo social. Después de haber estudiado las interrelaciones del diálogo social y la responsabilidad social corporativa en el entorno de la economía digital, los autores han desarrollado un modelo teórico de oportunidades de digitalización que afectaría la eficiencia de la asociación social. El artículo también propone una metodología para evaluar la calidad del diálogo social, que consta de una serie de indicadores, entre los que se incluyen: el potencial salarial, el índice de riesgo de empleo inestable, el indicador general de las condiciones de trabajo, la satisfacción con el índice de diálogo social. Basados en los resultados de un análisis cualitativo del diálogo social y el análisis de contenido de los contratos y acuerdos laborales sociales en Ucrania, los autores diseñaron un modelo de la plataforma de innovación y experiencia para proyectos de RSE y sugirieron formas de aprovechar las oportunidades de digitalización para mejorar la calidad de diálogo social y aumento de la eficiencia de la responsabilidad social corporativa.

Palabras clave: Diálogo Social; Responsabilidad Social Corporativa; Digitalización; Indicadores de calidad del diálogo social.

Claves Econlit: J500; М140.

[en] Social responsibility and social partnership in the 4th industrial revolution context: case of Ukraine

Abstract. Work, social and labor relations are changing rapidly under the influence of innovation. This is especially true today when the 4th industrial revolution and the digitalization expose social problems all over the world: environmental risks, an inconsistency between the quality of the workforce and the needs of the market, the deep stratification of the society and the growth of the poverty rate, etc. The authors in their article demonstrate the possibility and necessity to use social dialogue tools in order to solve global problems. To this end, it was proposed to implement the Sustainable Development Goals into the corporate social responsibility model through social dialogue. Having studied the interrelations of social dialogue and corporate social responsibility in the digital economy environment, the authors have built a theoretical model of digitalization opportunities that would affect the efficiency of social partnership. The article also proposes a methodology for assessing the quality of social dialogue, which consists of a number of indicators, including:  the wages potential, the risk of unstable employment index, the general indicator of working conditions, the satisfaction with the social dialogue index. Based on the results of a qualitative analysis of social dialogue and content analysis of social labor contracts and agreements in Ukraine, the authors have designed a model of the innovation platform and experience for CSR projects and suggested ways to use digitalization opportunities to improve the quality of social dialogue and increase the efficiency of corporate social responsibility.

Keywords: Social Dialogue; Corporate Social Responsibility; Digitalization; Quality indicators of social dialogue.

Summary. 1. Introduction. 2. The function of social dialogue and partnership in the companies’ social responsibility framework. 3. Social partnership actualization as a tool to implement social responsibility in the 4th industrial revolution context. 4. CSR in Ukraine: best practices. 5. Challenges and prospects of development of social partnership in the framework of the model of social responsibility in Ukraine. 6. Implementation of CSR in the era of digitalization and the 4th industrial revolution: using the tools of social partnership. 7. Conclusion and discussion. 8. References.

How to cite. Danylevych, N; Poplavska, O. (2020) Social responsibility and social partnership in the 4th industrial revolution context: case of Ukraine. REVESCO. Revista de Estudios Cooperativos, vol. 135, e69185. https://dx.doi.org/10.5209/reve.69185.

1.Introduction

The 4th industrial revolution and digitalization have a significant impact on labor markets and social and labor relations. This impact has several vectors: the structural transformation of the employment models (including the emergence of new professions), the stimuli to finding the new approaches to work organization (with an increase in the share of flexible working hours), and the spread of unstable and non-traditional forms of employment (distance employment, freelancing), changing the model of employee competencies. Of course, all these processes are closely related to the priorities identified by the UN in the Sustainable Development Goals (United Nations. About the Sustainable Development Goals), especially those related to the values of the 21st century society - where the green energy, careful attitude to nature and its resources are the fundamental principles of the development.

Ukraine is not an exception and is actively making decisions in order to achieve sustainable development. At the state level, the Concept of the development of the digital economy and the society of Ukraine 2018-2020 Strategy (Cabinet of Ministers of Ukraine, 2018), the Poverty Reduction Strategy (Cabinet of Ministers of Ukraine, 2016) were adopted. However, the government actions alone cannot ensure the efficiency of solving sustainable development problems. Therefore, the center of responsibility more and more is sliding towards the social partners - employers, trade unions and their associations. In the process of the social dialogue, the partners have the opportunity to come to a compromise solution not only in the field of remuneration, but also in the employment, charity, and the implementation of the environmental safety standards, etc. At the same time, digitalization promotes the dialogue and openness. It provides a productive platform for the interaction of all social partners and the state in solving economic and social problems. In fact, social partnership today must be viewed through the prism of the social responsibility not only for businesses, but also for every individual person and public organizations.

