Mechanism for adapting the social orientation of agrarian business under martial law

V. Nahornii, O. Ruban , M. Tymoshenko
Abstract

The purpose of this paper was to study the peculiarities of the functioning of the Ukrainian agrarian business under martial law and to develop recommendations for adapting its social orientation for sustainable development. To achieve this goal, the methods of content, contextual, and PESTEL analysis were used. The social adaptation of the agricultural segment was considered from the perspective of the Triple Bottom Line model, which was based on the idea that the sustainable development of an enterprise determined strategic planning with due regard to the key elements: people, planet, and profit. The implementation of the model was examined on the basis of European cases: Upländer Farmer Dairy (Germany), Gailtal Alp Cheese (Austria), and Parish Grasslands Project (UK). Based on the analysis of these cases, the social reorientation of agricultural business involved multilevel and interdisciplinary cooperation between agricultural entities, the transition from extensive to intensive land management, interaction with local communities, development of green tourism, and community involvement in the preservation of sociocultural heritage. An analysis of European experience allowed the researchers to develop recommendations for the social reorientation of the agricultural sector in wartime: interaction between agricultural entities, communities, and other stakeholders to analyse social challenges and find ways to address these challenges; development of green tourism, including at the level of individual estates, family farms, and small or medium-sized farms; and integration of agricultural enterprises into the strategic planning and management of the communities in which these entities operated. Successful practices included the development of the cooperative movement, support for local communities, environmentally responsible farming, involvement of society in the conservation of natural resources, preservation of cultural heritage, and development of green tourism, including on the territory of family farms and individual estates. The results of the study could be used for the strategic planning of the sustainable development of agricultural business under martial law

Keywords

sustainable development; green tourism; triple bottom line; interdisciplinary interaction; corporate social responsibility; business socialisation

