Social Responsibility Aspects of Companies’ Insolvency

The issue: Over the last 20 years corporate social responsibility (CSR) has become one of the standard business practices. Despite the positivity and optimism that CSR brings to the corporate table, its relationship with the companies’ insolvency are poorly investigated, leading to concern about its impact. Purpose: The author intends to assess the state of the art of disclosing social responsibility aspects of companies’ insolvency as a case of CSR and seeks the answer for the question if the definite pension and wage benefits in case of corporate insolvencies should be included into management reports. Methodology: Literature sources and public domain data  analysis, analysis of local and international legislative documents and other regulatory official papers, investigation of the practice of corporate social responsibility all around the world, consolidated financial statements of companies, etc. have been used to formulate conclusions. Comparative studies of Belarusian legislation and the relevant international wage and pension protection mechanisms and instruments were analysed for making more informed and well-argued conclusions and recommendations based upon these studies. Findings: Evidence shows that together with the employment issues, occupational health and safety aspects, training and education matters, etc. companies are expected to disclose such information as employees’ and pensioners’ claims in case of company insolvency through disclosing relevant non-financial information in management reports. Value: The research may be the basis for the further practical implementation of disclosure requirements on non-financial and diversity information in international guidelines and principles.