This article has been prepared to analyze the process of the influence on the development of corporate social responsibility in Ukraine by the institution of the social partnership, to identify features of the implementation of the social dialogue in the era of digitalization and the fourth industrial revolution. For this purpose, the researchers brought forward a number of hypotheses: the first, the social dialogue is an integral part of a company's corporate social responsibility policy; the second, the 4th industrial revolution actualizes negotiations as a tool to achieve the goals of various groups and actors of the market; the third, the digitalization allows to make the social dialogue more open and make the information available for the discussion by all negotiators.

To carry out the analysis, the authors used their own assessment methodology, based on an attempt to qualitatively assess social dialogue through the prism of the implementation of the principles of social responsibility and the Global Compact. A feature of the author's research is to take into account the changes associated with the 4th industrial revolution and the digitalization. The evaluations are based on official data published by the state, departments of statistics.

2. The function of social dialogue and partnership in the companies’ social responsibility framework

Traditionally, most European countries define social dialogue as a fundamental tool for settling labor relations and seeking a compromise between the interests of the hired labor force and employers. In the classical model of social partnership, the main topics of these interactions are employment issues, wages, working conditions. Moreover, based on the provisions of the knowledge economy concept, the authors consider the interaction of social partners as a tool to influence the understanding of the role and strategic goals of each market actor, and, therefore, social dialogue, as an intangible asset, can affect sustainable development. Taking into account the research conducted by Ondari-Okemwa E, Stahle P., Stahle S (Stahle P., Stahle S, & Lin, 2015; Ondari-Okemwa E., 2011), the authors suggested an increase in everyone's personal responsibility for the results of not only their own work despite its individual character during digitalization, but also responsibility for the result of the company’s activities (corporate KPI). At the same time, social responsibility of companies implies the protection of human rights within the Global Compact framework, the implementation of anti-corruption policies, the promotion of an effective labor market, and the protection of environment. Thus, the traditional, pyramidal models provide for the direction of the vector of responsibility and company decisions towards the employee and society, while the liberal model includes the responsibility of society (Kanji R., Agrawal R., 2016; Redman E., 2005). The 3C-SR model, adopted by the authors as the basis of the research for this article, allows you to combine ethical, social and economic goals; unite collective and corporate interests (Meehan J., Meehan K. and Richards A., 2006; Marcel van Marrewijk, 2003). Based on the basic principles of social partnership, the authors identified the following areas of the interaction, which are correlated with the subject of the social responsibility (see Figure 1):

Figure. 1. General areas of interest of the concept of social responsibility and social partnership.

Source: self made[3].

The figure shows that social partnership is aimed at implementing the basic principles of corporate social responsibility, and also has the potential to contribute to the achievement of the sustainable development goals at various levels: from the organization to the state. Unfortunately, researchers rarely associate social partnership and social responsibility, as they are more inclined to explore the responsibility of businesses only, and to avoid the statements about the collective responsibility of the civil society and market actors. Often this is due to the fact that social responsibility is understood as the conscious fulfillment by market actors of their responsibilities to the civil society, the state, and stakeholders. However, this approach does not fully reveal the nature of this phenomenon. The authors, by analyzing the main approaches to the understanding of social responsibility, have identified the following features (see Table 1):

Table. 1. Analysis of the concept of the social responsibility and its relations to the social dialogue

Author	Understanding social responsibility	Comments by the authors of the article
Guidance on social responsibility. ISO 26000:2010 (Online Browsing Platform (OBP), 2010)	Responsibility of the organization for the impacts of its decisions and activities on the society and environment, through the transparent and ethical behavior that — contributes to sustainable development, including health and the welfare of the society; — takes into account the expectations of stakeholders; — is in compliance with the applicable law and consistent with international norms of behavior; and — is integrated throughout the organization and practiced in its relationships.	The standard focuses on the formation of moral and ethical values that determine ethical behavior of a business; There is no indication of collective responsibility. Speaking about sustainable development of the society (taking into account the UN Sustainable Development Goals), companies have the opportunity to expand the list of principles, including the fight against poverty through effective employment and remuneration policies
The European Commission (The European Commission, 2011)	1)       A concept whereby companies integrate the social and environmental concerns into their business operations and into their interactions with their stakeholders on a voluntary basis; 2)       The responsibility of enterprises for their impacts on the society. Respect for the applicable legislation, and for collective agreements between social partners, is a prerequisite for fulfilling that responsibility.	The generalization of the impact on social problems of the society allows the state standards to be applied with the disregard to  international policies; this does not encourage companies to achieve a sufficient level of fulfillment of obligations; Awareness of the need to implement collective agreements is important, but often the lack of formalization of the process leads to its disappearance from the strategic goals;  The failure to mention collective responsibility leads to a decrease in personal responsibilities; the role of trade unions stays unclear.
United Nations Industrial Development Organization (United Nations Industrial Development Organization)	The Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns into their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders.	Focusing on problems of the society, companies often forget about problems of employees, so decent work conditions may not be taken into account; Shifting responsibilities only to businesses does not contribute to the preservation of the state identity (for an employee there is a state without borders); The responsibility of other partners has not been considered, therefore the implementation of CSR lies only on the management level.
Maimunah Ismail (Maimunah I., 2009)	CSR (also called the corporate responsibility, the corporate citizenship, the responsible business and the corporate social opportunity) is a concept whereby business organizations consider interests of the society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders as well as onto their environment.	The words "take into account interests" allows you to choose important and not so important social problems (and the criteria of importance are not defined);  The problems of labor are missed, so in the absence of the advanced personnel management there may be inconsistencies between the declared goals and the achievements; There is no mention of collective responsibility, the social dialogue as a tool to coordinate interests is not considered.
Skye Schooley (Skye Schooley, 2019)	CSR is an evolving business practice that incorporates sustainable development into a company's business model. It has a positive impact on social, economic and environmental factors.	Sustainable development involves solving social and labor problems, but they are not detailed; The emphasis stays on requirements for the organization to be responsible; the role of social partners is not defined.

