Sustainable Business Activities Research Articles

MANDATORY SUSTAINABILITY REPORTING – EVOLUTION OF REGULATION IN THE EUROPEAN UNION

In times of climate changes, social inequality and resource scarcity, responsible corporate governance is essential for sustainable global economic development. The importance of sustainability reporting lies in the fact that companies present their ecological, social, and economic impacts transparently to stakeholders and take responsibility for their actions. Through such reports, companies can show how they integrate sustainability aspects into their business strategy, implement them in their business activities and what progress they are making. Until the 2008 financial crisis, corporate sustainability reporting in the EU was based on voluntary reporting, but this was replaced by mandatory sustainability reporting because of the lessons learned from the financial crisis. The reasons for this included the fact that the voluntary principle of sustainability reporting only provided the hoped-for impetus for corporate management geared towards sustainability aspects to a limited extent and that the EU's political will to transform the economy and society into a sustainable one is intended to channel capital flows into sustainable companies and business activities by means of increased transparency. The aim of this paper is to show the current development of the EU Regulation on the road to mandatory sustainability reporting.

Governance of social attributes behind ESG concepts in business entities: an empirical evidence based on the benchmarking approach

This study examines the integration of social attributes in business entities through an empirical benchmarking approach, emphasizing the impact of labor force management on the competitiveness and sustainability of business activities. The paper discusses the economic implications of human resources management in meeting both qualitative and quantitative workforce requirements, highlighting the necessity of aligning labor costs with broader economic and social sustainability objectives. Additionally, the study explores the regulatory and voluntary frameworks influencing corporate disclosures on social and environmental impacts, particularly within the European context under the new Corporate Sustainability Reporting Directive (CSRD).

Determinants of business performance of listed information technology companies in Vietnam

The information technology (IT) industry is rapidly growing and playing a significant role in modern society, impacting almost every aspect of life. The operations of IT businesses have been increasing and developing rapidly in recent years. For a business to achieve sustainable development, its production and business activities must be as efficient as possible. This paper aims to determine the impact of various factors on business performance based on data collected from the financial reports of 14 listed IT companies on the Vietnamese stock market from 2019 to 2023. The paper employs a regression model using Stata17 software, and the results show that two factors, Capital structure and Age of the company, have a significant impact on business performance; while two other factors, Fixed asset investment and Liquidity, have no significant impact on business performance. Based on the research findings, the authors provide several recommendations to help IT companies improve their business performance.

Greening the Bottom Line: How Do Banking Sectors Implement Technology to Support Sustainable Development Goals in Innovation?

The urgent need to align banking practices with the Sustainable Development Goals (SDGs) has become increasingly apparent, particularly in the context of fostering industry, innovation, and infrastructure. The primary issue at hand is the insufficient integration of SDG 9 into banks’ core strategies and operations, despite its critical importance for sustainable development. The novelty of this study lies in its detailed examination of the extent to which Indonesian banks support SDG 9 through their reported activities, an area that has been underexplored in previous research. This research aimed to investigate the level of support from banking industries to the Sustainable Development Goals (SDGs), with a particular focus on SDG 9: industry, innovation, and infrastructure. This study utilized a content analysis approach to collect secondary data from the sustainability reports of 44 banks listed on the Indonesia Stock Exchange between 2017 and 2020, resulting in 176 observations. In cases where sustainability reports were unavailable, annual and combined reports were used as unit analyses. The findings revealed that Indonesian banks have undertaken various activities to support SDGs, and there has been an increasing trend in disclosure from 2017 to 2020. However, the study found that a significant role of technology transformation, which should lead to innovation and support for SDG 9, was lacking. This finding suggests that SDGs are still primarily measured by external activities rather than internal activities, despite the importance of business strategy in supporting SDGs. Another significant finding was that micro, small, and medium enterprises (MSMEs) received the most support for sustainable business activity categories (SBAC). The research contributes to the literature by providing insights into the level of support for SDG 9 and SBACs. The study also underscores the importance of measuring the impact of digital banking services, which have been widely implemented, and the need for significant support for SBAs in the environmental sector.

