ISSN 2409-7616

Aroshidze A.A.

CRITERIAL CODE OF SUSTAINABLE ENTERPRISE DEVELOPMENT

DOI: http://doi.org/10.15350/2409-7616.2022.2.12

UDC 338.2

Aroshidze A.A.1 (Novosibirsk, Russian Federation) – E-mail: aroshidzealyona@gmail.com            

1Siberian Transport University

Abstract. In the modern world, the integration of the principles of sustainable development is becoming an essential condition for the successful operation of enterprises. Various business models, means, and tools are constantly being developed for this. However, a natural question arises related to the assessment of sustainable development, based on which the results obtained could be clearly and most usefully interpreted. The article proposes a methodology that allows one to assess not only the constituent components of sustainable development but also according to three criteria, forming a certain code. The criterion of reliability reflects the finding of indicators of sustainable development within safe boundaries, the criterion of dynamism determines positive trends in their change, and the criterion of acceptability finds violations in the rate of change. Such a criteria code helps to identify real achievements and problems in the management activities of an enterprise focused on sustainable development. The practical significance of the developed methodology is proved by its application at industrial enterprises in the field of clothing production, which made it possible to identify their strengths and weaknesses in all components and criteria. In particular, it has been established that changes in indicators according to the criteria of dynamism and acceptability serve as indicators of subsequent or possible changes in the indicator of stability (instability) of determinants according to the criterion of reliability. In other words, if the enterprise is still in the same level zone according to the reliability criterion, thanks to the assessment by two additional criteria, it is possible to identify the prerequisites for an upward transition and, more importantly, a downward transition. Consequently, the criteria code reflects as much as possible the real picture of the activities of enterprises from the standpoint of sustainable development. In addition, thanks to the application of this methodology, a further direction of research has been identified, associated with the assessment of the balance of the sustainable development components. 

Keywords: sustainable development, determinants, criteria, assessment, RDA code.

References:

