Corporate Social Responsibility (CSR) is one of the modern concepts in the management field which
become a catalyst in developing the future of the business sector. Several major academic and practical milestones have influenced the development of the concept of CSR. One of the most important milestones that shaped the future of CSR was the United Nations Global Compact (UNGC). UNGC's missions and principles formed an application framework for integrating social and environmental approaches into corporate business activities. It has been proved through this paper the interrelationship between the principles of CSR theories and the principles of UNGC. Followed by an analysis of the effectiveness of the UNGC principles in adopting sustainable development goals and enhancing enterprise competitiveness

Brin, P. V.

Nehme, M. N.

English

Library of National Technical University "Kharkiv Polytechnic Institute"

 177 
 
Keywords: corporate social responsibility, corporate social responsibility, competitiveness, reputation and 
image, financial indicators. 
 
 
Brin P., PhD., 
Professor of Management & Taxation Department, 
National Technical University “Kharkov Polytechnic Institute’ 
pavelbrin@ukr.net 
Nehme M. N.,  
Ph.D. student of Management & Taxation Department, 
National Technical University “Kharkov Polytechnic Institute’ 
mohammadnehme@gmail.com 
 
THE INTEGRATION BETWEEN CORPORATE SOCIAL RESPONSIBILTY AND 
SUSTAINABLE DEVELOPMENT GOALS 
 
Summary. Corporate Social Responsibility (CSR) is one of the modern concepts in the management field which 
become a catalyst in developing the future of the business sector. Several major academic and practical milestones have 
influenced the development of the concept of CSR. One of the most important milestones that shaped the future of CSR 
was the United Nations Global Compact (UNGC). UNGC's missions and principles formed an application framework for 
integrating social and environmental approaches into corporate business activities. It has been proved through this paper 
the interrelationship between the principles of CSR theories and the principles of UNGC. Followed by an analysis of the 
effectiveness of the UNGC principles in adopting sustainable development goals and enhancing enterprise 
competitiveness. 
Key words: Corporate Social Responsibility, United Nation Global Compact, Sustainable Development Goals, 
Competitiveness. 
 
Introduction. Since the mid-twentieth century, governments and international 
organizations have begun to reduce some worsening economic, social and environmental 
problems caused by global wars, monopoly of natural resources, and globalization system. At the 
same time, some stockholders in international companies have adopted philanthropic activities to 
reduce social problems and improve the quality of life in their surrounding areas. During the year 
1953, economic researcher Howard Bowen published his first book " Social Responsibilities of 
the Businessman ", where he considered that commercial companies should bear social and 
environmental responsibilities in addition to its economic responsibility which is making profits 
and maintain sustainability [1]. Through Bowen's book, the concept of Corporate Social 
Responsibility (CSR) appeared for the first time in an academic context. From that time, the 
concept of CSR has undergone many changes and evolved significantly to adapt to economic, 
social and environmental requirements. Many basic milestones transformed the CSR concept 
from a general idea into an academic theory that companies could apply in their strategic plans. 
Until nowadays, there is no significant definition for the CSR concept, because it is 
diversified into many concepts and linked to many theories. But the most common definition 
about this concept was introduced by the United Nations Industrial Development Organization 
“Corporate Social Responsibility is a management concept where companies integrate social and 
environmental responsibilities and activities with their production operations and with their 
interactions with various stakeholders” [2]. Many significant practical milestones have affected 
the evolution of the CSR concept over the last years, as the World Commission on Economic and 
Development in 1987, the International Standards Organization and the European Parliaments, 
where all of these organizations and committees have recommended some activities and forms to 
implement social responsibility projects and activities by multinational enterprises and small and 
medium enterprises. However, the most significant organization which connect CSR concept 
with sustainable strategies of an enterprise is the United Nation Global Compact (UNGC) [3]. 
Through these papers, an analysis for the role of UNGC principles in motivating enterprises to 
adopt CSR approaches has been done.  
Purpose. The paper aims to present an effective model for implementing Corporate Social 
Responsibility by various types of enterprises. This model relies on adopting the UNGC 
 178 
 
