Social responsibility of commercial entities
Social responsibility of commercial entities
The study’s object is the relationship between economic development and the principle of free economic initiative and, in particular, the relationship between constitutional rights and freedom of economic enterprise. Today’s reality, about 16-17 years after the political changes of the period 1990-1991, proves that the Albanian economy is still far from a free-market economy.
Albania has still considered a country in transition from the countries of Southeast Europe, and establishing a functioning market economy is among the first steps in integrating their integration into the European Union. Indeed, the Albanian economy has so far saved itself quite well from the global economic crisis. This paper will try to separate economic activity freedom according to the constitution’s meaning and the consolidated interpretations in the constitutional jurisprudence.
In Article 11, points 1 and 3, the body provides that the economic system is based on private and public property and the market economy and freedom of economic activity and that restrictions on financial freedom can be made only by law. This freedom means, mainly, the right to enter into contracts, individually or collectively, freely and based on personal will, the right to choose the activity that the individual wants to exercise, the right to select a job according to preference, etc.
Freedom of economic activity contains in itself many rights and privileges such as freedom to create and close a business, freedom of trade or the absence of barriers related to the import and export of goods and services, monetary liberty as a measure to guarantee price stability, fiscal freedom on income whether individual or business, in particular, property rights as the ability of individuals to collect, possess and dispose of items, free from state interference, freedom of investment and free movement of capital, especially foreign wealth, financial freedom and independence from state control, freedom of labour to interact without restrictions by the state.
Also, the release of economic activity contains the state’s obligation to, through the legislator, intervene in the regulation of this freedom, to guarantee, in addition to the release of economic activity, the principle of the social state and the common good. We will begin to analyze:
Chapter I: In summary of the content of the paper. The division into chapters and contents of each chapter. Of course, a detailed overview will be given for each part.
Chapter II: This chapter will interpret Albanian legislation on economic law, the connection of economic law with the constitution and constitutional principles that guarantee and regulate the free market’s performance. Each socio-economic system has its characteristics in terms of how it is implemented in a given society and at a given time.
Economics is not a science; it resembles a technique or way of thinking to give solutions to problems at a given time. In several countries, the economy is organized according to the market economy system. We can not say that Albania has a perfect capitalist system, nor can we say that Albania does not have a market economy organization.
The constitution is the actual act that defines the organizational structure of the state, the relations between state bodies with each other, domestic and foreign, and fundamental human rights and freedoms. In terms of importance and hierarchy, this act is considered the highest among the state’s legal norms. The constitution itself determines its reputation by providing its implementation and the traditional value of other legal actions.
Chapter III: This section will be based on the Albanian constitution’s sources to guarantee the free market. This will be based on an interpretation of Article 11 of the form on economic capital ownership, which may not be subject to restrictions, except by law and only in the public interest. One of the levers that the state uses in the economy is taxes and levies, which affect the market economy.
Setting the reserve criterion on taxes, fees, and other financial obligations will be public after being approved by the Assembly according to the procedure for adopting laws, including the guarantees that the legislative process has regarding the involvement of interest groups publication rules. Interpretation of how the Constitution of Albania guarantees every subject of law that the manner of determining financial obligations will be public, after being approved by the Assembly according to the procedure for the adoption of rules, including the guarantees that the legislative process has regarding the inclusion of interest groups and publicity of laws.
Chapter IV: Economic freedom as an economic principle of the rule of law and financial law in the catalogue of constitutional human rights and freedoms. In itself, it is presumed that economic freedom must guarantee the free exercise of private activity. It favours a liberal economic regime by encouraging competition in the market, whose ultimate goal is presumed to be the consumer’s welfare and the fulfilment of his needs. Yet, although this kind of freedom without any restrictions is the highest form of market freedom. A rule of fundamental rights is not acceptable unless it is done in the public interest and proportionate.
Chapter V: Constitutional guarantees in Italian free-market legislation, we will study how the Italian constitution provides private initiative freedom. There are several interpretations about Article 41 of the Constitution of the Italian Republic: that the release of private economic initiative refers only to the exercise of entrepreneurial activity, another performance relates to the opinion of Italian constitutional jurisprudence, which includes not only the movement of enterprises but also other activities including contractual autonomy. According to Italian doctrine, paragraph 2 of Article 41 of the Italian Constitution represents a limit which they call external.