Suggested citation
Nahornii, V., Ruban , O., & Tymoshenko, M. (2024). Mechanism for adapting the social orientation of agrarian business under martial law. Economics and Business Management, 15(4), 103-117. https://doi.org/10.31548/economics/4.2024.103
References
  1. Abdullah, R., Najim, M.M.M., & Esham, M. (2024). Agriculture for sustainable development to empower smallholder farming communities. The Journal of Agriculture Sciences – Sri Lanka, 19(3), 462-474. doi: 10.4038/jas.v19i3.10831.
  2. Abraham, K.T. (2024). Responsible leadership and triple bottom line performance: Imperatives for corporate sustainability. Journal of Global Responsibility, 15(4), 485-500. doi: 10.1108/JGR-06-2023-0111.
  3. Akanpaadgi, E. (2023). Corporate social responsibility and business practices. Journal of Human Resource and Sustainability Studies, 11(1), 138-146. doi: 10.4236/jhrss.2023.111009.
  4. Ali, W., Yu, D., Latif, B., & Kouser, R. (2021). Corporate social responsibility and customer loyalty in food chains – mediating role of customer satisfaction and corporate reputation. Sustainability, 13(16), article number 8681. doi: 10.3390/su13168681.
  5. Almeida, F. (2024). The role of partnerships in municipal sustainable development in Portugal. International Journal of Urban Sustainable Development, 16(1), 231-244. doi: 10.1080/19463138.2024.2380052.
  6. Boiko, V. (2020). Rural green tourism in Ukraine: Problems and prospects. Agrosvit, 22, 58-65. doi: 10.32702/2306-6792.2020.22.58.
  7. Borodina, O., Prokopa, I. & Rykovska, O. (2024). Strengthening the role of local agri-food systems in overcoming the consequences of using food as a weapon in Ukraine. Ekonomika APK, 31(1), 19-28. doi: 10.32317/2221-1055.202401019.
  8. Caha, Z., Skypalova, R., & Mrhalek, T. (2024). CSR as a framework for sustainability in SMEs: The relationship between size, industrial sector, and triple bottom line. Asia Pacific Management Review, 29(4), 451-461. doi: 10.1016/j.apmrv.2024.09.006.
  9. Chauhan, U., & Purohit, T. (2023). CSR and sustainability: A triple bottom line exploration in auto industry. Journal of Research Administration, 6(1), 141-161.
  10. Chen, S., & Kamarudin, K.M. (2024). Interfacing triple bottom line sustainability and metropolitan governance: An empirical exploration of stakeholder value c-creation and conflict. Heliyon, 10(9), article number e38772. doi: 10.1016/j.heliyon.2024.e38772.
  11. Committee hearings on the topic: “State support of the agricultural sector 2024. State and non-state funds and mechanisms”. (2024) Press Service of the Verkhovna Rada of Ukraine. Retrieved from https://www.rada.gov.ua/news/news_kom/247281.html.
  12. Dela, E., Ye, J., & Berhe, H.M. (2024). The impact of corporate social responsibility on financial performance in Indonesia highly polluted industries: Mediating role of industry competitiveness. SAGE Open. doi: 10.1177/21582440241259479.  
  13. Dorosh, O., Kupriianchyk, I., Dorosh, Y., & Butenko, Y. (2024). Ukrainian agriculture in times of war: Analysis of support programmes. Studies in Agricultural Economics, 126(2), 84-89. doi: 10.7896/j.2875.
  14. Dziawgo, D. (2024). CSR as factor influencing investment decisions made by individual investors. European Research Studies Journal, XXVII(3), 553-567. doi: 10.35808/ersj/3447.
  15. Fernandez, S.G., Gestoso, C.G., Romana, F.A., & da Silva, J.M. (2023). Social responsibility practices in companies: A theoretical review. Open Journal of Business and Management, 11(3), 973-982. doi: 10.4236/ojbm.2023.113053.
  16. Horbach, L., Ruban, O., & Humeniuk, Y. (2024). Green economy and sustainable production in globalization. Economy and Society, 59. doi: 10.32782/2524-0072/2024-59-8.
  17. Kabbera, S., Tibaingana, A., Kiwala, Y., & Mugarura, J.T. (2024). Triple bottom line practices and the growth agro-processing enterprises in Uganda. Cleaner and Circular Bioeconomy, 8. doi: 10.1016/j.clcb.2024.100081.
  18. Kim, I.K., & Kim, K.I. (2024). Corporate social responsibility and consumer choice: Lessons from the milk boycott. Management Science. doi: 10.1287/mnsc.2021.01062.
  19. Kormyshkin, Yu. (2024). Challenges and tasks of the agricultural sector of Ukraine in conditions of military aggression. Electronic Scientific Professional Edition in Economics “Modern Economics”, 47,  39-45 doi: 10.31521/modecon.V47(2024)-06.
  20. Kravchenko, T., Borshch, H., Gotsuliak, V., Nahornyi, V., Hanba, O., & Husak Т. (2022). Social responsibility of the government in the conditions of the global pandemic crisis. Postmodern Openings, 13(1), 468-480. doi: 10.18662/po/13.1/408.  
