A model for reporting an economic entity on sustainable development based on the requirements of interested users

The purpose of the work is to analyze and improve financial instruments and models of sustainable development of economic entities. The object of research is economic entities. Research methods: general scientific methods of information analysis and synthesis, comparison. The article analyzes past research on the topic of ensuring financial stability and sustainable development of economic entities. Models, tools and methods of sustainable development and financial stability of economic entities are considered. It is concluded that there is no single model or concept of sustainable development for different levels of economic entities. Two groups of methods are identified: the institutional approach (sustainable development is ensured through the development of state institutions), and the innovative approach (sustainable development is ensured through innovation, social, environmental, and managerial components). The scientific novelty of the research consists in complementing models and methods of sustainable development by including economic entities of various scales. The content of the concepts of “sustainable development” and “financial stability” has been supplemented in relation to economic entities of different scales. Three levels of economic entities of sustainable development are proposed: microeconomic (individual companies, multinational corporations), mesoeconomic (industrial clusters, special economic zones (SEZs), and macroeconomic scale (national economy, associations of states). Sustainable development tools are defined as a set of models, techniques, and application practices that ensure the sustainable development of an economic entity over a certain planning horizon. The main instruments include: lending, investment, public-private partnership (PPP), subsidies and benefits, free customs zones, the creation of a single trading space, and a single currency. The scale of economic entities is illustrated by the example of real industrial clusters, special economic zones and state associations. The interaction of economic entities at different levels in achieving the goals of sustainable development within a single model is substantiated. The interaction of economic actors within the framework of a common model makes it possible to achieve global sustainable development goals. Thus, sustainable development is a factor in the globalization of modern economic entities at various levels.

Subject. The article investigates financial flows. Objectives. The study is to determine directions of financial flows in global social and economic entities. Methods. I rely upon the systems approach and methods of descriptive statistics. Results. The article illustrates the importance of national interests in financial flows of global social and economic entities. I emphasize that finance is a factor determining the importance of national interests. Finance mirrors the national development and opportunities of a social and economic entity to protect its sovereignty. Sustainable development seems to be the ground for solving any issues of national interests as part of financial flows of social and economic entities. This may be feasible through fund raising. I determined directions of financial flows streaming to socialist and capitalist social and economic entities. In Russia capitalist social and economic entities emerge due to a positively-skewed distribution of values around the average growth rate of direct investment in non-financial assets and portfolio investment, and a negatively-skewed distribution, i.e. military spending, inflation, fiscal revenue and general reserves net of gold. The article highlights that Russia and China have similar economic views on poverty and equality. Conclusions and Relevance. As global economic ties transform and controversies concerning the world order escalate, capitalist economies disregard the specifics of the social and economic paradigm and national interests of other countries. Such controversies can be eliminated if multiple economic interests are simplified. Sustainable development and respective goals seem to offer a solution to national interests as part of financial flows of social and economic entities. The findings unveil opportunities for exercising national interests in global social and economic entities by regulating a source of financial flows, generating new competencies for managerial decision-making on sustainable development goals.

The paper describes the basic principles of information support for innovative and investment activity of economic entities using stakeholder approach. This approach is based on the business analysis concept which involves taking into consideration the changes in internal and external environment and their impact on interests and requirements of key stakeholders of an entity. To ensure the balance of the interests of innovative and investment activity stakeholders the author justifies the necessity to systemize and structure both accounting and not accounting information. The paper provides the classification of the main users of information about innovative and investment processes and identifies the basic requirements to the information necessary for these groups of stakeholders. It also substantiates the needs and expectations of different groups interested in innovative activity (institutional units of public administration sector, social and public organizations, suppliers, customers, investors, competitors, founders and staff). Applying the concept of sustainable development the author formulates the principles of organizing the effective analytical toolkit for innovative and investment activity which contributes to the achievement of the goals of long-term sustainable development of an economic entity. This allows the business to respond flexibly and timely to the requirements of internal and external stakeholders in accordance with the stated goals and the chosen strategy of innovative development. The author offers a mechanism for cooperation between key stakeholders of innovative and investments processes which is based on singling out the interests and requirements of stakeholders belonging to the first and second circles. This mechanism would make it possible to ensure more reasonable cooperation between key business stakeholders and in future could result in creating value for stakeholders in a form of different benefits and advantages which would be impossible without joining efforts and harmonizing goals.

