Business ethics and social responsibility plan. The role of business in society

Business ethics

Business ethics as an applied field of knowledge emerged in the United States and Western Europe in the 1970s. However, the moral aspects of business have attracted researchers already in the 60s. The scientific community and the business world have come to the conclusion about the need to raise the "ethical consciousness" of professional businessmen in their business operations, as well as the "responsibility of corporations to society." Particular attention was paid to the increased incidence of corruption both among the government bureaucracy and among senior officials of various corporations. A certain role in the formation of business ethics as a scientific discipline was played by the famous Watergate, in which the most prominent representatives of the administration of President R. Nixon were involved. By the early 1980s, most business schools in the United States, as well as some universities, had incorporated business ethics into their curricula. Currently, the course on business ethics is included in the curricula of some Russian universities.

In business ethics, there are three main approaches to the moral problems of business, based on three ethical directions: utilitarianism, deontic ethics (ethics of duty) and "ethics of justice". Presented in the works of American scientists M. Valazquez, J. Rawls, L. Nash, they can be summarized as follows.

The direct connection of ethics with life practice is well traced in the sphere of the so-called professional ethics, which is a system of moral requirements for professional activity person. One of the types of professional ethics is business ethics. It arose relatively late on the basis of a common labor morality. In turn, the main place in the ethics of business relations is occupied by the ethics of business (entrepreneurship). It includes management ethics (management ethics), ethics business communication, ethics of behavior, etc.

Business - proactive economic activity, carried out both at the expense of its own and borrowed money at your own risk and responsibility, the purpose of which is to establish and develop your own business to make a profit and solve the social problems of an entrepreneur, labor collective, society as a whole.

Business ethics - business ethics based on honesty, openness, loyalty to the given word, the ability to function effectively in the market in accordance with applicable law, established rules and traditions.

Business ethics issues are as old as entrepreneurship. However, they have become especially acute in our time, when the market has changed dramatically, from fierce competition has become fierce. Now all over the world, issues of business ethics are widely studied, serve as the subject of scientific discussions and forums, are studied in many higher and secondary educational institutions providing training for the labor market.

The importance of ethics in business

Experts believe that the concept of "business ethics" has come into widespread use relatively recently - as a result of the globalization of the economy, an increase in the number of firms and an increase in the level of their responsibility to society. However, the basic principles of ethics that can now be applied in the field of business were formulated thousands of years ago. Even the ancient Roman philosopher Cicero limited himself to the assertion that a large profit is made by a big deception. However, today this axiom sounds more and more controversial. The civilized economy that has emerged in developed countries requires a civilized approach to business from entrepreneurs. In fact, the purpose of their activities remained the same, but a weighty reservation appeared: big profits, but not by any means.

Ethics in the modern sense is becoming a kind of additional resource for the enterprise. For example, in such an issue as personnel management, in conditions of global competition, it is no longer enough to use economic and financial incentives alone. In order to keep the company at the level of modern information and communication technologies, the company needs to learn how to influence personnel with the help of cultural and moral values... These values are also playing an increasingly important role in relationships with partners, clients, intermediaries, and finally, with society itself.

Attempts to link moral and ethical criteria and business practices in the field international business are being undertaken constantly. Despite the shortcomings of today's ethical guidelines for business representatives, every year more and more organizations are trying, sometimes of their own free will, and sometimes as a result of external pressure, to create their own rules for doing business.

The principles of international business are the global ethical standard according to which one can build and evaluate behavior in the field of international business.

Honesty, decency and reliability are the most valued principles around the world and in Russia business ethics because following these principles creates the basis for effective business relationships - mutual trust.

Mutual trust is the most important moral and psychological factor of business, which ensures the predictability of business relations, confidence in the obligation business partner and the stability of the joint business.

Corporate Social responsibility

The topic of corporate social responsibility (CSR) is one of the most discussed in the business world today. This is due to the fact that the role of business in the development of society has noticeably increased, the requirements for openness in business sphere... Many companies have clearly realized that it is impossible to successfully conduct business operating in an isolated space. Therefore, the integration of the principle of corporate social responsibility into the business development strategy becomes characteristic feature leading domestic companies.

The modern world lives in conditions of acute social problems and in this regard, the social responsibility of business is especially significant - enterprises and organizations associated with the development, manufacture and supply of products and services, trade, finance, since they have the main financial and material resources that allow them to work for solutions to the social problems facing the world. The understanding by business leaders of their key importance and leading role in such work led to the birth at the end of the 20th century of the concept of "corporate social responsibility", which became an essential part of the concept of sustainable development not only of business, but of humanity as a whole.

In world practice, there is an established understanding of what corporate social responsibility is. Organizations that operate in this area define this concept in different ways.

Business for Social Responsibility: Corporate Social Responsibility means achieving commercial success in ways that value ethical principles and respect people, communities and the environment.

International Business Leaders Forum: Corporate Social Responsibility is understood as promoting responsible business practices that benefit business and society and contribute to social, economic and environmentally sustainable development by maximizing positive influence business to society and minimize the negative.

World Business Council for Sustainable Development: defines corporate social responsibility as the commitment of businesses to contribute to sustainable economic development, labor Relations with workers, their families, the local community and society at large to improve their quality of life.

Business social responsibility is multi-level.

The basic level assumes the fulfillment of the following obligations: timely payment of taxes, payment wages, if possible - the provision of new jobs (expansion of the working staff).

The second level involves providing workers with adequate conditions not only for work, but also for life: raising the level of qualifications of workers, preventive treatment, housing construction, and the development of the social sphere. This type of responsibility is conventionally called "corporate responsibility".

The third, highest level of responsibility, according to the participants in the dialogue, presupposes charitable activities.

The internal social responsibility of business includes:

1. Labor safety.
2. Stability of wages.
3. Maintaining socially significant wages.
4. Additional medical and social insurance for employees.
5. Development human resources through training programs and programs of training and professional development.
6. Providing assistance to workers in critical situations.

The external social responsibility of business includes:

1. Sponsorship and corporate charity.
2. Assistance to protection the environment.
3. Interaction with the local community and local authorities.
4. Willingness to participate in crisis situations.
5. Responsibility to consumers of goods and services (production of quality goods).

Business social responsibility motives:

1. Development of our own personnel allows not only to avoid staff turnover, but also to attract the best specialists on the market.
2. Growth of labor productivity in the company.
3. Improvement of the company's image, growth of reputation.
4. Advertising of a product or service.
5. Coverage of the company's activities in the media.
6. Stability and sustainability of the company's development in the long term.
7. Opportunity to attract investment capital higher for socially responsible companies than for other companies.
8. Maintaining social stability in society as a whole.
9. Tax incentives.