  21.  KSE: Center for Food and Land Use Research. (2023). Agriculture in Ukraine: Pre-war, status quo and a look ahead. Retrieved from https://kse.ua/wp-content/uploads/2024/03/Market-analysis-and-Outlook-of-Ukraine-2023.pdf.
  22. Lafont, J., Saura, J.R., & Ribeiro-Soriano, D. (2023). The role of cooperatives in sustainable development goals: A discussion about the current resource curse. Resources Policy, 83, article number 103670. doi: 10.1016/j.resourpol.2023.103670.
  23. Law of Ukraine No. 389-VIII “On the Legal Regime of Wartime”. (2015, May). Retrieved from https://zakon.rada.gov.ua/laws/show/389-19#Text.
  24. Lu, X., Liu, H.W., & Rahman, M. (2024). The impact of corporate social responsibility on customer loyalty: A case of Nike and Adidas in China. Special Issue: Fostering Economic and Social Development in China, 26(3), 251-260. doi: 10.1002/jsc.2126
  25. Marchyshyn, N., & Ostrovskaya, N. (2023). Green tourism in Ukraine, formation, development and prospects. Social Work and Education, 9(4), 542-550. doi: 10.25128/2520-6230.22.4.9.
  26. Mendes, T., Braga, V., Correira, A., & Silva, C. (2021). Linking corporate social responsibility, cooperation and innovation: The triple bottom line perspective. Innovation & Management Review, 20(3), 244-280. doi: 10.1108/INMR-03-2021-0039.
  27. Minh, S.V., Thao, U.P.N., Tan, K.T., & Van, P.P. (2023). The influence of corporate social responsibility on repurchase intention: The mediating effect of satisfaction. Innovative Marketing, 19(4), 207-219. doi:10.21511/im.19(4).2023.17.  
  28. Mulyani, S.I., Karsidi, R., Kartono, D.T., & Anantanyu, S. (2024). Sustainable partnership between farmers and companies in the PT Sido Muncul Tbk Spice Village Program. Advances in Social Science, Education and Humanities Research, 829. 656-575. doi: 10.2991/978-2-38476-228-6_47.
  29. Nahornyi, V., Tiurina, A., Ruban, O., Khletytska, T., & Litvinov, V. (2022). Corporate social responsibility in modern transnational corporations. Amazonia Investiga, 11(53), 111-121. doi: 10.34069/AI/2022.53.05.11.
  30. Patytska, K.O. (2023). Risks of the development of the economy of Ukraine in the wartime conditions: The impact of the agricultural sector. Business Inform, 4(543), 98-104. doi: 10.32983/2222-4459-2023-4-98-104.
  31. Pechrova, M.S., & Simpach, O. (2024). Corporate social responsibility and the relationship to stakeholders in large agricultural holdings in the Czech Republic. Agricultural Economics, 4, 155-164. doi: 10.17221/369/2023-AGRICECON.
  32. Prokopa, I., Rykovska, O., Mykhailenko, O., & Fraier, O. (2024). The agriculture of Ukraine amidst war and agroecology as a driver of post-war reconstruction. Studies in Agricultural Economics, 126(1), 90-100. doi:10.7896/j.2863.
  33. Prospects for the development of Ukraine’s agricultural sector in the context of climate change. (2024). NISS. Retrieved from https://niss.gov.ua/publikatsiyi/analitychni-dopovidi/perspektyvy-rozvytku-ahrarnoho-sektora-ukrayiny-v-umovakh.
  34. Rahmadhani, S., Faisal, F., Joseph, C., & Januarti, I. (2024). Corporate social responsibility and corporate investments: Does research and development intensity matter? Cogent Business & Management, 11(1). doi: 10.1080/23311975.2024.2375618.
  35. Saleh, M., & Faisal, S.M. (2024). Green tourism promotes sustainable development and combats climate change. Clinical Medicine and Health research Journal, 11(12), 70-89.
  36. Stamatiou, K. (2024). Bridging the gap between tourism development and urban planning: Evidence from Greece. Sustainability, 16(15). doi: 10.3390/su16156359.
  37. Tabenska, O. (2024). Eco-tourism development trends in Ukraine. Economics and Society, 70, 1-22. doi: 10.32782/2524-0072/2024-70-149.
  38. Tafsirun, U., Farhana, A., Faisal-E-Alam, M., & Castanho, R.A. (2024). Green tourism sustainability and its impact on green environment achievement.  In R. Castanho & M. Franco (Eds.), Cultural, Gastronomy, and Adventure Tourism Development (pp. 265-286). Hershey: IGI Global Scientific Publishing. doi: 10.4018/979-8-3693-3158-3.ch014.
  39. Ukraine grain transportation. (n.d.). Agricultural Marketing Service. Retrieved from https://www.ams.usda.gov/services/transportation-analysis/ukraine.
  40. Velten, S., Jager, N.W., & Newig, J. (2021). Success of collaboration for sustainable agriculture: A case study meta-analysis. Environment, Development and Sustainability, 23, 14619-14641. doi: 10.1007/s10668-021-01261-y.