The short time for compiling social reporting by economic entities causes the existing problems of presenting relevant and comparable information in it. This pre– determines the need to develop recommendations for the preparation of social reporting based on the requirements of stakeholders. To solve problems to achieve this goal, general scientific methods (abstract– logical, comparative analysis), systemic and situational approaches, as well as special methods of logical comparison of actions and indicators of social reporting were used. As a result of the study, an approach to the formation of indicators included in social reporting, which is relevant to regulated actions in the field of social responsibility, was substantiated, and based on the analysis, the incomparability of the composition of indicators included in social reporting by companies was proved. The authors' proposals on the use of an approach that is relevant to the regulatory requirements for the composition of actions in the formation of the composition of indicators on social and labor relations have a theoretical character. The authors' proposals on the need to regulate this approach to compiling social reports of interested economic entities have a practical character.

The entities, that relate increasingly more to the concept of sustainable development and who engage in sustainable development actions, communicate and transmit to markets a more transparent image, through the use of extra-financial information, but without forgetting their economic role, fixing the ethical rules and applying operating principles that take into account the interests of all partners. In terms of performance of an enterprise, it can not only appreciate from the financial perspective, as necessary the use of extra-accounting information, especially those environmental and social. The objective of this paper is to present on the one hand, the annual reports types that may be published by economic entities, with respect to their social and environmental impacts, on the other hand to show that, increasing the performance of organizations involves combining a sustainable strategy that does not neglect any moment the purposes of all the stakeholders and above all to respect social and environmental principles. To respond to new information needs created as a result of the awareness of the economic entities responsibility towards stakeholders, in the theory and practice of financial reporting appeared reporting models that are based on stakeholder requirements, for ethical corporate information, environmental and social information.

Financial performance is a complex indicator that has represented and represents a priority, an assurance of profitable economic results, and also a hard to reach indicator. Given the importance and necessity of measuring the financial performance both for the internal and external environment of the economic entity, the main purpose of this article is to present concepts regarding the financial performance: typology, importance, indicators that measure the performance. The paper also aimed to highlight the importance of knowing and measuring performance, based on an empirical study conducted on a sample of five companies in the pharmaceutical field (companies whose object of activity is the retail trade of pharmaceuticals, in specialized stores - CAEN 4773) for which profitability indicators were analysed for a period of fifteen years (2004-2018). The five companies were chosen on the basis of turnover, representing the five best performing companies in the field of trade in pharmaceuticals. The research results show that financial performance is the goal of an economic and social game whose main actors are economic entities, also it is a measure of profit, growth, productivity, value creation, being a complex indicator that confirms the profitability of the business, and performance evaluation involves meeting the requirements of stakeholders. In addition to obtain profit, an entity must focus on sustainable development business, on a capitalization of factors of production, obtaining the best and optimal results in relation to the resources consumed.

Stakeholder requirements (also known as user requirements) are defined at an early stage of a software project to describe the problem(s) to be solved. At a later stage, abstract solutions to those problems are prescribed in system requirements. The quality of these requirements has long been linked to the quality of the software system and its development or procurement process. However, little is known about the quality defect of redundancy between these two sets of requirements. Previous literature is anecdotal rather than exploratory, and so this paper empirically investigates its occurrence and consequences with a case study from a UK defense contractor. We report on a survey of sixteen consultants to understand their perception of the problem, and on an analysis of real-world software requirements documents using natural language processing techniques. We found that three quarters of the consultants had seen repetition in at least half of their projects. Additionally, we found that on average, a third of the requirement pairs' (comprised of a system and its related stakeholder requirement) fields were repeated such that one requirement in the pair added only trivial information. That is, solutions were described twice while their respective problems were not described, which ultimately lead to suboptimal decisions later in the development process, as well as reduced motivation to read the requirements set. Furthermore, the requirement fields considered to be secondary to the primary description field, such as the rationale or fit criterion fields, had considerably more repetition within UR---SysR pairs. Finally, given that the UR---SysR repetition phenomena received most of its discussion in the literature over a decade ago, it is interesting that the survey participants did not consider its occurrence to have declined since then. We provide recommendations on preventing the defect, and describe the freely available tool developed to automatically detect its occurrence and alleviate its consequences.