Directions social programs:

Good Business Practice is a social program area of a company that aims to promote the adoption and dissemination of good business practices among the company's suppliers, business partners and customers.

Environmental protection and resource conservation is the direction of the company's social programs, which are carried out at the initiative of the company in order to reduce the harmful impact on the environment (programs for the economical consumption of natural resources, reuse and waste disposal, prevention of environmental pollution, organization of environmentally friendly production process, organization of environmentally friendly transportation).

The development of local society is a direction of the company's social programs, which is carried out on a voluntary basis and is designed to contribute to the development of local society (social programs and actions to support socially unprotected segments of the population, providing support to children and youth, supporting the preservation and development of housing and communal services and objects of cultural and historical significance, sponsoring local cultural, educational and sports organizations and events, supporting socially significant research and campaigns, participating in charitable events).

Personnel development is a direction of the company's social programs, which is carried out within the framework of the personnel development strategy, with the aim of attracting and retaining talented employees (training and professional development, the use of motivational remuneration schemes, providing employees social package, creating conditions for rest and leisure, maintaining internal communications in the organization, participation of employees in making managerial decisions).

Socially responsible restructuring is a direction of the company's social programs, which is designed to ensure that the restructuring is carried out in a socially responsible way, in the interests of the company's personnel.

Socially Responsible Investing - Investing that isn't just about extracting financial income but also in realizing social goals, usually by investing in companies operating in an ethical manner.

One of the distinguishing features of the evolution of entrepreneurship has become the highlighting of such attributes as ethics and social responsibility. Moreover, at the current historical stage, these attributes have turned into factors on which the commercial success of an entrepreneur largely depends. These properties are commonly referred to as business attributes. Considering, however, that there are no significant differences between business and entrepreneurship, we associate these signs with both terms.

Entrepreneurship ethics is the type business conduct, which meets the set of rules and norms of management accepted in the society. An entrepreneur's behavior will be ethical if it is in line with accepted norms and unethical if it does not. In the modern interpretation, such entrepreneurial conduct is recognized as ethical, which is based on openness, honesty, loyalty to one's word, respect for laws and the ability to conduct business (ensure the efficient use of resources).

One of the most important characteristics of business ethics arising from universal ethics, lies in the fact that it is based on the totality of the individual's personal beliefs regarding the correctness of his own actions or behavior. This means, firstly, that entrepreneurial ethics is the result of ethical principles that have been formed under the influence of the national, religious, social and personal values of the individual, and, secondly, that adherence to accepted norms is voluntary. At the same time, according to M. Weber's interpretation, such entrepreneurial activity will be ethical if it is carried out not for the sake of maximizing personal consumption, but as a virtuous activity, and where wealth is viewed not as a source of luxury and power, but as evidence of a job well done.

At the same time, the development of the principles of entrepreneurial ethics is also under the influence of the social and moral attitude towards the very entrepreneurial activity... Practice shows that ethical principles of entrepreneurship are formed in those societies where entrepreneurial activity is viewed as morally justified and socially useful. In this case, the decisive role is played by the presence of an optimal balance of obligations and rights of the individual. In the sense that if a sense of duty forces you to work honestly and hard, then rights protect against encroachment on the results of work.

At the same time, the issue of entrepreneurial ethics should not be considered outside the context of the conditions for the implementation of entrepreneurship, the essence of which boils down to the possibility or impossibility of implementing the entrepreneurial function. This determinant of entrepreneurial ethics is fundamentally different in its role from those discussed above. The essence of the difference is as follows. The totality of personal ethical values and the moral and ethical sanction of entrepreneurship determine the content side of entrepreneurship ethics. However, the potential for the implementation of the entrepreneurial function determines the degree to which the entrepreneur will follow the accepted norms of entrepreneurial ethics. And the entrepreneur will follow his ethical values only to the extent that this does not interfere with the implementation of his entrepreneurial functions and, above all, those through which the extraction of benefits is ensured.

As business practice shows, the degree of ethical behavior of entrepreneurs is determined by two circumstances. The first of these is the nature of the conditions (environment) in which entrepreneurship is carried out. It defines the principles of remuneration for entrepreneurs. The second circumstance is the effectiveness of public (state) sanctions for violation of established rules and norms. Therefore, entrepreneurs behave ethically not where education is higher and education is better, but where the “ax” of social sanctions is working more intensively. In countries, for example, in Germany, where the use of phosphates (an extremely toxic substance that damages health and the environment) is prohibited, firms produce washing powders phosphate-free. However, the same firms and under the same trademarks produce and sell detergents with phosphates in countries where it is not prohibited by law, for example, in Russia. The moral is simple: what is not forbidden is allowed. This means that entrepreneurs apply the type of ethics that is beneficial to them, i.e. does not interfere with making a profit.

Introduction

My theme test work: "Social responsibility and business ethics: formation, development, practical application."

Business ethics as an applied field of knowledge emerged in the United States and Western Europe in the 1970s. However, the moral aspects of business attracted researchers as early as the 1960s. The scientific community and the business world have come to the conclusion about the need to raise the "ethical consciousness" of professional businessmen in their business operations, as well as the "responsibility of corporations to society." Particular attention was paid to the increasing incidence of corruption, both among the government bureaucracy and among senior officials of various corporations. A certain role in the formation of business ethics as a scientific discipline was played by the famous Watergate, in which the most prominent representatives of the administration of President R. Nixon were involved. By the early 1980s, most business schools in the United States, as well as some universities, had incorporated business ethics into their curricula. Currently, the course on business ethics is included in the curricula of some Russian universities.

There are two main points of view on the relationship between general human ethical principles and business ethics: 1) the rules of ordinary morality do not apply to business or to a lesser extent .; 2) business ethics is based on universal universal ethical standards (to be honest, do no harm, keep your word, etc.), which are concretized taking into account the specific social role of business in society. Theoretically, the second point of view is considered more correct.

Issues of the relationship between ethics and economics in recent times begin to be actively discussed in our country.

The purpose of the test is to address issues of social responsibility and business ethics.

Tasks: 1) social responsibility formation, development,

practical use.

2) business ethics formation, development, practical

application.

