Lyudmyla Alekseyenko
Doctor of science in economics, Professor,
Ivano-Frankivsk Research and Development Institute of Management
of theWestern Ukrainian National University
Oksana Tulai
Doctor of science in economics, Professor,
West Ukrainian National University
Liudmyla Artemenko
PhD (Economics), Docent,
Ternopil Ivan Puluj National Technical University

FINANCIAL, SOCIAL, AND ENVIRONMENTAL DIMENSIONS
OF THE STABILITY OF THE DEVELOPMENT OF THE CORPORATE SECTOR IN THE CONTEXT OF GLOBAL DIGITAL TRANSFORMATION

Ensuring stable financial, social, and environmental development of the state requires the interaction of business structures, local self-government bodies, and society, taking into account the trends of military aggression. M. Casey admits that the war split the international monetary system and led to political tension [1, p. 24]; J. Charles I. investigates the impact of military aggression on the economic growth of countries and the corporate sector [2, pp. 3489-3527].
In the conditions of war and geopolitical instability, the state, the corporate sector, and citizens should direct their efforts to achieve the common goals of stable development. International donors, in particular the European Union, will play an important role in the recovery of Ukraine. In this context, Oleksandr Melnychenko, Tetiana Osadcha, Anatoliy Kovalyov, and Valerii Matskul recognize that an accurate forecast of the volume of interstate trade allows for short-term and long-term planning [3, pp. 131-149].
A. Hrytsenko admits that the post-war reconstruction of Ukraine's economy will take place under fundamentally new starting conditions and opens up space for using the strategy of nationally rooted development [4, pp. 48-49]. M. Zveryakov states that the creation of a post-war model of economic development of Ukraine cannot fail to take into account, on the one hand, its history, traditions, conditions of socio-economic development during the years of independence, its place in the world economic system, and on the other hand, the experience of successful reforms other countries [5, p. 20]. V. Geets actualizes the change in the social environment, where the problems of economic and physical security have become paramount [6, p. 4]. A. Krysovaty analyzed the strengths and weaknesses of the stability of the economy and finances of Ukraine to external challenges and internal threats, concluding that the war confirms the high relevance of the globalization aspects of international aid on the way to the European future [7, pp. 27-28].
In the European Union, the activities of the corporate sector are regulated by the legislation, norms, and standards of the respective states. In general, European business structures consider the state as an institution that must ensure the implementation of acceptable rules of social behavior: the legal regulation of mandatory health insurance, pension regulation, and environmental protection activities of enterprises. Unlike the American model of social responsibility, which defines the goal of profitability and responsibility to shareholders, the European model also includes responsibility to company employees and local self-government bodies. At the same time, in economically developed countries, the social responsibility of business structures is a component of competition.
Global digital transformation contributes to the realization of national interests, the improvement of financial management, and the development of financial technologies in the corporate sector of the economy. In the current extremely difficult conditions of a full-scale war, as part of the renewal of the strategy of the financial sector, the Ministry of Finance of Ukraine, the National Bank of Ukraine, together with IMF experts, are gradually developing the principles of assessing the quality of assets and conducting stress tests for business entities and financial institutions. The IMF's monitoring program for Ukraine provides for a set of measures to curb emission financing of the budget in the following years; provides confidence to partners and determines optimal conditions for ensuring sufficient rhythm of financial income in conditions of significant needs in the balance of payments and the state budget.
The trend in the development of financial relations is global digital transformation. Informatization (lat. informatio – explanation, exposition) is one of the important directions of digital transformation of the financial, social, and environmental dimensions of responsibility of the corporate sector, which promotes the use of reliable, comprehensive, and timely knowledge. Informatization makes it possible to make financial relations more standardized and in line with international standards.
