Kateryna Boyko

Taras Shevchenko National University of Kyiv,

Ukraine

katiy.boyko@gmail.com

DISCLOSURE OF NON-FINANCIAL INFORMATION IN CORPORATE SOCIAL REPORTING AS A STRATEGY FOR IMPROVING MANAGEMENT EFFECTIVENESS

Ivan Derun

Taras Shevchenko National University of Kyiv,

Ukraine

ivanderun0601@gmail.com

 Abstract. With the economic relationships being, as evolved, as they are today, the need for further development of the concept of intellectual capital is gaining particular relevance as it is the key factor that determines the difference between companies’ market and book values, and corporate social responsibility levels. The objective of the research is to find the key gaps and shortcomings in  the existing approach to intellectual capital accounting and reporting, and to propose appropriate solutions relevant to fully meet the information needs of  stakeholders regarding the capitalization of costs associated with the creation of internally generated intangible assets, maintaining records of personnel-related costs. The authors  propose a technique for data completeness analysis, which allows  evaluating   the  quality of non-financial report (on the scale from 1 to 268, were the 268 is the most informative report) by taking in  consideration the contents of information provided in the companies’ reports under  each of 32 disclosure items grouped into  eight content elements. Disclosure items developed are based on the assessment of possible information which can be provided in  non-financial reports. Ten Ukrainian businesses operating across different sectors of the economy which published their corporate social responsibility reports have been evaluated by using the proposed technique and the received total rate is from 24 to 150 points.

Received: July, 2015

1st Revision: September, 2016

Accepted: November, 2016

DOI: 10.14254/2071-8330.2016/9-3/13

JEL Classification: M14, M41

Keywords: intellectual capital, social responsibility, corporate social reporting, non-financial data, integrated reporting