The Social and Environmental Management Model for Sustainable Market Economy

Abstract

The paper assesses the level of social and environmental orientation of the Russian economy. The purpose of the study is to develop a model of socio-environmental management in a market economy to achieve its sustainability (both at the state level and business levels). The research methodology includes theoretical modeling that involves the development of an algorithm of actions for the state and the commercial, economic sectors. The core of the author’s model is macro measures on increasing tax collection and promoting social and environmental management for economic entities. State tools to stimulate social and environmental investments of business entities include the use of tax, social, and environmental ratings of enterprises and private entrepreneurs for advertising, providing benefits, etc. The state can spend an inflow of funds from increasing tax collection on social and environmental needs. For economic entities, the concept of social and environmental management includes the production of environmentally friendly products (services) and environmental and social investments with a minimum fiscal burden. The novelty of the made proposals is due to a comprehensive approach to solving the problem of expanding social and environmental investments from both the state and commercial entities. The authors proposed specific indicators for the formation of tax, social, and environmental ratings of business entities.