The research of corporate social responsibility practice deserves particular attention in conditions of formation, establishment, and development of information society as it has been in a strong need for fundamental changes lately. Pervasive digital technologies have a significant impact on the development of social, economic, and environmental domains of economic entities’ functioning. In these conditions, the transparency and openness of the companies’ activity and promotion of their sustainable development become the necessary precondition for the improvement of business reputation, the establishment of consistent cooperation with business partners, and the reinforcement of competitive positions on international markets.

The following contemporary foreign and Ukrainian researchers are addressing the issues of corporate social responsibility in their studies: R. Barth, F.Wolf [1], І Barkova, Т. Kinyeva [2], N. Kosar, V. Pylypenko, N. Kuzyo [4], W. Visser, D. Matten, M. Pohl, and N. Tolhurst [5]. The lack of consensus in understanding corporate social responsibility (CSR) has led to the emergence of several controversial scientific approaches. Meanwhile, understanding the importance of this category generates the need to examine conceptual foundations of corporate social responsibility with the orientation on its sectoral features.

According to R. Barth and F. Wolf, corporate social responsibility should be considered as a voluntary contribution of a company to the development of society in social, economic, and environmental domains, which is directly related to the company’s principal activity and is carried out mostly additionally in relation to legal requirements [1]. The researchers see CSR as a social and political management resilience regime, i.e. public policy.

W. Visser and D. Matten take a slightly different position. They define the corporate social responsibility concept as the obligation of current companies toward society that goes beyond the boundaries of their commitments to shareholders and investors [5]. Businesses should certainly generate income for owners and secure the maximum period for the enrichment of stakeholders. However, the interested parties should be convinced that businesses also have some responsibility toward customers, government, the natural environment, and society in general.

The views of I. Barkova and T. Kinyeva are worth considering as they argue that corporate social responsibility stipulates that businesses voluntarily undertake additional commitments to society and contribute much to the improvement of the quality of life, in addition to compliance with economic and quality production laws [2, p. 29-30].

Conducting the critical analysis of many approaches to the interpretation of corporate social responsibility gives the grounds to define it as a social phenomenon generated as a result of compliance with certain rules and standards of behavior, which shows itself in the respective attitude of an economic entity to its product or service, customers, employees, partners, and other stakeholders[7, p. 185].

While corporate social responsibility was initially seen as the specifics of the organization and management of global corporations, nowadays, there are standard technologies to manage corporate responsibility successfully implemented by entrepreneurial entities of different ownership forms and sizes and types of business activity existing on the global stage [4]. Therefore, corporate social responsibility is an essential component of strategies of the companies that establish separate subdivisions directly involved in the implementation of corporate social responsibility, create the position of vice-president in CSR, use the corporate culture codes, and develop an integrated system of development and dissemination of social reports, etc.

ESG Transparency Index is a comprehensive indicator that estimates the transparency of Ukrainian companies’ corporate management by ESG criteria (social, environmental, and governance). According to the Index, the Top 10 companies active in CSR implementation in 2020 were PrАТ “VF Ukrayina”; АТ “Pershyi Ukrayinskyi Mizhnarodnyi Bank”; DTEK Group; AB “Ukrhazbank”; ІP “Koka-Kola Beveridzhyz Ukrayina Limited”; DP “NАЕК” Enerhoatom”; PАТ “Myronivskyi hliboprodukt”; PrАТ “NЕК “Ukrhodroenerho”; АТ “Ukrayinska Zaliznytsya”, and NАК “NAftohaz Ukrayiny” [3]. The companies operate in different economic industries and activity domains. Their main social activity directions include corporate governance, social partnership, labor protection, environmental protection, customer relations, social facilities maintenance, staff development, financial reporting, and website navigation and accessibility.

It is worth mentioning that the transparency level of Ukrainian companies has been characterized by growing dynamics lately. The average level of Ukrainian companies’ information disclosure by ESG parameters is 26.4% in social aspects, 36.6% in environmental, and 27.7% in corporate governance [3].

The growing number of companies developing and implementing anti-corruption and compliance policies and programs for corporate responsibility incorporation in supply chains is a positive trend in the development of corporate social responsibility.

The second CSR research in Ukraine conducted by Pro Bono became the basis for the annual budget allocated by large Ukrainian companies for corporate social responsibility measures in 2020-2021.

The average annual budget allocated for CSR projects of surveyed 44 companies was over UAH 3 billion in 2020-2021 [6]. The IT industry (37%) and manufacturing (11%) had the highest share among the representatives of large businesses actively implementing CSR projects. It is worth mentioning that most companies implement CSR initiatives in education, labor conditions improvement, staff development, and organization of charitable fundraising.

Quick processes of digital transformations objectively generate the need for further examination of problems related to the formation and development of corporate social responsibility in conjunction with the companies’ competitiveness. The causes of this also include redefining the companies’ models and entry into virtual business space through the development of digital branding, websites and social network profiles, and the creation of an image in virtual space.

Meanwhile, it is worth specifying a range of main issues constraining the development of corporate social responsibility in Ukraine. In the first place, it is about low macroeconomic stability and security indices, distrust of business representatives, employees, state, and consumers, lack of funds to implement and develop CSR, justified fear that socially responsible measures will be seen as the proof of profits concealment, and lack of tax preferences.

Moreover, there is a business dilemma in the domestic business environment regarding the reasonability of carrying out social activities that are perceived ambiguously by the companies’ management. Mostly, social measures are seen as additionally spent financial and human resources that do not bring obvious results but rather affect the financial-economic results of the companies’ activity, increase prices for goods and services, and deteriorate competitiveness. The absence of opportunities to determine the results of social activities is the main explanation for this opinion, although their effect is complex and long-lasting.

Taking into account the fact that economic efficiency is the major business priority and social activity cost doesn’t have direct financial results, corporate social responsibility from the viewpoint of commercial efficiency is characterized by some negative features. So most businessmen lose their motivation to invest in objects that bring benefits in the very long run.

The absence of accountability in corporate social responsibility has a significant impact since the business doesn’t bring direct responsibility toward society, and the mechanisms of the relationship between corporate social responsibility and civil society are lacking. The conceptual foundations of corporate social responsibility are being distorted and business is engaged in social activity due to exemption from taxation of income spent on social activities.

In this context, concessional lending and the reduced administrative burden should become the major incentives to introduce CSR for Ukrainian companies. Moreover, a legislative basis should be developed on a national level to promote this activity and increase the awareness of responsible business conduct (implementation of awareness-raising programs and holding trainings). It will contribute to the adoption of the National Corporate Social Responsibility Strategy that should provide the benchmarks and perspectives for support and recognition by the state. It is also necessary to develop a single approach (educational standards) to teaching certain problems in the framework of organizational-managerial disciplines considering the digitalization processes.

Efficient public support and introduction of the system encouraging such behavior, financial capacities for social contributions, as well as the respective legal basis on social responsibility, are essential strategic priorities in the development of socially responsible business conduct.

Therefore, socially responsible business as one of the important components of a transparent and efficient system of corporate management is characterized by advantages that help improve many social life domains and impact the business environment in the country. Nowadays, many companies, in the course of improvement of their activities, secure the conditions for the development of society, improve the business environment, create favorable conditions for employees, and take measures to protect the environment. Meanwhile, the activity is acquiring systemic nature and is considered as a business strategic development vector that impacts the solution of social problems in the society in general, in addition to securing competitive advantages for a company.