BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

The Integrated Eco-Social Management of Sustainable Inclusive Development
Parfentieva O. H.

Parfentieva, Olena H. (2023) “The Integrated Eco-Social Management of Sustainable Inclusive Development.” Business Inform 11:291–304.
https://doi.org/10.32983/2222-4459-2023-11-291-304

Section: Management and Marketing

Article is written in Ukrainian
Downloads/views: 0

Download article (pdf) -

UDC 338.242.2

Abstract:
The aim of the article is to develop proposals for improving the model of management of economic development, which is based on taking into account ecological, social and managerial criteria and ensures the achievement of synergistic effects in conditions of complex, non-linear and radical uncertainty. The ways of influence of factors of sustainable development on the economic, in particular financial, parameters of the company’s activity are studied. The ways in which ecological, social and corporate governance (ESG) factors affect money flows, profits and value creation are demonstrated. The spheres of integration of the conception into the management system are considered. The relationship of ESG parameters with corporate social responsibility, investment analysis, financial indicators, non-financial advantages, risk management, and resilience is revealed. The essence of the concept of resilience as the ability of a dynamic socioeconomic system to quickly and successfully adapt to a new environment and recover in conditions of complex, non-linear and radical uncertainty, showing resistance to unpredictable events and destructive phenomena (adversity, failures, crises, shocks) is disclosed. A conceptual vision of management in the context of sustainable development has been formed, taking into account the prospects and challenges. A model of an integrated eco-social management has been proposed in the form of a balanced set of supplementing areas of application of ESG (investment and business financing, corporate social responsibility, risk management, ensuring resilience), the complementary implementation of which ensures the achievement of synergistic effects on the way to sustainable inclusive development.

Keywords: sustainable development, governance, uncertainty, sustainable investments, risks, resilience, ESG.

Fig.: 1. Bibl.: 61.

Parfentieva Olena H. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Economics, National Transport University (1 Omelianovycha-Pavlenka Str., Kyiv, 01010, Ukraine)
Email: [email protected]