Question number 1. Social responsibility and business ethics: formation, development, practical application

Social policy is one of the most important directions state regulation economy. It is an organic part of the internal policy of the state, aimed at ensuring the well-being and all-round development of its citizens and society as a whole. The significance of social policy is determined by its influence on the processes of labor force reproduction, increasing labor productivity, educational and qualification level labor resources, to the level of scientific and technological development of the productive forces, to the cultural and spiritual life of society. Social policy aimed at improving working and living conditions, developing physical education and sports, reduces morbidity and thereby has a tangible effect on reducing economic losses in production. As a result of the development of such systems in the social sphere as catering, preschool education, frees part of the population from the household sphere, employment increases in social production... Science and scientific support, which determine the prospects for the country's economic development, are also part of the social sphere and their development, and efficiency is regulated within the framework of social policy. Social sphere not only regulates the processes of employment of the population, but is also a direct place of employment and provides jobs for millions of people in the country.

The main tasks of social policy are:

1. Harmonization of public relations, reconciliation of the interests and needs of individual groups of the population with the long-term interests of society, stabilization of the socio-political system.

2. Creation of conditions for ensuring the material well-being of citizens, the formation of economic incentives for participation in social production, ensuring equality of social opportunities to achieve a normal standard of living.

3. Provision social protection of all citizens and their basic social and economic rights guaranteed by the state, including support for low-income and poorly protected groups of the population.

4. Ensuring rational employment in society.

5. reducing the level of criminalization in society.

6. Development of sectors of the social complex, such as education, health care, science, culture, housing and communal services, etc.

7. Ensuring the environmental safety of the country.

The social responsibility of a business is doing business in accordance with the norms and laws adopted in the country where it is located. These are job creation. This is charity and the creation of various funds to help various social strata of society. This is to ensure the protection of the environment of their production, and many other things that support the social status in the country.

Business takes over the functions of the state and this is called social responsibility. This is primarily due to the lack of appropriate public policy in the field of social responsibility of business. The state itself cannot determine the model of relationships with business.

There are two perspectives on how organizations should behave in relation to their social environment in order to be considered socially responsible. According to one of them, an organization is socially responsible when it maximizes profits without violating laws and government regulations. From these positions, the organization should pursue only economic goals. According to another view, an organization, in addition to its economic responsibility, must take into account the human and social aspects of the impact of its business activities on workers, consumers and local communities in which it operates, as well as make some positive contribution to solving social problems in general.

The concept of social responsibility is that an organization fulfills the economic function of producing products and services necessary for a society with a free market economy, while ensuring both work for citizens and maximum profits and rewards for shareholders. According to this perspective, organizations are accountable to the society in which they operate, in addition to and beyond ensuring efficiency, employment, profit and not breaking the law. Organizations should therefore channel some of their resources and efforts through social channels. Social responsibility, in contrast to legal responsibility, implies a certain level of voluntary response to social problems on the part of the organization.

The controversy over the role of business in society has given rise to arguments for and against social responsibility.

Business-friendly long-term prospects. Enterprise social action that improves local community life or removes the need for government regulation can be in the self-interest of enterprises because of the benefits of community participation. In a society that is more prosperous from a social point of view, conditions are more favorable for business activities. Moreover, even if short-term costs are high due to social action, and in the long term they can stimulate profits as consumers, suppliers and the local community develop a more attractive business image.

Changing needs and expectations of the general public. Business-related social expectations have changed radically since the 1960s. To narrow the gap between new expectations and the real response of enterprises, their involvement in solving social problems becomes both expected and necessary.

Availability of resources to assist in solving social problems. Since the business has significant human and financial resources, he should transfer part of them to social needs.

A moral obligation to behave in a socially responsible manner. An enterprise is a member of society, therefore moral norms should also govern its behavior. The enterprise, like the individual members of society, must act in a socially responsible manner and contribute to the strengthening of the moral foundations of the society. Moreover, since laws cannot cover all situations in life, businesses must act responsibly in order to maintain a society based on order and rule of law.

Violation of the principle of maximizing profit. The allocation of part of the resources to social needs reduces the impact of the principle of maximizing profits. The company behaves in the most socially responsible way, focusing only on economic interests and leaving social problems to state institutions and services, charitable institutions and educational organizations.

Social Inclusion Spending. Funds allocated for social needs are costs for the enterprise. Ultimately, these costs are passed on to consumers in the form of price increases. In addition, firms competing in international markets with firms in other countries that do not incur social costs, are at a disadvantage in competition. As a result, their sales in international markets are reduced, which leads to a deterioration in the US balance of payments during foreign trade.

Insufficient level of reporting to the general public. Because managers are not elected, they are not accountable to the general public. The market system controls well economic indicators enterprises and badly - their social involvement. Until the society develops a procedure for direct reporting of enterprises to it, the latter will not participate in social actions for which they do not consider themselves responsible.

Entering the field of business, each organization acquires a certain legal status, which determines both the type of activity and legal responsibility for the course and results of this activity. Legal liability refers to adherence to government regulations that establish what an organization can and should not do.

But, functioning in society, the organization is forced to react to other factors of the external environment, accordingly making changes within itself. Social responsibility is one of the manifestations of this reaction. Unlike legal responsibility, social responsibility implies a certain level of voluntary response to the social problems of society and its members on the part of the organization. This response has to do with anything beyond or beyond statutory or regulatory requirements. In fig. 5.4 shows the hierarchy of social responsibility of the organization, depending on the degree of voluntariness of their actions.

Rice. 5.5. Hierarchy of social responsibility

The law establishes a certain level of social responsibility for business, which is mandatory for execution: minimum wage for employees, control over environmental pollution, prohibition of discrimination in any form, etc. The first step in the hierarchy of social responsibility envisages not only compliance with legal norms, but also the recognition by the organization of the existing expectations of society. The second stage presupposes a significantly higher level of social responsibility, since it involves anticipating new social requirements before they find a clear form of expression in social thinking. The third level of the hierarchy of social responsibility provides that the organization or its leadership leads in creating new forms of activity for business and responding to the social needs of society. In the general understanding, social responsibility is a responsible activity of organizations before society, contributing to the improvement of the management of social processes in real social groups or strata of society. Currently, there are two points of view on how organizations should behave in relation to their social environment in order to be considered socially responsible.

According to one of them, an organization is socially responsible when it maximizes profits, while being within a legally limited framework. In doing so, the organization fulfills the economic function of producing goods and services necessary for society, while providing work for citizens at the same time.

From another point of view, the organization, in addition to its responsibility of an economic and legal nature, must take into account the human and social aspects of the impact of its business activities on employees, consumers, local community structures, and also make a certain positive contribution to solving social problems in general.

The difference between these views gave rise to numerous arguments "for" and "against" social responsibility in business (Table 5.2).