principles to reach the Sustainable Development Goals and to strengthen competitiveness 
efficiently. 
Results. The United Nations Global Compact was founded in the year 2000 by the World 
Economic Forum of the United Nations in the USA. UNGC is considered nowadays as the 
largest voluntary global governance and the world's largest corporate sustainability initiative 
with 13000 corporate participants and other stakeholders over 170 countries that address social 
and ecological responsibilities for Multi-National Corporations [4]. Two main missions for the 
UNGC: The first mission is to align the strategies and operations of the international companies 
with the ten principles under the category of human rights, labour, environment, and anti-
corruption, where these principles represent a practical framework for implementation CRS 
methods and approaches. The second mission of the UNGC is to take strategic actions to 
advance broader societal goals, such as the UN Sustainable Development Goals, with an 
emphasis on collaboration and innovation. 
The interrelation between the ten principles of UNGC and the CSR methods and 
approaches were well described by Christian Voegtlin and Nicola Pless “the UNGC succeeded in 
developing a broad normative Conesus on global ethical values and CSR standards through its 
ten principles” [5]. These ten principles represent an umbrella that covers the area of all 
principles mentioned in the CSR theories and approaches. James Post added that the ten 
principles of the UNGC represent the most important milestone in CSR evolution and represent 
the future of global corporate responsibility even [6]. It has been concluded also from various 
academical researches that three main CSR theories and methods are the most used by 
corporations which are the Carroll CSR method, the Triple Bottom Line Method and the 
stakeholder’s methods, but there are common features between the three methods where a 
corporation could target to implement CSR efficiently on endogenous level (inside the firm) and 
exogenous level (outside the firm) [7]. 
Archie Carroll one of the most popular scholars in the business ethics field, who developed 
Carroll CSR approach and categorized the responsibility of an enterprise into 4 main 
responsibilities (economic responsibility to make profit, legal responsibility to obey the law, 
ethical responsibility to do what is right and inspired by the law, and the philanthropic 
responsibility to be a good corporate citizen) [8]. 
John Elkington developed the Triple Bottom Line theory for CSR that corporations must 
incorporate three sustainable dimensions as a framework for CSR implementation. According to 
TBL theory, the three main sustainable dimensions are economic responsibilities, environmental 
responsibilities and social responsibilities. These responsibilities are connected with profit, 
people and the planet [9]. 
The stakeholder theory or approach developed by many scholars, but the most important 
were Edward Freeman and John Macvae who mentioned that the main responsibility for any 
enterprise is to maintain the balance between various stakeholders, and to satisfy their needs in a 
reasonable way [10]. 
It is obvious that three theories have different perspectives concerning the responsibility 
that should be carried on by a corporation. While it has been recognized that integrating the 
common respective or responsibilities mentioned by the three theories in the operational process 
of a company may cover all the aspects in an ideal way. The common responsibilities are 
economic responsibility, social responsibility, environmental responsibility, political and ethical 
reasonability.  
For that, table one shows the interrelation of the ten principles of UNGC with the common 
principles of the three CSR theories (economic principles, ethical principles, social principles, 
environmental principles, political principles with the level of implementing these principles 
(endogenous level, exogenous level or both of them). 
It is important to note that, if a company wants to become a member of the UNGC it has to 
adopt the ten principles and it must present an annual report for its achievements in the ten 
principles, the annual report is called Communication on Progress-COP report. If the company 
 179 
 
didn’t present the report in the first year it will be considered as a non-communicated company, 
and if it didn’t present in the second year it will be delisted from the UNGC membership [11]. 
From this point, it is clear that the COP report aims to maintain transparency through disclosing 
all operational activities of an enterprise and show the integration of the ten principles in 
enterprise operations. 
 