Source: self made.

The authors understand collective responsibility as a state when all sides of social dialogue and market participants are equally responsible for joint decisions: both in the field of social and labor relations and in environmental matters, the establishment of a developed civil society, etc. For example, the trade unions of energy companies, as a carrier of collective responsibility (A. Giubilini means social groups united by interests as those that have collective responsibility (Giubilini Alberto, 2018)), while insisting on increasing wages, should motivate the employer to move to alternative sources of energy production by combining efforts in lobbying for these interests in government bodies and in the bringing up the interests in civil society. At the same time, despite the more distant benefits for all parties, it is important to compromise today. Thus, finding common interests and reaching a positive solution for all participants demonstrates by trade unions, employers and by the society itself the equal responsibility for making or rejecting the decision to switch to alternative energy sources. A good example in this direction is the activity of innovative companies that understand the need for and implement a shift from economic to social goals.  «Civil society, business, government and international organizations all need to focus on outcomes and work together for the collective good» (The Future Role of Civil Society, 2013), and therefore everyone is equally responsible for the sustainable development.

Taking into account the essential components of the social partnership, the authors identified its role as a tool to achieve goals of the social responsibility. At the same time, the authors propose to understand the social partnership in a broader sense: as a tool for harmonizing the goals of participants in social and labor relations in the context of values and rules formed in a given society.

3. Social partnership actualization as a tool to implement social responsibility in the 4th industrial revolution context

In Figure 1 the authors pay particular attention to the rights to have collective bargaining and to associate into public organizations. The implementation of those rights allows putting into practice the principles of the open and democratic management of any company, shifting the emphasis from a hierarchical approach to the transfer of powers and their delegation. In fact, the social partnership, based on those rights, is a platform for sharing information, making strategic decisions on effective business and personnel management. However, global companies do not seek to incorporate social dialogue tools into their corporate social responsibility framework. A recent study by Vigeo Eiris (Vigeo Eiris, 2018) suggests that despite the efforts of ILO (International Labour Organization) to promote the social dialogue, most of the large companies do not utilize its potential. Thus, the authors talk about 4% of the companies that have implemented in the negotiation process (official documents) the social dialogue, and 62% of the companies that have not really put the right to negotiate into their concept of the social responsibility, although they publicly declare it (Damian Grimshaw, Aristea Koukiadaki, Isabel Tavora, 2017).

The authors noted in their studies (Chala N., Poplavska O., 2017; Agata Stachowicz-Stanuschs, Wolfgan Amam, 2018, pp. 283-294) that a distinctive feature of the manifestation of the 4th industrial revolution in the labor market is an increase in the amount of information for the decision-making and its availability for the majority of participants in the social dialogue, the definition of new common “problem areas” (a management of changes in the employee's competences profile, an employment structure, etc.); at the same time the exchange of the information between partners is accelerated. Also, a number of new gadgets have entered our lives, which allows us to make the information flow more open, reorganize the structure of the work time. At the same time, the vulnerability of information resources, the reputation of a person or a company, becomes more noticeable. The digitalization, as one of the manifestations of the industrial revolution, implies an extension of horizontal management systems, an increased personal responsibility, a wider involvement in the management processes (especially at the state level), the transparency of the information and actions of companies in the market. That is why social partnership, which is based on social dialogue, is mostly consistent with the principles and goals of social responsibility. A more detailed theoretical model of this process is presented in Fig.2.