For many years, the concept of 'sustainable development' has been the subject of interest both in theory (variety of interpretations) and the broader social and economic life practice. It is also the subject of legislation - the principle of sustainable development is a constitutional norm in many countries. The focus is present in various international agreements and regulations of regional integration groups, such as the EU. Sustainability can be considered from various perspectives and approaches, including institutional. Institutions are becoming less of a condition than a factor in development processes. At the same time, institutions are characterised by relative permanence (mainly cultural elements and social norms) and variability at different times. Persistence is a problem of institutional equilibrium, while variability results from technical, technological and social conditions and development needs. This interweaving of endo and exogenous institutional factors underpins the institutional determinants of sustainable development characterised by a peculiar balance between environmental, economic and social values. It is also the increasing interconnection of local problems with global change. Dynamic economic changes result from many factors, including technological change - mainly digitisation and containerisation. Development dynamics require openness to new institutional arrangements. The institutional system contributes to the realisation of sustainable economic development mainly by improving the quality of institutions, a kind of approximation to the desired institutional pattern. This takes place at various levels of analysis, both on a global, regional, state scale and on the scale of a particular economic entity - mainly an enterprise. In doing so, the institutional matrix is supplemented by new institutions reconciling the requirements of efficient management with environmental goals and social inclusion processes.

Instruments aimed at sustainable economic development have become widespread in financial markets and are firmly embedded in economic transactions and the system of credit and financial regulation. Incorporating ESG principles into economic activity enables companies to be involved in solving environmental, social and managerial challenges as well as to promote these principles by means of instruments designed to attract and allocate resources that advance sustainable development. As stable financial instruments for these purposes are developed and absorbed into both micro and macro management of the economy, the practices that govern their registration, accounting and listing on exchanges are changing in turn. A parallel process of conceptualizing and reaching theoretical understanding of these new instruments for encouraging sustainable economic development is also underway. Systematic concepts applicable to sustainable financial instruments have been developed, and the role of these instruments in financing ESG transition and development of the financial market has been clarified. The article examines the evolution of sustainable financial instruments, identifies their essential features and role in investment decisions, analyzes the most significant ways they impact the economy and financial markets, and assesses how prepared the financial sector is for their development. Three research hypotheses are put forward. First, economic entities are successfully adapting to the new concept of sustainable financing. Second, the increased inherent complexity of the new instruments and effort needed to prepare them is partially offset by their standardization, as well as by a simplified scheme for their circulation, maintenance and supervision. And third, sustainable development instruments such as green bonds, social bonds, sustainable development bonds, sustainability-related bonds and transitional period bonds contribute to a reassessment of market efficiency and the rationality of market participants

Modern economic science does not yet have a holistic theory explaining how to solve the problem of sustainable development of socio-economic systems in the context of new technologies and digitalization of the economy. In the article, the author explores new forms of business organization—the business ecosystem from the point of view of the role they play in the modern economy, how they affect the activities of economic entities and the sustainable development of the economy. The aim of the article is to study the ecosystem as an economic phenomenon, as a component of the country’s socio-economic system, as a possible driver of sustainable economic development in the context of the digitalization of the economy. To achieve this goal, the following tasks are solved in the article: the phenomenon of the ecosystem in the economy is studied from the point of view of various scientific approaches; factors that impede and contribute to sustainable economic development are investigated; explores the role of digital technology in ensuring sustainable economic development. The study is based on the use of general scientific and specific research methods, such as: analysis, synthesis method, method of rational reconstruction of science, comparative analysis method, generalization method and others. The method of comparative analysis revealed differences in views on the essence of economic ecosystems of domestic and foreign scientists; the synthesis method allowed us to identify approaches to the study of economic ecosystems in modern economic science; the method of rational reconstruction of scientific knowledge made it possible to establish differences in relation to knowledge as a factor in economic development in economic studies of eastern and western economic thought; The generalization method has become the basis for the formulation of research results.KeywordsBusiness ecosystemsKnowledge economyEconomics digitalizationSocio-economic ecosystemsEconomic policy of the stateJEL CodesA10P10P16