Table 1. The interrelation between the UNDG Ten principles and the common responsibilities of 
CSR theories.  
Ten Principles of UNGC Level of 
implementation 
Common responsibilities 
of CSR theories 
Human 
rights 
1. Businesses should support and 
respect the protection of 
internationally proclaimed human 
rights 
endogenous ethical responsibility 
social responsibility 
political responsibility 
2. Businesses should make sure 
that they are not complicit in 
human rights abuses 
endogenous ethical responsibility 
social responsibility 
Labor 3. Businesses should uphold the 
freedom of association and the 
effective recognition of the right 
to collective bargaining 
endogenous ethical responsibility 
social responsibility 
4. Businesses should eliminate all 
forms of forced and compulsory 
labor 
endogenous ethical responsibility 
social responsibility 
political responsibility 
5. Businesses should effectively 
abolished child labor 
endogenous and 
exogenous 
ethical responsibility 
social responsibility 
political responsibility 
6. Businesses should eliminate 
discrimination in respect of 
employment and occupation 
endogenous ethical responsibility 
economical responsibility 
 
Environm
ent 
7. Businesses should support a 
precautionary approach to 
environmental challenges 
exogenous environmental 
responsibility 
 
8.Businesses should undertake 
initiatives to promote greater 
environmental responsibility 
endogenous and 
exogenous 
environmental 
responsibility 
9.Businesses should encourage 
the development and diffusion of 
environmentally friendly 
technologies 
endogenous and 
exogenous 
environmental 
responsibility 
economical reasonability 
Anti-
Corruption 
10. Businesses should work 
against corruption in all its forms, 
including extortion and bribery 
endogenous and 
exogenous 
political responsibility 
economical responsibility 
 
As for the second mission of UNGC, which is to raise awareness toward the seventeen 
sustainable development goals with a focus on cooperation and innovation. Such a mission aims 
to achieve cooperation between stakeholders (companies, government agencies, civil societies 
and citizens) for a better future, free of Poverty, injustice and environmental exhaustion. Lila 
Karbassi, chef of the SDGs program confirmed that “in January 2016, the 17 Sustainable 
Development Goals has been considered as sustainable development agenda till the year 2030. 
The SDG has been adopted by various world leaders in a historic summit organized by the 
 180 
 
United Nations and the World Economic Forum. Over the next fifteen years, countries will 
mobilize their efforts to apply these universal goals which aim to fight inequality, tackle climate 
changes and ensure that no one is left behind [12]. Accordingly, figure one shows the seventeen 
SDG presented by the UNGC.  
 
 
Figure 1.The seventeen sustainable Development Goals presented by the United nation Global 
Compact in 2015 [4]. 
These seventeen goals presented by the SDG represent a sustainable platform and new 
opportunity for the enterprise to maintain a high connection within a wide network of 
stakeholders. Adopting such a strategy will lead the company to discover new issues and 
challenges in the globalized world thus will motivate it to innovate new types of products and 
services in order to satisfy the market need and to compete through it. A real example of this is 
the Diversified Energy Corporation, which specialized in producing energy resources like oil and 
petrol in the USA. After the company became a member of the UNDC and adopted the 
Sustainable Development Goals, it decided to create a new production line for producing 
specialized alternative renewable energy technologies. The company realized that spoiled oil 
which used to be considered as waste from generators or from restaurants could be transformed 
into biofuel through a biofuel’s conversion process. The company took any renewable oil to 
transform it into transportation fuels that are physically and chemically identical to petroleum 
[13]. Nowadays Diversified Energy Corporation is considered one of the most competitive 
companies in the biofuel market, and it expects to increase its revenues in the next few years due 
to the imitate companies which are newly introduced in the biofuel industrial sector. Emma 
Charlton mentioned that measuring competitiveness depends on several factors, and these factors 
are not only related to business dynamics but it's linked to social, environmental, technological 
dynamics. She added that the Global Competitiveness Index 4.0, which was established in 2018, 
is based on 12 main drivers, these drivers are derived from the Sustainable Development Goals 
[14]. The SDG and the Global Competitiveness drivers are designed in a way that helps 
decision-makers, business leaders and other key stakeholders to adopt new strategies in the era of 
the Fourth Industrial Revolution. Adopting such strategies is the bold step to build a new 
economy. One of its priorities is to include social responsibility in the global agenda and achieve 
sustainability at various social and environmental levels. 
 181 
 
