Sustainable Development Of Economic Systems Research Articles

Revealing the contribution of corporate sustainability practices to financial performance: Case of BIST Sustainability 25 Index companies

The purpose of the paper is to study the impact of corporate sustainability practices on the financial performance of companies included in the BIST Sustainability 25 Index. To assess the efficiency and quality of corporate sustainability, general (ESG Disclosure Index) and partial (Environmental Disclosure Index, Social Disclosure Index, and Corporate Governance Disclosure Index) indices were used, calculated based on content analysis of sustainability reports. Based on the two given types of indices and four types of financial performance indicators (return on assets, return on equity, assets turnover ratio, and Tobin’s Q), two types of regression models (GEN models and PART models) were built, and eight analytical models were examined. Company size and leverage were included as control variables in each model. The regression analysis results were contradictory, partially confirming the conclusions of some scientists and refuting the findings of others. A study of GEN models revealed that companies implementing more effective general corporate sustainability practices have a significant positive impact only on return on equity; as for other measures (return on assets, assets turnover ratio, and Tobin’s Q), an insignificant relationship between them and ESG Disclosure Index was found. Results of the PART models analysis revealed a significant positive effect of the Social Disclosure Index on return on equity and assets turnover ratio and a negative relationship between the Corporate Governance Disclosure Index and assets turnover ratio. Using control variables for the two types of models showed a significant negative effect of company size on Tobin’s Q. AcknowledgmentThis study was supported by the Ministry of Education and Culture of Ukraine within the project “Development of a mechanism for the sustainable development of economic systems in the conditions of military operations and post-war recovery of the economy” (Registration number of the project: 0124U000463).

Ensuring sustainable development by prioritizing national economic interests

Aim. To develop recommendations on the formation of a national model of sustainable development of the Russian economy based on the identification of its key vectors, components in the conditions of external and internal shocks and changes caused by the transformation of strategic guidelines for sustainable development.Objectives. To analyze the peculiarities of the implementation of the global concept of sustainable development of the United Nations (UN) under the influence of deglobalization processes; to substantiate the need to transform the established foundations of sustainable development of economic systems in order to ensure the national economic interests of Russia; to propose the author’s approach to the formation of the structure and content of the national model of sustainable development of economic systems; to build a scheme of interaction between different levels of the economic system, ensuring the development of the national model of sustainable development of economic systems.Methods. In the course of the research we applied general scientific methods and techniques: analysis and synthesis, generalization of practical experience, expert assessments, comparison, abstraction and concretization, monitoring, modeling.Results. Based on the analysis of modern processes of deglobalization, the necessity of changing the structure and content of the concept of sustainable development of the Russian economy in the conditions of external shocks caused by the transformation of the global agenda of sustainable development was substantiated. The author’s approach to the formation of the structure and content of the national model of sustainable development of economic systems is proposed, which supplements the current triad of sustainable development (economy, ecology and social sphere) with innovation and institutional components and is scalable to the meso(regions) and micro-level (enterprises). The structure of the model sets socio-economic security, innovation security and the quality of the institutional environment in the conditions of external and internal shocks as controllable parameters, focusing on the creation of conditions for convergent convergence of meso-level systems. The scheme of organization of interaction between macro-, mesoand microlevels of the economic system is constructed, in which at the macrolevel the foundations of sustainable development of the country’s economy on the basis of national interests are set, management and control of mechanisms of sustainable development of economic systems of other levels are organized, and at the mesolevel the multiplier effect is provided for in the implementation of economic mechanisms of interaction of all elements of the regional ecosystem; the key task of the microlevel is the implementation of effective management of the regional ecosystem.Conclusions. Sustainable development of the Russian economy in the current conditions of global challenges is a complex task, the solution of which requires a systemic and holistic approach based on the prioritization of national economic interests. The proposed model, which determines the general guidelines at the macro level, suggests the organization of interaction of all three levels of the economy (macro-, mesoand micro-) with the provision of multiplier effect at the meso level, which requires the elaboration of adaptation mechanisms to the conditions of regional ecosystems and the specifics of business entities, suggests the continuation of the study.

