IDEAS home Printed from https://ideas.repec.org/a/aid/journl/v4y2021i3p7-19.html
   My bibliography  Save this article

The Strategies of Internalizing the Negative Externalities in the Company's Sustainable Development

Author

Listed:
  • Dmytro Kozlov

    (Sumy State University, Sumy, Ukraine)

Abstract

The study focuses on externalities which play the important role in sustainable development. They indicate the impact of the company’s activity on the third persons. On the basis of findings, the externalities from the company’s financial reports are monetarized. The externalities exerting influence on the profit or loss as well as on the total balance of the company are analysed. Positive and negative externalities are identified in order to internalize the negative externalities with the help of definite strategies of sustainable development. It is emphasized that the long-term action plans to ensure competitiveness, environmental protection and social legitimacy help to adapt to expected market, environmental and social developments. The study discusses current strategies: defensive (reactive), offensive that are viewed from the economic, environmental and social perspective. It is investigated that the defensive strategies are limited to the implementation of relevant laws or agreements in order to avoid negative consequences for the legislator. On the other hand, offensive, inward-looking strategies are aimed at aligning the company’s structures (organizations) and systems (environmental management systems) with the requirements of sustainable development, motivation and qualification of employees for sustainable development. The environmental sustainable development strategies are focused on a variety of ecological aspects. The emergence of economic, environmental and social risks and opportunities in machine-building company with their potential solutions is underlined. As the matter of fact, using the right strategy, the company can easily go through the internalization of negative externality to exert more substantial impact on the society, environment and the economy.

Suggested Citation

  • Dmytro Kozlov, 2021. "The Strategies of Internalizing the Negative Externalities in the Company's Sustainable Development," Virtual Economics, The London Academy of Science and Business, vol. 4(3), pages 7-19, July.
    • Handle: RePEc:aid:journl:v:4:y:2021:i:3:p:7-19
    DOI: 10.34021/ve.2021.04.03(1)
    as

    Download full text from publisher

    File URL: https://virtual-economics.eu/index.php/VE/article/download/113/86
    Download Restriction: no
    File URL: https://libkey.io/10.34021/ve.2021.04.03(1)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. J. Maurice Clark, 1917. "Business Acceleration and the Law of Demand: A Technical Factor in Economic Cycles," Journal of Political Economy, University of Chicago Press, vol. 25(3), pages 217-217.
    2. Common, Mick, 2011. "The relationship between externality, and its correction, and sustainability," Ecological Economics, Elsevier, vol. 70(3), pages 453-453, January.
    3. Bithas, Kostas, 2011. "Sustainability and externalities: Is the internalization of externalities a sufficient condition for sustainability?," Ecological Economics, Elsevier, vol. 70(10), pages 1703-1706, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Remig, Moritz C., 2015. "Unraveling the veil of fuzziness: A thick description of sustainability economics," Ecological Economics, Elsevier, vol. 109(C), pages 194-202.
    2. Caballero, Ricardo J., 1999. "Aggregate investment," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 12, pages 813-862, Elsevier.
    3. Matthew Rognlie & Andrei Shleifer & Alp Simsek, 2018. "Investment Hangover and the Great Recession," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(2), pages 113-153, April.
    4. Stefano Zambelli, 2015. "Dynamical coupling, the non-linear accelerator and the persistence of business cycles," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(6), pages 1607-1628.
    5. Mark J. Koetse & Henri L.F. de Groot & Raymond J.G.M. Florax, 2011. "A Meta-Regression Analysis of the Investment–Uncertainty Relationship," Chapters, in: Raymond J.G.M. Florax & Henri L.F. de Groot & Peter Mulder (ed.), Improving Energy Efficiency through Technology, chapter 7, Edward Elgar Publishing.
    6. Georgy Idrisov, 2010. "Factors of Demand for Imported Goods for Investment Purpose to Russia," Research Paper Series, Gaidar Institute for Economic Policy, issue 138P.
    7. Michaelides, Panayotis G. & Belegri-Roboli, Athena & Economakis, George & Milios, John G., 2005. "The Determinants of Investment Activity in Greece (1960-’99)," MPRA Paper 74548, University Library of Munich, Germany.
    8. Nazifi Abdullahi Darma & Muhammad Ali, 2016. "An Assessment of the Effect of Telecommunication Investment on Economic Growth in West Africa," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 5(3), pages 153-162.
    9. Anupam Das & Murshed Chowdhury, 2019. "Macroeconomic impacts of remittances in Bangladesh: The role of reverse flows," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(3), November.
    10. Strunz, Sebastian & Klauer, Bernd & Ring, Irene & Schiller, Johannes, 2014. "Between Scylla and Charybdis: On the place of economic methods and concepts within ecological economics," UFZ Discussion Papers 26/2014, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    11. Eric Kemp‐Benedict, 2020. "Convergence of actual, warranted, and natural growth rates in a Kaleckian–Harrodian‐classical model," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 851-881, November.
    12. Yusuf Abdulkarim, 2023. "A systematic review of investment indicators and economic growth in Nigeria," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    13. Momeni, Marzieh & Zakeri, Zahra & Esfandiari, Mojtaba & Behzadian, Kourosh & Zahedi, Sina & Razavi, Vahid, 2019. "Comparative analysis of agricultural water pricing between Azarbaijan Provinces in Iran and the state of California in the US: A hydro-economic approach," Agricultural Water Management, Elsevier, vol. 223(C), pages 1-1.
    14. Elliot Boateng & Mary Amponsah & Collins Annor Baah, 2017. "Complementarity Effect of Financial Development and FDI on Investment in Sub-Saharan Africa: A Panel Data Analysis," African Development Review, African Development Bank, vol. 29(2), pages 305-318, June.
    15. Guido Fioretti, 2005. "A Model of Primary and Secondary Waves in Investment Cycles," Computational Economics, Springer;Society for Computational Economics, vol. 24(4), pages 357-381, June.
    16. Karuppiah Sankarganesh & K. Rangasamy Shanmugam, 2023. "Effect of corporate income tax on investment decisions of Indian manufacturing firms," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(1), pages 156-175, January.
    17. Fioretti, Guido, 2006. "Recognising investment opportunities at the onset of recoveries," Research in Economics, Elsevier, vol. 60(2), pages 69-84, June.
    18. Borges da Silva, Eduardo & Moreno Cordeiro de Sousa, Alexandre, 2022. "Avaliação econômico-financeira de fintechs no mercado brasileiro: o caso INTER [Economic and financial evaluation of fintech in the Brazilian market: the case of INTER]," MPRA Paper 115509, University Library of Munich, Germany.
    19. Chafik, Omar, 2021. "Impôt sur les sociétés et investissement : quel lien au Maroc ?," Document de travail 2021-4, Bank Al-Maghrib, Département de la Recherche.
    20. Stefan Bojnec & Laure Latruffe, 2007. "Investment of Slovenian farms in the transition context," Post-Print hal-02285619, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aid:journl:v:4:y:2021:i:3:p:7-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aleksy Kwilinski (email available below). General contact details of provider: https://edirc.repec.org/data/akwilin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.