PhD L. Melnyk, PhD I. Strutynska

Ternopil National Technical university named after Ivan Puliuy

THE IMPORTANCE OF EU EXPERIENCE IN THE PROMOTION OF ENVIRONMENTALLY RESPONSIBLE BUSINESS FOR UKRAINE

Environmental policy and natural resource management at different levels: “enterprise-region-country-group of countries” have been developed and actively implemented in practice in the EU in recent years. EU experience in the promotion of environmentally responsible business is important and relevant for Ukraine. This is due to the following reasons: developed legal framework for environmental protection; existing institutional structures that ensure implementation of the declared commitment and greening key industries and social sphere; availability of literate people who can influence the legislative and executive power and business in matters of environmentally sustainable economic and social developments.

Analysis of the environmental policy and environmental management in the EU over the past decade has shown that the most important on a local and regional level is the state and effectiveness of environmental management of business entities, which form the main environmental load, using natural resources, invest in environmental protection measures.However, most companies tend to lead a socially responsible business, form their environmental image as one of the main advantages in the acute competition for markets for their products and services realization.

Greening of economic activity has become an integral part of most businesses structures, but especially it is expressed on the example of large national and multinational companies. Many of them started work in the field of ecology were among the first not only in Europe but also in the world. The best example of these companies are: “Philips” is of the leading companies in the production of household, medical and lighting equipment; “Volkswagen”is the largest car manufacturer in Europe; transnational company “Shell”which manufactures, sells and transports crude oil and natural gas, producing and selling fuel for ships and planes, produces electricity and develops devices for more efficientuse of energy; Automobile Company “Skoda”. Nowadays every European company is committed to develop and implement its environmental management system in order to reduce the negative impact on the environment.

The analysis of the experiences of other European companiesand transnational corporations to tackle environmentalproblems associated with their activities, as well as in the areas of their interests, allowingconcluded that their contribution to improving the environmentin Europe at the moment it is very essential and the struggle for its highenvironmental image brings tangible environmental results [3].

Problems with establishment the Concept of ecologically responsible business are mostly theoretical in Ukraine because they’re seen at the macro level only, despite the National Environment Strategy for the period till 2020 and the National Environment Action Plan for 2011–2015 that have been approved by Parliament. Despite this, the domestic enterprises and other entities haven’t implemented the environmental management and environmental labeling yet. It means that domestic enterprises are not ready to solve pressing environmental issues, because they haven’t developed a good mechanism and tools for practical implementation of environmental policy in recent years.

At the same time there areprimary benefits tobecoming a Sustainable Business as generally recognized. They are as follows [4]: 1. Enhanced Brand and Increase Competitive Advantage. These days there are more and moreconsumers who want to buy from companies that manufacture energy efficient products, promote health and safety benefits, support fair labor and trade practices and commit to environmentally-friendly practices, if products are of equal quality and price. 2. Increase Productivity and Reduced Costs.Through development of more sustainable business practices, efficiency in operations will increase. With better use and conservation of resources, operations will be streamlined and costs will decrease. 3. Improve Financial and Investment Opportunity.Financial and investment analysts have recognized companies who have developed sustainability plans with regards to energy efficiency and reduction of environmental impact. 4. Minimize Carbon Risk and Improve Energy Efficiency. It is considered that implementation of Sustainable Development Concept into practical activity enable business structures to rich the high energy efficiencyand reduce cost for payment taxes forenvironmental impact. 5. Increase Employee Retention and Recruitment. It is natural that employees want to work with companies who are recognized as ecologically and social responsible one.

The features of Ukrainian development at the present stage are characterized by a lag in addressing environmental issues, the challenges in socially responsible business and poor integration of environmental factors in the development of key economic sectors and social sphere. There were some difficulties in environmental management at the local level as well as across the regions and countries caused by the removal of command-administrative methods and a gradual transition to conventional methods in the world, and insufficient human resources that meet high current requirements. That is why the study and implementation of European practices in addressing environmental issues is especially important for Ukraine nowadays.

EU experience in designing and implementing environmental policy is extremely useful for Ukraine. Since Ukraine has chosen strategic course of European integration it allows using the methodology, mechanisms and tools to address environmental issues in practice.

References:

1. Melnyk L. “Tools of environmentally oriented enterprise management”, Socio-economic problems and the State, No. 2(9), Ternopil, TNTU, (2013), pp. 178-187.

2. Strutynska I. Innovative approaches to restore competitiveness of national producers market global investment”, Transformation processes of the economic system in contemporary challenges: monograph According Society. Edited by Hrynchutskoho, Ternopil. Step, (2014). - 544 p.

3. VaismanYa.I. (2011). Environmental policy and environmental management in the countries of the European Economic Community and in Russia. Perm: Publishing house of Perm. State. Techn. University, 487 p.

4. http://www.eco-officiency.com/benefits_becoming_sustainable_business.html