Conclusions. Diversified academic methods and practical approaches related to CSR has 
been issued through the 20 century, where it scattered decision-maker in companies to adopt a 
unique and unified CSR theory and approach. However, At the beginning of the 21 century, the 
United Nation Global Compact solved this issue through determining a unified framework which 
combines responsibilities found in different CSR theories and methods. The framework has two 
missions. The first mission is considered a tactical mission, where the company must adhere to 
the ten basic principles as a first step, and integrate these principles with its production 
operations inside and outside the establishment. As for the second mission, it is considered a 
long-term strategy, but it should be adopted not only by companies in the business field, however 
it is a contribution between governmental and various stakeholders to ensure a better future for 
the next generations.  
In response to this, government agencies and Non-governmental organizations should 
cooperate with educational institutions and universities in order to train entrepreneurship and 
students on the principles and importance of CSR as a kind of future investments [15]. 
Awareness toward CSR responsibilities is the main driver in guiding the renewable energy sector 
and achieving social welfare as much as possible. 
Another conclusion could be added is that as the company adopt the principles of the 
UNGC framework, and implement it in a continuous and responsible manner, it will be 
considered as a socially responsible organization, thus its reputation will improve, and it will be 
able to share in international tenders. Such a manner will open new opportunities in new markets 
and maybe a reason for innovating new products and services. Thus, implementing CSR 
approaches through UNGC principles will strengthen the competitiveness of the company. 
Further research could be made on developing the concept of Corporate Governance and 
on citizen social responsibilities. 
References 
1. Howard Rothmann Bowen. Social Responsibilities of the Businessman. University of IOWA Press. 
1953.Vol.1, pp. 3-22. 
2. United Nation Industrial Development Organization UNIDO. What Is CSR? Retrieved from 
https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-
responsibility/corporate-social-responsibility-market-integration/what-csr, Accessed in Feb. 5 2020. 
3. Brin P.V., Nehme M.N. Hisorical development of the corporate cocial responsibility consept Науково-
практичний журнал "Причорноморські економічні студії". 2019. Випуск 48 Частина 3. pp. 7-14.. 
4. United Nations Global Compact UNGC. Our mission. Retrieved from United Nation Global Compact: 
https://www.unglobalcompact.org/what-is-gc/mission. Accessed in 7 February 2020. 
5. Christian Voegtlin and Nicolas Pless. Global Governance: CSR and the role of the UN Global Compact. 
Journal of Business Ethics.2014 Vol. 122 Issue 2, pp.179-191. 
6. James E. Post. The United Nations Global Compact: a CSR milestone. Business& Society Journal, 2013. 
Vol.52 Issue 1, pp.53-63. 
7. Brin P.V., Nehme M.N. Corporate social responsibility: analysis of theories and models. EUREKA: 
Social and Humanities. 2019. №. 5. pp. 22-30.  
8. Archie B. Carroll. Carroll’s Pyramid of CSR: taking another look. International Journal of Corporate 
Social Responsibility, 2016. Vol.1 Issue 3, pp.1-8. 
9. John Elkington. Accounting for The Triple Bottom Line. Measuring Business Excellence Journal, 1998 
Vol.2 Issue 3, pp. 18-22 
10. Edward R. Freeman and John Mcvea. A Stakeholder Approach to Strategic Management. Darden 
Business School 2001 No. 1, pp. 8-16. 
11. Stefan Schembera. Implementing Corporate Social Responsibility: empirical insights on the impact of the 
UN Global Compact on its business participants. Business and Society Journal, 2016. Vol. 57 Issue 5, pp.783-825. 
12. Lila Karbassi. Advancing Sustainable Development. Retrieved from: 
https://www.unglobalcompact.org/what-is-gc/our-work/sustainable-development . Accessed in 6 February 2020. 
13. Francine Hardaway. Ten Biofuels Companies You Need to Know About. Retrieved from 
https://www.fastcompany.com/1274328/10-biofuels-companies-you-need-know-about Accessed in 7 February 2020. 
14. Emma Charlton. Acoustics and the Engineering Team. Acoustics Papers 2012 No. 1, pp. 27-29. 
15. Brin P.V. Nehme M.N. Corporate and governmental social responsibility: possible approaches to 
unemployment reduction. Бізнес-навігатор: Науково-виробничий журнал. 2018. Випуск 2-2 (45). pp. 71-75. 
 
