Advances on Projection of a Model for a Corporate Index of Sustainable Performance
Author:
Associate Prof. Camelia Iuliana LUNGU, Ph. D.
JEL:
M40, M14, Q56
DOI:
Keywords:
sustainable performance, sustainable development, key performance indicators, corporate reporting
Abstract:
The expanding recognition of human impact on the environment has led to radical repositioning of traditional economic assumptions. Recent developments in behavioural and experimental economics are critical for environmental policies. Recent research findings show corporations and governments initiatives to use economic analysis models related to social and environmental policies. Sustainability indicators tend to focus on a number of approaches important enough to allow complex decisions on both natural and managed ecosystems. They refer to both environmental indicators developed, validated and used to track changes on the quality and condition of air, water, earth and ecological systems and social indicators that focus on human health, social and economic conditions.\r\nThis paper focuses on the requirements included in Europe 2020 Strategy which introduces in debate interdependent priorities, such as: increasing knowledge, creating an inclusive society and building a green economy that is internationally competitive. Environmental and social sustainability indicators reported by EU countries are analyzed. A model for a corporative index of sustainable performance is projected. Finally, debates on the components of this index are conducted by reference to the practice of Romanian companies. The objective of the research is supported by the requirement addressed by more and more researchers and companies, to develop a single index, as a unified social and environmental performance tool. The usefulness of such an index resides both in ensuring synthetic and understandable information, as well as in increasing the confidence of financial statements’ users, with direct impact on the audit risk setting. The impact on financial statements’ users and auditors validates the research and assures its high feasibility.\r\n\r\n