In the conditions of military aggression, the finances of the corporate sector of the economy must take into account the postulates of the monitoring program based on the framework macroeconomic parameters agreed with the IMF [8]. It outlines the priorities in maintaining macroeconomic and financial stability, the implementation of measures aimed at strengthening the mobilization of state budget revenues, revitalizing the domestic debt market, strengthening the financial sector, and increasing the transparency and efficiency of management in the sector of state-owned enterprises. It should be noted that the program has a four-month implementation period and does not directly provide financial assistance, but it is a necessary prerequisite for the transition to the new long-term program of expanded financing of the IMF.
Ukraine, being in a state of war, has unprecedented support from the countries of the democratic world. The implementers of the project "Economic Hub: Effective Public Finance Management Policy and Growth Vision" (UK Aid) recognize that the rapid growth of Ukraine's economy requires financial incentives, in particular international donor funds and grants. The EBRD is the largest institutional investor and supports the "Architecture of Reforms in Ukraine" program, therefore it is interested in becoming one of the centers of the post-war reconstruction of the corporate sector. In 2022, with the participation of the EBRD, donor funds provided by countries were accumulated to finance priority areas in Ukraine (Fig. 1).
These donor funds provided by countries to support Ukraine were distributed according to the following priority areas: agriculture and food security - 23.2 million euros, political reform (15.6 million euros), energy (693.1 million euros), private sector (35.2 million euros), infrastructure (116.1 million euros), other areas (348.4 million euros) [9].

Fig. 1. Donor funds provided by countries to finance priority areas in Ukraine in 2022 [9]

Special attention should be paid to the improvement of the system of economic relations regarding the accumulation of financial resources at the expense of budget allocations, credit resources, investment resources of households, and funds of international financial aid with the aim of their targeted use for the development of the labor market. It is important to monitor changes in the sex-age structure of the population, the parameters of population reproduction, and the specific weight of age groups of the population in certain regions of Ukraine, demographic load indicators that take into account the number of people before and after working age, the dynamics of the number and composition of the economically active and economically inactive population, the structure of economically active population by level of education. We share the point of view that the threatening demographic situation in the country requires appropriate assessments of stability and, first of all, determination of boundary criteria and conducting practical assessments [10, p. 13]. In this context, it is important to take into account the increase in emigration, primarily of experienced qualified specialists and young people. Therefore, it is necessary to assess the resilience of regions and communities to these threats, identify weak points, develop and effectively implement a set of measures aimed at increasing the resilience and, accordingly, the security of regions and territorial communities.
Attracting additional investments in the corporate sector requires the selection and development of joint projects taking into account the peculiarities of technological development and modern export industries. Financial analysts of the Center for Geoeconomics of the Atlantic Council admit that when working with projects that ensure confidentiality (use specialized cryptographic methods), there is a decrease in transparency for regulatory authorities [11, p. 31]. It is known that regulatory bodies need a large amount of information to detect suspicious transactions, which allows them to detect cases of illegal financial activities, in particular, the use of international donor funds and grants.
The modern corporate sector in the conditions of global financial risks should implement measures to prevent fraudulent schemes with stochastic profits during the implementation of recovery projects. Kapon Sam in the article "Dynamic Amnesty Programs" recognizes that regulators face agents who engage in crimes with stochastic profits [12, pp. 4041-75]. Therefore, an important role is played by agents of verification of operations of financial and non-financial institutions, who must guarantee the security of keeping registers and impartiality in conducting inspections. Also, the use of distributed ledger technology can be implemented by verification agents controlled by central banks.
The financial responsibility of corporations requires the systematization of the necessary information, making timely management decisions, and bringing them to the executors, control, and monitoring of the implementation of management decisions. The base for informatization is receiving, fixing, storing, and transforming information. In the financial sphere, individuals and legal entities must have access to useful and affordable financial products and services that meet their needs, such as transactions, payments, savings, credit resources, and insurance - the provision of which is responsible and sustainable.
