<abstract xmlns="http://www.w3.org/1999/xhtml">This article aims to analyze the current theory of managing the State-owned Enterprises (SOEs) with the use of Single Ownership Entity and to suggest alternative solution, particularly, managing SOEs with Corporate Social Responsibility (CSR).After a thorough review of the literature analyzing the connection between CSR and SOEs, the article states that there are important missing points in the previous research and academic debate: (1) no scholar directly emphasizes CSR as the answer to the problems of SOEs; (2) there is no research conducted on the comparison of Single Ownership Entity and CSR, evaluating their potential positive effects on SOEs; (3) accordingly, academic literature does not discuss the ways and tools of implementation of CSR in SOEs.The article aims to fill this gap and emphasize the links between CSR and SOEs. Due to the challenges, goals and ownership structure of SOEs, CSR is the most suitable corporate governance model for SOEs and its effective implementation is more vital than the execution of recommendations on creating the single ownership entity suggested by international organizations. The research question of the article is to compare managing the SOEs with the use of the CSR model (Alternative Theory) to single ownership mechanism established by OECD (Current Theory) and find out whether CSR is a better solution to the existing problems of SOEs.Finally, the article discusses the institutional context of SOEs based on the examples of the countries of Eastern and Central Europe where the problems regarding SOEs remain remarkable; presents the balance of interests of stakeholders’ in SOEs in connection to Alternative and Current Theories; and combines analysis, research and recommendations of international organizations and academia towards the problems of SOEs.</abstract>

This article aims to analyze the current theory of managing the State-owned Enterprises (SOEs) with the use of Single Ownership Entity and to suggest alternative solution, particularly, managing SOEs with Corporate Social Responsibility (CSR).After a thorough review of the literature analyzing the connection between CSR and SOEs, the article states that there are important missing points in the previous research and academic debate: (1) no scholar directly emphasizes CSR as the answer to the problems of SOEs; (2) there is no research conducted on the comparison of Single Ownership Entity and CSR, evaluating their potential positive effects on SOEs; (3) accordingly, academic literature does not discuss the ways and tools of implementation of CSR in SOEs.The article aims to fill this gap and emphasize the links between CSR and SOEs. Due to the challenges, goals and ownership structure of SOEs, CSR is the most suitable corporate governance model for SOEs and its effective implementation is more vital than the execution of recommendations on creating the single ownership entity suggested by international organizations. The research question of the article is to compare managing the SOEs with the use of the CSR model (Alternative Theory) to single ownership mechanism established by OECD (Current Theory) and find out whether CSR is a better solution to the existing problems of SOEs.Finally, the article discusses the institutional context of SOEs based on the examples of the countries of Eastern and Central Europe where the problems regarding SOEs remain remarkable; presents the balance of interests of stakeholders’ in SOEs in connection to Alternative and Current Theories; and combines analysis, research and recommendations of international organizations and academia towards the problems of SOEs.

Is Corporate Social Responsibility (CSR) a New Alternative to Governance Challenges of State-Owned Enterprises (SOEs)?<xref ref-type="fn" rid="j_cejpp-2020-0007_fn_001_w2aab3b7c13b1b6b1ab2aaAa">3</xref>

Centre for Corporate and Commercial Law at the School of Law of LEPL Ilia State University

School of Law of LEPL Ilia State University

Central European Journal of Public Policy

This work is licensed under the Creative Commons Attribution 4.0 International License.

Is Corporate Social Responsibility (CSR) a New Alternative to Governance Challenges of State-Owned Enterprises (SOEs)?

This article aims to analyze the current theory of managing the State-owned Enterprises (SOEs) with the use of Single Ownership Entity and to suggest...

Is Corporate Social Responsibility (CSR) a New Alternative to Governance Challenges of State-Owned Enterprises (SOEs)?³

Publicado en línea: 27 nov 2020

Páginas: 28 - 46

Recibido: 30 mar 2020

Aceptado: 31 mar 2020

DOI: https://doi.org/10.2478/cejpp-2020-0007

Palabras clave
Corporate Social Responsibility (CSR), State-owned Enterprise (SOE), Supervisory Board, Corporate Governance Code, Single Ownership Entity

© 2020 Davit Maisuradze, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Is Corporate Social Responsibility (CSR) a New Alternative to Governance Challenges of State-Owned Enterprises (SOEs)?3

Publicado en línea: 27 nov 2020

Páginas: 28 - 46

Recibido: 30 mar 2020

Aceptado: 31 mar 2020

DOI: https://doi.org/10.2478/cejpp-2020-0007

Palabras claveCorporate Social Responsibility (CSR), State-owned Enterprise (SOE), Supervisory Board, Corporate Governance Code, Single Ownership Entity

© 2020 Davit Maisuradze, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Is Corporate Social Responsibility (CSR) a New Alternative to Governance Challenges of State-Owned Enterprises (SOEs)?³

Palabras clave
Corporate Social Responsibility (CSR), State-owned Enterprise (SOE), Supervisory Board, Corporate Governance Code, Single Ownership Entity