List of references in article

Amel-Zadeh, A., and Serafeim, G. “Why and How Investors Use ESG Information: Evidence from a Global Survey“. Harvard Business School Working Paper. No. 17-079. February 2017. https://dash.harvard.edu/bitstream/handle/1/30838135/17-079.pdf?sequence=1&isAllowed=y
Atz, U. et al. “Does Sustainability Generate Better Financial Performance? Review, Meta-analysis, and Propositions“. Journal of Sustainable Finance and Investment, vol. 13, no. 1 (2023): 802-825. DOI: https://doi.org/10.1080/20430795.2022.2106934
Bae, S. C., Chang, K., and Yi, H.-Ch. “Corporate social responsibility, credit rating, and private debt contracting: New evidence from syndicated loan market“. Review of Quantitative Finance and Accounting, vol. 50, no. 1 (2018): 261-299. DOI: https://doi.org/10.1007/s11156-017-0630-4
Bae, S. C., Chang, K., and Yi, H.-Ch. “The impact of corporate social responsibility activities on corporate financing: A case of bank loan covenants“. Applied Economics Letters, vol. 23, no. 17 (2016): 1234-1237. DOI: https://doi.org/10.1080/13504851.2016.1148247
Barnett, M. L., and Salomon, R. M. “Beyond dichotomy: The curvilinear relationship between social responsibility and financial performance“. Strategic Management Journal, vol. 27, no. 11 (2006): 1101-1122. DOI: https://doi.org/10.1002/smj.557
Barrett, C. B., and Constas, M. A. “Toward a theory of resilience for international development applications. Proceedings of the National Academy of Sciences (PNAS)“, vol. 111, no. 40 (2014): 14625-14630. DOI: https://doi.org/10.1073/pnas.132088011
Bourghelle, D., Jemel, H., and Louche, C. “The integration of ESG information into investment processes: toward an emerging collective belief?“ EABIS. Working Paper, 2009. https://repository.vlerick.com/bitstream/handle/20.500.12127/3279/Bourghelle_D_WP_IntegrationofESGInformationintoInvestmentProcesses.pdf?sequence=1&isAllowed=y
Brende, B., and Sternfels, B. “Resilience for sustainable, inclusive growth“. World Economic Forum, McKinsey & Company, 2022. https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/resilience-for-sustainable-inclusive-growth
Busch, T., Bauer, R., and Orlitzky, M. “Sustainable Development and Financial Markets: Old Paths and New Avenues“. Business and Society, vol. 55, no. 3 (2016): 303-329. DOI: https://doi.org/10.1177/000765031557070
Busch, T., and Friede, G. “The Robustness of the Corporate Social and Financial Performance Relation: A Second-Order Meta-Analysis“. Corporate Social Responsibility and Environmental Management, vol. 25, no. 4 (2018): 583-608. DOI: https://doi.org/10.1002/csr.1480
Carlson, D. “Mentions of 'ESG' and Sustainability are Being Made on Thousands of Corporate Earnings Calls“. Market Watch. July 19, 2021. https://www.marketwatch.com/story/mentions-of-esg-and-sustainability-are-being-made-on-thousands-of-corporate-earnings-calls-11626712848
Chava, S. “Environmental externalities and cost of capital“. Management Science, vol. 60, no. 9 (2014): 2111-2380. DOI: https://doi.org/10.1287/mnsc.2013.1863
Clark, G. L., Feiner, A., and Viehs, M. “From the Stockeholder to the Stakeholder: How Sustainability Can Drive Financial Performance“. University of Oxford, 2015. https://arabesque.com/research/From_the_stockholder_to_the_stakeholder_web.pdf
Dhaliwal, D. et al. “Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting“. The Accounting Review, vol. 86, no. 1 (2011): 59-100. DOI: https://doi.org/10.2308/accr.00000005
Dolsak, N., Griffin, J. J., and Prakash, A. “Is ESG Simply the Old CSR Wine in a New Bottle?“ The Regulatory Review. March 28, 2022. https://www.theregreview.org/2022/03/28/dolsak-griffin-prakash-is-esg-old-csr-wine-in-new-bottle/
Dormady, N., Roa-Henriquez, A., and Rose, A. “Economic resilience of the firm: A production theory approach“. International Journal of Production Economics, vol. 208 (2019): 446-460. DOI: https://doi.org/10.1016/j.ijpe.2018.07.017
Eccles, R. G., and Kastrapeli, M. D. “The Investing Enlightenment: How Principle and Pragmatism Can Create Sustainable Value through ESG“. State Street, 2017. https://arabesque.com/research/Final_The_Investing_Enlightenment.pdf
Eccles, R. G., Lee, L.-E., and Stroehle, J. C. “The Social Origins of ESG? An Analysis of Innovest and KLD“. Organization & Environment, vol. 33, no. 4 (2019). DOI: https://doi.org/10.1177/1086026619888994
Eccles, R. G., and Stroehle, J. C. Exploring Social Origins in the Construction of ESG Measures. July 12, 2018. DOI: http://dx.doi.org/10.2139/ssrn.3212685
