Adaptive management reporting system in inter-organizational relations of agricultural enterprises according to ESG principles

Liudmila I. Khoruzhy, Yuriy N. Katkov, Anastasiya A. Romanova, Ekaterina A. Katkova, Meri K. Dzhikiya

Article ID: 1649
Vol 6, Issue 2, 2022, Article identifier:1649

VIEWS - 159 (Abstract) 1156 (PDF)

Abstract


Due to the lack of clear regulation of management accounting at the state level in Russia, the authors conducted a study based on an analysis of information sources, an expert survey on their reliability, and a case method, which resulted in a reporting form compiled for the production process of an agro-industrial enterprise (grain products) as part of inter-organizational company cooperation. The developed management reporting system (composed of eight consecutive stages: standard reports, specialized reports, itemized query reports, notification reports, statistical reports, prognostic reports, modeling results reports, and process optimization reports), on one hand, allows solving a set of tasks to increase the competitiveness of Russian agro-industrial enterprises within the framework of inter-organizational management accounting. On the other hand, the introduction of ESG principles into the management reporting system (calculation of the environmental (E) index, which assesses the company’s impact on the natural ecosystem and covers emissions and efficient use of natural resources in the agricultural production process) increases the level of control and minimizes the risks of an unfair approach of individual partners to environmental issues.


Keywords


agro-industrial complex; environmental, social, and governance (ESG); digital economy; simulation modeling

Full Text:

PDF


References


Alkaraan F (2017). “Corporate governance in Ireland: New challenges and opportunities”. In: Kostyuk A, Braendle U and Capizzi V (Eds.), Corporate Governance: New Challenges and Opportunities, pp. 111–123. Virtus Interpress.

_____ (2020). “Strategic investment decision making practices in large UK manufacturing companies: A role for emergent analysis techniques?” Meditari Accountancy Research, 28(4): 633–653. https://doi.org/10.1108/MEDAR-05-2019-0484

_____ (2021). “Editorial: Recent debates on corporate governance and sustainability”. Corporate Governance and Sustainability Review, 5(3): 4–6. https://doi.org/10.22495/cgsrv5i3editorial

_____ (2022). “Editorial: Current issues in corporate governance and sustainability”. Corporate Governance and Sustainability Review, 6(2): 4–6. https://doi.org/10.22495/cgsrv6i2editorial

Alkaraan F and Northcott D (2006). “Strategic capital investment decision-making: A role for emergent analysis tools?: A study of practice in large UK manufacturing companies”. The British Accounting Review, 38(2): 149–173. https://doi.org/10.1016/j.bar.2005.10.003

_____ (2013). “Strategic investment decision-making processes: The influence of contextual factors”. Meditari Accountancy Research, 21(2): 117–143. https://doi.org/10.1108/MEDAR-09-2012-0031

Amel-Zadeh A and Serafeim G (2018). “Why and how investors use ESG information: Evidence from a global survey”. Financial Analysts Journal, 74(3): 87–103. https://doi.org/10.2139/ssrn.2925310

Auganbai A, Kalymbek B, Shulanbekova GK, et al. (2019). “Protection of objects of historical and cultural heritage: Legal problems and the application of information technologies”. Environmental Policy and Law, 49(6): 379–388. https://doi.org/10.3233/EPL-190191

Baxter R, Bedard JC, Hoitash R and Yezegel A (2013). “Enterprise risk management program quality: Determinants, value relevance, and the financial crisis”. Contemporary Accounting Research, 30(4): 1264–1295 https://doi.org/10.1111/j.1911-3846.2012.01194.x

Calandro J Jr (2016). “Impact investment and risk management: Overview and approach”. ACRN Oxford Journal of Finance and Risk Perspectives, 5(3): 46–60.

Christensen HB, Hail L and Leuz C (2019). Adoption of CSR and Sustainability Reporting: Economic Analysis and Literature Review (Finance Working Paper No. 623/2019). European Corporate Governance Institute.

Colfer CJP, Andriamampandry E, Asaha S, et al. (2011). “Participatory action research for catalyzing adaptive management: Analysis of a ‘fits and starts’ process”. Journal of Environmental Science and Management, 5(1): 28–43.

Cong NV and Khanh HC (2022). “Comparison environmental conditions and economic efficiency between organic and non-organic integrated mangrove—Shrimp farming systems in Ca Mau Province, Vietnam”. Journal of Ecological Engineering, 23(5): 130–136. https://doi.org/10.12911/22998993/147319

Denzin NK (1970). The Research Act: A Theoretical Introduction to Sociological Methods. Aldine Pub.

