Sustainable Enterprise Capital Management

Klimek, Dariusz

doi:10.3390/economies8010012

Cited by 15 publications

(15 citation statements)

References 46 publications

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“…The new approach would introduce principles of sustainable capital management into the management process, leaving profit and the existing accounting system almost exclusively for tax purposes. We explored the concept of sustainable management in past papers, but modified it for the needs of energy companies [46,47].…”

Section: Discussionmentioning

confidence: 99%

“…This theory is important because it shows that business is not just about buildings, machinery, or money. It helps to understand what capitals (resources) make up the company, and at the same time allows to organize the totality of capitals that make up the company and to formulate the principles of sustainable management, in which the goal of a company is a balanced development of capital and not profit [46,47].…”

Section: Introductionmentioning

confidence: 99%

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Principles of Sustainable Management of Energy Companies: The Case of Poland

2021

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In 2016, a law was introduced in Poland that required management bodies of energy companies owned by the state and a municipality to adopt management goals. The remuneration of the board members of these companies depended on the extent to which these goals were implemented. The challenge was that profit became an end in itself. The purpose of this article is to describe the process used to set up strategic goals on the basis of balancing capital within energy companies, which demonstrates a positive impact on the effectiveness of these companies. The solution proposed in this article is an alternative to using profit as the sole measure. The article consists of three parts. The first part is a review of the literature on management goals and how they relate to various economic measures—the main conclusions of this literature review were that, despite many attempts, we were not able to (1) clearly define the purpose of a company and (2) find an indisputable measure of the degree to which such goals were implemented in a firm that would be an alternative to using the outdated profit as a goal. The second part dealt with the results of a study on the formulation of management goals in 2017–2020, which was conducted on more than 150 energy companies. Based on this analysis, it was found that financial goals were gradually replaced by material (investment) goals, but this process was very slow. The final part of the article is our proposal for a new approach to formulating management goals in energy companies, linking them to tools that measure both the efficiency of capital deployment and the introduction of new rules for sustainable capital management in these companies.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Principles of Sustainable Management of Energy Companies: The Case of Poland

2021

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“…In the second stage, in 2019, initial assumptions were made for the concept of sustainable management of capitals in enterprises and, just like in the previous example, there were studies whose aim was to verify whether the concept could be applied in practice. As for the measurement of social capital, the methodology and the results of the studies in one of the enterprises being the subject of study were described in 2019 and published at the beginning of 2020 in Economies [38].…”

Section: Sources and Methodsmentioning

confidence: 99%

“…6 Source: [38]. This ratio informs us about average capital mismatch; it is very sensitive to large deviations of even one of the capitals.…”

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confidence: 99%

A Model for the Sustainable Management of Enterprise Capital

Klimek

Jędrych

2020

Sustainability

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This paper attempts to develop the concept of sustainable management of enterprise capital presented, e.g., in Economies at the beginning of the year 2020. After an introduction and presentation of the theoretical grounds for the construction of the model, the authors attempt at describing its characteristics in a few points, determining the relationship between the objectives of an enterprise and the capitals that constitute the elements of that enterprise. The main assumption in the model is that the management of an enterprise is a constant process of striving to achieve a goal or goals, and balancing the level of the capitals within the enterprise. The point of balance between six capitals of an enterprise entails, at the same time, the maximum effectiveness of this enterprise. The more effective an enterprise, the quicker the managers will reach the point of balance between the capitals, and the longer the managers will maintain the values of the capitals near the balance point. As a measure of effectiveness, the authors propose a coefficient of a mean percentage-rated difference between the capitals, which reflects the mean non-adjustment of the capitals, and the weighed capital differences coefficient, which reflects the effectiveness of an enterprise as a whole. In the second part, the authors prove that, simultaneously, both management based on the presented model, which is based on the effectiveness of achieving objectives, as well as the effectiveness of the capitals of the enterprise, with the use of the new economic ratios as indicated, may be an alternative to globally prevalent revenue as an economic measurement.

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“…-It seems that the biggest problem related not only to research itself but to the practical application of various research results is the well-established and irrefutable preference for profit to be the primary economic indicator, as many economists believe to be the case. Nevertheless, the new theories of the so-called sustainable capital management and the new measures of efficiency that take social capital into consideration in determining their results are still too new and are only in the pilot stage [39][40][41][42].…”

Section: Introductionmentioning

confidence: 99%

Social Capital in Energy Enterprises: Poland’s Case

2022

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Social capital is currently perceived as one of the basic factors of economic development and economic success of enterprises. However, while there is already much research on social capital in enterprises, there has been little such research in the energy industry. The aim of the publication is to fill the gap in this regard. The basic question that the authors try to answer is whether there is a higher level of capital in energy companies compared to other industries, and if so, what the reasons are for this. Apart from answering this question, the authors present their own method of measuring the level of this capital. The first part of the article presents the results of a study on the level of social capital in Polish energy companies, whereas the second part compares the levels of social capital in energy companies and industrial companies in other sectors. According to the study, energy companies generally have higher levels of social capital than companies in other industries. It has been found, however, that individual forms of capital that comprise social capital differ. The most significant differences were observed in relational capital, followed by cognitive capital at a lower value and structural capital at the lowest. The survey also revealed that there is a difference in social capital levels among the researched professional groups: management, administration, and production.

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Sustainable Enterprise Capital Management

Cited by 15 publications

References 46 publications

Principles of Sustainable Management of Energy Companies: The Case of Poland

Principles of Sustainable Management of Energy Companies: The Case of Poland

A Model for the Sustainable Management of Enterprise Capital

Social Capital in Energy Enterprises: Poland’s Case

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