“ESG vs CSR, what is the difference?“ Worldfavor: The ESG platform. https://blog.worldfavor.com/esg-vs-csr-what-is-the-difference
Ferrarese, C., and Hanmer, J. “The impact of ESG investing in corporate bonds“. Fidelity International. 2018. https://page.ws.fidelityinternational.com/rs/829-LMV-001/images/ESG%20White%20Paper%20FINAL.pdf
Friede, G., Busch, T., and Bassen, A. “ESG and financial performance: aggregated evidence from more than 2000 empirical studies“. Journal of Sustainable Finance and Investment, vol. 5, no. 4 (2015): 210-233. DOI: https://doi.org/10.1080/20430795.2015.1118917
“From the Retail Trading Frenzy to Growing ESG Trends, What Will Be in Proxy Season 2021?“ Broadridge, May 3, 2021. https://www.prnewswire.com/news-releases/from-the-retail-trading-frenzy-to-growing-esg-trends-what-will-be-in-proxy-season-2021-301281582.html
Gadinis, S., and Miazad, A. “Corporate Law & Social Risk“. Vanderbilt Law Review. 2020. https://scholarship.law.vanderbilt.edu/cgi/viewcontent.cgi?article=4408&context=vlr
Gillan, S.L., Koch, A., and Starks, L. T. “Firms and social responsibility: A review of ESG and CSR research in corporate finance“. Journal of Corporate Finance, art. 101889, vol. 66 (2021). DOI: https://doi.org/10.1016/j.jcorpfin.2021.101889
“Global Perceptions of Environmental, Social and Governance Investing“. CFA Institute. ESG Survey, 2017. https://rpc.cfainstitute.org/-/media/documents/survey/esg-survey-report-2017.pdf
Goss, A., and Roberts, G. “The impact of corporate social responsibility on the cost of bank loans“. Journal of Banking & Finance, vol. 35, no. 7 (2011): 1794-1810. DOI: https://doi.org/10.1016/j.jbankfin.2010.12.002
Goss, A. “Corporate Social Responsibility and Financial Distress“. ASAC, 2009. https://www.tias.edu/docs/default-source/documentlibrary_fsinsight/allen-goss-corporate-financial-responsibility-and-financial-distress.pdf
Hazen, T. L. “Social Issues in the Spotlight: The Increasing Need to Improve Publicly-Held Companies' CSR and ESG Disclosures“. University of Pennsylvania Journal of Business Law. 2021. https://scholarship.law.unc.edu/cgi/viewcontent.cgi?article=1569&context=faculty_publications
Henisz, W., Koller, T., and Nuttall, R. “Five ways that ESG creates value“. McKinsey Quarterly. November 14, 2019. https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Strategy%20and%20Corporate%20Finance/Our%20Insights/Five%20ways%20that%20ESG%20creates%20value/Five-ways-that-ESG-creates-value.ashx
Henisz, W. J., and McGlinch, J. “ESG, material credit events, and credit risk“. Journal of Applied Corporate Finance, vol. 31, no. 2 (2019): 105-117. DOI: https://doi.org/10.1111/jacf.12352
Hynes, W. et al. “Systemic resilience in economics“. Nature Physics, vol. 18 (2022): 381-384. DOI: https://doi.org/10.1038/s41567-022-01581-4
Kell, G. “The Remarkable Rise of ESG“. Forbes. July 11, 2018. https://www.forbes.com/sites/georgkell/2018/07/11/the-remarkable-rise-of-esg/?sh=4be3a9b81695
Khan, M., Serafeim, G., and Yoon, A. “Corporate sustainability: First evidence on materiality“. Harvard Business School Working Paper. No. 15-073. March 2015. https://dash.harvard.edu/bitstream/handle/1/14369106/15-073.pdf
Kotsantonis, S., Pinney, C., and Serafeim, G. “ESG Integration in Investment Management: Myths and Realities“. Applied Corporate Finance, vol. 28, no. 2 (2016): 10-16. DOI: https://doi.org/10.1111/jacf.12169
Landry, E., Lazaro, M., and Lee, A. “Connecting ESG and corporate bond performance“. MIT Management Sloan School; Breckinridge Capital Advisors, 2017. https://mitsloan.mit.edu/sites/default/files/2018-10/Breckinridge-Poster-2017.pdf
Li, T.-T. et al. “ESG: Research Progress and Future Prospects“. Sustainability, art. 11663, vol. 13, no. 21 (2021). DOI: https://doi.org/10.3390/su132111663
LoPucki, L.M. “Repurposing the Corporation Through Stakeholder Markets“. University of California Davis Law Review. 2021. https://scholarship.law.ufl.edu/cgi/viewcontent.cgi?article=2139&context=facultypub
Lundqvist, S. A., and Vilhelmsson, A. “Enterprise risk management and default risk Evidence from the banking industry“. Journal of Risk and Insurance, vol. 85, no. 1 (2018): 127-157. DOI: https://doi.org/10.1111/jori.12151
Madelyn, A. “Why sustainability? Because risk evolves and risk management should too“. Risk Management in Financial Institutions. 2019. https://www.ingentaconnect.com/content/hsp/jrmfi/2019/00000012/00000003/art00002
Nagy, Z., Kassam, A., and Lee, L.-E. “Can ESG add alpha? An analysis of ESG tilt and momentum strategies“. The Journal of Investing Summer, vol. 25, no. 2 (2016): 113-124. DOI: https://doi.org/10.3905/joi.2016.25.2.113
