Ukraine

Social responsibility of business is one of pre-requisites for sustainable development of Ukraine

Business is an essential component of all societies in all countries. Most people around the world count on the business sector for their employment and livelihood, whether self-employed, entrepreneurs, farmers, or employees. The contributions of businesses of all shapes and sizes - small, medium-sized and large multi-national and state owned enterprises - are indispensable for the achievement of all three dimensions of sustainable development, both globally and locally. Business has changed dramatically over the past 20 years. The world’s largest corporations have sales greater than Gross Domestic Product of many nation states. Small and medium-sized enterprises (SMEs) make up over 90% of businesses in the world and account for 50-60% of worldwide employment, particularly in developing countries (USAID estimates). SME’s can therefore play a critical role for green growth both in the formal and informal sectors and thus to poverty eradication, environmental responsibility and social welfare. Business has also made tremendous progress over the past 20 years, in terms of awareness, engagement, and action. Progressive businesses of all sizes are leading by example. They are committing themselves to sustainable operations and products. They are reducing environmental impacts across more inclusive value chains. They are increasing energy, water and resource use efficiency; they are investing in low-carbon energy; they are reducing waste and recovering used materials. They are combating corruption and promoting social equality. However, more needs to be done. Secretary‐General Ban Ki‐moon recently said: “Private business must step in and help governments come up with solutions for sustainable growth.” This is the reason why UNDP project ‘Integrating Rio Conventions Provisions into Ukraine’s National Policy Framework’ is targeting business sector with its awareness raising campaigns. On May 14 the project gathered representatives of business companies to discuss issues and possible solutions to the challenges which hinder improvement of eco-friendly performance of Ukrainian business companies. The speakers informed of the global sustainable development goals and of the role of business companies in meeting them. The business representatives shared their ideas on how national environmental regulations could be improved to stimulate private sector towards higher environmental standards of operation. They included improved mechanisms of financial stimulation which could result in benefits for the companies which reduce their environmental impact; transparency in the use of the state budget funds, to make sure that the environmental taxes are utilized for nature conservation measures; formation of special purpose (environment recovery) budgetary funds instead of the present practice when these funds go to the State budget of Ukraine. Olena Ovchynnikova, UNDP Project Manager, emphasized that ‘The private sector is one of the most powerful driving forces which makes a huge impact on the country’s development. It creates working places; it stimulates innovations; it produces goods and services for the people; finally, it impacts the environment. Joint responsibility of all layers of the society - the government, private sector, general public, NGOs will ensure effective implementation of the national environmental policies as a component of the country’s sustainable development priorities’.