Contemporary Issues in Business and Financial Management in Eastern Europe: Volume 100

This chapter presents the development prospects of environmentally safe standards in the Russian Federation. It also addresses the imbalance between the natural, socio-economic, and scientific substantiation of green economy development.

The main idea of this chapter is based on the necessity of technological modernization, which would facilitate the reduction of environmentally unfriendly production methods, the decrease in natural resources depletion, and the increase in economy competitiveness by reducing the dependence on carbon energy.

The authors substantiate reasons and effective solutions for a green economy aimed at realization, implementation, and successful exploitation of innovation in the alternative energy production space.

This chapter stands for justification of growing demand for supporting new theoretical and methodological approaches in development of an actual green economy’s financial framework taking into consideration modern growing risks in the ecological, economic, social, and geopolitical environments. A notable increase in environmental expenditures of both national economies and international financial institutions is determined by the global state of the economy. The climate change has been caused by escalating the energy supply struggle, the nature exhaustion, and the need for providing balance to the market stating green economy regulators. The main aim of this chapter is to study the trends and the key state green finance regulation points. The research goal could be achieved through highlighting the nature of green finance and its framework; studying the concept of green finance and innovative financial tools’ development, providing green economy’s development; and spotting trends and imperatives of regional regulation of green finance. This chapter highlights the necessity for implementing complex systemic and methodologic approaches in making the green finance framework, summarizing leading practices in green funding and green economy’s funds raising, considering limits in green finance tools’ utilization in current conditions, strengthening the power of both federal and regional authorities in solving financial problems of energy saving, and extending the practices of companies and institutions’ green financial tools’ utilization. The necessity for a green sustainable development across the globe has driven this research to use different types of instruments to point out the benefits of such a development. In addition, green finance state regulation tools have been proposed.

The development of the digital economy in the context of modern financial globalization is becoming an issue of national security and independence of a country. Promotion of the digital economy in the financial sector is a high-priority task for the short-term perspective. Nicholas Negroponte, an American scientist, first used the concept of “digital economy” in 1995. Since then, this concept has started spreading rapidly with the help of the Internet and has enhanced exchange and storage of information, complex calculations, and computer modeling of engineering facilities.

In the new economy, digital platforms are the most open electronic platforms that allow receiving full information about financial institutions and organizations; they are also being developed primarily for the financial sector. The introduction of digital technologies can lead to the reduction of headcount of financial institutions.

Digitalization and online publishing of documents related to various tenders and purchases may contribute to the reduction of risks and corruption.

The chapter is devoted to the problem of creating effective tools for attracting extra-budgetary sources and increasing the interest of contemporary Russian enterprises in implementing projects to repair past (accumulated) environmental damage.

The objective of the research is the regions of the Russian Federation (constituent entities of the Russian Federation) and the mechanisms for financing the projects in the field of accumulated damage repair being implemented at the state level. This is possible by financing the project with the participation of the company involved in the accumulated damage in the regions.

The chapter deals with the investigation of the basic concepts of the problems of accumulated damage and the identification of the main problems and the contradictions in attracting financing for the implementation of damage repair projects in the Russian law enforcement field. The analysis of indicators characterizing the dynamics of financing of such projects in the Russian regions and the methodology of selecting priority objects of accumulated damage for their financing at the federal level is also examined.

The research resulted in the authors’ conclusion that the problem of attracting extra-budgetary sources to repair accumulated damage is connected not only with the contradictions in the Russian environmental legislation, but also with the insufficient development of such institutions as public-private and municipal-private partnerships. The chapter contains proposals for the development of results-based tools using the mechanism of public-private partnership to repair the accumulated damage.

This chapter addresses issues within the marketing orientation business in Russia and identifies the demand for marketing models to increase consumer orientation. The chapter reveals the approaches used to organize effective marketing models including national business-specific features.

The authors show the importance of the marketing frameworks in emerging markets. A number of conclusions have been drawn on the most popular marketing tools.

The digital economy provides companies with financial stability and highly developed technological tools to run businesses based on their operations’ transparency. Business stability is formed due to the introduction of a competence-based management system in financial organizations in the Russian corporate sector.

In terms of the digital economy as financial and technological companies, we consider large banks and other financial organizations to develop risk-oriented technologies for managing financial stability based on digitization.

The main aim of this chapter is to describe the features, the factors, and the conditions for the competence-based management development system. It highlights the role of the system for the banks and the financial technologies used by companies for sustainable development.

Stochastic models are seldom used when we analyze the stability and the efficiency of enterprise cost systems. Despite of numerous restrictions, along with the complexity of mathematic formalization, this approach would encourage more rational use of resources under conditions of extreme change in external and internal business environments. Different methods of Maximum Likelihood Estimations (MLE) have been introduced to weaken these parametric drawbacks.

However, the high computational complexity makes its use difficult. This work prevailingly demonstrates the use of coenosis theory to design and analyze cost systems of industrial enterprises, including the use of numerically reliable statistical computations.