Targeting in management of sustainable innovative development for industrial enterprises

The problem of reindustrialisation of the country and its transition to the sixth technological mode is of particular relevance for the Russian economy at present. At the same time, for the effective management of reindustrialisation, it is necessary, first of all, to develop a system of target setting for sustainable innovative development of industrial enterprises and production sectors. The aim of the paper is to consider and use a new methodological approach to the formation of such a system of target indicators. It is shown that there is no direct possibility of using for this purpose the theory of endogenous economic growth, the theory of long waves and the concept of technological patterns, the theory of sustainable development of economic systems. The paper presents ways and means of solving three problems arising in the process of effective management of sustainable innovation development of industrial production at the level of industries and enterprises: taking into account the impact on the activation of innovation activity of incoming open “tangible” innovations (patents, licences, software products) and closed innovations in the form of R&D costs; identifying the predominant impact on the resource efficiency of enterprises and industries of certain types of technological innovation-process and product innovations; determining for each type of technological innovation (process and product innovations); determining the impact of the innovation activity of incoming enterprises and industries on the resource efficiency of enterprises and industries.

The current state and the mechanism of the transformation of the EsG agenda by Russian companies. Part 1

Purpose: is to develop the mechanism of the ESG transformation of Russian companies based on a critical assessment of the evolution and modern implementation of the ESG agenda in Russia.The first part of the work presents the solution of the following research tasks: to identify the key drivers for the formation of the ESG agenda in Russia and present an assessment of its implementation by Russian companies.Methods: the study is based on the application of a set of the methods, including: theoretical analysis applied to the study and systematization of scientific publications; empirical analysis and statistical method required for quantitative and qualitative analysis of ESG characteristics; the retrospective method for determining the evolution of the ESG agenda and its trends.Results: conceptual approaches to the interpretation of the phenomena of ESG and sustainable development, which have a common generic basis with corporate social responsibility, are outlined. The growing interest of Russian business in the ESG agenda has been identified and substantiated, and the drivers for its development have been identified. The experience and motives for the implementation of the ESG agenda are analyzed, the factors influencing the level of maturity of the ESG practices of Russian companies are identified.Conclusions and Relevance: the relevance of the ESG agenda in Russia is determined by its association with the values of the country's socio-economic development, regardless of the unprecedented geo-economic confrontation and the threats to sustainable development generated by it. Drivers for the implementation of the ESG agenda are regulators and authorities, shareholders and investors, the board of directors and top management of companies; the influence of civil society is insignificant. The motives for implementing ESG requirements in business processes are related to strengthening the brand and increasing business reputation. The level of maturity of ESG practices depends on the company's industry affiliation, business size, investment needs: the best ESG practices are demonstrated by the mining and metallurgical industries, the largest business and companies with high investment needs. A deep awareness of the need for ESG transformation by stakeholders seeking to achieve social and environmental well-being, stability of economic development becomes a trigger for the sustainable development of economic systems.

Features of the security deposit and its impact on sustainable development of economic systems

The demand for sustainable insurance activities is growing. What could this mean for the future of the insurance business ? This is at the heart of the idea of insurance, and it is necessary to innovate with new products, such as sustainable deposits, which help direct funds to where it is most important for sustainable development. Currently, in the world, the growth rate of leasing different types of vehicles is increasing, For this purpose, the owners of vehicles leasing them need to reduce financial and operational risks. In reducing the risk of leasing vehicles, opening a security deposit for the period of vehicle rental is a positive way out. In this article, we looked at some of the features of a security deposit for a vehicle rental period, depending on the size of the security deposit, the class of vehicle, rental period, and more. Also, considered the risk situations when operating a rental vehicle.

Green strategies for the sustainable growth of food security

Modern society today is reconsidering its development strategy in the light of changing environmental conditions. The global climatic changes observed over the last 30-40 years require not just a careful attitude toward nature and resources, but a comprehensive review of the technologies of production and processing of raw materials and resources. The consumer strategy that has dominated society for the past 2-3 centuries must be completely transformed into a new philosophy of sustainable development of economic systems and growth of food supply for the growing world population. Deteriorating production conditions and resource depletion will not allow a growing humanity to develop at the same speed without a sustainable food base. Therefore, the task of increasing food security becomes a priority in the strategy for the development of the national economy.

