INTERRELATION BETWEEN CONTROLLING AND SOCIAL RESPONSIBILITY IN THE CORPORATE GOVERNANCE SYSTEM

Abstract

The purpose of the article is to investigate the theoretical and applied aspects of integrating controlling into the system of corporate social responsibility (CSR) of enterprises under the conditions of corporate governance transformation. The relevance of the research lies in the increasing need for harmonization between financial management tools and social responsibility strategies in the context of sustainability and stakeholder-oriented business models. Research methodology. The achievement of the stated objective was ensured through the application of methods of logical generalization, analysis and synthesis, comparative and systemic approaches, as well as structural-functional analysis. A methodological toolkit was used to identify the functional interrelations between controlling instruments and CSR mechanisms at different levels of enterprise management. The research also applied scenario modeling to assess the impact of socially significant decisions on the overall strategy of sustainable development. Results. The article demonstrates that the implementation of controlling contributes to enhancing the transparency of management decisions, optimizing socially oriented expenditures, and monitoring ESG indicators. Controlling is interpreted not only as a financial or information subsystem, but as a strategic component of value-based management. The study identifies the key functions of controlling in the context of developing a socially responsible business model, including coordination, social budgeting, cost-effectiveness analysis of CSR programs, and reporting. Directions for integrating controlling tools into the CSR system of enterprises are proposed, including the implementation of social KPIs, incorporation of ESG criteria into internal budgeting and planning processes, formation of internal policies for assessing the social and environmental impact of operations, and the development of non-financial reporting in accordance with international standards such as GRI, SASB, and the Integrated Reporting Framework. Practical significance of the research results. The application of the proposed theoretical and practical approaches will improve the effectiveness of CSR policy implementation at enterprises by ensuring its strategic consistency and digital support through controlling systems. In this regard, controlling becomes a multifunctional platform for stakeholder engagement, risk mitigation, and long-term value creation. It also facilitates the transformation of corporate governance toward sustainability-oriented practices and enables enterprises to strengthen their competitive advantages in the context of global market integration and growing social expectations. Furthermore, the digitalization of controlling processes ensures the scalability and adaptability of CSR initiatives, reinforcing organizational resilience and responsible decision-making in a volatile environment.