In the new realities, the participants of the corporate sector implement financial initiatives to resolve problematic issues regarding the settlement of overdue debt; improve the principles of ethical behavior of creditors (collectors); support our defenders (it is forbidden to bother defenders and their families about repayment of overdue debts); solving issues of financial assistance to citizens belonging to the protected category. Also, corporations with financial institutions are reviewing their approaches to the settlement of overdue debts about persons who are in territories temporarily not controlled by the Ukrainian authorities, or near areas of active hostilities.
The Ukrainian corporate sector needs the development of decentralized finance, which in the world economy is understood as a set of alternative financial markets, products, and systems that use crypto-assets and software, known as smart contacts ("smart contracts"), developed using distributed ledger technology or similar technologies [13, pp. 36-37]. The components of the financial information infrastructure are communication equipment, databases and data banks, information technologies, a system of information and analytical centers, and technical means of informatization. In the conditions of global digital transformation, the development of decentralized finance requires more reliable security guarantees.
In the conditions of global digital transformation, the latest tools are being developed and used, which require special regulation. Financial analysts recognize that it is worth preventing the application of outdated models of regulation of the current centralized financial system to decentralized crypto projects that function differently [1, pp. 24-26]. Decentralized finance comes with risks. According to the estimates of the crypto-security company Immunefi, in the second quarter of 2022, losses due to violations of smart contracts and hacker attacks amounted to 670 million dollars [1, p. 25]. In addition, in the financial dimension, the centralized services of Celsius, Voyager Digital, and Three Arrows Capital, which also cooperate with the corporate sector, became the biggest sources of the chain crisis.
The financial responsibility of the corporate sector is increasing, taking into account the introduction of European Union legislation, in particular Directive (EU) 2015/2366 and Directive 2009/110/EU, which creates the basis for the development of the Ukrainian payment market and the legal integration of the payment system of Ukraine with the payment system of the European Union. In the corporate sector, the implementation of cashless transactions is becoming more active, so special attention is currently being paid to both the responsibility of corporations and the protection of the rights of consumers of payment services and the approximation of the relevant regulation to EU standards. Additional requirements for contracts between the provider of payment services and the consumer are important, which will contribute to ensuring transparency of the cost and conditions for the consumer of such payment services through the information hub for consumers.
In 2022, the Office for the Protection of Rights processed more than 19,000 written and almost 40,000 oral appeals from consumers regarding problems and shortcomings in the work of financial institutions in the new conditions [14]. Note that the structure of consumer appeals has changed, while earlier appeals related to the work of non-bank financial institutions predominated, during the war most of the appeals concerned the work of banks. This is because banks provide basic financial services related to meeting the primary needs of the state, corporations, and consumers.
It is advisable to consider the social dimensions of the responsibility of the corporate sector taking into account the priorities of the implementation of the social state in the global economy and the availability of developed structures of civil society (free associations, social institutions, social movements) for the expansion of goals ranking, realization of rights and freedom of citizens. At the state level, the Ministry of Social Policy of Ukraine is working on the development of the system of social services and increasing the effectiveness of the interaction between the state and the providers of these services [15]. We share the point of view of the leading economist scientists of the State Institution "Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine" that ensuring social quality and defining on this basis the general principles of the post-war policy of ensuring the social quality of life in Ukraine should take into account new challenges in the spheres of social development and employment, created as a result social and humanitarian shocks of the war [16, p. 27].
Most domestic companies are socially responsible and fulfill their social obligations. This is due to the implementation of the economic policy regarding partnership with business structures, stimulation, and support by the state of social responsibility of business. 
Social management models that are effective in the modern corporate sector, in particular, related to the introduction of the latest technologies, require the effective cooperation of state regulators, managers, and personnel. In the context of the development and implementation of the post-war recovery policy, it is advisable, first of all, to coordinate internal (corporate) and external (state, municipal) social projects, to encourage socially responsible companies through access to state loans and benefits. Secondly, the implementation of social projects requires the implementation of an effective tax policy, since an excessive tax burden reduces income and hinders the social activity of business.