Планирование экономического присутствия России в Арктике

Global warming is the most important trend shaping the development of the Arctic, influencing international relations and economic landscapes under new geopolitical conditions. Currently, the Arctic is opening up for the development of natural resources, primarily energy, and the construction of new transportation networks. These developments form the basis for the Arctic's integration within Russia's maritime framework. The evolving geopolitical positioning of the Arctic underscores the importance of diverse scientific research, guiding its goals and directions. Russia’s economic presence in the Arctic is a key component of strategic planning for the periods 2024–2030 and until 2035. This presence is directly influenced by the dynamics of Arctic ice formation and melting, as well as the achievement of development milestones for the Northern Sea Route (NSR). This article addresses a practical question: to what extent is global warming a permanent factor in enabling year-round navigation along the NSR to support sustainable maritime business activities in the region? The 2022 Maritime Doctrine positions Russia as a leading maritime power, with the Arctic playing a central role in national maritime activities, as this is the region where the country's maritime strengths are most clearly visible. The effectiveness of maritime business activities in the Arctic is reflected in the increasing cargo turnover along the NSR, driven by domestic investments, primarily in energy projects. These activities are shaped by the cyclical fluctuations in Arctic ice formation and melting, defining navigation along the NSR in the current geopolitical and economic context.

Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Banks have enormous potential to support the achievement of sustainable development goals (SDGs) in accordance with their function as financial intermediaries through sustainable lending. However, the average national financing growth for the sustainable business activity category over the past four years is still 12%. The aim of this research is to identify the conditions of sustainable lending at state-owned conventional banks and analyze the influence of the value chain, economic performance, and ESG performance on sustainable lending. The research was conducted at state-owned commercial banks in Indonesia. The research utilized structural equation modeling (SEM). The SEM results of this study describe value chain, ESG performance (environmental, social, and governance), and economic performance and have direct and positive influences on sustainable lending, of which ESG performance has the biggest influence. As per each individual aspect, social orientation makes the biggest contribution toward sustainable lending.

Evaluation of sustainable finance implementation in emerging markets

This paper provides a comprehensive review of the initiative and commitment of an emerging market, Indonesia, in implementing sustainable finance to achieve a low-carbon economy and sustainable development goals (SDGs). It explores trajectories, challenges, and opportunities of sustainable finance as well as recommendations for related stakeholders for the development of sustainable finance in Indonesia. Many believed that implementation of sustainable finance, which considered multiple aspects of economic, social, and environmental risks and returns, would enable finance companies to maximize their role as a catalyst for the creation of environmentally friendly investment and a fair economic social system to achieve sustainable development goals (SDGs) more effectively. Specifically, green finance implementation as an important element of sustainable finance would create acceleration in financing for environmental preservation and climate change adaptation. Data used for evaluation is derived from selected ten financial services companies’ members of the Indonesia Sustainable Finance Initiative (ISFI) in the 2019–2022 period. It shows that despite the continuous growth in the amount of loan allocated to sustainable and green business activities, considering their loan capacity, the Indonesian financial services sector has done too little in sustainable finance, which in fact is dominated by microfinance, and very little in green finance. Regulators urgently need to formulate proper policies and incentives as well as to develop a favourable ecosystem together with related stakeholders to expedite the establishment of a well-developed and sophisticated sustainable and green finance system in Indonesia.

Pembinaan Potensi Wirausaha Dalam Pengelolaan Usaha Angringan

Service activities are carried out based on the obstacles faced by a business actor, which reflects the inconsistency of business activities that have an impact on services that can be categorized as not good. This business activity has indications of poor management, and this is an essential need for business activities which cannot be separated from the importance of understanding financial management. To be precise, in this activity, business income or results that did not meet expectations were found. Through this activity, it is known that there are obstacles in financial management that affect workers' service to consumers and even the calculation of funding turnover or financing for the business. The aim and urgency of this service are to provide an understanding of the importance of commitment to financial recording so that it can become a benchmark and provide information on activities. Business the information in question is information that contains sustainable business activities. The stages of service implementation activities are divided into direct (face-to-face) and indirect (programmed arrival) implementation. The results of developing this simple recording concept are expected to provide new work patterns and new thinking for workers and business owners so that they can plan development activities that can be pursued.