  1. Appelbaum D., Kogan A., Vasarhelyi M. Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 2017, vol. 25, pp. 29-44. DOI: 10.1016/j.accinf.2017.03.003
  2. Aroshidze A.A. Features of the interpretation of sustainable development of enterprises: key approaches and patterns of changing priorities for the period 1990-2020. Financial business, 2021, no 10, pp. 3-7. (In Russian). URL: https://elibrary.ru/item.asp?id=47166889
  3. Boscoianu M., Prelipcean G., Lupan M. Innovation enterprise as a vehicle for sustainable development – A general framework for the design of typical strategies based on enterprise systems engineering, dynamic capabilities, and option thinking. Journal of Cleaner Production, 2018, vol. 172, pp. 3498-3507. URL: https://elibrary.ru/item.asp?id=47166889
  4. Bunclark L., Barcellos-Paula L. Sustainability reporting for sustainable supply chain management in Peru. Sustainable Production and Consumption, 2021,vol. 27, pp. 1458-1472. DOI:  10.1016/j.spc.2021.03.013
  5. Chavarria-Barrientos D., Chen, D., Funes, R. An Enterprise Operating System for the Sensing, Smart, and Sustainable Enterprise. IFAC-PapersOnLine, 2017, vol. 50, pp. 13052-13058. DOI: 10.1016/j.ifacol.2017.08.2004
  6. Cochran D.S., Rauch E.  Sustainable Enterprise Design 4.0: Addressing Industry 4.0 Technologies from the Perspective of Sustainability. Procedia Manufacturing, 2020, vol. 51, pp. 1237-1244. DOI: 10.1016/j.promfg.2020.10.173
  7. Daxhammer K., Luckert M., Doerr M. Development of a Strategic Business Model Framework for Multi-Sided Platforms to Ensure Sustainable Innovation in Small and Medium-Sized Enterprises. Procedia Manufacturing, 2019, vol. 39, pp. 1354-1362. DOI:   10.1016/j.promfg.2020.01.322
  8. De D., Chowdhury S., Dey P.K. Impact of Lean and Sustainability Oriented Innovation on Sustainability Performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based framework. International Journal of Production Economics, 2020, vol. 219, pp. 416-430. DOI: 10.1016/j.ijpe.2018.07.003
  9. França C.L., Broman G., Robèrt K-H. An approach to business model innovation and design for strategic sustainable development. Journal of Cleaner Production, 2017, vol. 140, pp. 155-166. DOI: 10.1016/j.jclepro.2016.06.124
  10. Franco S. The influence of the external and internal environments of multinational enterprises on the sustainability commitment of their subsidiaries: A cluster analysis. Journal of Cleaner Production, 2021, vol. 297. 126654. DOI: 10.1016/j.jclepro.2021.126654
  11. Goralski M.A., Tan T.K. Artificial intelligence and sustainable development. The International Journal of Management Education, 2020, vol. 18. 100330. DOI: 10.1016/j.ijme.2019.100330
  12. Govindan K., Shankar K.M., Kannan D. Achieving sustainable development goals through identifying and analyzing barriers to industrial sharing economy: A framework development. International Journal of Production Economics, 2020, vol. 227. 107575. DOI:    10.1016/j.ijpe.2019.107575
  13. Ike M., Donovan J.D., Topple C. A holistic perspective on corporate sustainability from a management viewpoint: Evidence from Japanese manufacturing multinational enterprises.  Journal of Cleaner Production, 2019, vol. 216, pp. 139-151. DOI:  10.1016/j.jclepro.2019.01.151
  14. Jabbour A.B.L., Ndubisi N.O., Seles B.M. Sustainable development in Asian manufacturing SMEs: Progress and directions. International Journal of Production Economics, 2020. vol. 225. 107567. DOI: 10.1016/j.ijpe.2019.107567
  15. Khanzode A.G., Sarma P.R.S., Mangla S.K. Modeling the Industry 4.0 adoption for sustainable production in Micro, Small & Medium Enterprises. Journal of Cleaner Production, 2021, vol. 279. 123489. DOI: 10.1016/j.jclepro.2020.123489
  16. Naderi M., Ares E., Peláez G. Sustainable Operations Management for Industry 4.0 and its Social Return. IFAC-PapersOnLine, 2019, vol. 52, pp. 457-462. DOI:   10.1016/j.ifacol.2019.11.102
  17. Nekhoroshkov V., Aroshidze A. Sustainable development of agricultural enterprises: economic component. IOP Conference Series: Earth and Environmental Science, 2019, vol. 403. 012228. DOI: 10.1088/1755-1315/403/1/012228
  18. Nizam E., Ng, A., Dewandaru G. The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector. J. Multinatl. Financial Manag, 2019, vol. 49, pp. 35-53. DOI: 10.1016/j.mulfin.2019.01.002
  19. Nylund P.A., Brem A., Agarwal N. Innovation ecosystems for meeting sustainable development goals: The evolving roles of multinational enterprises. Journal of Cleaner Production, 2021, vol. 281. 125329. DOI: 10.1016/j.jclepro.2020.125329
  20. Schoneveld G.C. Sustainable business models for inclusive growth: Towards a conceptual foundation of inclusive business. Journal of Cleaner Production, 2020, vol. 277. 124062. DOI: 10.1016/j.jclepro.2020.124062
  21. Shad M.K., Lai F-W., Fatt C.L. Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework.  Journal of Cleaner Production, 2019, vol. 208, pp. 415-425. DOI: 10.1016/j.jclepro.2020.125329
  22. Singh S., Olugu E.U., Musa S.N. Development of Sustainable Manufacturing Performance Evaluation Expert System for Small and Medium Enterprises. Procedia CIRP, 2016, vol. 40, pp. 608-613. DOI: 10.1016/j.procir.2016.01.142
  23. Trianni A., Cagno E., Neri A. Measuring industrial sustainability performance: Empirical evidence from Italian and German manufacturing small and medium enterprises. Journal of Cleaner Production, 2019, vol. 229, pp. 1355-1376. DOI: 10.1016/j.jclepro.2019.05.076
  24. Wang C. Monopoly with corporate social responsibility, product differentiation, and environmental R&D: Implications for economic, environmental, and social sustainability. Journal of Cleaner Production, 2021, vol. 287. 125433. DOI: 10.1016/j.jclepro.2020.125433
  25. Yáñez-Araque B., Hernández J.P.S-I., Gutiérrez-Broncano S. Corporate social responsibility in micro-, small- and medium-sized enterprises: Multigroup analysis of family vs. nonfamily firms. Journal of Business Research, 2021, vol. 124, pp. 581-592. DOI:   10.1016/j.jbusres.2020.10.023
  26. Zioło M., Bąk I., Cheba K. Sustainable business models of enterprises – actual and declared activities for ensuring corporate sustainability. Procedia Computer Science, 2020, vol. 176, pp. 1497-1506. DOI: 10.1016/j.procs.2020.09.160

For citation:

Aroshidze A.A. Criterial code of sustainable enterprise development. CITISE, 2022, no. 1, pp.135-146. DOI: http://doi.org/10.15350/2409-7616.2022.2.12