Table 5.2

List of arguments "for" and "against" social responsibility

in business

Arguments for social responsibility	Arguments against social responsibility
1. Favorable long-term prospects for business (stimulating profits as a result of creating an attractive enterprise image for the consumer)	1. Violation of the principle of maximizing profit due to the diversion of part of the resources for social needs
2. Changing needs and expectations of the general public (is a consequence of narrowing the gap between new expectations in society and the real response of the enterprise)	2. Expenditures on social inclusion increase the costs of the enterprise and ultimately contribute to higher prices
3. Availability of resources to assist in solving social problems	3. Insufficient level of reporting to the general public (under a market system, the economic indicators of enterprises are well controlled and their social involvement is bad)
4. Moral obligation to behave in a socially responsible manner (the company is a member of society, should contribute to strengthening its moral foundations)	4. Lack of ability of the personnel of business enterprises to resolve social problems (in contrast to specialists working in the relevant government agencies and charitable organizations).

Despite the persuasiveness and validity of both positions, a clear preponderance is observed in favor of the concept of social responsibility. Adherence to the principles of social responsibility in business brings tangible results to organizations. They lead to improvement social conditions work and life of workers, strengthening relations with the general public, including their customers, consumers, business partners, and ultimately - supporting social stability in society as a whole, which is an important condition for the effective implementation of business. The forms of manifestation of social responsibility by entrepreneurs are very diverse. The history of entrepreneurship in Russia shows that social responsibility was manifested mainly in the form of patronage, philanthropy and the organization of charitable societies and institutions, which entrepreneurs looked at as completing a task, a kind of mission entrusted by God or fate. The social responsibility of modern entrepreneurs has a wider range and includes responsibility to the employee, the environment, the consumer and society as a whole.

The responsibility to the employee is that, upon conclusion employment contract(contract, agreement), the entrepreneur is obliged to ensure the conditions and safety of labor, his payment is not lower than the established minimum level, as well as other social guarantees including social and health insurance and social Security in accordance with applicable law. In case of disability, the entrepreneur provides the victim with reimbursement of expenses in the cases and in the manner prescribed by law. Social responsibility in employment is about non-discrimination based on ethnicity, race, gender, age, religion, disability or other characteristics. Differences in the work provided, and, consequently, its remuneration, can only be due to the qualifications, education and professional preparedness of the employee.

The entrepreneur is obliged not to damage the environment. His responsibilities include carrying out environmental activities, including land reclamation and forest restoration after their use. Funding for these activities is carried out at the expense of the enterprise. It is also responsible for rational use of all natural resources and reimburses the costs of their protection and restoration. For the damage and losses caused, the entrepreneur bears property and other liability established by law.

By supporting and financing health care programs, entrepreneurs contribute to the implementation of nationwide measures to improve the health of the population. Among other forms of social responsibility in the field of health care are very common: the purchase of drugs and complex diagnostic equipment for medical institutions; construction of medical and health-improving complexes; sponsoring medical treatment abroad, training and improving medical personnel in educational institutions of highly developed countries, etc.

The complexity of modern production technologies requires the training of broad-based personnel, not only possessing professional skills, but also able to work with computers, information systems, etc. Education is one of the most fertile areas for employing entrepreneurs' opportunities in terms of social responsibility, since both society as a whole and entrepreneurship benefit from this, as a consumer of highly qualified labor. Active action the public encourages businessmen to treat consumers more responsibly. In civilized countries with market economies, consumers have the right to safety when using the goods and services provided. For this purpose, almost everywhere, special organizations and committees for the protection of consumer rights have been created. In some countries, notably the United States, businesses have their own consumer affairs offices to deal with their complaints.

The functions of state and public organizations consumer protection includes the establishment of quality standards for goods and control over their observance by enterprises. The publicity of the measures taken leads to the elevation of the image of some entrepreneurs and the partial or complete loss of reputation for unscrupulous firms. One way to ensure consumer safety is through labeling the risks associated with use. of this product... If the danger is high enough, then such a warning is provided for by law, as, for example, in the case of tobacco products. Entrepreneurs are responsible not only for the safety of goods, but also for the accuracy of information, its compliance with the real characteristics of the products and services provided. Consumers have the right to know what the product consists of and how to use it, the price, the details of any trade contract, etc.

Based on this, the rights of consumers also lie in the fact that they can make demands that firms are obliged to respond to if they do not want to lose their reputation. Most enterprises in economically highly developed countries make extensive use of feedback from consumers, which helps them correct past mistakes and make decisions about new products and services based on information received from consumers.

The social responsibility of pharmaceutical enterprises provides for whole line aspects, including:

· Maintaining the proper level of health of the population of the country with appropriate drug supply;

· Compliance with state regulations governing the professional responsibility of pharmacists and pharmacists;

· development production base pharmaceutical industry;

Development of environmentally friendly production technologies drugs;

· Expansion of scientific research in order to create domestic drugs;

· Attracting foreign investments and their effective use for the development of production and marketing spheres in the field of pharmacy;

· Providing citizens of Ukraine with medicines and medical products in accordance with medical indications and at a possible affordable price;

· Free and preferential drug provision for some categories of outpatients;

Restoration of the area wild plants listed in the Red Book;

· Ensuring the therapeutic efficacy of medicinal products based on biopharmaceutical, toxicological and clinical trials;

· Ensuring the quality of medicinal products in accordance with the requirements of social standards in relation to the authenticity, purity and quantitative content. Along with social responsibility, an equally important requirement for an entrepreneur is compliance with ethical standards in business. The word "ethics" comes from the Greek "ethos", which means "character", "custom", "disposition".

Business ethics as one of the types of professional ethics is a system of norms of behavior in the field of entrepreneurship. It is the adherence to business ethics that makes it the most effective and profitable. In a market environment, the ethical behavior of a company is one of the most powerful factors in shaping its positive image, which, in turn, leads to commercial success.

Business ethics include a number of aspects. It is the relationship between companies and the state, between producers and consumers, traders and customers, business partners, competitors, and also between employees within the company itself.

Any human activity, including entrepreneurship, has ethical and legal criteria and framework. The laws developed by the state enable society to implement its will, which also concerns the moral and ethical parameters of business. However, simply by following the laws, it is not always possible to simultaneously fulfill all ethical norms accepted in society.

The foreign press or special business publications regularly provide examples of unethical entrepreneurship of specific firms and companies, whose activities, while not violating the laws, are nevertheless classified as unethical, since they are in conflict with the moral and ethical norms of this society.