Figure. 2. Theoretical model of the potentials of the digitalization to influence the efficiency of social partnership[4]

Source: self made.

Equally important social partnership is in the era of the 4th industrial revolution because of the emerging imbalances of the labor market. The obvious problems of these changes are the discrepancy between the quality of the workforce and the requirements of Economy 4.0, an increase in the risks of unemployment and precarious employment (which leads to an increase in the risk of poverty). The problems of the employment, the working time are equally relevant for employers and trade unions, as well as for the government. For the former, it is important to ensure the competitiveness of the company. And achieving this is impossible without highly qualified personnel and the optimization of the working time fund utilization. For the second, the protection of workers' rights is a priority. Therefore, any changes in qualification requirements, changes in work schedules are all subject to negotiations. For the government, the disregard of the problem will bring about the deceleration of the economic growth and an increase of the quantity of social transfers; and the lack of a coherent educational strategy in the preparation of the workforce contributes to that.

4. CSR in Ukraine: best practices

The distinctive feature of the CSR implementation in Ukraine is the selectivity of programs implemented by local companies. Existing projects are more often associated with raising the standards of social and labor relations. The authors believe that such a phenomenon contribute to the historical features of the development and the structure of the business. According to the research conducted by the Center "Rozvitok KSW" the CSR interpretation is often associated with the level of the business: small businesses are aimed at improving the working conditions of their staff, and large businesses – to promote the regions development. (Zinchenko A., Saprykina M., 2017) It is also interesting that only 22 participants were nominated in the annual competition in 2018 to determine the best case of CSR. Among them (the sustainable development goal №3) the winner was the case of the operator of state lotteries "MSL" with its case "Lottery as a Foundation for the development of children's football in Ukraine». (LB.UA, 2018) In the dynamics of changes in the understanding and recognition of CSR in Ukraine, there is a shift from the practice of implementing sustainable measures relating to their own employees (raising wages, introducing flexible forms of work, non-discrimination in hiring) in 2005-2010 (Zincenkochenko A., Saprykina M., 2010) to the implementation of important state programs (help soldiers in ATO, residents of the ATO zone) in 2010-2018 (Zincenkochenko A., Saprykina M., 2017).  At the same time, most of the companies are focused on the implementation of CSR practices in the field of social and labor relations (according to the 2018 report, the most common trend in the CSR implementation is the policy of the development and improvement of working conditions of personnel (76%). (Zincenkochenko A., Saprykina M., 2017).

Analyzing the reports of financial and economic activities of large companies, it was obvious that CSR programs are directed at a logical connection of the company's capabilities and the implementation of the sustainable development goals in the framework of the development of a successful brand, i.e. the practice of improving social and labor relations is very common. At the same time, the role of social partners is kept hidden; the emphasis is on the merits of management (leadership). This can be explained as follows. Most often, these enterprises initially owned social infrastructure facilities and in current conditions use their capabilities to implement the provisions of collective agreements and CSR programs in parallel.   For example, the policy of CSR in Ukrzaliznytsia PJSC implies the development of its own social infrastructure: health care institutions, professional development centers, boarding houses, sanatoriums, dispensaries, children's health camps, children's Railways, sports clubs, recreational facilities, housing and other social and cultural facilities (Integrated report of Ukrzaliznytsya PJSC, 2017). At the same time, these objects existed in the company for a long time (since the collapse of the USSR), and the costs of their maintenance were often reduced rapidly. The company's management states an absolute increase in social infrastructure spending, but taking into account inflation, the situation is different (in prices of 2017, spending in 2016 amounted to UAH 342861.7 thousand, while in 2017 it was only UAH 32238.6 thousand). At the same time, the collective agreement also contains provisions of the support and development of the social infrastructure, compliance with the legislation on working conditions, and conditions for remuneration (Collective agreement between the administration of the State territorial-branch association "South-Western Railway" and the Road Committee of the trade union and Available on the Internet:  transport builders of Ukraine, 2018). That is, we can conclude that the actions of the social partners are inconsistent, and the initiative to use the tools of social dialogue to implement CSR programs is weak.

Another example is the Metinvest group. Its CSR program is directed towards development of several areas - improving social and labor relations, the condition of the environment, building a partnership with the society. The authors noted that initially the company had a developed social infrastructure, but today these objects do not belong to the structural units of the enterprise. Unfortunately, there are no obligations regarding the possibilities of health recovery, professional training in their collective agreement (Metinvest, 2016). At the same time, the company assists hospitals in its region by providing them with equipment and carrying out repairs to buildings, the management has also introduced mandatory professional inspections. A special attention is given to safety at work issues. Here, both trade unions and the management of the company unanimously support the introduction of the world standards in this field. The authors of the Metinvest CSR policy clearly follow the trend of building close and fruitful ties with the administration of administrative units, where the company accepts this cooperation as social dialogue (changing the format of social partnership to the format of interaction with the community). For example, in 2013, health care, access to quality drinking water, education, provision of favorable conditions for business development and development of socially important infrastructure were named as the priorities of social partnership (Metinvest, 2013), which was included in the list of CSR targets. In 2016, an agreement on social partnership with the authorities of the city of Kryvi Rih implied investment of more than 30 million UAH (1kr.ua, 2016). Thus, the company's understanding of social partnership is close to understanding CSR with regard to the society.