 


The integration between corporate social responsibilty and sustainable development goals

Electronic National Technical University &quot;Kharkiv Polytechnic Institute&quot; Institutional Repository (eNTUKhPIIR)

 177  Keywords: corporate social responsibility, corporate social responsibility, competitiveness, reputation and image, financial indicators.   Brin P., PhD., Professor of Management & Taxation Department, National Technical University “Kharkov Polytechnic Institute’ pavelbrin@ukr.net Nehme M. N.,  Ph.D. student of Management & Taxation Department, National Technical University “Kharkov Polytechnic Institute’ mohammadnehme@gmail.com  THE INTEGRATION BETWEEN CORPORATE SOCIAL RESPONSIBILTY AND SUSTAINABLE DEVELOPMENT GOALS  Summary. Corporate Social Responsibility (CSR) is one of the modern concepts in the management field which become a catalyst in developing the future of the business sector. Several major academic and practical milestones have influenced the development of the concept of CSR. One of the most important milestones that shaped the future of CSR was the United Nations Global Compact (UNGC). UNGC's missions and principles formed an application framework for integrating social and environmental approaches into corporate business activities. It has been proved through this paper the interrelationship between the principles of CSR theories and the principles of UNGC. Followed by an analysis of the effectiveness of the UNGC principles in adopting sustainable development goals and enhancing enterprise competitiveness. Key words: Corporate Social Responsibility, United Nation Global Compact, Sustainable Development Goals, Competitiveness.  Introduction. Since the mid-twentieth century, governments and international organizations have begun to reduce some worsening economic, social and environmental problems caused by global wars, monopoly of natural resources, and globalization system. At the same time, some stockholders in international companies have adopted philanthropic activities to reduce social problems and improve the quality of life in their surrounding areas. During the year 1953, economic researcher Howard Bowen published his first book " Social Responsibilities of the Businessman ", where he considered that commercial companies should bear social and environmental responsibilities in addition to its economic responsibility which is making profits and maintain sustainability [1]. Through Bowen's book, the concept of Corporate Social Responsibility (CSR) appeared for the first time in an academic context. From that time, the concept of CSR has undergone many changes and evolved significantly to adapt to economic, social and environmental requirements. Many basic milestones transformed the CSR concept from a general idea into an academic theory that companies could apply in their strategic plans. Until nowadays, there is no significant definition for the CSR concept, because it is diversified into many concepts and linked to many theories. But the most common definition about this concept was introduced by the United Nations Industrial Development Organization “Corporate Social Responsibility is a management concept where companies integrate social and environmental responsibilities and activities with their production operations and with their interactions with various stakeholders” [2]. Many significant practical milestones have affected the evolution of the CSR concept over the last years, as the World Commission on Economic and Development in 1987, the International Standards Organization and the European Parliaments, where all of these organizations and committees have recommended some activities and forms to implement social responsibility projects and activities by multinational enterprises and small and medium enterprises. However, the most significant organization which connect CSR concept with sustainable strategies of an enterprise is the United Nation Global Compact (UNGC) [3]. Through these papers, an analysis for the role of UNGC principles in motivating enterprises to adopt CSR approaches has been done.  