The Sustainability Accounting and Reporting in Business Management

Abstract

The article is devoted to the characteristics of the sustainability accounting and reporting in business management. This topic has been increasingly vital for Ukraine in view of the importance of the environmental and social indicators in the business management context. The stronger than ever significance is attached to issues related with the submission of non-financial reporting by Ukrainian business enterprises, because, in spite of the large research capacity in this field, Ukraine has not elaborated a standard and holistic approach to the integration of non-financial indicators in the reporting. A great many aspects pertaining to the social and environmental monitoring still remain subject to debate, whereas the lack of clear practical guidance and legally fixed norms complicates the obtaining of reliable data required for effective decision-making in business enterprise sector. Research methods: morphological analysis; logical generalization; structural analysis; comparisons; scientific abstraction. The social and environmental accounting is interpreted as a pivotal component in the sustainability accounting system, creating the information basis for effective decision-making in business enterprise sector, and its gradual evolution transforms the accounting into a powerful strategic management tool. It is underlined that the advanced approach to the sustainability accounting aims to combine financial and non-financial indicators, thus enabling for a more comprehensive performance analysis of business enterprises and their social and environmental impact. This approach helps enhance credibility to business and bolster its competitive advantages. An extensive analysis of the accounting practices at two Ukrainian business entities operating in parcel and mail delivery service, JSC “Ukrposhta” and Nova Post LLC revealed remarkable differences in their approaches to compilation of reporting. While “Ukrposhta” strictly observes the current regulatory requirements, Nova Post has been gradually introducing and integrating international standards within the financial and management reporting system. Yet, the two companies emphasize and confirm the ever more importance of ESG indicators that are increasingly viewed as an integral component of the current system of accounting and strategic business management. It is concluded that both companies are guided by up-to-date global trends and striving to enhance the competitiveness on the national and international market.