Social policy is the activity of state and public institutions, social groups, and objects of social policy, aimed at the realization of social human needs [17, pp. 459–478]. In the conditions of military aggression, the development of social policy must take into account the principle of social justice, observance of civil rights, and freedom of citizens. In 2023, the main mission of social policy is to create conditions in Ukraine to ensure the well-being and dignified life of a person in a barrier-free society through accessible and understandable services, access to high-quality social services, an effective system of social support, integration of people with disabilities into active social life, raising children in families, social and pension insurance, as well as digitalization of services. The social responsibility of business should be replaced by the authorities transferring a part of social costs to entrepreneurship.
In the conditions of global digital transformation and free access to private databases and social services, the main duty of the state should be to guarantee the legislative, social, and economic well-being of society. Therefore, social policy should be based on mutual responsibility and mutual obligations of the state, citizens, and the corporate sector of the economy. In particular, in Ukraine, the development and implementation of the All-Ukrainian mental health program is coordinated by the Ministry of Health of Ukraine, supported by the World Health Organization (non-governmental organization "Bezbariernost"), the platform for development and decision-making is the Interdepartmental Coordination council under the Cabinet of Ministers of Ukraine, and the communication campaign is implemented with the support of the United States Agency for International Development (USAID) [18].
In the conditions of martial law, the responsibility of the corporate sector should be appropriate to the state of economic development, to contribute to the stabilization of production, and to ensure the minimum necessary standards of living of the participants in hostilities. The Ministry of Social Policy of Ukraine recognizes that the social support of defenders should begin in the Territorial Centers of Recruitment and Social Support and end with professional integration after their demobilization. In this context, special attention should be paid to the launch of an important pilot project on the creation of patronage services in military units [19]. This will help civilians adapt to the ranks of the Armed Forces of Ukraine, as well as the provision of social services to military family members.
One of the important directions of the responsible policy of corporations is the comprehensive protection of disabled persons since the attitude towards citizens with limited opportunities is a characteristic sign of both the civilized state and its demo abbreviations. Therefore, the integration of people with disabilities into active social life must be ensured in compliance with the guarantees of European standards of equality. This requires prompt provision of auxiliary means of rehabilitation, as well as support in employment or adaptation to professional activity. The Ministry of Social Policy of Ukraine is implementing the experience of Israel and building sustainability centers in our country [19]. This idea consists of accompanying volunteer communities on the ground with the involvement of managers, social workers, and psychologists.
The environmental dimension of the responsibility of the corporate sector should adapt this responsibility to the political context and priorities of business partners. Paragraph 8 of the Peace Formula of the President of Ukraine Volodymyr Zelenskyi is our platform for working with partners to overcome the environmental consequences of hostilities; provides for the cessation of ecocide and the return of reparations to Ukraine.
The hostilities in Ukraine affect the climate system of the planet. In Ukraine, the fight against environmental pollution intensified, although the Ukrainian industry works at only 25%. Fires, shelling and the offensive of Russian equipment led to the formation of additional emissions of about 120 million tons of carbon dioxide [20]. The area of fires with the beginning of the Great War increased from 35,600 ha to 495,100 ha; this is more than the average annual area of all fires in the entire EU in the period from 2006 to 2021 by 460,000 hectares. Total emissions from fuel combustion during the war are estimated at 18.8 million tons of CO2; the detonation of munitions caused an additional 2 million tons of emissions during the year of the war.
The economic community faces the following challenges: digital transformation, a "green" economy, attractive investment climate. This requires the re-profiling of business activity, taking into account the need for environmentalization of production processes and the obligation of social responsibility for the introduction of new organizational forms, including the improvement of the organizational and territorial structure to guarantee the environmental safety of production.
Continuous improvement of the economic and environmental efficiency of the corporate sector requires the adaptability of terminology, principles, and approaches, bringing them into line with the EU Framework Directive (Fig. 2).