METHODOLOGY FOR GRANTING GREEN BUSINESS CREDITS

In the face of negative changes in climate change and the natural environment, the financial system is obliged to change its financial mechanisms as efficiently as possible to help the economy transform according to the green rate concept. The taxonomy published by the EU (2021) is an economic classifier, with the help of which businesses can transform their processes and banks can select green projects. Sustainability and the fight against climate change is one of the strategic directions of the Bank of Lithuania, so in order to achieve better results, it would be appropriate to combine state and business investments. And although the sustainability of business activities is becoming a priority, commercial banks providing loans do not yet have clear criteria or a unified evaluation system for distinguishing environmentally friendly business. In Lithuania, the banking sector is guided by ESG principles, the EU taxonomy regulation, and other autonomously created criteria that allow to decide whether to promote one or another business that could potentially create not only financial, but also additional, sustainable ecological returns. According to the principles of UN Responsible Banking, there are already actively committed banks that contribute to the UN Sustainable Development Goals and the Paris Agreement for integrated sustainability as a natural element necessary in the long term. The article analyzes the current topic of the green exchange rate in the banking sector, uses the systematization and comparative analysis of scientific literature. The concept of green finance is discussed; changes in bank activities and a new look at creditable businesses according to the green rate standard and the transformation of banks through the criteria of their activities.

The Effect of Sustainability Financial Disclosure, Sustainability Governance and Financing In The Sustainable Business Activities Category On The Share Price of Banks Listed On The Indonesia Stock Exchange

This research aims to determine the influence of sustainable financial disclosure, sustainable governance and financing in the category of sustainable business activities on banking share prices listed on the Indonesia Stock Exchange. Based on data processing from 40 banks listed on the Indonesia Stock Exchange, the results showed that sustainable financial disclosure using the GRI FS indicator had a significant positive effect on the share prices of banks listed on the Indonesia Stock Exchange. Meanwhile, sustainability governance does not have a significant effect on the price of banking shares listed on the Indonesia Stock Exchange, and environmental costs do not have a significant effect on the price of banking shares listed on the Indonesia Stock Exchange

Systematic Literature Review (SLR) on the Roles of Accountants and Challenges Towards Sustainability Accounting and Reporting

Background and Purpose: Sustainability accounting and reporting (SAR) has undergone significant changes in businesses and organisations activities. These changes include the traditional role of accountants as they strive to adapt to this evolving process. Current responsibilities of accountants who process and report financial data now encompass providing data for reporting non-financial information on environmental, social, and economic activities. Sustainability accounting and reporting collectively describe an organisation’s sustainability performance (economic, environmental, and social performance). Although sustainability accounting and sustainability reporting are two distinct terms, both are accountability tools for sustainable production and business activities. Organisations now furnish comprehensive reports including social, environmental, and economic activities and how these activities affect business financial objectives simultaneously and integrated to their stakeholders. It is clear that the accounting profession and accountants have a key role in the core of active business for achieving sustainability accounting and reporting in organisations. Therefore, this paper aims to review the roles of accountants towards SAR using a systematic literature review (SLR) method. This paper also reviews the challenges faced by implementing the SAR among accountants. A systematic review of Scopus and Non Scopus databases identified 35 related studies. Methodology: This paper employs a literature review paper through a systematic review that specifically adheres to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). The focus is on practical insights derived from empirical research to provide a comprehensive summary of these empirical findings’ cumulative effects or outcomes. The methodology encompasses clear inclusion and exclusion criteria for the meticulous selection of articles to be included in the final review. Findings: In this paper, 35 articles published in well-known Scopus and Non-Scopus journals for the year 2014 to 2023 were included. Most of the literature provides various roles of accountants that can be played in the implementation of SAR. The role of accountants advisors is the highest among accountants. Additionally, there are various categories of challenges directed at accountants regarding their involvement in SAR. Contributions: This study can serve as a guide for researchers in applying the PRISMA approach. Furthermore, it contributes to the challenges of accountants towards SAR by offering a comprehensive review of recent related publications. It will help organisations to improve a better understanding of accountants’ involvement in SAR practices.

Теоретичне дослідження небезпек, загроз та ризиків в економічній безпеці підприємства

This article provides a theoretical study and generalization of the definition of the essence of danger, threat and risk in the economic security of an enterprise. The presence of danger creates a system of organizational and economic actions to protect the enterprise from the onset of risk. Schematically, the interdependence of these categories is shown which correlate with each other. At the same time, the systematization method was used to identify deterministic features and the grouping method to clarify conceptual approaches. The aim of the work is to clarify the categorical apparatus of hazards threats and risks in the context of economic security of enterprises for the successful operation of business entities in modern conditions. In the course of the theoretical study, it was possible to systematize the determining signs of danger from the point of view of the possibility of causing harm, violation of the state of balance and ignoring. The analysis revealed the existence of a process of forming terminology, strengthening the scientific justification of the definitions of the definitions "danger", "threat" and "risk". Definitions force business entities to strengthen their protection and, accordingly become competitive in the market. In case of negative events top managers gain experience and this can be considered a starting point on the way to creating sustainable business activities since the identification of obstacles that stand in the way of sustainability of the enterprise must be constantly resolved. The ability of a business entity to recover from devastating events and adapt to changes is increasingly becoming a priority especially given that most of them face disruptions in the last period of time starting with the emergence of obstacles to the COVID-19 pandemic and the war in Ukraine.

