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ISSN: 2344 - 102X

ISSN-L: 2344 - 102X


Article from Volume 11, Number 3, Year 2023

Author(s): Irina Golochalova, Maria Cojocaru
DOI: 10.4316/EJAFB.2023.1131
Abstract: The research aims to develop a conceptualized approach to presenting information about the ESG-activities of businesses in financial reporting, considering the imperative of transitioning to a socio-economic development model. This research is conducted based on general scientific and specific methods, including comparative analysis, abstraction, and modeling. During the research process, the following steps were taken: analyzed the current trend in Moldova's reporting system concerning the disclosure of information related to business ESG-behavior; identified that the conceptual framework for an innovative approach to financial reporting is based on bridging financial reporting theory with the concept of social responsibility; established a criterion for transforming vague social responsibility into business ESG-obligations and their recognition as part of accounting entities; compared different ways of influencing the impact of a business's ESG-contribution on its capital size and overall cost; developed a 3-stage algorithm for presenting information on a business's ESG-performance in its reporting. The research conclusions include the following: The qualification of Moldova's economy as developing and the state policy of stimulating business as taxpayers are crucial factors that have determined the trend of the national reporting system regarding the disclosure of information on business ESG-contributions to achieve sustainable development goals. The recognition of the outcomes of ESG-behavior of socially responsible businesses as components of accounting entities is contingent upon the authority vested in stakeholders concerning the business's associated ownership. The method of influencing the value of a business through ESG-obligations depends on its recognition as part of the financial reporting elements.
Keywords: Socio-economic Model Of Reporting; Information Usefulness; Socially Responsible Business; Accounting Methodology; ESG-indicators.
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