Assessment of forest enterprises’ performance: Integrating economic security and ecological impact

Abstract

At the stage of the strategic or tactical managerial decisions justification, it is important to choose the right approach, verify proper information sources, develop methods to identify the status of the enterprise. The mentioned prerequisites necessitate the development of methodological tools for the formation of appropriate information and analytical support. The aim of the study is to substantiate the methodology of assessing the ecological and economic security of forestry farms and to test this methodology basing on the data received from state forestry enterprises. The subject of the study is the methodological aspects of developing the methodic for assessing the ecological and economic security of forests, taking into account the peculiarities of their functioning as complex ecological-economic systems. The latter determines the essence of the hypothesis, which requires the use of an integrated indicator for assessing the security of forestry enterprises, taking into account interdependent and interconnected economic and environmental components. Methodic for assessing the ecological and economic security of forest holdings is a sequence of stages that ensure the formation of an information base for the research; selection of indicators; their processing using component, index, normative methods; interpretation of the results of calculations. The authors specify the content of the main terms: Ecological, economic, financial, techno-technological, social security, safety of forest use, reforestation, forest protection activity. The methodic has been tested on the data from forest enterprises in Volyn and Rivne regions of Ukraine. The authors obtained adequate results, which indicate a high and satisfactory level of ecological and economic security of these enterprises in 2017. The strengths and weaknesses of the enterprises and the factors that influenced them were revealed. The methodology for assessing ecological and economic security is a tool for obtaining the necessary information about the status of the enterprise in order to substantiate practical recommendations for the further development of forestry as a coherent and stable system.