Abstract
The article explores current theoretical and practical approaches to expanded implementation of the principles of sustainable development paradigm within corporations. The essence of Sustainable Corporation and Sustainability as a factor of formation of the long-term corporation value is determined; the relationships between corporate social and financial performance are described; the existing methods for developing sustainability key performance indicators are discussed. The authors present a structural-logical scheme and algorithm of assessment of sustainable value added using indirect method. The scheme characterizes the distribution of the value among internal and external, financial and non-financial stakeholders.
Highlights
The world has changed, and the slogan “Be Sustainable” is becoming a trend in shaping the development strategies of modern corporations
Longstanding scientific research prove that comprehensive implementation of the principles and goals of sustainable development contributes to creation of long-term corporation value, it creates a financial basis for achieving the main goal for shareholders and benefits for a wide range of other stakeholders
In contrast to the mentioned approaches, we propose to integrate three components of sustainable development into the structural-logical scheme for both creation and distribution of value and featuring the distribution function of corporate finance – the distribution of Sustainable Value Added providing for the interests of all stakeholders (Fig. 2)
Summary
The world has changed, and the slogan “Be Sustainable” is becoming a trend in shaping the development strategies of modern corporations. Longstanding scientific research prove that comprehensive implementation of the principles and goals of sustainable development contributes to creation of long-term corporation value, it creates a financial basis for achieving the main goal for shareholders and benefits for a wide range of other stakeholders. The CEO and the Board of Directors of the vast majority of corporations believe that in these circumstances it is necessary to integrate the results of corporate social and environmental activities into the corporation value (Olsen, 2009; BSR report, 2018). In the pursuance of management goals, the Sustainable Value Added is to be determined as a strategic target performance indicator allowing to integrate the environmental, economic, and social performance of corporations into a single index of the company’s value. Scientific research is underway to develop indicators for measuring the performance of corporations in the social and environmental spheres and convert them into. The article is aimed to present a structural-logical scheme and the algorithm for assessment of Sustainable Value Added that characterizes the distribution of value among stakeholders using indirect method
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