Concept for Organizing and Using Internal Funds for Corporate Social Development

This paper examines internal social funds as an instrument for supporting social development and labour productivity in large industrial enterprises. Based on a two-stage analysis carried out in 2020 and 2024, the study covers four Bulgarian enterprises from sectors of strategic importance: Kozloduy Nuclear Power Plant, Asarel-Medet, Vazov Machine-Building Plants and Yazaki Bulgaria. Its main focus is the relationship between social benefits, employee retention and production efficiency. Particular attention is paid to housing, working conditions, professional development and other forms of social support provided by enterprises. Several scenarios for the allocation of funds for social development are examined, ranging from EUR 2.5 million to EUR 32 million. Calculations show that the expected increase in production efficiency varies from 4.057% under the limited funding scenario to 6.315% when the normative level of social provision is reached. Such results suggest that internal social funds should not be treated only as social expenditure, but also as a management mechanism for stabilizing the workforce and improving organizational performance. By linking social investment with measurable economic effects, the paper contributes to the discussion on corporate social responsibility in the context of Bulgarian industrial enterprises.