Most often, ethical problems arise in business in relations with consumers, competitors, partners.

The ethical side of the relationship between an entrepreneur and consumers consists in the adequacy of advertising messages, packaging, labels, trade marks, prices to the true characteristics of goods and services.

In this regard, entrepreneurs must, first of all, obey the requirements of publicity (openness) of information regarding their activities. They are required to publish their constituent documents, address, name of your company, trade mark(brand name, trademark and product advertising). Thus, consumers and other market participants will know who is who on commodity market... In addition, it reduces the risk of purchasing an anonymous product of questionable quality.

The absence of such information, as well as the contradiction between the subject of activity and the published documents, is considered sufficient reason to recognize an economic entity as incapable. Strict rules exist regarding competition between entrepreneurs. Competition policy is one of the basic conditions for business ethics. Its main goal is to ensure equal conditions for competition that do not allow low-quality methods of competition. These include: industrial espionage, bribery and enticement of employees of a competing company, false negotiations in order to obtain classified information, etc.

Competitive ethics prohibit abuse of market dominance and agreements aimed at establishing monopoly prices, dumping prices, dividing markets and discriminating against competitors.

There are many ethical criteria for civilized entrepreneurship, but honesty and decency of business relations occupy a special place. Market ties are based on trust between partners, increased demands on oneself and others, and a sense of duty. For an entrepreneur, his word is law. In the United States and Japan, multimillion-dollar deals are made over the phone, and no one doubts their reliability. The most important criterion for assessing business ethics is the mutual desire of partners to continue contacts.

The pursuit of successful business prompts organizations to take various measures to improve the ethical behavior of employees and administration. These measures include developing ethical guidelines, establishing ethics committees, conducting social audits, and training in ethical behavior.

Business entities with the assistance of interested organizations can develop rules of professional ethics in competition for the relevant areas of economic activity, as well as for certain areas of the economy. The rules of professional ethics in competition are in agreement with the Antimonopoly Committee of Ukraine. The rules of professional ethics in competition can be used when concluding contracts, developing constituent and other documents of business entities. Ethical standards describe a system of shared values and rules of ethics that an organization believes its employees should adhere to. Ethical standards reflect the goals of the organization and contribute to the creation of a normal ethical atmosphere both within the organization and in relation to the external environment. Many firms and companies are converting the developed standards into codes of ethics for their employees. In doing so, they proceed from the premise that high ethical standards will ensure high profits for the business; honest and fair treatment of employees, suppliers, customers, partners leads to more stable, long-term and more profitable activities.

On the other hand, the following are considered prohibited ethical norms: bribes, extortion, gifts to interested parties, fraud, use of information obtained in a confidential conversation, illegal actions in the interests of the company, etc. - for violations of ethics and the resolution of which requires compliance with ethical standards. Most often this concerns the problems of protectionism, discrimination, favoritism and unfair treatment of employees.

Ethics committees are set up to evaluate day-to-day activities from an ethical point of view. As a rule, the members of the committee are the leaders top echelon... Sometimes the committees are replaced by a business ethicist, whose function is to provide judgment on ethical issues related to the organization's activities. Social audits are carried out to assess and report on the social performance of the organization's actions and programs, that is, the level of social responsibility. Teaching the ethical behavior of managers and ordinary employees involves acquaintance with business ethics, increasing sensitivity to possible ethical problems of the organization, etc. In most Western countries, business ethics is included in the curricula of business schools, colleges, institutes and universities. Entrepreneurship that is currently taking shape in Ukraine and other countries of the Commonwealth is significantly inferior in its economic, socio-legal and ethical characteristics to countries with a developed market economy, where the norms and rules of a civilized market have already been established. This is due to the existence of elements such as:

· The psychological barrier, which consists in the fact that for many years the denial of the need for entrepreneurship has been implanted, as well as in the anti-market orientation of the existing norms of labor behavior;

· Shortage of some consumer goods;

Legal uncertainty, non-compliance with laws, unpredictable changing legal conditions commercial activities;

· Administrative obstacles, including bribery and corruption;

· The growth of nationalism;

• striving for autocracy;

· Economic instability of entrepreneurship.

Therefore, the study of business ethics is of particular importance and relevance. A good orientation in these issues will ensure the effectiveness and reliability of the implementation of commercial intentions in all areas of business and protect against possible problems.

Introduction

The topic of my test work: "Social responsibility and business ethics: formation, development, practical application."

The issues of the relationship between ethics and economics have recently begun to be actively discussed in our country.

The purpose of the test is to address issues of social responsibility and business ethics.

Tasks: 1) social responsibility formation, development,

practical use.

2) business ethics formation, development, practical

application.

Question number 1. Social responsibility and business ethics: formation, development, practical application

Social policy is one of the most important directions of state regulation of the economy. It is an organic part of the internal policy of the state, aimed at ensuring the well-being and all-round development of its citizens and society as a whole. The significance of social policy is determined by its influence on the processes of reproduction of the labor force, increase in labor productivity, educational and qualification level of labor resources, on the level of scientific and technological development of productive forces, on the cultural and spiritual life of society. Social policy aimed at improving working and living conditions, developing physical education and sports, reduces morbidity and thereby has a tangible effect on reducing economic losses in production. As a result of the development of such systems in the social sphere as public catering, preschool education, it frees part of the population from the household sphere, and employment in social production increases. Science and scientific support, which determine the prospects for the country's economic development, are also part of the social sphere and their development, and efficiency is regulated within the framework of social policy. The social sphere not only regulates the processes of employment of the population, but is also a direct place of employment and provides jobs for millions of people in the country.

The main tasks of social policy are:

3. Provision of social protection for all citizens and their basic social and economic rights guaranteed by the state, including support for low-income and poorly protected groups of the population.

4. Ensuring rational employment in society.

5. reducing the level of criminalization in society.

6. Development of sectors of the social complex, such as education, health care, science, culture, housing and communal services, etc.

7. Ensuring the environmental safety of the country.

Business takes over the functions of the state and this is called social responsibility. This is primarily due to the lack of an appropriate state policy in the field of social responsibility of business. The state itself cannot determine the model of relationships with business.

The controversy over the role of business in society has given rise to arguments for and against social responsibility.

Business-friendly long-term prospects. Enterprise social action that improves local community life or removes the need for government regulation can be in the self-interest of enterprises because of the benefits of community participation. In a society that is more prosperous from a social point of view, conditions are more favorable for business activities. In addition, even if the short-term costs of social action are high, they can drive profits in the long term as a more attractive business image is formed for consumers, suppliers and the local community.

