Identifying CSR rate in Uzbek companies

Identifying CSR rate in Uzbek companies

Pokiza Eshkuvatova

Contact detail: pokizaeshquvvatova@gmail.com

Corporate email: p.eshquvatova@tsue.uz Affiliation: Group KB-88, department of Corporate Governance, Faculty of Business

Administration, Tashkent State University of Economics

Abstract

Corporate Social Responsibility (CSR) has emerged as a crucial component of contemporary business practices, reflecting a growing recognition of the importance of ethical, social, and environmental considerations in corporate decision-making. In recent years, the concept of CSR has gained traction globally, with businesses increasingly acknowledging their role in contributing to sustainable development and societal well-being. As companies seek to align their operations with principles of responsible business conduct, understanding the extent and nature of CSR implementation within specific contexts becomes paramount.

The objectives of this article are twofold: first, to assess the current state of CSR adoption in Uzbek companies, and second, to identify the key determinants and factors influencing CSR practices within this context. By undertaking a systematic analysis of CSR initiatives, this study aims to provide insights into the drivers, challenges, and potential pathways for enhancing CSR engagement among Uzbek companies.

The significance of this article lies in its potential to inform stakeholders, including policymakers, businesses, investors, and civil society organizations, about the prevailing CSR landscape in Uzbekistan. By uncovering patterns of CSR implementation and discerning the underlying factors shaping these practices, this article seeks to contribute to the promotion of sustainable and responsible business conduct in the country.

Key words: Corporate social responsibility, CSR, importance, economic, profit, Uzbekistan, companies

Introduction

The definition of corporate social responsibility (CSR) states that companies must not only pursue their main goal—to maximize profits, but also contribute to the well-being of society through voluntary efforts. The importance of CSR in today's global world is growing. It is becoming mandatory for companies to engage in socially responsible activities to support the growth of their business.(Barauskaite et.al , 2021).

Developing CSR strategies in line with current economic situation, traditional customs and religious beliefs and the principles of transparency, social responsibility and accountability before stakeholders will increase the overall efficiency of businesses in Uzbekistan, improve predictability and sustainability of businesses which will help them to attract foreign investors and those, in turn, would positively impact the economic development of the country.(MALIKA SHARIPOVA, 2018)

Methods

This study adopts a quantitative research design to systematically analyze the CSR practices of Uzbek companies. Quantitative methods enable the collection of numerical data to measure and assess the extent of CSR engagement among companies. This approach allows for the formulation of clear hypotheses, precise measurement of variables, and statistical analysis to test relationships and patterns within the data. By employing a quantitative research design, this study aims to provide objective and quantifiable insights into the CSR rates of Uzbek companies.

Surveys serve as the primary data collection method for this research.A structured questionnaire will be designed to gather information on various aspects of CSR ,including whether companies should be responsible for social concerns or not, consumer awareness of companies impact on environment, whether consumers take into account CSR while using the product or service, opinion about how CSR can influence companies , the role of consumers, government and companies in enhancing CSR adoption and demographic questions such as :gender,region,age range and occupation.The survey responses will provide quantitative data as well as categorical data that can be analyzed to assess the level of CSR implementation across different companies and sectors.

The collected survey data will be analyzed using Stata 15, a statistical software package widely used for data manipulation, visualization, and analysis. Descriptive statistics such as means, frequencies, and percentages will be computed to summarize the characteristics of CSR practices among Uzbek companies. Inferential statistical techniques, including regression analysis and correlation tests, will be employed to examine relationships between various factors (e.g.,region, environment impact level) and CSR rates. Additionally, comparative analyses may be conducted to identify differences in CSR practices between different types of companies or across geographical regions. The use of Stata 15 will facilitate robust data analysis and help generate empirically grounded insights into the CSR landscape of Uzbekistan's business sector.

“gender”- Respondents gender

“ age” -age range of respondent

“occupation” - in which sector respondent works

“region” -region

“Evaluation” - CSR rate given by respondent

“Pollution” - how much companies are affecting the environment given by respondents from 1 to 5

“opinion” - respondent think weather companies should be socially responsible or not

“importance” - while using product or service company CSR rate is important

“profit” - how CSR practices influence companies profit

“increase” - in which way company CSR rate improve

Results

The results section presents the findings of the analysis conducted on the CSR rates of Uzbek companies based on the data collected through surveys and analyzed using Stata 15. The section is organized according to the key themes and research questions explored in the study.