Модификация модели взаимодействия с клиентом на основе омниканального подхода и ее влияние на финансовые результаты деятельности организации

Growth of financial activity, stable functioning and sustainable development of economic systems are largely ensured by the formation of strong and competitive business structures that timely adapt their strategic approaches to management in accordance with the conditions of the environment. Maintaining competitive positions in the market in conditions of digitalization becomes difficult or impossible without creating new sources of competitive advantages. Digitalization of the economy and business requires a corresponding change in the business model of the organization. One of the most contemporary issues of improvement in the structure of the business model is the system of interaction with the client. Its timely transformation ensures an integrated system approach to service and interaction with the client based on the omnichannel approach. This approach means including into the business processes of organizing a comprehensive system of digital and analog communication channels that provide multi-channel communication of business with the client, which form a single history of contacts and client experience in the company. From this position, the number of mastered, implemented digital technologies and communication channels in the system of interaction with the client can serve as an indicator of the company’s digital activity. There is proposed an author's approach to transforming the system of interaction with the client (through the omnichannel prism) in the business model of the organization in the context of the digitalization of the economy and business, defines the requirements for the business model and developed a system of indicators for assessing its effectiveness. An algorithm for introducing a digital business model into the activities of a trading enterprise is developed.

Теорія вартості як надбання економічної науки: витоки політичної економії у широкому сенсі

The emergence of a new reality as Information Society and Network Economics has marked the beginning of global market transformations. Such transformations are conditioned by the latest technological advances and innovations in the sphere of information and communication but at their core, they involve the need for creative thinking about the new socio-economic picture of the world. An adequate response to the vital social demand is the formation of a relativistic economic theory. The logic of the Middle Way, as a classical institutional direction, is called upon today to form political economy in a broad sense through the economic value theory. The ideas about the subject and method of political economy in the in the broad sense as the theory of socio-economic relativity were substantiation updated in the works of K. Marx and F. Engels. However, the methodological foundations of positive relativism had been originally laid down in the science of economic and crystallized in the depths of its classical current. In the light of the classical value approach, the theories of Marxism and Neoclassical synthesis claiming to be the main ideological theories, were turned out to be marginal. The evolution of politic-economic orders of social life is value-conditioned. Its scientific comprehension as a historical process of the formation of value and price, deployment of a value genetic code (institutional constitution), that is, the architectonics of an economic system, is the lot of political economy in a broad sense. Accordingly, positively relativistic political economy in the narrow sense reflects the completeness of the value comprehension of the mission of public choice at each of the basic stages in the process of historical deployment of the being of institutional architectonics. Aristotelian creative insights associated with the recognition of the triple nature of economic value, the institutional architectonics of management, designed to shape the benchmarks for a virtuous social life, represent the core of genuine European values. Consistent value based analysis necessarily leads economic science to clarify the essence and laws of economic harmony, which is the equilibrium functioning and sustainable development of economic systems.

ФОРСАЙТ-ПІДХІД ДО ОРГАНІЗАЦІЇ ТА ФІНАНСУВАННЯ СТАЛОГО ГОСПОДАРЮВАННЯ

The substantive features of the foresight methodology as a means to implement sustainable economic management are revealed, the basic formats and algorithm for the organization of financing of sustainable economic management on the basis of foresight approach are outlined. Emphasis is placed on the need to update the methodology for managing the sustainable development of economic systems using the foresight approach. Foresight design is identified as an effective tool for proactive management of economic systems, which creates opportunities for the formation of financial and logistical chain of funding the projects that involve natural resources in economic circulation, taking into account key competencies and smart specialization of various spatial entities with the participation of key economic process stakeholders - government, business and population. Creating funds for sustainable development financing is proven expedient, three main formats of their functioning are proposed: budget - focused on the target of professional financial planning of budget expenditures for the future, taking into account foresight strategy; service - related to the target functions of public-private partnership and involvement of business structures and their resources in the implementation of foresight; project - aimed at the formation of balanced, from the standpoint of liquidity, profitability and capital structure of investment proposals, secured, in turn, by income from foresight projects. The structural scheme of step-by-step interaction of economic process stakeholders in the organization of sustainable financing of foresight in a platform format is proposed. The basic stages of financing the foresight project of sustainable development are outlined, including the stage of investment, when the public sector and business structures enter into agreement on partnership in the investment project; the issue stage when a special legal entity SPV with the participation of an independent rating agency and under the supervision of a state regulator issues and sells on the stock market securities secured by future income from the project; the stage of refinancing the project by SPV company for its completion or operation or modernization and settlement with investors and originators on the issued financial obligations, etc.