Purpose. The paper aims to present an effective model for implementing Corporate Social Responsibility by various types of enterprises. This model relies on adopting the UNGC  178  principles to reach the Sustainable Development Goals and to strengthen competitiveness efficiently. Results. The United Nations Global Compact was founded in the year 2000 by the World Economic Forum of the United Nations in the USA. UNGC is considered nowadays as the largest voluntary global governance and the world's largest corporate sustainability initiative with 13000 corporate participants and other stakeholders over 170 countries that address social and ecological responsibilities for Multi-National Corporations [4]. Two main missions for the UNGC: The first mission is to align the strategies and operations of the international companies with the ten principles under the category of human rights, labour, environment, and anti-corruption, where these principles represent a practical framework for implementation CRS methods and approaches. The second mission of the UNGC is to take strategic actions to advance broader societal goals, such as the UN Sustainable Development Goals, with an emphasis on collaboration and innovation. The interrelation between the ten principles of UNGC and the CSR methods and approaches were well described by Christian Voegtlin and Nicola Pless “the UNGC succeeded in developing a broad normative Conesus on global ethical values and CSR standards through its ten principles” [5]. These ten principles represent an umbrella that covers the area of all principles mentioned in the CSR theories and approaches. James Post added that the ten principles of the UNGC represent the most important milestone in CSR evolution and represent the future of global corporate responsibility even [6]. It has been concluded also from various academical researches that three main CSR theories and methods are the most used by corporations which are the Carroll CSR method, the Triple Bottom Line Method and the stakeholder’s methods, but there are common features between the three methods where a corporation could target to implement CSR efficiently on endogenous level (inside the firm) and exogenous level (outside the firm) [7]. Archie Carroll one of the most popular scholars in the business ethics field, who developed Carroll CSR approach and categorized the responsibility of an enterprise into 4 main responsibilities (economic responsibility to make profit, legal responsibility to obey the law, ethical responsibility to do what is right and inspired by the law, and the philanthropic responsibility to be a good corporate citizen) [8]. John Elkington developed the Triple Bottom Line theory for CSR that corporations must incorporate three sustainable dimensions as a framework for CSR implementation. According to TBL theory, the three main sustainable dimensions are economic responsibilities, environmental responsibilities and social responsibilities. These responsibilities are connected with profit, people and the planet [9]. The stakeholder theory or approach developed by many scholars, but the most important were Edward Freeman and John Macvae who mentioned that the main responsibility for any enterprise is to maintain the balance between various stakeholders, and to satisfy their needs in a reasonable way [10]. It is obvious that three theories have different perspectives concerning the responsibility that should be carried on by a corporation. While it has been recognized that integrating the common respective or responsibilities mentioned by the three theories in the operational process of a company may cover all the aspects in an ideal way. The common responsibilities are economic responsibility, social responsibility, environmental responsibility, political and ethical reasonability.  For that, table one shows the interrelation of the ten principles of UNGC with the common principles of the three CSR theories (economic principles, ethical principles, social principles, environmental principles, political principles with the level of implementing these principles (endogenous level, exogenous level or both of them). It is important to note that, if a company wants to become a member of the UNGC it has to adopt the ten principles and it must present an annual report for its achievements in the ten principles, the annual report is called Communication on Progress-COP report. If the company  179  didn’t present the report in the first year it will be considered as a non-communicated company, and if it didn’t present in the second year it will be delisted from the UNGC membership [11]. From this point, it is clear that the COP report aims to maintain transparency through disclosing all operational activities of an enterprise and show the integration of the ten principles in enterprise operations.  Table 1. The interrelation between the UNDG Ten principles and the common responsibilities of CSR theories.  