This approach can also be observed as a delicate parametric adjustment of economic coenosis structures ensuring stability and sustainability. The chapter provides the example of the mentioned methodology within the frame of an ordinary industrial enterprise.

This chapter defines the prospects of treasury technologies considering the current financial environment in Russia. The purpose of this chapter is to justify the promising treasury technologies, which improve the quality of budget flows’ management. The authors highlight the mission, role, and values of treasury institute. The evaluation of its functional activity and efficiency as well as the world experience in the development of the institution is provided. Comparative analysis of treasury technology for the implementation of foreign budgets with domestic practice is provided. The need for development of treasury technologies providing the liquidity of “single treasury account” is justified. This chapter suggests expanding the positive experience of the Federal Treasury using treasury technologies to ensure the efficient use of budgetary funds on both, regional and local levels.

The authors investigate the essence of individual entrepreneurship activities’ strategy; they provide characteristics of survival, growth, and product strategies; they also prove the reasons for overwhelming use of survival strategy compared to growth strategy to ensure individual entrepreneurship activities. The importance of forming a proper product strategy to survive in the severe competition is shown. The authors suggest estimating the compliance of the chosen strategy with the potential and opportunities of an entrepreneur and assessing risks built in the strategy. The authors also suggest monitoring the growth goals and controlling their compliance with the chosen strategy.

This chapter is devoted to the problems of an optimal and economically grounded approach to tax revenue distribution among the citizens of the Russian Federation. The large territory of Russia and the inhomogeneity of the tax space make this problem more complex. The objective of this research is to determine a fiscal mechanism functioning in the state taxation system. The authors look into the methodological issues of the criteria estimates of the budget components. Having done this research, the authors grounded the augmentation of the new scientific knowledge for the fiscal policy formation aimed at improving the country’s fiscal tools.

In the post-industrial information society, the role of mass communication, public information, information space, social and political discourse, as well as the Internet as a new communication environment becomes exceptional. According to the widespread view, the social system and history as a whole change not only the development of material production, but also the improvement of information resources. Information technologies are now widely used both in the activities of commercial organizations and public authorities. In this chapter, the authors discuss the key aspects of economic interaction of the world information economy and the features of the development of Russian society in this process.

With this chapter, the authors reveal the content of the concept of economic capital, explore approaches to its evaluation, assess the implementation of the concept of economic capital in the national banking system, and identify problems and possible directions for development and convergence of the Russian approach with international requirements. As a result, the need to apply the model of economic capital in assessing bank capital is substantiated. A concept (from Latin “conception” – understanding a system) is a specific way of understanding (interpreting) an object, phenomenon, or process; that is, the main point of view on the subject and the guiding idea for its systematic coverage. This term is also used to refer to a leading idea and a constructive principle in scientific activity.

Initially, since 1988, under prudential supervision – a direct, quantitative-oriented approach, there existed a concept of regulatory capital, reflected in the document “International Convergence of Measurement Methods and Capital Standards” (Basel I). Regulatory capital was calculated to meet regulatory oversight standards. It was intended to cover unforeseen losses and reserves already identified; thereafter, expected losses were created.

The concept of regulatory capital proceeds from the premise that if capital must cover unexpected losses, it should be borne in mind that a surprise approximates uncertainty. Consequently, the theoretical possibility of occurrence of certain events is excluded and, hence, the methodical and practical ground of the concept of economic capital disappears, which is based on the assessment of default probability and the magnitude of its negative consequences for creditors.

The change in trends in banking regulation (the actions of supervisory authorities in matters of capital adequacy acquired a risk-oriented nature that takes into account the risks assumed by each bank and the quality of their management) led to the emergence of the concept of economic capital in 2004, which is reflected in the document “International Convergence of Capital Measurement and Standards of Capital: New Approaches” (Basel II).

According to this concept, commercial banks must have sufficient capital to cover not only credit and market, but also the operational risks. Thus, economic capital takes into account all the risky circumstances that a banking institution may encounter. The need to apply the method of economic capital in assessing the capital of a bank is justified and significant.

One of the major sources of information for investors and other stakeholders on success in doing business is corporate reporting presented by the companies themselves. Such a reporting significantly facilitates a dialogue between western stakeholders and companies which plan to enter world markets. It enables increasing not only the value of the business a company runs, but also the sales volume as well. A corporate report reveals information on the priorities and values of the company in the sphere of sustainable development and provides data on the results of its impact on the economic, social, and ecological sphere. A company publishing such a report can claim to be ready to develop a dialogue with society and aims toward accommodating stakeholders’ interests (of a state, clients, employees, shareholders, and investors) in the framework of social partnership.

The author examines various scientific projections of Marx’s central concept of labor alienation (ontological, epistemological, praxeological, and perceptual). A comparative analysis of the essential characteristics of the category of “alienation” by Karl Marx is provided, which allows one to systematize new features and ways of realizing the alienation phenomenon. This phenomenon is analyzed from the perspective of the modern context of reality, which is distinct from new forms of social and economic transformations and the modernization of productive forces, and considers different spheres and levels of interaction between economic actors.