Sustainability assessment of value flow of end consumer’s products and/or services

The purpose of article is to develop an approach to sustainability assessment of value flow of end consumer's products and/or services as a basis for improving the management system of corporate sustainability and sustainable development of economic systems and processes based on the study of patterns of consumer behavior and their decision to purchase products and/ or services. The research hypothesis is based on the assumption that sustainable development of the economy is determined by the sustainability of enterprises generating flows of products and/or services consumed by end consumers focused on receiving value flows. Terminological analysis, methods of grouping, typology and classification chosen as research methods, and binary matrices formed on the basis of qualitative attributes of object and it dichotomies used as tools to substantiate the scientific novelty of research. The following results are obtained in the article: the author's definitions of terms value, value flow, value sustainability and value flow sustainability; main consumption types of products and/or services from the perspective of sustainability; an approach to sustainability assessment of states, feelings and impressions of end consumer as basis for substantiating recommendations to improve the management of corporate sustainability and sustainable development of economic systems and processes.

Green economy in the conditions of modern challenges: conceptual frameworks

Ensuring the sustainable development of economic systems requires the introduction of organizational and managerial and environmentally friendly technologies and innovative business models aimed at reducing the negative impact on the environment. This is in line with the concept of "green growth" proposed by the Organization for Economic Co-operation and Development. As international experience shows, increasing the level of environmental safety of the national economy can be achieved through the implementation of conceptually new management tools based on integrated (combination of system, process, situational, functional) approaches to concept sustainable development. The purpose of the paper is to clarify the essence and content of the term "green economy" on the basis of generalization and systematization of existing conceptual approaches to the definition of this concept. Methodology. The methodological basis of the study is the scientific works of foreign and Ukrainian scientists on the problems of green economy, circular economy, and environmental management. The research was conducted using general scientific methods: analysis and synthesis – to summarize the existing conceptual approaches and provisions, scientific developments on the development of the green economy and greening of logistics systems, clarification of the terminology; classifications – to systematize theoretical approaches to the definition of "green economy", which are proposed by various scientific schools; structural and logical generalization – to clarify the essence and content of the term "green economy". Results. The evolution and preconditions of formation and challenges of the development of a green economy are investigated. The existing scientific approaches to the definition of "green economy" are analysed and generalized. Practical implications. The key goal of the transition to a green economy is to change the paradigm of logistics, rethink the value chain and develop new business models that must meet modern requirements and challenges in the global world. The practical significance of the results of the study lies in the possibility of developing recommendations for "green" transformation of logistics systems in a circular economy and regional strategies for industrial waste management in economic regions of Ukraine, taking into account their specifics. Value/originality. The author's approach to the formulation of the category "green economy" is theoretically substantiated.

Green economy and energy security of Russia

The concept of sustainable development, which forms the basis of the green economy, is aimed at ensuring social and environmental well-being, while it contains a number of systemic and non-systemic risks for Russia as the leading exporter of energy resources in the world. The study examines systemic and non-systemic risks that may threaten Russia’s energy security. The object of research is the green economy and energy balance within the framework of sustainable development of economic systems. The subject of the study is energy security as a complex characteristic and element of national development within the framework of sustainable development of the national economic complex. The purpose of the study is to identify and characterize systemic and non–systemic risks of implementing green economy concepts within the framework of ensuring the energy security of national systems. Research objectives: 1. Study of foreign and domestic experience in the subject area; 2. Theoretical analysis of scientifically – based sources; 3. Statistical data analysis;  4. Analysis and identification of systematic and non-systematic risks; 5. Drawing conclusions. The research methodology is an economic and statistical approach to data processing based on generally recognized methods of scientific cognition. Results of the study: 1. The author’s definitions of the main terms and categories of the subject area are presented; 2. Graphical analytics on achieving the goals of sustainable development and preserving the extraction of the resource base are presented; 3. Systematic risks forming the modern environment of Russia’s energy security are presented on the basis of the interrelation of the results of analytical calculations of the study.

