INVESTING IN HUMAN CAPITAL AS A PART OF STRATEGY FOR CORPORATE SOCIAL RESPONSIBILITY: THE COMPANIES OF MONTENEGRO AND CAMPANIA

Abstract

This paper explains the importance of human capital for the development of modern business. The level of investment in this important resource through corporate social responsibility (CSR) strategies is measured and analyzed. The structure of human capital includes the following elements: education, investments in health and investments in time for searching the right placement (matching abilities and qualifications with the labor market possibilities / demand). The aim of the research is to determine the differences in investing in education through CSR initiatives implemented by companies of Montenegro and the Italian region of Campania. In addition, the greatest benefits from CSR are analyzed, as well as the greatest obstacles for the implementation of social responsibility initiatives. Montenegro and Campania have certain similarities and differences. Montenegro is characterized by a high level of corruption and organized crime, whose leaders are members of informal group "clans", with a hierarchical structure modeled on the mafia and similar groups in Italy. The criminal clans in this country have an impact on the business of important companies, and thus on the definition of CSR strategy. In Campania, there is a great influence of the informal Camorra group on all areas of society, and thus, on the choice of CSR initiatives. Montenegro belongs to a post-transition society, while the foundations of capitalism in Campania were set much earlier and there is a much more developed tradition of CSR. The sample included 35 Montenegrin and 106 companies in Campania. The statistical method was used, while the online questionnaire was chosen as the methodological tool for data collection. Based on the survey results, 37.1% of Montenegrin companies invest in education, which is the largest share of all observed CSR activities. This is connected with the fact that in this country, throughout history, schooling has always been at the very top of national preferences. On the other hand, 12.3% of Campania companies invest in education, which ranks fourth in the share of CSR initiatives in this Italian region. The largest number of Montenegrin companies that invest in education (46.2%), as the greatest benefit from dealing with CSR states improving the reputation. In second place is growing consumer trust in their company (30.8%), while in third place improving communication with public administration and the local community (15.4%). In the case of Campania companies, which investing in education, the situation has been crystallized. All firms that invest in education, cite improving communication with public administration and the local community as the biggest and only benefit of taking CSR initiatives. From this, one can see the importance of a high degree of decentralization in Italy in which regions with provinces and municipalities has great financial autonomy. In general, the largest numbers of Montenegrin companies (45.7%) cite managerial culture as the biggest obstacle to the strong development of CSR, while in second place (22.9%) is the lack of funding. In the case of Campania companies, the largest number (29.2%) cites managerial culture as the biggest obstacle for the development of CSR, while in second place is the lack of short-term financial return with 28.3%. Lack of funding is mentioned as the last in a series of obstacles, because in Italy there are numerous opportunities for CSR financing at the regional and national level as well as through EU funds.