Ten Principles of UNGC Level of implementation Common responsibilities of CSR theories Human rights 1. Businesses should support and respect the protection of internationally proclaimed human rights endogenous ethical responsibility social responsibility political responsibility 2. Businesses should make sure that they are not complicit in human rights abuses endogenous ethical responsibility social responsibility Labor 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining endogenous ethical responsibility social responsibility 4. Businesses should eliminate all forms of forced and compulsory labor endogenous ethical responsibility social responsibility political responsibility 5. Businesses should effectively abolished child labor endogenous and exogenous ethical responsibility social responsibility political responsibility 6. Businesses should eliminate discrimination in respect of employment and occupation endogenous ethical responsibility economical responsibility  Environment 7. Businesses should support a precautionary approach to environmental challenges exogenous environmental responsibility  8.Businesses should undertake initiatives to promote greater environmental responsibility endogenous and exogenous environmental responsibility 9.Businesses should encourage the development and diffusion of environmentally friendly technologies endogenous and exogenous environmental responsibility economical reasonability Anti-Corruption 10. Businesses should work against corruption in all its forms, including extortion and bribery endogenous and exogenous political responsibility economical responsibility  As for the second mission of UNGC, which is to raise awareness toward the seventeen sustainable development goals with a focus on cooperation and innovation. Such a mission aims to achieve cooperation between stakeholders (companies, government agencies, civil societies and citizens) for a better future, free of Poverty, injustice and environmental exhaustion. Lila Karbassi, chef of the SDGs program confirmed that “in January 2016, the 17 Sustainable Development Goals has been considered as sustainable development agenda till the year 2030. The SDG has been adopted by various world leaders in a historic summit organized by the  180  United Nations and the World Economic Forum. Over the next fifteen years, countries will mobilize their efforts to apply these universal goals which aim to fight inequality, tackle climate changes and ensure that no one is left behind [12]. Accordingly, figure one shows the seventeen SDG presented by the UNGC.    Figure 1.The seventeen sustainable Development Goals presented by the United nation Global Compact in 2015 [4]. These seventeen goals presented by the SDG represent a sustainable platform and new opportunity for the enterprise to maintain a high connection within a wide network of stakeholders. Adopting such a strategy will lead the company to discover new issues and challenges in the globalized world thus will motivate it to innovate new types of products and services in order to satisfy the market need and to compete through it. A real example of this is the Diversified Energy Corporation, which specialized in producing energy resources like oil and petrol in the USA. After the company became a member of the UNDC and adopted the Sustainable Development Goals, it decided to create a new production line for producing specialized alternative renewable energy technologies. The company realized that spoiled oil which used to be considered as waste from generators or from restaurants could be transformed into biofuel through a biofuel’s conversion process. The company took any renewable oil to transform it into transportation fuels that are physically and chemically identical to petroleum [13]. Nowadays Diversified Energy Corporation is considered one of the most competitive companies in the biofuel market, and it expects to increase its revenues in the next few years due to the imitate companies which are newly introduced in the biofuel industrial sector. Emma Charlton mentioned that measuring competitiveness depends on several factors, and these factors are not only related to business dynamics but it's linked to social, environmental, technological dynamics. She added that the Global Competitiveness Index 4.0, which was established in 2018, is based on 12 main drivers, these drivers are derived from the Sustainable Development Goals [14]. The SDG and the Global Competitiveness drivers are designed in a way that helps decision-makers, business leaders and other key stakeholders to adopt new strategies in the era of the Fourth Industrial Revolution. Adopting such strategies is the bold step to build a new economy. One of its priorities is to include social responsibility in the global agenda and achieve sustainability at various social and environmental levels.  