The system of financial mechanisms for corporate sustainable development: the concept components

Heorhiy Rohov
Doctor of Economics, Associate Professor, Head of Finance Department, Admiral Makarov National University of Shipbuilding, Mykolaiv, Ukraine, e-mail: gekoro7@gmail.com, ORCID ID: https://orcid.org/0000-0002-2487-0946

Cite this article:

Rohov, H. (2018). The system of financial mechanisms for corporate sustainable development: the concept components. Ed.: M. Zveryakov (ed.-in-ch.) and others [Systema finansovykh mekhanizmiv korporatyvnoho staloho rozvytku: skladovi kontseptsii; za red.: М. I. Zvieriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3 (67), pp. 222–229.

Abstract

The problems, which associated with the sustainable finance formation are investigates in the article. It is proved that corporate sustainable development is possible only in the functioning conditions of the financial mechanisms that ensure it. Corporate development financial mechanisms in Ukraine, as well as in most emergent markets, are not able to ensure its balance in economic, social and environmental dimensions. To solve this problem, the formation and functioning concept of financial mechanisms for corporate sustainable development system, which structured both by type of mechanisms (budget, tax, investment, credit and insurance), and by interacting subjects of their formation and using, is proposed. It is substantiated that reforming a separate financial mechanism cannot be effective if it does not cause a chain reaction of the financial system interacting subjects. The financial mechanisms interconnections are not formed directly under the influence of methods, levers and instruments of one mechanism on another, but are mediated by the institutional environment reaction. The preconditions and main stages of the concept implementation, the principles, structure, functions, genesis, formation methods and functioning method of the financial mechanisms system are defines. The concept implementation will provide the multiplicative effects of each mechanism functioning and form special attribute of their system integration into a common structural and functional wholeness – creating the conditions under which a corporate development balanced in economic, environmental and social dimensions becomes the optimal way to achieve an enterprise’s strategic corporate financial goals. Prospects for further research, which related with the financial mechanisms for corporate development transformation, are outlined.

Keywords

financial mechanism; corporate sustainable development; corporate sustainability; sustainable finance; corporate social and ecological standards; stakeholders.

JEL classification: G320; O160; DOI: https://doi.org/10.33987/vsed.3(67).2018.222-229

UD classification: 336.02; 658.15

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