Preliminary communication
Social Responsibility Towards Employees as a Factor of Company Profitability
Valentina Vinšalek Stipić
orcid.org/0000-0001-7065-2918
; The Polytechnic “Nikola Tesla” in Gospić, Gospić, Croatia
Abstract
The issue of social responsibility (social behavior) towards employees and the achievement of business goals has also initiated theoretical debates about the nature of the correlation between ethical principles and financial results. Maximizing profits as the sole goal of a corporation has come into conflict with the strategy of a modern corporation. In new business environments there was a problem of social responsibility and awareness of the company towards all stakeholders and not just shareholders. The globalization of the economy, which creates an unstable competitive environment, as well as growing social expectations for the proper functioning of the corporation has placed new demands on the management of the company. At the theoretical level, a discussion began on the need for a new approach in thinking about the corporation and its activities, especially in terms of protection of socio-economic rights, environmental protection and socially responsible business.
The obtained research results show as the correlation between the financing of social rights of workers and the observed variables is small, with the realization of added value of the company (0.200), net profit margin (0.061), return on equity (0.208), while with the indicator of basic earnings significant statistically related almost no there is (0.004).
Keywords
Social responsibility; socio-economic rights; profitability
Hrčak ID:
254120
URI
Publication date:
31.12.2020.
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