Fig. 2. Priority tasks of the post-war "green" recovery of the corporate sector of the economy

In Ukraine, measures are being taken to update the environmental protection policy. Thus, from October 1, 2023, amendments to the Law of Ukraine "On Atmospheric Air Protection", which were introduced by the Law "On the Public Health System", will enter into force [21, 22]. For their implementation, the following was adopted: The procedure for obtaining a permit for emissions; The procedure for submitting and posting a report on compliance with the conditions of the emission permit; The procedure for introducing mandatory automated emission control systems; forms of the public discussion protocol. The Ministry of Environmental Protection and Natural Resources of Ukraine is developing an IT solution that will allow the procedure for obtaining a permit for emissions to be transferred to a digital format [23].
In the conditions of military aggression, the need for environmental security determines the need for the formation of an environmental protection mechanism based on the wide application of economic and ecological tools. The development of the "environment-society-economy" system contributes not only to the preservation of equilibrium and balance in the process of post-war reconstruction but also to the implementation of preventive actions for the reproduction and development of geosystems. We believe that the environmental component of the social responsibility of management should take into account the interaction of international environmental management, science, and politics. To increase resilience to climate change and climate neutrality, it is worth applying sustainable energy models, productive ecosystems, and economic models of a closed cycle and resource efficiency.
In the corporate sector of the global economy, the following measures are being implemented to achieve environmental security by 2050: intensify investments in "green" infrastructure (2023-2028); gradually increase the carbon tax (higher rates starting in 2029); a training program has been developed to assist less qualified workers in the transition to "green" industries (from 2023); the application of a tax credit on earned income to reduce taxes for workers with a lower income in "green" industries is foreseen (from 2029).
In the conditions of the establishment of a green economy, economic relations require the formation of an environmental policy strategy to increase the economic and ecological efficiency of nature use and ensure resource and ecological security. The Ministry of Environmental Protection and Natural Resources of Ukraine forms and implements state policy in the field of environmental protection; ecological and, within the limits of the powers provided by law, radiation, biological and genetic safety; protection, use, and reproduction of aquatic biological resources; in the field of fishing and fishing industry; forestry and hunting farms.
Summarizing, we note that, firstly, the financial dimensions of responsibility of the corporate sector require the systematization of the necessary information, the adoption of timely management decisions, and control and monitoring of financial transactions. To support macroeconomic and financial stability by expanding access to useful and affordable financial products and services, developing non-cash transactions, and improving the conduct of structured checks, during which each component sees only the amount of information necessary for its functioning.
Secondly, risks that arise in the conditions of global digital transformation and the process of centralized data collection in the corporate sector of the economy should be prevented by conducting structured checks, during which each component sees only the amount of information necessary for its functioning. This is aided by cryptographic hashing techniques or the use of cryptographic tools, including zero-disclosure proofs, which attest to personal data without disclosure.
Thirdly, the observance of high social, ecological, and ethical standards in the conditions of global digital transformation will create more favorable conditions for improving the social climate in the economic system and society, will contribute to ensuring the quality of life of the population and military personnel, in particular, the preservation of mental health.
Fourthly, the responsibility of the corporate sector should be guided by the benefits of the state's social policy to achieve interaction between the social system and its socio-political institutions. Therefore, the development of the Unified Information System of the Social Sphere will contribute to ensuring high-quality and quick decision-making regarding the provision of social assistance to low-income families and persons with disabilities from childhood, improving the system of a centralized data bank on disability issues, and will also allow the collection, storage and use of data on providers and recipients of social services.
Fifthly, before the war, Ukraine, together with the civilized world, decided how to reduce emissions and achieve climate neutrality by 2050, and today the state is forced to fight environmental pollution. The ecological dimension of the corporate sector should be oriented towards the achievement of climate goals by the civilized world. This requires the re-profiling of business activity, taking into account the need for environmentalization of production processes and the obligation of social responsibility for the introduction of new organizational forms, including the improvement of the organizational and territorial structure to guarantee the environmental safety of production.

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