METHODOLOGY OF IDENTIFICATION ESG COMPONENT IN THE SYSTEM OF LONG-TERM BUSINESS RESILIENCE
Journal: International scientific journal "Internauka." Series: "Economic Sciences" (Vol.1, No. 80)Publication Date: 2023-12-31
Authors : Kirzhetska Mariya; Kirzhetskyy Yuriy; Musiiovska Oksana;
Page : 99-105
Keywords : long-term sustainability; corporate goals; ESG criteria; indicators of long-term sustainability of the entity;
Abstract
Ukraine's business has faced many serious challenges; in addition to the war, there are global problems: climate change, loss of nature, social injustice, and social inequality. Business becomes part of the society in which it operates and is responsible for the change, as well as a real opportunity to be a leader in essential issues that can help shape the future pros‑ perity for all. Despite the fundamental goal of entrepreneurship: and profitability, ensuring long-term corporate sustainability also depends on achieving ESG criteria: environmental friendliness, social policy and corporate governance. Given that in the new economic paradigm, achieving long-term financial sustainability involves basing on ESG criteria, assessing sustainable business development from the standpoint of financial, economic, environmental, social and corporate governance indicators is particularly important. The article is a development of a methodology which will allow an assessment of the level of long-term financial stability of the enterprise based on the application of the method of the main components and the interpretation of the results obtained, taking into account all the components of the integral indicator. Based on the analysis of literary sources, the components of long-term financial stability will determine through the prism of business valuation, which the stakeholder carries out. The article presents the author's vision of long-term business sustainability, which, in addition to achieving financial stability, also implies the achievement of goals for the functioning of the business according to ESG criteria. The proposed meth‑ odology for assessing long-term financial stability will adapt to the specifics of the functioning of an entity in various industries. Applying this technique will make it possible to calculate the long-term sustainability of the business, taking into account all areas of activity to enable management to identify the strengths and weaknesses of some enterprise activity and development.
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