Accounting for ‘ESG’ under Disruptions: A Systematic Literature Network Analysis

Corporations and small/medium enterprises (SMEs) are subject to a variety of external and internal pressures that often lead to changes in their corporate governance structures and accounting/reporting systems. The environment in which these organizations are collocated has undergone a deep process of change, due to the COVID-19 pandemic, climate change, the blockchain, and the energy industry crisis. Business activities represent a critical and a vital component of human existence across the globe—one that is not restricted to a financial standpoint—and their impact on societal, environmental and animal conditions is now undisputed. However, these activities are frequently coupled with allegations of their being the actual causes of those disruptions and collapses that persist in escaping the scrutiny of international governments. For the effective delivery of sustainable business activities, the concepts of governance and accountability are crucial, and the future of the inhabitants of planet Earth is arguably dependent on the ability of corporations (through their entire value chain) to govern themselves well and to demonstrate accountability to their many stakeholders. This should be achieved through the adoption of good governance standards which are well accepted, and that are globally harmonised with ‘Environmental, Social and Governance’ (ESG) reporting tools that are able to strategically assess and evaluate risk exposure and provide forward-looking information. In this critical context, few studies have actually examined these issues thoroughly, and, because the findings of those studies have been contradictory, there is still no definitive understanding of the causes of weak accounting and reporting tools for ESG dynamics under conditions of disruption. A systematic literature network analysis (SLNA) is used in this study to examine the evolution of the ESG reporting research domain based on existing relationships (e.g., aggregation, cross-citations and isolation) among authors contributing to the field. The findings demonstrate the current state of the art, disclosing interesting and timely future research directions. Furthermore, this study employs a novel approach known as SLNA to conduct the analyses, confirming its efficacy as a tool for dynamic analysis also within the field of sustainability accounting research.

Exploring the relationship between sustainable entrepreneurship and the United Nations sustainable development goals: A comprehensive literature review

AbstractThis research study aims to investigate the relationship between entrepreneurship and sustainable development, as well as explore how entrepreneurship can contribute to addressing the challenges associated with sustainable development. The significance of this topic lies in the fact that sustainable development is crucial for the long‐term well‐being of societies and the planet, and entrepreneurship has the potential to play a vital role in achieving sustainable development goals. Through a systematic literature review, this study evaluates how sustainable business activities can help achieve Sustainable Development Goal 8 (SDG 8‐Decent Work and Economic Growth). The study employs the Scopus indexing online database and VOSviewer, a data mining tool, to identify scholarly literature related to sustainable entrepreneurship and SDG‐8 published between 2015 and 2022. The bibliometric study indicates a significant growth in the scientific literature on this topic in recent years. The study identifies five research subjects, including current trends in the literature on SDGs, economic development, socioeconomic growth, durability, higher education, and other related topics. By conducting a thorough inquiry into the literature, this study aims to contribute to the understanding of the relationship between entrepreneurship and sustainable development, and provide insights into how entrepreneurship can be leveraged to achieve sustainable development goals. Ultimately, this research has important implications for policymakers, businesses, and individuals interested in promoting sustainable development and creating a more equitable and prosperous world.

The impact of debt diversification on the performance of SMEs in Vietnam

This article aims at evaluating the impact of debt diversification on the performance of SMEs in Vietnam. The COVID-19 pandemic has severely affected the operation results of SMEs which are looking for solutions to be able to maintain sustainable production and business activities as soon as the pandemic is under control. One of the most sought-after urgent working solutions today that SMEs are resorting to is funding from loans in various forms to avoid short-term liquidity risks. Using estimation from panel data, empirical results show that multiple lenders measured by the number of debt sources and the dispersion of debt has a negative impact on the performance of SMEs. The results imply that increase of agency costs resulting from inferior monitoring may decrease the performance of firms. Our findings contribute to the sparse literature on debt diversification of SMEs in a developing country like Vietnam.