Availability of resources to assist in solving social problems. Since business has significant human and financial resources, it should transfer part of them to social needs.

Social Inclusion Spending. Funds allocated for social needs are costs for the enterprise. Ultimately, these costs are passed on to consumers in the form of price increases. In addition, firms that compete in international markets with firms in other countries that do not incur social costs find themselves at a competitive disadvantage. As a result, their sales in international markets are reduced, which leads to a deterioration in the US balance of payments in foreign trade.

Insufficient level of reporting to the general public. Because managers are not elected, they are not accountable to the general public. The market system controls the economic performance of enterprises well and badly controls their social involvement. Until the society develops a procedure for direct reporting of enterprises to it, the latter will not participate in social actions for which they do not consider themselves responsible.

Lack of ability to solve social problems. The staff of any enterprise is best prepared for activities in the spheres of economy, market and technology. He lacks the experience to make meaningful contributions to solving social problems. The improvement of society should be promoted by specialists working in relevant government agencies and charitable organizations.

Research on the attitude of executives towards corporate social responsibility shows a clear shift towards greater corporate social responsibility. The executives surveyed believe that pressure to increase corporate social responsibility is real, important, and will continue. Other studies have shown that senior executives in firms have begun to get involved. local communities as volunteers.

The biggest obstacle to social responsibility program development, executives cite the demands of front line workers and managers to increase earnings per share on a quarterly basis. The desire to increase profits and revenues as soon as possible is forcing managers to refuse to transfer some of their resources to programs driven by social responsibility. Organizations are taking numerous steps towards voluntary participation in society.

Business ethics

The word "ethics" (Greek ethika, from ethos - custom, disposition, character) is usually used in two senses. On the one hand, ethics is a field of knowledge, a scientific discipline that studies morality, ethics, their emergence, dynamics, factors and changes. On the other hand, ethics is understood as the totality moral rules in a particular area of behavior of a person or organization. Aristotle was the first to use this term as a designation for a special area of knowledge. The concept of "ethos" denotes the agreed rules and patterns of everyday behavior, the way of life, the lifestyle of any community of people (class, professional group, social stratum, generation, etc.), as well as the orientation of a culture, the hierarchy adopted in it values.

The direct connection of ethics with life practice is well traced in the sphere of so-called professional ethics, which is a system of moral requirements for a person's professional activity. One of the types of professional ethics is business ethics. It arose relatively late on the basis of a common labor morality. In turn, the main place in the ethics of business relations is occupied by the ethics of business (entrepreneurship). It includes management ethics (managerial ethics), business communication ethics, conduct ethics, etc.

Business - proactive economic activities carried out both at the expense of their own and borrowed funds at their own risk and responsibility, the purpose of which is to establish and develop their own business to make a profit and solve social problems of the entrepreneur, labor collective, society as a whole.

Business ethics - business ethics based on honesty, openness, loyalty to the given word, the ability to function effectively in the market in accordance with the current legislation, established rules and traditions.

There are two main points of view of the principles of business ethics:

the rules of ordinary morality do not apply to business, or to a lesser extent. This point of view corresponds to the concept of the so-called ethical relativism, according to which each reference group (i.e., a group of people whose opinion about their behavior a given subject is guided by) is characterized by its own special ethical norms;

Business ethics is based on universal universal ethical standards (be honest, do no harm, keep your word, etc.), which are concretized taking into account the specific social role of business in society.

The importance of ethics in business

In the language of economists, moral values are an informal institution. This is a kind of intangible asset, the handling of which is not spelled out by the letter of the law. However, this feature does not diminish their business value. For example, it is moral factors that significantly affect the size of transaction costs.

The International Institute of Business Ethics has formulated four areas in which companies must act in order to strengthen their reputation. First, it is fair dealing with investors and consumers. Secondly, improving the situation within the team - increasing the responsibility and motivation of employees, reducing staff turnover, increasing productivity, etc. Thirdly, professional work over the reputation, since the deterioration of the reputation inevitably affects the results of the company's work. Fourth, competent work with regulations and finance - only strict adherence to the "spirit" and "letter" of the law makes it possible to create a long-term future for the company in international business.

Ethics in the modern sense is becoming a kind of additional resource for the enterprise. For example, in such an issue as personnel management, in conditions of global competition, it is no longer enough to use economic and financial incentives alone. To keep the company at the level of modern information and communication technologies, the company needs to learn how to influence personnel with the help of cultural and moral values. These values are also playing an increasingly important role in relationships with partners, clients, intermediaries, and finally, with society itself.

Attempts to link moral and ethical criteria and business practice in the field of international business are constantly being made. Despite the shortcomings of today's ethical guidelines for business representatives, every year more and more organizations are trying, sometimes of their own free will, and sometimes as a result of external pressure, to create their own rules for doing business.

The principles of international business are the global ethical standard according to which one can build and evaluate behavior in the field of international business.

Honesty, decency and reliability are the most valued principles of business ethics around the world and in Russia, since adherence to these principles creates the basis for effective business relations - mutual trust.

Mutual trust is the most important moral and psychological factor of business, which ensures predictability of business relations, confidence in the obligation of a business partner and the stability of a joint business.

Features of introducing ethics into business

In practice, when building the ethical space of a company, as a rule, an alliance of the company's specialists in the field of ethics, consultants and theorists is formed. Together, they strive to understand the values that underlie the company's activities, describe the concept of its ethical management, and then develop and implement ethical programs.

The criteria and concept of the company's ethics are "prescribed" in ethical documents - provisions on mission, values, codes, standards of conduct, business conduct. Once accepted and discussed, documents acquire legitimacy and become an instrument of ethical management.

Ethical documents are usually introduced as uniform for all employees of the organization - regardless of position, length of service, and the like. Arrogance in relation to ethical standards devalues the idea. Often the codes explicitly state that it is valid for all employees of the organization, without exception. One of the important principles of adherence to the code is its implementation by the company's leaders. The norms are broadcast from top to bottom. If management violates the provisions of the code, it is only logical that employees will not comply with it either.

Ethical management is carried out at three levels: strategic, regular and risk management. To ensure that the documents do not remain only on paper, but become a real tool for organizing corporate life, understanding its ethical and moral aspects, companies develop business ethics programs, the nature of which depends on the strategic objectives and vision of top managers and owners.

