ESPEG model and corporate governance system for ensuring sustainable development of enterprises

Abstract

In 2023, there is a pressing requirement to promote enterprise growth and guarantee enduring sustainability, therefore, it is timely to craft an effective model for sustainable progress and establish a corporate governance framework. The aim of the research was to develop innovative approaches to ensure the sustainable development of enterprises through the development of a sustainable development model and corporate governance system. The essence of the concepts of “corporate governance” and “corporate management” is also defined in the article using the categorical method of two-level triadic decoding. The research is based on the principles of sustainable development, systemic and holistic approaches. The article proposes a four-component model of the enterprise sustainable development concept (ESPEG model), which reflects the hierarchical arrangement of the environmental (E), socio-political (SP), economic (E), and governance (G) spheres of the enterprise. This model identifies the directions for the application of management tools to influence specific interacting spheres. The result of the work is an improved model of enterprise sustainable development that enables the structuring of the key components of the concept to ensure effective management of the enterprise based on the balance of its key elements. The model of corporate governance system has been improved, incorporatingthe paradigm of sustainable development and considering the necessity of integrating various management subsystems within the company. The proposed corporate governance system identifies the control loop of corporate management and defines the governing and controlled subsystems along with their components. It has been established that a corporate governance system built on the principles of sustainable development will contribute to achieving positive results in the company’s development, ensuring the sustainability of its social, environmental, and economic aspects. The implementation of the proposed corporate governance system will facilitate further research into its essence and application specifics in modern companies.