CORPORATE SOCIAL RESPONSIBILITY: MEASURING AND REPORTING THE EFFECTIVENESS OF COMMUNITY INVOLVEMENT ON THE BASIS OF THE LBG MODEL

Corporate social responsibility is increasingly becoming the only way to sustainable development as well as the basis for competitiveness through factors such as the strengthening of brand reputation, attracting and keeping talented employees, an increase in efficiency, cost savings, meeting the expectations of society and creating new opportunities for business and contributing to economic growth. In connection with the necessity of the implementation of the sustainable development, business becomes aware of the executor of social objectives and business benefits. The objective of this paper is to introduce indicator the London Benchmarking Group (LBG) as a practical tool used in business to measure the costs and effects of social commitment of companies on the market. The analysis of the literature, simple statistical methods and case studies of several best practice applications of the LBG on the market were the research methods used in the paper. Special attention has been paid to the aspect of how the LBG model enables the evaluation of the costs and effects involved in companies actively participated in the model within years 2013-2016.