Integration of business ethics programs in the organization, the development of policies that help their implementation, the involvement of stakeholders in the process of discussing and implementing the provisions and requirements of the code of ethics, the distribution of responsibility for resolving ethical issues and problems between employees, managers and departments of the organization - these are the most difficult for Russian companies areas of engagement with corporate ethics. But, the greatest difficulties lie in wait for domestic firms when they try to introduce the infrastructure of corporate ethics and establish its work. This is where the cross-cultural differences between Russia and Western countries come into play. American and European multinational corporations have business ethics departments, ethics commissioners, ombudsmen; special secure communication networks, telephone hotlines, Email", a special portal on the Internet corresponding to software, electronic databases on acute problems. Many companies outsource (performance of these functions by a third-party company) maintenance of hot lines, training of personnel on ethical issues.

Ethics and modern management

Improving indicators of ethical behavior.

Personal values (shared beliefs about good and evil) are at the heart of the problem of business social responsibility to society. Ethics deals with the principles governing right and wrong behavior.

Business ethics is not only about socially responsible behavior. It focuses on a wide range of managerial and managerial behaviors. Moreover, in the focus of her attention are both the goals and the means used by both.

The reasons for the expansion of unethical business practices include business leaders:

1.competition that margins ethical considerations;

2. an increasing desire to indicate the level of profitability in quarterly reports;

3. failure to ensure that managers are adequately rewarded for ethical behavior;

4. a general decline in the importance of ethics in society, which subtly excuses behavior in the workplace;

5. pressure from the organization on ordinary workers in order to find a compromise between their own personal values and the values of managers.

Organizations are taking various measures to improve the ethical behavior of managers and employees.

These measures include:

1. Development of ethical standards;

2. Creation of ethics committees;

3. Providing social audits;

4. Teaching ethical behavior.

Ethical standards describe a system of shared values and ethical rules that, in the organization's opinion, its employees should adhere to. Ethical standards are developed with the aim of describing the goals of the organization, creating a normal ethical atmosphere and defining ethical guidelines in decision-making processes.

Ethics committees. Some organizations set up standing committees to evaluate day-to-day practices from an ethical point of view. Almost all of the members of such committees are senior executives. Some organizations do not create such committees, but employ a business ethicist called

ethics lawyer. The role of such a lawyer is to provide judgment on ethical issues related to the actions of the organization, as well as to fulfill the function of the “social conscience” of the organization.

Social revisions suggested for assessing and reporting on the social impact of the organization's actions and programs. Proponents of social auditing believe that reports of this type can indicate the level of social responsibility of the organization.

Although some companies have tried to use the principles of social auditing, the problems of measuring direct costs and benefits from the implementation of social programs have not yet been resolved.

Ethical behavior training. Another approach that organizations use to improve ethical behavior is to educate managers and employees on ethical behavior.

Employees are introduced to business ethics and are made more susceptible to ethical issues they may face.

Embedding ethics as a subject in university-level business curricula is another form of ethical behavior education that helps students gain a better understanding of the issues of ethical behavior in business.

Conclusion

Summing up, the following must be said. Ethics is becoming an integral part of business practice. corporations should periodically conduct "ethics impact audits". Ethical issues must necessarily become essential element planning process. The problems created by the behavior of multinational corporations in the absence of such analysis become subject to regulation by the host government. Therefore, it is in the interests of each organization to establish uniform ethical principles for operations in all regions, and at the highest possible level, and to strictly and consciously follow them.

At the same time, there is no single “template” of a moral standard: each person has his own understanding of ethical norms, and companies “construct” concepts of their own ethics, which must be coordinated with both external and internal interest groups.

Ethical standards of conduct vary in different countries... Behavior is often determined by the means of enforcement of the law, and not by the very existence of the law. Ethical behavior has no "upper" boundaries. Multinational organizations are characterized by high level ethical responsibility and accountability. The country's attention to ethics increases with the growth of the level of economic well-being.

Introduction

Among the complex of management problems, a special role is played by the problem of improving the management of the company's personnel. The task of this area of management is to increase production efficiency through motivations, incentives and compensations through the comprehensive development and reasonable use of human creative forces, increasing the level of his qualifications, competence, responsibility, initiative.

At the present time, the attitude towards the main productive force of society, the man of labor, is changing. The role of man in the process of economic development is constantly growing. This fully applies to our country. Russia has been going through a period of social change for more than a decade. Such changes affect not only the political, economic and social structures of society, but also inevitably have an impact on the consciousness of people. Transformations are taking place in the value and motivational structures, that is, in people's understanding of what they should live and act for, what ideals to rely on. With the transition of Russia to market economy it became obvious that the laws of a market economy presuppose that people have completely different motives and values than the economy of a socialist society. In this regard, the question arises about the importance of Russian leaders studying the foreign experience in the field of personnel management, theories of motivation, specific methods and principles of incentivizing employees, enhancing their activities and increasing labor efficiency, accumulated over a long period of existence in the market.

The revolution in property and the accompanying transformations of the economic institutions of society led to the fact that millions of people who were previously engaged in an organized, systematic professional

Question number 2 Motivation and compensation: similarities, differences, features of Michael Porter's model

With the transition of Russia to a market economy, it became obvious that the laws of a market economy imply completely different motives and values for people than the economy of a socialist society. In this regard, the question arises about the importance of Russian leaders studying the foreign experience in the field of personnel management, theories of motivation, specific methods and principles of incentivizing employees, enhancing their activities and increasing labor efficiency, accumulated over a long period of existence in the market. It is necessary to transform the value, motivational and compensatory structures, that is, in people's understanding of what they should live and act for, what ideals to rely on.

The economic reforms carried out in Russia have significantly changed the status of the enterprise as the main link in the national economy. The market places the enterprise in a fundamentally new relationship with government bodies, with partners, with employees. New economic and legal regulations are being established. In this regard, relations between the leaders of organizations, between managers and subordinates, between all employees within the organization are improving.

Way to good governance personnel, to enhance its activities and increase its effectiveness lies through understanding the motivation and compensation of people. If you understand well what motivates a person, prompts him to action, what he strives for. Performing a certain work, it is possible, in contrast to coercion, which requires constant control, in this way to build the management of the firm's personnel, so that people themselves will actively strive to do their work in the best possible way and most effectively in terms of the organization's achievement of its goals.

The similarity of motivation and compensation is that the combination of internal and external factors, which, continuously influencing him, induce him to perform certain actions. At the same time, the connection between these forces and specific actions of a person is determined by a very complex system of interactions, individual for each person.

Motivation and compensation stimulate a person to act, therefore, there will be a reward for efforts. For example, a firm may reward its employees with money (wages) that can satisfy a range of needs. However, wages are a stimulating factor only if people attach great importance to them and their value depends on the results of labor.

