Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Assessment of Environmentally-Oriented Stakeholders Coherent Security as a Prerequisite of Sustainable Enterprise Development and the Role of Non-Financial Statements in that Regard

Author(s): Mishchuk Ievgeniia, Nusinov Volodymyr, Polischuk Serhii, Kutova Nataliia and Stolietova Iryna

The article aims to assess coherent security of environmentally-oriented stakeholders as a prerequisite of sustainable enterprise development and determine the role of non-financial statements in that regard. Cost minimization is considered to be one of the directions of economic growth of an enterprise. However, environmental expenditures are an exception. It is substantiated that financing environmental actions is of greater interest for individual groups of stakeholders than for the enterprise as an economic entity. There are suggested methodological approaches to assessing impacts of outstanding environmental expenditures of the enterprise on coherent (dependent on its activity) security of environmentally-oriented stakeholders. These expenditures are the difference between the amount of financing required to enhance the environmental conditions at the enterprise location and the actual amount financed for environmental programmes. Ukrainian mining and concentration enterprises-polluters do not prepare non-financial statements and therefore they do not provide complete information on amounts of environmental expenditures. As a result, impacts of their activities on the environment cannot be adequately determined. It is suggested to enhance the current form of “Management report” through disclosing information on outstanding environmental expenditures and specific emissions of pollutants. Data of Ukrainian mining enterprises has enabled testing the suggested methodological approaches. Implementation of the suggested methodological approaches into practices of industrial enterprises will extend their managerial analytics with data on impacts of environmentally-oriented stakeholders’ coherent security. The above is important for understanding possible pressure from this group of stakeholders and hindrance to economic development of enterprises in the medium and long term.

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