CIRCULAR ECONOMY AS A NEW WAY OF MANAGING IN THE CONDITIONS OF DIGITAL TRANSFORMATIONS

Ensuring the sustainable development of economic systems requires the introduction of organizational, management and environmentally friendly technologies, as well as innovative business models aimed at reducing the negative impact on the environment. This is in line with the concept of "green growth" proposed by the Organization for Economic Co-operation and Development. As international experience shows, an increase in the level of environmental safety of the national economy can be achieved through the introduction of fundamentally new management tools based on integrated (combination of system, process, situational, functional) approaches, the concepts of "lean" production, sustainable development. The purpose of the paper is to clarify the essence and content of the term "circular economy" on the basis of generalization and systematization of existing conceptual approaches to the definition of this concept. Methodology. The methodological basis of the study are the scientific works of foreign and Ukrainian scientists on the problems of green economy, circular economy and environmental management. The study was conducted using general scientific methods: analysis and synthesis (to generalize the existing conceptual approaches and provisions, scientific developments on the development of circular economy and ecologization of logistic systems, clarification of terminology), classification (to systematize theoretical approaches to the definition of "circular economy" proposed by various scientific schools), structural and logical generalization (to clarify the essence and content of the term "circular economy"). Results. The evolution and preconditions of formation, challenges, and factors of development of circular economy are investigated. Existing scientific approaches to the definition of the concept of "circular economy" are analyzed and summarized, which are conventionally systematized into the following groups: section of economy, paradigm, strategy, model, system, ecological opportunity, recycling technology, tool of "green" economy, and type of economic activity. The term "circular economy" is proposed to be considered from the following positions: as a modern paradigm of development of logistic systems; as a new way of management in the conditions of digital transformations; as a strategic direction of sustainable development; as an economic model based on the technology of industrial waste processing in order to achieve sustainable business models in the national economy. Practical implications. The key goal of the transition to a circular economy is a paradigm shift in logistics, rethinking the value chain and developing new business models that must meet the current requirements and challenges of the global world. The practical significance of the results of the study lies in the possibility of developing recommendations for "green" transformation of logistics systems in a circular economy and regional strategies for industrial waste management in the economic regions of Ukraine, taking into account their specificity. Value/originality. The author's approach to the formulation of the category "circular economy" is theoretically substantiated.

Conceptual framework for sustainable development of food market

The present research deals with substantiating the need to develop a conceptual framework for the sustainable development of the food market and ensuring the country's food security through domestic production of quality food. At present, the sustainable development of economic systems is a relevant problem, and therefore the sustainable development of the food market is also becoming acute. This problem is not sufficiently developed in both theoretical and practical aspects. Its study allowed identifying factors that affect the sustainability of the food market. These factors include industrializing agriculture, improving agricultural technologies, developing market infrastructure, ensuring national competitive advantages of the agrifood sector, etc. The article analyzes the key trends in the development of the Russian food market, which allowed concluding that ensuring its sustainable development should include economic regulators that would ensure the combination of interests of the state, producers, and consumers, as well as forming equivalent relations among them. The study presents the main provisions of the sustainable development concept of the food market.

Sustainable development of economic systems on the basis of innovative processes

The social and economic processes resulting from the COVID-19 pandemic are a new global factor that highlights setting out conditions for sustainable development of economic systems. The authors propose a hypothesis that a stable growth rate of national economy is ensured by qualitative and systemic improvement of leading innovative indicators. Thus, the purpose of the paper is to study the dynamics of and correlation between indicators of innovative development of territorial and sectoral economies. The paper presents economic and statistical study of the volume of innovative products and performed services, funding of technological innovations; the creation and application of new technologies. To ensure representativity of the sample, the authors analyzed the leading performance indicators in Russian R&D organizations from January to June 2020. The parameters of the analysis were the location in a federal district and a form of ownership. A direct correlation between R&D costs and the average number of researchers has been revealed. Sustainable development of economic systems in a new economic reality is possible only with the application of effective methods of analyzing innovation costs, studying laws and factors of innovation development, forms of endogenous and exogenous technological exchange for all economic entities.

Modern paradigms of Sustainable Development: Advantages and Disadvantages

The article presents an analysis of theoretical approaches and mechanisms for implementing the principles of sustainable development. The authors identify and analyze the main theoretical and methodological paradigms in relation to the concept of sustainable development: anthropocentric, biospherocentric and noospheric, identify the advantages and disadvantages of their epistemological potential. The paper examines the causal relationships and dependencies between economic, environmental and social processes in the context of the anthropocentric paradigm, defines the conditions and factors of sustainable development of economic systems of market organization.

