An Eastern European and Baltic Perspective on Humanizing Business: The Role of State, Social Entrepreneurship, and For-Profit Enterprises

Abstract

The chapter describes the situation of business humanizing in EEC and Baltic States. Research includes the overview of countries’ social systems transformation in the region as well as challenges that were appeared after soviet block was destroyed. In the face of declining of state support, social programs and benefits that are provided by for-profit companies to their employees and development of social entrepreneurship begin to play very important role in socio-economic relationship.

In the chapter there is description of social entrepreneurship as an important part of business humanizing process. Main characteristics of social business development, projects, types of social enterprises, main barriers and features of regulation are presented. Social entrepreneurship can offer good solutions for social challengers including employment growth among vulnerable groups of population, increasing the availability of social services at affordable prices and etc. At the same time the popularity and the role of social business in national economies vary widely from country to country of the region. There are some country’s specific problems and common obstacles that need to overcome for further sector development.

The last but not the least part of the chapter shows how profit-oriented companies become human oriented. Some of such enterprises provide not only special social benefits for the employees and their families, create good conditions of work and rest but engage in sponsorship, participate in charity and environment protection projects. In the research the experience of several cutting-edge enterprises of the region are presented. So, the process of business humanizing in EEC is going unevenly and require additional efforts from the national governments, private business and society. Joint work of all interested parties will accelerate the process by reducing existing barriers and increasing social responsibility of all economic entities.