NAEC Energoatom is actively working towards the implementation of the Sustainable Development Goals. The entire CSR policy of the company is based on these goals. Particular attention is paid to environmental protection. As a member of the IAEA, Ukrainian nuclear power plants are being assessed for their environmental safety by international experts. Thus, in 2018, there was an inspection at the South-Ukrainian NPP (International Atomic Energy Agency, 2018), where experts noted the success with the aging management and started various measures to prepare for a safe LTO (Long Term Operation). It is important to point the tendency to expand the share of "clean" energy in Ukraine: the expansion of the sphere of generation and usage of solar energy. It is also important to include the implementation of the sectoral and collective agreements as components of CSR. According to the report of NAEC Energoatom, the company implements world standards in gender policy, cares about employees’ health (in 2017, almost 50% of employees improved their health), cooperates with universities, including organization of internships for students (207 students studied in NAEC in 2017, and 676 engaged in practical work), constantly trains and improves their staff skills, etc. Mulyar Grigoriy, 2017). The contribution of the company to the development of volunteering in Ukraine and interaction with communities of administrative-territorial units is massive. Such an active position of the company is appreciated accordingly by the society: it is ranked the third among Ukrainian enterprises in the transparency index and the first among state enterprises, receiving 73 points out of 100 possible (CSR Development Center, 2017).

In the list of Top companies that implement the best practices of CSR there is also the media holding "1+1". A special place in their policy is taken by the promotion and support of a healthy way of life, as well as the training of personnel, advocating care about environment (the company has launched the “Green Office” project in 2012) (Media group «1+1», 2017). However, the company does not publish the social partnership related issues.

Thus, we can see that CSR programs of the leading companies of Ukraine tend to include the sustainable development Goals into their missions.

5. Challenges and prospects of development of social partnership in the framework of the model of social responsibility in Ukraine

Unfortunately, there are no generally accepted quality standards for social partnership regarding the implementation of social responsibility principles. Scientists and government agencies in Ukraine use official statistics, which offer only indicators of the number of employees covered by collective agreements and the number of contracts themselves. Indirect indicators can also be the number of strikes that can be monitored on the website of the National Council for Mediation and Reconciliation. Reliable data sources include social surveys on the level of public confidence in various institutions (Kiev International Institute of Sociology, Razumkov Center). As we can see, these data are very scarce and do not give a proper quality characteristic of the matter. Therefore, the authors recommend using the following indicators: the potential of wages, risks of unstable employment, general indicator of working conditions, and satisfaction with social dialogue. These indicators are evaluative, translating the effectiveness of social partnership at various levels. The choice of such indicators is determined by the fact that the authors are of the opinion that social partnership is set to optimize the use of labor resources with the highest possible level of the company and society development. In addition, the choice of these indicators is determined by the provisions of the social security strategy, the purpose of which is to ensure sustainable development[5]. At the same time, the potential of wages (I₁) is understood as the potential possibility of basic labor income to ensure not only the reproduction of labor, but also professional development and the improvement of the quality of human capital. The calculation of the indicator is given as formula 1.

                                       (formula 1)

where, Р₁        - the share of expenditures in the monetary incomes of households on health care, %.

           Р₂        - the share of expenditures in the monetary incomes of households on education, %.

            Р₃       - the share of expenditures in the monetary incomes of households on recreation and cultural activities, %.

            С      - the share of wages in the monetary incomes of the population, %.

According to the data of the State Statistics Service of Ukraine (Statistics Service of Ukraine, 2018.  The work of Ukraine in 2017), the authors determined that with each year the indicator of the salary potential decreases (Fig. 3), i.e. the negotiation process is not effective enough. This may lead to the further slowdown of the economic development, since risks of building an economy with low-skilled labor increase.

Figure 3. Variations of the potential of wages level in Ukraine, the index (2010-2017)

Source: self made.

Figure 3 shows that the wages potential has been steadily decreasing since 2013, which indicates for wage earners - a reduction in the ability of the working population to improve their qualifications, maintain their health at the proper level, invest resources into the development of themselves and their children, while for social partners - the inability to take into account market changes in the formation of the vector of development of social and labor relations.