Impact of personnel policy on human resources management: Empirical evidence from Vietnamese enterprises

Human resources have an essential meaning in stability and sustainability of business activities. The quality of human resources contributes to increasing intelligence and thinking, as well as productivity and efficiency in all activities of an enterprise. The study aims to determine the influence of different factors on Vietnamese enterprises’ human resources management, including staffing plans, personnel selection, employee use, resource training, employee rating, and bonus policies. Exploratory factor analysis is employed to test the factors related to the research model. The sample comprises 417 leaders working at Vietnamese enterprises surveyed in 2021. The paper uses panel data to test the regression using OLS method. The selected enterprises are diverse in industry and size to ensure representativeness and are based in Ho Chi Minh City. The results elicit that staffing plans and bonus policies are two of the six factors that positively affect the human resources management of Vietnamese enterprises. The findings also show that staffing plans are the factor that has the most substantial impact on human resources management. Finally, the paper has proposed some policy suggestions to stabilize human resources management at Vietnamese enterprises to attract quality talent.

Formalization beyond legalization: ENAMI and the promotion of small-scale mining in Chile

This article explains how ENAMI, the Chilean National Mining Company (ENAMI), has legalized and formalized artisanal and small-scale mining (ASM). The experience reveals how promoting formalization strategies that provide much broader support for ASM, beyond mining licenses and tenure rights (i.e., legalization), defined as formalization (e.g., geological data, mining equipment, and skills transfer programs), is vital. Information gathered from secondary sources and semi-structured interviews reveals that while legalization of ASM has been largely successful in Chile, there are still challenges in terms of formalization, especially improvement of exploration and production. Furthermore, ENAMI needs to modernize its own installations and development model to afford ASM greater opportunities of becoming a sustainable and competitive business activity.

Integration of Using Fintech and Social Media for The Business Sustainability in Pesantren

<p>The urgency in utilizing fintech and social media in business to realize the Halal Value Chain (HVC) is paramount because it can provide added economic value for halal business actors, including Islamic boarding schools in the era of Society 5.0. This study aims to analyze the optimization of financial technology and social media integration in halal businesses managed by Islamic boarding schools to achieve the SDGs in the 5.0 era. This study uses phenomenology with data sources from Islamic boarding schools in Central Sulawesi. This research reveals that the integration relationship between fintech and social media highly depends on optimizing both. Factors driving the use of fintech and social media in Islamic boarding schools business consist of internal factors in the form of pesantren awareness of the importance of sustainable business activities and the vision of independence that exists in Islamic boarding schools. Furthermore, internal driving factors include the Covid-19 pandemic, market growth, digital market behavior, market growth, digital access, and customer behavior. Optimizing the use of social media in market mapping to see market demand trends has implications for Islamic boarding school business strategies in developing products.</p>

Blockchain for sustainable supply chain management: trends and ways forward

Blockchain operates on a highly secured framework, and its decentralized consensus has benefits for supply chain sustainability. Scholars have recognized the growing importance of sustainability in supply chains and studied the potential of blockchain for sustainable supply chain management. However, no study has taken stock of high-quality research in this area. To address this gap, this paper aims to provide a state-of-the-art overview of high-quality research on blockchain for sustainable supply chain management. To do so, this paper conducts a systematic literature review using a bibliometric analysis of 146 high-quality articles on blockchain for sustainable supply chain management that have been published in journals ranked “A*”, “A”, and “B” by the Australian Business Deans Council and retrieved from the Scopus database. In doing so, this paper unpacks the most prominent journals, authors, institutions, and countries that have contributed to three major themes in the field, namely blockchain for sustainable business activities, decision support systems using blockchain, and blockchain for intelligent transportation system. This paper also reveals the use of blockchain for sustainable supply chain management across four major sectors, namely food, healthcare, manufacturing, and infrastructure, and concludes with suggestions for future research in each sector.

How to Develop Social Equity for Consumers? A Technology-Based Framework

In the business sector of Pakistan, social equity is still an unaddressed and conflicting issue. The objective of this study is to highlight the factors playing a key role in maintaining social equity and to develop a sense of satisfaction among consumers of Pakistani market segments to provide them with a way to best business practices and importantly, for emerging businesses. This study was conducted with the help of a questionnaire, and the responses were collected from 700 respondents. The hypotheses were developed with careful evaluation of existing literature, and data was collected from diverse respondents in the Pakistani business and market sectors. This study concludes that to develop social equity for a community, the role of digitalization, a sense of security, and information communication technology are important. The significance of this study is to develop sustainable business activities and ensure the concept of social equity in the Pakistani environment by addressing the theoretical gap and providing recommendations based on responses taken from the diverse consumers.