Key Aspects of the Control Environment in the Context of Sustainable Development of Organisation

Abstract

The integration of sustainable development into business, which is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs, is one of the key trends of the beginning of the 21st century. The purpose of this study is to consider the effect of this concept on the element of internal control system: the control environment. The relevance of the work is confirmed by the correlation between the internal control system and the efficiency and effectiveness of the activities of organizations, as well as the increasing influence of social and environmental factors on managerial decisions of economic entities. In the process of scientific elaboration of the problem, general scientific research methods were used: comparative analysis, detailing and generalization, systematization. As a result, the author examined the main elements of the control environment: organizational structure, functions and duties of departments and employees; strategy, principles and goals of the organization, regulations for the implementation of operations; corporate culture, philosophy and management style, ethical values and rules of conduct; personnel policy — and the recommendations for their improvement from the sustainable development aspect. It is concluded that the introduction of the proposed innovations into the control environment will serve as the foundation for the remaining components of the internal control system.