Scientific Center of Innovative Research, Relationship between public administration and business entities management

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POSITIVE EXPERIENCE OF SOCIAL PARTNERSHIP IN UKRAINE
Nikolai Ishchenko


Abstract


Now a socially oriented form of doing business is developing at a rapid pace. In many cities of Ukraine, the practice of social partnership is successfully implemented. It consists in combining the efforts and resources of authorities and business of the city for joint implementation of socio-economic and cultural projects in all spheres of its life.

Thanks to social partnership, positive changes in regional development are happening faster. The most striking example in Ukraine is the social partnership programs of the Metinvest company. According to data provided in the company's 2019 Sustainable Development Report, the total amount of social investments was $ 11.4 million [1]. The purpose of systematic investment of this company in improving the social infrastructure in regions of its presence is called the creation of better living conditions for employees, their families and all local residents. The directions of investment are modernization of public places and recreational areas, road construction, renovation of residential buildings and so on. In addition to ongoing initiatives and projects, Metinvest's financial resources are used to eliminate the consequences of natural disasters. For example, after the hurricane in Kryvyi Rih city (Ukraine) at July 2019, funds allocated by Metinvest (about $ 177 000) were used to restore damaged infrastructure, in particular power lines and roofs of buildings.

Promoting the development of education, sports and culture have to be called an important area. In 2019, Metinvest invested $ 1.6 million in the development of education and educational institutions (kindergartens, schools, universities). The implemented projects support innovative forms of education, science, technology, engineering and mathematics (STEM), as well as emphasize the development of leadership and entrepreneurship skills among students and teachers. In September 2019, with the financial support of Metinvest, a unique educational program for the city, the School of Municipal Leadership, was launched in the city of Kryvyi Rih. It was initiated by the public organization "Kryvyi Rih Fund of the Future". Among the sporting events that took place with the support of the company are Riverman 2019 and Steel Cup in Zaporozhye city of (Ukraine), as well as the Iron Hundred 2019 cycling marathon and Steel Run half marathon in Kryvyi Rih city (Ukraine). In Italy, Metinvest sponsored the international Genoa Half Marathon.

When implementing complex projects, Metinvest cooperates with city development funds. These funds have become the main channel for the company's interaction with local governments, community groups and international agencies to improve the living conditions of local communities.

An example of successful cooperation between society and business is creation of IT hub and a coworking zone in Kryvyi Rih (Ukraine). At the same time, the company invested about $ 198 000. A new space dedicated to IT professionals and students encourages people to come together and develop new business ideas and products.

Health support should be called an urgent and timely direction. Metinvest invested about $ 1 million in 2019. USA in the repair of medical institutions, the purchase of medical equipment and the like. As of the end of August 2020, the company's investment in initiatives to prevent the spread of the COVID-19 virus amounted to approximately $ 5 million.

At the same time, it should be noted that a number of scientific works of domestic researchers criticize the state of social partnership in Ukraine. Criticism points to the imperfection of the legislative framework and the practice of ignoring both on the part of government agencies and business. Assuming the likelihood of such a state of affairs in certain regions, we note that, as shown by the positive experience of Metinvest in the cities of Ukraine, social partnership can be not only realized, but also effective for a wide range of stakeholders.

So, we consider the main tool for stimulating social partnership to be an effective system of motivation, promoted primarily at the local level.

 

  1. Metinvest company: Sustainable Development Report (2019). P.101-117.
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Keywords


Social Partnership, Sustainable Development Report, Business structures

References


  1. Metinvest company: Sustainable Development Report (2019). P.101-117.