CONCEPTUAL APPROACHES TO DETERMINING SUSTAINABLE DEVELOPMENT OF ECONOMIC ENTITIES

Abstract

The conceptual approaches to defining sustainable development of business entities in the context of the transformation of economic systems, increased global competition and growing public demands for business responsibility are investigated. The evolution of scientific views on sustainable development from the macroeconomic paradigm of balanced growth to the microeconomic level of the enterprise as a key entity implementing the principles of sustainability is summarised. Particular attention is paid to the shift from understanding sustainable development exclusively as a global environmental and socio-economic strategy to its interpretation as a managerial and strategic category at the level of individual firms. The main theoretical models are analysed, in particular the concept of the “three components” (economic, social, and environmental), stakeholder theory, the approach to creating shared value, institutional principles of enterprise functioning, and principles of corporate social responsibility. It is shown that each of these approaches reflects a specific dimension of sustainability, focusing either on financial stability, social legitimacy, environmental responsibility, or institutional embeddedness of business activity. At the same time, their separate application do not ensure a comprehensive understanding of sustainable development as a systemic phenomenon. It is established that, in modern scientific discourse, there is no unified interpretation of the concept of sustainable development for business entities, which leads to methodological fragmentation in approaches to its assessment and management. Existing definitions often emphasise individual aspects of sustainability without integrating them into a coherent framework suitable for practical implementation within strategic management systems. This leads to inconsistencies in the formation of performance indicators, reporting standards, and evaluation criteria for sustainable business practices. The expediency of forming an integrative conceptual model that combines economic efficiency,  social responsibility and environmental balance within the framework of strategic enterprise management is substantiated. Such a model should ensure the harmonisation of short-term economic goals with long-term societal and environmental priorities, taking into account institutional conditions and stakeholder expectations. It has been proven that implementing sustainable development principles in business entities’ activities is a prerequisite for long-term competitiveness, increased investment attractiveness, strengthened reputational capital, and economic resilience in an unstable and dynamic external environment.