Business Strategies of Companies in the Context of Sustainable Development

410
DOI: 10.20542/0131-2227-2020-64-4-37-44
A. Shlikhter (shlihter.alexey@yandex.ru), 
Primakov National Research Institute of World Economy and International Relations (IMEMO), Russian Academy of Science, 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation

Abstract. The objective of the article is to analyze how fully the SD Goals are implemented in the policies of financial institutions, investment funds and business corporations, and what else needs to be done, especially taking into account the requests of investors, to ensure the achievements of the 17 Goals. The concept of SD provides not only an understanding at the system-wide level most of the problems of humanity, but also becomes a large-scale practice. This is not about static and unchanging state, but on the contrary, its dynamics, ensuring that current and future human needs are taken into account in maintaining the balance of socio-economic and natural systems. The article emphasizes and substantiates the role of the concept of sustainable development in the practice of international banks, funds and manufacturing companies. The author proceeds from the fact that SD is becoming a new paradigm for the existence of financial and non-financial companies. They are in the transformation of their behavior model, in which the creation of added value for shareholders is combined with non-financial reporting by companies, movement towards guidelines that meet the interests of business and society as a whole. The content of this transformation introduces a new approach to managing natural production reserves, risks and a wide range of impacts in the humanitarian field. This means that by building a value chain, companies solve the most important problems, such as the economical use of natural resources, the protection of the natural environment, human health and safety. As a result, they themselves become sustainable. In other words, the very approach to creating a value chain is subject to rethinking introduces international principles in the field of human rights, labor relations, declares its climate responsibility engaged in charity, volunteering and sustainable development of territories; taking into account the views of stakeholders, publishes non-financial reporting and much more. Thus, the environmental and social responsibility of business is no longer a matter of choice, but a kind of imperative, since there is a request from the world community and stakeholders for sustainable development, which no large company can pass by. This responsibility becomes its responsibility, which will ultimately affect the ability to manage risks, provide energy supply, purchase raw materials, developing and using innovative environmentally friendly technologies and products, and protect against weather disasters and natural disasters.

Keywords: sustainable development, UN goals, green technologies, institutional investors, climate bonds, renewable energy, LOHAS consumers


REFERENCES

  1. The Sustainable Development Goals Report. New York, United Nations, 2017. 65 p. Available at: https://unstats.un.org/sdgs/report/2017/ (accessed 03.11.2018).
  2. Scott L., McGill A. From Promise to Reality: Does Business Really Care about the SDG’s? PwC SDG Reporting Challenge, September 4, 2018. 39 p.
  3. Stathis K. L. Annual Study of Intangible Asset Market Value. Chicago, Ocean Tomo, 5 March 2015. 173 p.
  4. Eling Lee L., Moscardi M. ESG Trends to Watch. MSCI 2019, 32 p. Available at: https://www.msci.com/www/blog-posts/esg-trends-to-watch-in-2019/01225995404 (accessed 06.02.2019).
  5. US SIF. The Forum for Sustainable and Responsible Investment 2018. Available at: https://www.ussif.org/blog_home.asp?display=118 (accessed 06.02.2019).
  6. Hotten R. Volkswagen: Scandal Explained. BBC News. Business Reporter, December 10, 2015. Available at: https://www.bbc.com/news/business-34324772 (accessed 18.10.2018).
  7. Coonin A. The Top Green Companies Right Now & how They Were Chosen? Rubicon, September 4, 2018. Available at: https://www.rubiconglobal.com/blog/top-green-companies/ (accessed 07.02.2019).
  8. Environmental taxes, reliefs and schemes for businesses. May 17, 2016. Available at: https://www.gov.uk/green-taxes-and-reliefs/climate-change-levy (accessed 11.11.2019).
  9. Final Report 2018 by the High-Level Expert Group on Sustainable Finance. Brussels, European Commission. 99 p. Available at: https://ec.europa.eu/info/sites/info/files/180131-sustainable-finance-final-report_en.pdf (accessed 10.01.2019).
  10. Giese G., Eling L., Melas D., et al. Foundations of ESG Investing: how ESG Affects Equity Valuation, Risk, and Performance. The Journal of Portfolio Management, vol. 45, issue 5, July 2019, pp. 1-15. Available at: https://www.msci.com/documents/10199/03d6faef‑2394-44e9-a119-4ca130909226 (accessed 05.02.2019).
  11. US Companies Beware Tough Penalties in EU for Sustainability Non-compliance. March 19, 2018. Available at: https://sustainability-academy.org/us-companies-beware-tough-penalties-in-eu-for-sustainability-non-compliance/ (accessed 17.10.2019).
  12. Schupbach Sue Sia, Grol M., at al. LOHAS. Lifestyle of Health and Sustainability. Ernst&Young–LOHAS, 2007. 35 p.
  13. Measuring Environmental Innovation Using Patent Data: Policy Relevance. Paris, OECD, 2015. Available at: http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=ENV/EPOC/WPEI(2014)6/FINAL&docLanguage=En (accessed 0.9.11.2019).
  14. Figovskii O., Gumarov V. Zelenye tekhnologii. Obzor novykh nauchno-tekhnicheskikh razrabotok [Green technology. Review of new scientific and technological developments], no. 3(336), 12.03.2018. Available at: http://www.relga.ru/Environ/WebObjects/tgu-www.woa/wa/Main?textid=5324&level1=main&level2=articles (accessed 13.11.2019).

Registered in System SCIENCE INDEX

For citation:
Shlikhter A. Business Strategies of Companies in the Context of Sustainable Development. World Eonomy and International Relations, 2020, vol. 64, no. 4, pp. 37-44. https://doi.org/10.20542/0131-2227-2020-64-4-37-44



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 7
Topical Themes of the Issue:
  • The Supporting Structure of Global Security
  • Institutional Features of the Fourth Energy Transition
  • The Evolution of Modern German Christian Democracy
  • The Monarchies of the Persian Gulf and Central Asia
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.