The principle of social responsibility of business as a tool for balancing the rights of owners and obligations to society in modern Russian legislation

Abstract

The principle of corporate social responsibility is gaining increasing importance in contemporary Russia, yet its integration into legal and economic practice faces the challenge of balancing shareholders’ rights with obligations to society. Current legislation does not fully provide effective mechanisms to harmonize these interests, creating barriers to sustainable development and reducing the potential for interaction between business and the state. This study aims to analyze the role of the principle of social responsibility as a legal regulatory tool capable of ensuring a balance between commercial goals and the public good, as well as to assess the effectiveness of existing legislative incentives. A comprehensive methodology, combining theoretical and empirical analysis, was applied to explore the issue. A review of domestic and foreign academic publications and regulatory acts was conducted, employing comparative and historical-legal analysis methods. The empirical base was formed using data from sociological surveys, qualitative interviews with stakeholders, and statistical analysis of the performance indicators of Russian companies. Special attention was paid to assessing the impact of various legal incentives – such as tax breaks, state subsidies, and grant programs – on the level of corporate social activity. The study’s results demonstrate a positive trend in Russian businesses’ involvement in social projects: over the past five years, the average number of initiatives implemented per company rose from 3.27 to 8.53. The analysis showed that specialized grant programs are the most effective legal incentive, with an efficiency gain coefficient of 1.42. Tax breaks and partnerships with regional authorities also exert a significant positive influence. At the same time, it was found that the key barrier remains the lack of clarity in legal regulation and the absence of systematic state support tailored to the needs of different industries and regions. The analysis confirms that social responsibility is not an undue burden but a factor enhancing a company’s reputation and competitiveness. To achieve a sustainable balance between shareholders’ and society’s interests, further improvement of legislation is needed, aimed at creating a flexible and transparent system of incentives. Effective legal regulation, supported by constructive dialogue among the state, business, and the civil sector, is the key condition for fostering a responsible entrepreneurial culture and stable social development.