An increase in wages then must necessarily lead to an increase in labor productivity. In order to establish the relationship between salary and the results achieved in the end labor activity, the following remuneration system is proposed. The meaning of such a system is that by motivating the growth of wages increases the efficiency, for which will be followed by compensation for the employee's wages.

But it should be remembered about the fickle nature of motivation through money. When a certain level of well-being is reached or in certain situations, the monetary factor of motivation decreases its influence on the employee's behavior. In this case, in order to meet the needs, it is necessary to take advantage of intangible rewards and benefits.

The difference between motivation lies in the fact that Motives are incentives, reasons, forces, passions that cause or stimulate a person's activity, prompting him to behave in a certain way. The behavior model depends on the response to these incentives, and compensation is the reward of its employees:

Money (salary) that can satisfy a range of needs. However, wages are a stimulating factor only if people attach great importance to them and their value depends on the results of labor;

Reward is something that can satisfy a person's needs. The leader deals with two types of remuneration: internal and external;

Compensation - cash payments, established in order to reimburse employees for costs associated with the performance of labor or other stipulated federal law duties (Article 164 of the Labor Code of the Russian Federation). compensation payments on labor law the following: travel allowances, for moving to work in another area and for the wear and tear of their tools or other personal property.

No one knows exactly how the mechanism of labor motivation works, what force the motivating factor can be and when it works, not to mention why it works. All that is known is that each employee works for the sake of monetary compensation and a set of compensatory and incentive measures. Cash and other compensation components provide the necessary conditions survival, development of the employee and his leisure time, as well as give confidence and a high quality of life in the future.

Research over the past 30 years has shown that the true motives that drive work to give maximum effort are difficult to define and extremely complex. But having mastered modern theories and models of labor motivation, the manager will be able to significantly expand his capabilities in attracting an educated and wealthy worker of today to perform tasks aimed at achieving the company's goals.

Michael Porter model feature

Harvard professor Michael Porter presented three of his strategies to strengthen the company's competitiveness back in 1980 in his book “ Competitive strategy". They have enough general form, practical subtleties are a private matter for every entrepreneur.

The main essence of Michael Porter's strategies is that for the successful functioning of the company, it needs to somehow stand out from the competitors, so as not to appear in the eyes of consumers as everything for everyone, which, as you know, means nothing to anyone. To cope with this task, the company must choose the right strategy, which it will subsequently adhere to. Professor Porter identifies three types of strategy: cost leadership, differentiation and focus. At the same time, the latter is divided into two more: focusing on differentiation and focusing on costs.

M. Porter's approach to generating alternative strategies is based on the following statement. The stability of the company's position in the market is determined by: the costs with which the products are produced and sold; irreplaceable product; the scope of the competition (i.e. the volume of the market's processing).

An enterprise can achieve competitive advantages and strengthen its position by: ensuring lower costs for the production and sale of goods. Low cost means the ability of an enterprise to develop, manufacture and sell a product with comparable characteristics, but at a lower cost than competitors. Selling its goods on the market at the prevailing (or even less) price, the company receives additional profit; ensuring product irreplaceability through differentiation. Differentiation means the ability of an enterprise to provide a buyer with a product of greater value, i.e. greater use value. Differentiation allows you to install more high prices, which gives a great profit.

In addition, the enterprise has a choice in which "front-width" market to compete: in the entire market or in any part of it (segment). This choice can be made using the relationship between market share and profitability of the enterprise, proposed by M. Porter.

Enterprises that do not have the opportunity to gain market leadership should focus their efforts on a specific segment and strive to increase their advantages over competitors there.

Success is achieved by large enterprises with a large market share, as well as relatively small highly specialized enterprises. Pursuit small businesses duplicate behavior large enterprises disregarding their real capabilities will lead to the loss of competitive positions in the critical area.

For such businesses, to be successful, the rule should be: “Segment the market. Narrow down the production program. Achieve and maintain the maximum share in the minimum market. "

Proceeding from this, M. Porter recommends using one of three strategies to strengthen the position of the enterprise.

1. Leadership through cost savings: Enterprises that decide to use this strategy, all their actions are directed to the utmost cost reduction. An example is the British Ukrainian Shipbuilders (Bi-Yu-ES) company for the construction of dry cargo ships. Low-paid workers of Ukrainian shipyards will be engaged in the manufacture of ship hulls. Cheap Ukrainian steel will be used in the production of ships. Mostly British companies will supply the filling of the ships. Therefore, it is expected that the cost of new vessels will be significantly lower than the price of similar products of European and Asian shipbuilders. Thus, a dry cargo vessel of the PANAMAX class with a displacement of 70 thousand tons is estimated at $ 25-26 million, while a similar Japanese-built vessel costs $ 36 million.

Prerequisites: a large market share, the presence of competitive advantages (access to cheap raw materials, low costs for the delivery and sale of goods, etc.), strict cost control, the possibility of saving costs on research, advertising, service.

Advantages of the strategy: enterprises are profitable even in conditions of strong competition, when other competitors are suffering losses; low costs create high barriers to entry; when substitute products appear, the cost-saving leader has greater leeway than competitors; low costs reduce the influence of suppliers. Strategy risks: competitors may adopt cost-cutting methods; serious technological innovations can eliminate existing competitive advantages and make the accumulated experience of little use; focusing on costs will make it difficult to detect changes in market demands in a timely manner.

Conclusion

In the conditions of the formation of new economic mechanisms oriented towards a market economy, industrial enterprises face the need to work in a new way, reckoning with the laws and requirements of the market, mastering a new type of economic behavior by fitting all sides production activities to a changing situation. In this regard, the contribution of each employee to the final results of the enterprise's activity increases. One of the main tasks for enterprises of various forms of ownership is the search for effective methods of labor management, ensuring the activation of the human factor.

The decisive causal factor in the performance of people is their motivation.

Managers put their decisions into practice with the help of available human resources, the firm's personnel, applying to people the basic principles of motivation, which act as a lever for encouraging themselves and others to work in order to achieve both personal goals and the goals of the organization.

If you understand well what motivates employees, what prompts them to labor actions, what they strive for, performing a certain job, it is possible to correctly, that is, individually, focusing on the personal characteristics of subordinates, form a strategy for activating the personnel of a given company.

This strategy will help the manager to build the management of the firm's personnel in such a way that people themselves will actively strive to do their work in the best possible way and most effectively in terms of the organization's achievement of its goals.

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