“On Management and Supervision of ESG Risks for Credit Institutions and Investment Firms“. EBA/Rep/2021/18. https://www.eba.europa.eu/sites/default/files/document_library/Publications/Reports/2021/1015656/EBA%20Report%20on%20ESG%20risks%20management%20and%20supervision.pdf
O'Neill, S. “What is the difference between CSR and ESG?“ Corporate governance institute, 2023. https://www.thecorporategovernanceinstitute.com/insights/lexicon/what-is-the-difference-between-csr-and-esg/
Pohl, Ch., Schuler, G., and Schiereck, D. “Borrower- and lender-specific determinants in the pricing of sustainability-linked loans“. Journal of Cleaner Production, art. 135652, vol. 385 (2023). DOI: https://doi.org/10.1016/j.jclepro.2022.135652
Pollman, E. “Corporate Social Responsibility, ESG, and Compliance“. In Forthcoming, Cambridge Handbook of Compliance, 662-672. Loyola Law School. Los Angeles Legal Studies Research Paper no. 2019-35.
Pollman, E. “The origins and consequences of the ESG Moniker“. University of Pennsylvania Carey Law School. Institute for Law and Economics. Research Paper 22-23, 2022. https://www.ecgi.global/sites/default/files/Paper:%20Elizabeth%20Pollman.pdf
Rapoza, K. “How The 'Woke' Capitalists Can Save America“. Forbes, April 5, 2020. https://www.forbes.com/sites/kenrapoza/2020/04/05/how-the-woke-capitalists-can-save-america/?sh=ac380d871eda
Reznick, M., and Viehs, M. “Pricing ESG risk in credit markets: Through volatility, our conviction affirmed“. Hermes Credit and Hermes EOS, 2017. https://www.hermes-investment.com/uploads/2021/03/3c2c00030f63fa43992b459ec164497a/fhi-fixed-income-research-pricing-esg-in-credit-markets-03-21.pdf
Schramade, W. “Integrating ESG into valuation models and investment decisions: the value driver adjustment approach“. Journal of Sustainable Finance & Investment, vol. 6, no. 2 (2016): 95-111. DOI: https://doi.org/10.1080/20430795.2016.1176425
Serafeim, G. “ESG: Hyperboles and Reality“. In Harvard Business School. Research Paper Series. Working Paper 22-031, 2021.
Southwick, S. M. et al. “Resilience definitions, theory, and challenges: interdisciplinary perspectives“. European Journal of Psychotraumatology, vol. 5, no. 1 (2014). DOI: https://doi.org/10.3402/ejpt.v5.25338
Visconti, R. M. DCF Metrics and the Cost of Capital: ESG Drivers and Sustainability Patterns. 2021. DOI: https://doi.org/10.2139/ssrn.4132432
Webber, D. H., Barzuza, M., and Curtis, Q. “Shareholder Value(s): Index Fund ESG Activism and the New Millennial Corporate Governance“. Southern California Law Review. 2020. https://southerncalifornialawreview.com/wp-content/uploads/2021/02/Curtis_final.pdf
Wood, D. “What do we mean by the S in ESG? Society as a Stakeholder in Responsible Investment“. In The Routledge Handbook of Responsible Investment, 553-564. 2015.
Wright, C. et al. “A Framework for Resilience Thinking“. Procedia Computer Science, vol. 8 (2012): 45-52. DOI: https://doi.org/10.1016/j.procs.2012.01.012
Adamenko, L. S. “Aktualni pidkhody do problemy doslidzhennia psykhichnoi rezylientnosti“ [Current Approaches to the Problem of Researching Mental Resilence]. Visnyk Natsionalnoho universytetu oborony Ukrainy, no. 5 (2020): 5-13. DOI: 10.33099/2617-6858-20-58-5-5-13
Vasylchuk, I. P. “Finansuvannia diialnosti korporatsii v paradyhmi staloho rozvytku“ [Financing the Activities of Corporations in the Paradigm of Sustainable Development]: dys. ... d-ra ekon. nauk : 08.00.08, 2017.
Kolot, A. M. “Korporatyvna sotsialna vidpovidalnist: suchasna filosofiia, problemy zasvoiennia“ [Corporate Social Responsibility: Modern Philosophy, Problems of Assimilation]. Ekonomika Ukrainy. 2014. https://core.ac.uk/download/pdf/32615153.pdf
Kolot, A. M. “Suchasna filosofiia korporatyvnoi sotsialnoi vidpovidalnosti: evoliutsiia pohliadiv“ [Modern Philosophy of Corporate Social Responsibility: Evolution of Views]. Ukraina: aspekty pratsi. 2013. https://core.ac.uk/download/pdf/32607109.pdf
Portnyi, O. V. “Tsinnisno-oriientovane upravlinnia ekonomichnym rozvytkom transportnoi kompanii“ [Value-oriented Management of the Economic Development of the Transport Company]: dys. … d-ra filosofii : 051, 2021.
Cherevatskyi, D. Yu. “Rezylientnist ekonomiky ta ekonomika rezylientnosti“ [The Resilience of Economics and the Economics of Resilience]. Ekonomika promyslovosti, no. 1 (2023): 31-39. DOI: http://doi.org/10.15407/econindustry2023.01.031

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster