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03.03.202103.2021с 01.01.2021
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Journal section "Socio-economic research"

On the Social Responsibility of Big Business (Case Study of PAO “Severstal”)

Malyshev M.K.

Volume 6, Issue 1, 2020

Malyshev М.К. On the Social Responsibility of Big Business (Case Study of PAO “Severstal”). Social area, 2020, vol. 6, no. 1. URL: http://socialarea-journal.ru/article/28502?_lang=en DOI: 10.15838/sa.2020.1.23.5

DOI: 10.15838/sa.2020.1.23.5

Abstract   |   Authors   |   References
The present article is the first in the series of studies devoted to the influence of big corporations on regional development. The issues of social responsibility of business are particularly important in the modern market economy. Big business most tends to conduct socially responsible policies among all the other types of businesses. It is big business that has enough money supply to finance social projects and activities. In this regard, the purpose of the article is the generalization of the theoretical aspects of the social responsibility of business and its analysis in the case of the large metallurgical enterprise. The research object is PAO “Severstal” located in the Vologda Oblast. The information base is made up by the works of domestic authors on the role of large corporations in regional development, as well as the statutory reporting of PAO “Severstal”. The author made an attempt to explore the theoretical question of business’ social responsibility, analyzed the results of production and financial development of the metallurgical company. Over the past seven years, PAO “Severstal” doubled its revenue, but its contribution to the regional budget as one of the factors of social responsibility was not high enough. If the company had paid a tax in the amount of 20% of taxable profits, the Vologda Oblast’s budget would have received an additional of approximately 68.2 billion rubles for seven years, or 18.1% of own incomes of the Vologda Oblast’s consolidated budget during the same period. Thus, there is some ambiguity of the situation. On the one hand, PAO “Severstal” represents itself as a socially responsible company, funding social projects, but, on the other hand, its leadership is tending to minimize tax revenues for the development of economy and social sphere of the home region. The results of the study can be interesting for decision makers in the executive government, including employees of educational and scientific spheres

Keywords

tax system, regional development, budgetary system, metallurgical complex, corporate finance