A NEW CONCEPTUAL FRAMEWORK FOR ASSESSING CORPORATE FINANCIAL PERFORMANCE. A SUSTAINABLE APPROACH

Abstract

This study sets out to establish a new definition for the concept of corporate financial performance, mostly associated with the concept of corporate economic growth, highlighting the prevalence of the types of capital such as those specific to natural, human and social. These types of capital comprise resources such as: renewable and non-renewable natural resources (forests, oil deposits), the individual’s health, well-being and knowledge, respectively social relationships based on mutual trust. The method of definition used comprises the sufficiency predicates and implies the development and transformation of four such predicates. Lastly, mathematic relationships are proposed in order to better evaluate the company’s conceptual corporate financial performance, with regard to its consumption of resources specific to those of natural, human and social capital. Nevertheless, the mathematic models imply the existence of some so-called artificial realities, which represent conditions that are not fully reflected in the actual socioeconomic environment.

Keywords

• corporate financial performance, sustainable approach, sufficiency predicates, mathematic model