Forms of participation of industrial holdings in the socio-economic development of the territory

Maryna V. Melnikova, Kostantin V. Kosytskyi


The paper covers the problems of participation of large enterprises and associations, including industrial holdings, in ensuring socio-economic development of the territory. The functional role of large enterprises and associations in the structure of the national economy is characterized, which is to contribute to the solution of economic, social and strategic tasks, as well as the tasks of the territory development. It has been determined that to implement the tasks of the territory development the large business is involved in the form of direct and indirect participation. Indirect participation is realized in the corporate social responsibility system by providing personnel with adequate working and living conditions, including the creation of jobs, salaries payment, fulfillment of tax obligations, prevention of diseases, and housing construction. An important aspect of the indirect participation of business in the development of the territory is its implementation of the budget-forming function due to tax sources. This is achieved through the formation and implementation of the system of corporate tax culture of an industrial holding. The direct involvement of business implies the social investment in the implementation of projects on the territory development on the principles of cofinancing or charity. The experience of the participation of industrial holdings in the implementation of social partnership projects in 2013-2015 is analyzed. An engagement of business to solving social and economic problems of the territory development is carried out by local authorities through the use of an appropriate mechanism. This mechanism includes such organizational forms as the financial, tax, non-financial cooperation, as well as the contractual relations and municipal order. The tools of the mechanism are: the negotiation process between the representatives of local authorities and business, technologies of identifying and coordinating the interests of the partners. It has been proved that it is expedient to use the forms of direct and indirect participation of industrial holdings in ensuring socio-economic development of the territory comprehensively.


industrial holding; socio-economic development of the territory; forms of participation in the development of the territory

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