Analyzing the Russian tool-making industry within the sustainable development concept

Subject. The article explores the economic component of sustainable development through the classification of industries from the perspective of assigning the output goods to fixed or current assets, using different types of resources and assessing their condition. It considers factors of production affecting the achievement of the result and determining the development of economic systems at the meso- and micro-hierarchical level. Objectives. The aim is to assess the function of economic systems of different hierarchical levels on the tool-making facilities case. Methods. We apply an approach using general and special methods of comparative and statistical analysis, synthesis and analogies. Results. The paper analyzes the development of the Russian tool-making industry on the basis of resource-oriented approach to assess the functioning of economic systems at various levels. We review interrelations between resource use efficiency, types of sustainable development of economic systems at various hierarchical levels and strategic security of the country. Conclusions. Any development can be considered sustainable, if there is an increment in the intensive development of economic systems at all three levels.

Innovation Commercialization in Russia and Ways of Overcoming it at the Current Stage of Economy Development

During the last decade the role of innovation in the development of Russian and overseas economy has been rising. Innovation growth takes place in all spheres of global economy, including Russia. Sustainable development of economic systems depends today on introduction of intellectual activity results in production therefore a demand in innovation commercialization arises. The article identifies several problems of innovation commercialization that came into being in Russia lately, which were studied in academic literature. The author puts forward his own interpretation of the ideas of innovation platform and innovation strategy, provides classification of key forms o the innovation process and gives examples of countries, which conduct commercialization of intellectual activity results successfully. He systematizes the material identifying approaches to commercialization of research results in global practice and offers practical recommendations on managing the process. Conclusions were made about the importance of innovation commercialization on micro- and macro-levels of economy and about the impact of state policy on shaping the model of research result commercialization in Russia. The author shows the future prospects of managing the process of innovation commercialization and underlines their positive influence on the economic development of the country.

Concerning Sustainable Development of Economic Systems

The current technological development provides a foundation for fast growth of well-being in industrialized countries and at the same time causes global economic misbalance. Growing production and consumption lead to wasteful use of resources and increasing contamination of air, water and soil. In order to meet basic needs we cause damage to the environment. The article investigates the issues of strategic survival of society in conditions of natural resources deficit. The concept of sustainable development adopted and accepted in the whole world is, unfortunately just a concept in many spheres and it requires development and introduction of economic mechanisms of rational use of resources of all types. The continuously increasing speed of changes has become a principle factor of economic growth. But the economic approach is a pivot of the concept of sustainable development. The authors proved that only observance of balance between economic, social and ecological interests of business entities and their harmonization at the expense of innovation, which were used in economic, social and ecological life of society, could result in sustainable development of economic systems.

ДОСЛІДЖЕННЯ СКЛАДОВИХ ЕКОНОМІЧНОЇ БЕЗПЕКИ УКРАЇНИ ДЛЯ СТАЛОГО РОЗВИТКУ ДЕРЖАВИ

The article considers the innovative methods of estimation and analysis of the current economic security situation in Ukrain e . The nature of current problems of economic security of State is also disclosed and proposals are presented for overcoming the crisis phenomena of the modern develeping economy of the country. This article reflects the institutional features of the economic security ensuring of the State in the face of instability and the emergence of new associated with the cyclical nature of the economy. The ways of overcoming the crisis conditions of various branches of production for the sustainable development and economic growth of the state in the condition of integration of the country in the world economic markets and organizations are analyzed. The purpose of the article is to reveal the urgent issues of Ukraine's economic security and provide the solution of the crisis of the modern state economy. It is important to note that the state's economic security also serves as a criterion for the effectiveness (efficiency) of the state's economic policy. Allocation of national economic interest as one of the most important in the structure of national interests of the country is the basis for the effective sustainable development of economic system. National economic security is understood as the protection of the economy from internal and external adverse factors that interfere with normal functioning of the internal reproduction process, undermine the standard of living of the population and thereby cause increased social tension in society, as well as the threat to the state itself. Among the top priority issues of the economic security is monitoring and assessment of the level of to priority national interests, and therefore their interdependence: the calculation of total potential, the disclosure of laws in the system of priorities of national interests - threats .