Karen Asatryan


DOI: https://doi.org/10.59982/18294359-23.14-kg-06

Traditional approaches to capital assessment in organizations come down to the extent to which the capital used contributes to the formation of profits and business expansion. In other words, capital is evaluated from the point of view of financial and economic interests of business. However, nowadays, when business results are considered not only from the point of view of private economic interests, but also from the point of view of public interests, the approaches to capital evaluation are also changing. In particular, the latter are most clearly manifested in the concept of responsible investment implementation, when the public expects from investors not only net financial and economic benefits, but also additional results contributing to sustainable development, which are formed in the field of “environmental protection — social capital — effective management” (ESG).

The current process of responsible investment mainly takes place in the ESG sector, which in turn requires new qualities of capital formation in organizations. To this end, new generation accounting standards (IFRS-S) require organizations to interpret the possibilities of managed capital contributing to future-oriented sustainable development. And this demand, in turn, creates new challenges among investors, who, according to the logic of the ESG sector, bear public responsibility in the directions of ensuring environmental protection, improving the social atmosphere of partner trust, as well as motivating effective management functions. In the article, advances are made in the qualitative assessment of the capital of organizations, taking into account the objectives of responsible investments with ESG approaches and the requirements of sustainable business development.

KeywordsSustainable development, responsible investment, social capital, human capital, environmental risks, effective management, capital appreciation.

PAGES : 62-68