In the current context of globalization, climate challenges, and growing attention to sustainable development issues, green finance is gaining increasing relevance as an effective tool for the environmentally oriented transformation of the economy. Ukraine, being in the process of European integration and reforming its national financial system, faces the necessity of implementing mechanisms that combine economic benefits with environmental responsibility. Therefore, exploring the role of green finance in ensuring sustainable economic development in Ukraine is both timely and of critical importance. The aim of this study is to determine the role of green finance in promoting sustainable economic development in Ukraine within the framework of European integration processes and to identify the challenges associated with adapting green finance instruments to European standards. The object of the study is the system of green finance as a component of the country's financial system and its interaction with institutional, regulatory, and economic factors of sustainable development. The methodological basis of the research is a combination of general scientific and specialized methods, including systems analysis, which allowed for the consideration of green finance as a holistic system of interconnected elements within the context of sustainability and European integration; comparative analysis, applied to examine the legal framework, existing practices, and instruments of green finance in Ukraine and the EU; and generalization, used to identify barriers to the adaptation of green finance tools to European standards. The study analyzes the current state of green finance in Ukraine, identifies key barriers and challenges hindering its development—such as an underdeveloped legal framework, limited access to financial resources, and low awareness among economic entities. At the same time, promising development directions have been identified, including the adaptation of European practices, the expansion of public-private partnerships, and the integration of ESG criteria into financial management processes. The practical value of the research lies in the formulation of recommendations for improving public policy in the field of green finance—specifically, stimulating environmental investments, developing tax and financial support instruments for sustainable projects, and increasing the transparency of environmental impact reporting by enterprises.

The non-profit sector plays a pivotal role in achieving the Kingdom’s Vision 2030, where it represents a potential economic opportunity for development. Therefore, the current study aimed to identify ways non-profit organizations (NPOs) can support sustainable economic development through community activities, leading to the achievement of the United Nations Sustainable Development Goals and Saudi Vision 2030. The Ensan Association in the Kingdom of Saudi Arabia was chosen as a case study due to its importance and influence in this sector. The study also aimed to identify the impact of Ensan Association’s social responsibility activities on sustainable economic development in the local community, focusing on two indicators: raising the standard of living of individuals and reducing unemployment rates in Saudi Arabia. The study relied on a mixed methodology to collect data using questionnaires and interviews. Correlation analysis results showed a strong relationship between social responsibility activities and achieving the economic goals of sustainable development, namely raising the standard of living and reducing unemployment. Simple regression results also showed that a one-unit increase in social responsibility activities leads to a significant improvement in these economic goals, which positively impacts sustainable economic development. Furthermore, the results of the multiple linear regression demonstrated strong statistical significance for the model, and the study confirmed the importance of NPOs’ social responsibility activities in supporting sustainable economic development. Based on the study’s findings, it recommends empowering NPOs by developing specialized training programs for the most vulnerable groups and diversifying their funding sources to ensure sustainability. It also encourages decision-makers to adopt supportive policies and legislation that strengthen partnerships and secure investment to achieve sustainable development. The non-profit sector plays a pivotal role in achieving the Kingdom’s Vision 2030, where it represents a potential economic opportunity for development. Therefore, the current study aimed to identify ways non-profit organizations (NPOs) can support sustainable economic development through community activities, leading to the achievement of the United Nations Sustainable Development Goals and Saudi Vision 2030. The Ensan Association in the Kingdom of Saudi Arabia was chosen as a case study due to its importance and influence in this sector. The study also aimed to identify the impact of Ensan Association’s social responsibility activities on sustainable economic development in the local community, focusing on two indicators: raising the standard of living of individuals and reducing unemployment rates in Saudi Arabia. The study relied on a mixed methodology to collect data using questionnaires and interviews. Correlation analysis results showed a strong relationship between social responsibility activities and achieving the economic goals of sustainable development, namely raising the standard of living and reducing unemployment. Simple regression results also showed that a one-unit increase in social responsibility activities leads to a significant improvement in these economic goals, which positively impacts sustainable economic development. Furthermore, the results of the multiple linear regression demonstrated strong statistical significance for the model, and the study confirmed the importance of NPOs’ social responsibility activities in supporting sustainable economic development. Based on the study’s findings, it recommends empowering NPOs by developing specialized training programs for the most vulnerable groups and diversifying their funding sources to ensure sustainability. It also encourages decision-makers to adopt supportive policies and legislation that strengthen partnerships and secure investment to achieve sustainable development.

