Actual problems of innovative economy and law

Journal "Actual problems of innovative economy and law" is included in category B for specialties: in the field of knowledge "Management and administration": 073, 076 (order of the Ministry of Education and Science of Ukraine dated 23.08.2023 No. 1035) and 071, 072, 075 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543); in the field of knowledge "Social and behavioral sciences" 051 (order of the Ministry of Education and Science of Ukraine dated August 23, 2023 No. 1035); in the field of knowledge "Law" - 081 and "Public management and administration" - 281 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543).
Registration of an entity in print media: Decision of the National Council of Ukraine on Television and Radio Broadcasting No. 1390 dated 11/16/2023. Media identifier: R30-02018
The journal is indexed in the International Scientific Center of Index Copernicus International

Financial mechanism for ensuring the strategic development of the enterprise on the basis of sustainability

# 16 89-94 Download/view full article

УДК: 332.146

DOI: https://doi.org/10.36887/2524-0455-2024-2-16

Ivanova Nataliia,
Doctor of Economic Sciences, Professor, Head of the Department of Entrepreneurship and Trade,
Chernihiv Polytechnic National University,
http://orcid.org/0000-0001-6622-7310.
Ivanov Glib,
PhD student of the Department of Management and Administration
Chernihiv Polytechnic National University,
https://orcid.org/0009-0005-8015-955X

The article begins by highlighting the global paradigm shift towards sustainable development. It requires companies of all scales and industries to take a comprehensive approach to implementing sustainability principles into their strategic management systems. The authors define sustainable development as a balanced approach to economic, social, and environmental spheres that allows meeting present needs without compromising future generations. Achieving sustainable development goals necessitates significant investments and a well-grounded financing strategy. In this context, determining an effective, sustainable development financing strategy for a company becomes a critical task that should be aligned with the corporate strategy defining the company’s long-term development goals. The authors review research on financing sustainable development by domestic and foreign scholars. They synthesize the primary approaches, including studying green financing instruments, developing financial sustainability strategies, implementing sustainable financial management systems, and shaping state financial policies to foster sustainability. The theoretical section analyzes the role of finance in enabling sustainable development through resource valuation, distribution, and redistribution mechanisms. The authors comprehensively analyze internal and external factors influencing a company’s activities to determine specific sustainable development goals, assess required investments, develop an optimal mix of financing sources with timelines, and design risk mitigation measures. The paper outlines key areas for financing sustainable development initiatives at the company level, such as implementing sustainability priorities, accounting for sustainability factors, developing organizational sustainability management systems, adopting clean technologies, and implementing social programs. A conceptual framework for a financial mechanism to support a company’s strategic sustainable development is proposed. An important aspect is to ensure proper communication about the results achieved and progress in sustainable development, which will help increase the company’s credibility and reputation.

Keywords: sustainable development, financial instruments, financial mechanism, impact investing, enterprise strategy.

References.

  1. Dubyna, M., Serdiuk, D. (2023). «Ensuring sustainable development of Ukraine in conditions of uncertainty and turbulence of the external environment». Problemy i perspektyvy ekonomiky ta upravlinnia. № 4(36). рр. 9-25.
  2. Ivanova, N. (2023). «Impact investing as a modern concept of sustainable development of logistics systems». Problemy i perspektyvy ekonomiky ta upravlinnia. №1(33). рр. 226-237 DOI: 10.25140/2411-5215-2023-1(33)-226-237.
  3. Lomachyns’ka, I.A. (2020). «Conceptual approaches to determining the essence of impact investments». Biznes-inform. № 2. рр. 16-22. Available at: http://dspace.onu.edu.ua:8080/bitstream/123456789/28020/1/16-22.pdf.
  4. Metelenko, N.H., Shul’ha, O.P. (2016). «Conceptualization of the concept of “financial mechanism”». Prychornomors’ki ekonomichni studii: ekonomichnyj naukovo-praktychnyj zhurnal. № 10. рр. 171-179.
  5. Olijnyk, D.I. (2017). Mizhnarodnyj dosvid finansuvannia staloho rozvytku hromad (na prykladi formuvannia merezhevoi infrastruktury). [International experience of financing the sustainable development of communities (on the example of the formation of network infrastructure)]. NISD. Kyiv.
  6. Solodovnik, O. (2023). «Financial support for the sustainable development of enterprises». Ekonomika ta suspil’stvo. № 49. DOI: https://doi.org/10.32782/2524-0072/2023-49-17.
  7. Stratehiia rozvytku finansovoho sektoru Ukrainy do 2025 roku. [Strategy for the development of the financial sector of Ukraine until 2025]. Available at: http://surl.li/cvpla.
  8. Shevchenko, O.M., Rudych, L.V. (2020). «Development of financial technologies in the conditions of digitization of the economy of Ukraine». Efektyvna ekonomika. № 7. DOI: https://doi.org/10.32702/2307-2105-2020.7.61.
  9. Shkvarchuk, L., Hajdin, O. (2020). «ESG-criteria in the evaluation system of sustainable development». Zhurnal «Naukovi innovatsii ta peredovi tekhnolohii». №5(7). рр. 195-206.
  10. Clark, G., Feiner, A., Viehs, M. (2014). «From the stockholder to the stakeholder. How sustainability can drive financial outperformance». SSRN Electronic Journal. DOI: https://doi.org/10.2139/ssrn.2508281.
  11. Eccles, R.G., Ioannou, I., Serafeim, G. (2014). «The Impact of Corporate Sustainability on Organizational Processes and Performance». Management science. Vol. 60. Issue 11. рр. 2835-2857.
  12. ESG-pryntsypy ta vidpovidal’ne instytutsijne investuvannia u sviti: Krytychnyj ohliad doslidzhen’. (2020). [ESG Principles and Responsible Institutional Investing in the World: A Critical Review of Research]. Vydavnytstvo L’vivs’koi politekhniky. L’viv.
  13. Impact Investment: Why Business Chooses Socially Significant Projects. Available at: https://ufuture.com/en/impact-investment-why-business-chooses-socially-significant-projects/.
  14. Snider, A. (2016). Impact Investing: The Performance Realities. Global Impact Investing Network. Available at: http://surl.li/syzwu.
  15. Transforming our world: the 2030 Agenda for Sustainable Development. Available at: https://sdgs.un.org/2030agenda.

The article was received 27.02.2024