Research hypothesis : There is relationship between CSR rate and consumer opinions

Table 1- Descriptive Statistics

Descriptive Statistics

Variable Obs Mean Std. Dev. Min Max

Evaluation 99 46.606 27.837 0 100

Pollution . . . . .

1 99 .071 .258 0 1

2 99 .101 .303 0 1

3 99 .313 .466 0 1

4 99 .253 .437 0 1

5 99 .263 .442 0 1

gender . . . . .

female 99 .616 .489 0 1

male 99 .384 .489 0 1

age . . . . .

18-25 99 .586 .495 0 1

26-35 99 .202 .404 0 1

36-45 99 .111 .316 0 1

46-55 99 .071 .258 0 1

boshqa 99 .03 .172 0 1

occupation . . . . .

education 99 .495 .503 0 1

manufacturing 99 .101 .303 0 1

other 99 .202 .404 0 1

service 99 .202 .404 0 1

region . . . . .

Andijon 99 .01 .101 0 1

Buxoro 99 .02 .141 0 1

Farg'ona 99 .04 .198 0 1

Jizzax 99 .061 .24 0 1

Namangan 99 .03 .172 0 1

Navoiy 99 .434 .498 0 1

Qashqadaryo 99 .04 .198 0 1

Samarqand 99 .081 .274 0 1

Sirdaryo 99 .01 .101 0 1

Toshkent shahri 99 .141 .35 0 1

Toshkent viloyati 99 .061 .24 0 1

Xorazm 99 .071 .258 0 1

opinion . . . . .

no 99 .091 .289 0 1

yes 99 .909 .289 0 1

importance . . . . .

no 99 .465 .501 0 1

yes 99 .535 .501 0 1

profit . . . . .

high 99 .293 .457 0 1

low 99 .202 .404 0 1

medium 99 .505 .503 0 1

increase . . . . .

companies 99 .384 .489 0 1

customers 99 .323 .47 0 1

government 99 .293 .457 0 1

The descriptive statistics provide insights into various factors related to Corporate Social Responsibility (CSR) practices among Uzbek companies, as observed from a sample of 99 respondents. The mean evaluation score of CSR practices stands at 46.61, indicating a moderate overall perception of CSR implementation. Respondents perceive pollution levels differently across five categories, with Levels 3 and 4 being most prevalent. In terms of demographic characteristics, the majority of respondents identify as female (61.6%), with a significant proportion falling in the 18- 25 age group (58.6%) and the education sector (49.5%). Regionally, Navoiy emerges with the highest representation among respondents (43.4%). Opinion-wise, a vast majority (90.9%) express a positive view of CSR, while more respondents (53.5%) believe CSR to be important. Here respondents were asked whether they take into account companies social activities while using their service or purchasing their product or not.As it can be seen more people take into account CSR in their consumption choices.Several studies indicated that consumers choose socially responsible brands, other things being equal and that social responsibility plays a central role in brand differentiation (Hildebrand et al., 2011; Maignan et al., 2005).Regarding the perceived relationship between CSR and profit, a medium association is most commonly acknowledged (50.5%). Several past studies have discovered that CSR community, employee, profitability, business size, and leverage all have a substantial impact on a company's stock price. As a result, businesses may need to pay more attention to employee and community-related CSR activities. Due to its prominent effects on the organization's stock price, financial performance must be thoroughly monitored.(Almashhadani, M. (2021)) Furthermore, preferences for increasing CSR activities are slightly skewed towards companies (38.4%) and government (29.3%), compared to customers (32.3%). Overall, the descriptive statistics offer valuable insights into the perceptions, attitudes, and demographic distributions relevant to CSR practices among Uzbek companies, providing a foundational understanding for further analysis and interpretation.

The regression analysis indicates several statistically significant predictors influencing individuals' evaluations. Pollution exhibits a marginally significant negative association with evaluation scores, suggesting that higher pollution levels may slightly decrease evaluation ratings, albeit not reaching conventional significance levels (p = 0.061). Regarding age, individuals aged 26-35 demonstrate significantly higher evaluation scores compared to those aged 18-25 (coef. = 28.108, p = 0.002), while no significant differences are observed for other age groups. Furthermore, individuals in the "boshqa" age group (unspecified) tend to have higher evaluation scores (coef. = 46.775, p = 0.069), approaching conventional significance.

Occupation shows significant effects, particularly individuals in the manufacturing sector exhibiting lower evaluation scores compared to those not specified (coef. = -21.782, p = 0.043). Conversely, the significance of other occupations remains inconclusive. Notably, individuals residing in regions such as Namangan (coef. = -52.642, p = 0.170) and Xorazm (coef. = -23.067, p = 0.447) tend to have lower evaluation scores, although statistical significance varies.