The article discusses a new, genetic approach to problems of sustainable regional economic development. The article describes the methodological aspects of this approach and shows how it can be applied for meso-economic studies and search for solutions to sustainable development problems. Social defense mechanisms provide social cohesion and enable the society to resist internal and external economic shocks. The hypothesis tested in the article is that the social immunity of a territory (or the territory’s defense mechanisms) affects its sustainable economic development. To test this hypothesis, we developed a methodological framework for evaluating the social immunity of a territory. This methodology was then applied to the case of the Ural Federal District, more specifically, Sverdlovsk, Chelyabinsk and Tyumen regions in the period between 2010 and 2018. It was shown that the proposed methodology can be applied to model the core of social immunity of any region by using the Frobenius norms, reflecting positive and negative social transformations. The hypothesis was thus confirmed and the conclusion was made that the lack of social immunity in a territory results in its increased vulnerability to external shocks, both random and regular, and in economic entities’ diminished ability to benefit from the economic effects.

The United Nations sustainable development goals aim to promote global industrialization and innovation and achieve sustainable and inclusive economic development by 2030. The sustainable growth of provincial economies has emerged as a critical component of the national plan as China’s economy transitions to a new normal. This article builds an assessment index system encompassing the four "economy–society–ecology–innovation" dimensions to better assess the degree of sustainable economic development in China’s regions. It then uses the gray correlation analysis method to measure and analyze the sustainable economic development of China’s regions from 2006 to 2017. Additionally, the spatial evolution characteristics of each region’s sustainable economic development and spatial pattern are investigated through exploratory spatial data analysis and GIS spatial analysis techniques. This essay seeks to support the region’s economy in achieving sustainable development by offering theoretical underpinnings and useful advice for the creation of successful regional development plans. The study’s findings indicate that in 2017, the assessed value of the level of economic sustainability of China’s regions averaged 0.7156, an increase of 7.3% compared to 2006 while the degree of sustainable economic development in the rest of China, except Inner Mongolia, Shaanxi, and Xinjiang, has steadily increased between 2006 and 2017, the gap between the regions has also widened, with the eastern region having a much higher level of sustainable economic development than the central and western regions. An analysis of the spatial evolution reveals that the degree of sustainable economic development in every region of China generally increases in positive spatial correlation. Its spatial agglomeration is becoming increasingly apparent, with more regions becoming high-high-type and low-low-type agglomerations. Regional wealth disparities, ecological governance capabilities, and technological innovation levels were identified at the local level as essential factors for provincial economic sustainable development, with varying impacts across different regions.

The traditional assessment of efficiency ofoperations and of development projects of transportsystems is based on a mercantilist approach thatconsiders efficiency of activities according to the«cost–income–profit of economic entities» pattern.In this case, non-systemic, external results areusually not considered, while they can be many timeshigher in value terms than the internal resultsobtained by economic entities. External results areoften seen outside the realm of purely economicrelations. This is especially evident in theinfrastructure sector, the material basis of which isformed by transport and logistics. To some extent acrisis of economic doctrine has arisen. An ecologicalcrisis is being observed due to unrestrainedanthropogenic activity. The concentration of peopleand production activities in cities has become thecause of the urbanization crisis. Growing inequalityhas led to an exacerbation of social contradictions.As a result, mankind has faced a complex crisis ofcivilization. Sustainable development was recognizedas the main means of resolving the crisis. Sustainabletransport dev elopement-being primarily aninfrastructure field of activity, serves as thefoundation for building sustainable development ofthe economy and social sphere. The sustainabledevelopment goals set by the world communityunder the auspices of the UN can only be achievedthrough the comprehensive assessment ofeffectiveness of management decisions (cumulativeaccounting of all internalities and externalities).Transport has become a pioneer in sustainabledevelopment of territories and cities. The approachto a comprehensive assessment of effectiveness ofsustainable development determines the reform ofeconomic and fiscal relations in the future accordingto the principle of the Pigou tax.The objective of this article is to explore ways toimprove assessment of effectiveness andmethodology of sustainable development oftransport organizations and transport systems. Thearticle substantiates the relevance and directions ofimproving the methodology for a comprehensiveassessment of the results of transport activities andpresents analytical models for a comprehensiveassessment of its effectiveness. The promising tasksfor continuation of research and development areassociated with justification and legal legitimation ofthe use of cost estimates of various external resultsof improving transport, as well as with developmentof a system for monitoring of information necessaryfor a comprehensive assessment of sustainabletransport development.