№ 9/2017

Fìnansi Ukr. 2017 (9): 112–128https://doi.org/10.33763/finukr2017.09.112

ACCOUNTING AND AUDIT

OLIYNYK Yana ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/

Institutional factors for the introduction of non-financial reporting

The concept of corporate social responsibility (CSR) as an important component of EU strategy is widely recognized in the countries of Europe. The effective instrument of state policy in the sphere of CSR is improvement of the quality of corporate reporting. Ukraine is in the process of adapting EU legislation on corporate reporting to national legislation. The main fundamental problem of this process is a lack of requirements for preparation of the integrated corporate reporting which suggests disclosure of information on economic, ecological and social activity of the subjects of economic activity. The disclosure of non-financial information and application of CSR principles and standards is done by the domestic enterprises and representative offices of the foreign companies at their own initiative. The purpose of the article is to study international and domestic experience of non-financial reporting and ground the way to increase the accountability and transparency of enterprises based on half-scientific results. To achieve the ultimate goal of the research, the author relies on approaches and methods of the scientific analysis: institutional, system, structural-functional, comparative, retrospective and others. The practical value of the received outcomes consists in defining areas for the improvement of accounting and reporting in Ukraine in the context of changes in EU legislation. The article investigates institutional factors for the introduction of non-financial reporting through systematization of the legislative documents regulating business on the basis of social responsibility at the international and national levels, as well as practices of the regulation of preparation and submission of non-financial reports in EU countries. The author assesses the state of adaptation of international and European legislation requirements and norms in the context of disclosure of information on corporate social responsibility in Ukrainian conditions. The article identifies obstacles to the implementation of EU legislation regulating various aspects of standardizing the preparation and presentation of the non-financial reporting and proposes ways of its introduction. The research allows to draw a conclusion that in Ukraine the social reporting has no legislative regulation unlike EU countries, where the governments play a significant role in advancing CSR. It is proved necessary to further develop CSR initiatives in Ukraine and increase the accountability and transparency of the activities of business entities in Ukraine through improving the regulatory and legal provisions regulating accounting.

Keywords:concept of corporate social responsibility of business, adaptation of EU legislation requirements, corporate reporting, non-financial reporting

JEL: М14, М41, М48

OLIYNYK Y. . Institutional factors for the introduction of non-financial reporting / Y. . OLIYNYK // Фінанси України. - 2017. - № 9. - C. 112-128.

Article original in Ukrainian (pp. 112 - 128)

Download

Downloads :893

1. ISO. (n. d.). ISO/DIS 26000: Guidance on social responsibility. Retrieved rom www.isotc.iso.org.
2. Iefymenko, T. I., Zhuk, V. M., & Lovinska, L. H. (2015). Information in crisis management: the global aspect of accounting standardization and financial reporting. Ky`yiv: DNNU “Akademiya finansovoho upravlinnya” [in Ukrainian].
3. Vorobej, V. H., Zhurovska, I. Ya. (2010). Non-financial reporting: an instrument for socially responsible business. Ky`yiv. Retrieved from www.svb.org.ua/publications [in Ukrainian].
4. Zhy`hlej, I. V. (2010). Accounting of socially responsible activity of economic entities: the need and guidelines for development. Zhy`tomy`r: ZhDTU [in Ukrainian].
5. Zamula, I. V. (2010). Accounting of ecological activity in ensuring sustainable development of the economy. Zhy`tomy`r: ZhDTU [in Ukrainian].
6. Lazorenko, O., Koly`shko, R. et al. (2008). CSR guide. Basic information on corporate social responsibility. Kyiv: Enerhiya [in Ukrainian].
7. Mac`kiv, R. T. (2015). Non-financial reporting – component of social responsibility management at enterprises of oil and gas industry. Effective economy, 3. Retrieved from www.economy.nayka.com.ua/?op=1&z=3926 [in Ukrainian].
8. European Union. (2014, October 22). Directive 2014/95/EU of the European Parliament and of the Council. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0095&from=EN.
9. European Union. (2013, June 26). Directive 2013/34/EU of the European Parliament and of the Council. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex% 3A32013L0034.
10. Korol, S. Ya. (2013). Regulations on social responsibility of business. Economy of Ukraine, 9 (614), 85–96 [in Russian].
11. EU, Ukraine. (2014). Association agreement between Ukraine, of the one part, and the European Union, the European atomic energy community and its member states, of the other part. Retrieved from zakon0.rada.gov.ua/laws/show/984_011 [in Ukrainian].
12. Cabinet of Ministers of Ukraine. (2014). About implementation of Association agreement between Ukraine, of the one part, and the European Union, the European atomic energy community and its member states, of the other part (Order No. 847-p, September 17). Retrieved from www.kmu.gov.ua/control/uk/cardnpd?docid= 247612342 [in Ukrainian].
13. Zinchenko, A. H., Saprykina, M. A. (2010). Corporate social responsibility 2005-2010: status and prospects for development. Ky`yiv: Farbovany`j ly`st. Retrieved from csr-ukraine.org/wp-content/uploads/2014/04/ksv-2005-2010-analitychnyy-zvit.pdf [in Ukrainian].