Projects / Programmes
Socially Responsible Corporate Governance as the Foundation of the new Development Paradigm of Slovenia and EU
| Code |
Science |
Field |
Subfield |
| 5.05.00 |
Social sciences |
Law |
|
| Code |
Science |
Field |
| S110 |
Social sciences |
Juridical sciences |
| Code |
Science |
Field |
| 5.05 |
Social Sciences |
Law |
Corporate Governance, Corporate Social Responsibility, New Development Paradigm, Public Sector Corporate Governance, Financial and Structure Participation
Researchers (9)
Organisations (1)
Abstract
The subject of research shows the diagram in the Annex 2.
Improving corporate governance
Weak corporate governance (CG) contributed substantially to the emergence of financial and economic crisis, which follows also from the results of an on-going project “Legal and economic aspects of corporate governance in the public and private sector as a tool for overcoming economic and development crisis”, financed by Slovenian Research Agency.
Unfortunately, weak CG is still very present in Slovenia, which can be seen in Communication, adopted by Commission in 2014, about macroeconomic imbalances, stating that the substantial risks are still present due to weak CG, high level of state involvement in the economy, losses in cost competitiveness and the corporate debt overhang.
As seen, there is strong necessity towards a new model of CG. Therefore, some recommendations for an improved framework in Slovenia will be provided, by introduction of some changes, such as:
a) DIVERSIFICATION OF THE CONCEPT OF THE UNIFORM PROPERTY RIGHTS
This anachronism has been resulting to distortions in the structure of the modern society, significant for predominant contribution of innovations and qualified human skills to added value, known today as world economic and financial crisis. Adaptation of classical tools of capitalism is more than needed. One of the issues researched in this project is whether the transformation of property relations can be achieved. Such a transformation would change the contemporary economic paradigm and is therefore condictio sine qua non for reforms needed for the implementation of innovative modern society. That is why the subject of the project will be to diversify uniform private property to new types of property, such as:
- private property right,
- public (state/municipal) property right,
- corporate property right and
- social (social undertakings) property right.
b) INTRODUCTION OF APPROPRIATE INCENTIVES FOR INTRODUCTION OF FINANCIAL AND STRUCTURAL PARTICIPATION
European Commissioner Barnier emphasized that employee financial participation enhances social cohesion which encourages long-term economic growth; enhances CG, improves employees’ motivation and enterprises’ profitability and creates more jobs.
The great importance of this issue at present is seen in recent documents, adopted by Commission and by European Parliament as well as in the conference which took place in Brussels this year.
c) ENHANCEMENT OF CORPORATE SOCIAL RESPONSIBILITY (CSR)
One of the important parts of the research project will deal with thorough analysis of legal and economic incentives for ensuring long-term interest of wide range of stakeholders, stemming from the key findings of the recent project: "Impact Measurement and Performance Analysis of CSR".
d) ESTABLISHMENT OF SOCIAL ENTERPRISES AND COOPERATIVES
CG related to deleveraging the real sector
As mentioned before, the corporate debt overhang seems to be one of risk presented in Slovenia. Inefficient corporate governance has led to increased debt and to an inappropriate structure of financing resources. Therefore, we will try to find if there is some possibility to establish a project group under the auspices of competent institutions to restructure the economy and preserve the healthy company cores. Furthermore, we will make some proposals for the formation of legal bases enabling the functioning of organisations dealing with these activities.
Financing SMEs
More than 99% of all European businesses are SMEs which are the true back-bone of the European economy, being primarily responsible for wealth and economic growth.
Being aware of the their importance, we will try to find what are the ways in which the institutional conditions for its financing in Slovenia and EU could be improved.
Significance for science
The chapter of the book titled Corporate Social Responsibility versus Directors' duties and responsibilities in the scientific monograph Corporate Governance as a Tool for Economic Growth represents an exceptional scientific contribution which identified key barriers in Slovenia and the EU that are preventing full implementation of the concept of CSR as a the foundation of the new development paradigm. Based on the recognition that the same normative approaches do not have identical effect for different social environments - since the effect of normative regulation depends on external factors which go beyond normative texts - we propose the adoption of EU directive, with which director duties within national corporate laws would be harmonized in such a way that compliance with the concept of corporate social responsibility would be the obligation of management, and not merely a recommendation. Scientific article “EU corporate governance, recent trends and developments, related to board composition and conflict of interests”, published in the publication Economic and Social Development, represents an exceptional contribution to understanding corporate social responsibility, with the latter concept being addressed in terms of effective corporate governance. Namely, the very lack of legislation in the field of corporate governance - EU recommendations are inherently non-binding, and consequently under the individual jurisdiction of each EU Member State - this represents an important barrier to effective and sustainable corporate governance.
Significance for the country
A more detailed study of social responsibility has sparked a wider public and political debate on the importance of social responsibility for the further socio-economic development of Slovenia. In the process of analysis and research, the renewed understanding of the concept of "corporate social responsibility" stressed the need to change the relationship between the state and politics in the future development of the Slovenian political and socio-economic system. In addition to the scientific contribution to the project, which resulted in publication of Corporate Social Responsibility and the monograph Social Responsibility, as a result of many years of efforts and research of various concepts and systems in the field of corporate social responsibility, a number of activities that have slightly extended the understanding of corporate social responsibility from a corporate perspective into a wider understanding of the concept of social responsibility (societal responsibility), have been carried out. There were some events that enabled a wider insight / understanding of social responsibility, and at the same time pointed out some systemic deficiencies and inconsistencies: - In May 2017, the book presentation (Social responsibility) was organized at the Faculty of Social Sciences by prof. dr. Rado Bohinc, in order to present some of the results of the project. Simultaneously, a series of discussions on the significance of social responsibility were encouraged. - In May 2017, the FSS Alumni Conference entitled "Social Responsibility" took place. The honorary speaker of the event was the President of the National Assembly of the Republic of Slovenia, dr. Milan Brglez. The introductory contribution to the conference was presented by prof. dr. Rado Bohinc. - In May 2017, prof. dr. Bohinc also participated in the event Future of the Slovenian welfare state, where experts and policy makers from different fields presented their views and solutions to the key challenges facing the Slovenian welfare state. - In September 2017 at 12th IRDO International Conference "Social Responsibility and Challenges of Time" prof. dr. Rado Bohinc presented the new approach towards social responsibility with a contribution "Pillars and tools of new social responsibility". Doctoral candidate Petar Podobnikar presented some key aspects of the monograph Social Responsibility. The results of the project are also promoted in 2018, as follows: - In February 2018, the National Council of the Republic of Slovenia and the Social Responsibility Movement organized a conference titled Ten Demands for Social Responsibility, in which the speakers promoted 10 requirements for social responsibility. The conference was opened by the President of the National Council Alojz Kovšec and prof. dr. Rado Bohinc. - Uniglobe International Management Conference V - Recent advances in Management: Initiatives and Road Ahead (UIMC-RAM-2018) in March 2018 at Uniglobe College, New Baneshwor attracted 600 participants. Dr. Rado Bohinc, Professor at the Faculty of Social Sciences, University of Ljubljana, Slovenia, was invited as a keynote speaker in the program to present contemporary insights on the global corporate social responsibility.
Most important scientific results
Annual report
2014,
2015,
final report
Most important socioeconomically and culturally relevant results
Annual report
2014,
2015,
final report
