Ruslan Tymofieiev is a founder of the venture builder CLUST, serial entrepreneur, investor, founder, and managing partner at the investment fund Adventures Lab, and a board member of the Young Business Club. Currently, Ruslan Tymofieiev’s investment portfolio includes 15+ technology startups.
Today, we are facing numerous challenges related to the liberation of our territories, changes in ecology, social justice, and economic transformations. Companies are increasingly developing CSR initiatives and addressing social issues with their resources. This is not just a marketing strategy or charity; it is a holistic approach based on moral values and a desire to make a positive impact on society and the environment.
Corporate Social Responsibility (CSR) involves the ability of a business to take responsibility for its actions and impact on the environment, including employees, consumers, and the public, as well as ecological and social aspects.
In this article, Ruslan Tymofieiev will provide more details on the companies’ role of social responsibility in sustainable development, as well as the benefits for both businesses and society.
Social projects as a vector of corporate activity
According to the latest major CSR Ukraine research, 83% of companies implemented CSR policies, with 25% of them systematically allocating funds for social projects (data as of 2018). Whereas, 90-95% of companies in European countries are engaged in CSR activities.
However, current circumstances have prompted companies to consider the positive contributions they can make to both society and the future of our country. More and more businesses are supporting the military, allocating a percentage of their income to the Armed Forces of Ukraine, purchasing military equipment, and rebuilding new housing for those who have lost their homes. This list could go on for a long time. It indicates that companies have become more socially responsible.
Ruslan Timofeev on CLUST SPACE – an innovative smart shelter
The venture builder CLUST started its activity a couple of months after the full-scale war, and even then, we understood that we wanted to be of service to society.
Having chosen the direction of implementing modern security solutions in higher education institutions in Ukraine, we analyzed the current issues in Ukrainian universities. We realized that there is a pressing need for shelters to support the safe learning process for students.
This is how the CLUST SPACE smart shelter project appeared – the first innovative shelter for students at the Igor Sikorsky Kyiv Polytechnic Institute (KPI). After the completion of the first shelter of CLUST SPACE, which is expected by the end of 2023, we plan to implement similar spaces in other universities across Ukraine.
Why it’s worth investing in social projects
This type of investment like CLUST SPACE not only has a positive social impact but can also bring significant benefits to the company itself. Let’s consider several reasons why social investments are becoming increasingly important for businesses:
- Enhancement of Reputation and Image. Investing in social projects demonstrates the business’s social responsibility. Companies actively supporting social and environmental initiatives often enjoy a better reputation and have a more positive image in the eyes of consumers and society.
- Attraction and retention of talent. Today, employees are increasingly inclined to work for companies that not only strive for financial success but also align with values that resonate with their personal beliefs. Businesses actively caring about their social impact and making a positive contribution to society can attract and retain talented employees.
- Market Expansion and Attraction of New Customers. Consumers are increasingly becoming aware of the importance of a business’s social responsibility, and they choose products and services from companies actively involved in social projects.
- Risk minimization. Social investments can help businesses minimize the negative consequences and risks that are associated with unfavorable social and environmental conditions.
What are some other advantages of social investments?
Today, social investments are not just about the ecology. They represent a powerful tool for boosting Ukraine’s economy and stimulating sustainable and balanced development of the country. By investing in social projects and programs, investors can create a favorable environment for the development of economic sectors and improve the quality of life for the population.
For example, investments in education, healthcare, and social services contribute to raising the level of education and health among the population, while support for small and medium-sized businesses promotes entrepreneurship and the creation of new jobs. Investments in technological projects can also generate additional revenue for Ukraine’s budget, which is particularly crucial during times of war.
As we can see, businesses possess significant resources and can act as drivers of positive changes in society. This will contribute to sustainable development, social justice, and environmental preservation. If you decide to invest in social projects, it’s important to choose your direction, identify your resources and capabilities, and implement the project with the greatest benefit for society.
Social investments can also play a crucial role in the development of Ukraine’s economy – they are an important instrument for ensuring a sustainable and successful future for the country.