Simon Kuznets Kharkiv National University of Economics (Kharkiv, Ukraine)
To plan the company’s activities, it is necessary to have information about the future behaviour of its stakeholders. Such information can be obtained by simulating the decisions of the relevant economic subjects. In decision modelling it is necessary to take into account the fact that decisions of economic entities are influenced by such social regulators as social values and social norms, which in recent decades have undergone transformations influenced by the ideas of social responsibility.
The purpose of the article is to improve the basic model of decision-making by taking into account its values and norms of social responsibility, as well as the characteristics of decision-maker’s relations with the respective counterparties.
The results of the analysis. To achieve the goal, in the article it has been analysed the phenomena of social values, social norms and socio-economic relations, as well as their transformation influenced by the ideas of social responsibility. The following characteristics of relations between economic entities, as representations (one subject on the other) and attitude (one subject to another) are distinguished.
The notion of social responsibility is considered in relation to decision theory. The definition of economic entities’ social responsibility is awareness of their influence on the welfare and sustainable development of society and taking into account the interests of society when making their economic decision. With reference to the results of the analysis, a decision-making basic model by subject A is proposed for choosing the parameters of a certain economic action taking into account social values and social responsibility standards: , , , , where: – the number system of alternatives for the implementation of a given economic action; і – that alternative involves the interaction of subject A with the subject ; – vector of estimations of і alternative on the criteria, which describe the consequences of the corresponding economic effect for subject A; – the vector of assessments of і alternative on the criteria that describe the consequences of the corresponding economic impact on the environment and sustainable development of society; – a vector of estimates of і alternative on the criteria that describe the consequences of the corresponding economic effect for the subject ; – the vector of the values ​​of those characteristics of і alternative, which are regulated by the rules of socially responsible behavior; – vector of expected parameters of the behavior of the subject , which characterize the representation of subject A to the subject ; restrictions specify a set of alternatives that meet the standards of socially responsible behavior in society; restrictions specify a set of alternatives that correspond to the socially responsible attitude of subject A to counteragents, which involves taking into account subject A of certain interests of entities ; – utility function that describes the preferences of subject A for the consequences of economic action, both for him and for the environment and sustainable development of society.
Conclusions and directions of futher researches. In the article, the phenomenon of social responsibility to business is considered in relation to the decision theory. Since the ideas of social responsibility influence upon the economic entities’ decisions through social values and social norms, the article proposes to improve the basic model of decision theory by taking into account values and norms of social responsibility in it. The proposed model focused to predict the economic entities’ decisions in the conditions of economy humanization, which is expressed in the subordination of the economic function to social goals. For the practical application of the proposed model, empirical studies are needed to determine the utility functions that describe the preferences of the decision-makers concerned.
Keywords: economic entities’ social responsibility, social responsibility of consumers, decision modeling, social values, social norms, relations of economic subjects
JEL Classification: С02, M14, M31, Z13.
Cite as: Potrashkova, L. (2017). Economic entities’ decision modelling fundaments adjusted for values and norms of social responsibility. Marketing and Management of Innovations, 4, 209-218. https://doi.org/10.21272/mmi.2017.4-18
This work is licensed under a Creative Commons Attribution 4.0 International License
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