Under the risks of unstable employment, the authors understand the increase in the share of employment in the informal sector and the increase in the load on a single free workplace (this situation indicates a probable decrease in the income of the population due to a decrease in the share of paid productive working time). The calculation of the indicator is presented in formula 2.

(formula 2)

where, I₂         - the indicator of the risks of unstable employment.

    К_n       - the labor force participation rate in the informal sector.

            K_v      - the load factor for single workplace (vacancy).

The calculation results are shown in Fig. 4.

Figure. 4. Indicator of the risk of unstable employment in Ukraine, the index (2010-2017)

Source: self made.

The calculation results (Fig. 4) indicate that social partners are active in resolving labor market issues and have achieved positive results (reduced shadow employment, improved rules for regulating precarious work).[6]

The general indicator of working conditions is the measure of losses caused by non-compliance of working conditions to the generally accepted standards, i.e. loss of working time due to incidents. According to the State Statistics Service of Ukraine (Statistics Service of Ukraine, 2017 &2018, Occupational injuries), from 2010 to 2015, the quantity of “lost” time increases by an average of 5.6% annually, but in 2017 there was a peak in number of injuries (compared to 2015, the figure increased by 23.9 %). In general, over the analyzed period, the amount of time lost increased from 40.1 hours in 2010 to 55.4 hours in 2017.

Regarding satisfaction with the social dialogue, this indicator reflects the level of trust in trade unions and losses from conflict situations. The authors believe that the presence of strikes indicates a decrease in the effectiveness of social dialogue; therefore, the overall level of trust will decline. At the same time, trust is evaluated as a result of the coverage of employees by collective agreements. Thus, the indicator of satisfaction with social dialogue can be measured (formula 3):

                                      (formula 3)

where,            S           - level of satisfaction with social dialogue, index.

                     K_d         - the level of involvement (coverage) of employees by collective agreements, index.

                      K_s          - the loss factor of working time due to strikes.

According to the calculations, the level of satisfaction with the social dialogue among employees declines (Fig. 5).

Figure. 5. Level of satisfaction with social dialogue in Ukraine, the index (2010-2017).

Source: self made.

The data in Figure 5 indicate a decrease in the ability of representatives of employees to realize and protect the rights of workers in full, which is manifested through a decline in the level of trust. This indicator also speaks of problems in the field of social dialogue: the unwillingness of social partners to compromise, artificially restricting social initiatives, and pressure from the state on the institution of social dialogue. In fact, we observe an acute rejection of the state by both trade unions and employers who refuse to negotiate (for example, the general agreement for 2017 was adopted only in 2019).

A general analysis of challenges related to the social partnership, which the authors examine under the principles of social responsibility (Table 2) shows the following. Despite the worldwide tendency to the decrease in the involvement of hired labor in the social dialogue (Damian Grimshaw et al 2017), Ukraine still has a fairly high level of coverage of workers by collective agreements; however, the trust in the institution of the social dialogue is declining.

Table. 2. A general analysis of the quality of social partnership in the context of the implementation of the principles of social responsibility in Ukraine*.

^* as built by the authors («+» - positive trend; «-» - negative trend)

Thus, the focus of the institution of social partnership is its effectiveness. With all the legal formalization of the process, social partners cannot fully meet all the needs and interests of the society. Common socio-economic factors (crisis), as well as the lack of effective mechanisms of social partnership in the public sector often influence the effectiveness.

In General, the instruments of social partnership to solve the problems of social responsibility in Ukraine are not sufficiently utilized. The analysis of the sectoral agreements of leading Ukrainian companies (Aviation Industry Sectoral Agreement for 2016-2018; Energoatom, 2017; Sectoral agreement between the Ministry of Infrastructure of Ukraine and the Council of the Union of Railway workers and Transport Builders of Ukraine for 2017-2021; The sectoral agreement between the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine, the Association of Employer Organizations "All-Ukrainian Confederation of Employers of the Housing and Communal Services of Ukraine" and the Central Committee of the Union of Housing and Communal Services Workers, Local Industry, Consumer Services of Ukraine for 2017 - 2018 years)  is given in Table 3

Table. 3. Instruments of social partnership to solve the problems of social responsibility in Ukraine.

Source: self made

Based on this, in the long term, the social partnership can become an effective tool for social responsibility, provided that trade unions are more actively involved in order to enact the principles of social responsibility, and most importantly, with the real implementation of the previously made commitments, maintaining the level of justice that is accepted in a given society.

6. Implementation of CSR in the era of digitalization and the 4th industrial revolution:  using the tools of social partnership

Taking into account the nuances of the digital economy, the authors can see the following opportunities for social partnership for CSR development:

–            Open dialogue platform – talks and discussions can and should be held online, so that interested parties can receive information regardless of the possibility of being present at the negotiations. It should be noted that the registration for viewing such a broadcast should not be closed, and information about the dialogue have to be announced at least 10 days before the event. This approach makes it possible to review the event at a convenient time for a more detailed analysis of proposals for researchers into CSR and social partnership. Also, such a platform will become an information resource where you can store all the materials, the results of negotiations, etc.

