Social investments are not the most popular type of investment in our country. Many Russian entrepreneurs simply do not understand the meaning and significance of such investments. However, this practice is gradually being introduced into the business, and some companies are increasingly using various social programs and strategies.
The essence of social investment
Many experts consider this type of investment as an instrument of corporate social responsibility of the company. In fact, the way it is. Social investments - all kinds of resources and financial resources of an enterprise, aimed at implementing external or internal social programs. The purpose of these investments is to increase the standard of living of citizens and reduce social tension.
Some people confuse this concept with charity, which is a one-time help. Investment in the social sphere must be considered as a long-term, clearly planned action.
What are these attachments for?
To answer this question, you need to turn to the practice of foreign companies. Social investments provide the following benefits:
- advertising. The company raises the level of its recognition, improves its image, regardless of the level: local or national;
- organization brand quality. The company is beginning to be associated with prestigious charitable events, which has a positive effect on the status of the company;
- social investment fund involves the support of educational institutions at various levels, which will attract highly qualified specialists to the company;
- tax benefits. Many countries are loyal to organizations that make social investments. Including legislation provides for exemption from certain tax fees.
Types of investment companies
There is a certain classification of organizations that divides them into groups in terms of interest in this matter:
- Big ones. This refers to all the large companies that have long settled in the market. They understand that times are changing, and with them the needs of people. Therefore, they often change their strategy, providing assistance to the social sphere.
- Cautious. As a rule, these are companies that fear power problems. And the current administration requires the active participation of enterprises in the social life of society.
- Socially loaded. This group of organizations is overloaded with social infrastructure. They collaborate with the government, offering their own methods for its development.
- PR people. Here the social efficiency of investments comes to the fore. Such companies are trying to engage in self-promotion and PR. With investments, they cover up their bankruptcy in terms of business.
- Politicians. These are those companies that want to help solve the global problems of mankind, adding something from themselves. These organizations may well rely on dividends.
It can be noted that different companies have their own motives for supporting the now popular topic of social investment.
Attitude to the type of activity
The company's strategy and field of activity are directly related to social investments. The size of the business, form of ownership and other factors do not affect this in any way. According to statistics, labor-intensive industries are aimed at domestic investments, while material-intensive ones are directed at external ones.This is due to the fact that such companies are forced to spend a large amount of money on environmental protection in view of the specifics of their activities.
Business practice as such is developing only in engineering companies and a bit in the service sector. Local communities receive support only from the financial sector and the forest industry. The system of social investments in a systematic form is inherent only to large diversified enterprises.
Problems of investing in Russia
In order to understand what difficulties a particular state experiences in terms of investments, it is necessary to evaluate it in a synopsis of two aspects: qualitative and quantitative. The first of these involves assessing the complexity of social investments. The second is designed to calculate the money spent on the implementation of public programs.
The main problems of social investment specifically in our country:
- misunderstanding of the essence of the concept. There are no specific rules on how such investments should be made;
- lack of system. Often the goals and motives within the company are different, do not allow to come to a common “denominator”;
- social reporting is not regulated by law.
Another problem is the publicity of enterprises. Each social program should be clearly defined and shared. Why is that bad? Because government bodies may have questions about the organization’s income, and in this case, checks cannot be avoided. Entrepreneurs believe that the company's social investments should be designated as fact without further proceedings.
Directions for the development of social investments
It is no secret that in the Russian Federation every employer is obliged to provide his employees with a full social package. This includes vacation pay, retirement and medical insurance, cost compensation when traveling on business trips. Compliance with these conditions will increase the level of social responsibility in our country.
Social Investment Agency is a relatively new concept. It is engaged in attracting investments in the public sphere for the implementation of specific programs, as well as developing projects to improve infrastructure. The development of such institutions will have a positive effect on society. The most famous such center at the moment is the Agency for Investment in the Social Sphere. According to his research, healthcare was the most popular industry for attracting investments.
Social Investment Example
In addition to the well-known social package, the employer has the right to give his employees additional benefits and arrange it as a permanent policy. So, the notorious Lukoil company made a change to the pension program, making it an equity share.
The system of private pension funds began to take shape at the end of the 20th century and is now an excellent manifestation of social policy. An employee, by accumulating his own funds, as well as employer contributions, prepares himself a future pension. The amount that we managed to collect for the period of work in the company belongs entirely to the employee.
In addition, Lukoil makes social investments in the following areas:
- assistance to orphanages and educational institutions;
- development and support of educational programs;
- participation in the competition of public projects;
- financing of medical centers;
- the creation of scholarship programs.
Conclusion
The entrepreneur begins his business with a clear goal - profit. But before starting a business, it is necessary to analyze the state of the market, as well as other circumstances, so as not to burn out and not go bankrupt.
Socially responsible business in Russia exists relatively recently. The development and implementation of public programs has a positive impact on the image of the company and creates certain advantages over competitors.
But the social responsibility of business must be discussed in the context of large enterprises. Small and medium-sized businesses cannot take full advantage of this advantage. Social investments here are practically impossible due to lack of finance. However, almost all the prerequisites for this already exist.
Of course, in Russia there are certain problems with social investment, since the legislation does not provide answers to specific questions. Public demand for information on investments is rather indistinctly formed, and therefore companies are afraid to show their actions.
In this respect, Russia should borrow the experience of foreign countries, where the social sphere is the main one, and companies do everything possible to develop it.