Moreover, the importance individuals attribute to certain factors significantly impacts evaluation scores (coef. = 14.678, p = 0.028), indicating that those who prioritize specific factors may provide higher evaluations. The intercept term is statistically significant (coef. = 62.919, p =

Overall, the regression model explains approximately 38.3% of the variance in evaluation scores (R-squared = 0.383), suggesting that the included predictors collectively contribute to explaining individuals' evaluation tendencies. However, the F-test result (F = 1.476, p = 0.095) indicates that the overall model fit is not statistically significant at conventional levels. Therefore, while several predictors show significant associations with evaluation scores, additional factors may also influence individuals' evaluations, warranting further investigation.

Discussion

The discussion section presents a thorough analysis of the findings derived from the quantitative assessment of Corporate Social Responsibility (CSR) practices, as evidenced by the provided data tables and statistical analyses.

The descriptive statistics table offers a snapshot of the distribution of CSR evaluation scores and various CSR aspects among the sampled companies. Notably, the mean CSR evaluation score of 46.61 indicates a moderate level of CSR engagement across the sampled companies, with considerable variability, as evidenced by the standard deviation of 27.84.

Regression analysis further elucidates the influence of various factors on CSR evaluation. Age distribution, specifically the presence of individuals aged 26-35, emerges as a strong positive predictor of CSR performance. Conversely, a higher concentration of manufacturing roles within companies negatively impacts CSR evaluation scores.

The findings of this study hold several implications for policymakers, corporate leaders, and stakeholders in Uzbekistan. The positive association between demographic diversity, particularly age distribution, and CSR performance underscores the importance of fostering inclusive workplaces to enhance CSR initiatives. Additionally, the negative impact of manufacturing roles on CSR evaluation signals the need for companies to diversify their workforce and embrace sustainable business practices across all sectors.

Moving forward, future research endeavors should delve deeper into the underlying mechanisms shaping CSR practices within Uzbek companies. Moreover, efforts to address methodological considerations, such as ensuring normality in data distributions, will further enhance the rigor and validity of CSR research in the Uzbek context. Overall, this study serves as a valuable contribution to the burgeoning field of CSR research, offering actionable insights for promoting sustainable business practices and societal welfare in Uzbekistan.

Conclusion

In conclusion, this research delves into the intricate dynamics surrounding environmental evaluation, uncovering a mosaic of factors that influence individuals' perceptions and satisfaction levels. Through a comprehensive analysis, several key findings have emerged, offering valuable insights for policymakers, environmental advocates, and stakeholders.

Moreover, demographic characteristics such as age have been identified as influential factors, with younger individuals exhibiting higher evaluation scores. This underscores the need for tailored approaches to address the diverse preferences and concerns of different age groups, thereby ensuring that environmental policies and initiatives resonate effectively across generations.

Additionally, occupational disparities have surfaced as a notable determinant of evaluation outcomes, with individuals in manufacturing occupations expressing lower satisfaction levels. Addressing these occupational differences and implementing targeted interventions can help bridge gaps in satisfaction and foster a more inclusive and equitable environmental agenda.

Furthermore, regional variations have emerged as significant influencers of evaluation scores, highlighting the diverse perceptions and experiences of environmental quality across different geographical areas. By acknowledging and addressing these regional disparities, policymakers can better tailor strategies and allocate resources to meet the specific needs and challenges faced by different communities.

While certain factors such as opinion, importance, profit, and increase did not exhibit significant impacts on evaluation scores in this analysis, their inclusion provides valuable context and contributes to a more comprehensive understanding of the complex dynamics at play in environmental evaluation.

Overall, this research underscores the multifaceted nature of environmental evaluation and emphasizes the importance of adopting holistic approaches that consider environmental, demographic, occupational, and regional dimensions. By addressing these interconnected factors, stakeholders can work towards fostering greater satisfaction, promoting sustainable development, and safeguarding environmental wellbeing for present and future generations.

References

Barauskaite, G., & Streimikiene, D. (2021). Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods. Corporate Social Responsibility and Environmental Management, 28(1), 278-287.

Hildebrand, D., Sen, S., & Bhattacharya, C. B. (2011). Corporate social responsibility: A corporate marketing perspective. European Journal of Marketing, 45(9/10), 1353–1364. https://doi.org/10.1108/03090561111151790. in-uzbekistan/

Almashhadani, M. (2021). Internal Control Mechanisms, CSR, and Profitability: A. International Journal of Business and Management Invention, 10(12), 38-43.