–             Innovation and experience platform (see Fig.6) – the accumulated experience in solving social and labor problems, implementation of CSR provisions and implementation of sustainable development Goals should be saved in the cloud and form a Database of CSR and social dialogue. In fact, digital technologies make it possible to create a database of project descriptions and proposals, successful solutions, as well as the scientific studies. This will enable all participants in the social dialogue to choose and see the possibility of implementing a specific activity for their organization, knowing in advance all possible risks. Of course, such a database should be accessible to all participants (ideally, such a database can contain information about CSR companies from all around the world, social partnership practices at different levels and in different countries). A special feature of the platform should be its innovative component. We mean that the database should be filled with projects of third parties to address the objectives of the Sustainable development goals. For example, a University or a group of scientists, conducting a study of CSR and the impact of any factors on it, can offer CSR models for enterprises that reached different stages of development (growth, decline, etc.). Thus, having some abstract models, practitioners (partners) can choose the most appropriate options and ways to achieve CSR goals.

Figure. 6. The platform model of innovation and experience for the CSR projects (DB – a database).

Source: self made

–            A platform for selecting the optimal project – given the huge amount of information, both statistical and qualitative on CSR and social partnership issues, the compiled database (see innovation and experience platform) should be able to carry out additional functions. First, it is the analysis and the development of criteria for the selection of high-quality projects, taking into account the nuances of the legislation and values held by society. Secondly, on the basis of models, the standard algorithms for achieving CSR goals and forms for evaluating the effectiveness of CSR programs and the implementation of social dialogue can be proposed.

 

Let’s consider the example of Ukraine. Domestic legislation (Law of Ukraine 2010; Law of Ukraine, 1993) implies that social dialogue takes place at several levels: state, industry, region (based on the law, this is an administrative-territorial unit) and enterprise. Accordingly, at each level, different organizations will be acting as participants. Upon close examination, we note that the same participants can be involved at any level of social partnership. For example, in Ukrzaliznitsa (the company is a monopolist in the railway services market), the company's top management acts as a signatory of a collective agreement and as a signatory of a sectoral agreement, the trade union organization of railway workers and transport builders of Ukraine also participates in these two levels. In this case, a branch agreement is a collective agreement. At the same time in the regional offices there are separate collective agreements. Such a situation stimulates conflicts of interest between structural units and reduces the weight of a collective agreement. In addition, some large companies (for example, Metinvest) are located in a limited area (usually in one or two administrative-territorial unit). At the same time, they cannot participate in the negotiations at the regional level, since they belong to the relevant industry. Therefore, the company (management) agrees on investment projects with specific heads of the administrative-territorial unit, while other social partners do not participate in this.

Therefore, by having a platform of experience and innovation, you can choose the optimal model of social dialogue for both the company and the country. The authors consider the combined model of social dialogue to be optimal for Ukraine. It assumes:

1.          Preservation of the General agreement to determine strategic priorities, to consolidate the basic social and labor standards. In fact, at this level, there should be a social dialogue between society, the state and business, i.e. the discussion of basic the social and labor issues. Thus, social partners should be not only trade unions, employers' associations, representatives of the government (Ministry), but also public organizations – associations of professionals, namely in the IT field, human rights protection groups, scientific communities.

2.          Modernization on the industry level. Since agreements at this level are signed between the relevant ministries and trade Union associations, it is necessary to involve the scientific community to solve social problems. It is the scientific community that will give impetus to the introduction of the leading CSR practices to the management of companies and the state, will help businesses to justify innovations and develop the correct strategy for the implementation of commitments. Based on this, social dialogue should be conducted exclusively for the organizations of the public sector of the economy (education, health, culture, sports), as well as General purpose (trade), and infrastructural (transport, communications, energy). This is important from the point of view of the social and economic security of the country, and will make the negotiation process more transparent and goals of social agreements more achievable and realistic.

3.          Modernization of the regional level. Unfortunately, this level in Ukraine is very primitive, because it covers only the sphere of public utilities (note by the authors – now this area is undergoing radical changes) and is oriented on the region as an administrative-territorial unit. At the same time, there are no employers' associations on a regional basis. It is impossible to tell whose rights are defended by the Regional trade Union cells, i.e. they are just formal. There is a dissonance between regional and industrial levels of social dialogue, misunderstanding of the role of these agreements. At the same time, the authors believe that regional agreements could become an effective tool for solving most of the social problems of the regions if they undergo the changes in the format and attract real participants. Thus, as the social partners there should be representatives of business in the region, local administrations and public organizations. The issues discussed by the social partners may concern all areas: economic, social and cultural. The purpose of this agreement is the sustainable development of the region by several ways, including through the formation of an attractive business environment, stimulating the improvement of the quality of labor potential, etc.

