Version 1
: Received: 18 November 2023 / Approved: 20 November 2023 / Online: 21 November 2023 (07:16:08 CET)
How to cite:
Klimek, D.; Jędrych, E. Descriptive Method for Sustainable Corporate Capital Management. Preprints2023, 2023111270. https://doi.org/10.20944/preprints202311.1270.v1
Klimek, D.; Jędrych, E. Descriptive Method for Sustainable Corporate Capital Management. Preprints 2023, 2023111270. https://doi.org/10.20944/preprints202311.1270.v1
Klimek, D.; Jędrych, E. Descriptive Method for Sustainable Corporate Capital Management. Preprints2023, 2023111270. https://doi.org/10.20944/preprints202311.1270.v1
APA Style
Klimek, D., & Jędrych, E. (2023). Descriptive Method for Sustainable Corporate Capital Management. Preprints. https://doi.org/10.20944/preprints202311.1270.v1
Chicago/Turabian Style
Klimek, D. and Elżbieta Jędrych. 2023 "Descriptive Method for Sustainable Corporate Capital Management" Preprints. https://doi.org/10.20944/preprints202311.1270.v1
Abstract
This article presents a novel sustainable business management technique, emphasizing description and estimation over the outdated profit metric. Due to the intricacies and challenges of implementing the 2019 capital management method based on capital valuation (implemented in 2020–2022), a simpler approach became essential. While it is plausible for organizations to implement capital management based on their valuation, undertaking it with no outside help presents a challenge.
The new descriptive method is fundamentally distinct in that detailed monetary valuations of capitals are omitted in favor of description and estimation. This paper establishes the groundwork for applying the new approach in several stages and introduces three new management indicators—the overall accomplishment of management goals index (evaluating management efficacy), the capital level index, and the adjustment (compliance) index—replacing the profit metric. Noteworthy advantages include separating the assessment of management outcomes from the organization's condition, including human and social capital into efficiency evaluations, and removing the profit indicator for management purposes, which prevents resource waste and enhances company efficiency and effectiveness.
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
