The premises for corporate social responsibility in insolvency proceedings

Abstract

Corporate social responsibility concept is frequently discussed in the literature in the context of its positive impact on the value creation and the company's long-term development. However, it can also be applied with regard to companies facing bankruptcy. Perceiving bankruptcy as a social problem allowed formulating the objective of the research presented in the paper, which is to present the premises for CSR concept in insolvency proceedings. The analysis of the domestic and foreign literature on the subject together with appropriate legislative documents allowed stating that CSR is used in the insolvency proceedings practice. Such an approach is consistent with the idea of the institution of insolvency, which is based on the socially responsible distribution of losses between the stakeholders of a bankrupt company or on the verge of bankruptcy. The paper contributes to the scarce literature on the implementation of corporate social responsibility assumptions in insolvency proceedings. It also discusses the stakeholder theory and attempts to relate it to insolvency proceedings practice, as well as indicates the direction of changes which may have a positive impact on the socially responsible conduct of these processes. (English) [ABSTRACT FROM AUTHOR]