It is implied that economic initiative dominates. Another concept we will look at is excluding the private economic initiative’s function for the public interest. The articles’ interpretation is intended to highlight the financial industry’s constitutional protection in a context that puts the individual and the collective well-being first.
Chapter VI: Analysis of national and European court decisions on free-market freedom, interpretations of the Albanian Constitutional Court regarding economic freedom where we will analyze a series of decisions of the Albanian Constitutional Court regarding constitutional guarantees of free market and restrictions of freedom of economic activity. The highest form of financial independence means the property right, the release of movement of labour, capital and goods without any restrictions, that the individual has the right to work, produce, consume and invest in any way that he likes. The state must protect this freedom.
Freedom of economic activity contains in itself many rights and privileges such as freedom of business or the ability to set up and close a business, freedom of trade or the absence of barriers related to the import and export of goods and services, monetary freedom as a measure for guaranteed price stability, fiscal freedom on income whether individual or business, in particular, property rights as the ability of individuals to collect, possess and dispose of items free from state interference, freedom of investment and circulation free of capital, especially foreign prosperity without restrictions by the state.
The interpretations of the European Court of Justice in the exercise of economic activity, the monitoring of the European Court of Justice practice, and the incorporation of the Acquis changes in the Albanian legal framework will be part of this chapter’s study.
Chapter VII: I will present a summary of the paper referring to my study.
The community and businesses are intertwined. They operate together, where companies need a thriving community to create a sustainable demand for their products and provide a supportive environment for themselves. An organization, on the other hand, needs successful businesses to provide jobs, jobs and opportunities. Companies contribute to society, making profits, supporting employment, wages, purchases, investments and taxes. But in recent years, both around the world and in Albania, businesses have been considered the leading causes of economic, social and environmental problems.
They are widely perceived to be achieving success and prosperity at the expense of the wider community. Much of the problem lies with the businesses themselves, who continue to view value creation near, optimizing per short-term financial value, neglecting consumers and society’s most critical needs. Social responsibility in business means taking personal responsibility for the actions and impact that company has on society, helping to meet people’s needs, contributing to the development of natural resources of human capital, and focusing not only on profit.
An ethical or ideological theory that shows how an entity (government, corporations, business or individual) has responsibilities to society, which is characterized by being voluntary, not coercive, as opposed to legal obligations, and relates to the involvement of each in aid that it can provide to the community, not only materially but also with the moral support we can provide in terms of ensuring a sustainable environment, equality, people support and environmental protection. Social responsibility in business is an active and voluntary contribution of companies to improve social, economic and environmental conditions and improve their competitive position.
Social responsibility is the obligation of an organization to maximize its positive impact and minimize its adverse effects on society. Social responsibility can be divided into two parts: human accountability and environmental responsibility. Human responsibility refers to the organization’s commitment to the various factors, which are known as “actors” in business language. These parts include employees, shareholders, government, consumers, investors, suppliers, competitors, and society.
– Environmental responsibility refers to the responsibility of the organization in environmental protection.
The concept of social responsibility nowadays is gaining popularity. Companies are becoming accountable for their duties to the various actors associated with them. Increasingly, companies are trying to protect the interests of employees, consumers, suppliers and other parties, and society as a whole. The concept of a business firm that works solely to generate revenue is gradually becoming obsolete. The groups for which the business organization should be responsible are as follows:
Each of the business firms operates in a particular environment and community, over which they have equal responsibilities, towards the society, for its improvement. By interacting with firms, firms provide assistance, support, and protection in a variety of ways. In this connection, business organizations offer the community a range of services and products. They use raw materials and labour from the community, and thus, they must show interest in the environment in which they operate and operate.
Each of the organizations must interact with the community and pro-environment because, in this way, each firm increases its performance, its activity, its brand. “For this reason, every firm must show an interest, to prevent any action that may lead to pollution in the environment.”
In creating environmental protection laws, every firm should pay particular attention because these laws’ issuance serves business organizations to protect the environment without compromising its profit. International organizations have played an essential role in promoting social responsibility in Albania to increase knowledge and active business engagement in social practices.