181  Conclusions. Diversified academic methods and practical approaches related to CSR has been issued through the 20 century, where it scattered decision-maker in companies to adopt a unique and unified CSR theory and approach. However, At the beginning of the 21 century, the United Nation Global Compact solved this issue through determining a unified framework which combines responsibilities found in different CSR theories and methods. The framework has two missions. The first mission is considered a tactical mission, where the company must adhere to the ten basic principles as a first step, and integrate these principles with its production operations inside and outside the establishment. As for the second mission, it is considered a long-term strategy, but it should be adopted not only by companies in the business field, however it is a contribution between governmental and various stakeholders to ensure a better future for the next generations.  In response to this, government agencies and Non-governmental organizations should cooperate with educational institutions and universities in order to train entrepreneurship and students on the principles and importance of CSR as a kind of future investments [15]. Awareness toward CSR responsibilities is the main driver in guiding the renewable energy sector and achieving social welfare as much as possible. Another conclusion could be added is that as the company adopt the principles of the UNGC framework, and implement it in a continuous and responsible manner, it will be considered as a socially responsible organization, thus its reputation will improve, and it will be able to share in international tenders. Such a manner will open new opportunities in new markets and maybe a reason for innovating new products and services. Thus, implementing CSR approaches through UNGC principles will strengthen the competitiveness of the company. Further research could be made on developing the concept of Corporate Governance and on citizen social responsibilities. References 1. Howard Rothmann Bowen. Social Responsibilities of the Businessman. University of IOWA Press. 1953.Vol.1, pp. 3-22. 2. United Nation Industrial Development Organization UNIDO. What Is CSR? Retrieved from https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr, Accessed in Feb. 5 2020. 3. Brin P.V., Nehme M.N. Hisorical development of the corporate cocial responsibility consept Науково-практичний журнал "Причорноморські економічні студії". 2019. Випуск 48 Частина 3. pp. 7-14.. 4. United Nations Global Compact UNGC. Our mission. Retrieved from United Nation Global Compact: https://www.unglobalcompact.org/what-is-gc/mission. Accessed in 7 February 2020. 5. Christian Voegtlin and Nicolas Pless. Global Governance: CSR and the role of the UN Global Compact. Journal of Business Ethics.2014 Vol. 122 Issue 2, pp.179-191. 6. James E. Post. The United Nations Global Compact: a CSR milestone. Business& Society Journal, 2013. Vol.52 Issue 1, pp.53-63. 7. Brin P.V., Nehme M.N. Corporate social responsibility: analysis of theories and models. EUREKA: Social and Humanities. 2019. №. 5. pp. 22-30.  8. Archie B. Carroll. Carroll’s Pyramid of CSR: taking another look. International Journal of Corporate Social Responsibility, 2016. Vol.1 Issue 3, pp.1-8. 9. John Elkington. Accounting for The Triple Bottom Line. Measuring Business Excellence Journal, 1998 Vol.2 Issue 3, pp. 18-22 10. Edward R. Freeman and John Mcvea. A Stakeholder Approach to Strategic Management. Darden Business School 2001 No. 1, pp. 8-16. 11. Stefan Schembera. Implementing Corporate Social Responsibility: empirical insights on the impact of the UN Global Compact on its business participants. Business and Society Journal, 2016. Vol. 57 Issue 5, pp.783-825. 12. Lila Karbassi. Advancing Sustainable Development. Retrieved from: https://www.unglobalcompact.org/what-is-gc/our-work/sustainable-development . Accessed in 6 February 2020. 13. Francine Hardaway. Ten Biofuels Companies You Need to Know About. Retrieved from https://www.fastcompany.com/1274328/10-biofuels-companies-you-need-know-about Accessed in 7 February 2020. 14. Emma Charlton. Acoustics and the Engineering Team. Acoustics Papers 2012 No. 1, pp. 27-29. 15. Brin P.V. Nehme M.N. Corporate and governmental social responsibility: possible approaches to unemployment reduction. Бізнес-навігатор: Науково-виробничий журнал. 2018. Випуск 2-2 (45). pp. 71-75.   

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The integration between corporate social responsibilty and sustainable development goals

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Available Versions

Library of National Technical University "Kharkiv Polytechnic Institute"

Electronic National Technical University &quot;Kharkiv Polytechnic Institute&quot; Institutional Repository (eNTUKhPIIR)

Electronic National Technical University "Kharkiv Polytechnic Institute" Institutional Repository (eNTUKhPIIR)