Fadeeva OP and Nefedkin VI (2021). “Agrarian land use in Russia under digitalization conditions: Case study of Altai Krai”. Regional Research of Russia, 11(3): 387–395. https://doi.org/10.1134/S2079970521030047

Food and Agriculture Organization [FAO] (2022). Crop Prospects and Food Situation (Quarterly Global Report No. 1). Food and Agriculture Organization. https://doi.org/10.4060/cb8893en

Ford D and Mouzas S (2013). “The theory and practice of business networking”. Industrial Marketing Management, 42(3): 433–442. https://doi.org/10.1016/j.indmarman.2013.02.012

Formentini M, Secondi L, Ruini L, et al. (2022). “Enablers and barriers to circular supply chain management: A decision-support tool in soft wheat bread production”. Journal of Enterprise Information Management, 35(3): 796–816. https://doi.org/10.1108/JEIM-02-2021-0069

Friede G, Busch T and Bassen A (2015). “ESG and financial performance: Aggregated evidence from more than 2000 empirical studies”. Journal of Sustainable Finance & Investment, 5(4): 210–233. https://doi.org/10.1080/20430795.2015.1118917

Ghosh R and Wolf S (2021). “Hybrid governance and performances of environmental accounting”. Journal of Environmental Management, 284: Art. 111995. https://doi.org/10.1016/j.jenvman.2021.111995

Gibson R, Krueger P and Schmidt PS (2019). ESG Rating Disagreement and Stock Returns (Finance Working Paper No. 651/2020). European Corporate Governance Institute. https://doi.org/10.2139/ssrn.3433728

Henneberg S, Mouzas S and Naudе P (2006). “Network pictures: Concepts and representations”. European Journal of Marketing, 40(3–4): 408–429. https://doi.org/10.1108/03090560610648129

Hingley MK (2005). “Power to all our friends? Living with imbalance in supplier-retailer relationships?” Industrial Marketing Management, 34(8): 848–858. https://doi.org/10.1016/j.indmarman.2005.03.008

Hong H, Li FW and Xu J (2019). “Climate risks and market efficiency”. Journal of Econometrics, 208(1): 265–281. https://doi.org/10.1016/j.jeconom.2018.09.015

Horngren CT, Harrison WT and Oliver MS (2012). Financial & Managerial Accounting. Pearson Prentice Hall.

Hutchings G and Deegan C (2022). “The development and application of a decision-useful measure of environmental best practice for the mining industry”. Accounting, Auditing & Accountability Journal, 35(4): 1154–1181. https://doi.org/10.1108/AAAJ-11-2020-5014

Jonsdottir B, Sigurjonsson TO, Johannsdottir L and Wendt S (2022). “Barriers to using ESG data for investment decisions”. Sustainability, 14(9): Art. 5157. https://doi.org/10.3390/su14095157

Khan MA (2022). “ESG disclosure and firm performance: A bibliometric and meta analysis”. Research in International Business and Finance, 61: Art. 101668. https://doi.org/10.1016/j.ribaf.2022.101668

Khoruzhy LI, Bautin VM, Katkov YN, et al. (2018). “Adaptive internal controls system for the accounting and analytics in the agrarian organizations”. Revista Espacios, 39(47): Art. 19.

Khoruzhy LI, Gupalova TN and Katkov YN (2019). “Putting in place a system of integrated reporting in organizations”. International Journal of Innovative Technology and Exploring Engineering, 8(7): 748–755.

Kiss LB (2020). “The importance of business partnership on the World Wide Web”. Business Ethics and Leadership, 4(1): 68–79. https://doi.org/10.21272/bel.4(1).68-79.2020

Kotsantonis S and Serafeim G (2019). “Four things no one will tell you about ESG data”. Journal of Applied Corporate Finance, 31(2): 50–58. https://doi.org/10.1111/jacf.12346

Kristijono NH, Pramono R, Supratikno H, et al. (2022). “Ethical decisions of leaders in sustainable investing to promote sustainable development”. International Journal of Sustainable Development and Planning, 17(1): 13–28. https://doi.org/10.18280/ijsdp.170102

Kurmanova AK (2012). “Metodologicheskie podkhody k organizatsii upravlencheskogo ucheta [Methodological approaches to the organization of management accounting]”. Vestnik of the Orenburg State Pedagogical University, 2: 206–211.

La Notte A (2022). “Ecologically intermediate and economically final: The role of the ecosystem services framework in measuring sustainability in agri-food systems”. Land, 11(1): Art. 84. https://doi.org/10.3390/land11010084

Lin H-F (2013). “The effect of knowledge management capabilities and partnership attributes on the stage-based e-business diffusion”. Internet Research, 23(4): 439–464. https://doi.org/10.1108/IntR-11-2012-0233

Lutfi A, Al-Khasawneh AL, Almaiah MA, et al. (2022). “Business sustainability of small and medium enterprises during the COVID-19 pandemic: The role of AIS implementation”. Sustainability, 14(9): Art. 5362. https://doi.org/10.3390/su14095362

Mertens DM (2007). “Transformative paradigm mixed methods and social justice”. Journal of Mixed Methods Research, 1(3): 212–225. https://doi.org/10.1177/1558689807302811

Nishimwe G, Rugema DM, Uwera C, et al. (2020). “Natural capital accounting for land in Rwanda”. Sustainability, 12(12): Art. 5070. https://www.mdpi.com/2071-1050/12/12/5070

