CONCEPTUAL PRINCIPLES FOR THE FORMATION OF A POLICY FOR THE SUSTAINABLE DEVELOPMENT OF DOMESTIC BUSINESS

Abstract

INTRODUCTION AND PURPOSE OF THE STUDY. The awareness of the urgent need for real actions to improve the social and economic and environmental challenges of today became the impetus for the formation of a fundamentally new strategy for economic growth. Its foundation was the concept of dynamic equilibriumю which provides for development within the ecological capacity of the natural environment without irreversible impact on nature and without creating threats to the long-term existence of man as a biological species. This approach to economic growth is focused on effectively solving key socio-economic needs without resource depletion, pollution or environmental degradation. It is on these principles that a new concept was formulated – the concept of sustainable development as a new paradigm for the development of humanity in the 21st century.

THE PURPOSE OF THE STUDY is to generalize and substantiate the conceptual principles of forming a policy of sustainable development of domestic business.

RESEARCH METHODS. The study was built using the following scientific and economic methods: grouping and classification method, structural and logical analysis, graphical, tabular method, etc.

PRESENTATION OF THE MAIN MATERIAL. In Ukraine, currently, ecological, socio-economic problems are being exacerbated by military operations and their catastrophic consequences for the life and health of the population, as well as nature (environmental pollution due to emissions of harmful substances into the atmosphere, debris from missiles, drones, mining of agricultural lands, destruction of the Kakhovka HPP, etc.). Thus, according to the KSE Institute and the government of Ukraine, as of November 2024, direct economic losses reached almost 170 billion USD. Among them, losses to energy infrastructure are estimated at 14.6 billion USD, industry – 14.4 billion USD, transport infrastructure – 38.5 billion USD, agro-industrial complex – 10.3 billion USD (KSE Institute, 2025). Environmental losses in monetary terms as a result of military operations at the end of 2023 amounted to 9.8 billion USD (KSE Institute, 2023). According to the Rapid Assessment of Damage and Recovery Needs as of the end of 2024, "the total cost of reconstruction and recovery in Ukraine is 524 billion US dollars (506 billion euros) over the next decade" (World Bank Group, 2025).

Thus, the transition of Ukrainian business to the implementation of the concept of sustainable development is hampered by martial law and military operations on the territory of our state, but remains a necessary and critically important condition for a modern competitive and environmentally friendly way of doing business, and the post-war recovery of the domestic economy will require a deep structural transformation and ecological modernization of the functioning of enterprises (Tokmakova, Kurylovych and Kazakov, 2023, p. 100). Ukrainian business will have to address "new economic and environmental challenges systematically, holistically and radically" (Bocken and van Bogaert, 2016), reorienting its business models to sustainable innovative approaches (Bashir, Alfalih and Pradhan, 2022).

RESULTS. The components of the concept of sustainable development in the context of sustainable business development have been studied. The key role of the latter in ensuring inclusive growth, environmental protection and sustainable development of society has been proven, especially in the context of the transformation of the national economy.

KEYWORDS: pollution; environmental status; martial law; social challenges; sustainable business development; socio-economic problems of humanity; resource provision; reuse; corporate social management.