IMPORTANCE OF SOCIAL RESPONSIBILITY IN BUSINESS SECTOR OF BOSNIA AND HERZEGOVINA

Because of the benefits for all stakeholders, corporate social responsibility (CSR) is a concept that is now becoming increasingly popular and is also an integral part of doing business in the modern world. Through applying CSR, the business sector contributes to sustainable development and companies use it as their competitive advantage because it represents not only a desirable but also a necessary form of behavior in all business activities. The aim of this paper was to investigate the level of CSR policies implementation in small, medium, and large companies that are operating in Bosnia and Herzegovina. The research instrument is adapted in order to analyze the application of particular CSR policies: workplace policies, environmental policies, marketplace policies, and community policies. The study also analyzed the possession standards related to the CSR implementation practice. For the purposes of the survey, data were collected from 90 companies operating in Bosnia and Herzegovina. The collection of primary data was conducted using the online survey technique. Based on the conducted research, it has been obtained that companies in Bosnia and Herzegovina, regardless of the size of the companies, apply certain forms of CSR policies in their operations. The analysis also found that companies in Bosnia and Herzegovina attach different importance to certain CSR policies. The results related to the selection of CSR areas, the directing of financial resources in CSR, as well as the method of decision-making, and the degree of application of norms and standards, indicate that companies in Bosnia and Herzegovina do not have a strategic approach to CSR. Economic responsibility is the primary responsibility of companies in Bosnia and Herzegovina, but following current global trends, it is necessary to work to improve other dimensions and areas of CSR. The lack of significant differences in practices of CSR companies in Bosnia and Herzegovina, with regard to their size and giving the most importance to economic aspects of CSR, indicates an insufficient understanding of the modern approach to CSR from the side of the management of the companies. Government as well as the non-profit sector should support companies in implementing CSR policies to become more environmentally and socially responsible. Nevertheless, although there is no strategic approach, it can be concluded that companies in Bosnia and Herzegovina implement certain CSR policies. Based on the research results, the paper provides an overview of CSR policies in Bosnia and Herzegovina and offers some implications guidelines for managers, as well as guidelines for future CSR research.