Nugmanov AB, Tulayev YV, Tulkubayeva SA and Somova SV (2018). “Developing a system of organic farming technologies to obtain environmentally clean agricultural products (organic food) in the steppe zone of the Kostanai Region”. OnLine Journal of Biological Sciences, 18(2): 130–137. https://doi.org/10.3844/ojbsci.2018.130.137

Park SH and Park JO (1998). “Simultaneous optimization of multiple responses using a weighted desirability function”. In: Abraham B (Ed.), Quality Improvement Through Statistical Methods, pp. 299–311. Birkhäuser Boston. https://doi.org/10.1007/978-1-4612-1776-3_24

Pedersen LH, Fitzgibbons S and Pomorski L (2021). “Responsible investing: The ESG-efficient frontier”. Journal of Financial Economics, 142(2): 572–597. https://doi.org/10.1016/j.jfineco.2020.11.001

Qrunfleh S and Tarafdar M (2013). “Lean and agile supply chain strategies and supply chain responsiveness: The role of strategic supplier partnership and postponement”. Supply Chain Management, 18(6): 571–582. https://doi.org/10.1108/SCM-01-2013-0015

Ramos C and Ford ID (2011). “Network pictures as a research device: Developing a tool to capture actors’ perceptions in organizational networks”. Industrial Marketing Management, 40(3): 447–464. https://doi.org/10.1016/j.indmarman.2010.07.001

Reidsma P, Wolf J, Kanellopoulos A, et al. (2015). “Climate change impact and adaptation research requires integrated assessment and farming systems analysis: A case study in the Netherlands”. Environmental Research Letters, 10(4): Art. 045004. https://doi.org//10.1088/1748-9326/10/4/045004

Sayer J and Wells MP (2004). “The pathology of projects”. In: McShane T and Wells MP (Eds.), Getting Biodiversity Projects to Work: Towards Better Conservation and Development, pp. 35–48. Columbia University Press.

Shanks G and Bekmamedova N (2018). “Case study research in information systems”. In: Williamson K and Johanson G (Eds.), Research Methods: Information, Systems, and Contexts (2nd Ed.), pp. 193–208. Chanoos Publishing. https://doi.org/10.1016/B978-0-08-102220-7.00007-8

Shcherbak V, Ganushchak-Yefimenko L, Nifatova O, et al. (2020). “Use of key indicators to monitor sustainable development of rural areas”. Global Journal of Environmental Science and Management, 6(2): 175–190. https://doi.org/10.22034/gjesm.2020.02.04

Smith CB (2011). “Adaptive management on the central Platte River—Science, engineering, and decision analysis to assist in the recovery of four species”. Journal of Environmental Management, 92(5): 1414–1419. https://doi.org/10.1016/j.jenvman.2010.10.013

Starks LT, Venkat P and Zhu Q (2018). Corporate ESG Profiles and Investor Horizons (Working Paper). https://doi.org/10.2139/ssrn.3049943

Stock PV, Forney J, Emery SB and Wittman H (2014). “Neoliberal natures on the farm: Farmer autonomy and cooperation in comparative perspective”. Journal of Rural Studies, 36: 411–422. https://doi.org/10.1016/j.jrurstud.2014.06.001

Suleimenova N, Kalykov D, Makhamedova B, et al. (2021). “A resource conservation technology for adapting argroecosystems to the new natural conditions of a warming climate in South-Eastern Kazakhstan”. OnLine Journal of Biological Sciences, 21(2): 376–387. https://doi.org/10.3844/ojbsci.2021.376.387

Teh BH, Abdul Rahman AA, Ong TS, et al. (2022). “Interrelationship between three dimensions of sustainable performance measurement among Malaysian manufacturing companies”. Journal of Environmental Management and Tourism, 13(1): 75–98.

Van Ittersum MK, Ewert F, Heckelei T, et al. (2009). “Integrated assessment of agricultural systems—A component-based framework for the European Union (SEAMLESS)”. Agricultural Systems, 96(1–3): 150–165. https://doi.org/10.1016/j.agsy.2007.07.009

Velázquez A, Cué-Bär EM, Larrazabal A, et al. (2009). “Building participatory landscape-based conservation alternatives: A case study of Michoacán, Mexico”. Applied Geography, 29(4): 513–526. https://doi.org/10.1016/j.apgeog.2008.11.001

Zartha JW, Álvarez VT, Oviedo JC and Orozco GL (2019). “Propuesta de árbol temático y tecnológico sobre la ingeniería agroindustrial como herramienta para un estudio de prospectiva [Proposal of a thematic and technological tree on agroindustrial engineering as a tool for a prospective study]”. Formación Universitaria, 12(4): 13–26. https://doi.org/10.4067/S0718-50062019000400013




DOI: http://dx.doi.org/10.24294/jipd.v6i2.1649

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Liudmila I. Khoruzhy, Yuriy N. Katkov, Anastasiya A. Romanova, Ekaterina A. Katkova, Mari K. Dzhikiya

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
This site is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.