Economic Analysis: Theory and Practice

The purpose of internal control of corporate sustainability

Vol. 17, Iss. 7, JULY 2018

Received: 11 May 2018

Received in revised form: 21 May 2018

Accepted: 1 June 2018

Available online: 27 July 2018


JEL Classification: D21, D22, L20, L53, M14

Pages: 1211–1226

Endovitskii D.A. Voronezh State University, Voronezh, Russian Federation

ORCID id: not available

Pankratova M.V. Atos Russia, Voronezh, Russian Federation

ORCID id: not available

Importance Today, the idea of corporate sustainability has been recognized as an effective tool for building corporations into the process of sustainable social development. This concept assumes the need for corporations to set and achieve not only business goals, but also social and environmental ones.
Objectives Our aim is to clarify the generally accepted insights in the purpose of internal control of corporations so that it reflects the essence of the business philosophy of corporate sustainability and the stakeholder theory.
Methods The methodological basis of the study rests on the tenets of the theory of sustainable social development, the stakeholder theory, the Henri Fayol's administrative theory. The presented findings were obtained on the basis of analysis, synthesis and modeling.
Results We offer a system of strategic goals of a sustainable commercial corporation, formulate the objectives of internal control over corporate sustainability.
Conclusions The offered hierarchical presentation of strategic objectives of a sustainable commercial corporation is based on the signs of their immanence and significance for stakeholders. It gives grounds for deciding on the depth of disclosure of objectives in general purpose statements, and for formulating the purpose of internal control. The proposed goal of internal control of corporate sustainability draws on the synthesis of the Stakeholder Theory by Edward Freeman, the universal model of internal control established by the Committee of Sponsoring Organizations of the Treadway Commission, and the concept of corporate sustainability. If adopted, it will facilitate efficient and harmonized application of these concepts in business practice.

Keywords: internal control, corporate sustainability, stakeholder, corporate objective, corporate governance


  1. Fayol H. Obshchee i promyshlennoe upravlenie [Administration Industrielle et Général]. Moscow, Central Institute of Labor Publ., 1923, 122 p.
  2. Wheeler D., Colbert B., Freeman R.E. Focusing on Value: Reconciling Corporate Social Responsibility, Sustainability and a Stakeholder Approach in a Network World. Journal of General Management, 2003, vol. 28, no. 3, pp. 1–28. URL: Link
  3. Toffler A. The Third Wave. New York, William Morrow and Company, Inc., 1980, 544 p.
  4. Elkington J. Cannibals with Forks: The Triple Bottom Line of 21st Century Business. New Society Publishers, 1998, 407 p.
  5. Epstein M.J., Roy M.-J. Sustainability in Action: Identifying and Measuring the Key Performance Drivers. Long Range Planning, 2001, vol. 34, iss. 5, pp. 585–604. URL: Link00084-X
  6. Dyllick T., Hockerts K. Beyond the Business Case for Corporate Sustainability. Business Strategy and the Environment, 2002, vol. 11, iss. 2, pp. 130–141. URL: Link
  7. Brockett A., Rezaee Z. Corporate Sustainability: Integrating Performance and Reporting. John Wiley & Sons, 2012, 336 p.
  8. Van Marrewijk M., Werre M. Multiple Levels of Corporate Sustainability. Journal of Business Ethics, 2002, vol. 44, iss. 2/3, pp. 107–119.
  9. Christofi A., Christofi P., Sisaye S. Corporate Sustainability: Historical Development and Reporting Practices. Management Research Review, 2012, vol. 35, iss. 2, pp. 157–172. URL: Link
  10. Barilenko V.I., Efimova O.V., Nikiforova E.V. et al. Informatsionno-analiticheskoe obespechenie ustoichivogo razvitiya ekonomicheskikh sub"ektov: monografiya [Information and analytical support to sustainable development of economic entities: a monograph]. Moscow, Rusains Publ., 2015, 160 p.
  11. Sheremet A.D. [A complex analysis of sustainable development indicators of an enterprise]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2014, no. 45, pp. 2–9. URL: Link (In Russ.)
  12. Efimova O.V. [Analysis of sustainable development of the company: Stakeholder approach]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2013, no. 45, pp. 41–51. URL: Link (In Russ.)
  13. Nikiforova E.V. [Formation and Disclosure the Information on the Company’s Sustainable Development]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2016, vol. 10, no. 2, pp. 113–123. (In Russ.)
  14. Lyubushin N.P., Babicheva N.E., Usachev D.G., Shustova M.N. [Genesis of the concept of sustainable development of economic systems of various hierarchical levels]. Regional'naya ekonomika: teoriya i praktika = Regional Economics: Theory and Practice, 2015, no. 48, pp. 2–12. URL: Link (In Russ.)
  15. Korchagina E.V. [Analysis of contemporary approaches to evaluation of sustainable development on the level of companies]. Problemy sovremennoi ekonomiki = Problems of Modern Economics, 2008, no. 4, pp. 169–173. (In Russ.)
  16. Shirobokov V.G., Altukhova Yu.V. [Developing the accounting and analytical support to management of economic systems' sustainable development based on international experience]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2010, no. 12, pp. 41–55. URL: Link (In Russ.)
  17. Belousov K.Yu. [Concepts of sustainable development, corporate sustainability and corporate social responsibility: Major interpretations and mutual relations]. Problemy sovremennoi ekonomiki = Problems of Modern Economics, 2013, no. 2, pp. 51–54. (In Russ.)
  18. Belousov K.Yu. [Contemporary stage of evolution of the sustainable development concept and formation of the corporate sustainability paradigm]. Problemy sovremennoi ekonomiki = Problems of Modern Economics, 2013, no. 1, pp. 47–50. (In Russ.)
  19. Endovitskii D.A., Panina I.V., Pankratova M.V. [Corporate sustainability as a response to civilizational challenges: An analysis of the content]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, iss. 6, pp. 1043–1060. URL: Link (In Russ.)

View all articles of issue


ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 17, Iss. 9
September 2018