4.          Taking into account the stages of development of the company during the preparation and signing of collective agreements, the development of CSR strategies. Having conducted the content analysis of collective agreements in the leading companies of Ukraine and correlating their level of socio-economic development and organizational maturity, the authors came to the conclusion that in the preparation of CSR policy and collective agreements it is necessary to consider the willingness of companies to meet their commitments and risks of the market. Based on this, the authors have compiled a table of key issues that are important for the negotiation process in companies at different cycles / stages of development (see Table 4).

Table.4. Key issues of negotiation process in companies at different cycles / stages of development.

Source: self made

- Public involvement. The involvement of the public into the development of CSR policy should be taken as an important component. The authors believe that social dialogue should not be limited to the level of the company. Thus, all interested persons and organizations, i.e. the public, should be involved into execution of the tasks, both of social dialogue and CSR. The current trends in state governance show that governments cannot fully solve the social problems of society like human trafficking or child labor. People who have suffered from those evils often cannot fully recover, they are withdrawn and depressed, cannot communicate with government officials. And in this case, the help of public organizations is invaluable (the one who survived the horrors of human trafficking will better understand the affected party and will be able to help suffering person to return to normal working and social life). Public organizations provide psychological support to victims, as well as training the people with a high risk factor to recognize the dangers of human trafficking. In addition, a pilot project on entrepreneurship training for victims of violence (thereby restoring faith into the jurisdiction and the law) was carried out in the early 2000s with the assistance of the ILO (Study of the Situation in the Field of Labor Migration: Ukreina's Analytical Report, 2005). For example, in Ukraine, the NGO La Strada has been conducting educational work for 16 years (according to their statements they organized 24 607 preventive actions (interactive workshops, lectures, trainings, workshops) to more than 656 828 of members of the target group) (La-strada , 2016). That is why public organizations are more sensitive to social problems and can bring forward the most important tasks for business.

7. Conclusion and discussion

The rapid development of the digital economy contributes to the formation of new management models, dictates additional requirements for the training and development of labor resources, and increases the responsibility of each market actor for the final results of work. At the same time, all countries face social challenges of the 4th industrial revolution, which can be solved only in dialogue with all market participants: trade unions, business, society (public organizations), the state and scientific communities. It is important that all participants are concerned with achieving the sustainable development Goals. Therefore, in a joint effort, the challenges of the digital economy become transformed into opportunities.

For Ukraine, the search for solutions to its socio-economic problems, especially in the era of digitalization, to a greater extent lies in the area of improving social dialogue and expanding CSR practices. Unfortunately, our state often ignores the opinion of social partners and imposes a tough policy, which leads, even with the right decisions, to a lack of understanding and opposition to the changes. For example, the implementation of overestimated obligations in the remuneration of teachers was ultimately impossible due to the lack of real funding sources (as it was indicated by employers and trade unions) and provoked the governement's demand to optimize the number of staff and educational institutions (which caused a huge negative resonance in society). In addition, the lack of consultation with the scientific community only exacerbated the situation, as the proposed unreasonable approach to the differentiation of wages only exacerbated the problem of turnover of highly qualified personnel.

Today Ukraine is actively developing the IT sector, which gives hope for a positive result in the development of an open democratic state and the fight against corruption. And despite the fact that the country is taking only the first steps in building of an open social dialogue, the adoption of the authors' findings will accelerate these processes. In the framework of interaction proposed by the authors, the digitalization not only delivers the challenges, but also simplifies and opens the dialogue between partners, allows using the potential of social dialogue for the implementation of corporate social responsibility strategies of companies and the state.

This study is a continuation of the scientific search for sustainable development tools and solutions to social partnership problems in the world. Given the relevance of the issue of collective responsibility of social partners, the expansion of the circle of participants in social dialogue and the subject of negotiations, the article has a number of discussion points. Since the authors rely on theories in which the basis of human and group behavior is not only economic motives, but also values and social goals, the conclusions have a number of limitations: in case of economic crises and changes in the social structures of society, we can observe both the cohesion of society and deepening of its fragmentation, which against the backdrop of state corruption can devalue any agreements reached between the main social partners. This phenomenon requires a more in-depth study and identification of causes, methods of alleviating the risks. In addition, they require further substantiation of the criteria for choosing a CSR model for various formats of social dialogue and social and labor relations when changing the country's specialization. It is important to understand what the roles of each partner will be and what is the responsibility in a particular segment / subject of a social contract.

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